Age diversity as an opportunity for demographic change

It’s difficult to influence demographics, but we can adapt. For example, by better integrating older people into the world of work. AXA Switzerland is pursuing this goal with the AXA Horizon pilot program. 

Western societies are aging, and this is noticeable here in Switzerland too. The baby boomer generation is retiring while birth rates remain low. This development is leading to a shrinking population – with a growing proportion of older people. The supply of skilled workers is stalling and the pressure on the social security system is increasing. But there are also opportunities, such as age diversity. Age diversity is more than an expression of social responsibility. It even offers companies strategic advantages.

What does demographic change mean for the labor market?

We are threatened with an increasing shortage of skilled workers and manpower. There are fewer and fewer young skilled workers on the labor market and more skilled workers are retiring. Companies face a dual challenge of filling vacancies and securing the expertise and experience of the departing generations. Against this backdrop, it makes sense to tap the potential of older employees. However, the necessary framework conditions are often lacking. This is why Pro Senectute Switzerland and the Swiss Employers’ Association, for example, are working together to encourage voluntary continuation of work after the reference age (in German).

How do aging workforces shape a company?

“Demographic change, which is reflected in our workforce, is not only a challenge, but also an opportunity to rethink issues,” explains Sibille Blättler of AXA Switzerland. She is head of the AXA Horizon pilot program and works intensively on the topic of age diversity in companies. “In our company, 23 percent of employees are 55 years of age or older and have an average of 23 years of service. Here, colleagues with an incredible amount of specialist knowledge, experience and network will retire over the next few years. Reason enough for us to focus specifically on this target group and look at how we can benefit from these colleagues for as long as possible. AXA Horizon aims to systematically support employees aged 55 and over in their professional development.”

What are the benefits of age diversity?

Research shows that mixed-age teams are not only more productive and creative, but also have a positive impact on the working environment. A study conducted by ZHAW Zurich University of Applied Sciences (in German) confirms age diversity as a competitive advantage. Age diversity guarantees a varied mix of perspectives, experiences and skills in teams – a driving force for innovation. Young and old work closely together and learn from each other, such as in generation tandems.

What are the prerequisites for age diversity?

The basis for successful age diversity is an inclusive corporate culture.  It’s about breaking down mutual prejudices, recognizing diversity, and seeing generational diversity as a benefit. “We want to move away from age stereotypes and towards a real appreciation of every phase of our career,” explains Sibille Blättler. “This is how we create space for a sustainable, productive work environment in which all age groups feel comfortable and included.”

Do age stereotypes hinder age diversity?

Yes, because what we think and believe about the world shapes how we perceive and act. So if we think that older people are less efficient, slower, and more complicated than younger people, we run the risk of experiencing them this way too: we don’t give them the opportunity to show us who they are and what they can contribute. Here are some common age stereotypes (although prejudices about younger people are just as common and harmful): 

“Older employees are less productive than younger employees.”

False. Older employees are different! We change over the years. Some qualities are lost, others are added. This development should not be viewed positively or negatively. Rather, it is important to move with the times and adapt the tasks of older employees in such a way that their qualities come into play, such as experience, vision and social skills.

“Older people are hardly able to learn anymore.” 

It’s not true. Science has long proven that the brain remains extremely plastic and capable of learning until old age. When learning is difficult, it’s usually either because of difficult circumstances, false expectations – or because you don’t trust yourself enough. On the other hand, if you stay curious and positive, you can learn something new throughout your life.

“Older employees are neither flexible nor motivated.”

That, too, is not correct. Older generations in particular are making astonishing adjustments in an environment of rapid change. They are learning to cope with new technologies and asserting themselves in the digital world. In addition, many older employees take their work very seriously and prove to be committed, prudent and reliable. 

More age diversity – what does this mean in concrete terms?

“We need new models. Work 100 percent up to the reference date and then retire 100 percent – this is often no longer appropriate. Today, we live longer and are fit for longer. Many people can and want to work longer,” says Sibille Blättler. 

Retirement models

“Elements such as partial retirement, Senior Flex, and deferred retirement could ideally be supplemented with retirement models,” explains Blättler. “I believe that we need to reshape the transition from work to retirement and the last phase of the classic professional career. More attractive, more flexible and more individual offers are needed. This way, we can persuade colleagues to contribute their knowledge and experience with us for a little longer.”  

More flexibility

People between 30 and 50 tend to want more time and flexibility – for family or health, continuing education or hobbies. It is therefore necessary to find ways of distributing work more effectively throughout life. The theory: if we were to relieve the burden on our mid-life, we would be less exhausted by the end of our working life. And therefore more able and motivated to remain gainfully employed beyond retirement.

Lifelong working life

Some companies in Switzerland already offer time models that support a freer organization of working life. For example, employees in the canton of Zurich can use the “lifelong working life” model to bring forward working time and compensate later, for example for parental leave, time off, or cutting back in later years. Here’s how it works: during the savings phase, you work your normal workload, but receive a lower salary. The unpaid hours are credited to an hourly account and can be compensated later.  

Note: the term “lifelong working life” can also be understood as total duration of working life, from starting gainful employment until retirement.

What counts towards the end of working life?

Older employees value recognition, flexibility and a corporate culture that values their experience. Many would like to remain active beyond their regular retirement and would like to be supported in this endeavor. Comprehensive employee care is also important, not only for employees, but especially for employees in their final career phase. “Health promotion, flexible work models, and training opportunities in the spirit of lifelong learning are deeply rooted in AXA’s culture,” says Sibille Blättler.

What is AXA doing to increase age diversity?

With AXA Horizon, AXA Switzerland has launched a pilot program aimed at employees aged 55 and over. The program includes, among other things, flexible forms of work, targeted knowledge sharing, networking and specific development opportunities. AXA Horizon supports older employees and retired colleagues who wish to remain professionally active. Projects and specialists come together on an internal marketplace – a win-win situation.