|
 A landmark new
report that challenges myths about workers 50 and older shows that
those employees often have productive advantages that make them far
more cost-effective than is generally believed.
The report,
"The Business Case for Workers Age 50+", prepared by global
professional services firm Towers Perrin for AARP, noted that there
is a common business perception that 50+ workers "cost more" than
younger workers.
The AARP/Towers
Perrin analysis said that the extra per-employee total compensation
cost of retaining or attracting more 50+ workers ranges from
negligible to three percent in key industries. At the same
time, the research found that older workers are more motivated to
exceed expectations on the job than younger workers.
Earlier Towers
Perrin research found that motivation is highly correlated with
engagement, making it clear that both engagement and motivation
increase with age. Moreover, this research found a strong
relationship between employee engagement and financial performance,
showing that companies with higher levels of employee engagement
tend to outperform those with lower levels of engagement.
"These findings
are especially important because the workforce is aging, labor
shortages are projected in a number of sectors, and many employees
intend to continue to work beyond the retirement age," said AARP CEO
Bill Novelli in releasing the study today.
"Keeping people
in the workforce longer benefits the employee, the employer and
society as a whole," Novelli said.
"The report
concludes that enhancing retention or hiring of older workers can
result in marginal differences in total cost for the talent pools
studied, while experienced people can offer a distinct performance
advantage in many key roles," said Towers Perrin Principal Roselyn
Feinsod.
The AARP study
comes at a time when projections show that by 2012, nearly 20
percent of the workforce will be age 55 or older, a jump from under
13 percent in 2000. This pattern is expected to continue well
into the future, given that AARP surveys have shown that more than
two-thirds (68 percent) of 50 to 70 year old workers say that they
plan to work into their retirement years or never retire.
"The aging of
the population may put employers in a tight situation," said Alicia
Munnell, director, Center for Retirement Research at Boston College,
in responding to the study.
"They will no
longer be able to rely on a rapidly growing group of younger workers
in the future. Increased employment of older workers seems like a
natural solution, but employers will have to change their hiring and
retention policies if they want to attract these highly productive
older individuals," Munnell added.
|
