HR leaders are under pressure to adapt workforce strategies as a growing number of employees delay retirement or return to work later in life. But most employers aren’t sure how to respond, despite acknowledging the value that older workers bring.
That’s the finding of a new report from financial services firm Canada Life, which surveyed 500 UK private sector employers and over 3,200 adults to understand how businesses are managing demographic shifts and the emergence of multigenerational workplaces.
The report, Building longevity-ready workplaces in the UK, reveals that 37 percent of employers are seeing people work longer and retire later, while one in five (21 percent) report instances of former retirees returning to employment. Yet only 18 percent say they plan to reassess the age profile of their workforce, and over half (56 percent) admit they are unsure whether they need to.
Recognising the value but not acting on it
Although many businesses remain passive in their response, there is widespread recognition that older workers bring unique value. Eight in ten private sector employees (82 percent) said they appreciate the experience of older colleagues, and 84 percent of employers agreed that older workers offer a different skillset to younger generations.
More than half (58 percent) of employers also said older workers are particularly valuable in customer-facing roles.
But only 55 percent of organisations are actively trying to build multigenerational teams, and just 38 percent of employees described their workplace as genuinely multigenerational.
“We are witnessing a profound shift in the UK workforce,” said Nick Harding, chief people officer at Canada Life UK. “As people live longer and work beyond the traditionally defined retirement age, we’re seeing changes in attitudes, openness and motivations for work in later life, alongside the emergence of a growing ‘un-retiring’ population.
“Multigenerational workplaces hold immense potential for innovation and collaboration. Yet, many employers remain uncertain about how to adapt, with over half unsure whether they need to rethink their workforce strategies.”
What motivates people to work longer
One of the key findings of the research is that financial need is not the primary reason older people stay in or return to work. While 25 percent say they work out of financial necessity, a greater number cite health benefits (42 percent), the enjoyment of being around others (33 percent), and feeling valued (77 percent) as core motivators. Two-thirds also said contributing to society was important.
This shows the need, say observers, for employers to engage meaningfully with older workers and understand what they value, rather than assuming financial incentives alone are the driver.
Recommendations for HR leaders
Canada Life offers several recommendations for creating a workforce that supports longevity:
Encourage open dialogue: Regular conversations between managers and employees at all ages can help identify evolving needs and motivations.
Recognise intrinsic motivators: Purpose, teamwork, wellbeing and social connection matter more than money for many older workers.
Adapt roles and working patterns: Many workers approaching retirement wish to reduce hours (41 percent), move to part-time (38 percent) or transition into less demanding roles (36 percent). Around one in four (23 percent) said they would like to shift roles to stay connected with others.
Case study: Canada Life’s Isle of Man pilot
Canada Life has tested a location-specific age-inclusive recruitment strategy on the Isle of Man, where it faced a shortage of talent and skills. The island had almost three times as many vacancies as unemployed people, with nearly half the population aged over 50.
Traditional recruitment methods focused on younger candidates were no longer effective, so the company partnered with 55/Redefined, a group specialising in advice and services for older people, to engage with local residents about their retirement plans and work preferences. The insights informed a targeted campaign that helped Canada Life fill local roles and build a multigenerational team.
The initiative also prompted a broader review of its HR practices, manager training, and long-term cultural strategy.
Commenting on the pilot, Harding said that “[e]mbracing demographic shifts isn’t just about supporting our colleagues to navigate different life stages; it builds the underlying strength of our business as well. On the Isle of Man, where we faced a pressing talent and skills shortage, our pilot successfully tapped into the wealth of experience offered by the over-50s population.
“Multigenerational teams bring diverse perspectives that encourage collaboration and enhance customer experiences. Our Isle of Man pilot has not only filled roles but is also positively influencing our workplace culture.”
