The statistics don’t lie. More people are planning to work beyond what once was a traditional retirement age. The federal Bureau of Labor Statistics (BLS) has projected that the primary working-age group—those ages 25-54—will decline from 66.9 percent of the labor force in 2010 to 63.7 percent in 2020. Workers 55 and older are projected to go from 19.5 percent of the labor force to 25.2 percent during the same period.
The U.S. Census Bureau released an analysis in January pointing out that for the last 20 years, the labor force participation rate of people at least 65 years old has increased, and the increase is particularly evident over the last 10 years.
The Sloan Center on Aging and Work at Boston College looked at BLS and Census data and released a set of business strategies for the age-diverse workforce in March. Figures on the fact sheet show that 38.9 percent of people in the 55-and-older age category were still working in 2007. That percentage rose to 40.7 percent by 2012.
The various statistics may be mind-numbing, but the picture is clear: Employers need to be ready for older workers, and their presence means employers benefit from their knowledge and experience while the younger generation prepares to take its place in the higher echelons of the workplace.
Some attribute the graying of the workforce to the recent economic recession that depleted many workers’ retirement savings, making it necessary for them to work longer. Others say longer lifespans mean people are willing and able to work into old age. Whatever the reason, employers in an array of professions are likely to see an increase in the number older workers on the job.
Is there power in age?
The presence of so many older workers—and the near certainty that the trend will become more pronounced in coming years—has led employers to think about how to capitalize on the development. The U.S. Department of Health and Human Services even designated May as “Older Americans Month” and promoted an “Unleash the Power of Age” campaign.
Figuring out how to “unleash the power” of older workers is becoming a priority for many employers concerned about a “brain drain” as they lose older workers to retirement. The Sloan Center’s fact sheet has a few suggestions, which are detailed below.
1. Recognize the trend
“The proportion of older adults in the workforce has risen over the past five years and will continue to do so,” the Sloan Center’s fact sheet states. “Many firms regard the increased workforce longevity as an opportunity but have not yet implemented strategies to retain or attract older workers.”
The fact sheet includes information from a 2011 global survey of business executives that found 31 percent of firms expected to have a significantly higher proportion of workers 65 and older within the next five years. Seventy-one percent of those surveyed saw increased longevity of workers as an opportunity, while 43 percent considered it a risk. Many saw a graying workforce as having elements of both opportunity and risk.
Just because employers may be thinking about the implications of an older workforce doesn’t mean they are making adequate preparations. Twenty-nine percent of those surveyed said their organizations weren’t effective at adapting human resources strategies to older workers, and 26 percent said the same about how they’re able to transfer knowledge from retiring staff to younger workers.
2. Set priorities and develop strategies
The Sloan Center’s fact sheet states that many employers “recognize the importance of retaining their older employees and have begun the process of setting goals for age diversity and inclusion, including redefining the retirement age and offering age-specific benefits.”
The fact sheet says nearly all employers participating in a survey recognize the importance of retaining older employees. A 2011 Forbes global survey of executives of 321 large corporations found that 72 percent of those polled reported that they have diversity and inclusion programs focused on age. Fifty-nine percent of the employers surveyed said they consider generational differences and needs in their strategic thinking about benefits.
3. Take action
The Sloan Center fact sheet points out that many employers have age-diversity programs in place, and others report that steps are planned to encourage older workers to stay on the job. The steps to entice older workers to stay include offering:
- Flexible employment options.
- Education and development opportunities.
- Knowledge transfer programs.
Employers report that they are keeping older workers as part-time workers or consultants, enabling older workers to mentor younger workers, and using succession plans for critical positions.
Tammy Binford writes and edits news alerts and newsletter articles on labor and employment law topics for BLR web and print publications. In addition, she writes for HR Hero Line and Diversity Insight, two of the ezines and blogs found on HRHero.com.
It’s time for employers to stop discriminating against older workers. Older workers have maturity, knowledge and experience that should be valued by employers. I actually had an employment agency ask for my date of birth in order to submit my resume for a one year contract with a well known biotech company! I wish I had it on tape! Everyone is going to be older one day and employers need to change their strategy to not hire older workers because benefit costs increase too much. Recruiters/employees….remember one day, everyone will be older and you may be the next person experiencing discrimination for something you can not change…your age. It’s infuriating to see how older workers are being treated by employers.