Senior talent are two words that have always been linked. Throughout history, older individuals have been respected and listened to for their talent, as they accumulated experiences and knowledge essential for society. Even etymologically, both terms are synergistic. The word ‘talent’ originates from the ancient Roman gold coins of the same name, and its meaning evolved to signify an aptitude. On the other hand, ‘seniors’ were the elders, the wisest, those who possessed the most virtues, and thus belonged to the Senate of Ancient Rome.
However, in a very short time and without us realizing it, ‘senior talent’ has become an oxymoron. Two words that, together, hold great value, have come to have a contradictory, if not opposite, meaning. If you are a senior, the labor market no longer values your talent. And if you have talent for which someone will pay, it’s because you haven’t reached 50. In Spain, there are nearly one and a half million unemployed people over 50, and a very high percentage of resumes in this age cohort end up directly in employers’ trash bins, which in many cases represents a severe blow to personal dignity and family well-being. As if that weren’t enough, seven out of ten IBEX companies admit they don’t know what to do with their employees once they turn 50, as highlighted in the latest report by the Fundación Compromiso y Transparencia, which we had the honor of recently presenting at an event organized by Deusto Business School.
If the value of older individuals was never underestimated throughout history, it makes even less sense to do so now that it has been proven that sixty-year-olds have the physical and intellectual health of workers who were forty in the mid-last century. In Spain, more than eight million employees aged between 55 and 70 enjoy a high quality of life and accumulated knowledge that few companies, according to existing data, wish to continue utilizing. Thanks to legislation that promoted early retirements, thinking it helped combat youth unemployment, in just a few decades we have constructed this oxymoron that violates the principle of equity among workers and squanders enormous value for our economy. As a consequence, false stereotypes have emerged in our social imagination, making us naturally accept that older workers tend to be unproductive and outdated.
Despite the seemingly inexorable aging of the population, and thus knowing that there will be no choice but to work many more years to finance our pension system, the inertia of this process of replacing senior employment with younger workers seems unstoppable. In fact, Spain is already a country of early retirees, as more than 50% of workers retire before the age of 65. In 2018, over 141,000 people who had not yet reached 65 retired, and this year, we will probably end with more early retirements than ever. We question whether many of the same experts who decry the Social Security deficit would be willing to forgo inclusion in a generous early retirement plan.
If longevity is a dividend that no country should forgo, how can it be that, at the same time, the talent and capital of millions of workers who possess values such as conflict management, personal growth, and commitment to their employers are wasted? Calculate what it would mean for any economy if all that workforce ceased to be invisible and became productive. A demographic bonus for countries that dare to do so. Some companies, such as Germany’s Thyssen or Mercedes-Benz, are already experimenting with this. In Japan and Korea, they have been linking compensation for older workers to their capitalization in entrepreneurial projects for years. Canada and Ireland have just launched ambitious public programs with this objective.
It is in our hands to do something similar in Spain. With laws that promote the employability of all individuals who wish to remain employed and, therefore, limit the discrimination suffered by those over 50 in the labor market. With governments that guarantee the right to continue working beyond 50 with new actions that incentivize senior work fiscally, but also socially and culturally. With companies that apply the best international practices to retain and reorient their older employees. But also with responsible citizens who assume they will have long professional careers with ups and downs and different dedications that will require lifelong learning. In any case, progress can only be made if all involved parties—Administration, businesses, unions, and workers themselves—join forces and work in the same direction.
Spain had a life expectancy of 60 years in 1950; today, we exceed 80. If we have gained two decades of life in such a short time, how can we not ensure that the ‘senior talent’ duo once again becomes what it has been for the last 3,000 generations: a formula for success?
Juan Carlos Delrieu, Director of Strategy and Sustainability at AEB, and Iñaki Ortega, Director of Deusto Business School
