Commentary: Myths and Prospects for Older Workers

James E. Challenger, president of Challenger, Gray & Christmas, Inc, debunks the myth that "[w]orkers over 50 who have lost their jobs will have a very difficult time obtaining another job." On the contrary, he says, older workers "are winning new jobs in approximately the same length of time as their younger counterparts."

Among other things, he points out that many employers are "placing a premium on experience to help them meet their increasing worldwide competition." In addition, a new study by Challenger, Gray & Christmas "shatters the myth that older workers are particularly vulnerable in this economic downturn. The fact is that pared-down companies may increasingly rely on seasoned veterans to get them through the downturn."

Challenger advices older workers looking for work to be accommodating, emphasize past examples of loyalty, emphasize relevant experience, demonstrate flexibility and creativity, look and act young, and stay current and embrace technology. In addition, he cites several industries as looking particularly favorably on older workers: healthcare, teaching, consulting, nonprofit Organizations, customer service/customer relations, and small Business.

Sources: Challenger, Gray & Christmas "Older Workers Still In Demand!" (September 10, 2008), "Advice for Job-Seeking Older Workers" (September 10, 2008); California Job Journal "Older Workers Find Favor in the Current Job Market" (September 7, 2008)

New Zealand: Guidelines Issued for Retaining and Recruiting Mature Employees

New best practice guidelines to help employers look at innovative ways of retaining and recruiting mature employees have been released in New Zealand. The guide provides information both on older worker’s rights and responsibilities and tips for employers and was produced by a group comprising the Human Rights Commission, the Retirement Commission, the EEO Trust, Business New Zealand, the CTU and the Canterbury Employers’ Chamber of Commerce. The guide--"Valuing Experience: a practical guide to recruiting and retaining older workers"--is available online and as a downloadable PDF.

According to Ruth Dyson, Minister for Social Development and Employment:

"The guidelines are part of The Tapping into the Talent of Older Workers project which builds on recent important steps, in particular the legislation to overcome age discrimination which has been important in shifting employer attitudes.

"Recent research by Victoria University's Institute of Policy Studies has highlighted changing employers' attitudes towards older workers. Many employers recognise that older workers are loyal, reliable, committed and have more experience. However, some employers also believed inaccurate stereotypes such as thinking that older employees are unable to adapt to new technologies. We need to do more to challenge these misconceptions and combat age discrimination."

Sources: Minister for Social Development and Employment News Release (September 3, 2008); New Zealand Council of Trade Unions Press Release (September 3, 2008)

France: Prejudice against Older Workers May Create Business Opportunities

According to a brief note in The Economist, a French employment agency (Experconnect) is attempting to take advantage of the French youth culture to place place retired people in work opportunities.

France has a poor record when it comes to keeping older people in the workforce. The retirement age is 60, not 65 as in most developed countries. In 2005 only 37.8% of people aged 55-64 had jobs, versus 56.8% in Britain and 44.9% in Germany. The main reason is that in the 1980s, when there was high unemployment, the government promoted early retirement. That entrenched the idea that older workers were less productive, says Caroline Young, Experconnect’s founder.

Unlike most employment agencies, however, Experconnect keeps its workers on its own books, so they can carry on drawing their pensions. Accordingly, they tend to work part-time on one-off projects.

Source: The Economist "Jobs for the old " (July 17, 2008)

GAO Reports on How One-Stop Career Centers or Linking Employers and Older Workers

The U.S. Government Accountability Office (GAO) has issued a report looking at the U.S. Department of Labor's (DOL's) actions to help one-stop career centers link employers and older workers and at the actions of the centers to help employers hire and retain older workers. According to "Most One-Stop Career Centers Are Taking Multiple Actions to Link Employers and Older Workers", most one-stops took multiple actions to link employers and older workers; one-stop officials identified some actions as most effective, such as training staff to assist older workers, and often used multifaceted approaches.

The GAO notes that several factors, such at the local economy and how workers' skills match with employers needs, might affect what actions one-stops take to serve older workers and that one factor--the performance measure tracking participants' earnings--might create disincentives for serving older workers who are more likely to work part-time, which provides lower wages. Accordingly, GAO recommends that DOL assess the potential for such disincentives.

Source: U.S. Government Accountability Office Report Summary of GAO-08-548 (April 21, 2008)

Survey: Best Employers for Job Seekers Over 40

Yale-New Haven Hospital, The Hartford, Princeton University, PNC Bank, Southeast Corporate FCU, Compuware, and UGA College of Agricultural and Environmental Sciences were named as the Best Employers in the US for Job Seekers Over 40 in the first survey conducted by Jobs4.0. Employers were judged on over 20 separate criteria, including rates of new hires of workers over 40, recruitment policies and goals, health benefits and job security for older workers, flexible work options for older workers and more.

According to Jobs4.0 founder and CEO Steven J. Greenberg, "Older job seekers desperately want to find employers that will not view their age and experience as something to be avoided. Ageism in hiring remains prevalent in too many places, and this survey will help point older job seekers--not only retiring baby boomers, but all workers 40 and above--in the right direction."

Source: Jobs4.0 Press Release (March 11, 2008)

CareerBuilder Launches Job Search Site for Experienced and Retired Workers

CareerBuilder.com has launched PrimeCB.com, a job search site focused on connecting experienced and retired workers with potential employers. This follows a CareerBuilder.com survey showing that 22% of employers say given the shortage of qualified workers, they plan to rehire retirees from other companies in 2008 and that 14% of employers plan to provide incentives for older workers to stay with the company longer.

"According to AARP, nearly one-in-three U.S. workers will be over 50 by the year 2012," said Rosemary Haefner, Vice President of Human Resources at CareerBuilder.com. "While some mature workers are expressing an interest in postponing retirement, there’s still a large number of this critical segment of workers who will be leaving their current jobs in the next decade. The challenge now is to make sure we’re connecting those retirees who want to continue working with the employers who want to preserve the value of having these experienced and skilled workers at their companies."

Source: CareerBuilder.com Press Release (February 27, 2008)

U.S. Government Study Shows Younger Workers Less Inclined to Federal Employment

The U.S. Merit Systems Protection Board (MSPB) has issued the results of a study of Federal entry-level new hires in professional and administrative occupations to identify how the U.S. Government can improve its entry-level hiring. According to the report--"Attracting the Next Generation: A Look at Federal Entry-Level New Hires, the Federal Government offers what many new hires—-regardless of age or generation—-want in an employer, but noted that numerous studies indicate that the Government is not an attractive employer to younger, less experienced applicants.

One surprising finding was that despite the popular perception that an entry-level new hire is a young, professionally inexperienced, recent college graduate, entry-level new hires are much more diverse in terms of age, experience and background. Specifically, data showed that the average age of the new hire in fiscal year 2005 was 33 years old, with new hires ranging in age from 21 to 84 years old. "Even more surprising, almost 20 percent reported more than 20 years of work experience before joining the Government, and 17 percent had 11 to 20 years."

In looking specifically to the attraction of Federal employment to older workers, the study reports:

While some may be starting new careers, it is also apparent that many new hires are wrapping up their current careers and hoping to supplement their private retirement with Federal benefits. The Government’s retirement package includes a fixed pension based on earnings and a tax-deferred retirement savings and investment plan (Thrift Savings Plan or TSP) similar to 401(k) plans offered in the private sector.

In addition, retirees with 5 years of continuous enrollment immediately before their retirement continue to receive the full subsidy in the Employees Health Benefits Program. These benefits are attractive to those nearing retirement or who have already retired from another sector and want to supplement their earnings, as demonstrated through some participants’ narrative comments:

Source: Merit Systems Protection Board Press Release (February 8, 2008)

Additional Source: Government Executive "Generation Gap" (February 21, 2008)

"Employ the Older Workers Job Fair Series" To Be Held during Autumn

A partnership between The Employment Guide and AARP Foundation will hold the first of what is to an annual "Employ the Older Workers Job Fair Series" from from August 22 to October 19. The job fair series is a national effort, reaching more than 40 cities, to bring together older workers and 50+-friendly employers, and is being held in conjunction with the U.S. Department of Labor’s National Employ Older Workers Week, Sept. 23-29, 2007.

Source: Employment Guide and AARP Foundation News Release (August 21, 2007)

Australia: ACT Launches Project To Encourage Businesses To Hire Older Workers

Australian Capital Territory (ACT) Chief Minister Jon Stanhope and Chris Peters of the ACT and Region Chamber of Commerce and Industry have launched a "Silver Lining" project to educate employers about the benefits of hiring and retaining seniors in their businesses. In particular, with the baby boomer generation nearing retirement age and the generations coming after being considerably smaller, business should not shun seniors from the workforce and they should be educated that common myths about older works are untrue.

Mr Stanhope said:

“Research shows that workers aged 55 and over are the most motivated and engaged. Older workers are known for their reliability and stability, with research showing that they stay in a job 2.4 times longer than a younger person.

“Given the high cost of staff turnover this level of stability alone represents a great opportunity for business.”

Source: Australian Capital Territory Media Release (May 8, 2007)

Survey: Few Employers Are Taking Action to Recruit and Retain Older Workers; Manpower Offers Up Recommendations

According to a survey conducted for Manpower Inc. of more than 28,000 employers across 25 countries and territories, only 14% of employers worldwide have strategies in place to recruit older workers and only 21% have implemented retention strategies to keep them participating in the workforce.

The published results of the survey-- Older Worker Recruiting & Retention Survey--break down recruitment and retention by country and industry. Among different countries, employers in Japan and Singapore were far ahead of their international counterparts with 83% and 53% of employers surveyed, respectively, working proactively to retain their older employees; at the other extreme, in Italy and Spain, only 6% of employers had such strategies in place.

"Many employers have not yet recognized the need to forecast the percentage of their workforce that is set to retire in the next five to 10 years and planned ahead to stem the potential loss of productivity and intellectual capital that will occur when those people walk out the door," said Jeffrey A. Joerres, Chairman and CEO of Manpower Inc. "A surprisingly large number of organizations are still viewing upcoming retirements as cost- savings opportunities, but this is a dangerous and shortsighted view, as older adults will be relied upon as one of the most important sources of talent for the future workforce."

Simultaneously with the survey results, Manpower issued a white paper--"The New Agenda for an Older Workforce"--which explores the increasing reality of the global aging workforce, the resulting gaps in workforce supply, and the demand that this is creating. Among other things, the white paper proposes strategies that companies can adopt to circumvent these talent challenges; recommendations on how employers can help older employees extend their careers should they choose to do so; and suggestions for the role that governments can play to help solve the older worker conundrum.

Source: Manpower Inc. News Release (April 23, 2007)

Europe: Mature@eu Recuriting Project Opens Website

The European Union Leonardo Da Vinci project website mature@eu is up and running. The project is coordinated by the Vienna based ZSI (Center for Social Innovation) and aims at supporting HR Managers to recruit and retain older employees through developing effective age neutral personnel policies.

The website holds a lot of useful information and it will be constantly updated as the project "matures". The link-list refers to a broad range of organisations in several countries, who have been engaged in supporting older employees and have valuable information and examples of good practice. In addition, a toolbox will be available, which will facilitate HR and employee representatives to promote a change in attitudes and practice towards the recruitment of older professionals and the perception of age stereotypes.

Source: Union Network Internationaal News Release (March 13, 2007)

Recruiting: Web Sites for Attracting Baby Boomers

A posting on the ere.net's Inside Recruiting blog discusses how some niche job boards and staffing agencies are helping a growing number of companies in trying to penetrate the boomer demographic to fill key staffing shortages and maintain a competitive edge. These incclude:

• The Refirement Group, which works to help redefine the attitudes and expectations of the boomer workforce through workshops and consulting.
• Continuing Careers.com, a niche job board, which posts jobs and directs applicant to the company's website.
• The Boomer Group, a staffing company that matches boomers looking for either part-time or full-time work with employers who need experienced help.

Source: Inside Recruiting "Catering to the Boomer Crowd" (January 26, 2007)

United Kingdom: Companies Urged To Recruit Older Workers

Taleo, a provider of on demand talent management solutions, and The Age and Employment Network (TAEN) have jointly published a white paper--"Tapping into the Older Worker Talent Pool”--that highlights the opportunity for companies to address the looming skills crisis by recruiting older workers, and provides step by step advice on how companies can execute this strategy.

Despite the the demographic trends in the UK with an ageing workforce that is causing a general shortage of skills, many organisations retain significant biases and misconceptions about recruiting older workers. According to the white paper, "practical recruitment strategies that take advantage of the growing talent pool of older workers will therefore be increasingly critical in creating a competitive workforce in the UK." Specifiically, TAEN and Taleo Research recommend that employers:

• Consider where you are advertising your job opportunities
• Word your job opportunities carefully
• Capture candidate data on compliant, electronic application forms
• Drive the selection process based on skills
• Consider re-skilling or up-skilling new or existing employees

Source: Taleo Press Release (November 30, 2006)

Online Job Sites for Older Workers

Diane E. Lewis, writing for The Boston Globe, discusses new job sites for "tapping into the graying segment of the labor market that's not quite ready to retire." Featuring an interview with the owner of RetirementJobs.com, she also identifies similar sites for helping connect older workers and employers that may want to hire them.

[RetirementJobs.com] certifies employers as ``age friendly" before they can post job vacancies by requiring firms to fill out a survey of a dozen questions about their recruiting practices, training, benefits, pay, and corporate culture. The human resource departments of companies whose answers indicate a genuine interest in hiring older workers must participate in another round of interviews, conducted by RetirementJobs.com's 12-member staff, to establish that their firms offer benefits and flexible scheduling options that appeal to older workers.

Source: The Boston Globe "RetirementJobs.com website caters to those who aren't ready to retire" (September 11, 2006)