More and more seniors are working—many not for the money, but for the fun and socialization of work. Can retirement-age workers solve the skills shortage?
Kurt Marx repairs and maintains heating systems. He started his apprenticeship almost 50 years ago. In fact, he could soon retire tax-free. However, service technicians plan to continue working. Not for financial reasons: He enjoys the daily challenge of finding technical bugs, he says. Most of all, Max wanted to connect with people. And he knows how hard it is for his boss to find people. “I’m probably not an exception, you need experts after all,” the 63-year-old said.
‘We have to look at where we can get people’
His colleague Berthold Schneider, 70, works once a week at the warehouse of the heating and plumbing company Flach near Trier. Management has made targeted efforts to retain older employees. “We try to talk to employees a year before they retire. Then we know if they are healthy or not,” explains Günter Spaeder, Managing Director of Flach GmbH. “I often get the answer: I don’t want to be stressed anymore, I don’t want to work that long anymore.” But many people can imagine a day or two a week.
Managing Director Spaeder actively emphasizes the experience and calmness of older employees; at the same time, the company is also following this path to reach scarce professional employees. “Because there is a shortage of skilled workers, we just have to see where we can find them.” Five percent of Flach GmbH’s approximately 80 employees are actually of retirement age. Management expects this number to increase.
develop all available potential
The development of the heating and plumbing company from Schweich near Trier is an example of a national trend. According to the Federal Ministry of Labor and Social Affairs, over the past 20 years, the participation of older workers in the labor market has increased to previously unimaginable levels. Last September, more than 3.5 million workers age 60 and older were required to pay Social Security, according to the latest data from the federal Employment Agency. That’s a million more than five years ago. About 500,000 workers aged 65 or older are currently required to contribute to Social Security.
For the DIHK, one thing is certain: In order to cope with the shortage of skilled workers, all available potential must be exploited. Anne Zimmermann of the DIHK emphasizes: “Older employees are already making an important contribution, even past retirement age.” Here, the employment-to-population ratio has risen sharply in a short period of time. In 2011, 10% of people aged 65 to 69 were still working; in 2021 it will be 17%.
practise early retirement fully
For Enzo Weber of the Institute for Labor Markets and Occupations (IAB), the reasons why older people are working more and more are obvious. The retirement age will be gradually raised to 67. Also, the early retirement practice of the 1990s is over. “Workforce is scarcer today than at any time since the economic miracle, which is why many companies are trying to keep their employees on as long as possible.” In a 2018 survey, more than 90% of pensioners Social motivations such as enjoying work and contact with others were cited as motivations for working after retirement; economic motivations also influenced 43 percent.
For labor market researcher Weber, in an era of demographic change, the greatest workforce potential that can still be tapped in Germany comes from the elderly population. “If people aged 60 to 69 were employed at the same rate as people five years younger, almost 2.5 million workers would be recruited in the German labor market,” Weber said. Hence his demands on business and politics: “It is necessary to formulate industrial and general concepts of what jobs older people should be engaged in, and how they should be qualified in this direction in due course.” From age 50, the last 15 years of a career, Another wave of further study is needed.
Older people’s knowledge is more valued
DIHK also wants to make more use of the potential of older employees and therefore wants to make their financial advantages known to more people. This way, continuing to work and contribute after reaching the standard retirement age can generate additional pension entitlements and supplements.
The Federal Ministry of Labor and Social Affairs also recognizes that the importance companies place on the work performance of older people is slowly changing today. “However, companies still need to improve the framework conditions for extended working hours,” a spokeswoman stressed, referring to the ministry’s occupational health advice on how to create a work environment where employees can work until retirement age and beyond.
have natural limits
However, there are also natural limits to the potential of older workers – for example, in physically demanding jobs. This is pointed out by Stefan Serre, director of the Institute for Social Policy and Labor Market at the Koblenz University of Applied Sciences. Furthermore, disease is associated with increasing age. Seniors over the age of 60 can donate, Sell said. “But we must have no illusions that we are addressing a fundamental shortage of skilled workers that will define our day-to-day lives for years to come.”
According to an analysis by the Institute for Labor Market and Occupation (IAB), companies that want to retain employees entitled to a pension mainly offer shorter, more flexible working hours and suitable job content. This is what the company Flach from Schweich near Trier does. Your 70-year-old employee Schneider likes to share his experiences with younger colleagues. The recognition and communication with his colleagues has been good for him, he said. But he only works one day a week. He doesn’t want to work anymore because he wants to have time for hobbies and travel.