The number of employees working into old age continues to grow for a variety of reasons, including financial need, the failure of private pension plans, and the lack of sufficient health benefits. Older workers often bring many vital assets to the table, such as a solid life experience, better attitudes, job flexibility, and an interest in learning new things. However, there are many issues management must consider when it comes to successfully managing an increasingly “aging” workforce. Here are seven of the most common:
1. PROPORTION OF OLDER WORKERS – Compared to the past, their numbers can be expected to grow disproportionately in the coming years. This is not a problem just in the US, but a pattern seen globally.
2. LONG-TERM RETIREMENTS – Today, the average number of years workers spend in retirement is more than 30, compared to a few years in retirement a century ago. This means that many will choose to continue working part-time, while others may take a break to travel and enjoy their free time before starting their job search again.
3. HEALTH ISSUES – Chronic health problems and age-related disabilities must be considered. Among employees 55 and older, arthritis is the number one chronic condition. Better wellness programs and similar initiatives offer potential ways to avoid excess sick time.
4. MULTIGENERATIONS – In the coming years, HR professionals will be increasingly challenged by the need for multigenerational workers to function successfully as a team. Different generations often have opposite attitudes towards work and life. If not managed properly, these differences could result in ineffective performance in the workplace. Pairing a seasoned, competitive boomer with a laid-back, lifestyle-focused Gen Y employee represents just one of the potential scenarios. It will take a proactive leader to understand the problems that may arise and how to act proactively to avoid them.
5. AGE DISCRIMINATION – With more older Americans still in the workforce, we can expect to see a growing number of lawsuits initiated by disgruntled employees seeking to play the “age” card. Workers over the age of 40 are protected against discrimination on the basis of age by the provisions of the Age Discrimination in Employment Act 1967 (which affects employers with more than 20 employees). HR should be educated on the latest laws and trends in discrimination litigation.
6. SUCCESSION PLANNING – With fewer “young” workers entering the labor market due to lower fertility rates in the US and most of the industrialized world, succession planning will become increasingly difficult . Talent may not be available in all areas. It may be necessary to consider using remote workers from across the country.
7. MEDICAL COSTS: Older employees will not necessarily have to cost more in medical care. Although it is a well-known fact that health benefits for older workers are expensive due to age-related illnesses, younger workers also have a number of cost-related health problems, such as smoking, pregnancy, lack of exercise and obesity. Elderly workers who qualify can also have Medicare benefits.
Although changing demographics can change the look of talent acquisition and management, with simple strategies the change can be a smoother transition for business.
-Tricia Folliero
Vice President, Sanna Mattson Macleod
