Senior employees want greater flexibility

Published in Avisen Danmark

Real life is more nuanced than the figures in a spreadsheet. Yet politicians and business organisations sometimes end up fixating on financial incentives as the primary – and occasionally the only – means of encouraging more older workers to stay in the labour market longer.

But for many highly educated seniors in the private sector, our figures suggest that other factors carry greater weight.

IDA has asked more than 1,300 privately-employed members aged over 60, who have already set a date for their retirement, what specifically might persuade them to postpone their retirement. The answers are remarkably clear.

Flexibility in various forms trumps financial gains when it comes to deciding to leave the labour market.

Specifically, 63 per cent say they would stay longer if they could reduce their working hours. 55 per cent cite increased flexibility, such as more flexible working hours, as a key incentive. 39 per cent mention greater influence over how tasks are carried out, whilst 27 per cent point to a job guarantee.

Increased financial gain comes in fifth place. Fewer than one in four, 24 per cent, say that money is decisive in whether they remain in the labour market.

This should give pause for thought. For although political reforms have made it more financially attractive to work beyond the official retirement age, and this has had a significant effect, the low-hanging financial fruit has now been picked.

And for many older workers, a meaningful working life is about much more than personal finances. It is also about energy, purpose, influence and a balance between work and leisure time.

This is where senior agreements come in as a key tool. The cornerstones of a senior agreement are precisely reduced hours, flexible working hours and the adaptation of work tasks.

It can mean the difference between continuing to work or retiring. For many older workers, this means more time for family, children, grandchildren and hobbies, without completely giving up their professional skills and the workplace community.

Many companies have already recognised the value of this. But far too many older workers still find it difficult to secure a senior agreement. Either because the options are unclear at their workplace, or because such an arrangement is simply not on offer.

Among IDA’s privately employed seniors, the figures clearly show that flexibility is the strongest key to retaining more people in the labour market for longer.

We have recently found that senior schemes extend working life by more than a year and a half on average. Engineers, IT specialists and science graduates remain in the labour market that much longer when they have had a senior scheme in the latter stages of their career, compared to those who do not have a senior scheme.

We must look at the whole person when seeking ways to encourage those who are both able and willing to continue working to postpone their retirement. In these efforts, it is crucial that more workplaces offer senior schemes to their most experienced employees.