Tapping the Vast Human Capital of Older Workers

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• Tapping the Vast Human Capital of Older Workers

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Americas Aging Workforce

• Significant Demographic Changes in the USA
• Nearly one in three workers will be 50 by 2012
• Median age of workers 40
• Baby Boom generation nearing traditional
  retirement age

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Projected Change in Labor Force
by Age Group, 2002-2012
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Workforce Shortages

• Nurses and other health professions
• Teachers
• Public administration
• Engineers
• Scientists
• Highly skilled professionals

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Employee Perspective
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Reinventing Retirement

• Boomers much less likely to associate retirement
  with the traditional retirement age of 65.
• Nearly 70 of workers who have not retired report
  that they plan to work into their retirement
  years or never retire.
• Almost half of workers 45-70 indicate that they
  envision working into their 70s or beyond.

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Primary Reasons for Working

• Money
• Health Insurance
• Retirement benefits
• Flexible work arrangements

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Why People Think Theyll Work in
RetirementPre-retirees age 50-70
Source AARP, Staying Ahead of the Curve, 2003
The AARP Working in Retirement Study, 2003
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Other Key Factors

• Older workers, particularly the boomers, are
  striving for work/life balance
• Between 30 and 38 million adults were caregivers
  in 2006
• Caregiving is a financial hardship

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Workplace Needs 50 Workers

• Healthcare/Salary
• Retirement benefits
• Flexible work arrangements
• Worker-friendly environment
• Work/Life balance
• Opportunity to learn something new

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• Employer Perspective

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Employers are anxious about the future

• 2006 BusinessWeek survey of 1,005 executives
• 79 say lost knowledge can hurt financially
• 74 Harder to find qualified employees
• 59 Need to do more to retain workers
• Only 16 have formal programs to do this

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Employer Perspective Positive Perceptions of
Older Workers

• Loyalty and dedication to the company
• Come to work on time low absenteeism
• Commitment to doing quality work
• Someone you can count on in a crisis
• Solid performance record

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Employer Perspective Negative Perceptions of
Older Employees

• Averse to change
• Lack experience with new technologies
• Out-of-date job skills
• Difficulty reporting to younger bosses
• Too Expensive

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• The Business Case for 50 Workers

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The Business Case for 50 Workers

• Debunk the myths employers possess regarding
  the costs associated with 50 workers and build a
  business case for utilizing 50 workers as one
  strategy for addressing labor shortages.

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The Business Case for 50 Workers

• Costs
• Cash compensation
• Health Benefits
• Pension Benefits
• Paid Time Off

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The Business Case for 50 Workers

• Industry Overlay
• Energy
• Financial Services
• Health care
• Retail

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The Business Case for 50 Workers

• Cash Compensation
• Tied to market median
• Cost depends on ability, experience and
  performance
• Cash compensation not necessarily tied to age

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The Business Case for 50 Workers

• Health Benefits
• Health claims for 50 -64 years and dependents
  equal 1.4-2.2 times the cost of claims for 30
  40 year olds.
• HR managers are increasingly concerned with
  behavioral issues that lead to health risks
• 50-64 year olds are less likely to have dependent
  children

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The Business Case for 50 Workers

• Pensions
• Only 21 of private employers offer DB plans vs.
  42 that participate in DC plans
• DC plans are not age-based

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The Business Case for 50 Workers

• Valuepart of the Equation
• Engagement
• Turnover

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The Business Case for 50 Workers

• Engagement
• Towers Perrin study shows that 50 workers are
  more engaged as they age.
• Highly engaged workers correlates with overall
  performance of the company.

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The Business Case for 50 Workers

• Turnover
• The average tenure among workers is 3.7 years.
• Median job tenure of 55 worker is 3.3 times that
  of 25-34 year old.
• Employers often dont see ROI until 3rd year.

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The Business Case for 50 Workers

• Employer Action
• Inventory your current talent and define future
  needs
• Model cost trends to understand the business case
  for investments needed to attract and retain 50
  workers
• Study available labor pool and define your talent
  strategies
• Align reward programs
• Align workplace policies and practices

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Whats In it For Business?

• The boomers will reinvent "retirement," working
  longer either because they want to or they need
  to.
•  
• Mature workers offer businesses a unique
  combination of experience, loyalty, enthusiasm
  and a strong work ethic.
•  
• As the workforce ages, businesses that know how
  to recruit and retain mature workers will gain a
  competitive edge.
•  

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• Employer Best Practices

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Best Practices - Recruitment

• Brevard Public Schools
• Retired Principals
• Volkswagen of America
• Recruiting from databases
• Centegra Health
• Alumni Nurse Program

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Best Practices - Benefits

• Busch Entertainment
• Annual wellness visit
• Scottsdale Healthcare
• Backup elder care at nominal cost
• Principal Financial
• Health risk assessment
• Has seen a 260 cost savings per employee
• Home Depot
• Offers health benefits to part-time workers

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Best Practices Flexible Work

• Stanley Consultants
• Phased retirement program
• CVS Borders Books
• Snowbird program
• Mercy Health
• Part-time, flex-time, seasonal

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Best Practices Workplace redesign

• Baptist Health South Florida
• Hydraulic beds
• International Trucking
• Supporting mechanics

• Pinnacol Assurance
• Ergonomics program reduced
• workmans compensation
• costs by 33

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• AARP Workforce Assessment Tool

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AARP Workforce Assessment Toolhttp//www.aarp.org
/workforceassessment

• Employee Age Demographic and Skill Shortage
  Projections
• Knowledge Retention
• Flexible Work Arrangements
• Training and Development Benefits
• Workplace Accommodations
• Positive Work Environment
• Recruitment

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• AARP Resources and Activities 50 Worker Issues

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• AARP Real Relief -

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