The new economy is the grey economy

Citation

(2001), "The new economy is the grey economy", Work Study, Vol. 50 No. 1. https://doi.org/10.1108/ws.2001.07950aaf.004

The new economy is the grey economy

The new economy is the grey economyKeywords: Older employees, Employment, Labour market

Publicity is attracted by the young Turks of the dotcom generation, but a recent report (published by the Futures Team at The Industrial Society) suggests that the future of the new economy depends on the over 50s.

"Experience necessary – the business case for wisdom" suggests that emerging evidence from the dotcom sector points to an increasing demand for older workers to help make the transition from start-up to the longer term – from dotcom to dotcompany playing with the big boys.

This demand is creating a class of "new elders" – older folk who are healthy and wealthy and who possess experience and wisdom and who have a strategic knowhow that makes them far more attractive than the young with self-confidence and energy but little else.

Most valuable are the Warhorses – seasoned campaigners with experience of previous economic cycles who aren't scared by economic downturns. Then come the Trusted guides – older workers whose age and experience consumers value and trust over youth and enthusiasm.

Globalisation and the spread of world-wide networks are bringing older people to the fore as established Networkers, particularly for employers with partner companies situated in parts of Asia where respect for age is common and important. This makes it much easier to build and maintain relationships.

This demand for age and experience isn't confined to the dotcom sector. Demographics mean that employers are having to start looking for employees among older workers – there simply isn't the supply of bright, skilled young recruits. Employers are thus turning to the older worker with enthusiasm as social changes make older workers fitter and more adaptable than ever before.

Of course, some labour markets have always tapped into this pool of talent. The law, government and the boardrooms of top companies are obvious examples. As labour markets have tightened, awareness has grown – and now retailers and customer service providers are also looking to the older workers they once ignored to work flexibly and creatively with customers.

Charlotte Thorne, author of the report, says:

The current requirement is for knowledge. Businesses need people who can employ their experience and understanding, their networks and their strategic vision to add value to organisations. What businesses are really after is wisdom and that puts older workers in pole position.

Statistics in the report show the extent of this grey revolution.

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  Over 50s are returning to work faster than the rest of the population as demand for their skill increases – in the past year the employment rate for women aged 50 and over has increased at almost three times the rate for the workforce as a whole.

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  In the USA older Americans make up 10 per cent of the nation's workforce, but 22 per cent of the nation's job growth.

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  In four years between 1996 and 2000, the Australian economy created 360,000 full time jobs – 75 per cent went to workers aged 45 and over.

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  Businesses set up by entrepreneurs in their early 50s are twice as likely to survive as businesses started by people in their early 20s.

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  By 2020, one in four of the workforce will be aged 50 and over.

Of course there are plenty of over-50s out of work. This new demand only applies to the select few with appropriate skills and experience.

The Industrial Society report emphasises that Government policy and action is important. It makes the point that the Government must lead by example – for example, most Government departments still have a compulsory retirement age of 60.

It also calls for flexible concepts of retirement in keeping with the new economy's emphasis on flexible working. This means a move away from formal retirement ages and amending occupational pension rules to make it easier for older employees to work flexibly by taking on part-time work. It also suggests that Income Support rules encourage employers to believe that older workers really aren't up to working and need to be re-examined.

The report concludes that:

We must look to business to set about sweeping away misconceptions about age. The business case for wisdom is compelling, the demographic pressure for change inescapable. Once employers have recognised the value in age, the work of reassessing the meaning of ageing will begin.

The Industrial Society can be found at www.indsoc.co.uk