How Will Benefits and the Workplace Reflect Ageing Workers?
11 October 2017
The population is ageing and the average age at our workplaces will continue to rise. Have you considered what you are going to do professionally after you turn 50? Are you going to remain loyal to your current job? What should you start thinking about now? How will the workplace look in the future, for instance in 2050?
Imagine that a son meets his father and grandfather in the same office, while employees over the age of 40 are in the clear majority. The cliché of a "young" and "dynamic" team will gradually disappear from job adverts. Adverts along these lines may even be considered discriminatory. Multi-generational teams will become a reality. What is the best way to prepare for 2050 now, when many of us will be reaching retirement age, and how can you best prepare for old age at your current salary?
We've got a lot of work in front of us before we can retire
The average age of the population in Europe is currently 41.6. At steady birth rates, the United Nations forecast is 47.7 by 2050. The proportion of old people in Europe will increase. According to the Berlin-Institute for Population and Development, the share of people over the age of 65 will increase from 16% to 28% by 2050.
We will live 4 to 5 years longer on average around 2050 than we currently do today. Therefore, the retirement age will begin to approach the age of 70. The younger generation will be unable to finance the huge mass of current pensioners and people over the age of 65 will become motivated by the state to continue working as long as possible, even if only part-time. Today, the situation involving the employment of people over 55 varies. According to the PwC Golden Age index, the highest share of those over 55 who are still working are in Iceland, New Zealand, Israel and Sweden.
When the current generation of Millennials is celebrating their fiftieth birthdays, they will still be considered in the middle of their productive years, as they will have roughly two decades of work still in front of them. It is possible that we will have to re-qualify for a completely different job than the one we have now and respond to the current needs of the job market.
Currently, older candidates are confronted with a kind of youth policy, as HR specialists prefer to fill a position with people under the age of 45. However, in an ageing Europe, fewer and fewer graduates are entering the job market every year because of declining birth rates. The demographics don't lie and companies are going to have to come to terms by changing their policies and adapting working conditions to an ageing workforce. Facilities and offices will have to be more barrier-free and work processes will have to be geared towards sustainability in the spirit of "longer working lives of better quality". Read more in Paylab BLOG How ageing influences income and retirement savings.
Corporate benefits will better reflect an ageing workforce
The labour market will age with the generation of Millennials. There is no need to fear not having work; the work itself may change, the workers will be older and companies will have to invest more into automation, education and convalescence. The following employee benefits will come more and more to the foreground according to the Paylab.com portal:
- Contributions for life jubilees
- Retirement and Life Insurance
- Long Term Disability Insurance
- Added Health Insurance
- Contributions towards holidays and spa treatments
- Above-standard medical care
- Rehabilitation and physiotherapy
- Work-life balance benefits (shortened working hours, working from home, flexible working hours, additional vacation time)
- Bonuses for years of service
- Training in digital skills
- Support for health benefits, prevention and a healthy lifestyle
Paylab is an international salary survey platform that collects information on the incomes and bonuses of employees for more than 500 job positions. Paylab uses a unique methodology for collecting data with a three-phase control and over eight years' experience. Visitors to the Paylab website or partner sites in their country can easily and anonymously complete an online questionnaire on their salary, and compare their income with the national average for that position. The system always uses current data for the last 12 months.
Daniela Beráková, Communication & Content Manager for Paylab.com
Profesia, s.r.o., Pribinova 19, 811 09 Bratislava, Slovakia
Tel.: +421 2 32 20 91 89, Mobile: +421 905 761 264, e-mail: [email protected]