Germany: Court Rules that Older Workers May Be Given More Vacation Time than Younger Workers

Germany's Federal Labor Court has issued a ruling that allows an employer of older workers to give more vacation days annually than the younger ones, finding that this difference in treatment on grounds of age can, from the viewpoint of protection of older employees in accordance with discrimination law, be permitted. In this case, a shoe manufacturer, decided that work in its production operation was physically tiring, to allot two extra vacation days to employees after 58 years of age, to allow for longer recovery times than younger workers.

According to one report, a court spokesman said that this kind of differentiation would have to be decided on a case-by-case basis, as different types of work placed different strains on workers.

Sources: Federal Labor Court Press Release No. 57/14 (October 21, 2014); The Local "Older workers can have extra days off, court says" (October 21, 2014)

Productive Aging Programs Help Employees Manage Age at the Workplace

In a post by U.S. News & World Report blogger Philip Moeller, Kristin Tugman--senior director of health and productivity at Unum--outlined the five components of a productive aging program. According to Tugman, beyond mentoring, prospective labor-force shortages mean many employers simply cannot afford to let older workers retire or walk out the door. In particular, in manufacturing and physically challenging occupations such as nursing, employers "are recognizing the creep up in terms of their employees' average age" and the "clear impact of continuing repetitive, hard labor."

Productive aging programs include:

1. a rigorous demographic analysis of an employer's aging workforce today and projected into the future;
2. employee wellness programs with specific older-employee components;
3. chronic condition management, perhaps with special emphasis on obesity;
4. flexible work environment; and
5. job enrichment programs, which value older workers and seek to leverage their motivation with respect to their return to work and their staying at work.

Source: U.S. News & World Report "Employers Slowly Enrich Programs for Older Workers" (March18, 2013)

Study: Employers with Older Employees, More Full-time Workers More Likely To Provide Pensions

A study issued by the Investment Company Institute reports that companies with an older, higher-earning workforce are more likely to offer retirement plans than those with younger, lower-income employees. According to "Who Gets Retirement Plans and Why, 2010," workers at small employers that sponsor retirement plans are as likely to participate as workers at large employers sponsoring retirement plans.

In addition, the study shows that 39% of workers aged 21 to 29 worked
for employers that sponsored retirement plans in 2010, compared to 57% of workers aged 55 to 64. Similarly, 23% of workers in the lowest quintile of annual earnings ($14,000 or less) worked for employers with retirement plans, compared with 74% of workers in the highest quintile ($60,000 or more. "Employees also were more likely to report that they worked for an employer that sponsored a plan if they were more fully engaged in the workforce."

Source: Investment Company Institute News Release (October 31, 2011)

Bank of America Reports Employers Focus on Financial Benefits Plans To Retain Employees

According to a study conducted for Bank of America, 94% of employers believe it is important to retain older employees for a longer period of time before they retire in light of the talent and skills they possess. The Workplace Benefits Report examined ways in which employers are helping to address the financial needs of perhaps the most demographically diverse workforce in history and found that 50% of employers offer flexible or customized work schedules, 33% are implementing education around retirement income and health care topics, 32% offer continuing education and development opportunities, 22% give employees the opportunity to work remotely, and 21% are offering extended benefits to older employees.

In addition, the study notes:

• Employers feel increased responsibility for financial well being of employees.
• Recession and uncertainty of entitlements places increased importance on financial benefits, ignites positive savings actions among employees of all ages<.
• Employers offer a broader range of financial education and advice, though lack of personalization and communication may limit employee engagement.
• Employers look to enhance financial benefit plans to address the changing needs of employees and win the war for talent.

Source: Bank of America Press Release (June 14, 2011)

Survey: MetLife Employee Benefits Study Shows Increased Focus on Retirement and Aging Workforce

The workplace has become the dominant starting point for building a strong financial safety net, with more than half of working Americans (52%) obtaining the majority of their financial and retirement products through the workplace, according to MetLife. In addition to providing a picture of corporate employee benefits, its "6th Annual MetLife Study of Employee Benefits Trends" includes a look at a growing focus on retirement and the aging workforce.

Employers are implementing a range of programs and accommodations. Large companies outpace smaller employers when it comes to offering retirement guides/information and training. About one-third of companies with 500 or more employees offer resources and programs for an aging workforce. However, smaller employers provide greater flexibility for working part-time in retirement. Among companies that provide resources/programs for an aging workforce, 44% with 2 to 499 employees provide part-time employment to retirees, compared to 35% with 500 or more employees.

Smaller employers are less likely to anticipate being affected by the aging workforce. Only 35% of employers with 2 to 499 employees think they will be greatly impacted, compared to 50% with 500 or more employees. One reason could be that employees at smaller companies expect to work until an older age. While the average employee at companies with 500 or more employees is anticipating retiring from full-time work at age 63, the average employee at smaller employers is planning to retire at age 65.

Source: MetLife Press Release (April 7, 2008)