Survey: Employers Looking to Retain and Hire Older Workers

Careerbuilder.com's 2010 Job Forecast indicates that there will an uptick in employer hiring in 2010. Among other things, it reports that companies understand the intellectual capital mature workers bring to their organization and 27% say they are open to retaining their workers who are approaching retirement. In addition, 16% say they are likely to rehire retirees from other companies in 2010, and 10% are likely to provide incentives for workers at or approaching retirement age to stay on with the company longer.

Source: Careerbuilder.com Press Release (December 29, 2009)

Canada: Conference Board Report Suggests Employers Not Making Efforts To Retain Mature Workers

The Conference Board of Canada has released a research report suggesting that while Canadian employers are worried about a rapidly aging workforce, they are not putting their money--or their human resources policies--into innovative ways to retain them. According to "Harnessing the Power: Recruiting, Engaging, and Retaining Mature Workers," authored by Karla Thorpe, most "organizations have not yet targeted specific human resources programs and policies to their mature workers. This is limiting their ability to attract, retain, and engage this increasingly important segment." Specifically, only 11% actively try to recruit mature workers with measures such as rehiring former employees and offering flexible hours or phased retirement.

On the hiring side, however, the Conference Board found employers to be a lot more active with regard to enticing mature workers back into the workforce. For organiazations that specifically recruit older workers, 73% report success in hiring them; for organizations taking a more general approach, only 23% report success attracting mature workers.

The report concludes that employers will need to invest in a better understanding of the motivations, needs, and preferences of this cohort in order to ensure organizational success as the post–war baby boom ages. It also singled out some employers that have responded to an aging workforce with innovative solutions.

Sources: Conference Board Executive Summary (October 2008); Canwest News Service "Mature workers need wooing: Conference Board" (October 17, 2008)

Research: Scope and Impact of Unemployment on Older Americans

A report by Heldrich Center researchers Carl Van Horn, Ph.D. and Maria Heidkamp looking at unemployed older workers finds that older unemployed workers face more significant challenges than their younger jobseeking counterparts. In particular, older unemployed workers take longer to find new jobs, and when they do, it is often in a different occupation, a different industry, and at much lower earnings than in their previous job.

Published as an issue brief by the Sloan Center on Aging & Work, "Older and Out of Work – Trends in Older Worker Displacement" reports that a growing proportion of older adults do not have the option of retiring from work, due in part to rising prices and lack of sufficient savings. Thus, Heidkamp says: "It is time to ask how employment and training programs can be more effective in bringing older unemployed workers back into workplaces where their talents are still needed and valued."

With talent shortages approaching as the Baby Boomer generation reaches retirement age, employers need to proactively ensure that they provide their older workers with a supportive work environment sensitive to their needs. For older workers, this often means providing greater workplace flexibility and benefits packages.

Source: Sloan Center on Aging & Work Issue Brief No. 16 (September 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)

Survey: More Companies Are Considering Implementing Phased Retirement Programs

A Hewitt Associates survey of more than 140 mid-size and large employers has found that 55% have already evaluated the impact that potential retirements could have on their organization and 61% have developed or will develop special programs to retain targeted, near-retirement employees. Even though only 21% believe that phased retirement is critical to their company's human resources strategy today, 61% believe so when looking ahead 5 years.

"With the rising tide of boomer retirees, employers will be losing key talent at a time when attracting and retaining skilled workers will be more important than ever," explained Allen Steinberg, a principal at Hewitt Associates. "At the same time, rising medical costs, lengthening life spans and the declining prevalence of traditional pension and retiree medical benefits mean that employees will either have to work longer, save more or live with significantly less than they are accustomed to. As these trends converge, we believe phased retirement programs will continue to become more attractive options for both employers and employees—they provide employers with new ways to retain critical talent and, at the same time, help employees meet their needs."

In addition, the survey finds that 72% of employers said that retaining the experience, knowledge and skills of older workers was the most important benefit to them in offering phased retirement programs. However, 65% said that offering part-time employment (on a year-round basis) represented one of the most effective ways of retaining near-retirement workers.

In addition to focusing on retention, 45% of the employers indicated they currently have policies in place that limit the ability to rehire retirees, but 46 % said they were likely to review their rehiring policies in the future.

Source: Hewitt Associates News Release (July 30, 2008)

Japan: Retention of Older Workers Becoming More Difficult with Changing Evaluation Systems

A Japan government white paper has been released finding increased unhappiness among Japanese workers who have complaints over pay, lack of vacations and a decline in morale. Among other things, the paper also reports that retaining older staff has been a challenge for companies trying to avert a labor crunch.

According to a Reuters story on the paper, "older workers were switching jobs because they failed to get along with colleagues or were unhappy with how they were being evaluated at companies using performance-based management."

Under Japan's traditional lifetime employment system, employees were guaranteed promotions and pay increases as they grew older, regardless of performance.

"For an effective performance-based system, efforts are needed to improve the implementation of the wage system, such as making clear the basis for evaluation and providing detailed explanations for the assessments," the white paper said.

Source: Reuters "Japanese workers more unhappy, government report says" (July 22, 2008)

Manpower Survey of Talent Shortages, Whitepaper Encourage Retention of Older Workers

Manpower Inc.'s third annual talent shortage survey reports that 31% of employers worldwide are finding it more difficult to fill jobs, with skilled manual trades, sales representatives, and technical workers in the areas of production/operations, engineering and maintenance being the hardest to find. Simultaneously, Manpower has updated its whitepaper on the talent crunch, highlighting the growing talent shortages around the world and what businesses, governments and individuals should be doing to adapt their human resource strategies, and encouraging employers, among other things, to take strategic measures to encourage older workers to stay in the workforce must be put in place.

According to the whitepaper--"Confronting the Talent Crunch: 2008"--"employers can increase their overall pool of available
talent by finding innovative ways to prolong an individual’s active working life." Employers should not look at upcoming retirements as cost-saving opportunities, but need to encourage older individuals to stay on. This may involve redesigning jobs, honing attraction and retention policies, maintaining the loyalty of former employees, and fostering inclusivity.

Source: Manpower, Inc. Press Release (April 22, 2008)

Canada: Survey Suggests Health Care Benefits Are Leading Enticement for Older Workers

According to a recent poll of Canadians over the age of 55, health assurances are the best thing an employer can offer older workers to keep them in the workplace. Specifically, Ipsos Reid reports that in a poll it conducted on behalf of Royal Bank of Canada, 60% of those surveyed said that extended health care benefits are the most important factor (top three mentions) in deciding to stay in the workforce. Trailing health care were flexible work hours (47%), having a guaranteed salary (34%), and phasing in the retirement process (24%).

With respect to flexible hours, the general consensus of those surveyed was a workweek running from Tuesday to Thursday, working nine to noon each day. In addition, workers would want an average of 6.4 weeks of vacation per year.

The survey also found that over 54% say they plan on working with their current employer past the age of 65, and, of those, 26% plan on working full-time for as long as possible, while another 36% would like to work full-time for a few years, before scaling back to part-time work.

Source: Ipsos Press Release (April 15, 2008)

Successful Strategies for Retaining Older Workers: Urban Institute Paper

The Urban Institute has published a paper outlining successful strategies employers can use to do more to attract and retain older workers, many of whom are highly experienced, knowledgeable. According to the paper--"Current Strategies to Employ and Retain Older Workers" by Lauren Eyster, Richard W. Johnson, and Eric Toder--successful approaches include offering formal and informal phased retirement options and creating flexible work arrangements, such as part-time work, flexible schedules, job sharing, telework arrangements, and snowbird programs.

In addition the authors of this report, commissioned by the U.S. Department of Labor's Employment and Training Administration to support the work of the Taskforce on the Aging of the American Workforce, point out that federal, state, and local governments, as well as nonprofit organizations and post-secondary educational institutions, help older workers find employment and secure job training and educate employers about the value of older workers.

Source: Urban Institute Research Summary (March 7, 2008)

United Kingdom: Employers Need To Be Much More Focused on Rewards Needed To Incent Older Workers

Employers that are addressing the challenges presented by an ageing workforce to recruit, retain, and engage talent are acting mostly on an ad hoc basis, according to a report on employer incentives for older workers issued by the Chartered Institute of Personnel and Development (CIPD), based on research carried out on behalf of the CIPD by Cranfield School of Management. The CIPD Research Insight "Managing an ageing workforce: The role of total reward" shows that a more holistic approach to pay and reward is necessary--"organisations need to look across their financial and non-financial reward offerings to consider whether they are attractive to older workers."

What is lacking is a systematic and integrated approach to reward that examines whether the pay and the financial and non-financial benefits are appealing to all individuals, irrespective of their age, race, gender, etc.

According to Charles Cotton, CIPD Reward and Employment Conditions Adviser, employers "need to take the opportunity to examine whether how they reward their employees is appealing to older workers, as well as other groups.” In addition, the research suggests that employers need to make sure not to neglect the training and development needs of older workers. Dr Emma Parry, Research Fellow at Cranfield School of Management and author of the research, suggests that as employees approach retirement age, they have different needs and says that the "total rewards package offered to employees should be designed in such a way as to accommodate these differing needs so that workers of all ages are motivated to stay with the organisation.”

Source: Chartered Institute of Personnel and Development Press Release (January 31, 2008)

Prolonging the Careers of OR Nurses as Strategy To Ease Nursing Shortage

Writing for Nurse.com, Scott Williams writes about searches for ways to lessen the burdens and lengthen the careers of perioperative and other nurses as one strategy for minimizing the impact of the nursing shortage. He quotes Patricia C. Seifert, RN, MSN, CNOR, CRNFA, education coordinator for the cardiovascular OR at Inova Heart and Vascular Institute in Falls Church, Va., as saying "We can’t afford to have anyone retire. . . . But at the same time, you can’t work people to death.”

Seifert, who has prepared a paper for the Association of periOperative Registered Nurses (AORN) 55th Congress, suggests that hospitals that want to keep older perioperative nurses on the job need to look at ways to make their jobs physically easier and less intrusive on their personal lives, such as by finding ways for them to draw on their knowledge and experience, rather than their physical abilities. Even physical demands can be attenuated by, for example, reducing the amount of time a nurse is forced to stand or by reducing the weight of surgical instruments.

Williams also reports on other initiatives. One, a 2006 report--"Wisdom at Work: The Importance of the Older and Experienced Nurse in the Workplace"--sponsored by the Robert Wood Johnson Foundation, which advocated flexible hours, increased benefits, newly created professional roles, better-designed hospital equipment and buildings, and an atmosphere of respect for nurses as all things that could help retain nurses longer. Another is a one-day conference titled “Coming of Age: Innovations to Support the Aging Nurse”, that was spearheaded by Ed Coakley, RN, MSN, MA, MEd, director emeritus at Massachusetts General Hospital in Boston, which resulted from a study in which older nurses said they hoped to work “until their backs gave out or their knees gave out or as long as they were able to physically work,” Coakley says.

Source: Nurse.com "Bright Ideas for Retaining Aging OR Nurses" (January 30, 2008)

Additional Resources: Hodes Research "The 2006
Aging Nursing Workforce Survey"; Talent Matters "Workforce Planning for Health Care" (January/February 2008)

Canada: Study Presents Value of Partnership between Small Business and Older Workers

According to a study conducted by Canadian Federation of Independent Business (CFIB), small business and older workers form a valuable partnership in dealing with the skills and labour shortage in Manitoba. CFIB reports that the study--"Small Business & Older Workers--shows that almost half of small businesses employ at least one older worker over the age of 60 and are actively taking steps to retain them.

The steps taken by small business to retain older workers include allowing greater flexibility with hours, reducing the physical demands of the job, offering part-time or job sharing options, and allowing unpaid time-off for activities/volunteering. The report's conclusion states:

Concern over the shortage of qualified labour among small business owners in Western Canada will likely continue for many years. While there is no silver bullet solution to this challenge, one solution is to improve the participation rate of older workers, to encourage older workers who have already left the workforce to return and to maximize the contribution of older workers in the workforce from a small business perspective.

Source: Canadian Federation of Independent Business
Media Release (December 6, 2007)

Australia: Employee Engagement the Key To Keeping Mature Workers Active in Workplace

According to research from the Voice Project at the Department of Psychology at Macquarie University, higher levels of engagement may lead to increased participation rates by mature-aged workers, as engagement has been shown to be associated with positive organizational outcomes such as reduced absenteeism, higher productivity, and lower turnover rates. After surveying workers in age brackets 20-30, 30-40, 40-50, 50-60 and 60 plus, Nick Vrisakis from Voice Project said researchers found there were some significant differences. While younger workers valued career opportunities, rewards and recognition, for older workers wellness was the strongest driver of engagement over and above salary and seniority.

"These results suggest that older workers are looking for less stress in their working lives and that this may be related to the nature of the role rather than the number of hours worked. Older employees may be happy to work full-time hours if it means they can be exposed to less stress or at least maintain a sense of wellbeing. If older workers could wind down whilst continuing to work it may be that many would continue to work full-time."

In addition, the research showed that overall older workers were more satisfied, committed and had a stronger intention to stay with their organizations. As Vrisakis pointed out, this is good news for employers who are seeking to attract or retain mature-aged workers and provides incentive for other employers to do so.

Source: Macquarie University Press Release (November 14, 2007