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Wednesday, April 02, 2008

Research: Aging Workforce Requires Business to Rethink Working Lives

Early research into the effects of an extended working life and the challenges and opportunities that an older workforce will generate suggests that--in terms of job performance, wellbeing and skills--older workers are a much less homogenous group than younger workers. According to Professor Philip Taylor, director of the Business, Work and Ageing Centre for Research at Swinburne University of Technology, there is an increasing variation in people’s abilities as they get older and management may need to hink in terms of preparing workers when they are younger, for a longer working life.
"Policy around ageing workers needs to be about maintaining the ‘work ability’ of people throughout their life-course--not just once they are older," Professor Taylor says. "It’s about life-long learning and about how factors such as job design, work environment and skills training determine the condition in which workers arrive at the age of 50."
Among other things, Taylor says that the assumption that older workers are not interested in, or capable of, further training, is baseless, but there is evidence that "older workers prefer a different style of training than younger workers. For instance, they prefer hands-on practical training rather than classroom-style training."
Professor Taylor says another major issue for older workers is a sense of exclusion from the workplace. "Our research shows that older workers often feel they are being pushed out by not being invited to take part in training, meetings or other workplace events." This will become an increasing issue as more workers take advantage of transition-to-retirement arrangements that allow them to work part-time. "Part-time work is often not seen as real work. Managers need to be re-educated to respect different kinds of working arrangements and accept that older workers have a great deal to contribute to the workplace."
Source: Swinburne Magazine "Longer work life needs management re-think" (March 2008)

Also, see Philip Taylor (Editor), Ageing Labour Forces: Promises and Prospects (2008)

Wisconsin: Census Bureau Issues Profile of the Older Worker

In a continuation of its partnership with 31 states on a series of reports on workers 55 and older, the Census Bureau has released its report on Wisconsin, the ninth state to be released in the series.Among the highlights of the report--"The Geographic Distribution and Characteristics of Older Workers in Wisconsin: 2004":
  • 14.3% of workers were 55 and older, while 3.2% were 65 and older;
  • the real estate and rental and leasing industry had the highest proportion of workers 55 and over (19.6%), and no individual industry employed more than 20% of workers who were over 55; and
  • the state's manufacturing industry employed the greatest number of older workers, with about 22.7% of the workers 55 and older being in that sector.
Source: U.S. Census Bureau Longitudinal Employer-Household Dynamics What's New (April 1, 2008)

Colorado: Census Bureau Issues Profiles of the Older Worker

In a continuation of its partnership with 31 states on a series of reports on workers 55 and older, the Census Bureau has released its report on Colorado, the eighth state to be released in the series.Among the highlights of the report--"The Geographic Distribution and Characteristics of Older Workers in Colorado: 2004":
  • 13.2% of workers were 55 and older, while 2.9% were 65 and older;
  • the utilities industry had the highest proportion of workers 55 and over (19.9%), and no individual industry employed more than 20% of workers who were over 55; and
  • the state's retail trade industry employed the greatest number of older workers, with about 13.9% of the workers 55 and older being in that sector.
Source: U.S. Census Bureau Longitudinal Employer-Household Dynamics What's New (April 1, 2008)

Additional Source: Rocky Mountain News "Work force in Colorado graying around the edges" (April 8, 2008)

Tuesday, April 01, 2008

U.S. Economic Troubles Leading to Delays in Retirement

Writing for the Wall Street Journal, Jennifer Levitz reports that "many aging Americans are delaying retirement, electing labor over leisure in uncertain times" as the falling real-estate and stock markets erode their savings. Among other things, she notes how as houses decline in value, fewer people feel confident enough to retire, even if they plan to continue living in them, and as the stock market declines, older workers don't have years to make that up. As a result, they worry that their investments will diminish to the point that they won't have enough money to get through retirement.In addition to anecdotal evidence, she writes:
In February, the proportion of people ages 55 to 64 in the work force rose to 64.8%, up 1.5 percentage points from last April. That translates to more than an additional million people in the job pool, according to the U.S. Labor Department. The ranks of those 65 and over in the work force rose to 16.2% from 16% in the same time span -- meaning 212,000 more hands on deck. So far, the numbers for March continue to show a "sharp" increase, says Steve Hipple, a department economist.
Levitz also reports that investment advisers and retirement planners at more than a dozen firms "say they are seeing large numbers of older workers put off retirement as the housing and stock-market troubles have deepened."

Source: Wall St. Journal "Americans Delay Retirement As Housing, Stocks Swoon" (April 1, 2008); also reprinted in Atlanta Journal Constitution (April 1, 2008)

Virginia: Older Dominion Project Releases Survey, Starts Workgroup on Aging Workforce

The Older Dominion Project (ODP), a non-profit initiative by Virginia businesses, government, foundations, and non-profits to help Virginia ride the age wave created in 2007, has released its ODP Residents' & Business Leaders Studies, indicating broad interest across both Virginia's residents and businesses in starting to prepare now for the coming demographic tsunami. Businesses, in particular, are aware of and concerned about the attendant workforce issues:
Business leaders see the aging workforce and impending retirement of aging baby boomers as an issue for Virginia. Sixty-five percent (65%) of Virginia business leaders say the "aging workforce" is a serious issue facing the entire economy--with a third (35%) saying it is a "very serious issue." Two in five (41%) feel the aging workforce is a serious issue for their own organization. In addition, two-thirds (65%) feel that the retirement of a large number of workers in the future is a serious issue for the economy and a third (35%) feel this issue will have a significant impact on their company. Half of business leaders (47%) feel their organizations are prepared to accommodate older workers today. Yet, two in five business leaders (42%) say they are prepared when it comes to knowledge transfer (from one generation of workers to the next).
The surveys were released at an ODP meeting in which five workgroups were organized to tackle the identified issues. As described in the ODP Work Group Initiatives, Workgroup No. 4 is the Workforce Readiness Work Group. This group is charged with "putting plans and policies in place . . . to accomodate these new workforce realities."

Source: Older Dominion Project Press Release (March 27, 2008)

Additional Source: ODP video of ODP presentations (March 27, 2008)

Wednesday, March 26, 2008

Collaborative Health and Safety Solutions for Employers To Keep Older Workers on the Job

Following research finding that Americans are now staying on the clock 10 to 15 years post retirement and that musculoskeletal impairments are at the top of major impairments that aging workers experience, Kenneth Mitchell, PhD, vice president of the return-to-work programs for UnumProvident Corp., has comprised collaborative solutions that can be applied within industries that recognize workers who are older than 50 as a critical part of their current and future workforce. As reported by Jessica LaGrossa for Advance, these steps will help employers maintain employees and their productivity:
  1. Identify and reduce risk factors within the older work force: the cost of poor health and aging is influenced through timely risk management.
  2. Develop and apply corporate policies that invite and reward worksite flexibility and accessibility.
  3. Reward employees for accepting responsibility for personal well-being and protecting work capacity.
  4. Provide incentives for continued productivity by supporting services to reduce the impact of complex family barriers to staying productive.
  5. Apply corporate resources to measure the impact of productive aging programs and the subsequent return on investment.
  6. Offer programs within the organization that promote generational equity in protecting productivity. Reduced productivity is not an older-worker issue, but an all-worker issue.
Source: Advance "The New Workforce: Effective strategies can keep older employees happier, healthier and more productive" (March 24, 2008)

Tuesday, March 25, 2008

Australia: More Workers Keep Working after 65

According to an analysis of recent Australian Bureau of Statistics releases, the number of older people working beyond 65 has jumped by almost half in three years, perhaps foreshadowing a landmark change in Australians' attitudes to retirement. Writing for The Age, Tim Colebatch suggests that having over 250,000 people staying in the workforce after reaching the traditional retirement age might indicate that employers battling a tight labor market are throwing retirement ages out the window.

Colebatch writes that the shift in slightly younger workers may be even more dramatic. In 2007, almost half of those in their early 60's were working, up from one in three a decade ago, and barely one in four a generation ago.

Source: The Age "Older workers turn backs on retirement" (March 26, 2008)

Survey: Generational Divide on Worker Attitudes Towards Web 2.0 and Technology Devices

According to a Symantec survey conducted by Applied Research-West to measure IT risk issues surrounding the emerging millennial workforce within companies, millennial workers (those born after 1980) have differing attitudes regarding the use and adoption of technology in the work environment, when compared to their older colleagues. Among other things, they access Web 2.0 applications much more frequently at work than other workers, are much less likely to stick to company-issued devices or software, and are far more likely to store corporate data on personal devices regularly.

Source: Symantec Weblog "Millennial Workforce: IT Risk or Benefit?" (March 18, 2008); Wall St. Journal Business & Technology "Young People Spark a Tech Culture Clash" (March 24, 2008)

Sunday, March 23, 2008

Commentary: Dr. Robert N. Butler, the Longevity Revolution, and Work

Bob Moos, a staff writer for The Dallas Morning News covering aging issues, follows the conclusions of Dr. Richard N. Butler, on the publication of his latest book: The Longevity Revolution: The Benefits and Challenges of Living a Long Life. Butler, who won the Pulitzer Prize for Why Survive?: Being Old in America, which "first raised the topic of growing old in a country preoccupied with youth," is again trying to engage the country in another discussion about old age by focusing on the challenges posed by the gain in life expectancy.

As Moos writes, "[w]e haven't figured out how to accommodate older people's desire to work or volunteer so that the additional years become productive for them and rewarding for society. Retirement can't mean idleness if it's to last a third of someone's adult life." Among other things, we need to get rid of stereotypes about aging: advocacy groups "trying to create more opportunities for older workers continue to run into employers who view them as rigid, unwilling to learn new skills or likely to quit their jobs after a short while."

Butler suggests that the political agenda of baby boomers should include creating opportunities for those who want, or need, to continue working past the traditional retirement age:
The marketplace itself will solve part of the problem, as a projected labor shortage in certain industries will make employers more willing to hold onto their older employees. But Dr. Butler suggests nudging other employers, by offering financial incentives or eliminating current barriers to hiring older adults.

He proposes, for example, allowing people to qualify for Medicare at 55, instead of 65, and making it the primary payer of their health care. Older workers would then become less expensive and more attractive to businesses.
Source: Dallas Morning News "Bob Moos: The Longevity Revolution" (March 23, 2008)

Read an excerpt: Richard N. Butler Excerpt from Chapter 13

Thursday, March 20, 2008

South Korean Workforce Continues to Age

According to South Korea's National Statistical Office (NSO), the number of workers over 40 has increased at a fast pace while those in their 20s and 30s is declining. Over all, employees over 40 rose 3.5% to 13.2 million at the end of 2007 from a year earlier, accounting for 56.4% of the total workforce; this compares with 55.1% in 2006 and 53.7% in 2005.

Similar growth in older workers was also seen in older age groups: those in their 50's accounted for 17.5% of the total in 2007 (as compared to 16.6% in 2006), while those in their 60's accounted for 11.2% of the total in 2007 (as compared to 10.8% in 2006).

A report on the NSO results in The Korea Times states:
"With the rapidly aging population, a growing number of older Koreans, including retirees, are entering the labor market as they are forced to keep on working due to inadequate retirement savings. Also, a larger number of the elderly decide to get jobs for reasons other than financial, including health benefits," an NSO official said. He said the majority of older workers engage in lowly paid positions, usually involving manual labour in the services sector.
Source: The Korea Times "Workers Over 40 Takes 56% of Workforce" (March 20, 2008)

Wednesday, March 19, 2008

Canada: Older Workers Helping Trend to Shorter Work Weeks

A study from Statistics Canada shows that fewer full-time Canadian workers are putting in long hours on the job, with older workers providing a significant part of the decline. According to "Hours polarization revisited", published in Perspectives on Labour and Income, in 2006, full-time workers put in 40.8 hours on the job on average, down from 41.5 hours in 1997, with men trending down from working long weeks (49 hours or more) and women trending up from short-term or part-time work to regular workweeks of 30 to 40 hours.

With respect to older workers (55 and above), the report found a shift away from working very long hours and and noted, in this group, the largest growth in working between 15 and 39 hours. This brought their standard workweek down 0.5 hours to 36.3 in 2006.
Interestingly, the increase in working 15 to 29 hours by older workers was for men only. While a larger proportion of older men worked 15 to 29 hours in 2006, fewer worked a 40-hour schedule (or 49 hours or more). This might indicate that older men are phasing into retirement as more of them cut back their hours or take on part-time hours after their career jobs are finished. In 2006, almost three in four men aged 55 and over worked part time out of personal preference compared with one in four men 25 to 54.
The survey also noted that older workers were becoming a larger segment of the workforce as their share of employment "increased from 10% in 1997 to 14% in 2006, while the share of core-age workers declined (from 75% to 70%) and the share of young workers remained at 15%."

Source: Statistics Canada The Daily (March 18, 2008)

Additional Source: Regina (CA) Leader-Post "Men working fewer hours: StatsCan" (March 18, 2008)

Tuesday, March 18, 2008

Europe: Foundation Creates Resource for Active Aging Research

The European Foundation for the Improvement of Living and Working Conditions (Eurofound) has launched a major communication campaign on active ageing. According to Eurofound, promoting employment opportunities for an ageing workforce is a complex challenge that requires rethinking at company, national and EU level. Eurofound's campaign is aimed at bringing policymakers, companies and society up to par with the latest research data, recommendations and case examples to tackle the challenges and explore the opportunities associated with active ageing.

To this end, Eurofound has published an online Resource Pack for "Working longer, living better-–Europe’s coming of age" launched with a variety of materials, inlcuding:Source: European Foundation for the Improvement of Living and Working Conditions Press Release (March 14, 2008)

Friday, March 14, 2008

Survey: Older Workers Growing More Comfortable with Change

Most working Americans aged 50 and older (65%) are becoming more comfortable with change and uncertainty as they grow older according to a survey released by SecurePath by Transamerica. Furthermore, the survey reports that 50% of these workers say they are at their best during times of change and 50% say that change is exciting. Based on employee attitudes, the survey differentiating pre-retirees and identifies four key segments based on their “change profiles”:
  • Venturers: employees exhilarated by change--they have a high level of confidence about investing and retirement.
  • Adapters: employees who tend to shy away from change finding it stressful but also exciting--many feel they will be in control of their retirement, are confident they will handle the transition well, and believe everything will work out.
  • Anchoreds: employees who look for consistency in their lives rather than seek change--their apprehension towards change negatively affects their confidence in their retirement savings and their investing and may lead them to be less prepared for retirement.
  • Pursuers: employees who prefer change and find it exciting, but don’t always feel they handle it well--as a group, they are the most likely to say they will continue working instead of retiring. Their desire for change coupled with their lack of confidence leaves them open to retirement planning ideas but also with a need for reassurance in order to execute.
Among other fndings, the study suggests they are not only comfortable with the uncertainty; they also may be more realistic than commonly thought about their next life stage. In this regard, it finds that 68% plan to be working in some capacity as they age.

Source: SecurePath by Transamerica Press Release (March 12, 2008)

Thursday, March 13, 2008

Survey: Best Employers for Job Seekers Over 40

Yale-New Haven Hospital, The Hartford, Princeton University, PNC Bank, Southeast Corporate FCU, Compuware, and UGA College of Agricultural and Environmental Sciences were named as the Best Employers in the US for Job Seekers Over 40 in the first survey conducted by Jobs4.0. Employers were judged on over 20 separate criteria, including rates of new hires of workers over 40, recruitment policies and goals, health benefits and job security for older workers, flexible work options for older workers and more.

According to Jobs4.0 founder and CEO Steven J. Greenberg, "Older job seekers desperately want to find employers that will not view their age and experience as something to be avoided. Ageism in hiring remains prevalent in too many places, and this survey will help point older job seekers--not only retiring baby boomers, but all workers 40 and above--in the right direction."

Source: Jobs4.0 Press Release (March 11, 2008)

Monday, March 10, 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)

Friday, March 07, 2008

Australia: Survey Suggests Older Workers the Key to Growth

Workers aged 55 and older, not generation Y, appear to be the answer to the ongoing skills and labor shortage for Australian employers, according to the results of research by Econtech commissioned by Mercer Consulting. Accordingly, employers should shift their focus from young to old, and particularly older women, to maintain productivity.

Specifically, Mercer reports by 2012, workers in the labor force aged 55+ will increase by 14% while workers aged 25-54 will increase by only 5%. In addition, women aged 45+ will increase by 12% while the number of men in the same age group will increase by only 6%.

According to Head of Mercer’s retirement business, Mr Tim Jenkins, employers--particularly in industries facing increased employment demand--"have to hold onto older workers about to exit the workforce.” In addition, he said:
Australian employers have to re-define what the average daily and weekly job looks like and how it is remunerated in order to hold onto older workers, maintain productivity and keep downward pressure on wages that, according to our research, are forecast to rise at an average annual rate of 4.2% between now and 2012.
On the practical level, he posed a number of questions to employers such as "how many jobs really need to be full-time, all of the time? How many part-time workers are needed to deliver current and future productivity requirements? How do you fill entry level jobs when the available labour force is dominated by experienced 55+ workers?" Employers have to change the stigma around part-time work not equating to a career or a promotion, and "employers are going to have to create more part-time roles as career roles."

Source: Marcer Press Release (March 5, 2008)

Canada: Median Age of Workforce Goes over 40 for First Time in 2006

Statistics Canada's review of the 2006 census shows that the median age of the labor force surpassed 40 years for the first time--rising from 39.5 years in 2001 to 41.2 years in 2006. The percentage of older employees also grew, so that, in 2006, workers aged 55 and older accounted for 15.3% of the total labor force, up from 11.7% in 2001.

Farmers continued to have the highest median age of all occupations in the country: 52 in 2006; up from 51 five years earlier. Farmers and farm managers aged 55 or older in 2006 accounted for 42% of the total in the occupation. The occupations with the next highest median age were real estate agents and property administrators, followed by ministers of religion, bus drivers and other transit operators, senior managers in health, education, social and community services, and senior government managers.

Source: Statistics Canada "Canada's Changing Labour Force, 2006 Census: Findings" (March 4, 2008)

Wednesday, March 05, 2008

Survey: Small Businesses More Prepared for Aging Workforce

The National Association of Professional Employer Organization (NAPEO) has released the results of a survey showing that 28% of small-business owners surveyed have planned for knowledge transfer from experienced older workers approaching retirement age to other workers. This contrasts with recent recent survey results from Novations that only one-quarter of large organizations are making any effort to transfer knowledge from soon-to-retire baby boomers to other workers and just 4% have created a formal process to pass on know-how.

According to Milan P. Yager, NAPEO's executive vice president, small business owners also know their own value and will not let themselves get caught short when it's time for them to leave: 35% say their own retirement plan is solid and another 10% will have a plan in place by the end of 2008.

In addition, the NAPEO survey reports that the small businesses have more older workers, with 21% saying that at least 5% of their workers are 60 to 64, compared to 16% last year. Furthermore, 37% (compare to 18% in 2007) are delaying retirement, and only 4% said that some workers would retire before age 65.

Source: National Association of Professional Employer Organization Press Release (March 5, 2008)

Boston College Center on Aging & Work Launches States Initiative, Multigenerational Focus

According to an article in the Boston College Chronicle, the Boston College Center on Aging & Work is launching a State Perspectives Institute that will collaborate with states on promoting the aging public sector workforce as a potential economic asset. Among other things, the Institute will "gather information and work with state leaders to raise awareness of the benefits of a multigenerational workforce in the 21st century."

One of the goals of the Initiative is to release of a series of profiles on the multigenerational workforce for all 50 states produced in partnership with Experience Wave. These profiles are supposed to provide statistical synopses in areas such as age distribution, labor force participation, industry sector employment, and workforce education and preparedness.

Another project of the Initiative will be States as Employers-of-Choice, a collaboration between the Center and the Twiga Foundation, Inc. of Boise, Idaho, sponsored by the Alfred P. Sloan Foundation. The project’s goal is "to increase awareness of the aging public sector workforce as well as provide assessment of the readiness of states" to be employers of choice and to develop practice tools.

Source: Boston College Chronicle (February 28, 2008)

Monday, March 03, 2008

Poland: Older Workers Offer Solution to Demographic Challenge, but Must Overcome Prejudices Against Them

Following on the Polish government's proposals to help make people over the age of 50 more active in the workforce, the Warsaw Business Journal has published an article looking at the demographic challenge facing the Polish labor market. While noting that older workers could be what employers are looking for--offering experience, loyalty and flexibility, the article also suggests that "first the significant obstacle of prejudice must be overcome."

Only 41.5% of people aged 50 to 64 were professionally active in 2006, making Poland's employment rate for this group one of the lowest in the European Union, only beating out Malta. According to an Ipsos Poland survey done for Academy for the Development of Philanthropy (ARFwP), high unemployment in the 1990's and the beginning of the 2000's decade forced a large number of older people to exit the workforce in order to accommodate the younger generation, a trend that was further increased by high labor costs.

According to the Warsaw Business Journal article, labor market experts believe "the government's program is not enough to retain seniors in the workforce or lure them back." Instead, Poland needs a wide range of coordinated initiatives, such as the development of NGOs that would specialize in issues facing older people, such as the AARP in the United States.

On another front, employers also need to show more good will and flexibility in the employment of seniors. However, mere sympathy and pity are not arguments which appeal to entrepreneurs, according to Joanna Tokarz, project coordinator at ARFwP. She is quoted as saying: "The employer has to think in terms of the market, and they should be shown the benefits of employing over-50s in the first place." To enable this ARFwP has launched a project called Zysk z dojrzałości ("Profit from Maturity") in cooperation with Britain's Beth Johnson Foundation, to promote "age friendly" strategies and age-management solutions among employers.

Source: Warsaw Business Journal "Veteran workforce" (March 3, 2008)

Saturday, March 01, 2008

CareerBuilder Launches Job Search Site for Experienced and Retired Workers

CareerBuilder.com has launched PrimeCB.com, a job search site focused on connecting experienced and retired workers with potential employers. This follows a CareerBuilder.com survey showing that 22% of employers say given the shortage of qualified workers, they plan to rehire retirees from other companies in 2008 and that 14% of employers plan to provide incentives for older workers to stay with the company longer.
"According to AARP, nearly one-in-three U.S. workers will be over 50 by the year 2012," said Rosemary Haefner, Vice President of Human Resources at CareerBuilder.com. "While some mature workers are expressing an interest in postponing retirement, there’s still a large number of this critical segment of workers who will be leaving their current jobs in the next decade. The challenge now is to make sure we’re connecting those retirees who want to continue working with the employers who want to preserve the value of having these experienced and skilled workers at their companies."
Source: CareerBuilder.com Press Release (February 27, 2008)

Thursday, February 28, 2008

United Kingdom: Age Law Easing Older Workers Conserns in Shifting Jobs

A survey conducted for Joslin Rowe suggests that the United Kingdom's age discrimination legislation is leading to a significant increase in job moves amongst "older" workers in the financial services sector. Specifically, workers ove 35 years of age account for 18.1% of total moves in 2007 compared with only 14.0% five years earlier. Even more significantly, workers over 56s made up only 0.1% of job changes in the financial services sector five years ago, but, following the legislation, this figure has grown to 0.5%--an absolute increase of 323.2% over the last five years.

Source: Joslin Rowe Press Release (February 25, 2008)

Saturday, February 23, 2008

Poland: Government Seeks Incentives To Keep Older Workers Working

According to press reports, the Polish government has proposed incentives aimed at motivating 50+ year-olds to become more professionally active. These would include promoting professional retraining programs to match job market demand and tax relief for employers offering work to people over 50.

Currently, only 28$ of people over 50, while the other 72% are retired, claim disability or early retirement benefits.

"Deputy labour and social policy minister Czeslawa Ostrowska has said that businesses employing people over 50 would be exempted from obligatory contributions to the Labour Fund and would only have to pay for the first 14 days of medical leave compared with the obligatory 33 days under the current law."

Source: Nowe Media, Polskie Radio S.A "Government encourages older workers to work longer" (February 22, 2008)

Other Sources: Pravda "Poland's new premier: firms must employ older workers, too" (November 29, 2007)

Friday, February 22, 2008

New Zealand: Oldest Workers Exhibiting Highest Rate of Job Growth

According to job data released by Statistics New Zealand, employees aged 65 years and older showed the greatest growth in filled jobs and average mean quarterly earnings in the five-year period to December 2006. Even though, as a group, they held only 2.5% of total filled jobs, they represented the greatest percentage growth--88.9%, substantially higher than the national average of 17%.

The next younger group of workers--those aged 60 to 64 years--had the second largest percentage increase of 50.5%, followed by the 55- to 59-year-olds, with 45%.

Source: Statistics New Zealand Media Release (February 22, 2008)

Civic Ventures Report Highlights State Initiatives on Capturing Boomer Energy

A report issued by Civic Ventures shows that leaders of several state governments are taking the initiative to develop policies and programs that make the best use of boomer experience. The report--"Building an Experience Dividend: State Governments Lead Call to Engage Boomers"--focuses on developments in five states:
  • Arizona and its Mature Workforce Initiative to develop policy recommendations and launch new programs, such as a certification program given to businesses deemed "mature-worker friendly."
  • California, whose eServices offices focus on matching boomers’ desire to serve with specific labor shortages, such as the demand for math and science teachers and qualified managers in the public sector.
  • Maryland, which enacted a Baby Boomer Initiative Act in 2007, creating the Boomer Initiative Council, which is tasked with developing a strategy to keep boomers engaged in their communities through work and volunteer opportunities.
  • Massachusetts, whose governor has called for the creation of a Commonwealth Corps to give residents new opportunities to make significant commitments to service and in which legislation
    is being advanced that would create a Mature Worker Council.
  • New York, where a package of eight bills has been introduced that are hoped will jumpstart the state’s efforts to prepare for an aging workforce.
In addition, eight states are participating with the National Governors Association and Civic Ventures in a year-long program to find ways to tap skills of older workers.

Source: Civic Ventures News Release (February 7, 2008)

Additional Source: USA Today "No time to relax: States want new retirees' experience" (February 22, 2008)

Thursday, February 21, 2008

U.S. Government Study Shows Younger Workers Less Inclined to Federal Employment

The U.S. Merit Systems Protection Board (MSPB) has issued the results of a study of Federal entry-level new hires in professional and administrative occupations to identify how the U.S. Government can improve its entry-level hiring. According to the report--"Attracting the Next Generation: A Look at Federal Entry-Level New Hires, the Federal Government offers what many new hires—-regardless of age or generation—-want in an employer, but noted that numerous studies indicate that the Government is not an attractive employer to younger, less experienced applicants.

One surprising finding was that despite the popular perception that an entry-level new hire is a young, professionally inexperienced, recent college graduate, entry-level new hires are much more diverse in terms of age, experience and background. Specifically, data showed that the average age of the new hire in fiscal year 2005 was 33 years old, with new hires ranging in age from 21 to 84 years old. "Even more surprising, almost 20 percent reported more than 20 years of work experience before joining the Government, and 17 percent had 11 to 20 years."

In looking specifically to the attraction of Federal employment to older workers, the study reports:
While some may be starting new careers, it is also apparent that many new hires are wrapping up their current careers and hoping to supplement their private retirement with Federal benefits. The Government’s retirement package includes a fixed pension based on earnings and a tax-deferred retirement savings and investment plan (Thrift Savings Plan or TSP) similar to 401(k) plans offered in the private sector.

In addition, retirees with 5 years of continuous enrollment immediately before their retirement continue to receive the full subsidy in the Employees Health Benefits Program. These benefits are attractive to those nearing retirement or who have already retired from another sector and want to supplement their earnings, as demonstrated through some participants’ narrative comments:
Source: Merit Systems Protection Board Press Release (February 8, 2008)

Additional Source: Government Executive "Generation Gap" (February 21, 2008)

Monday, February 18, 2008

Australian Study Identifies Industries More Likely To Employ Older Workers with Chronic Illnesses

According to a study published in Australia, increasing rates of chronic health conditions are unlikely to have an even impact across the workforce, as the rate of employment of older workers with these conditions varies between industries. The results of the study appear in the Australian Medical Association's Medical Journal of Australia ("Where are older workers with chronic conditions employed?" ; free registration).

Using data from the 2005 National Health Survey (NHS), Deborah J Schofield, Susan L Fletcher, Arul Earnest, Megan E Passey and Rupendra N Shrestha find that, compared with the reference industry of property and business services, workers in the retail trade industry were found to be more likely to suffer from musculoskeletal conditions, while those in health and community services had higher rates of cardiovascular disease. Compared with the reference occupation group of professionals, managers and administrators were less likely to suffer neoplasms.
It is important to note that a number of the industries with significantly higher rates of chronic illness are growth industries, such as retail trade and health and community services. These two industries accounted for a quarter of the employed workforce in 2005, up from around 20% in 1990. If the chronic conditions in growth industries are work-related, rates of disease may increase in the future as these industries continue to grow. However, if they are unrelated to work, it may mean that older workers with these conditions can more readily gain employment in these industries.
According to Dr. Schofield, measures to prevent chronic health conditions may be essential to increasing future labour force participation: "Given Australia's ageing population, emerging workforce shortages, and with chronic disease affecting the majority of the workforce, measures to prevent illness may be an important strategy for increasing future labour force participation."

Source: The University of Sydney News Release (February 18, 2008)

Sunday, February 17, 2008

Illinois: Will County Report Warns Aging Workforce Could Impact Economy

The Workforce Investment Board of Will County, Illinois, has released a report saying that it is time to pay attention and take action on the county's aging and shrinking workforce as the issue could impact the county's economy. The report identifies specific sectors of business and industry in the county where the aging population (50 and older) is more prevalent: education (18.1%), manufacturing (15.2%), healthcare (12.7%), transportation/warehousing/logistics (12.8%), and finance-insurance (12.4%).

Pat Fera, manager of the Workforce Investment Board, notes that the report also includes a number of suggestions to help business and industry prepare for the retirement of Baby Boomers and the labor shortage:
Businesses will be competing more than ever for skilled workers--and the smartest businesses are taking steps to understand what their future workforce will want and likely demand. But there is no ‘one size fits all' strategy that insures companies they can continue to have the workforce necessary to remain competitive in our global economy. They need to assess their current workforce and seek out creative strategies to maintain the knowledge base of their aging workforce while attracting new workers to their industry.
Source: Workforce Investment Board of Will County "Impact of a Maturing Workforce in Will County" (December 2007)

Additional Source: Morris Daily Herald "Boomer retirement will impact Will Co. labor force" (February 14, 2008)

Taskforce on the Aging of the American Workforce Issues Report

The Taskforce on the Aging of the American Workforce, created as part of an effort to expand opportunities for older Americans choosing to remain in the workforce, and to develop proposals to address the challenges and opportunities of an aging workforce, has released its findings on (1) identifying strategies to enhance the ability of older Americans to remain in or re-enter the labor market and pursue self-employment opportunities; and (2) identifying strategies to enable businesses to take full advantage of this skilled labor pool.

According to Sen. Herbert Kohl, the report--"Report of the Taskforce on the Aging of the American Workforce"--provides "a broad overview of several legal and regulatory barriers," but "what we really need to focus on is creating innovative workplace practices and providing attractive employer benefits to facilitate the hiring and retention of older workers.”
The report presents strategies developed by the taskforce to address the most significant issues related to the aging of the American workforce. Among other suggestions, the taskforce recommends creating an interagency group to inventory the legal and regulatory barriers and disincentives to employment of older workers. The interagency will identify the pros and cons of specific approaches to addressing each barrier. The taskforce also recommends making educational resources on retirement and financial literacy available to older workers at One-Stop Career Centers and local Social Security Administration offices.
Source: U.S. Senate Special Committee on Aging Press Release (February 14, 2008)

Europe: Economic Affairs Commissioner Addresses Summit on Demographic Crunch

Economic Affairs Commissioner Joaquin Almunia is warning that European society is at risk of losing its dynamism if it does not develop a coherent approach to an ageing population and decreasing workforce. He spoke at a oned-day summit Friends of Europe conference entitled "Europe's looming demographic crunch". The Friends of Europe says this crunch will be felt dramatically in the years to come, as by 2050, 30% of the population will be over 65 and only two people of working age for each
pensioner.

In his address--"Investing in the future: an agenda for addressing Europe's Demographic Challenge", Alumnia identified the decreasing share of the working age population as a "major factor" influencing stuttering economic prospects. Thus, one prong of the strategies that European states must adopt is to raise employment rates, especially among women and older workers.
The best way forward is to promote flexible working arrangements where employment security for workers is provided by adequate skills. Such a flexicurity approach will help modernise European labour markets and ensure that people have access to employment throughout their working lives. The success of this model relies on active labour policies combined with good education and training systems that allow people to gain new skills whether they are 16 or 60.
Sources: EurActive "Almunia warns of looming demographic crunch in Europe" (February 5, 2008); Friends of Euroipe Press Release (January 31, 2008)

Thursday, February 14, 2008

Phased Retirement: Employers Operating in the Dark?

Writing in Workforce Magazine, Michelle V. Rafter reports that many companies are implementing flexible workplace initiatives to hang on to valuable older employees. However, one attractive option--implementing a formal phased retirement program--is turning out to be easier to talk about than to do: U.S. pension reform laws passed in 2006 to ease restrictions on retirement-age employees who wanted to work a reduced schedule but still be able to collect payouts from defined-benefit pension plans have raised more questions than they’ve answered.

Accordingly, she writes, "At many companies, that’s put formal phased retirement programs on the back burner. Until things get sorted out, companies appear content to stick with informal arrangements." Among these informal arrangements are:
  • ad hoc deals with executives or other employees who are close to retirement age and valued because of their position, experience, skills or customer relationships, whereby, if the workers are over 62, they can remain working in some capacity and start collecting pension benefits.
  • encouraging employees to retire completely, wait for a period of months to pass, and then return as independent contractors, allowing workers to collect their full pension benefits and the company to retain their brainpower.
  • contracting with contingent worker organizations to manage retiree workers on their behalf.
Source: Workforce Magazine "Pension and Retirement Benefits: Phased Retirement--Firms Wing It" (February 4, 2008)

Tuesday, February 12, 2008

Delaware: Census Bureau Issues Profile of the Older Worker

In a continuation of its partnership with 31 states on a series of reports on workers 55 and older, the Census Bureau has released its report on Delaware, the seventh state to be released in the series. Among the highlights of the report--"The Geographic Distribution and Characteristics of Older Workers in Delaware: 2004":
  • 15% of workers were 55 and older, while 3.4% were 65 and older;
  • the educational services industry had the highest proportion of workers 55 and over (22.3%), followed closely by arts, entertainment and recreation (22.1%); and
  • the state's retail trade industry employed the greatest number of older workers, with about 16% of the workers 55 and older being in that sector.
The Census Bureau also states that reports on Colorado, Wisconsin, New Jersey, Maryland and Kentucky are tentatively scheduled to be released over the next month or two.

Source: U.S. Census Bureau News Release (February 11, 2008)

Monday, February 11, 2008

South Korea: Workers Over 65 Are Over 11 Percent of Workforce

According to published reports, workers aged 65 or above accounted for 11.2% of South Korea's total workforce in 2007, up from 10.8% in 2006 and 5.9% in 1985. The National Statistical Office (NSO) reports that the number of senior workers reached 1.52 million in 2007--up 75.1% percent from 869,000 in 1997--as the number of Koreans aged over 65 increased by 66% percent to 4.87 million in 2007 from 1997.
Local companies increasingly prefer to hire workers on an irregular and temporary basis with little job security and lower wages to meet their manpower demand. Older workers who have already retired from previous jobs are willing to accept the lower-paying jobs.
Source: The Korea Times "Senior Workers Account for 11% of Total Workforce" (February 10, 2008)

Commmentary: Growth and Pitfalls of Second Careers

In an interview for The New York Times with Marc Freeman, author of Encore: Finding Work that Matters in the Second Half of Life, Marci Alboher explores with Freeman "the growing phenomenon of encore careers, the obstacles facing older workers, and why it is so hard to come up with language to describe this new period of work and life."

Among other things, Freeman tells how, while society is set up to make retirement happen seamlessly, individuals are often on their own when it comes to launching a significant second career, "even though we desperately need people to move into this direction." Furthermore, he would like to see older workers avoid spending decades in "bridge jobs" with Home Depot and the like and believes that employers "need to recognize, particularly those facing talent shortages, that there is more than one place to look when filling these gaps."

Source: The New York Times "Discovering Second Acts In Sustained Working Lives" (February 11, 2008)

Saturday, February 09, 2008

Report Focuses on U.S. Immigration Policy in Relation to Aging Population

According to "THINKING AHEAD ABOUT OUR IMMIGRANT FUTURE: New Trends and Mutual Benefits in Our Aging Society", written by Dowell Myers for the Immigration Policy Center, the rapid rise in the senior ratio will precipitate not only fiscal crises in the Social Security and Medicare systems, but workforce losses due to mass retirements that will drive labor-force growth perilously low and immigrants and their children will help to fill these jobs and support the rising number of seniors economically.

Source: American Immigration Law Foundation Immigration Policy In Focus (January 2008)

OECD Report on Netherlands Includes Focus on Increasing Participation of Older Workers

The Organisation for Economic Co-operation and Development(OECD), in issuing its "Economic survey of the Netherlands 2008" making assessments and recommendations on the main economic challenges faced by the Netherlands, has specifically focused, among other things, on the role of older workers in the Dutch economy. Although it finds that it has made a strong comeback, the economy is now facing labour shortages, related to the greying of the population and the continued weak labour market-participation of several groups.

OECD recommendations include the adoption of incentives to increase participation in the labour market, including at older ages, so as to widen the revenue basis and, to encourage older workers, strengthen job search requirements and continue making the tax-benefit system more work-friendly.

In his remarkes at a joint press conference held with the Minister of Economic affairs, OECD Secretary General Angel Gurría said:
To further increase participation of older workers, the government should move ahead with its planned reforms and make them more encompassing. Particularly, the new levy on pensioners who stopped working before the official retirement age could be implemented faster and not be applied only to higher income levels. In addition, measures should be taken to reduce the possibility of using the unemployment benefit system, in combination with generous severance payments, as a transition into early retirement.
Sources: OECD Executive Summary (January 31, 2008); NIS News Bulletin " OECD Urges Netherlands to be Tougher on Welfare Recipients" (February 1, 2008)

Wednesday, February 06, 2008

United Kingdom: Employers Need To Be Much More Focused on Rewards Needed To Incent Older Workers

Employers that are addressing the challenges presented by an ageing workforce to recruit, retain, and engage talent are acting mostly on an ad hoc basis, according to a report on employer incentives for older workers issued by the Chartered Institute of Personnel and Development (CIPD), based on research carried out on behalf of the CIPD by Cranfield School of Management. The CIPD Research Insight "Managing an ageing workforce: The role of total reward" shows that a more holistic approach to pay and reward is necessary--"organisations need to look across their financial and non-financial reward offerings to consider whether they are attractive to older workers."
What is lacking is a systematic and integrated approach to reward that examines whether the pay and the financial and non-financial benefits are appealing to all individuals, irrespective of their age, race, gender, etc.
According to Charles Cotton, CIPD Reward and Employment Conditions Adviser, employers "need to take the opportunity to examine whether how they reward their employees is appealing to older workers, as well as other groups.” In addition, the research suggests that employers need to make sure not to neglect the training and development needs of older workers. Dr Emma Parry, Research Fellow at Cranfield School of Management and author of the research, suggests that as employees approach retirement age, they have different needs and says that the "total rewards package offered to employees should be designed in such a way as to accommodate these differing needs so that workers of all ages are motivated to stay with the organisation.”

Source: Chartered Institute of Personnel and Development Press Release (January 31, 2008)

Tuesday, February 05, 2008

Europe: Survey Shows More Companies Responding to Demographic Changes, Responsive to Older Workers

According to Adecco Institute, European companies are waking up to the demographic challenge of an aging and shrinking workforce, with an increased number of companies having started to analyze their internal age structure and more large companies planning to hire more employees aged 50 and older in 2008 versus 2007. These are the results of Adecco's second demographic survey: "Facing Europe’s Demographic Challenge: The Demographic Fitness Survey 2007".

Applying its Demographic Fitness Index (DFX), which measures the preparedness of companies to cope with the demographic crunch on a scale of 100 to 400 points, Adecco also shows there is much to be done. Overall, European companies averaged 182 points, with Germany and the UK leading with 186 index points each, followed by Italy (182), Spain (180) and France (174). The DFX measures career management, lifelong learning, knowledge management, health management, and diversity management.
The increase in the number of companies analyzing age structures indicates an increased awareness of the issue: 40 percent of all European firms, up from one third a year ago, have conducted an analysis of the overall age structure of their organizations. Medium-sized firms have demonstrated the most significant improvement over the past year.

However, only in France and the UK has this improved level of knowledge of the age structure, so far, led to an increase in long-term staff planning. In the survey, no European company planned their overall staff needs more than 18 months ahead.

One of the most encouraging findings of the 2007 Demographic Fitness Survey is that more and more of the large European companies are willing to hire older employees. 16 percent intend to hire more older employees in 2008 than in 2007, and the share of companies who plan to hire fewer people over 50 has decreased from 42 percent to 34 percent.
Source: Adecco Institute Press Release (January 31, 2008)

Friday, February 01, 2008

United Kingdom: Study Shows Older Workers Demanding More Work

In the United Kingdom, the demand for working beyond 65 looks set to increase significantly over the next 15 years, according to survey results from the Chartered Institute of Personnel and Development (CIPD). Specifically, 38% of workers aged between 50 and 64 years plan to carry on working beyond 65, compared with only 11% of the workforce currently working beyond that State Pension age. Furthermore, "among those who said they did not plan to work past 65, 31% would change their mind if their employer allowed them to work flexibly."

According to Charles Cotton, CIPD reward adviser:
On one level the survey findings look very positive, in that they show a strong demand for working beyond retirement age that is as much down to financial as other reasons such as individuals wanting to use their skills and experience. However, it is clear that Government policy could do more to encourage more older workers to stay on by extending the right to request flexible working beyond parents and carers and making pension arrangements more flexible. If the Government fails to do this, its target of having a million older workers in work will become a mere aspiration.
Source: Chartered Institute of Personnel and Development Press Release (January 25, 2008)

Wednesday, January 30, 2008

Prolonging the Careers of OR Nurses as Strategy To Ease Nursing Shortage

Writing for Nurse.com, Scott Williams writes about searches for ways to lessen the burdens and lengthen the careers of perioperative and other nurses as one strategy for minimizing the impact of the nursing shortage. He quotes Patricia C. Seifert, RN, MSN, CNOR, CRNFA, education coordinator for the cardiovascular OR at Inova Heart and Vascular Institute in Falls Church, Va., as saying "We can’t afford to have anyone retire. . . . But at the same time, you can’t work people to death.”

Seifert, who has prepared a paper for the Association of periOperative Registered Nurses (AORN) 55th Congress, suggests that hospitals that want to keep older perioperative nurses on the job need to look at ways to make their jobs physically easier and less intrusive on their personal lives, such as by finding ways for them to draw on their knowledge and experience, rather than their physical abilities. Even physical demands can be attenuated by, for example, reducing the amount of time a nurse is forced to stand or by reducing the weight of surgical instruments.

Williams also reports on other initiatives. One, a 2006 report--"Wisdom at Work: The Importance of the Older and Experienced Nurse in the Workplace"--sponsored by the Robert Wood Johnson Foundation, which advocated flexible hours, increased benefits, newly created professional roles, better-designed hospital equipment and buildings, and an atmosphere of respect for nurses as all things that could help retain nurses longer. Another is a one-day conference titled “Coming of Age: Innovations to Support the Aging Nurse”, that was spearheaded by Ed Coakley, RN, MSN, MA, MEd, director emeritus at Massachusetts General Hospital in Boston, which resulted from a study in which older nurses said they hoped to work “until their backs gave out or their knees gave out or as long as they were able to physically work,” Coakley says.

Source: Nurse.com "Bright Ideas for Retaining Aging OR Nurses" (January 30, 2008)

Additional Resources: Hodes Research "The 2006
Aging Nursing Workforce Survey"
; Talent Matters "Workforce Planning for Health Care" (January/February 2008)

Tuesday, January 29, 2008

Singapore: Progress Reported on Enhanced Employability of Aging Population

Singapore's Ministerial Committee on Ageing (MCA) has released a report card on the work accomplished by the Singapore Government on ageing issues, including enhanced employability, one of the four previously-endorsed strategic thrusts. According to MCA, good progress has been made all fronts and further initiatives will be pursued in 2008.

With respect to employability, the report card shows that the employment rate of older residents aged 55 to 64 rose by 2.5% points over the year to 56.2% in June 2007, as a result of a buoyant economy and initiatives implemented. Following the May 2007 release of the final report of the Tripartite Committee on Employability of Older Workers, "more will be done to positively shape the mindsets of employers and employees towards employing older workers and to facilitate the re-design of jobs to make them more suited for older workers."

Source: Ministerial Committee on Ageing Media Release No. 03/2008 (January 15, 2008)

Friday, January 25, 2008

Actuarial Forum on Living to 100 Addresses Challenges Faced by an Aging Workforce

The Society of Actuaries (SOA) held their triennial symposium on high-age mortality and related issues--"Living to 100: Survival to Advanced Ages International Symposium"--and discussed, among other things, the growing challenges individuals face from increased life expectancy and rising healthcare costs and the new opportunities and challenges faced by employers and governments they respond to an aging population.
"The implication of longevity is a huge blindspot for employers, especially since many individuals are looking to retire at age 65 like their parents did before them," said presenter Valerie A. Paganelli, FSA, EA, MAAA, senior consulting actuary, Paganelli Consulting. "There is a major opportunity for employers to embrace and accommodate the aging workforce who are apt to need to work longer in life."
Pagnelli also said that employers can take the lead in helping individuals manage their resources over a longer period "by acting as intermediaries in helping aging employees remain in the workplace to reduce the risk of outliving their assets, which in turn would help strengthen the overall marketplace."

Handouts from the Symposiuim are available on SOA's website.

Source: Society of Actuaries Press Release (January 24, 2008)

United Kingdom: Survey Shows Workers Becoming More Interested in Working Past 65

Nearly 2 in 5 workers (38%) currently aged 50 to 64 plan to carry on working beyond 65, according to a survey conducted by Chartered Institute of Personnel and Development (CIPD). This would represent a significant increase, as currently only 11% of the United Kingdom workforce work beyond State Pension age.

In addition, the survey found that of those who are not planning on working past 65, 31% would change their mind if their employer allowed them to work flexibly and another fifth say that they would be tempted to carry on working past 65 if they were offered a deferred larger state pension.
Charles Cotton, CIPD reward adviser, "On one level the survey findings look very positive, in that they show a strong demand for working beyond retirement age that is as much down to financial as other reasons such as individuals wanting to use their skills and experience. However, it is clear that Government policy could do more to encourage more older workers to stay on by extending the right to request flexible working beyond parents and carers and making pension arrangements more flexible."
Source: Chartered Institute of Personnel and Development Press Release (January 25, 2008)

Thursday, January 24, 2008

Federal Reserve Survey Evaluates Changing Demographics in Labor Force

A paper written by Riccardo DiCecio, Kristie M. Engemann, Michael T. Owyang, and Christopher H.Wheeler for the Federal Reserve Bank of St. Louis reviews the evidence of changing labor force participation rates, estimates the trends in labor force participation over the past 50 years, and finds that aggregate participation has stabilized after a period of persistent increases. In examining the disparate labor force participation experiences of different demographic groups, they note that the aging of the baby-boom generation is is likely to lower aggregate labor force participation rates (LFPRs) for the next several decades.
As baby boomers enter successive age groups, their LFPR should fall dramatically. For instance, the 55 to 59 age group had an LFPR of 72 percent in 2006, and the 60 to 64 age group had an LFPR of approximately 53 percent. Among those 65 and older, the LFPR was just over 15 percent. These numbers, coupled with the increasing proportion of the U.S. population beyond their prime working age over the coming years, suggest that successive generations will be unable to compensate for the baby boomers’ exit from the labor force and U.S. labor supply will decline.
In conclusion, they write "the principal challenge in the presence of a declining LFPR, therefore,will be to find ways to enhance the productivity of the individuals that do choose to work."

Source: Federal Reserve Bank of St. Louis Review "Changing Trends in the Labor Force: A Survey" (January/February 2008)

Tuesday, January 22, 2008

United Kingdom: Study Released on Older Workers in the Construction Industry

The Strategic Promotion of Ageing Research Capacity (SPARC) has released a study of older workers investigating the needs and abilities of older workers in the construction industry and providing insight into how the working environment may be improved to accommodate those needs. According to "Understanding the Older Worker in Construction", led by Professor Alistair Gibb of Loughborough University, one of the most important issues affecting older workers is employment tenure--being directly employed rather than self-employed is associated with a more favourable working environment for the older worker.

The research suggested that by easing the physical burden of the work wherever possible and by developing interventions to encourage all workers to follow safe practice, work-related injury and ill-health could be largely prevented in the long-term, allowing older workers to remain in the industry for longer. While the findings provide much evidence of the desire of older construction workers to remain in the industry, they also show how the attractions of employing young, cheap immigrant labour far outweigh any desire by the industry to take care of its older workers, so that, in effect, the taxpayer picks up the cost of workplace induced sickness, ill-health and injury.

Source: Strategic Promotion of Ageing Research Capacity News Release (January 22, 2008)

United Kingdom: Study Released on Workplace Design and the Older Worker

The Strategic Promotion of Ageing Research Capacity (SPARC) has released a study of older workers that finds that their motivation to continue to work could be greatly improved if more attention was paid to both the way they are managed and their physical working environments. According to "Workplace Design for the Older Worker", led by Professor Peter Buckle of the University of Surrey, this could include small steps to reduce the physical consequences of manual work, such as redesigning equipment and training workers in its use. The research also suggests that scheduling work in a way which respects the capabilities of the older worker may become more important as the workforce ages. According to Buckle:
Our research has enabled us to create a new model which identifies factors important to the ageing workforce. By mapping existing practices to the new model, and by identifying and resolving areas of difference, organisations and managers will be able to maintain and motivate their older workforce.
In addition, the impact of shift work is identified as a cause of some health concerns, as is the working environment (dust, heat and noise), to which older workers are more sensitive, and manual tasks such as lifting and manipulating heavy objects.

See also, a presentation on "Understanding the Design of the Workplace for the Older Worker" at a workshop jointly organized by SPARC and TAEN discussing showcasing the research.

Source: Strategic Promotion of Ageing Research Capacity News Release (January 22, 2008)

Sunday, January 20, 2008

Public Partnerhsip Releases Survey and Teams with IBM To Launch Initiative To Lure Older Workers to Federal Employment

The Partnership for Public Service and IBM have launched an initiative to help match government’s critical hiring needs with the talents of baby boomers looking for encore careers where they can find interesting and challenging work. The initiative--"FedExperience Transitions to Government"--is a response to the hard hit the federal government is taking in the war for talent, as more than one-third of the full-time permanent federal workforce gets ready to retire or leave in the next five years.

As a pilot initiative with the U.S. Department of Treasury, the goal of IBM and the Partnership is to identify, recruit, and hire interested IBM employees and retirees and match them to key federal government jobs.
“FedExperience is a win-win-win,” said Max Stier, Partnership for Public Service president. “Boomers get their second career where they can find meaningful work, our government gets the talent it needs to fill looming shortages and the American people get a government that has the talent to service its people.”
At the same itme, the Partnership released a report that lays out the case for, and barriers to, connecting baby boomers with federal job opportunities. Findings of "A Golden Opportunity: Recruiting Baby Boomers Into Government" include:
  • Older, experienced workers are planning to continue working: 71% of workers age 55–59 reported they plan to work for at least six years; 29% for 11 years or more.
  • Old workers’ skills align with government’s talent needs.
  • Older workers are interested in government service: 53% of older workers surveyed are at least somewhat interested in federal government work.
  • Experienced workers who enter government service like it.
Source: Partnership for Public Service News Release (January 17, 2008)

Saturday, January 19, 2008

AARP Adds Federal Agencies as It Expands Its "National Employer Team"

AARP has announced that it has expanded its program connecting 50+ workers with employers who recognize the value of their experience and skills. In growing its "National Employer Team" to 38, AARP added the Internal Revenue Service, the U.S. Small Business Administration Office of Disaster Assistance, and the Peace Corps, becoming the first federal agencies to join the team.

National Employment Team employers undertake a detailed application process to demonstrate their interest in hiring mature workers. AARP’s website provides information on the employers and the positions they have posted on their websites, along with links to each employer’s AARP career page.

Source: AARP News Release (January 17, 2008)

Friday, January 18, 2008

EBRI Report Shows Women over 50 Much Less Likely To Receive Annuity and/or Pension

According to a report from the Employee Benefit Research Institute (EBRI), gender is a “particularly strong factor” in determining the likelihood of
whether a worker age 50 and older receives an annuity and/or employment-based pension income in retirement. Specifically, in 2006, women over age 50 were much less likely than men to receive annuity and/or pension income and if they did the amount was likely to be much smaller.

The study--"Retirement Annuity and Employment-Based Pension Income, Among Individuals Age 50 and Over: 2006; and Finances of Employee Benefits, 1950-2006"--evaluates the impact of gender, age, education, marital status, and other demographic factors in the likelihood of a worker receiving annuity and/or pension income in retirement. With respect to gender:
. . .the study reports that in 2006, some 44.6 percent of men age 65 and older received annuity and/or pension income, with a mean (average) amount of $17,200 per year. By contrast, only 28.4 percent of women age 65 and older received annuity and/or pension income in 2006, with mean pension income of $11,142 annually.
However, going forward, younger women are more likely to receive annuity and/or pension income and the amounts are likely to be greater, since younger women now spend more time in the work force.

With respect to factors other than gender, the study found:
  • The likelihood of receiving annuity and/or pension income increases with age, until the oldest age group (80 and older).
  • More men age 50 and older with a graduate-level education received annuity and/or pension income than men without a high school diploma.
  • Men age 50 and older who were married or widowed were more likely to receive annuity and/or pension income than men of the same age who were never married. However, women age 50 and older who were never married were more likely to receive annuity and/or pension income than married women, but widowed women were much more likely to receive annuity/pension income than either married women or women who were never married.
Source: EBRI Press Release (January 17, 2008)

Thursday, January 17, 2008

United Kingdom: Report Finds Older People Want to Work or Start Businesses

According to a report commissioned by PRIME and written by the economist Christopher Smallwood, some 800,000 people in the United Kingdom between 50 and state pension age are currently inactive but want to work. The report--"Improving Employment Prospects for the Over 50s"--also finds that the majority of new businesses are created by people in their 40s and 50s and that Companies started by older people have a 70% chance of surviving the first five years, compared with only 28% for younger people.
“It is worth putting real money behind a drive to re-employ economically inactive over-50s”, says the report’s author Christopher Smallwood.

“In order to reintroduce them to the workforce, two things are needed: (1) widespread changes in employers’ practices relating to training, retention and recruitment, and (2) a more proactive approach from Government agencies to help people back to work, particularly in the area of self-employment.”
The report says that while there are still a greater number of complaints about age discrimination in the workplace than about any other form of discrimination, a change in employer attitudes and practices of employers, together with a greater focus on the possibilities for self-employment, would do more than additional legislation.

An executive summary of the report is also available.

Source: PRIME Business Club News Release (January 14, 2008)

Wednesday, January 16, 2008

Europe, China Promote Dialogue on Demographic Aging

On a visit to China, Vladimír Špidla, EU Commissioner for Employment, Social Affairs and Equal Opportunities, signed an European Union-China agreement to promote policy dialogue on issues of common interest and on long-term challenges in employment and social policy, such as demographic ageing. The agreement--or Memorandum of Understanding--sets up a structured dialogue with China's top think tank--the Chinese Academy of Social Sciences--on future policy challenges in areas such as employment, social security, demography, social dialogue and labour relations.
Another huge problem that China is only now beginning to confront - and which Europe knows plenty about - is an ageing population.

As a result of its "one family, one child" policy and of the fact that richer Chinese now live longer, the life expectancy rate of Chinese men has now risen to 71.3 years, compared with 63.2 years in India.

The EU has so far provided 20 million euros ($28.8 million) in funds, as well as technical assistance and training of civil servants, to help China modernize its pension system.

Such help is not entirely free of self-interest, however. If Chinese workers were granted better pensions and more rights, for instance, this would limit "social dumping" - a term used to describe a country's ability to export cheap products by enforcing only weak labour standards.
Sources: European Commission News Release (January 11, 2008); NDTV "EU advises China on welfare, labour laws" (January 13, 2008); People's Daily "Aging society a common challenge for EU and China" (January 15, 2008);

Australia: Survey Finds Older Workers Becoming Less Loyal

According to a survey of Australian workers, 82% of workers in the 41- 55 year age range and 80% of those in the $80,000 to $99,000 salary range are seeking new employment for personal reasons. Campbell Sallabank, CEO of Linkme.com.au, which conducted the survey, says that "Job loyalty is out the window for Aussies of all ages as the Generation Y ethos of quick money, quick success and fast promotion spreads across the Aussie workplace."
Gen Y has long been recognised for their job hopping ways and little concern for employer’s interests as they ruthlessly climb to the top of the corporate ladder. Now more mature workers appear to be adopting the "me too" attitude as they join the bandwagon of career success instead of job loyalty.
Source: LinkMe.com Press Release (January 14, 2008)

Malaysia: Older Workers Less Confident about Future; Government Encourages Retraining

While a large majority of Malaysians feel safe in their present jobs, confidence declines with age. According to a Gallup International Association poll, 84% of Malaysians were optimistic about their job security with only Norway (85%) scoring higher in a survey of 61 countries. However, only two in 10 respondents over 51 years old thought they could find a job fairly quickly compared to four out of 10 of those below 30 years.

In response to the Gallup survey, Human Resources Minister Datuk Seri Fong Chan Onn said that employers need to continuously retrain their workers to keep them relevant, especially the older ones who are set in their ways. Fong suggests that this can help them to adapt to technological and work habit changes. According to a story by Teresa Yong in THe New Straits Times, Fong said: "It is very important for employers to continue retraining and upgrading the expertise of the older group of workers. We also need to re-orientate all categories of workers." Fong also advised older workers to adopt lifelong learning and pointed out that the Human Resources Development Bhd had training programmes for workers of all ages.

Sources: Malaysia Today "Malaysians score high in survey" (January 15, 2008); The New Straits Times "Keep older workers relevant through retraining, employers told" (January 16, 2008)

Friday, January 04, 2008

Canada: What's in a Word? "Retirement" versus "Semi-Retired"

While Canada’s boomer population may be redefining what retirement means, survey by the Investors Group found that 91% do not object to the use of the word "retirement." However, while a similar number (92%) of retired Canadians are receptive to being called "retirees," only 45% of Canadians who are nearing traditional retirement years (those aged 55 plus) want to be called a "retiree."
When working Canadians were asked if they would eventually refer to themselves as “working part-time” or “being semi-retired” (as they reduced their work week in anticipation of formal retirement), half (49 per cent) said they preferred the word ‘semi-retired.’

Canadians in mid-life are less likely to identify themselves as being semi-retired. Forty-five per cent of Canadians aged 55+ prefer the word “semi-retired,” a term favoured by a majority (54 per cent) of younger Canadians under the age of 35.
As for actual retirement plans, the survey found that 19% of Canadians plan to retire between the ages of 55 to 59, 20% plan to retire between the ages of 60 and 64, 30% say they will retire at age 65 or older, and 26% do not know when they will retire.

Source: Investors Group Media Release (January 3, 2008)

Mentoring Roles Can Keep Older Construction Workers on the Job

According to a story by Korky Koroluk, a pilot project to be launched with the Construction Association of Nova Scotia to provide more structure to on-the-job training for apprentices may also help keep some older workers in the construction industry. George Gritziotis, executive director of the Construction Sector Council (CSC), told Koroluk that "journeypersons who instruct and supervise apprentices on the job 'are not hard-wired to do that kind of job,' and more structure is needed so that the industry gets the kind of workforce it needs and could result in mentoring becoming a “designated occupation” in the industry.
He said that older journeypersons with the aptitude and training for mentoring could see it as a way to remain in the industry for another few years.

A lot of what Gritziotis calls “corporate memory” is lost when people retire. Keeping older workers on in mentoring roles would allow them to transfer their knowledge, thus preserving the corporate memory they possess.
Source: Daily Commercial News and Construction Record "Mentoring project in Nova Scotia to aid apprentice training" (January 3, 2008)

Friday, December 28, 2007

MetLife Reports on Profile of Boomers Turning 62 in 2008

As the first Americans of the baby boom generation turn 62 and thus become eligible for early Social Security benefits, MetLife has released a report profiling these boomers, including their finances, retirement plans, and more. According to the survey report--"Boomers Ready to Launch", 31% plan to apply for Social Security when they turn 62, and 32% say they will wait until age 66 or beyond when they can receive full benefits.

In addition, 68% say they have employee or retiree health insurance. Forty-seven percent are covered by a defined benefit plan, 50% have a 401K, 50% have an IRA.

Source: MetLife Mature Market Institute News Release (December 27, 2007)

Thursday, December 27, 2007

EEOC Rules that ADEA Is No Barrier to Employers Coordinating Health Plans with Medicare

The U.S. Equal Employment Opportunity Commission (EEOC) has published a final rule allowing employers that provide retiree health benefits to continue the longstanding practice of coordinating those benefits with Medicare (or comparable state health benefits) without violating the Age Discrimination in Employment Act (ADEA).

Following a period of litigation arising from a 2000 federal circuit court decision that the ADEA requires that the health insurance benefits received by Medicare-eligible retirees be the same, or cost the employer the same, as the health insurance benefits received by younger retirees, the regulation now provides an exemption for ADEA coverage for the common and longstanding employer practice of "coordinating" those benefits with Medicare by supplementing the government healthcare or by offering retirees a "bridge" benefit to cover health expenses after employees retire until they become Medicare-eligible.
“Implementation of this rule is welcome news for America’s retirees, whether young or old,” said Commission Chair Naomi C. Earp. “By this action, the EEOC seeks to preserve and protect employer-provided retiree health benefits which are increasingly less available and less generous. Millions of retirees rely on their former employer to provide health benefits, and this rule will help employers continue to voluntarily provide and maintain these critically important benefits in accordance with the law.”
Source: Equal Employment Opportunity Commission Press Release (December 26, 2007)

Other Sources: Des Moines Register "Don't make it harder to give health benefits to retirees" (January 2, 2008); AARP News Release (December 27, 2007)

Sunday, December 23, 2007

New Hampshire: State Groups Meet on Aging Issues

Public officials, nonprofit executives and public policy advocates met in December for an in-depth discussion about New Hampshire's aging work force, the looming challenges posed by baby-boomer retirement, and ways to make it easier for older Americans to remain engaged in their communities. According to U.S. Sen. Harris Wofford, who leads Experience Wave, a campaign supported by The Atlantic Philanthropies, working in Congress and state legislatures to advance the interests of mid-life and older workers and volunteers:
Their desire to stay involved presents a greater opportunity for businesses, nonprofits, communities, and the federal and state governments. In fact, we cannot afford to miss this opportunity to engage experienced older workers in continued employment and civic service.
Experience Wave wants New Hampshire legislative leaders to think about the state's aging workforce and what can be done to help baby boomers continue to participate in the economy as they approach retirement age.

Sources: SeacoastOnline "Keeping baby boomers involved" (December 21, 2007); Boston Globe "Advocacy groups wants to keep older workers engaged" (December 20, 2007)

Thursday, December 20, 2007

Aging Workforce Number Two Concern of Electric Utility Industry

While service reliability continued to rank as the No. 1 overall concern of the electric utility industry in 2007, according to an annual survey conducted by Black & Veatch, a leading global engineering, consulting and construction company, the aging workforce moved up to No. 2 from No. 5 in in the 2006 survey. The survey--2007 Strategic Directions in the Electric Utility Industry Survey--reports on the opinions, activities, and future plans of energy companies in the North American power industry.

Independently-operated utilities have started to implement new hiring/training programs to address the issue. However, municipals and "others" still rely heavily on existing hiring and training practices. Other approaches, including automation, outsourcing and new knowledge management systems continue to rank lower among the survey's respondents.

Source: Black & Veatch Press Release (December 18, 2007)

Wednesday, December 19, 2007

Conference Board Launches Mature Workforce Employer-Practices Locator

The Conference Board has launched an Employer-Practices Locator--a web-based database that enables employers, reporters, and researchers to locate examples of specific actions companies have taken to address the challenges presented by the mature workforce.

According to the Conference Board, the Locator is searchable by key word or company name. The database selects, pulls together, and summarizes material from a variety of print and online sources from 1996 to the present. It delivers a more select list of results than a user would get using a search engine such as Google or Yahoo. It includes a broader range of companies and industries than the perennial examples that are most frequently cited.
"The database answers the question: 'Who is doing what in the fast-growing world of the mature workforce,'" says Linda Barrington, Director of Research for The Conference Board. "Any employer working with this important labor sector-or writing about it-will find the Locator a valuable shortcut to a wealth of real-world examples of what can and is being done."
Industries covered in the database include healthcare, utilities, transportation, chemicals, manufacturing, and government. The search result output includes the citation for each reference, its length and a summary of its content including companies mentioned and related key words. A URL is also provided, when available, so the user can click through to the source.

Source: Conference Board Press Release (December 17, 2007)

Monday, December 17, 2007

Conference Board Suggests Strategic Business Opportunity in Reinventing Aging Workforce

According to a report from The Conference Board, despite warnings of disaster tied to the impending retirement of the first wave of baby boomers, smart companies can actually benefit from this change in the workforce if they plan carefully. Specifically, companies need to analyze their own employee data. Mary B. Young, Senior Research Associate, The Conference Board, and author of the report, says that is "the only way to accurately forecast whether aging and retirement will impact their workforce and, if so, exactly when and where. Once employers know that, they can take the appropriate actions, rather than under- or over-reacting."

Based on a case-study methodology to investigate the aging workforce and its ramifications, the report--"Gray Skies, Silver Linings: How Companies are Forecasting, Managing, and Recruiting a Mature Workforce"--draws several practical conclusions:
  • Organizations can use strategic workforce planning to assess the impact of approaching retirements on their ability to execute business strategy;
  • Companies that effectively manage mature workers treat them with respect, discern their needs rather than making assumptions, and offer such benefits as flexible work arrangements, affinity groups, and financial and retirement planning;
  • Recruiting mature workers may not even be on the radar screen for some companies, but it's a priority for employers who face a shrinking supply of younger workers, or who want a workforce that mirrors their mature customer base;
  • Knowledge transfer from mature and/or retiring workers to younger staff is key to preparing for inevitable retirements; and
  • Through partnerships with other employers, government programs and nonprofits, companies can get more bang for their buck when forecasting, managing and recruiting mature workers.
Source: Conference Board Press Release (December 13, 2007)

Research: Generational Differences in Perceptions of Older Workers

According to a new paper published by the Center on Aging and Work/Workplace Flexibility at Boston College, older workers are very positive about themselves and the company they work for, but are more likely to perceive that younger workers are given preference in training and development opportunities.

Authored by Jacquelyn B. James, Ph.D., Jennifer E. Swanberg, Ph.D., and Sharon P. McKechnie, Ph.D., the research underlying the paper--"Generational Differences in Perceptions of Older Workers’ Capabilities"--focused on two questions: (1) How do Traditionalist Generation workers rate themselves in comparison to how Baby Boom workers, and Generation X and Y workers rate them on 11 characteristics deemed to be important qualifications for continued work in later life? (2) If employees perceive their workplace environment to be less likely to offer opportunities for training and promotion for older workers, what effect does this have on their own well-being, and on their commitment to the organization?

With respect to the first question, responses for six of the characteristics varied with age. Specifically, responses were significantly more negative with each successive generation, from Traditionalists to Generation Y for the ability of older workers to serve as mentors, seeing older workers as reliable, deeming them to be more productive than younger workers, seeing them as adaptable to new technology, eager for training, and flexible. With respect to the second question, employees from the three older generations who perceived equal promotion opportunities for older workers were all significantly higher in employee engagement than those who did not, but for generation Y, workers reported significantly lower levels of employee engagement when they perceived workers over 55 had the same opportunities for promotion as younger workers.
Managers have a complex balancing act to meet the expectations and needs of a multi-generational ρρworkforce. Many employees in the older generations still want and need training, development, and recognition for their work in terms of promotion. However, employees from the youngest generation can become discouraged if they see all the opportunities and promotions going to workers from the older generations. Determining which staff will be developed and promoted will have to be based on some transparent standard not related to age or generation. This issue is one that managers will need to handle carefully to ensure retention and engagement from employees of all generations.
Source: Center on Aging and Work/Workplace Flexibility Issue Brief No. 12 (November 2007)

Saturday, December 15, 2007

Urban Institute Encourages Institutions to Take Full Advantage of Older Adults' Potential

The Urban Institute has released a study and policy brief, based on data from the Health and Retirement Survey, that shows that over 10 million healthy older adults with no caregiving responsibilities did not work or volunteer in 2004 and that about half of these were are under age 75 and 9 out of 10 have prior work experience. Accordingly, the Institute says, given this untapped potential, shortages of volunteers and workers should prompt employers and nonprofits to court this talent.

The paper--"Are We Taking Full Advantage of Older Adults' Potential?"--came to this conclusion after estimating the potential for increasing engagement among adults 55 and older. It defined engagement as working for pay or volunteering for an organization. The paper summarizes the literature that documents the key benefits of engagement at older ages, examines engagement rates among older adults and the characteristics that distinguish the engaged from the unengaged, estimates which and how many unengaged older adults would most likely benefit from increased engagement opportunities, and asks how well demand for older workers and volunteers is likely to mesh with supply.

Source: Urban Institute Policy Brief (December 13, 2007)