The next workplace trend: the ‘Great Unretirement’

We got used to the Great Resignation, the Great Reawakening, the Great Reshuffle, quiet quitting and quiet hiring. Now there is a new workplace trend: the ‘Great Unretirement’.

“As younger people find new ways to work, a gap in traditional employment needs to be filled and ‘unretirees’ are stepping back into the workforce. Some are returning to work out of necessity, while others simply miss having a job to go to,” says Lyndy van den Barselaar, MD of ManpowerGroup South Africa.

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According to Sanlam’s 42nd Benchmark Survey Report, one in five South African consumers believe they may never be able to retire and 42% say they feel a sense of insecurity or lack of control over their financial future and will simply have to keep working past the expected retirement age.

While many South Africans also constantly struggle with the constant increase in the cost of living, less than a staggering 10% of retirees will be able to maintain their standard of living before retirement.

Global population getting older

Van den Barselaar says the global population is getting older, primarily due to increasing life expectancy and declining birth rates. In 2020, more than 147 million people worldwide were between the ages of 80 and 99, accounting for 1.9% of the global population. In 1950, it was merely 0.05%.

In 2020, the number of people older than 60 outnumbered children younger than 5. Between 2015 and 2050, the proportion of the world’s population over 60 will nearly double from 12% to 22%. Our world has a notably higher percentage of older people than 70 years ago, a trend Van den Barselaar says will continue. 

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One of the perils of retirement is a decrease in social activity rather than an increase. ONS data published in the UK in December 2022 showed 46% of over-50s would return to work for social reasons, while 42% would return to improve their mental health.

Many have also returned from a long-term illness that previously forced them to leave with unfinished business, while others simply desire a return to a more social space after the two-year lockdown-enforced isolation from which many have yet to emerge fully.

Working better for longer

Van den Barselaar says it is not a case of forcing people to work deep into their old age. “Working for longer means that the workplace environment will change and the opportunity to mentor younger workers exists.”

Older workers are skilled and experienced, bringing critical thinking skills and in-depth knowledge that cannot be taught, where the perceived technology gap is more easily overcome. These people require less training, are more reliable and have a stronger work ethic than younger workers.

“They play a crucial role in retaining a business’s knowledge and established networks while fostering younger workers in more nurturing multi-generational teams.”

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The onus, then, is on companies to create an inclusive, fair and meaningful experience for older and younger employees, Van den Barselaar says. “If they manage that, they will not only become more innovative, engaging and profitable over time, but they will also benefit society at large.”

A Deloitte study showed that bringing age diversity into a company’s programmes delivers more age-diverse teams, where all members feel more psychologically safe and innovative than in age-biased teams. Age brings teams a sense of security and wisdom so that companies can use it to their advantage.

Adapt to fly in the Great Unretirement

Organisations must also adapt to this phenomenon by reintegrating skilled older workers into the workplace and attracting more once they see the value. “Aspects like more traditional titles and roles, or those which reflect their seniority as mentors for younger workers, can help them feel valued,” she says.

“Accommodating with flexible work hours or locations can also be a bonus and this includes offering more accessible workstations at home or in the office, with more light, larger fonts and other things that can help accommodate the needs of people of all ages.”

Van den Barselaar says pay equity by job and level rather than tenure is also important. “Tenure is not a useful measure for determining pay scales unless it directly translates into experience and skills that drive value to the company.”

Therefore, if an older worker returns to work in a new role, it should be more than right and indeed, fair, for them to make less money than a younger person. “On the other hand, those returning to their former positions need to be empowered with managerial, supervisory and mentoring roles, which will let them leverage their years of expertise for the team and the company’s benefit.”

However, she says, the opposite is also true, with younger leaders able to reverse-mentor older team members to help integrate them and usher them into a world with very new ways of working.

“Respect for elders is a fundamentally entrenched aspect of South African culture and there is no reason we should not show the same respect for their experience and knowledge in the workplace for better business functioning.”