Saturday, July 15, 2006

Do Employers Want to Hire Older Workers?

Following the lead of a New Yorker cartoon, Robert Powell writes in MarketWatch that "work--for many Americans--is the new retirement plan." He cites the Center for Retirement Research at Boston College report to suggest, however, that some employers do not want older employees: "Specifically, small employers, those with 100 or fewer employees, and large employers, those with 1,000 or more employees, as well as "young" organizations are generally less fond of older workers be they white-collar or rank-and-file."

According to Bob Morison, executive vice president of The Concours Group, "older workers are, indeed, more satisfied with their jobs, better adjusted on the job, and more engaged in their work and with their employers than the young or midcareer cohorts are," but 4 in 10 employers say older workers are more expensive than someone younger. Morison suggests that employers could reduce the cost of hiring older workers if they focus on Medicare-eligible prospects:
"The cost picture changes dramatically for working retirees who have reached the Medicare eligibility age or who have already retired with health benefits covered," he said. "Providing a bit of supplemental coverage for workers in this category is much cheaper than providing more extensive benefits to younger employees. A smart company hires the other guy's well-benefited retirees."
Source: MarketWatch "Older workers win praise, but winning jobs is another matter" (July 14, 2006)

No comments: