Australia: Second Intergenerational Report Released

The Treasurer of Australia has released Australia’s second Intergenerational Report, focusing on the implications of demographic change for economic growth and assessing the financial implications of continuing current policies and trends over the next four decades. Over the next 40 years, the ageing of the population (specifically the impact of relatively fewer people of traditional working age) is projected to slow economic growth, with real GDP per person rising more slowly than in the past 40 years, and, at the same time, spending pressures in areas such as health, age pensions, and aged care are projected to rise, due to demographic and other factors.

Among manyt other things, the report shows that the rate of mature-aged men still in the workforce rose from 60% in 1997 to more than 66% in 2005, slightly higher than the OECD average that year. The participation rate for people of traditional working age (15-64 years) is projected to rise from 76.2% in 2006-07 to 78.1% by 2046-47, mainly due to an increase in participation rates of older workers (aged 55-64 years).

Decisions by individuals to participate in the labour market are influenced by their capabilities, the incentives in government programmes and the flexibility of the labour market to match job seekers with employment opportunities and pay. Spending programmes which provide income support and the personal tax system need to have appropriate incentives to provide a return for working and to provide support, including in times of unemployment or situations of disability. The capabilities of people can be improved through better health and education. The flexibility of the labour market, the range of jobs, qualifications, hours and rates of pay also influence people’s decisions about labour force participation. Continued attention to all of these influences, as well as the maintenance of a strong macroeconomy that maximises employment opportunities, will be necessary.

Source: The Australian Government Treasury Intergenerational Report Home (April 2, 2007)

Additional Source: The Age "Retirement no option for generation of older workers" (April 3, 2007)

More Californians Are Working At or Near Retirement

A California Budget Project (CBP) report shows that Californians are working later in life than they once did. The share of Californians approaching or at the traditional retirement age--age 65 and older--who are employed increased considerably between 1995 and 2006, after a decade and a half of little change.

According to the CBP's Policy Points, “More Californians Are Working Later in Life”, this trend reflects a number of factors, including improved health and longer life expectancy, as well as diminished retirement security. While both financial and non-financial factors motivate people age 55 to 70 to work, the need for money was the most frequently cited reason for working among those in their late 50s and early 60s.

Source: California Budget Project Press Release (April 2, 2007)

Wisconsin: Effect of Aging Workforce on Milwaukee's Employers

Elizabeth Hockerman, writing for the Small Business Times in Milwaukee, Wisconsin, reports that Milwaukee employers will soon be confronted by a severe labor shortage caused by a cascade of aging and retiring baby boomers, who will be followed by a much smaller generation. Among other things, she reports on a report by Senior Service America that Wisconsin’s labor shortage will be particularly acute: “All of the growth in the working-age population of Wisconsin (by 2015) will be generated by persons 55 and older … The graying of the Wisconsin population will clearly accelerate after 2010 in the absence of a substantial increase in either domestic in-migration or a sharp rise in foreign immigration.”

Before employers look to train unskilled workers or entice college students and young professionals to stay in the Wisconsin workforce, they are going to have to work with their older employees to find ways to keep them on board even after they plan to retire.

“We are lucky in a perverse way that many boomers have not planned well enough for retirement – they will be seeking to continue to work and earn an income,” said Sammis White, director of the University of Wisconsin-Milwaukee Center for Workforce Development, associate dean of the School of Continuing Education and professor of urban planning. “But employers must be convinced that they should look to the boomers as part of the solution for the impending worker shortage. They definitely must be.”

Hockerman writes about some Milwaukee employers that are responding flexibly with, among other things, mentoring programs and plans to become an employer of choice among older workers.

Source: Small Business Times The Graying of Milwaukee (March 2, 2007)

Rise in Age Bias Suits Linked to Rise in Older Workers

Writing in the National Law Journal, Tresa Baldas reports that employment attorneys say the surge in age bias lawsuits is mainly due to the fact that a large part of the work force is getting older, staying healthier, and choosing to work longer. For example, Gary Phelan of Outten & Golden reports that his firm has seen a 50% increase in age bias claims in the last year and claims that employers still aren't taking age discrimination seriously.

Employers have been put on the alert, said attorney Zachary Hummel of Bryan Cave's New York office, who represents employers in labor matters.

"As our work force ages--and I have many clients watching that happen within their work force--practitioners are anticipating what certainly will come, and that is more age-based suits," Hummel said. "And those of us that do a lot of advising work with clients ... we certainly are concerned about that because age discrimination claims are difficult cases to defend."

Source: National Law Journal "Age Bias Suits on the Rise With Older Employees Working Longer" (March 16, 2007)

Conference Board Report Suggests that Phased Retirement is Becoming a More Viable Option

A report released by The Conference Board suggests that recent U.S. legislation means that more companies will be able to use phased retirement to retain valuable skills and knowledge while providing mature workers with an alternative to the all-or-nothing approach to retirement. While the IRS has yet to issue regulations under the Pension Protection Act of 2006, the Act opens up new options for companies that sponsor defined-retirement benefit plans, lifting restrictions that forbid employers from paying retirement benefits until an employee had terminated employment or had reached the plan's normal retirement age.

According to Anna M. Rappaport and Mary B. Young, the authors of "Phased Retirement after the Pension Protection Act", employers should first define the talent challenges that phased retirement might help solve and then should evaluate which of the many options for phased retirement would be most effective. Figuring out the compensation and benefits should be the final step.

Phased retirement can be any work arrangement that falls somewhere in between full-time retirement and working full-time. Formal phased retirement is still relatively rare, partly because employers are skittish about running afoul of pension laws, and partly because companies are reluctant to include all of their mature staff in a phased retirement situation.

While the report is available for purchase, the Conference Board press release provides further detail into the kind of decision-making process a company should adopt when considering the possibilities of implementing phased retirement.

Source: Conference Board Press Release (March 28, 2007)

Norway: Pension Reform Agreement Supports Older Workers

Norway's center-left government and opposition parties reached a compromise on pension reforms that are intended to encourage older workers to stay in employment longer and to make pensions fair and sustainable. Among other things, future pension options will include retirement at age 62, but there are strong incentives to continue until age 70. According to an article by Aftenposten's Norwegian reporter Sigurd Bjørnestad, the agreement keeps Prime Minister Jens Stoltenberg's pension reform promise to give everyone more was more or less intact.

The new system is complex, with many new pros and cons, with the clearest perhaps being the ability to choose between a longer retirement on less of a pension, and working long to guarantee a more comfortable, though shorter, retirement. A key change is the ability to work as much as one likes after retirement without losing pension benefits.

Source: Aftenposten "Pension reform agreed" (March 22, 2007)

Other Sources: Ministry of Finance and Ministry of Labour and Social Inclusion The Pension Reform

Global Aging and Retirement: AARP Releases Country Surveys of Opinon Leaders

In conjunction with a conference on "Reinventing Retirement Asia: Enhancing The Opportunities of Aging" held in Tokyo March 15-16, AARP released a survey of opinion leaders in Asia and Oceania, which reveals that most believe their countries are ill prepared to deal with the challenges of an aging population. Although the survey report covers several aspects of aging and society, two core focuses were on older workers and retirement.

AARP's report--"Aging in Asia and Oceania: AARP Multinational Survey of Opinion Leaders 2006"--was prepared by Princeton Survey Research Associates International thrugh a survey of opinion leaders in the United States and in seven countries in Asia and Oceania. The survey was designed to increase AARP’s knowledge of aging issues and attitudes in key Asian markets and to compare attitudes and policies towards aging in the US to attitudes and policies in Asian and Oceanian societies.

According to the overall summary, opinion leaders vary as to the age at which a worker becomes an "older" worker:

Averaging 60 years of age among all opinion leaders interviewed, the average age at which opinion leaders would consider someone an older worker varies somewhat from country to country, ranging from a high of age 66 in Japan to a low of age 55 in Australia. Half of opinion leaders say that the transition to becoming an older worker occurs some time between the ages of 60 and 69.

Other key findings show that opinion leaders perceive older workers as wise, respected, and productive, but that "businesses do not see older people as a
potential source of productive labor and employers are not well prepared for a future workforce comprised of more older workers." Opinion leaders also say that it is a responsibility to society to address older worker issues, older workers should be accommodated, the mid-60's is an appropriate time to retire, and that there should not be mandatory retirement.

In addition to the full report, AARP has issued specific country reports for the United States and for these Asian or Oceanian countries:

• Australia
• China
• India
• Japan
• New Zealand
• Singapore
• South Korea

Source: AARP News Release (March 14, 2007)

Oasis Institute Receives Grant To Increase Technology Skills of Older Workers

The AT&T Foundation has made a $1 million AT&T AccessAll grant to the OASIS Institute to expand the Institute's "Excellence in Technology Partnership" to help mature adults in more communities develop the skills, resources and confidence to use technology effectively in their personal lives and in the workforce. Through OASIS classes, individuals learn how to use e-mail and word processing, create spreadsheets, conduct Internet searches, and protect their privacy and security online.

When Lynn Schanz decided to go back to work at age 55, she realized pretty quickly that she needed computer skills to succeed. Through her local OASIS center in Indianapolis, she signed up for a few computer skills classes such as an introduction to the Internet and using Microsoft Word. Developing basic technology skills gave her the confidence to apply for job opportunities, and her determination paid off when she landed a job with an eye therapist's office.

Source: Oasis Institute News Release (March 14, 2007)

New Zealand: Survey Shows Surge in Number of Older People in Paid Work

According to a new analysis published by the New Zealand Department of Labour, more older New Zealand workers are staying on the job, with New Zealand recording one of the highest workforce participation rates in the OECD for the 50-64 year age group. The report--"Older People in Work: Key Trends and Patterns 1991-2005"--shows a surge in the number of older people in paid work, with 77% of 50-64 year olds working in 2005, compared with just 57% in 1991. By comparison, Australia’s participation rate is around 10 percentage points lower, according to Department of Labour Group Manager for Workforce Policy Lesley Haines.

Haines particularly noted that the growth of participation by older women--from about 45% to about 70%. “Factors contributing to this growth include the fact that women are pursing careers across their lifetime, technological changes to the nature of work and ongoing skills shortages. Raising the age eligibility for superannuation has also played an important part."

She also pointed to additional research released by the Department of Labour--"45 plus: Choices in the Labour Market"--which provides an insight into drivers and barriers to paid work for people over the age of 45.

Source: New Zealand Department of Labour News Release (March 6, 2007)

The report is also available in PDF or Word formats.

United States: Survey Shows Many Employees in Small Businesses Staying on Past 65

According to a survey of small businesses, almost a fifth report that their older workers are staying on past the usual retirement age of 65. More than a third reported employees are still working because they can't afford to retire, while twice that many said employees were staying past 65 because they liked working or enjoyed the extra income.

The survey--"Older and Wiser: As the Work Force Ages, Small Businesses Change, Too"--was conducted by the National Association of Professional Employer Organizations. Among other things, the survey found that almost 16% of the small businesses said 5% or more of their employees are between 60 and 64, a jump from five years ago, when it was 9%.

Source: National Association of Professional Employer Organizations News Release (March 15, 2007)

Europe: Mature@eu Recuriting Project Opens Website

The European Union Leonardo Da Vinci project website mature@eu is up and running. The project is coordinated by the Vienna based ZSI (Center for Social Innovation) and aims at supporting HR Managers to recruit and retain older employees through developing effective age neutral personnel policies.

The website holds a lot of useful information and it will be constantly updated as the project "matures". The link-list refers to a broad range of organisations in several countries, who have been engaged in supporting older employees and have valuable information and examples of good practice. In addition, a toolbox will be available, which will facilitate HR and employee representatives to promote a change in attitudes and practice towards the recruitment of older professionals and the perception of age stereotypes.

Source: Union Network Internationaal News Release (March 13, 2007)

Virginia: Study Finds Rural Communities Short of Younger Workers

According to 2006 population estimates by age and gender developed by the Demographics and Workforce section of the University of Virginia’s Weldon Cooper Center for Public Service, younger Virginians (18-24) are concentrated in or near college or university towns and, after college graduation, in localities--typically cities--with the largest range of employment opportunities. Accordingly, workforce development strategies targeted to available human resources will be required to meet the needs of employers in rural areas.

Qian Cai, director of the Demographics and Workforce Section, who prepared the estimates, notes that "[w]hile small and rural communities may offer certain dimensions of a high quality of life, the absence of employment opportunities presents significant disadvantages to these communities in attracting younger workers.” At the other end of the workforce, the percentage of Virginians at pre-retirement age (55-64) continues to grow--now 11% of the current population, compared to less than 9% six years ago.

“Communities facing the largest retirement challenge already tend to have a higher proportion of elderly citizens,” says Cai, “because the younger population leaves in search of work, the older resident population ages in place, and many who left when young tend to move back for retirement.” In Mathews County, for example, 11 out of every 100 people aged 65-69 moved in from elsewhere (as compared to the state average of three out of 100).

Source: University of Virginia News Release (March 14, 2007)

Survey: U.S. Companies Not Responding to Changing Demographics of Aging Workforce

A survey released by Boston College's Center on Aging and Work/Workplace Flexibility , found that many U.S. businesses are unprepared for changing workforce demographics. Specifically, the "National Study of Business Strategy and Workforce Development" shows that more than a quarter of U.S. businesses have failed to plan for the effects of the aging American workforce.

"Even though organizations know that the workforce is aging and understand that their own workers are looking at retirement, many are not making plans for how business will adjust to these changes," said Marcie Pitt-Catsouphes, co-director of the Boston College Center on Aging and Work.

"Companies that do not plan for this aging workforce may find themselves suddenly faced with a loss of labor, experience and expertise that will be difficult to offset, given the relatively small pool of new workers and the competition for new talent likely to result from so many companies facing the same problem," said Mick Smyer, co-director of the Center.

The survey focused on four questions: (1) Are employers assessing how the aging of the workforce might affect their organizations? (2) Do employers see the aging of the workforce as a vulnerability or a competitive advantage? (3) How are employers responding? (4) What factors could affect employer response? For each question, the survey reports on the results, but also offers up concrete advice to employers under the rubric of "Considerations for Employers."

Source: Boston College Center on Aging and Work/Workplace Flexibility Press Release (March 13, 2007)

Canada: Expert Panel Releases Discussion Paper on Older Worker Challenges and Policy Issues

Following up on the appointment of the Expert Panel on Older Workers, Erminie Cohen, Chair of the Panel, launched a public discussion paper, which highlights the main issues older workers face in the
labour market and will serve as a vehicle for the Panel's discussions and consultations. The Panel encourages people to read the document and send in written submissions; guidelines for submissions are available on the Panel's website.

The purpose of the paper--"Older Workers: Challenges and Policy Issues"--"is to provide Canadians with an opportunity to consider the labour market issues affecting older workers today and in generations to come. It is designed to support a dialogue with the provinces and territories, as well as with a broad range of stakeholders and academics. In so doing, it provides details on labour market pressures, and on this group of workers, particularly displaced older workers, and asks questions of which the answers could help frame the development of future policy initiatives."

Source: Expert Panel on Older Workers Press Release (March 9, 2007)

Canada: Central Bank Governor Urges Flexibility on Employers for Retaining Older Workers

David Dodge, Governor of the Bank of Canada, speaking to the Calgary Chamber of Commerce urged flexibility on employers in light of changing demographics that mean that there will be fewer and fewer young people in the labour pool to draw upon. Specifically, employers must learn to concentrate on making the most of experienced and trained workers and remove any barriers to their continued participation.

This means that we, as employers, have to be more flexible in setting up work schedules. It means that we, as employers, must look at the redesign of pension plans. It also means that we, as employers, must put more effort into upgrading skills and increasing our openness to hiring mature workers. And it means that we, as employers, have to put more emphasis on mentoring programs, so that younger workers can benefit from the skills and experience of older workers, ensuring that intellectual capital is not lost.

Source: Bank of Canada Speeches (March 8, 2007)

Case Study: How a Social-Service Group Tailors its Appeal to Older Employees

In the March 8 issue of The Chronicle of Philanthropy, Elizabeth Schwinn writes about how the YMCA of Greater Rochester made a major push, starting in 2004, to recruit older workers and aged its workforce so that a full 20% of the charity's 2,100 workers are older than 50--its oldest employee being an 89-year-old fitness instructor. According to Fernán R. Cepero, the Rochester Y's vice president for human resources, this change the Y has found that:

• older people always show up for work, unlike some of his younger employees;
• the older employees are more likely to complete assignments and possess speaking and writing skills that younger people sometimes lack;
• older workers are eager to learn new skills and are savvy about new technology;
• the turnover rate among workers who are 50 or older is less than 2 percent, compared with 20 percent overall.

The YMCA may be a leading example of how some experts suggest that charities may be in a good position to recruit some of the boomers leaving jobs in business.

Nearly two-thirds of baby boomers say they want to work for a nonprofit organization or the government after they retire, according to a 2005 survey by the MetLife Foundation and Civic Ventures, a nonprofit think tank. "These boomers represent a vast pool of knowledge and experience," says Patrick Cullinane, director of a program at the American Society on Aging that encourages older people to get involved in civic activities.

To get those older workers, though, charities will have to learn what incentives they must offer them.

"You're looking at a generation that has a desire to work, but not necessarily for money," says Tim L. Wollerman, manager of work-force resources at the AARP. "They want to work in a different capacity or nontraditional hours. They want a stronger work-life balance."

Source: The Chronicle of Philanthropy "A Charity's Mature Vision" (March 8, 2007)

Italy: Prodi Government Proposes Raising Retirement Age, Other Pension Reforms

According to a report from La Republica, Italy's Prime Minister Romano Prodi plans to discuss pension reforms with unions immediately after being re-instated by parliament, including a proposal to increase the retirement age from from 57 to 58 on January 1, 2008, after 35 years of pension contributions. The retirement age would then gradually be increased, it said.

Source: AFX News Limited "Italy govt to discuss pension reform with unions after confidence vote - report" (February 26, 2007); La Republica "In pensione a 58 anni dal 2008
il governo scrive la sua riforma" (February 26, 2007)

United States Senate: Bills Introduced To Help Older Workers and Businesses Hiring Them

Two bills have bene introduced in the U.S. Senate by Sen. Herb Kohl (D-WI) to benefit older workers and businesses in America. The first, "he Older Worker Opportunity Act of 2007" (S.708), pa tax credit for businesses that employ older workers (ages 62 and up) in a "flexible work program," which must provide a full- or part- time flexible work schedule and full pension and health care benefits. The credit equals 25 percent of an older worker's wages, and expires after 2010.

The second, the Health Care and Training for Older Workers Act (S.709), would extend COBRA health insurance from the time of retirement (ages 62 and up) until seniors become eligible for Medicare at age 65, as well as improves access for seniors to federally-funded job training programs. In addition, the bill would establish through the Department of Labor a clearinghouse of best practices in the private and public sectors for hiring and retaining older workers.

Source: Senate Special Commitee on Aging Press Release (February 28, 2007)

GAO Forum Discusses Engaging and Retaining Older Workers

The U.S. Government Accountability Office (GAO) has issued a report summarizing a forum it convened in December 2006 to address the issues surrounding engaging and retaining older workers. Participants included experts representing employers, business and union groups, advocates, researchers, actuaries, and federal agencies.

Issued contemporaneosly with the Comptroller General's testifying at teh Senate Special Committee on Aging's hearing on the topic, the report--Highlights of a GAO Forum: Engaging and Retaining Older Workers--summarizes the ideas and themes that emerged at the forum, the collective discussion of participants, and comments received from participants based on a draft of the report. Among other things, forum participants discussed obstacles, best practices, and lessons learned from programs to help those older workers who can to work longer and better prepare for retirement, and considered strategies for encouraging organizations to implement practices that will result in more opportunities for older workers:

Key Obstacles: Some employers' perceptions about the cost of hiring and retaining older workers are a key obstacle in older workers' continued employment; total compensation and training costs were seen as primary concerns. Workplace age discrimination, the mismatch of workers' skills and availability of jobs because of changes in the economy, as well as the need to keep skills up to date, are all challenges facing older workers. There is a more limited pool of interested workers because of financial incentives to retire as soon as possible, workers' desire to retire or change careers, and some jobs' requirements that make continued work unappealing or unfeasible because of health issues. Legal and regulatory requirements hinder hiring and retaining older workers.

Best Practices and Lessons Learned: Participants shared examples of best practices and lessons learned, such as (1) use nontraditional recruiting techniques such as partnerships to help identify and recruit older workers; (2) employ flexible work situations and adapt job designs to meet the preferences and physical constraints of older workers; (3) offer the right mix of benefits and incentives to attract older workers such as tuition assistance, time off for elder care, and employee discounts; (4) treat all employees in a fair and consistent manner and employ a consistent performance management system to prevent age discrimination complaints; and (5) provide employees with financial literacy skills to ensure they have a realistic plan to provide for retirement security.

Strategies: (1) Conduct a national campaign to help change the national mindset about work at older ages. (2) Hold a national discussion about what "old" is to help change the culture of retirement. (3) Strengthen financial literacy education to help workers prepare to retire. (4) Create a clearinghouse of best recruiting, hiring, and retention practice for older workers. (5) Make the federal government a model employer for the nation in how it recruits and retains older workers. (6) Create a key federal role in partnerships to implement these strategies. (7) Consider specific legislation or regulations to increase flexibility for employers and employees to create new employment models.

Source: U.S. Government Accountability Office Abstract (February 28, 2007)

U.S. Senate Aging Commitee Hears Testimony on Economic Impact of Aging Workforce

On February 28, the Senate Special Committee held a hearing at which two high-ranking Federal officials testified about the economic consequences of an aging workforce. The hearing, entitled "The Aging Workforce: What Does it Mean for Businesses and the Economy?", also featurerd witnesses who addressed ways in which businesses can implement flexibility in the workplace in order to prevent a brain drain as seniors retire and who discussed supporting older learners who want to remain in the workforce.

In his opening remarks, Senate Aging Chairman Herb Kohl (D-WI)said that "surveys show that while most employers are aware of the looming brain drain, they are not prepared for it." However, he went on, "{w]e can’t afford to wait until the retirement wave is upon us. We must encourage businesses to adopt policies now to attract and retain older workers as they are confronted with the coming labor force shortage. And the message could not be more urgent, as time is short: the first of the Baby Boom generation will reach retirement age next year."

Also testifying (with links to their statments) were:

• David Walker, Comptroller General, US Government Accountability Office, Washington, DC, who presented the GAO's report on the "Comptroller General's Forum on Engaging and Retaining Older Workers"
• Donald Kohn, Vice Chairman, Board of Governors of the Federal Reserve System, Washington, DC, who testified that economic growth could decline significantly to 2.2 percent by 2015 as a direct result of the declining labor force participation of our aging society.
• Marcie Pitt-Catsouphes, Director, Center on Aging and Work/Workplace Flexibility, Chestnut Hill, MA
• Javon Bea, President and CEO, Mercy Health System, Janesville, WI, a company currently ranked the #1 employer for older workers by AARP.
• Preston Pulliams, District President, Portland Community College, Portland, OR

Source: Senate Special Committee on Aging Press Release (February 28, 2007)

Other Sources: Los Angeles Times "Senators search for ways to keep boomers on the job" (March 1, 2007)

Expert Knowledge May Offset the Impact of Old Age in Some Occupations

According to a study published in the February 27, 2007, issue of Neurology®, older pilots performed better over time than younger pilots on flight simulator tests. The results of a three-year longitudinal study by Joy L. Taylor, PhD, Quinn Kennedy, PhD, Art Noda, MS and Jerome A. Yesavage, MD were published in "Pilot age and expertise predict flight simulator performance". Among other things, the authors found that "while older pilots initially performed worse than younger pilots, older pilots showed less of a decline in overall flight summary scores than younger pilots, and over time their traffic avoidance performances improved more than that of younger pilots."

“These findings show the advantageous effect of prior experience and specialized expertise on older adults’ skilled cognitive performances,” said study author Joy L. Taylor, PhD, with the Stanford/VA Aging Clinical Research Center in Palo Alto, California. “Our discovery has broader implications beyond aviation to the general issue of aging in the workplace and the objective assessment of competency in older workers.”

In the same issue, Joseph I. Sirven and Daniel G. Morrow have an editorial--"Fly the graying skies: A question of competency vs age" suggesting that the study had implications "well beyond aviation," noting the rapid aging of the population means increasing numbers of older workers in critical occupations. As quoted in The San Francisco Chronicle:

"It is time to reconsider fixed age limits for the workplace and consider transitioning to competency-based evaluations of performance," said the editorial authors, Dr. Joseph L. Sirven of the Mayo Clinic and Daniel G. Morrow of the University of Illinois at Champaign-Urbana. "Better simulation techniques need to be developed not only in aviation, but also in medicine and other careers where public safety is at risk.

Source: American Academy of Neurology Press Release (February 26, 2007)

Other Sources: The San Francisco Chronicle "Experience tops youth in study on aging pilots" (February 27, 2007); HealthCentral.com "Pilot Study Questions Wisdom of Mandatory Retirement" (February 28, 2007)

Singapore: Older Men Making Greater Gains than Older Women

Singapore has set a record high proportion of the older population in the labour force and in employment. Key findings of an occasional paper on "A Statistical Profile of Older Workers" from the Ministry of Manpower's Research and Statistics Department show that both the participation and employment rates of older males in Singapore compare favourably to countries in the region and beyond and that while older females have also made significant gains, their participation and employment rates are still relatively lower than in many developed countries.

Specifically, the participation rate among resident males aged 60 to 64 rose from 49% in 1996 to 63% in 2006, while among females in the same age group, the rate rose from 15% to 26%. For men, that is significantly higher than participation rates in Hong Kong (45%), Taiwan (47%), Germany (41%), Netherlands (31%), France (19%), the United Kingdom (56%) and the United States (59%).

Among other findings, older workers were more likely to be self-employed (26%) than the younger cohort (12%), older workers have a lower incidence of switching jobs, and full-time older workers tend to work longer hours compared to those younger.

Source: Ministry of Manpower Press Release (February 22, 2007)

United States: Federal Reserve Bank Study of Aging Demographics Suggests Retaining Older Workers Can Help Reduce Decline in Consumption Rates

In a paper discussing the consequences of population aging from a macroeconomic perspective and considering alternative paths the U.S. economy could follow in response to population aging, three Federal Reserve Bank economists conclude that, barring a significant increase in labor force participation, population aging will lead to a reduction in per capita consumption relative to a baseline in which the demographic composition of the population does not change.

Among other things, Louise Sheiner, Daniel Sichel, and Lawrence Slifman suggested that an alternative to reducing consumption is to raise output by increasing labor force participation and presented the results of simulations with higher labor force participation by the elderly. Accordingly, one of the main macroeconomic policy questions for the nation is "How much can we (and should we) raise labor force participation?"

In all likelihood, a rise in participation rates for workers aged 55 and over would be necessary. An increase of this magnitude would probably require major adjustments to both business and government policies. For example, businesses could re-structure their operations to include more opportunities for part-time or flexible work schedules, which are often appealing to older workers, or the government could make adjustments to such things as the age at which workers are first entitled to receive Social Security benefits (the early retirement age) and the age at which they are eligible to receive Medicare as well.

Source: The Federal Reserve Bank Finance and Economics Discussion Series 2007-1: "A Primer on the Macroeconomic Implications of Population Aging" (January 16, 2007)

European Court Upholds Collectively-Bargained Mandatory Retirement Age

Jan Mazak, an Advocate-General of the European Court of Justice, has rendered an opinion that European law allows individual countries to pass legislation permitting mandatory retirement ages. Thus, a provision in the Spain's discrimination laws that effectively allows employers to force staff to retire at 65 is compatible with European law.

The dispute was brought by Félix Palacios de la Villa against Cortefiel Servicios SA, in which Mr Palacios claims that his dismissal on the ground that he had attained the compulsory retirement age laid down in a collective agreement was unlawful. However, the Advocae-General ruled that the European principle of non-discrimination on grounds of age does not preclude a national law pursuant to which compulsory retirement clauses contained in collective agreements are lawful, where such clauses provide as sole requirements that workers must have reached normal retirement age and must have fulfilled the conditions set out in the social security legislation of the Member State concerned for entitlement to draw a retirement pension under the relevant contribution regime.

This decision particulary attracted attention in the United Kingdom.

Although [the] case concerns collective employment agreements, which are much less common in the UK than elsewhere in Europe, lawyers said that the legal opinion also applies to individual contracts and so the case is directly relevant to British workers.

James Baker, an employment lawyer at Macfarlanes, said: “This opinion will disappoint thousands of workers in the UK who are pinning their hopes on a legal challenge to the mandatory retirement age.

Source: European Court of Justice Opinion of Advocate General C-411/05 Palacios de la Villa (February 15, 2007)

Other References: The Times of London "Blow for workers as European court says mandatory retirement is lawful" (February 15, 2007)

U.S. Senate Schedules Hearing, Webcast on Aging Workforce

The U.S. Senate Special Committee on Aging held a hearing on February 28, 2007 on "The Aging Workforce: What Does it Mean for Businesses and the Economy?" Chairman Herb Kohl chaired the meeting held at 10:30 a.m. in Dirksen 628. A webcast is available from the Committee's website.

The Center on Aging & Work/Workplace Flexibility at Boston College had announced that Dr. Marcie Pitt-Catsouphes was invited to testify at the hearing on the effect of the aging workforce on businesses, best practices that promote workplace flexibility, and the extent that employers are prepared for the aging workforce.

Sources: Senate Special Committee on Aging Home Page; Center on Aging & Work/Workplace Flexibility at Boston College Home Page

United Nations: Older Workers Part of Agenda for Commission for Social Development

On February 7, the United Nations Commission for Social Development opened its 45th session on promoting full employment and decent work for all. Among other things, the Commission will review the Madrid International Plan of Action on Ageing, five years after it was adopted at the Second World Assembly on Ageing.

Under-Secretary-General for Economic and Social Affairs, José Antonio Ocampo, said that strong economic growth in 2006 had not led to substantial reductions in unemployment rates and included older workers among those facing increasing insecurity in the workplace and shrinking opportunities for decent work. Han Schölvinck, Director, Division for Social Policy and Development, Department of Economic and Social Affairs, noted that a report on the nearly five years since the Second World Assembly on Ageing showed that there are tremendous challenges facing the world’s rapidly ageing populations and observed that the active participation of older persons in society was impossible without protecting their rights and fighting against age-based discrimination and making concerted efforts to empower them.

Among the documents prepared for the Conference, the Report of the Secretary-General on Promoting Full Employment and Decent Work for All found:

104. The number of older persons remaining employed varies considerably around the world. Countries with high per capita incomes tend to have lower labour force participation rates among older persons. Older persons in less developed regions continue to participate, to a great extent, in the labour force, owing largely to the limited coverage of social security schemes and the relatively low guaranteed incomes.

105. Unfortunately, older persons face discrimination in employment. Older persons should have the opportunity to work or to have access to other income-generating opportunities as well as to determine when and at what pace to withdraw from the labour force. Continuing educational opportunities and opportunities to update skills could help to empower older persons to decide for themselves when to leave the labour force. In order to fully empower older persons to leave the labour force when they want to, pensions and health care should be available to them so that they are not forced to work for survival.

Source: U.N. Economic and Social Council Press Release (February 7, 2007)

Finland: Retirement Age Rising

According to a report in Helsingin Sanomat, studies are showing that since the 2005 pension reform, which allowed a person aged under 68 to stay at work and be covered by pension insurance, the retirement age of Finns has been rising. "Fewer people aged 63 to 65 take retirement than previously, and more and more older citizens stay at work, thanks in part to the good employment situation."

The Finnish Centre for Pensions found that in 2006, the expected effective retirement age rose by almost six months for both 25-year-old and 50-year-old employees alike. In addition, the Labour Force Surveys of Statistics Finland indicate a similar trend, with the employment rate of persons aged 60 to 64 having risen by almost 10 percentage points since 2004.

Source: Helsingin Sanomat "Fewer Finns aged 63 to 65 opting for retirement" (February 9, 2007)

Korea: Government To Raise Retirement Age

According to a report in the Korean Herald, the government plans to raise workers' retirement age as one prong of a strategy to fend off anticipated labor shortages. Another prong is to reduce the length of compulsory military service.

With respect to retirement, the government will push measures to extend the retirement age by five years--raising the age for receiving public pension payments by five years to 65 by 2033; currently, Koreans on average retire at 56.8 years of age. In addition, the government will provide support for employers to allow their workers to retire later and also remove some discriminatory rules against senior workers.

Source: The Korea Herald "Seoul to raise retirement age" (February 6, 2007)

Commentary: Early Retirement Trend Reversing in Australia

Ross Gittins, commenting in the Sydney Morning Herald on the sharp increase in the number of older workers staying in employment, observes that the rise has been caused by men staying in full-time jobs--that is, it represents "men staying in employment and not retiring, rather than men who'd formerly retired being enticed back into the workforce." Women is a different story, as participation by women aged 55 to 64 has been constantly rising as part of the general trend for women to return to or stay in the workforce.

In looking at various explanations for the reversal, Gittins notes that, in earlier times, a lot of the supposed early retirement was involuntary, while more recently there's been a lot fewer involuntary departures from the workforce. In addition, he notes that "the now ageing baby boomers are healthier and better educated than the generation that preceded them" so that "they may have higher expectations for retired comfort than could be satisfied by just the proceeds of the age pension." Finally, while he believes that prejudice against older workers is dissipating rapidly, this is "less because of the sermons than because of the shortage of experienced, steady workers. Market forces strike again."

Source: Sydney Morning Herald "Another myth bites the dust" (February 7, 2007)

Webcast--February 14: "Retaining the Energy and Expertise of Experienced Employees"

The Human Capital Institute (HCI) is hosting a free webcast on February 14 from 2:00 PM to 3:30 PM EST will explore proven techniques for developing, motivating, and managing an aging workforce with highly valuable skills and experience. William C. Byham, Ph.D., will present "70 Is the New 50: Retaining the Energy and Expertise of Experienced Employees," addressing the elements of a retirement management system, how retirement fits into a broader talent management system, and how to effectively implement a successful retirement management program.

To register for the webcaset, click here. Following the event, HCI archives its webcasts.

Source: Human Capital Institute Press Release (January 30, 2007)

Study: Links between the Work and Health of Older Women Go Unexplored

A report issued by Help the Aged and The Age and Employment Networks (TAEN) hows how little is known about the work and health of older women. According to the findings of of the paper--"Older Women, Work and Health--reviewing the evidence", greater commitment to age and gender equality is needed in occupational health research, the organisation of work, workplace health interventions and in the framing of wider social policy if the needs of older working women are to be met.

Pamela Holmes, healthy ageing spokeswomen for Help the Aged, says: “We believe taking action in mid-life is vital to preventing deprivation and to reducing the risk of ill health in old age. Women live longer than men, but earn far less, with lower levels of savings and pension provision. It’s critical that women who need or want to work in their 50s and beyond should be able to so – and for work to be beneficial rather than detrimental to their health.

“We hope the publication of this report will help draw attention to the gaps in our knowledge in this important area. We urge government, employers, occupational health professionals and researchers to take steps to address the issues raised.”

Source: The Age and Employment Network (TAEN) Press Release (November 7, 2006)

Aging Population Could Stall Economic Development in New Hampshire and New England

According to a report prepared by Northeastern University’s Center for Labor Market Studies, New England’s aging population could stall economic development and job growth in the future and the numbers are particularly significant in New Hampshire, which the report indicates has a larger and more rapidly growing share of the older population.

Released as part of The New England Council’s Older Worker Initiative, the report forecasts, among other things, that from 2005 to 2015, about 90% of the net increase in the size of the New Hampshire resident working age population will be from among those aged 55 or above and that the share of persons in the working age population of teens and young adults will fall by 2% and that of older prime age workers (ages 35 to 54) will decline by 6%.

“As the baby boom generation enters retirement age, New England employers will become increasingly dependent on older workers – those aged 55 and above – to meet the demand for skilled workers. The ability to retain and recapture these older workers in the labor force will be critical to the long-term economic prosperity of the region,” said James Brett, president and CEO, of The New England Council, the nation’s oldest regional business organization.

Source: The New England Council Press Release (January 31, 2007)

Urban Institute Research Assess Impact of Raising Social Security Retirement Age

Research from the Urban Institute's Retirement Policy Project looking into proposals that would raise the age at which workers can first receive Social Security retirement benefits suggests that lifetime benefits for all groups would be lower, but less so for those with lower lifetime earnings and less education. However, it would push more retirees into poverty: raising the age to 69, for example, would increase the share of retirees with incomes below the wage-indexed poverty level in 2050 from 14.4% under the current system to 16.2% percent, an increase of 1.5 million people.

The Urban Institute's research is included in five separate research briefs. One--"How Long Do Boomers Plan to Work?" by Gordon Mermin, Richard W. Johnson, and Dan Murphy--finds that as boomers approach retirement, "they intend to work longer than people born a dozen years earlier did, a shift that will help promote economic growth and partly offset the economic pressures created by an aging population." Among workers ages 51-56 in 2004, 51% said they expect to work past age 62, up from 47% among comparable workers in 1992.

The other four reports are:

• "Would Raising the Social Security Retirement Age Harm Low-Income Groups?"
• "Minimum Benefits in Social Security: Design Details Matter"
• "Minimum Benefits in Social Security Could Reduce Aged Poverty"
• "Racial Differences in Baby Boomers' Retirement Expectations"

Source: Urban Institute Press Release (January 30, 2007)

Survey: Older Workers Have Fewer Injuries, but Greater Costs per Injury

According to a survye conducted by National Council on Compensation Insurance, Inc. (NCCI), on average, younger workers have higher incidence rates of workplace injuries and illnesses than older workers, while older workers have higher costs per claim. As the leading edge of the baby boomer generation approaches age 60, the aging of the workforce has grown as a topic of interest in workers compensation. However, NCCI's research shows that age may be becoming less of a difference. Specifically, the survey--"Age as a Driver of Frequency and Severity"--found, among other things, that:

• while age is an important factor in overall claim costs, the significance of age on frequency has diminished;
• a significant portion of the differences in claim severities between younger and older workers were accounted for by other factors correlated with age—average wages, claim durations, lump-sum payments, injury diagnoses, and number of medical treatments;
• differences in wages and claim durations accounted for a majority of the difference in indemnity severities between younger and older workers; and
• the key driver explaining about 70% of the difference in medical severities between younger and older workers is the markedly higher number and different mix of treatments within a diagnosis.

Source: National Council on Compensation Insurance, Inc. News Release (January 25, 2007)

Survey: Tenure Rather than Age Major Factor in Workplace Enthusiasm

According to a survey conducted by Sirota Survey Intelligence, the differences one finds at work between older and younger people are largely a result of tenure--not age, thus, debunking, according to Sirota, the myth that there are major differences between generations in what people want from their jobs.

Sirota examined the overall satisfaction expressed by 64,304 workers in employee attitude surveys the firm conducted for their employers. Both younger (aged 25-34) and older (55 and older) employees showed a sharp decline in their satisfaction from their first year of employment--from 69% in both cases to 54% and 53%, respectively, among those with 2 to 5 years’ experience.

Source: Sirota Survey Intelligence News Release (January 22, 2007)

European Year for Equal Opportunities for All Launches

The 2007 European Year for Equal Opportunities for All (EYEO), which kicks off in Berlin on January 30th at the first ever Equality Summit, launched its website and published the results of an EU survey on anti-discrimination. The survey--Special Eurobaromter: Discrimination in the European Union--highlights that awareness of the existence of anti-discrimination laws (on grounds of sex, ethnic or racial origin, age, sexual orientation, disability, religion or belief) is still relatively low in the EU.

Among other results, the survey shows that a broad majority of Europeans believe that being over 50 (69%) is a disadvantage in their society, and many also believe that more people over 50 (72%) are needed in the workplace.

When it comes to getting a job, disability and age are the two main factors which Europeans believe put people most at a disadvantage. Close to 8 out of 10 respondents feel that with equivalent qualifications, a person aged 50 or over stands less chance when it comes to employment or promotion compared with a person aged under 50, and similarly a disabled person compared with an able-bodied person. Many respondents (68%) believe that, for women, family responsibilities are an obstacle to accessing management positions. Support for this view is particularly strong in Spain and Germany (both 76%).

Source: Employment, Social Affairs and Equal Opportunities News Release (January 23, 2007)

Recruiting: Web Sites for Attracting Baby Boomers

A posting on the ere.net's Inside Recruiting blog discusses how some niche job boards and staffing agencies are helping a growing number of companies in trying to penetrate the boomer demographic to fill key staffing shortages and maintain a competitive edge. These incclude:

• The Refirement Group, which works to help redefine the attitudes and expectations of the boomer workforce through workshops and consulting.
• Continuing Careers.com, a niche job board, which posts jobs and directs applicant to the company's website.
• The Boomer Group, a staffing company that matches boomers looking for either part-time or full-time work with employers who need experienced help.

Source: Inside Recruiting "Catering to the Boomer Crowd" (January 26, 2007)

United Kingdom: Flexibile Retirement and Pensions

Age Positive has issued a news release stating that, since the pension provision of the United Kingdom age regulations came into force on 1 December 2006, concerns have been expressed with regards to flexible retirement not being adequately covered by the regulations or accompanying guidance. In particular, points have been raised about the ability of employers and schemes to alter accrual or payment in the light of working beyond normal retirement age. According to the Department for Work and Pensions (DWP), this is a complex and developing area and it intends to examine whether it is possible to provide greater certainty where flexible retirement and pensions is concerned.

In conjunction, Age Positive has published a report--Flexible Retirement: A Snapshot of Employer Practices 2006--produced for DWP by Employers Forum on Age (EFA) and IFF Research Ltd. The findings include a practical guide (a checklist) for employers who may wish to take advantage of the rule changes in order to deliver flexible retirement options for their employees. In addition, it the report includes a small number of case studies illustrating how some large employers developed (or are in the process of developing) flexible retirement policies.

Source: Age Positive News Release (January 17, 2007)

Canada: Minister Appoints Expert Panel to Study Labour Market Conditions that Affect Older Workers

Monte Solberg, Canada's Minister of Human Resources and Social Development, has announced the appointment of an expert panel to study labour market conditions affecting older workers. The Panel will look at potential measures to help older workers, including improved training and enhanced income support, such as early retirement benefits.

"The fact is that seniors and older workers have helped build this country," said Minister Solberg. "Our population is ageing and we are facing labour shortages. Now is the time to look at issues faced by older workers and make sure that they have the knowledge and tools they need to contribute to a strong Canadian work force."

The objective of the panel is to undertake a feasibility study on older workers as outlined in Budget 2006: "...conduct, in partnership with provinces and territories, a feasibility study to evaluate current and potential measures to address the challenges faced by displaced older workers, including the need for improved training and enhanced income support, such as early retirement benefits."

The panel, chaired by the Honourable Erminie Cohen, a retired Senator, is to provide a report on various matters outlined in a background statement, along with recommendations on potential government and stakeholder actions, to the Minister by the summer of 2007.

Source: Human Resources and Social Development News Release (January 23, 2007)

Paper Establishes Index for Age Bias in the Workplace

RetirementJobs.com, a web destination for people aged 50 plus, has published a research paper based on results from the company's ongoing online survey of mindsets and practices of employers and 50 plus workers related to real and perceived age-bias. According to "Age Bias in the American Workplace: A "Fact of Life" Enters Its Own Phased Retirement", employers are three times more likely (36%) to report that "age bias is declining" compared to only 12% of workers, while 96% of workers believe age bias to be a problem, a smaller number, 77% of workers "actually have experienced or observed" workplace age bias, and only 17% of employers are believed to be making "a conscious effort to attract workers 50 and over."

"Workplace age bias is undergoing its own phased retirement," says Tim Driver, CEO of RetirementJobs.com. "Older employees are electing to work longer than planned. Employers, meanwhile, increasingly understand the merits of retaining and hiring workers that connect with customers, are dedicated, turn over less often (than younger employees), and hold valuable lessons learned from their prior careers." The report cautions that a symbiotic worker/employer relationship is "vital in healthcare, retail, customer services, sales, financial services, the crafts and trades, engineering, skilled manufacturing, the sciences, education and in government. These areas are already experiencing a shortage of workers while also facing large numbers of retirements in the next several years."

In its paper, RetirementJobs.com has established the an Age Bias Index to serve as a barometer by which developments in the status and perceptions of age bias among employers, employees, and the general population may be measured.

Publication of the paper also coincides with RetirementJobs.com's clarion "call to action" to confront and reduce workplace age bias.

Source: Retirementjobs.com Press Release (January 23, 2007)

Study: Graying of Workforce May Be Leading to Graying of Health Insurance

According to study, published in the November-Decemer 2006 issue of Health Affairs,, trends are leading to the "graying" of the employment-based health insurance system, where older, higher-income people get private health insurance, and others increasingly have public coverage or go without.

According to Patricia Keenan, Ph.D., lead author of the article and assistant professor at the Yale School of Public Health, “Older, more affluent people are more likely to keep their employer-based coverage as premiums rise while others increasingly get public coverage or go without altogether. . . . Population aging combined with declines from rising premiums could further destabilize the employment-based health coverage system.”

She said private coverage has been in a slow decline since the late 1980s and younger and lower-income groups have disproportionately lost coverage. Keenan said even if the population with employment-based coverage remains quite healthy, costs of coverage could increase as the average age of people with group coverage rises.

Although the main driver of rising premium costs is ongoing changes in medical technology, Keenan said, there is the possibility that population aging will interact with ongoing differential declines in group coverage to add to ongoing increases in premium costs.

Full text of the article "The ‘Graying’ Of Group Health Insurance" is available for purchase online.

Source: Yale School of Public Health News Release (January 5, 2007)

Survey: Vanguard Research Shows Continued Work Figures Large in Retirement Planning

The Vanguard Group's The Vanguard Center for Retirement Research has published "Six Paths to Retirement", which highlights the importance of financial preparation and saving in determining the transition from work to retirement: While those with the financial resources look forward to possible paths with a flexible work arrangement or no work at all, for those who are short on retirement savings, work in some form will play an important role in helping close the savings gap.

The report is based on both a quantitative survey of some 2,500 adults age 40 to 69 and on in depth interviews with 38 men and women, age
40 to 75. From the larger survey, Vanguard reports 6 in 10 Americans say that their retirement plans include part-time or full-time work, with "downshifting" being a common strategy for making the transition from work to retirement--that is, older workers shift to less stressful or simpler jobs before stopping work entirely. From both parts of the research, Vanguard identified six paths to retirement among Americans 55 and older:

• Early retirees: 29% retired early. In most cases, this group had pensions and high savings balances.
• Work and play: 12% left full-time work in their 50s, but immediately set up their own companies or took on high-level, part-time jobs. They largely enjoy their work and want to stay active.
• Still Working: 35% of workers moved to part-time or self-employment in their 60s. They tend to have lower financial resources, and often lack a pension.
• Returnees: 5% stop working, typically in their 50s, and then are forced to return to the work force, sometimes because of a financial shock like the death of a spouse.
• Spouse's retirement: 9%. Often married women in excellent health, they follow their husband into retirement in their 40s and 50s.
• Never retire: 10%. The majority say they do it to meet basic living expenses.

Source: News Release The Vanguard Center for Retirement Research (January 17, 2007); Associated Press "Retirees Work for Fun or Necessity" (January 18, 2007)

Research Suggests Older Female Employees Less Likely To Receive Training Help

According to research conducted by Dr. Almuth McDowall, professor of occupational psychology at the University opf Surrey, employees who are female and over 50 are more likely to miss out on training opportunities in the workplace than younger male employees because HR managers see older women as offering a poor return on investment.

McDowall presented experienced HR managers in 48 companies with a series of fictional vignettes to test out their decision-making when allocating funding for training and development. When asked to allocate a notional budget of £6000 across four employees and justify their decisions, the characters in the scenarios who were female and over 50 received far less of the available budget than younger male characters; the HR managers justified their decisions in terms of older employees and women being less "investment-worthy" perceiving them to offer a lower return on investment.

In presenting her initial results to the British Psychological Society’s Division of Occupational Psychology Annual Conference, McDowall was quoted as saying "HR managers simply do not recognise they are discriminating against older workers but there is a clear bias towards younger workers when it comes to training." In addition, Richard Smelt, group HR director at Carphone Warehouse, responded with surpise: "I certainly can't see HR managers deliberately discriminating against older workers, but maybe there's a perception that older employees will be more expensive and difficult to train."

Source: Press Release British Psychological Society (January 12, 2007); Personnel Today "HR believes older staff offer 'lower return on investment' in training" (January 16, 2007)

Overcoming Intergenerational Differences in the Workplace

Writing in Jugglezine about how the generations are going at over work protocols, Matt Viland notes that while the employees of today's workforce--who range in age from under 21 to over 65--can bring a variety of perspectives together, bridging generational differences can be quite a challenge. Under the previous paradigm, young folks held entry level jobs and old folks did the managing. Now, as a result of orporate mergers and downsizing, workforces have redistributed and hierarchies have changed--"Older folks, laid off from previous jobs, began seeking entry level positions after switching careers. Younger folks, considerably cheaper than their elders, rose to the top. The result: a generational melting pot."

Viland points to workplace communication as perhaps being the most obvious difference among the generations. Cam Marston, president of Marston Communications, points out that older employees prefer face-to-face contact, while younger generations embrace less personal options such as e-mail, text messages, and instant messenger. Other differences can be found in work style:

Traditionalists and Baby Boomers, for instance, are accustomed to a workday that revolves around the hours of 9 a.m. to 5 p.m. Gen Xers and Millenials, on the other hand, might take three or four hours of personal time in the middle of the day, but log on from home after dinner and put in the hours they missed.

According to Viland, the first step to overcoming these differences (and others, such as language) is to raise awareness about the things that make each age group unique. This can be done by incorporating age sensitivity into more comprehensive diversity training efforts. Another way to overcome the gap between generations is to embrace it by adopting programs such as reverse mentoring, through which younger employees coach older ones on technological innovations.

Source: Jugglezine "Mixing it Up" (January 10, 2007)

Singapore: Study Shows Employers Prefer To Train Younger Employees

According to an article in Today by Lee U-Wen, a recent study by the Ministry of Manpower (MOM) shows that older workers are being looked over in training opportunities, with companies, instead, prefering to train their younger, more nimble workers.

"This is ... due to the higher opportunity cost or the narrower time horizon of reaping the benefits out of the training programme," said the report, the most extensive study since MOM first tracked training participation back in 2000 and involved some 2,400 people.

Singapore Human Resource Institute executive director David Ang, one of several HR experts interviewed, suggests that companies should give priority to the rank-and-file workers, especially those caught in the web of structural unemployment; the older they get, the less their opportunity for training, but they need the skills more than anyone else so as not to remain stagnant.

Source: Today "Older workers overlooked" (January 12, 2007)

Safety Engineers Include Aging Workforce as Top Focus for 2007

In reviewing 2006 and looking ahead to key issues facing the safety profession in 2007, American Society of Safety Engineers (ASSE) President Donald S. Jones Sr., P.E., CSP, of Plaquemine, LA, noted that the aging workforce, nanotechnology, a possible flu pandemic, disaster preparedness and response, and doctoral programs in safety are among key concerns for ASSE and its members.

With respect to the aging workforce, Jones notes that employers and safety health and engineering professionals must recognize and meet the needs of the changing workforce. To accommodate the changing dynamics in an ongoing effort to reduce fatality rates, businesses should design a safe workplace for the aging workers which could include improving illumination, adding color contrast; eliminate heavy lifts; design work floors and platforms with smooth and solid decking while still allowing some cushioning; reduce static standing time; remove clutter from control panels and computer screens and use large video displays; reduce noise levels and much more.

Source: American Society of Safety Engineers Press Release (December 29, 2006)

Australia: Researcher Looking at Improving Retention of Older Workers

According to Megan Tones--a Queensland University of Technology PhD education researcher who is researching the patterns of learning and development amongst older workers and the type of organisational support that might improve retention rates, Australia's economy cannot afford to have large numbers of older people not working. However, Australians can't wait to leave the workforce once they hit 50 causing a looming labour shortage and the dashing of government hopes that people will work into their 70s.

"It is not just the labour shortage and cost of paying pensions to people for 30 years or more, it is also the fact that people who are engaged in enjoyable work have fewer physical and mental health problems thus reducing health spending," Ms Tones said.

She suggests that the hardest-hit sectors will be education, health and community services, mining, agricultural, forestry and fishing, utilities and transport. Among the reasons for the exodus of older workers she cites are ageist and unsupportive workplaces, easy access to income support through private pensions from 55 onwards, and "quite lax" requirements for the disability support pensions.

Source: Queensland University of Technology Press Release (January 4, 2007)

Japan: "Silver" Workers Seen as Solution for "2007 Problem"

Chisa Fujioka, wrting for Reuters, reports on the growing demand for "silver" workers as Japan's population ages. Shigeo Hirano, president of staffing agency Mystar 60 Corp.--which specializes in finding jobs for those aged 60 and over, says "Japan's best engineers and technicians are leaving factories and offices for retirement."

"Companies are realizing that hiring the elderly is the only way to retain high levels of skills and expertise," added Hirano, himself a sprightly 63.

Fears of a labor crunch and a deficit of skilled workers are growing in Japan as baby-boomers start hitting the standard retirement age of 60 this year, in what Japanese media have dubbed the "2007 problem".

Another major staffing agency reports that both the number of elderly seeking work and the number of companies wanting to hire them have doubled since April 2006.

Source: Reuters "Greying workers wanted for hire in aging Japan" (January 1, 2007)

Norway: First Senior-only Temp Agency Opens

According to a report from Norwegian Broadcasting, Norway has started its first manpower service drawing solely on the resources of older workers. Seniorformidling is the name of the unique bureau that only links employers with workers over the age of 50.

Founder Tor Kristian Johansen says: "Older job seekers often experience being put at the back of the applicant queue, and fall to the wayside because of their age." More and more companies are contacting the senior manpower service, which confirms an emerging trend towards using experienced workers to fill temporary gaps.

Source: Aftenposten "Senior service" (January 2, 2007)

China: White Paper on Aging Issues Published

China is acknowledging the urgent challenges presented by the country's aging population with the publication of a cabinet-level White Paper on the problem, which is part of an effort to grapple with the prospect of rising social-security and healthcare costs, a tightening labour market, and other potential obstacles to continue rapid economic growth.

The White Paper--"The Development of China's Undertakings for the Aged"--released by the China National Committee on Aging addresses a number of topics, including the old-age security system, health and medical care for the aged, social services for an aging society, cultural education for the aged, participation in social development, and safeguarding elderly people's legitimate rights and interests. With respect to Participation in Social Development, the paper calls for giving senior citizens encouragement and support to integrate into society and continue to make contributions to the social development of China.

In urban areas, governments at all levels guide senior citizens to participate in the fields of education and training, technological consultation, medical and health work, scientific and technological development and application, and care for the younger generation, in accordance with the demands of economic, social, scientific and technological development.

In rural areas, governments encourage people in their 60s to engage in farming, aquaculture and processing activities. Statistics show that among the elderly people of China, in urban areas 38.7 percent participate in public welfare activities, and 5.2 percent still have paid work; in rural areas, 36.4 percent are engaged in farming.

Source: People's Daily Online "China faces grim challenges to cope with ageing population" (December 12, 2006); China Central Television China addresses aging issues" (December 12, 2006); The Brunei Times "China grapples with decrepit population" (December 20, 2006)

Canada: New Strategy Sought To Keep Older Workers Working

According to a story by Gloria Galloway for The Globe and Mail, policy poapers from Canada'a Department of Human Resources and Social Development suggest a new strategy to help older workers stay on the job until they are ready to retire, including restructuring the country's inflexible pension plans. Documents that are part of a four-pillared "Framework for Action for Older Workers" urge the national government to "provide more flexible work to retirement transitions by removing the structural and financial disincentives to continue working" and advocate the creation of a "comprehensive range/suite of employment assistance measures for older workers" including more training and employment services.

The documents, which were obtained by Ottawa-based researcher Ken Rubin, say an increased presence of older Canadians in the work force is key to the country's future prosperity. Because of the aging population, the per capita GDP is expected to fall off sharply, beginning in about 2025. "Optimizing older worker participation is the best means to offset labour market declines."

Source: The Globe and Mail "Help older workers keep working, Ottawa told" (December 22, 2006)

South Korea: China and Japan Compete for IT Workers To Replace Aging Workers

South Korea, which is having its own aging problems, is losing a significant number of workers to non-Korean employers overseas due to job shortages, according to DongA.com. Moreover, Korean companies are not making enough systematic efforts to retain workers.

China is eying Korea’s high-tech workforce who they think will boost its industrial growth. Grappling with an aging population, Japan is looking for workers who will help relieve itself of the burden of workforce shortages.
...
Japan is luring more Korean workers to enhance its IT competitiveness and resolve its workforce shortages problem caused by aging. Indeed, the Japanese government and businesses are making hard efforts to recruit Korean and Chinese IT workers under the second-phase “e-Japan” project whose main objective is Japan’s comeback as an IT powerhouse.

Source: DongA.com "China, Japan Inc. Recruiting Koreans" (December 23, 2006)

Virginia: Hampton Roads Area Needs To Plan for Aging Workforce

According to John W. Whaley, deputy executive director of economics for the Hampton Roads Planning District Commission, a rapidly aging population in Hampton Roads will cause a slowdown in the growth of the region's labor force and standard of living. In a presentation to commission members, Whaley said the percentage of older people in the region's population would increase as the baby boomer generation ages into retirement. Also, there are fewer younger people due to low birth rates and more older people due to longer life expectancies.

Officials in Hampton Roads must take action to face the impending shortage of workers, he said, suggesting that companies and policymakers should find ways to retain older workers. He also recommended that cities in Hampton Roads should encourage the in-migration of young people from other areas of the country, if not the world.

Source: Hampton Roads Daily Press "Growth of region's work force may ebb" (December 21, 2006)

Australia: Employers Must Address Health and Safety Issues with Aging Workers

Speaking at the 2006 Sydney Safety Show, Product Development Manager, CGU Safety and Risk Services, Angela Micic told listeners that as Australia faces a growing number of older people working and remaining in the workforce, employers must address the OHS problems this trend presents and implement risk management strategies.

A number of prevention strategies are available to employees to minimise risk associated with the ageing workforce in Australia. Risk management strategies will vary depending on jurisdictional occupational health and safety and workers compensation requirements in conjunction with workplace and workplace requirements. Employers need to ensure that work organisation and job design is suitable for all workers, with attention to older workers. The implementation of some of the preventative strategies may lead to improvements in OHS, reduction in injuries and claims and ultimately an increase in productivity and retention.

Source: Ferret.com "OHS issues facing an ageing population" (Decenber 20, 2006)

Commentary: Age-Adjusted Earnings for Corporations?

Matt Miller suggests in a commentary on American Public Media's Marketplace that to get business' attention on health-care and pension issues, the Democratic Congress should require separate income statements that show what earnings would be if companies had average-aged workers.

These days, the drag on corporations of decent healthcare and pension coverage for an aging American workforce is real. But the idea that a firm's success could depend so much on the youth of its workers is also crazy.

A sane nation would look at how to separate business performance from some social sense of what makes for decent health and pension coverage for every citizen.

Source: Marketplace
"Age-adjusted earnings reports" (December 19, 2006)

California: State Agriculture Must Develop Stable Workforce

Adressing a general session of the California Farm Bureau Federation's Annual Meeting, Victoria Bradshaw, secretary of the California Labor and Workforce Development Agency, told the federation that one of the major challenges that lies ahead in the area of labor is developing a stable agricultural workforce in California and that, unless California's farmers and ranchers do not build careers and vocations in agriculture, they will be left with an aging workforce and not a replenishing workforce.

"Supply has been a major challenge in the last couple of years. One of the reasons agriculture is having a problem is not any different than a lot of other industries," Bradshaw said. "For agriculture though there is a major competitor out there and that is the expanding construction industry. It is growing at a very rapid pace, some in the infrastructure, some in residential housing, but there is a huge demand for labor and they are offering higher wages and long-term employment."

Another challenge she highlighted is training people to work in agriculture. Unless California's farmers and ranchers do not build careers and vocations in agriculture, Bradshaw said, they will be left with an aging workforce and not a replenishing workforce.

Source: California Farm Bureau Federation News Release (December 13, 2006)

Book: Analysis of Aging Workforce and Strategic Concepts for Enterprises to Survive

Research and Markets has announced the addition of "Managing the Aging Workforce: Challenges and Solutions" to their offerings. Co-authored by Marius Leibold, Professor in Strategy at Stellenbosch University, Nitin Nohria, Richard P. Chapman Professor of Business Administration and Senior Associate Dean and Director of Faculty Development at the Harvard Business School, and Sven C. Veolpel, Director of the research group WISE, the book presents an analysis of the present and upcoming situation, and an introduction into the strategic concepts enterprises will need to survive in aging societies.

For companies thus, a number of challenges arise that have to be overcome fast and continuously. The main topics in this field will be new strategies in leadership, new concepts in health management, new ways in knowledge management and learning, as well as new models how to drive ideas for diversity and innovation.

On the one hand, enterprises therefore will have to invest in their aging employees for supporting their talents, helping them to learn and keeping them in the company. On the other, they will have to increase productivity, keep on searching for new products, and integrate experts from abroad. This has to be combined with new ways of strategies and HR management.

"Managing the Aging Workforce: Challenges and Solutions" will be available in the United States in early February. The table of contents is available online.

Source: Research and Markets News Release (December 13, 2006)

FAA Contemplates Raising Mandatory Retirement Age for Pilots, Wall St. Journal Reports

According to an article by Andy Pasztor for the Wall St. Journal, the Federal Aviation Administration, moving away from its longstanding policy that airline pilots must retire at age 60, wants to let them work in the cockpit as many as five years longer. Pasztor reports that after repeatedly opposing similar efforts to change the rules, some U.S. airlines and pilots groups are beginning to soften their stances.

The FAA's apparent change of heart is influenced by the current tight market globally for pilots as well as the lack of recent scientific data demonstrating any clear-cut erosion of safety from extending the careers of pilots, according to one person familiar with the matter. In addition, the Equal Employment Opportunity Commission concluded the 60-year age limit is discriminatory.

In addition, Pasztor writes that keeping the age limit at 60 is becoming more difficult to defend, following a move by the International Civil Aviation Organization to raise retirement ages at airlines world-wide. A spokeswoman for FAA Administrator Marion Blakey said the industry can "expect a decision relatively soon." However, if a proposal is made, finalizing new regulations could take 18 months or more.

Source: Wall St. Journal "FAA Set to Raise Retirement Age For Pilots to 65" (December 11, 2006 (subscription required)

Massachusetts Facing Shrinkage of Prime Working Age Populaton

A study released by the Massachusetts Institute of a New Commonwealth (MassINC) and the Center for Labor Market Studies at Northeastern University has found that the Massachusetts labor force declined by 1.7% from 2003 to 2005 while the national labor force expanded by 3.1% and that most of those who left the labor force were men in two age groups--16- to 24-year-olds and 35- to 54-year-olds.

Thus, according to the study--“Mass Economy: the Labor Supply and Our Economic Future”--one fo the three critical factors for growth in the economy will be incorporating more older workers into the workforce. The combination of the aging of the baby boom generation the declining number of workers in what is considered the “prime working age years” (25-54 years old) will have the result that, in particular between 2010 and 2015, the graying of the Massachusetts labor force will accelerate further.

Source: MassInc and Center for Labor Market Studies Research Report (December 2006)

Other Sources: The Enterprise "Shrinking labor force threatens region" (December 10, 2006); Worcester Telegram "Report says Massachusetts is losing workers" (December 10, 2006)

Halogen Software Introduces Succession Planning Software

In introducing a new version of its Halogen Employee Performance Management Suite, Halogen Software announced that Halogen EPM Suite 8.0 includes Halogen eSuccession™--a succession planning tool based on talent pools. Pointing out that, as millions of baby boomers approach retirement, succession planning is becoming an increasingly urgent business issue, Halogen suggests that eSuccession allows managers to understand their workforce's potential and areas of retention risk, proactively develop employee performance and fulfill succession requirements with the right candidates from talent pools of people ready to meet the task head on.

"The aging workforce is a concern for all organizations. Our goal is to develop the talent of our employees and to prepare them for advancement." said Debbie Clark, senior HR generalist with Oil States International. "Halogen eSuccession is a means to get everybody, from the top down, involved in the process of planning for our organization's future."

Source: Halogen Software Inc. News Release (December 11, 2006)

United Kingdom: Participation in Defined Benefit Schemes Falls, Retirement Age Rises

The Office for National Statistics (ONS) has reported that membership of employer-sponsored defined benefit pension schemes fell from 39% 35% of employees between 2004 and 2005--down from 46% in 1997, when recordkeeping began. Membership of defined contribution schemes increased from 10% to 15% of the working-age population between 1997 and 2005, driven by increases in membership of group personal and stakeholder pensions.

The ONS publication Pension Trends has been updated to reflect this data. In addition, it shows that the average age at which male and female workers withdraw from the labour force is rising. In 2006, it was 64.2 years for men, the highest level since 1984, when data first became available. The average age for women was 61.8 years, the second-highest
on record.

In addition, employment rates of older men and women rose in spring 2006 to the highest levels since comparable records began in 1984. For men aged from 50 to under 65, the employment rate was 72.6% and for women aged from 50 to under 60, it was 67.9%. For men over that state pension age, the employment rate was 9.6% and for women, 11.1%.

Source: National Statistices News Release (Decenber 5, 2006)

Survey: Alabama Firms Not Prepared for Retirement

According to a survey of 348 Alabama employers conducted for the AARP, while 95% percent say it is no less than “very important” for their organization to retain skilled employees, only 11% report having taken actions to prepare for the retirement of baby boom workers.

The report--Alabama Survey of Employers’ Practices for Managing An Aging Workforce--found that in order to accommodate workers interested in working beyond normal retirement age, employers were were planning or considering: (1) enabling employees to ease into retirement by reducing their work schedules (49%); (2) hiring retired employees (47%); (3) providing part-time work arrangements without continuation of benefits (45%); and (4) upgrading training (43%).

Source: AARP Policy & Research Research Report (August 2006)

Other Sources: The Huntsville Times "Too few firms in state are planning for retirement" (December 3, 2006); The Montgomery Advertiser Survey: Firms not ready for boomers' exit (December 5, 2006); The Birmingham News "Baby boomers reaching point of mass retirement" (December 1, 2006)

United Kingdom: Companies Urged To Recruit Older Workers

Taleo, a provider of on demand talent management solutions, and The Age and Employment Network (TAEN) have jointly published a white paper--"Tapping into the Older Worker Talent Pool”--that highlights the opportunity for companies to address the looming skills crisis by recruiting older workers, and provides step by step advice on how companies can execute this strategy.

Despite the the demographic trends in the UK with an ageing workforce that is causing a general shortage of skills, many organisations retain significant biases and misconceptions about recruiting older workers. According to the white paper, "practical recruitment strategies that take advantage of the growing talent pool of older workers will therefore be increasingly critical in creating a competitive workforce in the UK." Specifiically, TAEN and Taleo Research recommend that employers:

• Consider where you are advertising your job opportunities
• Word your job opportunities carefully
• Capture candidate data on compliant, electronic application forms
• Drive the selection process based on skills
• Consider re-skilling or up-skilling new or existing employees

Source: Taleo Press Release (November 30, 2006)