Our workforce is ageing – the winners will be the businesses that adapt 

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There is a looming economic challenge in our ageing workforce. I say “challenge” in a positive way – it’s a sign that we’re living longer, healthier lives. But it does mean that most of us are going to work for longer, too. We’re going to have to adapt to that – people, businesses, policymakers. 

The answer to that challenge isn’t always to find ways of keeping people in the same jobs for longer. It’s in shifting our mindset away from the old world of work, towards a model that makes better use of the expertise that older professionals have to offer. 

Thankfully, today’s freelancers and fractionals are already showing us it can be done.

Permanent employment offers more than just a salary. It provides security, stability, and a clear path for career progression. But tough economic conditions are making this less certain for many. 

Roles are being cut, benefits rolled back, and people are being asked to automate their workflows and dedicate more time on to cognitively challenging work. There’s already a term for it – “AI brain fry”. 

For the highest earners, the notorious ‘£100k tax trap’ is prompting people to cut their own hours or even avoid promotions. 

And a key point for older professionals – as was reiterated to me at a recent discussion led by Brave Starts – age bias has a massive impact on the shape of our career paths later in life. 

Not all employment is like this, of course. But these are structural challenges that are reshaping the world of employment.  

What’s most interesting to me is how older workers are choosing to respond. 

Overall, close to 50% of the entire self-employed workforce of 4.4 million is aged 50 or over – including one in five who are over 60. 

There’s an assumption that they’re doing it because they have been ‘aged out’ of the job market. But that assumption just doesn’t hold up most of the time – the research we recently ran with Malt on this was an eye-opener. 

It did show 1 in 5 went freelance out of necessity, meaning there is some truth in that old assumption. 

But it also told us that: 

• 63% had actively chosen self-employment later in life
• More than half planned to work beyond retirement age
• Most were actively investing in their own professional development 

Separately, when we asked self-employed people over 50 about their future intentions: 

• 58% said they plan to still be freelance
• The most common reason reported for staying was “I enjoy what I do”
• Of those leaving, 80% said it was only due to retirement 

The question is, are business adapting to this? 

Many organisations still approach hiring and workforce planning with assumptions that don’t reflect how their ideal candidate is looking to work at the senior level. 

Some want project-based work. Others are pursuing consultancy or fractional leadership roles that allow them to contribute strategically without returning to a traditional five-day structure.  

There’s an opportunity available here for the businesses willing to think differently about talent. 

In practice, that means: 

• Don’t default to full-time hiring – identify specific problems and explore how different working models can solve them
• Get the hiring and onboarding process right – it should be based around speed and clear deliverables
• Treat fractionals like strategic partners in the business – if they can’t access other senior staff and aren’t empowered to make decisions, they won’t get used to their full potential 

Companies that become more comfortable working with freelancers and fractional specialists will be better positioned to access senior expertise in a flexible and efficient way. 

If they get it right, they will also benefit from the commercial judgement, institutional knowledge and mentoring capacity that experienced professionals bring. 

But for every winner, there is a loser – and those that remain tied to traditional assumptions about jobs and careers may increasingly struggle to attract and retain the best senior talent.