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On the Job -- Again
The struggling economy is driving older workers to delay retirement or return to the workforce, a trend with significant implications for HR. A recent AARP survey found that more than one-quarter (27 percent) of workers 45 and older were postponing retirement and two-thirds reported having more difficulty paying for essentials such as food, gas and medicine. The survey was released in May -- before the economy turned from troubled to terrible. Clearly, the financial crisis that has escalated since then is accelerating a trend that has been developing over the last decade. Recent data from the U.S. Bureau of Labor Statistics show that, from 1995 to 2007, the number of older workers on full-time schedules nearly doubled, while the number of those working part-time increased 19 percent. Recent newspaper and media accounts from around the country feature older workers describing how devastating hits to their 401(k) accounts, rising prices and uncertainty about the future are keeping them on the job or pushing them out of retirement. At an AARP job fair in Washington this fall, more than 2,000 older workers showed up -- many more than were expected. "With seasoned workers, I don't think we've seen close to the fallout yet," says Roberta Chinsky Matuson, president of Human Resources Solutions in Northampton, Mass. "We're definitely seeing a delay in retirement for many, and some people already retired are at least considering dipping their toe back in the water. "I think for HR there are a number of issues associated with having a lot more mature workers on the job than ever before."
Through the Ages For instance, HR needs to deal with issues related to an intergenerational workforce, Matuson says, such as ways to best communicate with workers of differing generations; blending different work styles and approaches; and training managers to work well with employees who may be significantly younger -- or older -- than themselves. "It really comes down to education and getting to know where individual workers are coming from," Matuson says. "Gen Yers have grown up with computers in their hands and they're text messaging to the person in the cubicle next to them. A more veteran worker might say, 'For goodness sake, get up and come over and talk to me.' " Yet, amid the challenges, Matuson sees plenty of opportunities for organizations. For one, the influx of older workers will deepen the talent pool, adding more skilled, experienced job candidates. Yet, HR should be sensitive to this older audience in recruiting efforts. "Make sure your Web site doesn't look like a Gap ad," Matuson says. "You don't want a prospect to look at that and think, 'none of these people look like me -- I'll never fit in there.'" HR also needs to be well versed in issues regarding age discrimination and make sure those involved with hiring and management know the law. "An HR recruiter or hiring manager has to afford an older worker every opportunity that a younger one would have," says Barbara Poole, president and founder of Employaid, an online career-advisory firm. A Buyer's Market Poole says the tough job market could prove a boon for smaller companies who now may be able to land the talent that may have gone to more traditional "legacy companies" in the past -- or gone into retirement. "This is really a buyer's market for small companies," Poole says. "These companies are going to have the opportunity to hire older workers that can provide stability and bring experience and judgment to the table." Ryan Zimmerman, assistant professor in the Department of Management at the Mays Business School at Texas A&M University, says employee engagement could become a growing issue as long-time employees extend their careers. Younger workers may have been counting on promotion opportunities, only to find older workers staying on the job longer. "The potential is there to lose talent," Zimmerman says. "If other organizations have new opportunities, those younger workers may leave." Zimmerman suggests companies can help retain talent by making sure managers are communicating with employees and providing as many new opportunities as possible. In addition, lateral moves in which an employee has the opportunity to expand his or her skill-set may also satisfy younger workers who were angling for a promotion. Bennies for Boomers Benefits and total-rewards programs will also be put to the test, as employers move toward customizing benefits to help meet the needs of different generations in the workforce. Always an issue for employees, providing healthcare benefits becomes even more critical to older workers dealing with, or facing the prospect of, chronic conditions or age-related issues. "Of course, healthcare costs are already going through the roof," Zimmerman says. "If anything, this trend [of older workers staying on the job] will exacerbate those costs with employees staying in the healthcare program into their 60s and 70s. You can't limit the healthcare offerings to older workers, it has to be the same program across the board." Older workers, particularly baby boomers, will also help drive the move toward work/life balance benefits, Poole says. "Companies hiring retirees would be well advised to look at what other companies are doing to incorporate flexibility into scheduling," he says. "Baby boomers are going to want some accommodations for a work/life balance.
November 6, 2008 Copyright 2008© LRP Publications |
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