The number of employees working into old age continues to grow for a variety of reasons, including financial need, the failure of private pension plans, and lack of sufficient health benefits among the most prominent. Older workers often bring many vital assets, such as solid life experience, better attitudes, job flexibility, and an interest in learning new things. However, there are many issues that management must consider when trying to successfully manage an increasingly “greying” workforce. Here are seven of the most common:
1. PROPORTION OF OLDER WORKERS: Compared to the past, their number can be expected to grow disproportionately in the coming years. This is not just a problem in the US, but a pattern seen globally.
2. LONG-TERM RETIREMENTS – Today, the average number of years workers spend in retirement is more than 30, compared to just a few years in retirement a century ago. This means that many will choose to continue working part-time, while others will be able to take a break to travel and enjoy their time off before starting their job search again.
3. HEALTH ISSUES – Chronic health problems and age-related disabilities need to be considered. Among employees age 55 and older, arthritis is the number one chronic condition. The implementation of better wellness programs and similar initiatives offer possible ways to avoid excessive sick time off.
4. MULTIPLE GENERATIONS: In the coming years, HR professionals will be increasingly challenged by the need for multi-generational workers to function successfully as a team. Different generations often have opposite attitudes towards work and life. If not properly managed, these differences could result in ineffective performance in the workplace. The combination of a seasoned and competitive baby boomer with a relaxed and lifestyle-focused Gen Y employee represents just one of the possible scenarios. A proactive leader will be needed to understand the problems that are likely to arise and how to act preemptively to avoid them.
5. AGE DISCRIMINATION: With more older Americans still in the workforce, we can expect to see an increasing number of lawsuits filed by disgruntled employees looking to play the “age” card. Workers over the age of 40 are protected from discrimination based on age by the provisions of the Age Discrimination in Employment Act of 1967 (which affects employers with more than 20 employees). HR will need to be educated on the latest laws and trends in litigation based on discrimination.
6. SUCCESSION PLANNING – With fewer “young” workers entering the job market due to lower fertility rates in the US and most of the industrialized world, succession planning will become increasingly difficult . Talent may not be available in all areas. The use of remote workers from across the country may need to be considered.
7. MEDICAL COSTS – Older employees will not necessarily have to pay more for medical care. While it is a well-known fact that older workers’ health benefits are costly due to age-related illnesses, younger workers also have a host of cost-related health problems, including smoking, pregnancy , lack of exercise and obesity. Qualifying older workers may also have medicare benefits.
Although changing demographics can change the face of talent acquisition and management, with simple strategies, the change can be a smoother transition for businesses.
-Tricia Folliero
Vice President, Sanna Mattson Macleod