Six New Assumptions About Maximizing an Age-Diverse Work Force, and

Why Most HR Professionals Don’t Get It

 

By Cathy Fyock, CSP, SPHR

Ó2004

Consider the following scenarios, and the impact these might have on your organization:

 

¨      An older employee is not performing up to standard.  He hasn’t been coached because everyone thought he would retire soon.

 

¨      A young manager is resisting hiring older workers for IT roles, and refers to them as “old geezers.”  Many of the IT positions have been unfilled for six months or more.

 

¨      Boomer caregivers experience the tugging and pulling that is typical of this “sandwich generation”—having to provide care for children, parents, and often grandchildren and grandparents.

 

¨      An organization is losing many qualified, valued employees by offering outdated early retirement packages.

 

Many of these problematic human resources issues are the result of changing work force demographic needs that aren’t being met by outmoded, old-fashioned management assumptions.  In order for HR professionals to maximize an age-diverse work force, they will need to change their thinking about policies and programs in order to capitalize on this important labor market segment.

 

In a new research study conducted by SHRM, NOWCC, and CED, the results indicated that HR professionals have not taken to heart the impact of the aging work force.  The study stated that employers seem not to understand the impact of nearly half of their workforce retiring by the year 2010, since they are not targeting older workers, are failing to consider the makeup of future labor pools, and are not preparing for the dramatic loss of knowledge, skills, and experience.  The survey suggests that human resources take a proactive role in the development of benefits, retention and recruitment plans to attract retirees to meet their staffing needs.

 

Old Assumptions and New Responses

Older workers today just aren’t the same as older workers of the past.  In fact, when Social Security was first established, it was at a time when few workers lived long enough to draw a benefit because of life expectancy.  Now, someone in their 60s, 70s, or even their 80s or 90s may have many productive years to work.  Given the fact that aging isn’t what it used to be, what do human resources professionals need to do to rethink assumptions about older workers?  Outlined here are six of the major ways that employers will need to change key employment policies and practices in order to maximize the benefits of an age-diverse work force.

 

Assumption Shift One:  The first major shift in assumptions is from thinking that human resources depreciate over time, to a realization that human resources appreciate over time.  Employers used to say, “Get rid of the deadwood,” implying that older workers couldn’t or wouldn’t contribute to the bottom line.  The thinking was that as employees grew older, they had less to contribute and less to offer than younger workers.

 

This thinking was in part fueled by a number of myths and misconceptions about older adults.  Outlined here are some of the myths and realities of older workers today.

 

¨      The myth:  older worker are viewed negatively by customers.  While there might be some who want to avoid an older worker, there are many instances where the line at the checkout counter is longer for the knowledgeable, experienced worker as opposed to their younger colleagues.  

¨      The myth:  older workers are slow and unproductive.  Many employers attest that their older workers are more productive, on the whole.  Because they are more deliberate, they won’t make careless mistakes because they are hurrying.  By working more slowly and deliberately, ultimately, they are more productive.

¨      The myth:  older workers won’t be with the company long.  While older workers theoretically have less time to remain on the job, they usually are employed longer than their younger coworkers with their whole work lives ahead of them.

¨      The myth: older workers don’t want to advance.  Older workers have many differing motivations for work.  Some want to work in a lesser position, working part-time or coasting.  Others want to grow, learn and advance in new roles. 

¨      The myth:  older workers are inflexible and resistant to change.  Flexibility and ability to change are traits which remain constant throughout one’s lifetime.  People who are slow and resistant to change as older adults are usually those who were slow and resistant when younger.

¨      The myth:  older workers don’t need to work.  Many older adults do not have adequate savings to support full retirement and can’t live at the standard of living for which they have become accustomed.  Therefore, many must work to support their lifestyle choices.

¨      The myth:  older workers are absent from work because of illness and have higher insurance costs.  The reality is that older workers miss fewer days of work than their younger counterparts.  And, while older worker’s insurance benefits may cost the company more money, it isn’t always the case.  Some self-insured employers have found that funding their young employees during child bearing years is far more expensive than funding the insurance costs for older workers, since many frail and sickly older adults opt not to remain in the work force.

¨      The myth:  older workers are expensive to train and are not as adept intellectually.  While many older workers lack the same exposure to computer technology, employers are discovering that older adults have superior mental functioning.  In the past it was believed that older adults were not as adept intellectually, and this was a result of latitudinal studies.  Latitudinal study examined the mental functioning of young people by testing a cross-section of young people, comparing those results to the mental function by testing a group of older adults.  These latitudinal studies were flawed because they sought groups of older adults by visiting retirement homes!  So they were testing older adults who often had mental and physical impairments.  More recent longitudinal tests, where a group of young people was tested, tested again at middle age, then tested as older adults, are finding that mental functioning tends to be superior.  While older adults don’t perform as well on recall tests, they do tend to perform better on more advanced mental functioning, such as problem solving, making inferences, and understanding deeper meaning.

 

Once employers get away from these myths and focus on the realities, they begin to see that thinking about human resources depreciating over time is also a myth.

 

 

Assumption Shift Two:  The next old assumption about the workforce is the policy of up or out, which is shifting to the thinking that there can be movement throughout the organization.  In the recent past, some organizations held policies that if employees couldn’t move up and be promoted to another position within a two year period, then they should be managed out of the organization.  Today, however, it makes sense to have veterans who can serve as contributers-in-place, or to have employees who are cross-trained move throughout the organization.

 

These old assumptions can be discriminatory, because age discrimination is described in the following ways:

¨                  Giving hiring preference to workers of a certain age (for example, only hiring recent college grads)

¨                  Designing policies/practices in deference to workers of a certain age

¨                  Providing/denying education and training opportunities for one age group

¨                  Making assumptions about workers and what they want

¨                  Providing special pay and incentives based on age alone

 

Workers are often denied employment opportunities because they are considered “overqualified.”  The EEOC has determined that this term may signify age discrimination on its face. 

 

Some employers would historically deny employment opportunities to some older adults because they thought that they wouldn’t be happy in a lesser position, making less money, with fewer job responsibilities.  But that’s not necessarily true today.  For example, take the example of a security guard at the Las Vegas airport, dealing with complaining passengers waiting in long lines at the security checkpoint.  When asked about having to deal with these complaining people, he replied, “You know, I used to manage a whole bunch of people.  Now I just come in, smile, do my job, and go home.  You can put up with a lot after you’ve had to manage people.”

 

Additionally, many managers have always managed out older workers, as opposed to managing them in.  What can today's managers do to overcome past practices that have tended to "manage out" older worker performance problems?  Here are suggestions for re-thinking performance issues with older employees.

 

¨      Be aware of biases and assumptions that older workers can't do as much as they used to do--or as much as their younger counterparts.  Remember that managers' expectations impact the performance outcomes of employees.  Expect top performance and you'll get top performers; expect unproductive, slow, marginal performance and that's what you'll receive.

 

¨      Provide on-going feedback to older employees.  In addition to a formal annual performance appraisal, let employees know on a daily basis how they are doing on the job.  Provide them with the positives and the negatives, and demonstrate how you are willing to support their improvement.

 

¨      Make training and retraining opportunities available to older employees. In the past, older workers were often overlooked for training opportunities with the assumption that they wouldn't be with the organization much longer, so why invest in their training.  Since today's employment and staffing goal is for increased "unretirement," continue to invest in mature employees by providing access to educational programs.

 

 

Managing out policies may cause organizations to lose valued, dependable, loyal employees.  Such was the case with an early retirement program that encouraged a loyal technical employee to retire.  Once the employee left, the organization still needed to find a replacement, and soon discovered that no one was qualified to handle the position.  As a result, the retiree was rehired back as a consultant, making double his salary. 

 

 

Assumption Shift Three:  The next major shift in assumptions is from the thinking that older adults should either work full-time or retire, as opposed to discovering that there are many ways to work and contribute in place.

 

Gil Gordon, of Gil Gordon Associates in Monmouth Junction, NJ is a specialist in telecommuting and alternative work arrangements.  He says that the term, “permanent employee” is a dinosaur term.  In order to meet staffing goals, alternative work arrangements are among the best and least expensive benefits offered to attract and retain employees.  Flex work arrangements are also gaining in popularity because they are a benefit for customers, since business hours can generally be extended.

 

By exploring alternative work arrangements, employers are better able to offer work schedules that meet the needs of an increasingly diverse workforce.  Gordon says that employers today cannot offer the same thing to all employees, but rather, some thing to all employees in order to meet staffing goals.

 

What innovative schedules are being offered to older adults?  Consider these options:

¨      Traditional part-time work or voluntary part-time work (V-Time) offered by New York State government offices where all employees can work between 70 and 100 percent of their schedule in 5-percent intervals,

¨      Casual employment programs, such as that offered by Aerospace Corp. of southern California, where skilled retirees work up to 1,000 hours each year without jeopardizing their pension benefits,

¨      Flexible work schedules around a core work period,

¨      Non-traditional part-time work, such as one week on/one week off, or like the innovative schedule of one month on/one month off,

¨      “Phased retirement” featuring reduced hours over a period of time, as offered by Poloroid Corporation in Cambridge, Massachusetts and Corning, based in Corning, New York,

¨      “Rehearsal retirement,” providing adults with the chance to work part-time with their employer and offering non-paid hours to a volunteer organization, such as that offered by Kollmorgen Corporation’s Electro-Optical Division in Northhampton, Massachusetts,

¨      Job sharing, partnering an older adult with a younger trainee.

 

 

Assumption Shift Four:   The next change in assumptions is that employers only recruit young workers, as opposed to strategies to recruit all workers, especially older workers.

 

In order to meet staffing needs for qualified, dependable workers, employers must begin to consider attracting older workers.  Especially with the predicted worker shortages, organizations will increasingly need to depend on all labor market segments to meet their staffing needs.

 

Yet, many employers have never recruited older adults, and are not sure about how to attract this labor market segment.  In fact, many employers often relay that while they are interested in attracting older adults, few ever apply directly to their organizations.

 

Employers must first understand why older adults choose to work.  In a survey by Carolyn Bird in Modern Maturity magazine, 36,000 responses were received from enthusiastic older workers.  About a third indicated that they needed to work for financial reasons, but 2/3 were working for non-financial reasons.  Some of these included:  the need to be with other people–the social elements of work.  Another reason was the need to remain challenged, to have a routine, to share their knowledge and expertise with others, to pass along their craft.  All of these significant motivations for work should be taken into consideration during the recruitment process.

 

So, how do successful companies recruit older adults?  Here are some suggestions for developing a recruitment plan.

 

Analyze recruitment strategies.  One employer recently examined their recruitment literature to discover that not one picture featured an older adult.  Organizations interested in targeting older adults will need to refocus their efforts to attract this labor market segment.

 

Many older adults, having faced age discrimination or ageism, may be reluctant to actively seek new employment opportunities unless the employer has clearly indicated that their experience and maturity is valued.  Employers such as Kelly Services, Days Inn, and Hardee's Food Systems who have developed targeted recruitment strategies and publicized their efforts in this arena are also the companies with the greatest success stories in the employment of older adults.

 

Develop targeted messages to attract mature workers.  Older adults tend to respond to messages that appeal directly to them, and that let them know they are specifically wanted for employment opportunities.  Recruitment messages that specify “mature,” “experienced,” and “reliable” all let the older reader know that they are being sought after for employment. 

 

Use recruitment activities that target the mature market.  Since there are many older adults not actively seeking employment, but who would be interested in the right opportunity if presented with it, employers should use more focused, intrusive forms of recruitment activities to let older adults know that they are being sought after by the organization.  Some ideas for more effectively designing targeted activities include:

 

¨      Offer “unretirement parties” as does The Travelers, based in Hartford, Connecticut, to entice their own retirees as well as other older adults to join the pool of part-time and temporary workers to meet the organization's temporary staffing needs.

¨      Visit coffee klatches and mall walking groups

¨      Make presentations to senior center groups

¨      Participate in open houses and (second) career fairs specifically for older adults, often sponsored by organizations such as the American Association of Retired Persons, and other organizations sponsoring the employment of older adults.

¨      Place radio ads on stations that target older adults.  For example many older adults tune into the Paul Harvey program, and one employer was very successful in having a recruitment ad air just after the program.

¨      Advertise in sections other than the help-wanted section, since many older adults are not actively seeking employment and may be discouraged workers.  Consider alternate sections, including the lifestyle, television, or sports sections.

 

 

Assumption Shift Five:  The next way HR professionals need to rethink assumptions is from a linear approach to work life to a more cyclical approach.  Ken Dychtwald, author of Age Wave and Age Power and expert on aging issues, suggests that we used to have a linear approach to life.  Education would be completed during the first 20 or so years of life, then work for the next 40 – 50 years, then enjoy leisure with what time was left.

 

Today, life is being lived in a more cyclical way.  In today’s changing and volatile marketplace, no one can just be educated in the first 20 years of life. Instead, adults must consider lifelong learning, since technology is rapidly changing and becoming outdated.  Today adults are finding that delaying all leisure until later life is also no fun, and ultimately not healthy.  Increasingly, individuals and employers are looking for ways to combine education, work, and leisure in a way that is satisfying and practical.

 

Traditionally, only university professors could enjoy sabbaticals. Now, while still in the minority, some companies are offering sabbaticals as a strategy to re-educate, re-stimulate, and re-energize their employees.  By offering a sabbatical employers are finding that they can keep loyal employees who become burned out, and provide for ongoing education and training that will ultimately make the organization up-to-speed with state-of-the-art technologies.

 

Since learning should be thought of as an ongoing and lifelong process, it also means that organizations will need to adapt training to the needs and issues faced by older workers.  What are the training and educational issues that are unique to older workers?

 

¨      Don’t make assumptions about older adults.  It’s dangerous to assume that older adults don’t have exposure to technology, or have certain preferences when it comes to training methodologies.  Ask before making these assumptions.

¨      Show older adults the benefits of the learning.  Like all adult learners, older adults need to understand “what’s in it for me.”  Show them the payoff, whether it be the ability to perform the job better, safer, to qualify for a promotion or pay increase, or to improve efficiency.

¨      Create self-paced learning.  Since all learners learn at different paces, provide options to allow all learners to advance at a pace that’s comfortable.

¨      Be accessible.  Insure that print is large enough, sound systems adequate to support the needs of older learners.

¨      Use multiple methodologies.  While some older adults learn best when provided with print materials, some find that other training methods work best. 

¨      Involve older adults in the process.  If possible, use an older adult as a trainer, or as a key student to demonstrate new learning.  One computer training company based in Louisville, KY, called Silver Fox Computer Club, caters to older adults, and provides peers to provide the training. 

¨      Build upon experience.  Older workers have a wealth of experience, so build upon that experience.

 

 

 

Assumption Shift Six:  Our final shift in assumptions is from the thinking that retirement is the “American Dream”, to the idea that retirement is a terrible waste of human resources.

 

Several years ago the cover story for Worth magazine was titled, “Don't Retire:  There are Better Goals in Life.”  The feature article suggested that since the retirement age of 65 was established at a time when few people lived to that age, perhaps retirement age should be redefined, and that a more meaningful dream be created. There are many older adults who are interested in continuing to work in some way, and never completely retire--especially when they can redefine what it means to work.  This is the excitement of “unretirement”—creating new choices for working in a way that is rewarding and satisfying.

 

Another key strategy for modifying the American Dream is to provide diversity training for managers on the issues of managing a diverse workforce.  In addition to training all managers on intergenerational issues, employers may also want to form a task force for addressing older worker issues.  For example, companies such as Honeywell and AT&T have created affinity groups, which are groups of older employees who meet regularly to talk about issues that are of importance to them.  For example, the older worker group at Honeywell, called OWLs (the Older Worker League) creates awareness around benefits issues (like the new high impact aerobics class being offered that fails to accommodate the older participants, and pension benefit design).

 

Employers should also recognize that there are excellent resources for support within the community.  These resources include such organizations as

 

¨      State agencies on aging

¨      AARP

¨      National Council on the Aging

¨      Community-based resources

 

 

Older workers are an increasingly important labor market segment, and today’s employers will need to focus on recruiting and retaining this valuable resource in the coming years.  To capitalize on this changing shift in demographics, human resource professionals must rethink assumptions about older adults and aging, and develop new policies and programs.

 

 

 

Cathy Fyock, CSP, SPHR, is an Employment Strategist, and is on faculty for SHRM’s HR Generalist Certificate Program and the Recruitment and Retention Certificate Program, and the author of UnRetirement and America’s Work Force is Coming of Age.  She can be reached at cathy@cathyfyock.com.

 

 

 

Put This Article into Action

 

Consider these questions as you prepare your organization for the opportunities in attracting and retaining older workers.

 

 

Assumption Shift One

 

¨      What are the major myths about older adults that still persist in your organization?  Why?  How might these be changed?  Will it take training, a new awareness, revised policies and program?

 

¨      How do you refer to older workers and older adults?  Should you revisit the language that you use in referring to older adults?  How can you ensure that ageist remarks are seen in the same way as racist and sexist remarks?

 

Assumption Shift Two

 

¨      Does your organization have any policies or programs that could be perceived as discriminatory?  Where are you vulnerable?  Where do your policies hold back older workers?

 

¨      Are there opportunities to manage in performance issues, as opposed to managing them out?  What needs to change in your workplace?

 

¨      Do you offer the same educational and training opportunities to older workers as you do for their younger counterparts?

 

Assumption Shift Three

 

¨      Are you thinking creatively to keep valued, qualified workers?

 

¨      What innovative schedules are you already using to recruit and retain all workers?  Are there some opportunities to use new schedules to attract and retain additional older workers?

 

Assumption Shift Four

 

¨      What are you currently doing to attract older adults?

 

¨      Do you let older workers know that you are interested in them?  To what extent do you use targeted strategies?  What recruitment activities could you use to attract more qualified older adults?

 

Assumption Shift Five

 

¨      Do you permit older adults the same access to training and educational opportunities within your organization? 

 

¨      What are you doing to ensure that all your employees have up-to-date, marketable skills?

 

¨      Are your learning opportunities age-friendly? If not, what do you need to do to make education and training more accessible to older workers?

 

 

Assumption Shift Six<