Geoff Smith, managing director, Experis UK & Ireland, discusses how the UK’s ageing demographic will impact the way in which tech startups will approach hiring.
Picture the average tech startup employee and what springs to mind? Perhaps someone in a hoodie and jeans in front of their laptop, plugged into the latest tunes in an open-plan office – and most likely in their early twenties.
The likes of Google, Facebook and Snapchat have painted a picture of ambitious youngsters that are only just out of university and are building the next big tech-based giant from scratch, inspiring a whole generation to do so.
The culture that these tech startups now espouse – brilliantly captured in HBO shows such as Silicon Valley – appeals to the millennial mindset and what Generation Z is looking for in a career. As the “first tribe of true digital natives”, with desires for more freedom, stimulating work and a sense of purpose in their job roles, these employees are drawn to work for tech startups and tech startups seek to attract them in tandem. You only have to look at the average age of an employee at Facebook, which is 28, compared to 38 at IBM to see this.
Demographics
However, this preference for younger workers doesn’t accurately reflect changing demographics. Thanks to medical advancements and lifestyle improvements, our population is ageing. By 2026, there will be nearly 20% more people over the age of 65 in the UK. And, with life expectancy increasing, the Treasury has seen its costs shoot up, as it is paying some pensioners for more years in retirement than they spent paying National Insurance as workers. This strain could leave millions of people over the age of 75 having to continue working into later life to support themselves.
So, will we begin to see startups recruit more experienced workers? These individuals provide a “hidden talent pool” in the labour market and there is much to be gained from looking to more experienced hires. For instance, if they’ve already worked for larger organisations, they’ll have a solid understanding of organisational structure and workflow and the infrastructures and systems required to support growth. They’ll also bring softer skills such as problem solving and decision making, as well as consulting and advising senior stakeholders based on their decades of experience.
Alternative methods
Currently, many tech startups recognise the need for this wisdom and seek it via alternative methods, whether mentors, venture capitalists with wider economic and investment experience or elsewhere. But to truly capitalise on their expertise and critical knowledge share between older and younger workers, it requires a significant cultural shift. Legacy systems and wider business understanding are incredibly important and there is a need for older generations to train younger workers in these areas to ensure knowledge isn’t lost and to support company growth. But at the same time, we must move away from the stereotype that the over-50s are less creative or can’t keep up with the latest technologies. And, the key to getting it right lies in upskilling this workforce.
There is a lot to be learned from larger companies like B&Q, and National Express, as well as Lloyds and Barclays. They are already launching initiatives specifically designed to empower older employees and engage them in new ways of working. Barclays, for example, is investing in upskilling older recruits through its senior apprenticeship scheme.
Most tech startups will have ambitions for rapid growth, much like the Snapchats and Facebooks of this world have achieved. But this growth will only happen with the right mix of people and expertise on-board. Tech startups should not only hire that specialist talent they need now, but also work with trusted partners and consultancies to give them strategic direction and identify the skills that will be required in two to three years’ time.
The labour market stands on the precipice of change in the way that talent is sourced. While socio and economic factors are driving this fundamental shift, it will be down to business leaders but also entrepreneurs to respond. Those that do will reap rewards, by being able to attract, engage and retain the people they need to succeed.
By increasing the flow of talent and encouraging knowledge-sharing, start-ups can continue to create exciting new career opportunities for all employees and ensure their businesses can flourish in the digital age.