The workforce is aging at a rapid pace.
In 1990, people aged 65 and over made up just over thirteen percent of the population. Just over thirty years later that is already twenty percent. According to the Central Bureau for Statistics (CBS), this trend will continue over the coming decades door.
‘Work gives you meaning and a purpose, without work life is empty’, said the British physicist Stephen Hawking. Older people can with their knowledge and experience still make a valuable contribution. From research From Indeed it appears that 38 percent of working people over fifty expect to have a hard time because of the possible economic crisis. More than 30 percent even think they will lose their job earlier than younger colleagues. With a view to the rising aging population, employers can actually make use of older workers. But what are the advantages and disadvantages of hiring older employees?
The benefits of older employees
Hiring an older employee provides the following benefits:
Knowledge and expertise
With an older employee in your organization the knowledge and expertise they have built up are not lost. Look at the motivation of an older employee. Let him or her continue working in their position and motivate others. The employee can also, for example, be deployed as a coach for the younger generation. This way knowledge can be transferred.
Loyalty
Older employees are less likely to job-hop. While younger employees often have had enough of a company after two years, older employees are more loyal and remain with the company longer.
Financial benefits
The employment of an older employee has advantages for both parties. As an employer you are not bound by the statutory minimum wage and holiday allowance. Also you don't have to for someone who has reached pensionable age but six weken of wages to pay during illness instead of two years. In addition, you no longer have to pay social contributions for the AOW-er. For the employee this only means that he is not insured against unemployment, illness and disability. Also, additional earnings do not come at the expense of his pension. Income from work has no effect on the AOW benefit or supplementary pension that was accrued in previous years. Finally, there apply to AOW-ers special rates for the wage tax credit. And are older people eligible for a senior discount .
The disadvantages of older employees
Hiring an older employee sometimes carries some risks:
Illness and incapacity for work
The most obvious risks are the chance of illness and incapacity for work. As an employer you must continue to pay wages during illness and ensure reintegration. In addition, you are bound by legislation and regulations. Do you want to dismiss an AOW recipient? Then a notice period of one month applies unless someone entered employment after reaching the AOW age. Then you have a dismissal permit needed from the CWI or must you have the agreement dissolved by the cantonal judge.
Business continuity
How long can an older employee keep working? Do they want to brush up their knowledge? In the Netherlands, older workers are increasingly not being retained in employment. The prevailing prejudice is that older employees are less active and flexible. They too must learn and change. With a younger employee, organizations can plan further ahead and work more efficiently toward the company's success.
Deploying older workers in the workplace brings predominantly advantages. It is a good addition for the shortages in the labour market. Still, it is wise to look carefully at the ‘new’ employees. Pay attention to their personal motivation and development to prevent possible dropout so that you can keep them employable for a longer period.
