Our senior workforce is growing and corporate America lags behind in creating jobs to fill that market. Many of today's older workers expect to work beyond age 65, whether to supplement inadequate retirement income or work for personal satisfaction.
Others plan on retiring from one occupation only to begin another. According to a survey in 2002 conducted by AARP of employed workers aged 45 to 74, 69% said they planned on continuing to work beyond our traditional retirement age; 34% said they would work part-time for interest or enjoyment; 19% said they would work at part-time jobs for necessary income; 10% planned to start their own businesses; and, less than 28% said they would not work at all after the retirement age.
With these figures as a catalyst, corporate America needs to address this issue to keep pace with the growing population of those over 50 looking for ways to phase out retirement without leaving the business world.
Employers Throwing out Baby-Boomer with Bath Water
Long a place where the young unceremoniously replace older workers, employers are throwing out the baby-boomer with the bath water. There is no savings in losing trained career-employees simply because they have reached a chronological working age determined in a century accustomed to lower life expectancies.
The new, younger, employee is now a part of a shrinking work force, a void easily filled by keeping senior employees on under a phased out retirement program. The shrinking work force is not going to change in a world that now chooses more and more to be childless, reducing even further the future pools of wage earners.
With retaining senior workers, the economy is strengthened through additional purchasing power and new jobs are created for those products and services. "In the United States, people aged 50 and older control 75% of the nation's disposable income and own 77% of all personal financial assets," according to AARP Board Chairman Charles Levin in his September 2004 speech to the Nikkei Senior Work-life Forum in Tokyo Japan.
Older Workers Recognized and Valued for Good Work Ethic
"Older workers are recognized and valued for having a good work ethic and for providing experience, knowledge, and job stability in the workplace," Levin says. "They are viewed as loyal workers who can be counted on in a crisis. All of these attributes make them desirable workers in our service-oriented economies."
There is no question that older workers will potentially have more health problems than younger workers. But, that doesn't mean they should be left out of the workforce. A reasonable solution is part-time work and/or positions with flexible schedules.
There is still much to be done within corporate America to rectify the problems generally associated with part-time employment; such as, lower wages, no health insurance, pensions, or unemployment insurance.
Adjusting pay scales so that workers, regardless of the percentage of the day's work being done, would receive equal payment, in addition to the other benefits given full-time employees.
An outstanding benefit of working with a phasing-out retirement plan is that corporate America retains the work of more qualified employees. A shorter work week and/or more flexible hours means stability to your business while introducing newer ideas and personnel.
Employers Can Lose to Competitors With Phased Retirement Programs
By not creating their own programs, corporate America gambles with retaining in-house qualified hard-won talent from their career employees who often consider going to a competitor offering more benefits and job flexibility. What are you doing to help?
For more information about phased retirement programs, Watson Wyatt & Co. is an international firm providing services in this area. Seniors looking for work can find information on almost any subject at:
CareerInfoNet
Save to Del.icio.us
