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In the next several years employers will see a definitive upward shift in the age of available workers. The renowned baby boomers (born between 1946 and 1964), who were expected to leave the workforce starting in 2011, are reconsidering retiring at 65, and the pool of younger workers is predicted to shrink report the U.S. Bureau of Labor Statistics and AARP. Many older workers, because they need the money, want to be productive or useful, and want mental stimulation, plan to continue to work in positions that use their accumulated knowledge. Some see continuing in related fields; others envision entirely new positions that keep them learning and involved.
By 2010, the number of workers 55 and older will grow 4 percent, while workers between ages 25 and 54 will shrink 4 percent, predicts the U.S. Bureau of Labor Statistics in The labor force: study growth and changing composition by Howard N. Fullerton, Jr., and Mitra Toossi, www.bls.gov/emp/home.htm.
Staying Ahead of the Curve 2003: The AARP Working in Retirement Study explodes some of the myths your organization may be operating under. The nationwide telephone survey of 2,001 individuals between the ages of 50 and 70 years old employed on a full- or part-time basis found these individuals work not only for money but also for intangible benefits, such as enjoyment and a sense of purpose. For many (particularly baby boomers), juggling work and personal responsibilities is a pervasive feature of their lives.
Among other amenities, these workers want respect, training, benefits and job flexibility. Although optimistic about their own ability to find and retain a job, 67 percent have concerns that age discrimination remains a major barrier to their advancement and well-being in the workplace.
The AARP study reveals what changes may make your organization more appealing to older workers, a section of the workforce that will grow into 2050. The Executive Summary of the study (12-page pdf) or Full Report (150-page pdf) is available online at www.aarp.org/bestemployers.
We’ve adapted the questions that AARP poses to applicants for its annual Best Employers for People Over 50 awards to help you assess where your organization stands as a “best employer” and how to make your workplace more enticing for workers over 50.
AARP finds that an organization’s recruiting policies reflect its inclination to consider candidates of different age groups and backgrounds.
What variety of sources does your organization use to seek candidates for position openings:
Do your organization’s recruiting materials (print, video, artwork and graphics) fully reflect the diversity of the people you wish to recruit?
AARP’s research suggests that workplace culture is important to older workers. Factors such as a friendly work environment, respect from boss and coworkers, and training opportunities are all considered to be essential parts of an ideal job. By answering the following questions, assess how your organization’s culture stacks up.
According to AARP’s research, the majority of older workers believe that their best work years are ahead of them and feel that they still have a lot to accomplish, demonstrating that these workers value organizations that provide them with continued opportunities for career success. By answering the following questions, assess how your organization provides your employees with continued opportunities for career success.
AARP’s research indicates that the majority of older workers view benefits, such as health insurance coverage, retirement savings plans, adequate paid time off, flexible work schedules, and part-time work, as essential parts of their ideal job. By answering the following questions, assess the benefits your organization provides your employees.
Which of the following does your organization offer:
F PT Defined-benefit (except cash balance or other hybrid)?
F PT 401(k) or 403 (b) defined contribution (employees contribute funds; employers may or may not match)?
F PT Money-purchase defined contribution (fully employer-funded; employees do not contribute funds)?
F PT Cash-balance or other hybrid?
F PT Stock options, profit sharing or similar plan?
For each benefit offered to your organization’s part-time employees, what are the minimum hours per week an employee must work to be considered part-time and still qualify for the benefit?
Hrs._________ Defined-benefit (except cash balance or other hybrid)
Hrs._________ 401(k) or 403(b) defined contribution (employees contribute funds, employers may or may not match)
Hrs._________ Money-purchase defined contribution (entirely employer-funded; employees do not contribute funds)
Hrs._________ Cash-balance or other hybrid
Hrs._________ Stock options, profit sharing or similar plan
AARP’s research indicates that the majority of today’s older workers plan to work in their so-called retirement years. These findings suggest that these workers would value organizations that demonstrate commitment to their retirees* through such actions as providing them with work opportunities, benefits, and regular contact. [*Retirees are defined as former employees of your organization who are currently receiving payments from your organization’s retirement plan and/or social security payments.] By answering the following questions, assess your organization’s commitment to its retirees.
Does your organization provide:
For each of the identified categories, enter the number of employees in each of the specified age ranges who are employed by your organization.
Under 40 years old
40–49 years old
50–59 years old
60–64 years old
65 years and over
Total Employees
Hourly Nonmanagement | Salaried Nonmanagement | Management or Supervisory Executive | TOTAL EMPLOYEES |
(An executive is defined as a person in a top position of a strategic or functional area(s); functional responsibility overlays entire organization. This executive advises and counsels top decision-makers on organizational initiatives and represents a body of knowledge that substantially impacts and is essential to making sound decisions for the organization.)
Wise risk management practice recommends your organization begin making changes in policies and procedures now to accommodate the changing demographics of future job candidates or you may lose out to more worker-friendly environments as you look to fill critical positions in your organizations over the next decade and beyond. Your answers to the previous questions provide a foundation for planning to enhance your organization’s current practices and phase in additional policies and procedures over the next six years. The beauty of the process is that these changes will make your workplace more attractive to employees of all ages, while making your organization competitive to mature workers who will make up more of the workforce until the mid-21st century.
[Community Risk Management & Insurance, January 2004, print version]
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