Senior talent & compensation policies: A comparison with the U.S.

In today's demographic landscape, managing senior talent (professionals aged 50/55 and over) has become a crucial strategic challenge for companies. The vast experience, consolidated knowledge, and strong work ethic of this group are invaluable assets. So, how can we retain and leverage this potential? We'll analyze compensation policies in Spain, comparing them with the U.S. model, to identify strategies that boost senior professional engagement.

Despite an increase in activity rates among 50 to 64-year-olds in Spain, challenges like senior unemployment and a decline in labor participation after 60-65 persist. Ageism and the cultural perception of retirement as a definitive withdrawal limit opportunities. Many SMEs also lack specific programs to retain and develop this crucial talent.

It's essential to rethink talent management strategies, especially compensation and benefits policies.

Learning from the U.S.: Key factors for senior participation

The U.S. labor market presents several factors that promote greater participation among senior professionals:

• Economic incentives & social security: The social security system, supplemented by individual savings (like 401k plans), encourages extending working life to ensure greater financial stability in retirement. In Spain, recent pension reforms also aim to foster delayed retirement.
• Access to healthcare coverage: The link between health insurance and employment in the U.S. motivates many senior professionals to postpone retirement. While Spain has public healthcare, offering private health insurance as part of the compensation package can be a significant retention factor.
• Culture of valuing continuous contribution: There's growing recognition of the value (experience, reliability, work ethic) that older workers bring. Fostering this culture in Spain is crucial.
• Legal frameworks for protection & opportunity promotion: Laws like the ADEA prohibit age discrimination. Having clear regulations and support programs is vital for an inclusive work environment.

Adapting compensation & retention policies in Spain

Beyond a competitive base salary, which is fundamental for attracting and retaining talent, the total compensation package should be a strategic tool that includes both monetary and non-monetary elements. As we've identified in our daily work at Servitalent, highly qualified professionals, middle managers, and executives value not only direct economic compensation (salary, variable pay, profit sharing) but also aspects like:

• Well-being and health-related benefits: Private medical insurance, access to fitness or mindfulness services, which can be especially relevant for older ages.
• Professional development and continuous training plans: Investing in reskilling, especially in digital competencies, is crucial for maintaining the employability and motivation of senior talent. Access to online learning platforms or training subsidies are highly valued benefits.
• Work flexibility: Options like remote work, flexible hours, or compressed workweeks (4-day weeks) address work-life balance needs or personal preferences, facilitating continued participation in the labor market.
• Unconventional benefits and recognition: From mobility assistance to family benefits or exclusive experiences, customizing benefits and recognition systems can foster strong bonds and a sense of belonging, acting as key factors for senior talent retention.

Implementing these strategies requires a deep understanding of the market and talent expectations. It's essential to conduct regular salary benchmarking studies, like the one we recently launched in the Galician industry in collaboration with ASIME and AEDIPE Galicia. This ensures our packages are competitive and, more importantly, helps companies design innovative compensation models that adapt to geographical realities and the specific characteristics of each professional profile.

 Do you need a compensation and retention strategy for your organization's talent?