Unlock the Untapped Power of Older Workers amid the Talent Crisis
With five generations of employees in the current workforce, many organizations are asking the same question: How do we align different work styles, values, and expectations?
Generational diversity presents real challenges, but it also offers one of the most underleveraged competitive advantages in 2025: tapping into an often-overlooked talent pool of older professionals. These workers bring loyalty, maturity, deep experience, and invaluable institutional knowledge, said Maria Malayter, CEO and founder of Innovations in Change LLC, and Barb Mason, life, leadership coach and CPRC at Unstuck Coaching, during their session at SHRM25 in San Diego.
This is especially important as 1 in 3 recruiting executives is focused on attracting critical talent, according to SHRM’s 2025 Recruiting Executives: Priorities and Perspectives report. Recruitment leaders are prioritizing high-impact roles against the backdrop of a broader talent shortage.
In 2024, 75% of employers from the 42 countries interviewed by workforce solutions company ManpowerGroup reported difficulty filling roles. Projections suggest that by 2030, the global talent shortage could leave more than 85 million jobs unfilled across industries such as health care, finance, and real estate. Meanwhile, millions of experienced professionals ages 65 and older are ready to work but are often overlooked due to outdated assumptions about aging and career potential.
Why Older Workers Are Staying or Coming Back
Older professionals re-enter or remain in the workforce for a variety of reasons, and not all of them are financial, the speakers said. Some want to pursue a second act, such as switching to a career they always dreamed about but didn’t previously get the chance to pursue. Others are driven by a desire for purpose and structure after learning that retirement was not right for them.
For many, though, continuing to work is a financial necessity. The rising cost of living, gaps in retirement savings, and increased longevity have made traditional retirement increasingly out of reach — especially considering that the “magic number” for retiring comfortably in 2025 is now $1.26 million, according to Northwestern Mutual.
The Business Case for Experience
Older workers bring technical and industry-specific knowledge, and they offer stability, loyalty, and maturity, according to Malayter. Whether it’s mentoring rising talent, managing complex transitions, or leading special projects, Malayter said older professionals are often better positioned than anyone else to ensure continuity and drive results.
Meanwhile, the U.S. labor pool is shrinking, the speakers noted. Workforce participation in the U.S. is now at about 62% and has been trending downward since the early 2000s as retirements continue to outpace new entrants. At the same time, skilled jobs are growing faster than the supply of skilled workers. By 2033, the U.S. will need millions of additional skilled professionals to meet demand.
“Experienced workers often save companies money,” Mason said, “especially when you factor in lower turnover, strong mentoring skills, and deep institutional knowledge.”
Barriers to Inclusion
Despite older workers’ potential, they often encounter barriers that prevent full participation and recognition in the workplace, Mason and Malayter said. Two of the most persistent issues are generational stereotypes and status incongruence.
Older professionals are frequently dismissed as technophobic, rigid, or uninterested in learning new skills. “They aren’t tech-savvy” or “They’re just waiting to retire” or “They’ll cost too much” — these are among the most common assumptions. But these perceptions rarely reflect reality.
“These myths are like a greatest hits album of work bias,” Malayter said. “They’re persistent, but they’re just not true.” She explained that many older professionals are just as adept at working with new tools as their younger peers, provided they receive the same level of training and support.
Status incongruence, the tension that arises when a person’s perceived status based on age or experience doesn’t align with their formal role, is becoming more common. In 2023, Generation Z (those born between 1997 and 2012) employees were promoted into management roles 1.2 times faster than in 2019, according to ADP, making up 3% of total manager months worked. That means more older professionals now report to younger managers — often with less experience, tenure, or education.
When left unaddressed, this disconnect can cause friction and ultimately impact retention. Status incongruence with one’s supervisor is negatively associated with job satisfaction, according to a study published in the Journal of Business Research. The result: lower engagement, increased turnover, and a breakdown in cross-generational trust.
Mason and Malayter explained that organizations must also address status incongruence to tap into the value older workers offer. They recommended actively challenging age-based assumptions and equipping managers, regardless of age, with the skills needed to lead diverse teams — because age does not determine ability and experience should not diminish opportunity.
How to Attract and Support Older Workers
To engage older workers, companies must rethink how roles are structured and how opportunities are presented.
Mason shared the surprise she felt when retirees responded to a job posting for part-time facilitators: They didn’t want to stop working entirely. “They just wanted flexibility and something meaningful to do,” she said.
Mason suggested offering flexible schedules, project-based roles, or phased retirement options to make work more accessible to older professionals. In addition, several companies are creating structured pathways for individuals returning to work after a career pause, commonly known as returnships.
Returnships are already helping veterans, caregivers, and professionals returning from career pauses re-enter the workforce — but they can be tailored even further to support older workers. Mason and Malayter shared that programs offering career mapping, skills refreshers, and peer mentoring can make the transition back to work more seamless and meaningful.
As labor shortages deepen and the workforce continues to evolve, the future of work will depend on how well we integrate and value every generation. Supporting older workers doesn’t require a cultural overhaul, just a shift in mindset. The key is recognizing that talent doesn’t have an expiration date.
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