Study Finds Most Employers Making Changes To Retain Older Workers

A study from LIMRA Secure Retirement Institute has found that 92% of employers are taking specific action to help older workers stay on the job, with two-thirds offering flexible hours, and 42% offering flexibility on where employees work such as, working from home or other locations. Other adjustments include job training/re-skilling and job sharing.

According to LIMRA, a more mature workforce is good for business. Eight in 10 employers said their organizations lose experience, institutional knowledge and leadership when an older worker leaves. In addition, LIMRA reports that anticipated shifts in the labor force affect a company’s benefit plan design. Among the challenges cited by employers were increased healthcare benefits costs, with half saying they plan to absorb the costs into the business, while 40% will pass on cost increases to employees.

Source: LIMRA Secure Retirement Institute "Nine in 10 employers taking steps to keep older workers on the job" (August 11, 2015)

Hong Kong: Flexibility Seen as Key to Retention of Older Workers

According to a survey conducted by Regus, 86% of respondents in Hong Kong see flexible working a critical factor in keeping older, experienced workers in the economy, as compared to 84% worldwide. Regus reports that, according to population projections by the Hong Kong SAR Government Census and Statistics Department, one in five Hong Kong people will be aged 65 or above by 2023. In addition, it notes that, in 2014, the Hong Kong SAR government extended the retirement age of newly hired civil servants from 60 to 65 to tackle the problem of an aging population and a shrinking workforce.

The key findings of the research show that:

• 81% of respondents globally, 88% in Hong Kong, 94% in Taiwan and 92% in Mainland China think that governments should increase employees’ awareness of their right to work flexibly;
• 86% of respondents globally, 87% in Hong Kong, 91% in Taiwan and 94% in Mainland China believe that governments should be promoting flexible working by offering firms tax incentives that encourage it;
• 88% of respondents globally, 92% in Hong Kong and Taiwan as well as 94% in Mainland China confirm that flexible working is key to keeping those who care for a relative in employment so that they can better juggle the demands of their family and their professional life.

Source: Regus Press Release (June 27, 2015)

United Kingdom: Survey Finds Gen Y Employees with Negative Attitude Toward Older Workers, Flextime

According to research conducted for the United Kingdom law firm Doyle Clayton, Generation Y employees have the most negative attitudes towards older employees and part-time and flexible workers. In addition, "Age Before Beauty? The Challenges Facing Britain's Managers in Overcoming Age and Gender Discrimination in the Workplace" reports that, according to their employees, micro businesses are Britain’s least discriminatory workplaces, and mid-sized businesses are where you are most likely to experience discrimination at work.

Among the key findings from "Age Before Beauty?" are:

• in micro businesses (1-9 employees), 96% of employees feel that age discrimination has never been an issue;
• in medium sized (50 – 249) and larger businesses, over 20% of employees had witnessed discrimination on grounds of age, whereas in micro businesses virtually no employee interviewed had witnessed it;
• 20% of employees at medium sized and large businesses view colleagues who work flexibly as less committed, whereas employees at micro businesses were consistently more positive; and
• Generation Y have the most discriminatory attitude toward flexible working and older workers, with 27.4% of those aged 25 to 34 seeing fellow employee working part-time as less committed, 31.1% seeing those working from home two or more days a week as less committed, and 18.3% (more than twice any other age group) seeing workers over 60 as less valuable.

Source: Doyle Clayton News (September 2, 2014)

Singapore: Government Announces Plan for Incentives to Employers Implementing Flexible Work for Mature Workers

At a speech on "Effective Workplaces: Creating a Flexible, Inclusive, Safe and Healthy Workplace" delivered at the Age Management Seminar, Dr. Amy Khor, Senior Minister of State for Health and Manpower, announced several enhancements that the Singapore Government was going to make to WorkPro to help employers better manage mature workers, especially with respect to flexible work arrangements (FWAs). The most significant enhancement is to:

provide employers with a $10,000 incentive to pilot new FWAs, and an additional $10,000 to support them in implementing the FWAs company-wide. With the enhancement, employers can receive a total funding of $40,000 for implementing FWAs, including the reimbursement of expenses incurred during the pilot and company-wide implementation.

In addition, expanding on the $40,000 a year employers can currently receive if they have 30% of their workers using FWAs, there will also be a cash incentive of up to $25,000 a year for employers who have 20% of workers benefitting from FWAs.

Khor also announced that the goverment would introduce a Workplace Health Promotion (WHP) Facilitator’s course, to help arm employers with the necessary knowledge and tools to plan, design and evaluate workplace health programs for their workers. "This will ensure that all employers who tap on the Age Management Grant have the capability to actively promote healthy living among their employees, especially the older ones."

In order "for companies to understand the value that mature workers bring to their business, and adopt a nondiscriminatory mindset when it comes to hiring and managing workers," Khor said that the Tripartite Committee on Employability of Older Workers is launching an advertising campaign—entitled "Tap into a Wealth of Experience"—to highlight the value and experience that mature workers can bring to the workplace.

Sources: Ministry of Manpower Speeches (June 18, 2014); The Straits Times "$10,000 grant for bosses who try flexi-work schemes" (June 19, 2014)

New Zealand: Report Calls for Employers To Adapt Workplace Policies for Older Workers

A report issued by BusinessNZ, Southern Cross Healthcare Group, and Gallagher Bassett is telling New Zealand employers that they will be increasingly reliant on older workers to remain in the labor market in coming years, and that these workers will increasingly require arrangements such as reduced hours of work, flexibility in working time, lighter duties and a degree of focus on transition to retirement. In "Wellness in the Workplace," it is reported that "only 12.6% of businesses have policies or arrangements in place for older employees. Even when results were broken down by broad size of business, there was no significant change in the overall result."

"Of those business that do have some form of arrangement in place, comments typically revolved around reduced hours of work, flexibility in working time, lighter duties and a degree of focus on transition to retirement." According to Phil O’Reilly, BusinessNZ Chief Executive, just because workers are nearing retirement age doesn’t necessarily mean an employee wants to give up work. "It comes down to understanding the external pressures your staff are under. We’ve come a long way in talking about work-life balance for parents, however older workers have equally important reasons for needing flexibility--they may have health issues to contend with, need to care for older parents or, increasingly, take on caring for grandchildren so the parents can return to paid work."

Source: Southern Cross Healthcare Group News Release (December 16, 2013)

United Kingdom: AgeUK Calls for Mandating Flexible Workplaces

AgeUk has issued a report calling for every worker to be able to do their job flexibly--including working from home, doing flexitime or different working hours, or simply being able to swap shifts--unless a business can justify otherwise. According to "", "an important way to unleash the full potential of Britain’s older workers, many of whom are unable to work conventional hours because of caring responsibilities and the need to balance other personal issues with work, is to change the UK’s traditional and more rigid approach to work."

Among the changes that AgeUK is calling for are for all new and prospective employees to automatically have the right to request flexible working, instead of having to wait until 26 weeks in the job before making a request. Currently, "far too many people aged 50 and over are locked out of the job market because they are unable to work conventional hours, often because they have to care for a relative or have health issues."

Among other findings published in the report:

• 38% of those in employment aged 50 plus worked flexibly in 2010, up from 30% in 2005, but the figures hide the lack of flexible working in various industries.
• Older workers in the public sector are most likely to work flexibly.
• People in lower supervisory and routine jobs are less likely to be granted flexible working than those in managerial or professional roles.
• Carers are less likely to be able to access flexible working options than other groups, for example those coming back from maternity leave.
• 25% of carers under the age of 70 report that caring responsibilities affect their work. Of these, 39% left employment altogether.

Source: AgeUK Press Release (September 11, 2012)

Flexibility Initiatives by Employers Can Benefit both Employers and Older Workers Research Finds

The Sloan Center on Aging & Work at Boston College has published the results of research finding that workplace flexibility initiatives, when properly matched to employee needs can provide strategic benefits to older workers and their employers. In "Flex Strategies to Attract, Engage & Retain Older Workers," the Center presents corporate case studies across a variety of industry sectors that demonstrate the value of workplace flexibility’s ability to recruit, retain, and engage older workers.

The most common strategies used by the three organizations (Central Baptist Hospital, Marriott International and MITRE Corporation) surveyed were: offering part-time positions (42%), hiring retirees as consultants or temporary workers (40%), and offering flexible work arrangements for older workers (36%). According to the Center, the best, and most promising, flexibility practices are those that address managers’ concerns about such things as trust, losing control and coaching older workers.

Before providing a series of recommendations, the report offered the following conclusions:

For older workers—indeed, for employees in all age groups—having access to flexibility is predictive of greater employee engagement, less stress related to perceptions of work overload, better physical and mental health, and greater satisfaction with work/family balance. However, for maximum impact, flexibility must be the right fit for each employee. To accomplish this for older workers, the employers featured in this report offer a variety of options to customize when and where work is accomplished and how careers are organized.

Source: The Sloan Center on Aging & Work at Boston College Publication News (March 28, 2012)

Nordic Labour Journal Publishes Issue Focused on "Age is no Barrier"

The Nordic Labour Journal has published an in focus issue on "Age is No Barrier." Focused on demystifying old age and presenting points of view and debates emerging from changing demographics, articles in the Journal include:

• "Active old age and solidarity between generations"
• "Myths dominiate attitudes to older people in the workplace"
• "Flextime key to a longer working life"
• "Just how many older workers are there? And do they want to work more?"

Source: Nordic Labour Forum (Feburary 9, 2012)

Canadian Chamber of Commerce Calls for Improving Incentives for Older Workers Staying on the Job

The Canadian Chamber of Commerce has issued a discussion paper, reinforcing the argument that retaining older workers in the workforce is part of the solution to avoid the skills crisis Canada is on the verge of experiencing, and calling for the removal of disincentives that discourage seniors from working. In "Incenting Seniors to Continue Working," the Chamber set the table for changes as follows:

Seniors represent a constituency that needs to be better integrated into the workforce. They possess the essential skills employers need. Many do want to continue working and view work as an important part of their life balance. Yet, in 2010, only a small percentage of individuals 55 years of age and over were in the labour force.

Accordingly, the paper pinpoints six key areas to be addressed in order to encourage the ongoing participation of seniors in the workforce:

1. pension reform;
2. tax reform;
3. flexibilty in the workplace;
4. innovative tools dedicated to the hiring of seniors, including online guides and websites;
5. lifelong learning and training; and
6. advancing a new business culture aimed first at retaining, rather than replacing, senior workers.

Source: Canadian Chamber of Commerce News Release (December 1, 2011)

United Kingdom: Employers Need To Plan for Effect of Aging Population on Workplace

A new discussion paper issued by Acas suggests that employers in the United Kingdom need to start planning now for the effects an aging population will have on the workplace. According to "The future of workplace relations--An Acas view," as more and more people live longer, workers will experience increased pressure as they juggle work with caring duties for elderly relatives, which in turn wil lead to an increase in requests for flexible working and part time hours to help meet eldercare as well as childcare responsibilities.

Among other things, the Acas paper explores the changes to the workplace over the next ten years and looks at the:

• changing profile of the workforce;
• fragmentation of the employment relationship;
• employees experience at work;
• future challenges for trade unions in the workplace;
• the rise of rules, regulations, and individual litigation;new challenges in managing the workforce;
• new channels for employee voice; and taking conflict seriously.

Source: Advisory, Conciliation and Arbitration Service (Acas) News Release (January 26, 2011)

Workplace Flexibility Groups Look To Greater Employer Engagement

The Sloan Foundation, which has funded numerous research studies around workplace flexibility, gathered many of those researchers and allied business and labor leaders, and government and military officials for a two-day effort to build on what Kathleen Christensen, Program Director, Alfred P. Sloan Foundation, termed a "growing consensus that workplace flexibility--in its many forms--can improve lives, support business objectives and strengthen the economy." Among the goals of the "Focus on Workplace Flexibility" gathering, held in Washington, DC, was to strengthen existing partnerships and to accelerate the process of making flexibility a standard of the American workplace. According to speakers, four-fifths of workers want flexibility, but only 29% have it, even though research shows that businesses do not lose profit by endorsing flexible workplaces.

Various research papers were presented at the event, including one focused on older workers ("Phased Retirement and Workplace Flexibility for Older Adults: Opportunities and Challenges" by Richard Johnson of the Urban Institute). In introducing some of these issues, Christensen noted how much is changing around retirement: retirement has become a joint decision for families for the first time, employees are working longer, and spouses are retiring at different times.

Source: Focus on Workplace Flexibility (November 29-30, 2010)

Singapore: Study Finds Older Workers Want Flexibility, Employers Reluctant to Hire

Singapore's Employer Allliance has released a study showing that older workers want flexible working hours to allow them to spend more time with their families and engage in leisure activities. However, the same study shows that only 5% to 15% of new positions here are made available to older people as employers perceive them to have lower energy levels, lack relevant skills and the ability to adapt quickly.

The employee desires were reported as a result of focus groups. Workers aged 50-54 wanted a job that requires minimal travelling and provides flexible working hours. Those aged 55-59 said they wanted greater flexibility when taking long periods of leave to enjoy leisure activities such as travelling and also wanted a lighter workload.

The employer attitudes were reported as a result of a survey of 22 employers. Despite their reluctance to hire, however, the companies do value older workers who are already in their employment, because of their loyalty and wealth of knowledge.

Source: AsiaOne News "Older workers prefer flexi-work" (October 13, 2010)

Research Study Pushes for Cultural Changes To Increase Workplace Flexibility for Older Workers

An AARP Public Policy Institute Insight on the Issues report focuses on the availability of and barriers to flexible work options, with a particular focus on older workers and phased retirement. According to the Making Work More Flexible: Opportunities and Evidence, prepared by Melissa A. Hardy of The Pennsylvania State University, many employers remain skeptical of flexible work options, despite growing evidence that they can benefit both employers and employees. Among other things, these employers fear that labor costs, output, or administrative efficiency will be unfavorably affected.

Among other things, the report looks at phased retirement, finding that while older workers express considerable interest in scaling back their work hours prior to full retirement, and many analysts and older worker advocates contend that such work options could prolong working life, relatively few workers have access to formal phased retirement options.

Source: AARP Research Report (November 2008)

Survey: Flexible, Delayed Retirements on Increase in United Kingdom

As part of CBI (Confederation of British Industry)/Pertemps Employment Trends Survey on telework and flexible work, CBI reports that the United Kingdom is experiencing a growth in flexible retirement. Specifically, in 2007, 31% of employees reaching retirement age asked if they could postpone their retirement. Employers granted 81% of those requests were granted, which CBI points out is still significantly lower than the 95% of flexible work requests from parents which are accepted.

Employers continue to face challenges when assessing requests to postpone retirement, and it is essential to keep a default retirement age as a trigger for discussion.

[John Cridland, CBI Deputy Director-General] said: "Many older workers do not want to retire, or do not feel financially secure enough to do so, particularly with the downturn in the housing market. In the majority of cases employers are very happy to retain older staff, who often have invaluable skills and experience."

Source: Confederation of British Industry Press Release (September 8, 2008)

Additional Reading: The Times "It is no time to retire as the gloom deepens" (September 8, 2008)

Report Tracks Governmental Action on Workplace Flexibility

A report prepared by Institute for Women’s Policy Research (IWPR) and the Center for WorkLife Law at the University of California Hastings College of the Law reviews actions being taken by 21 high income countries aimed at increasing workers’ ability to change their working hours and arrangements to balance work and family, and facilitate lifelong learning and gradual retirement. According to "Statutory Routes to Workplace Flexibility in Cross-National Perspective", high-quality flexible work arrangements are still the exception in the U.S.

While the IWPR is primarily focused on laws enabling women to remain in the workforce, it found that 11 of the 21 countries surveyed allow reduced hours with partial pension prior to full retirement. Thus, for example, in Finland, from age 58 onwards, a reduction of usual full-time hours between 30% to 70% is possible with partial pension payments.

Source: Institute for Women’s Policy Research News Release (May 28, 2008)

Successful Strategies for Retaining Older Workers: Urban Institute Paper

The Urban Institute has published a paper outlining successful strategies employers can use to do more to attract and retain older workers, many of whom are highly experienced, knowledgeable. According to the paper--"Current Strategies to Employ and Retain Older Workers" by Lauren Eyster, Richard W. Johnson, and Eric Toder--successful approaches include offering formal and informal phased retirement options and creating flexible work arrangements, such as part-time work, flexible schedules, job sharing, telework arrangements, and snowbird programs.

In addition the authors of this report, commissioned by the U.S. Department of Labor's Employment and Training Administration to support the work of the Taskforce on the Aging of the American Workforce, point out that federal, state, and local governments, as well as nonprofit organizations and post-secondary educational institutions, help older workers find employment and secure job training and educate employers about the value of older workers.

Source: Urban Institute Research Summary (March 7, 2008)