Abstract
Today’s advances in neuroscience hold promise for workers and their employers to develop more effective strategies to improve brain health and build the cognitive skills necessary to meet present and future human capital challenges. These advances are more and more important in the current knowledge economy, where a focus on brain health can promote human flourishing, economic competitiveness, and business success. It can also prepare us for demographic aging and offer us an opportunity to build prosperous, inclusive, multigenerational workplaces and communities.
The Problem: The Challenges of the New Economy and the New Workforce
Our Economy has Changed
The structure of the economy and the demographics of people that power it have drastically changed. Half a century ago, over 80% of S&P 500 companies’ balance sheets predominantly consisted of tangible assets like equipment, inventory, and property. Today, over 90% of asset value derives from intangibles that produce not specific equipment or physical structures but new knowledge. Assets such as intellectual property, brand value, patents, and technological advancements are crafted by human expertise and creativity. 1 Human talent and intelligence is at least 2.33 times more valuable than physical capital, and for every US$1 invested in human capital, US$11.39 is added to GDP. 2 The World Economic Forum and Willis Towers Watson are even proposing a new accounting framework that would enable companies to monitor and assess the return on investments in employees in the same way that they measure financial and intellectual capital. 3 Despite this, in a survey of more than 800 global corporate leaders, 64% of respondents told Korn Ferry that they see people as a bottom-line cost, not a top-line value generator. 2
Demographics Have Changed
At the same time the nature of work has transformed, the demographics of the labor force have also shifted. Today’s workforce is smaller, older, and increasingly female and non-white. The aging of the baby boom generation has lowered the overall labor force participation rate, a trend projected to continue as older Americans exit the workforce. Seventy percent of labor force participation decline is due to aging workers, resulting not only in shortages but the challenge of “brain drain,” the acute need for leaders to transfer wisdom to successors. Employers struggle to find qualified workers and candidates. 4 Nevertheless, minority groups, women, and the older population remain underemployed, and wage gaps continue to grow.
Our Health is Worse
The declining health of the population, particularly in these underemployed groups, has contributed to the constricted labor pool and wage gaps.5,6 While life expectancy has risen, today we spend more time in absolute terms in poor health than we have at any other point in history. On average, people spend about 50% of their lives in less-than-good health. 7 We also spend more time caring for those in poor health than ever before. More than 60% of caregivers experience disruption to their employment, and 14% take a leave of absence for caregiving duties. Women account for 61% of caregivers, and 39% are people of color. Without needed support, 32% of these employees will leave the workforce. Lost productivity by caregivers in the workplace is estimated at US$33.6 billion—about US$2000 per full-time employee. 8
The total health loss due to brain disorders in the United States is on par with loss due to cardiovascular diseases and cancer, and the burden of brain disorders is increasing relative to other disorders. The Organization for Economic Cooperation and Development’s (OECD) New Approaches to Economic Challenges initiative estimates that impaired brain health is costing the global economy as much as US$8.5 trillion a year in lost productivity. 9
More than half the population in the United States is living with a chronic condition. An aging populace will heighten brain disorders and chronic conditions and compound neurological conditions like dementia. By 2050, dementia cases will double, 11 impacting health, caregiving, worker retention, absenteeism, savings, equity, and education. Out-of-pocket healthcare spending related to dementia on average consumes a third of a family’s wealth in the last 5 years of life. In 2018 the lifetime cost of dementia care for a person in the U.S. averaged nearly US$350,000, 70% of which is born by the family for costs of care at home. 12 For a Black family, dementia consumes, on average, more than 80% of the assets in the last 5 years of life. Due to the economic strain, 20% of care contributors dip into their retirement savings, 15% borrow money, and more than 10% cut back on spending for their children’s education. 12
Factors of Physical Health Impacting Cognitive Health. 10
World Economic Forum top Five Workplace Skills. 19
The Solution: Brain Health
A Focus on Brain Health can Improve Overall Health and Well-Being
The brain’s optimal functioning is significantly impacted by various aspects of health, including chronic conditions like hypertension, diabetes, obesity, and mental illness. 13 Maintaining good physical health is essential for optimal brain function, cognitive performance, and reducing the risk of neurological disorders like Alzheimer’s and Parkinson’s diseases [Table I]. Neuroscience plays a pivotal role in understanding these connections, offering insights that enable more effective interventions targeting cognitive health and chronic disease management. By incorporating neuroscience insights, well-being interventions can become more precise, personalized, and effective. 14 Interventions like cognitive training or neurofeedback can potentially enhance self-regulation, adherence to treatment, and lifestyle modifications crucial for managing chronic diseases. 15
Learn more about defining brain health at: https://businessforbrainhealth.org/resources/roundtable-brief-3-defining-brain-health. 16
In workplaces, leveraging neuroscience insights is also valuable for creating supportive environments. Understanding how stress affects the brain’s functions aids in designing interventions like mindfulness training to improve stress regulation and focus among employees. Additionally, neuroscience sheds light on the importance of social connections, prompting the development of programs fostering positive workplace relationships, team-building, and social support.
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By incorporating neuroscience, employers can tailor well-being programs and workplace settings and policies that address the neural aspects of stress, cognition, and social dynamics, ultimately fostering a healthier and more productive work environment (Figure 1). Components and benefits of brain health for employers.
Focusing on Brain Health Can Help Address Underemployment and Wage Gaps
Closing the U.S. health-related participation gap (the difference in employment rates between individuals affected by health-related issues and those not similarly affected) holds the potential to significantly augment the U.S. labor force by approximately 13 million individuals by the year 2060. 6 Mitigating health-related barriers that hinder workforce participation—such as chronic illnesses, disabilities, and mental health conditions—would enable many to join or rejoin the workforce, contributing substantially to economic growth, productivity, and overall societal well-being. 16 Those most impacted by the health participation gap include minority groups, low-income communities, individuals with disabilities, and older adults.
A recent McKinsey analysis showed that between 17% and 42% of Americans over age 50 would like to work or volunteer but are not currently doing so. AARP found that among Americans who are working less than 35 hours a week and want to be working more, about 62% are limited by personal circumstances such as poor health or caregiving responsibilities. When this opportunity cost is quantified, McKinsey estimates that the potential exists to uplift GDP by up to 7.2% and add up to 8.7 billion in additional volunteer hours. Further, those who are participating in the workforce—independent of activity type—report better perceived health than those who are not. 18
Better Brain Health Can Mitigate the Economic Impacts of Demographic Aging
Better brain health facilitates prolonged workforce participation by maintaining cognitive abilities and physical health among aging individuals, boosting productivity and knowledge sharing while reducing healthcare costs linked to chronic diseases. Healthier aging populations contribute to economic growth through increased productivity, consumer spending, and reduced dependency ratios, alleviating strains on social welfare systems. By investing in initiatives supporting brain-healthy aging, societies can tap into the economic potential of older adults while mitigating challenges associated with an aging populace.13-16
Promoting Brain Health can Improve Brain Skills and Resilience
In addition to mitigating chronic conditions and supporting overall health, promoting brain health can help to reskill and prepare the current and future workforce.16,17 According to the World Economic Forum, the most important skills for workers today are skills centered in the brain: analytical thinking; creative thinking; resilience, flexibility, and agility; motivation and self-awareness; and curiosity and lifelong learning. As technological advancements such as Artificial Intelligence (AI) evolve, human creativity, insight, [Table 2] and contextual awareness are more important than ever before. 19
Scientific advances have demonstrated that through neuroplasticity, the brain can adapt, reorganize, and form new connections in response to learning, experiences, and environmental stimuli. By deciphering brain functions related to memory, attention, and emotional regulation, neuroscience offers insights crucial for developing strategies that optimize cognitive abilities. Techniques rooted in neuroplasticity, such as cognitive training exercises and neurofeedback, enable targeted enhancements in cognitive skills. Genetics and brain mapping reveal how genes influence brain structure and disorders. Artificial Intelligence and big data analyze neuroscientific data for diagnostics and personalized medicine. These ongoing advancements enhance healthcare, rehabilitation, skills development, and comprehension of human cognition and behavior.
All of this means that building the skills needed to meet the challenges of the new economy are intricately linked to improving our brain health. And, importantly, we can measure improvements in cognitive health and performance using hard science.
Real-World Application: Resources for Employers
The concept of brain capital has gained considerable attention across various global platforms and institutions. The OECD launched the Neuroscience-inspired Policy Initiative to promote and refine the concept of brain capital. Following the success of that initiative, the Brain Capital Alliance has now been formed as its multi-organizational extension. During the Science Summit of the 77th United Nations General Assembly, brain capital was featured as a fundamental framework. The Wharton School of Business recently launched a neuroscience initiative, and the Brookings Institution has published a report on the role of brain capital for democracy strengthening.
Still, real-world practice applications are needed. An alliance of private sector partners, the Business Collaborative for Brain Health, was recently convened by UsAgainstAlzheimer’s and partners to address this opportunity. The Collaborative aims to develop a hub of practical solutions to optimize cognitive health throughout the lifespan, with a specific focus on the opportunities for private sector organizations. Neuroscience-backed interventions will support business and community leaders in implementing effective strategies and deploying products that work. Positive outcomes include providing employers with better solutions to support the cognitive health and skills of their employees, identifying approaches that cultivate brain healthy communities and enhance workforce availability and diversity, and helping consumers be more informed about what products and solutions have evidence of effectiveness.
Utilizing established research, 20 the Collaborative is developing, in partnership with the Health Enhancement Research Organization (HERO), a Brain Health best practice score from existing practices from the HERO Scorecard 21 to help employers identify practices that optimize cognitive health. The tool will be validated to assess the relationship to key business objectives such as retention, engagement, diversity, cognitive health, and overall well-being of employees.
Recent advances in digital health technologies, for example the Brain Health Index developed by the Center for Brain Health at University of Texas Dallas, evaluate personalized brain fitness levels and optimize cognitive performance. 22 Other tools, such as the Brain Care Score developed by the McCance Center for Brain Health, provide evidence-based, pragmatic instruments to empower people with personalized information about how to reduce risk of cognitive decline. 23 The UsAgainstAlzheimer’s BrainGuide is a digital resource for those concerned about their own or a loved one’s memory loss. A recent study by HKS Inc., one of the world’s largest architecture firms, examined the role of place, process, and technology in creating a brain-healthy workplace and identified a set of recommendations that support peak performance. 24 Imaginator Academy, a project of Colorado University at Denver, is identifying brain health interventions that optimize creativity. All these tools offer some utility for employer-sponsored health plans and wellness programs.
It is imperative that we harness these tools, prioritize brain health, and invest in the development of additional practical resources for employers. We find ourselves amidst a transformative paradigm shift in our economy and the workforce that fuels it. The traditional view of labor as an expense has been utterly disrupted. Human capital is our most important asset and appreciates in value. Investing in and prioritizing what makes us human—our brains—is one of the most important things we can do to build an inclusive, resilient, thriving world.
Footnotes
Declaration of Conflicting Interests
The author(s) declared no potential conflicts of interest with respect to the research, authorship, and/or publication of this article.
Funding
The author(s) received no financial support for the research, authorship, and/or publication of this article.