Older Workers Please Apply

Jill has been in the workforce on and off for almost 30 years, but although she is approaching 65, she finds it impossible to think about fully retiring.

"I can't even imagine it," she said. "I look at what my retired neighbors do — gardening and reading. I'd be bored stiff! I really like my job. I think I'd like to work part time until I'm at least 70."

In fact, Jill's attitude represents a sea change in the approach many seniors are taking towards "retirement" as well as a shift in the way a lot of companies are viewing employees who are 50 years or older.

"It really comes down to a numbers game that's difficult to ignore," said Peter G. Burki, CEO and co-founder of LifeCare® Inc., a Westport, Connecticut-based national employee benefits organization. "Older workers now represent a huge reservoir of human capital that companies need. The pool of younger replacement workers just isn't there the way it used to be."

Today, almost half of the workforce is 40 years or older. In another three years, almost one in three workers will be 50 or older. Meanwhile, according to the Employment Policy Foundation, America will experience a labor gap of 4.8 million workers within ten years. We'll see a shortage of 20 million within 20 years, and almost 36 million within 30 years.

While statistical trends are putting pressure on companies, outdated stereotypes are also breaking down and older workers are being seen in a new light.

"Older workers often know what needs to get done and are eager to roll up their sleeves whether it's on a part time, flex time or full time basis," Burki said. "Retaining them also allows a company to maintain their intellectual capital and their critical relationships with important vendors."

In fact, some large companies such as Home Depot, Borders bookstores, Wal-Mart, MetLife, Pitney Bowes, Principal Financial and Walgreens are competing to recruit older workers with offers of health benefits, training and flexible work schedules. Other companies are tapping into retirees as a contingent workforce because of their experience and knowledge. Most older workers remain in sales, office work or management.

Conventional wisdom used to hold that employees over 50 cost companies more in terms of medical problems and missed workdays. But that may not be the case. In fact costs associated with older employees may be about even with those of younger workers.

Workers over 50 make up for additional health costs by being more reliable and often more productive, experts say. They also tend to have fewer to no dependent-related health or child care costs. And they require lower training and recruitment costs.

Companies are also beginning to value 50+ workers for their loyalty and the significant impact they can have in reducing a company's turnover. In an AARP survey of 400 HR professionals, 77% said that older workers have a higher level of commitment than younger workers and 68% said it cost less or the same to train older workers compared to younger workers.

"A lot of companies have gotten burned by younger workers who want to move on every few months because they think that that's how the world works," said Gail Jern, Westaff Human Resources Manager. "More mature workers can bring stability and an appreciation for their work and their company. That's what companies are looking for."

Retirement-age employees can help diversify an organization and mentor younger workers.

"Mentoring can sometimes come better from an older coworker rather than a manager," she added. "That ability can boost morale and lift the overall well-being of employees."

These days, age 65 is often the launching point for a whole new active phase of life. For many who are retirement age, the prospect of continuing to work is as appealing to them as it is to their companies, offering more economic security and health benefits. More than that, staying involved in enjoyable work keeps one more physically and mentally fit. Everyone can come out a winner.

"More and more, America will come to believe that there is no fixed age for retirement…and that age itself should not disqualify anyone from being hired," said William Novelli, CEO of AARP, the advocacy group for older people, in a recent speech. "Wasting talent is as foolish — and as self-defeating — as burning money."

Sources:

Peter Burki is CEO of LifeCare ® Inc., a Westport, Connecticut-based national employee benefits organization that provides Life Event Management ® Services, including Successful Aging sm Solutions, health and wellness services, legal/financial assistance, and other supportive workplace services. www.lifecare.com

Gail Jern, Westaff Human Resources Manager