They Don't Retire Them, They Hire Them
Faced with business-busting demographic shifts and skills shortages, some organizations have decided the smart move is to recruit and retain workers over 50. Experts say this new older workforce will make it necessary for companies to rethink their approach on everything from recruitment and training to benefits and providing new challenges.
By Joe Mullich
fter
the September 11 twin towers tragedy, the FBI confronted an unusual problem in
trying to launch a worldwide terrorism investigation: inexperience. More than 40
percent of the 11,400 FBI agents around the world had five or less years on the
job. While it began a massive campaign to hire new agents, the FBI turned to
another source for the immediate investigation. The agency hired dozens of its
retired agents on a contract basis as intelligence analysts and evidence
examiners.
The retired agents couldn’t carry guns, and they were
classified as "temporary" employees so as not to disrupt their pension benefits.
However, experts say, their abilities were sorely needed. A congressional
committee looking into intelligence failures linked to September 11 cited a lack
of analytical skills as perhaps the FBI’s greatest weakness. According to the
committee, the agency had failed to appreciate the importance of several pieces
of information related to possible terrorist activity just before the attacks.
Ironically, experts say, the FBI contributed to this problem with its mandatory
retirement age of 57, which forced many of its most experienced analysts out of
work. "They inadvertently created a brain drain," says Robert F. Morison,
director of research for the Concours Group, a consulting firm in Kingwood,
Texas.
While the FBI’s lack of experienced workers is
particularly dramatic, this "brain drain" mirrors the situation that companies
and organizations throughout the country will soon face. Eleven thousand
Americans turn 50 every day, the Department of Labor reports. The pending
retirements of baby boomers will strip the workforce of massive numbers of
skilled workers for whom, as the FBI found, there are no quick-and-easy
replacements. This loss of workers "could put whole businesses in jeopardy,"
says Jane Paradiso, national practice leader of workforce planning at Watson
Wyatt Worldwide in Washington, D.C.
In many cases, companies that are just beginning to deal
with this problem have found the same solution as the FBI. Retired and older
employees, who were often brushed aside by hiring managers in the past decade’s
obsession with youth, could be the solution to the approaching worker shortage.
The AARP recently completed a nationwide survey of 2,001 people between the ages
of 50 and 70, asking about their views on retirement. Sixty-three percent said
they plan to work at least part-time in retirement; 5 percent said they plan to
never retire, some because they like working, others because they need the money
to replace lost retirement savings. Experts say this new older workforce will
make it necessary for companies to rethink their approach on everything from
recruitment and training to benefits and providing new challenges.
Steve Wing, director of government programs for the CVS
drugstore chain, isn’t given to hyperbole, but when asked about the importance
of older workers to his company, he says, "Without older workers, we wouldn’t
have a company." CVS, anticipating the changes in workforce demographics, began
specifically recruiting workers past the half-century mark a decade ago. In
1992, 7 percent of its 10,000 employees were over 55. At that time, the company
did a study of its older workers and made some surprising discoveries. Older
workers, it turned out, were much less likely to call in sick than their younger
colleagues. When CVS looked closely at the roles that older workers were
performing, misconceptions about their physical and mental capacities were also
bashed: 70-year-olds were still lifting heavy boxes; 90-year-olds held demanding
managerial positions.
In the past 10 years, through heavy recruiting efforts,
CVS has more than doubled its over-55 workforce, which now represents 16 percent
of the company. The effort started slowly. Initially, CVS representatives went
to senior centers and pitched the company as a great place for older workers.
"Of the 100 people who came to the presentation, only 10 wanted to work, but
those were the 10 we wanted," Wing says.
"Many older people have a work
ethic and sense of civility that the younger generation has not learned yet."
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At first, older workers were separated into their
own training programs. CVS, which maintains six learning centers around the
country, found that the older workers took longer to grasp certain things, such
as technology. Over time, though, CVS learned that older workers needed less
training in other areas, including customer service. "Many older people have a
work ethic and sense of civility that the younger generation has not learned
yet," Wing says.
CVS eventually merged the training groups, realizing that
the different generations could learn from one another and would be working
together eventually anyway. "The older people provide a great example of work
ethic and customer service for the young people," Wing says. "The younger people
help revitalize the older workers and give them enthusiasm for work."
Supervising your grandparents
A large older workforce brings special challenges. Some CVS
managers were uncomfortable supervising employees who were old enough to be
their parent or grandparent. "At first, some of the younger managers were
concerned that these older workers might try to take their jobs, but we found
that many of the older workers had already done the management thing and now
just wanted to work," Wing says.
CVS hired a consultant to provide training to head off
intergenerational misunderstandings, such as an older worker who preferred to be
called Mister instead of Pops by his younger colleagues. Most of the skills the
consultant preached were simply about showing respect, and applicable to anyone,
so CVS incorporated this perspective into its general training program.
Today, CVS has linked its recruitment efforts with the
AARP and the National Council on the Aging, a national training and employment
services organization for mature workers based in Washington, D.C. CVS tries to
match the number of older workers in each of its stores to the demographics of
the particular community the store serves. As its customer base ages, CVS finds,
more customers want to see older workers.
"Some retailers use older workers just as greeters, but we
employ them throughout the organization in all sorts of roles," Wing says. "We
have workers into their 70s, and some in their 90s, who are not just holding
down entry-level jobs."
CVS often turns to older workers to fill positions that
require high amounts of organization and discipline. For instance, older workers
are often put in charge of the greeting-card sections, which are key profit
centers for which inventory must be selected and ordered wisely "so that all the
dollars don’t end up being tied up in drawers," Wing says.
For hard-to-fill pharmacist-support positions, the company
tries to recruit older workers with a medical background, such as retired
nurses. Like other companies, CVS finds that filling positions often means
looking for skills rather than specific experience. Recently, for example, CVS
hired an older former information technology manager to run one of its stores.
"We didn’t have an IT position in his area," Wing says. "He didn’t have any
retail experience, but that’s something we can teach. The other skills he had,
like knowing how to work with people and get things done, take years to
develop."
Attributes of loyalty and dedication, which CVS’s survey
connected with older workers a decade ago, still hold true today. Wing likes to
tell the story of an 80-year-old pharmacy technician who has been with the
company for 60 years and now works in a CVS store in Zanesville, Ohio. During a
savage snowstorm last year, the technician was the only one who made it to work.
"She called her manager and said, ‘Where is everybody?’ "
Looking for flexibility
Noting the aging population, consultant Paradiso says, "What
Florida looks like today, the United States will soon look like." David Fleming
already knows what it’s like to recruit workers in a geographic region with an
older population. He heads the human resources department at Brethren Village, a
continuing-care retirement community in Lancaster, Pennsylvania. Because
Lancaster is an older area, so is Brethren’s workforce: 34 percent of its
workers (182 out of 529) are over age 50. Fleming goes to senior job fairs,
where he stresses the many job attributes at Brethren that surveys show are
particularly important to older workers.
For one thing, Brethren provides flexible schedules. If
workers want to spend the winter in Florida, Brethren will be happy to employ
them during the warmer months. Knowing that health insurance can be a hot-button
topic for older workers, Brethren gives health-care coverage year-round to
part-time workers.
According to surveys by Watson Wyatt and others, many
older workers, particularly those who opt for part-time work, look for companies
that will provide "bridge" medical coverage until Medicare kicks in. Seventeen
percent of the AARP survey respondents said "a need for health benefits" was a
key reason they would work during retirement. Giving full medical benefits to
older workers who decide to go part-time, experts say, can be an effective way
to hang on to skilled employees, and can be cheaper than bringing in new workers
who must be trained.
"The word spreads that this is a
good place for senior workers, and the idea of working here catches fire."
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Beyond this, Brethren stresses the training that
workers receive. Brethren has difficulty finding enough workers in key areas
like the facilities maintenance department, so it looks for ways to help workers
stretch their skills. If the department needs to put up wallpaper but can find
only painters, it will hire them and send them to wallpapering classes or bring
in a trainer. "When our older workers talk to their friends at church and other
places, they are always impressed by the amount of training we give them,"
Fleming says. "The word spreads that this is a good place for senior workers,
and the idea of working here catches fire."
In the AARP survey, respondents were asked to rate the
importance of various attributes of the jobs they hold or plan to hold in
retirement. Factors that contributed to a life/work balance and allowed workers
to grow and learn new skills were deemed "very important" by half of those
polled. An important aspect of attracting and retaining older workers is
offering them new roles and responsibilities, so they have a continuing sense of
self-discovery. However, in a survey of 150 HR executives conducted by the
Conference Board last year, two-thirds of the respondents said they don’t offer
training for mature workers as an incentive to upgrade skills. Companies like
Brethren that do this have an edge in tapping into the older workforce.
Easing back into work
Partly because of the influx of older workers, Brethren
instituted a more aggressive mentoring program for new hires three years ago.
Fleming found that after the normal orientation, new hires often had many
questions, especially older employees who had been lured out of retirement and
had not been in the workforce for many years.
In the mentoring program, new employees meet daily with an
appointed "buddy" to help them adjust to the workplace. This is in addition to
the interaction the new employees have with their own supervisor. "It reassures
individuals re-entering the workforce that they made the right decision to come
to Brethren," Fleming says. "It shows that we listen and care about our
workers."
St. Mary’s Medical Center, in Huntington, West Virginia,
provides a similar kind of assurance to older workers and others that it lures
out of retirement. Like the rest of the health-care industry, St. Mary’s faces a
critical shortage of nurses. Two years ago, St. Mary’s began looking beyond
nursing-school graduates and other traditional sources to bolster its depleted
ranks. The medical center sent letters to older alumni of a local nursing school
and its own retiree club, asking if they wanted to return to work.
Understandably, some of the returning St. Mary’s nurses,
who had been retired for up to 20 years, were concerned about dealing with new
technology and other changes in the fast-paced medical field. The re-entry
program helped nurses who had let their licenses lapse get recertified. More
important, the nurses were at first assigned to less demanding tasks. They
handled the initial assessment of patients and did things like change IV tubing,
rather than provide intensive patient care. After six months or so, some of
those nurses opted to move into more demanding roles.
Over the past two years, the re-entry program has added 18
nurses to St. Mary’s 600-person nursing staff. "That may not sound like a lot,
but when you are trying to plug a hole in a middle shift, those nurses are
heaven-sent," says Jennifer Gore, a nurse recruiter at St. Mary’s. And since
nursing positions make up 75 percent of all hospital vacancies nationwide, there
are a lot of holes to fill.
Age-friendly workplace
Experts agree that many older people will not apply for
positions because they think they don’t have a chance of being hired, or won’t
be treated well if they are. Companies that bend over backward to correct these
misconceptions have a better chance of tapping into the older workforce.
Volkswagen of America Inc. has never actively recruited older workers, but the
average age of its workforce is 44. Understandably, the carmaker has put a lot
of effort into creating an "age-friendly" workforce.
One way that Volkswagen achieves this is by asking older
workers for suggestions on how to avoid age barriers, a simple technique that
companies often overlook. In addition, the company’s Diversity Committee
includes a number of older managers who help other managers become more
sensitive to older workers’ needs.
Those efforts are backed up with action. Older workers are
encouraged to go back to school, take part in professional organizations and
serve as mentors to younger colleagues. In the company’s mentoring program, the
more seasoned workers spend three to four hours a month with high-potential
employees who have less experience. Stephen Stephens, Volkswagen’s human
resources leader, says that the relationship is good for the employees and the
company.
Baptist Health South Florida, a nonprofit health-care
provider, also makes sure that its older workers are treated fairly. Any action
that might be detrimental to a worker with 15 years or more of service, such as
a demotion, pay cut or job elimination, must be approved by a three-person
committee consisting of Baptist’s president, the head of human resources and the
vice president in charge of the worker’s department. The human resources
department also has two "inside moves" representatives who help older workers
change jobs internally, such as transferring to positions that are less
physically demanding and require less lifting, says Carl Gustafson, Baptist’s
corporate vice president of human resources.
The company doesn’t do all this out of compassion or
kindness. About 24 percent of its 10,000 workers are over age 50. "We need these
workers," Gustafson says. "So we need to do whatever it takes to keep them."
Workforce Management, December 2003, pp.
49-54 -- Subscribe Now!
Joe Mullich is a freelance writer in Sherman Oaks, California. E-mail editors@workforce.com to comment.
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