By 2050, more than four in ten individuals in the world’s most advanced economies are likely to be older than 50. The workforce is ageing even more rapidly as smaller cohorts of younger people enter work at a later age and older people are staying on longer at work. Inherently, both business and economic success and productivity will be increasingly tied to that of older workers. If employers and other key stakeholders are to adapt to ongoing changes in the world of work – now accelerated by the COVID‑19 pandemic – they will need to re-evaluate their policies and practices with an eye toward an age-inclusive workforce.

People are living and working longer than ever before, with four to five generations working side by side. This reflects the positive sides of population ageing and brings big opportunities for business, workers and society. It is estimated that building multigenerational workforces and giving older employees greater opportunities to work could raise GDP per capita by 19% over the next three decades. And contrary to common perceptions, novel evidence across OECD countries shows that older workers can boost firm productivity not only through their own experience and know-how, but also by enhancing team performance via age and skill complementarities between younger and older workers. However, this requires the right policies and practices from employers, governments and through social dialogue to ensure that the benefits of a multigenerational workforce are fully realised.

Employers are living in a period of great uncertainty. Some of the changes sweeping across the world are predictable such as rapid population ageing while others are less certain such as the exact pace and nature of the digital revolution, let alone the far less predictable and devastating impact of the COVID‑19 pandemic. Responding to these changes requires a sharper focus on building resilience within organisations and bringing on board the full potential of their talent pool irrespective of age. With the right employer practices and tools, organisations can be more agile, more inclusive and more productive.

The COVID‑19 pandemic and megatrends in the global economy are rapidly shaping the way people work today and the future workforce. Rising longevity and falling fertility will considerably reduce the population share at traditional working ages but will also allow individuals to work and contribute to society much longer. New technologies are both a challenge and opportunity for a more age diverse workforce. In the new world of work, the ability to build businesses around a multigenerational workforce that recognises the value and contribution of workers of all ages will be crucial for prosperous and resilient companies. This chapter highlights some of the major changes in the world of work and identifies arising challenges and opportunities for business.

Rapid population ageing is pushing companies towards greater diversification of the age profile of their employees. This raises questions about the effects of increased age diversity on business performance. The chapter provides new international evidence that a greater inclusion of older workers is likely to be good for firm productivity (i.e. to raise the value added per worker of the firm). A key advantage of a multigenerational workforce is that it enables effective synergies between experienced and less experienced staff to the benefit of employers and employees. Reaping these benefits will require putting in place tailored support at all ages and strengthening collaboration between generations.

Population ageing brings older workers more and more to the centre stage. Drawing talent from workers of all generations will be critical in meeting different business needs and skill priorities. Access to a large pool of skills and talent can also help firms to better cope and respond during difficult times. Yet many factors can stand in the way of acquiring and keeping the talent that is needed. This chapter discusses key barriers to fully age‑inclusive workplaces, including ageism, and puts forward all-inclusive recruitment and retention policies to better integrate even more generations than in the past.

Employers who respond positively to the changing needs of employees during their lifecycle and career stages improve their success in attracting, motivating and retaining workers. These workers will in turn exert effort on behalf of their company and play a full part in making it efficient and productive. While the ways that employers use to better understand and respond to changing employee needs will differ between countries and sectors, the principles underpinning them are likely to have wide applicability to employees of all ages and in all occupations. This chapter review two key aspects of work: work-life balance and workforce health and well-being – which can provide an attractive environment for employees to thrive and be engaged and productive.

No other factor influences business performance and competitiveness more than its workers’ skills and qualifications. However, persistent inequalities in training offers and take-up by age mean that many older workers are left without right skills to flourish in and prolong their careers. This is disadvantageous for firms: it risks lower productivity from declining performance when not investing in all employees, and the loss of experience as older workers’ skills become obsolete and they exit the workforce. A key challenge for organisations is to put the development of employees from all age groups at the forefront of lifelong learning and combines it with a life-phase orientation. This chapter reviews the benefits of and some of the barriers to lifelong learning as well as firm strategies to maximise the diverse skills in the workforce.