Silver Strategies

Widening the horizon: management of age diversity now and in the future, challenges and solutions

The panel discussion is produced in the Silver Strategies project, funded by the Interreg Central Baltic program. The project is coordinated by the Latvian Chamber of Commerce and Industry, with the Estonian Chamber of Commerce and Industry and Satakunta University of Applied Sciences as partners. In the Silver Strategies project, companies in Finland, Estonia, and Latvia develop best practices to support the continuation of careers for people aged 55+.

The panel featured the following experts:

  • Moderator Anne Kärki, retired, freelance researcher
  • Lauri Inna, mayor of the city of Pori
  • Aino Alppinen, retired, freelance journalist
  • Jussi Bergman, senior advisor in artificial intelligence & entrepreneurship, senior lecturer at Satakunta University of Applied Sciences
  • Atte Rytkönen-Sandberg, legal advisor, Federation of Finnish Enterprises
  • Jouni Vatanen, researcher, Ilmarinen pension insurance company

Recording of the panel discussions: https://www.youtube.com/watch?v=FWmPoIJ2rso

Shared Concern for the Future

The panel discussion brought together experts who highlighted a common challenge faced by companies. To increase employment rates, working hours, and productivity—and to maintain the economic well-being of the welfare state—it is essential to engage the entire workforce, including employees aged 55+. Finding solutions to achieve this is crucial. Companies must effectively manage their employees’ work ability to address these challenges.

Encouragingly, the panel shared positive news: the solutions are not overly complex. Companies have the means to enhance both the length and quality of the careers of employees aged 55+. External support, such as guidance from pension insurance companies, is also available to help them achieve this goal.

The audience participated in a series of YES or NO questions. The results revealed a mixed perspective: many felt there are more challenges than solutions in extending the careers of employees aged 55+, while others believed solutions outnumber the challenges.

Interestingly, technology was not viewed as a major obstacle for ageing employees in remaining competitive in the job market. Instead, most participants emphasized the importance of flexible work arrangements—such as remote work and part-time options—as critical factors in retaining employees aged 55+.

Opinions diverged on the issue of age discrimination in workplaces. While some saw it as a significant problem, others were less certain of its impact.

Lastly, the audience largely dismissed the idea of mandating age diversity quotas to ensure a balanced representation of employees aged 55+, indicating a preference for other approaches to addressing this issue.

Why is it Important to Extend Careers for Employees 55+?

Finland, like several other countries, is facing rapid ageing, declining birth rates, and a shrinking workforce. With more employees aged 55+ remaining in the labour market, addressing their individual needs is crucial. Some may require support, while others may not, emphasizing the need for tailored solutions within companies.

Workforce shortages are already evident, making it essential to retain employees longer. Extending careers helps strengthen public finances by reducing pension costs and utilizing the valuable experience and skills of senior employees. Studies show that older employees often report higher work well-being and, with today’s improved health standards, many are capable of continuing their careers.

From an artificial intelligence (AI) perspective, senior employees excel by leveraging their experience and problem-solving skills to enhance efficiency when working with artificial intelligence. Additionally, their tacit knowledge— information and knowledge that is not written down anywhere—is vital for mentoring younger colleagues and ensuring knowledge transfer.

For many retirees, continued work provides purpose, social engagement, and an opportunity to contribute to society, which has invested in their education and development.

Lengthening careers is also critical for improving workforce productivity, which is vital for Finland’s economy, which is currently trailing behind Latvia and Estonia. Companies must recognize the urgency of engaging all available talent, especially in an increasingly challenging operating environment.

The declining birth rate and ageing of the workforce poses a significant societal threat. As one panellist remarked:

“Now it’s kind of last time last calling, you know, to understand where we are going”

How Can Careers for Employees 55+ Be Extended?

Some companies have successfully hired retirees, enabling them to create a “second career” within the organization.

Experts emphasized the importance of extending careers for employees aged 55+. Many companies collaborate with occupational health services to monitor employee well-being using data and have seen improvements in health and productivity. Investing in mental and physical health support saves costs and helps employees remain active in their roles longer.

It was noted that companies must be financially successful to employ workers, while economic incentives motivate 55+ employees. In Finland, retired individuals face high taxes, which could discourage continued work. Lower taxes and counting post-retirement income as pensionable earnings could strengthen motivation. However, Finland’s regressive tax system already provides benefits, as higher earnings result in lower effective tax rates.

Artificial intelligence (AI) has shown potential to significantly boost productivity—by up to 100% in some cases—particularly for experienced employees. Senior workers, especially in technical fields like programming, can harness their expertise to maximize AI’s benefits. Education and reassurance are key to helping 55+ employees understand they can benefit from these advancements, reducing fears and fostering engagement.

Every company operates under unique circumstances, so solutions must be tailored. Flexible options like part-time or remote work may not suit every business, but training and retraining are universally applicable strategies. Open communication is essential; companies should engage employees in discussions about their ideal work-life arrangements, preferences, and needs. These conversations can guide HR policies and improve workforce engagement.

The Role of Work Ability in Career Continuation

Work ability—encompassing physical and mental health—is a key factor in extending careers. Motivation to work and the ability to meet job demands are equally important.

Employers play a significant role in supporting work ability through training, retraining, and fostering a healthy workplace. However, employees also bear responsibility for maintaining their work ability, skills and competence.

The level of support varies depending on company size. While smaller businesses may have limited resources compared to larger organizations, employees in small companies can still feel valued and supported, regardless for example of how occupational health services are provided.

Artificial intelligence (AI) can enhance work ability by automating repetitive tasks and reducing stress. Building confidence among 55+ employees and ensuring they feel respected by employers

and the job market is crucial. This confidence allows them to navigate their careers without fear of unemployment.

A company’s success depends on fostering a sense of belonging—not just for employees but also for self-employed individuals working with the company. Qualitative factors like inclusion and respect are as important as financial considerations and should be prioritized in management practices and organizational culture.

In many countries, hiring experienced individuals for respected expert roles is more common than in Finland. Developing an age-friendly workplace culture that values expertise across all age groups is essential everywhere.

How Can Age Discrimination Manifest in the Workplace?

Age discrimination can surface in various ways, especially during economic downturns when companies negotiate workforce reductions. It can also appear as subtle attitudes, such as dismissive comments or behaviour toward older colleagues. These actions often reflect unspoken biases against ageing employees.

In Finland, studies have highlighted significant age discrimination in hiring practices. For example, 55+ applicants in technical fields often face biases, and two-thirds of workers in the economic sector report experiencing age discrimination.

Discrimination often stems from stereotypes. Employers may assume younger employees will stay longer, adapt better to teams, or be more energetic and productive. However, research disproves these assumptions, highlighting the need for companies to overcome such prejudices.

Recruitment processes can also perpetuate discrimination. Anonymous recruitment can help mitigate age bias. Companies competing for skilled talent cannot afford to discriminate, as reputational damage from unfair practices spreads quickly.

Age stereotypes, such as the belief that 55+ employees lack digital skills, are unfounded. Many older workers can adapt to new systems, which are often designed to be intuitive.

Ilmarinen’s research revealed that two in 10 employees have experienced or observed age discrimination in the workplace. Furthermore, half of those who retired earlier than desired did so due to negative workplace attitudes. These findings underscore how age discrimination shortens careers and hinders workforce retention.

Changing attitudes toward 55+ employees is critical. Companies must recognize the value of experienced workers and eliminate bias to remain competitive and successful.

Supporting and Engaging Employees Aged 50+: Solutions

Ask, Don’t Assume

  • Engage in meaningful dialogue to understand individual needs and preferences, and tailor support accordingly.

Start Small

  • Taking action, even on a small scale, is more important than waiting for perfect solutions.

Review Policies

  • Ensure recruitment and workplace practices are free from discrimination and avoid hidden biases.

Foster Open Dialogue

  • Create a culture where employees can freely express their thoughts, feelings, and aspirations about their work and workplace.

Involve Employees

  • Include employees in decision-making processes to identify areas for improvement and boost engagement.

Offer Training and artificial intelligence (AI) Support

  • Provide training for senior employees and promote a positive mindset toward new technologies like artificial intelligence (AI).

Adapt to Change

  • Encourage 50+ employees to embrace change, understanding that work practices and the world evolve over time.

Prioritize Well-Being

  • Explore ways to enhance employee well-being and comfort, especially for 55+, based on what is feasible for your company.
  • Successful strategies, such as those from the Silver Strategies project, are essential for improving workplace productivity and ensuring societal economic sustainability.