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| Volume 3, Issue 5 |
The Unintended Consequences of an Aging Workforce (Part 2) By Stephen F. Barnes, Ph.D., and Patrick H. Davis, MSW The “Silver Tsunami,” a term used to describe 78 million Baby Boomers who will become eligible for retirement over the next twenty-years, is destined to change the American workforce. Comprising about 40 percent of the workforce today, the collective impact of the Baby Boom generation will be both significant and double-edged. Because Boomers tell us they are not going to retire on schedule and may want continue working full or part-time after retirement, many employers have been caught off-guard. On the other hand, when Boomers start leaving the workforce in large numbers their exodus will expose a serious skilled labor shortage in this country and possibly other workforce vulnerabilities. Let us briefly consider both problems. Disincentives for Retaining and Hiring Older Workers Only about a third of private sector employers have specific plans to retain their older employees or hire new ones. The reasons for this include deeply entrenched biases about aging and the erroneous perception that older workers have diminished abilities and capacities, and failing health. There are also legal and policy barriers that make it difficult if not impossible to hire older workers who have already triggered their pensions and/or Social Security prior to reaching their full retirement age. Often there are increased health benefit costs imposed on employers that hire older workers, creating a cost disincentive. Additionally, labor unions are not yet on-board as advocates for hiring or retaining older workers. There is also a company size factor: smaller (<100) and larger employers (>1,000) are less likely to hire older workers; while mid-size employers that are more inclined to hire account for only 25% of workforce. Turning employers, both public and private, around on this issue understandably will take time and persuasion—a luxury we may not have. Remedies and Strategies for an Aging Workforce At both the federal and state level there is increasing attention being paid to the value of older workers—as role models, mentors, dedicated employees, brain trustees, and productive corporate citizens. For example, in 2000 the Social Security Administration removed some of the financial penalties on older workers who want to stay on the job longer while drawing down their pensions. Other changes are under consideration by Congress that promote older workers, including employer tax incentives, lessoning legal and regulatory requirements related to work and retirement, and creating a national clearinghouse of best recruiting, hiring, and retention practices for older workers. For employers there are some immediate remedies worth considering. These include creating more flexible working arrangements for older employees, such as, flexible times, schedules, places, job sharing, and job re-design that aligns with the preferences and physical constraints of older workers. Employers can also do a much better job of offering the right mix of benefits and incentives to attract older workers, such as, tuition assistance, time off for elder care, employee discounts, and pension plans that allow and even encourage retirees to return to work. As employers look out ahead at the challenges they face within their own organizations in the context of a turbulent market place, one of the most promising strategies is to reconsider the value of older workers and to partner with them. We want to hear from San Diego Employers In light of the skilled labor shortage, what are San Diego companies doing to attract skilled, older workers? Research indicates only 18% of all businesses in America have developed strategies to encourage older workers to remain on the job. Which San Diego companies are “Boomerizing” their organization, creating new approaches and finding remedies that create greater access to the brain trust when hiring older worker? Contact Patrick H. Davis, MSW at PhDMSW@iACT-now.com and let me know what your organization is doing. We are compiling information for publication in spring 2010.
Dr. Stephen F. Barnes is Professor of Adult Education at San Diego State University and Co-Director of the Center for Educational Leadership, Innovation & Policy (Interwork Institute) Patrick H. Davis, MSW, is a lecturer and researcher with the San Diego State University Interwork Institute (email: Davis@iact-now.com) Barnes and Davis are Co-Founders, Institute for Applied Critical Thinking (iact-now.com)
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