With an Aging Workforce, Businesses Need to Balance the Fruits of Experience with Rising Workforce Costs
The article discusses the challenges businesses face with an aging workforce, balancing the retention of experienced employees with increasing workforce costs. It suggests strategies for managing these dynamics to ensure continued success. The focus is on education-technology companies and their specific challenges.
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Key takeaways
Balancing workforce experience with cost management is a growing concern.
Strategies are needed to retain experienced employees while managing expenses.
Education-technology companies face unique challenges with an aging workforce.
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How can businesses effectively address the diverse needs of an aging workforce while managing the associated costs? The increasing presence of older employees brings a wealth of experience and stability to the workplace, yet it also demands significant investment in continuous training and updated benefits to match their evolving needs.
As of 2023, according to fresh Pew Research Center data, the number of working Americans aged 65 and older has nearly doubled over the past 35 years, with these older workers now earning an average of $22 per hour, a significant reduction in the wage gap with younger workers aged 25 to 64. This demographic shift is accompanied by an increase in full-time employment, higher education levels, and diverse racial and ethnic representation among older workers.
The number of working Americans aged 65 and older has nearly doubled over the past 35 years, with these older workers now earning an average of $22 per hour, a significant reduction in the wage gap with younger workers aged 25 to 64.
What are some of the opportunities and challenges for businesses that come with an aging workforce, and a larger share of the workforce being 65 and older Americans at that? Mfon Akpan, DBA, CGMA, an accounting and financial management researcher and Assistant Professor of Accounting at Methodist University, explains how this shift can both enhance productivity, while also prove costly for managing a varied demographic.
"Business organizations may see shifts around operating expenses tied to training and development…to keep older employees more up-to-date as technology is changing," Akpan said. "A benefit would be, by having a broad demographic base, that leads to a greater experience among the workforce, a diverse set of ideas, younger employees interacting with more experienced, older employees."
A benefit would be, by having a broad demographic base, that leads to a greater experience among the workforce, a diverse set of ideas, younger employees interacting with more experienced, older employees.
— Mfon Akpan, DBA, CGMA, Assistant Professor of Accounting at Methodist University
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About the author
As an Assistant Professor of Accounting at Methodist University, Mfon has over ten years of experience in teaching, research, and service in accounting and financial management. He holds a Doctor of Business Administration (DBA) degree from Indiana Wesleyan University and a Chartered Global Management Accountant (CGMA). This credential demonstrates his expertise and commitment to the highest standards of ethics and professional practice. His mission is to provide quality education and mentorship to students, to advance knowledge and practice in accounting and related disciplines, and to contribute to the community and the profession. He has developed and taught courses in accounting, finance, business, and management at undergraduate and graduate levels, using innovative pedagogical methods and online platforms. Mfon has also published and presented his researches on accounting topics in peer-reviewed journals and conferences and participated in various academic and professional committees and organizations. Additionally, he has leveraged his analytical, customer relationship, and new business development skills to serve as an Audit Committee Member for the City of Fayetteville, North Carolina.
