New ways of working to boost senior talent management

This year I have entered a new decade, moving closer to what is increasingly known as ‘senior talent’, although, to be honest, I don’t feel that the term really applies to me.

I am considered a senior member of my organisation due to my expertise, responsibilities and years of service to the firm, but I do not share the prejudices surrounding this demographic group I am approaching.

In Spain, less than 20% of the population aged over 55 is in work. This is below the OECD average and well below that of countries such as Japan or New Zealand.
Existing policies do not encourage the Spanish population to remain in work after retirement age, nor do they encourage companies to undergo organisational transformation.

And the reality is that the Spanish (and European) population is ageing, with life expectancy now exceeding 79 for men and 85 for women, alongside the lowest birth rates in history, with no capacity to renew the generation as fewer than two children are born per couple, and with the lengthening of the period of study, the reality is that extending working life seems inevitable and even beneficial.

This clashes radically with the policies implemented over recent decades, in which organisations have placed emphasis on gradually rejuvenating their workforces. However, this is no longer sustainable.

There are numerous myths surrounding more experienced talent. And for certain roles, such as the presidency of a country (see the cases of Biden or Trump), it is probably advisable—even healthy—to hand over the reins to a younger person with greater capacity to tackle such a challenging objective. However, we need that active experience, albeit perhaps from a different perspective. The reality, on the contrary, is that numerous studies show clear benefits to retaining the most senior talent in our organisations, such as:

– Improvements in productivity: A study (Carta et al., 2021; Jäger and Heining, 2019; OECD, 2020; Sauvagnat and Schivardi, 2020) analyses the positive impact that generational diversity has on productivity by creating synergies between younger and more experienced professionals. The effect is two-way: both younger people, by accelerating their learning, and older people show better productivity results.

– Increase in GDP: The employment rate for the population aged 65 and over in Spain is 3.3%, compared to 15.5% in the OECD (19.2% in Sweden). Furthermore, Spain’s per capita income would rise by between 3.8% and 5.7% if the employment rate of the population aged 65 and over were to converge with the OECD average (BBVA Research Institute).

– Sustainability of the welfare state: In the absence of far-reaching reforms, public spending on pensions could reach nearly 17% of GDP by mid-century (De la Fuente et al., 2020). The pension system’s contribution deficit in 2021 already accounted for 2.2% of GDP, and forecasts point to a further increase of several percentage points (Devesa and Doménech, 2022).

– Improved cognitive function: scientific studies such as those by Lupton et al., 2009; and Hale et al., 2021, find that extending working life promotes cognitive development, protecting against conditions such as dementia or Alzheimer’s. It has also been observed that delaying retirement can have a positive impact on mortality for professionals who do not face physical or psycho-emotional strain.

The future of work and flexibility for senior talent
And culturally, are we ready to overcome age barriers? Do we want a cultural transformation?
As shown in the graph below, taken from an OECD study, in the 2020 survey on discrimination over the past five years, the main reason respondents felt discriminated against was their age, specifically from the age of 50 onwards.
Furthermore, according to the study carried out by the Santa Lucía Institute, professionals do not have access to corporate policies aimed at the development, promotion and recruitment of senior talent.

What underlies this new reality is that increased longevity will mean that careers will no longer be linear (study-work-retirement). As Lynda Gratton and Andrew Scott put it in their book *The New Long Life: A Framework for Flourishing in a Changing World*, there will be a restructuring of working careers, moving away from this linearity to make way for multiple stages involving periods of learning, work and breaks. A person’s career may last more than 60 years, which demands constant updating of skills through continuous learning (technological changes will show no let-up).

Strategies to foster collaboration between generations
At BICG, we work on this generational integration, creating dynamic work ecosystems where we delve into different areas linked to culture, technology, work processes and spaces.

– Firstly, by developing intergenerational capabilities to facilitate the work of multiple generations and create organisational cultures that foster such cooperation. Each generation will have different perspectives, skills and expectations. And all of these will enrich the work, leading to better business results. Greater closeness is fostered between professionals from different hierarchical levels, areas of expertise or any other background. Work is carried out in collaborative teams where knowledge takes precedence, helping senior staff to bring added value to the teams and younger talent to learn more quickly, whilst the ‘vision’ of the younger generation is also important in encouraging open-mindedness among the more experienced.

– Whilst advances in artificial intelligence and automation will transform the roles of professionals, human skills (creativity, empathy, leadership) will remain valuable.

– Flexibility is encouraged in every possible way, creating ecosystems in which any self-managed professional, within a set of rules, can balance other aspects of their life, including organisational models where not all professionals work full-time or in a single employment relationship. The concept of rigid working hours (9 to 5) will become less common. There will be an increase in flexibility regarding both the workplace and working hours, allowing people to better manage their personal and professional lives over the course of a longer working life.

– Physical spaces have a positive impact on physical wellbeing, regardless of age, but this becomes increasingly important over time. In a prolonged working life, a sense of purpose and wellbeing will be essential to avoid burnout. Companies will have to adopt a more holistic view of the employee, supporting not only their professional development but also their physical and mental wellbeing.

– Leadership is becoming a flexible role, not always held by the same person. Leadership is exercised from different spheres: by function, by decision-making, by influence, and so on. This means it is common to find teams where a more senior person is not in charge of the work, with a younger colleague leading, and on other occasions the reverse is true.