Older Employees Are Solid Investments
A report released late last year challenged myths about workers 50 and older. It showed that those employees often have productive advantages that make them far more cost-effective than is generally believed.
The report, “The Business Case for Workers Age 50+,” prepared by global professional services firm Towers Perrin for AARP, noted that there is a common business perception that 50+ workers cost more than younger workers.
The AARP/Towers Perrin analysis said that the extra per-employee total compensation cost of retaining or attracting more 50+ workers ranges from negligible to three percent in key industries. At the same time, the research found that older workers are more motivated to exceed expectations on the job than younger workers.
“These findings are especially important because the workforce is aging, labor shortages are projected in a number of sectors, and many employees intend to continue to work beyond the retirement age,” said AARP CEO Bill Novelli.
The AARP study comes at a time when projections show that by 2012, nearly 20 percent of the workforce will be age 55 or older. This pattern is expected to continue well into the future
“The aging of the population may put employers in a tight situation,” said Alicia Munnell, director, Center for Retirement Research at Boston College, in responding to the study.
“They will no longer be able to rely on a rapidly growing group of younger workers in the future. Increased employment of older workers seems like a natural solution, but employers will have to change their hiring and retention policies if they want to attract these highly productive older individuals.”
What You Can Do
The coming years suggest a scarcity of skilled employees. If the predictions hold true, small-business owners are likely to be scrambling for top-notch talent before the decade is done. Here’s what you can do to attract and retain older workers.
Develop company policies that encourage older workers to stay on the job. Job sharing, flex schedules, part-time positions and mentoring responsibilities could appeal to near-retirement workers.
Older, experienced employees play an essential role in transferring knowledge and skills to younger employees. One solution is to rehire retirees on a temporary basis to act as trainers for younger workers.
An AARP “Working In Retirement Survey” shows that 50 percent of working retirees say that their current work is entirely or fairly different from the job they had before they retired. So when you go searching for older workers, look outside as well as inside your industry.
For more ideas, take a look at the free online Success Skills Seminar “The Looming Labor Crisis.” It’s available from the National Association for the Self-Employed (NASE). Topics cover:
The race for workers
Boomers to the rescue
Senior workers on the job
Company policies must keep pace
Training for all ages
Finding the workers you need
