Marvin OnumonuUK workers are staying in their jobs longer and retiring later, but most employers are not sure how to handle these changes, research from Canada Life found.
The survey showed that over a third (37%) of businesses have seen staff working later into life compared to five to 10 years ago.
One in five (21%) employers said people who had retired were coming back to work.
Four-fifths (83%) of employers were aware that people are living and working longer, but only one in six (18%) said their business would need to change its approach to the workforce.
More than half (56%) were not sure if any action was needed.
The report also found that both employers and workers see benefits in having teams made up of different age groups.
Eight in 10 (82%) employees said they valued older workers for their experience and a similar number (84%) said they brought different skills to the job.
Nearly six in 10 (58%) employers said older staff are particularly valuable in customer-facing roles.
Even so, just over half (55%) of businesses were actively building teams with a mix of ages.
When asked, only 38% of the public described their workplace as multigenerational.
Canada Life’s report, ‘Building longevity-ready workplaces in the UK’, suggested employers hold regular discussions with staff to understand their changing needs and plans as they get older.
It also advised asking workers what makes them feel valued.
The research found that only a quarter (25%) of people working later in life do so for money.
Most said the main reasons were the mental and physical health benefits (42%), and being around people (33%).
Over three-quarters (77%) said feeling valued and having good relationships at work mattered most, while two-thirds (66%) said making a difference to society was important.
The report also said employers should look at whether roles could be changed to suit different working patterns or motivations.
Of those aged 65 and under, 41% planned to reduce their hours gradually, 38% wanted to switch to part-time, 36% hoped to move to a less demanding role and 23% said they wanted to change the type of work because they liked being around people.
Nick Harding, chief people officer at Canada Life UK, said: “We are witnessing a profound shift in the UK workforce.
“As people live longer and work beyond the traditionally defined retirement age, we are 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.”
Harding added: “Yet, many employers remain uncertain about how to adapt, with over half unsure whether they need to rethink their workforce strategies.
“By fostering open conversations, responding to the evolving needs of employees, and adapting roles to suit changing motivations, businesses can create inclusive, multigenerational teams that thrive.
“Embracing this shift isn’t only about meeting the needs of today’s workforce, it’s a vital step in building a stronger, more inclusive businesses in the future.”
