Age Discrimination Visible, but U.S. Businesses Urge Older Workers to Stay on the Job

According to a Hudson survey conducted by Rasmussen Reports, LLC, while 23% of the U.S. workforce knows of an older worker who has been denied a job, promotion, or raise because of age, more than twice as many businesses encourage older workers to stay on the job than to retire early; in fact, 38% of workers say their organizations keep older workers because they are difficult to replace, compared to 15 percent whose firms want to make way for younger workers.

Source: News Release The Hudson Employment Index November 16, 2005

Australia: Industry Not Stepping Up To Challenge of Aging Baby Boomers

A report from ABC Melbourne says that, at a recent seminar sponsored by Monash University’s Australian Centre for Research in Employment and Work, participants were told that, "despite the Federal Government pushing for greater participation of older workers in the labour market, industry is failing to develop proactive approaches for keeping Australia’s baby boomers in the workforce." Dr Glennis Hanley, from Monash University’s Department of Management, said that "[b]usinesses need to employ the broad-based business experiences of baby boomers to foster and transfer cross-generational knowledge as a means of integrating the diverse abilities of today’s heterogeneous workplace." According to Dr Tui McKeown, also from the Department of Management, by 2020 that 50 per cent of the current workforce will have retired and "[n]o action is currently being taken to recognise the skills of older workers." Drs. Hanley and McKeown are conducting research on Will You Still Need Me, Will You Still Feed Me, When I'm 64?.

Source: ABC Melbourne November, 28, 2005

Companies with Legacy Systems May Be Missing Out of Knowledge of Aging Workers

Ben Lieberman, principal architect for BioLogic Software Consulting, has published an article suggesting that many enterprises still execute critical business operations through older software systems that run on large, mainframe computers rather than individual PCs. Wrting about legacy systems for IBM's developerWorks, he argues that while these conmpanies continually update, extend, and integrate their systems, paradoxically many of them "also have policies that threaten the single greatest source of knowledge about their older systems: their most senior personnel. Although the aging workforce represents a vast pool of talent and experience, these businesses neither actively recruit senior workers nor provide incentives to retain those on staff. Instead, they mistakenly assume that they can hire younger, lower-paid people to perform the same tasks."

Clearly, senior personnel with intimate knowledge of the systems slated for replacement should play a pivotal role in the project. An organization that does not recognize the unique value of these individuals for new system development as well as legacy system maintenance may find that it has wasted a few million dollars on a new system that is not as effective as the old one. By actively working to retain these senior team members, organizations can dramatically reduce the costs associated with legacy system maintenance as well as the risks associated with system integration and replacement. Providing incentives in the form of personal growth strategies, such as training in the use of automated tools, involvement with new company projects, and other continuous learning opportunities, will help entice older personnel to remain within the company, share critical system information, and make invaluable contributions to system modernization projects.

Also, see interesting SlashDot conversation about this article.

Source: "Keeping the lights on: Legacy systems and the maturing workforce" IBM (September 15, 2005)

Aging Workforce Boosts Demand for Business Trainers

Cindy Mays of the Dallas Morning News writes that as a result of the increasing the aging workforce, as well as the increasing complexity of many jobs and an improved economy and corporate profits, "employers will devote greater resources to job-specific training programs, creating a strong demand for training and development specialists across all industries."

Source: "Business trainers back in demand" SouthEastCoast.com 9/20/2005

PA Governor Rendell Calls for Champions of Older Workers

Governor Edward G. Rendell announced that Pennsylvania is looking to honor and recognize those who champion older workers. As part of National Employ Older Workers Week, nominations are being accepted for the 21st annual Hall of Fame of Champions of Older Workers, which was was created to identify and recognize Pennsylvania employers who have made noteworthy efforts to hire older workers and to increase employment opportunities for those aged 55 and older. Employers who have actively recruited older workers, developed opportunities and training, provided flexible schedules, promoted older workers from within or generally made accommodations for a mature workforce are being sought statewide. The winners will be formally honored during the Pennsylvania Employer Awards luncheon at the Hershey Lodge and Convention Center in May 2006. All nominations must be received on or before Nov. 18. Nomination forms are available on the web.

Source: News Release Office of Governor, Pennsylvania 9/20/2005

America's Aging Workforce Posing New Opportunities and Challenges for Companies to Utilize Mature Employees

According to a new report issued by The Conference Board, "the rapidly aging global workforce-–caused mainly by the number of retirement-eligible employees continuing to work-–is both a challenge and major opportunity for corporations." In the report ("Managing the Mature Workforce," Lorrie Foster, Director of Research Working Groups at The Conference Board and co-author of the report with management consultant Lynne Morton and noted author Jeri Sedlar, Senior Advisor to The Conference Board on mature workforce issues, argue that "skills and knowledge mature workers possess can be utilized to great advantage by a company that knows itself well and can identify its weak areas that can be bolstered by the right mature workers." In particular, the report recommends

a series of strategic ideas and actions to foster effective management of any “retirement risk” to the business posed by a potential exit wave of mature workers. Among them:

• Identify potential gaps and knowledge transfer needs
  
• Broaden succession planning thinking
  
• Check communications mechanisms and messages for intergenerational approach
  
• Review training history
  
• Capitalize on affinity groups
  
• Become an “employer of choice” for all generations
  
• Encourage better financial planning among employees
  
• Build a retiree network
  
• Offer benefits of interest to mature workers such as long-term care insurance, pre-retirement planning, health and wellness programs, comprehensive medical coverage, including prescription drugs, health coverage for retirees and part-time workers, prorated benefits for employees on flexible work schedules

Source: News Release The Conference Board (September 19, 2005)

BC center lands $3M to study aging workforce

The newly established Boston College Center on Aging & Work has received a $3-million grant from the Alfred P. Sloan Foundation to study how the American workplace will evolve to accommodate its aging workforce. That question and others related to the impending challenge facing the U.S. as a large segment of its workers approaches the "traditional" age of retirement will be part of the three-year research-centered grant. "One thing that can affect older workers’ decisions about work that is often over-looked is the availability, or lack of availability, of flexible work options," said Boston College Center on Aging & Work Co-Director Michael A. Smyer. "Our work will focus on the study of working flexibility because it is a particularly important element of innovative employer responses to the aging workforce."

Source: News Release Boston College 9/6/2005

Canada: Mining Industry Faces Serious Worker Shortage from Comng Retirements

According to "Prospecting the Future: Meeting Human Resources Challenges in Canada’s Minerals and Metals Sector", the Canadian mining industry will need up to 81,000 new people to meet current and future needs and to fill positions vacated by retirees. The research was conducted by Mining Industry Training and Adjustment Council – Canada (MITAC), and its key findings suggest "the industry could lose up to 40 per cent of the existing workforce in the next ten years. More than half of its current workforce is eligible to retire in the next five to ten years taking with them an average of 21 years of mining sector experience each. The largest percentage of workers planning to retire within the next ten years is in the skilled trades group."

Source: News Release Mining Industry Training and Adjustment Council - Canada (August 23, 2005)

Employers Encouraged To Include Age of Workers in Diversity Thinking

Based on an executive strategy briefing entitled, "Maximizing Human Capital Assets Through Generational Competence," Ceridian is encouraging employers to evaluate their organization's level of "generational competence" to determine how well they have adapted to meet the different needs of the four generations of workers now employed in today's U.S. workforce. "While today's workplace has made great progress in recognizing and embracing differences, until now age has rarely been part of the diversity agenda. A company's generational competence will become a major factor to help organizations achieve the full contribution of their most talented employees," according to the sutdy's lead author, Diane Piktialis, Ph.D., director of work-life services for Ceridian.

“An organization’s viability depends on its ability to hire, retain—and gain the full contribution of—the most talented employees across the generations,” said Piktialis. By instituting human capital management processes, designing benefits and employee effectiveness services, and tailoring talent management to address the needs and earn the engagement of employees of different generations, an organization is taking steps toward generational competence.”

To ultimately seize the opportunities of a multigenerational workforce and achieve generational competence, Ceridian encourages employers to understand and build awareness of generational differences; study how different generations interact, use products and access services within the enterprise; leverage generational understanding to identify market opportunities and to improve marketing, product development, customer service and management practices; and design projects to provide opportunities for cross-generational collaboration.

Source: News Release Ceridian (August 1, 2005)

MetLife Study on Retirement Income of Silent Generation

According to the MetLife Retirement Income Decisions Study: The Silent Generation Speaks, 83% "Silent Generation"--Americans between the ages of 59 and 71--pre-retirees and 90% of retirees are confident that they have enough money to live comfortably until at least age 85. However, many are not as informed as they should about their longevity risk and have not taken steps to ensure that they will have enough money to last throughout their lifetime--34% of pre-retirees have not calculated how much monthly income they will need in retirement, and 45% of pre-retirees and 47% of retirees have not estimated the annual rate of inflation over the next ten years. [This study focused only on popele with non-housing assets of a least $100,000 who identified themselves as a primary or joint financial decision-maker for their household.]

Source: News Release MetLife (June 21, 2005)

Hewitt Study Shows Nearly Half of U.S. Workers Cash Out of 401(k) Plans When Leaving Jobs

Despite the growing need for employees to save for retirement, a significant number of workers participating in 401(k) plans "cash out" of them once they leave their company, according to new research by Hewitt Associates. Hewitt's study of nearly 200,000 workers who participate in their 401(k) plans found that 45% elected to take a cash distribution once they left their jobs. The remainder either kept their savings in their current employer's 401(k) plan (32%) or rolled the money over to a qualified IRA or other retirement plan (23%). While employees who were older and more tenured were more likely to preserve their retirement wealth, more than 42% of workers age 40-49 also elected to cash out of their 401(k) plans upon leaving their jobs.

Source: Press Release Hewitt Associates (July 25, 2005)

Japan: Population Decline Requires Rethinking Employment of Elderly

According to an article by Kenichi Aoyama/Kentaro Nakajima, Japan's Internal Affairs and Communications Ministry's latest population survey is another reminder of the need to address an anticipated decline in the workforce as Japan is expected to experience a population decline of about 10 million people (to about 117.58 million by 2030). "To make sure Japan remains an economic power, it is imperative to step up efforts to improve labour productivity while also reforming this country's various systems, including the social security system."

Among other things, the ministry panel studying employment policies proposed aiding older people--those in their late 60s, for instance--in their efforts to find jobs. The article also notes that many experts have called for reforming this country's various systems to a1ccommodate a reduction in the population, including the education and pension systems, and quotes Hisakazu
Kato, an assistant professor of demographic economics at Meiji University, calling for Japan to "think about the importance of training personnel again, for instance by retraining the elderly and improving education programs for the young."

Source: "Population Report Shows Need For Action" e-Sinchew.com (July 29, 2005)

Ontario Unveils Plan To Help Retain Older Nurses

The McGuinty government in Ontario is creating a program to help keep experienced nurses on the job longer. Specifically, it is planning to use $25 million to support late-career nurses working in hospitals by giving nurses over the age of 55 the opportunity to stay on in their profession in less physically demanding roles, such as working as mentors, patient and family educators or staff advisors on clinical issues.

Source: News Release Office of the Premier of Ontario (July 25, 2005)

Canada: Older Workers With High Job Stress More Likely To Retire Earlier

According to an article by Yosie Saint-Cyr in HRinfodesk, a recent study--"Job strain and retirement" by Martin Turcotte and Grant Schellenberg, published in the July 2005 Issue of Perspectives on Labour and Income by Statistics Canada indicates that job strain, caused by a combination of a heavy workload, time constraints, conflicting demands and lack of control, may be an overlooked factor in an employee’s decision to retire. Several other studies have already documented this negative relationship. "This study found that many workers who felt stressed and dissatisfied with their job felt they could not retire soon enough, while others delayed retirement for the simple reason that they enjoyed their work (because they were able to balance demands with the power to make decisions)." The National Population Health Survey examined whether older workers (aged 45 to 57 in 1994) who experience high job strain will be more likely to retire than those who do not feel the same pressure at work. The study found that, between 1996 and 2002, older workers in managerial, professional or technical jobs with high job strain were much more likely to retire early than those with low job strain. However, for sales, services, clerical and blue-collar occupations, job strain was not related to retirement.

Source: "Link Between Job Strain and Retirement" HRinfodesk
(July 2005)

Workforce Needs Education About Aging and Disability

Karen Ignagni, President and CEO of America's Health Insurance Plans (AHIP), issued a statement following her participation in the Disability and Aging Mini-Conference of the 2005 White House Conference on Aging, that "a majority of workers underestimate the risk of becoming disabled and believe they are covered by disability insurance. In reality, only a third of workers are covered and workers compensation provides inadequate protection for individuals suffering from 90 percent of disabilities.”

Source: News Release America's Health Insurance Plans (AHIP) (July 21, 2005)

Creating a Market for Senior Experts

Reporting in the International Herald Tribune, Thomas Fuller writes about Sebastian Vallbracht, who founded VMVO Senior Expert Consultancy and is in the business of scouring Europe for candidates for scientific and financial consulting jobs--with the proviso that these peopel be at least in their 40s, preferably in their 50s or 60s. The average age of the 90 experts he has engaged is about 55--and this, "[o]n a continent where early retirement has long been regarded as a way to free up jobs for younger generations." Fuller also writes about Michel Delannoy, the founder of a federation of organizations in France that seek to promote senior employment, who he quotes as saying that when older workers leave the labor market prematurely, it is a "loss in terms of productivity for the nation."

Source: The Workplace: When gray is better than green International Herald Tribune (July 6, 2005)

Aging U.S. Workforce Creates Challenges to Corporate Health and Productivity

New research conducted by UnumProvident Corporation, a provider of group and individual disability income, focuses on the aging American workforce, particularly on the potential health and productivity predicaments that demand a response from employers, medical providers and the workers themselves. According to the findings reported in "Health & Productivity in the Aging American Work Force: Realities and Opportunities,"

• Although workers age 40 and older experience a lower incidence of work injuries, short term disability and unscheduled absences than younger workers, the average amount of time they will miss due to an injury or illness is greater by nearly a third.
  
• Workers older than age 40 account for 50 percent of all short-term disability claims and up to 75 percent of long-term disability claims.
  
• Primary reasons for long term work disruptions for this age group include impairments of the musculoskeletal and circulatory systems as well as mental and cancer disorders.
  
• The additional presence of risk factors such as smoking, lack of exercise and obesity can result in healthcare costs for this population that are nearly 300 percent higher than the younger workforce.

The report notes that companies that develop programs to support and promote preventive health care among their baby boomer employees will encourage behavior that can counter these trends. By putting programs in place that provide incentives for workers to have healthier lifestyles, lost time and health care costs can be reduced. It provides a case study from Coors Brewing Company to model such corporate response.

Source: News Release UnumProvident (July 7, 2005)

Commentary: The Sun Sets On the Golden Years

Writing in The Nation, William Greider writes that many millions of baby boomers are realizizing as they approach retirement age that they can't afford to retire at all, much less retire early. Focusing on savings need to ensure a solid retirement, Greider says that "[t]he fundamental truth (well understood among experts) is that individualized accounts can never match the investment returns of a large common fund, broadly diversified and soundly managed, because the pension fund is able to average its results over a very long time span, thirty years or more." Suggesting that a "mandatory savings" solution might be required, he writes:

While most politicians don't dare embrace a "mandatory" solution--not yet, anyway--it is not self-evident that ordinary Americans would reject one, if properly educated about the alternatives. Most people are conflicted. They know they need to save more--retirement is a very meaningful investment for them--but it's very hard to accomplish, given the competing pressures. They like the concept of personal accounts but are also aware of their vulnerability as amateur investors.

For discussion of this article, see comments posted on AlterNet.

Source: " Riding Into the Sunset" The Nation (June 27, 2005)

Indiana Researcher Discusses Aging Workers

Barry Spiker, senior fellow with
University of Indianapolis Center for Aging & Community, is interviewed about his work studying how older workers are perceived in the workplace and what it means for local and national economies. He surveys Indiana as a whole, as well as specific industries that soon will be affected by baby boomer retirements. Spiker's recommendations for capturing the intellectual and emotional capital of the work force:

• If you know someone is going to retire in six months, make sure he has phased retirement that he comes back in two or three days a week.
  
• Morbidity increases when people leave the workplace. It's better for the health care industry by keeping people working. Get someone to mentor a junior worker to pass on knowledge, but also his networks -- which he knows.
  
• The emotional capital is a great way for younger workers to learn from older workers. It's being steady and calm. It's maturity and that's not something that can be taught, but learned by watching.
  
• You take someone who is retiring and say, "We'll give you a bounty for all your knowledge."
  

Source: "Research helps reshape work force" Indianapolis Star online (June 27, 2005)

Taking Care of Parents Causes South Florida Employers To Lose Money and Productivity

According to A Good Daughter, Inc., which developed and markets a Corporate Elder Care program, 17% of caregivers quit their jobs to provide care for aging family members, and another 15% reduce their work hours to assist their loved ones. All told, loss of productivity resulting from time off to care for an aging relative is estimated to cost South Florida employers $6100 per employee per year. According to Olga Brunner, President, "Our Corporate Elder Care program was developed to help employees balance job responsibilities and caregiving. Our Professional Care Managers plan and organize care and services for the employees of Broward and Palm Beach elderly population, affording families a peace of mind that their loved ones will find and secure services such as ongoing supervision of certified home care assistants, home maintenance and care, medication supervision, coordination of medical appointments and representation at these appointments, legal counsel, specialized air travel escorts, and many other services."

Source: News Release A Good Daughter, Inc. (June 20, 2005)