People are living and working longer and the implications for areas such as health care and government entitlement programs are profound. But what about employers? Is there value to companies if they engage an aging workforce?
Don’t Underestimate the Value of Employee Tenure
Research suggests it has a positive — and sizable — impact on firm performance.
January 24, 2023
MirageC/Getty Images
Summary.
People are living and working longer and the implications for areas such as health care and government entitlement programs are profound. But what about employers? Is there value to companies if they engage an aging workforce? It depends on how you define experience. Employee age has no impact on business performance, whether performance is measured by financial, operational, or customer outcomes. Tenure, however, has a significant positive and sometimes very sizeable impact on financial performance and operational excellence. This suggests that there is no place for ageism at work. It also suggests that gig or temporary workers should not replace tenured staff.