The value of wisdom: Why corporates are hiring people over 60 years of age

It is three years since Anita Prasad retired from her job as a microbiology professor from a leading Mumbai college. She is back to work now, as a teacher at an international school. She works thrice a week, four hours each day. It was not exactly boredom, but anxiety about not having sufficient cash flows that triggered her comeback into the job market. "My salary is less than what I earned working full-time. But it is nonetheless substantial enough to meet all my requirements,” says Prasad.

Prasad’s case seems classic in today’s scenario where retired folks are treading back into jobs to earn an extra buck, given insecurities over finances and the pension-less nature of private jobs. Meanwhile, corporates are trying to gain a competitive edge by pooling in the value that seniors bring to an organisation and its stakeholders. This trend is noticeable worldwide. The Australian government is encouraging people to continue working longer, beyond 65 years, as the country eyes a shortage of millennial workers and an increasing burden of pensions and health care services for an ageing population.

In the USA, 40% individuals above 55 years are either employed or seeking employment of some kind. Corporates like FCCI Advantage Insurance Company boast of having 34% workers in the 50-plus age category. The Encore Fellowship offers opportunities for the 50-plus to work and earn at non-profits.

According to Suchita Dutta, executive director, Indian Staffing Federation, senior people are famed for their work ethic and commitment to get the job done. “Their wisdom helps in creating a valuable opportunity to guide younger colleagues. They also bring knowledge from their earlier work experience and can manage the crisis better.”

Moreover, besides the organisational skills usually associated with baby boomers, there are both monetary and non-monetary benefits that are imbibed by these individuals, says K Manjula, EVP and chief of HR and management services, SBI Life Insurance.

When an individual re-enters the job market post-retirement, they benefit the company in terms of reduced labour costs (as they often work part-time and earn accordingly), while bringing in emotional maturity and the ability to mentor younger employees. SBI Life, says Manjula, engages with baby boomers through the empanelment of retired officials as consultants and through "Life Mitra, our Insurance Advisor programme.”

Companies in education, insurance, financial services, consulting and non-profits largely seek out the baby boomers, say experts, in roles such as "teachers, content developers, trainers, centre managers, counsellors, mentors, accountants and advisors in HR, finance and legal.’’

Gayathri Vasudevan, co-founder and CEO, LabourNet Services India, says one can broadly segregate two types of expertise that baby boomers bring to the table, namely subject matter expertise and general management expertise. “People who are 60-plus are deployed into roles that involve showing guidance and domain expertise. With the emergence of the gig economy and part-time work, people above 60 have an enormous opportunity to seek and get work.”

Manjula says SBI Life encourages retired officials as consultants as their background facilitates coordination and compliance with regulatory requirements across the organisation, potentially leading to substantial savings both in financial terms and man-hours. “Their strategic input is highly valued as they come up with objective analysis regarding administrative issues at critical branch locations through rigorous field studies.”

Around 7% of the total sales force under the Life Mitra programme at SBI Life consists of senior individuals. "As we expand, that number will go up. Additionally, we have a good number of consultants for specific roles based on the requirements of the concerned departments.” LabourNet has over 15 individuals over 60 years and will increase that number. "We will hire more 60+ individuals as trainers, subject matter experts, content developers, counsellors and mentors,” says Vasudevan, adding that an exclusive training is organised to train older employees to enable them to cater to the changing technological advancements. 

Dutta says companies should train baby boomer employees as “this will break down existing communication barriers due to digital transformations, providing better efficiency, innovation and growth.”

BABY BOOMERS

• 40% — Individuals in US above 55 years are either employed or seeking employment
   
• Such people bring in emotional maturity and ability to mentor younger employee