It’s a misconception to think that an older employee is automatically inefficient or that their ability to work has declined. In reality, those with long careers have so much to give – their perspective, problem-solving skills, and professionalism are often exactly what working life needs. The new pension reform could play a key role in making it easier to employ more experienced workers.
Six years ago, when I was briefly unemployed, I truly experienced the despair of how difficult it is to find a job at the age of fifty.
After moving to the capital region, I applied for jobs very actively. When I had exhausted every option, I expanded my search beyond my core expertise. In the end, I got a job with the State – an option I had never even considered before. Now I work in the municipal sector and am grateful for this opportunity as well.
Solid experience and mentoring
Employees with long work experience hold valuable tacit knowledge and special expertise accumulated over the years. The significance of this experience should be highlighted and actively used for the benefit of the whole organization.
Mentoring was also crucial in helping me learn my new job. My mentor was encouraging but also gave me the space to work independently and in my own way. They had a wealth of tacit knowledge and deep expertise in our field, which made it much easier to get up to speed with the role. This model is far more effective than self-study alone. In my opinion, companies should invest more in mentoring where 50+ employees serve as guides – they are able to explain things clearly and in a down-to-earth way.
Pension reform makes it easier to employ people over 55 and those with reduced work ability
The main goal of the reform is to lower the threshold for employers to hire more experienced employees. In particular, the contribution class model for large employers has changed: if an employer hires a new employee over 55 and this person later retires on disability pension, the employer’s contribution class will not rise because of it. In practice, this means the employer will not incur additional pension contribution costs from that disability case.
The change applies to new employment relationships starting on or after 1 January 2024. Previously, large companies had to pay higher pension contributions if their employees retired on disability pension, which made hiring older workers financially riskier. Now this barrier has been removed, which will hopefully encourage companies to make better use of the expertise of experienced employees.
The author works as a Specialist at Helsinki Employment Services