Managing an Aging Workforce

Aging Workforce

The workforce in America is rapidly aging. This rapidly aging workforce creates challengers for organizations that must manage an aging workforce. The purpose of this discussion is to explore the challenges of managing an aging workforce within any given organization. This topic is of particular interest because many older baby boomers are retiring while other are choosing to work well passed the retirement age and managers must devise ways to manage such a workforce.

Employers must understand the challenges that may arise, as an aging workforce becomes part of the fabric of the organization. If employers do not attempt to understand and implement solutions for managing an aging workforce their organizations will suffer greatly. Let us begin our discussion be explaining why the aging workforce is such an issue in the current workforce.

Description of the organization and problem

The organization that we will focus on during the course of this discussion is the federal government. According to an article entitled "An Aging Workforce: A Time of Opportunity or a Time of Calamity" between the years 2001 and 2006 one out of every five employees will retire (Tobias 2001). These retirements will create a huge disparity within the federal government and will bring into question how an aging workforce should be managed. As we all know, changes in technology and communications have created varying skill sets amongst the generations. For instance, many baby boomers came into the workforce when mainframe computers were the newest technology. On the other hand, today's generation is configuring wireless networks that can be accessed anywhere at any time.

On the other hand, the aging segment of the workforce also has valuable work experience that cannot easily be replaced. They also possess managerial and leadership skills that the younger generation has not yet acquired. For this reason, many employers both federal and private have been attempting to keep and recruit retired persons or those close to retirement.

The golf that exists between the two generations will cause managers to seek out ways to aid these generations as they work together. Many in the younger generation need the mentorship that the older more experienced generation can provide. On the other end of the spectrum, the younger generation may play an active role in training the aging workers in the newer technologies. In any case, managers must pay close attention to the management of the aging workforce in the future.

Definitional Framework

During the course of this discussion, certain words may present themselves on more than one occasion. For instance, the words baby boomer will appear quite often as it refers to the aging members of the American workforce. The word baby boomer refers to those individuals that were born between the years of 1945 and 1965. Baby boomers are the generation that is aging rapidly and having a profound impact upon the workforce in both the public and private sector.

Another word that will occur frequently throughout this discussion is management. For the purposes of this discussion management refers to the process by which organizations handle employees, facilitate change in an organization and meet the overall goals of the organization. More specifically the discussion will focus on how management is facilitated in the midst of an aging workforce.

The final word that needs to be defined is workforce. Workforce is defined as those individuals that are gainfully employed either on a part time or full time basis. For the purposes of this discussion the term workforce does not apply to those individuals that are self-employed or do not have permanent employment.

Management of aging Workforce (Discussion and Approaches)

According to an article found in the Journal, Public Personnel Management explains that the exodus of baby boomers from the workforce will have a noticeable impact by the year 2010 (Doverspike et al. 2000). In addition, the number of skilled laborers will decrease dramatically.

The article also asserts that few companies are actively recruiting older workers. The authors contend,

Companies are increasingly interested in retaining or rehiring older workers as a means to anticipate or compensate for labor shortages. The decision to rehire and recruit Older Baby Boomers should be based in part on an understanding of the characteristics of this group. Boomers are more educated than any previous cohort, have accumulated a great deal of wealth, and are healthier than previous generations. The positive levels of health are likely to encourage workers who are given proper incentives to stay in the workforce or return to the workforce, as healthy individuals are more likely to delay retirement as compared to those who are in poor health. Financial comfort is also a predictor of interest in continued employment and the decision to retire. For those who need financial aid, benefits and salary are likely to be determinants of job choice. For those who are financially secure, social and other nonfinancial incentives are much more likely to be successful in recruiting than a purely financial appeal (Doverspike et al. 2000).

Doverspike et al. (2000) goes on to insist that the proper management of the aging workforce will begin with the appropriate recruitment tactics. The article contends that any organization looking to recruit older workers should advertise in a manner that is appealing to that segment of the population. For instance, the article reports that some employers have used photographs of older workers in recruitment advertisements (Doverspike et al. 2000). The authors assert that this tactic will let the older recruit know their services are valued and needed (Doverspike et al. 2000).

Doverspike et al. (2000) asserts that advertisement for recruitment should also be placed in locations that are visited by older individuals. These places may include senior centers, temporary agencies, adult education centers, and company retiree fairs (Doverspike et al. 2000). Recruiters have to be certain to venture into the places where seniors are present as opposed to the places that are frequented by younger people.

Another issue involves the overall impressions that the worker has about the company when they are interviewed. Quite often interviewers should reassure the older prospects that their experience is needed by the company. The article asserts that many older workers are concerned about age discrimination that exists within some organizations (Doverspike et al. 2000). According to a book entitled Managing Diversity in Public Sector Workforces age discrimination is a very real problem in the America workforce. The book explains that discrimination based on age is strictly prohibited under the Age Discrimination in Employment Act of 1967. The act asserts that it is "illegal for private businesses to refuse to hire, discharge, or to otherwise discriminate against an individual, in compensation or privileges of employment, between the ages of forty and sixty-five. The act was amended in 1974 to apply to federal, state, and local governments." (Riccucci 2002)

The upper age limit for this law was increased to seventy in 1982.

The article insists that managers should take the time to design interviews that are catered to the needs of older recruits. The authors contend that,

In designing an interview to attract older workers, companies can benefit by reviewing and revising the specific content of interviews. Interview content refers to the type of questions in the process, the actual choice of the interviewer, and the description of the company given during the interview. When describing the company to the applicant during the initial interview, a firm should emphasize the aspects of work which are most appealing to older workers -- the flexibility of hours, scheduling freedom, social aspects, and the money and health benefits involved are important factors in the decisions of many older workers.[21] Such attempts to tailor interviews to older workers are a positive step in making the applicant feel that the organization will accept the Older Baby Boomer (Doverspike et al. 2000)."

Managers definitely need to understand the needs of baby boomers before they can begin the recruitment and interview processes. Managers must make a conscious effort to support baby boomers that are rehired, or decide to delay retirement. In addition, managers should focus on utilizing all of the experience that the boomers have in the workforce.

Another issue that an organization must consider when managing baby boomers is the difference between older baby boomers and younger baby boomers. An article entitled "Segmenting Baby Boomers" explains that there is a measurable difference between these two sets of baby boomers. The article contends that the older baby boomers, born between 1946 and 1955 were influenced the most by the civil rights movement, Vietnam and the advent of the birth control pill.

The article asserts that this segment of the baby boom generation came into adolescents during the Vietnam War. Because of the turmoil that they were exposed to during adolescence, they learned that they had control over what happened in society and they questioned the social structure and authority figures. The article contends that this segment "developed determinism, optimism and a "can do" attitude."They integrated Woolworth's lunch counters, shut down universities, stopped a war, and fired a president." (Morton)

The Vietnam group tended to be more idealistic and took on an antiestablishment point-of-view and many delayed entrance into the traditional workforce. The article contends that this group eventually became dissatisfied with their ability to reshape society to fit their ideals. When this dissatisfaction occurred, this segment of the baby boom generation became workaholics and experienced a great deal of success. The article explains, "Many men started working "sixty- to ninety-hour weeks, far longer than their fathers ever did." (Morton)

On the other hand, the younger baby boomers, born between 1956 and 1965 were more influenced by Reagonomics and new computer technologies. This group known as the Me group were called such because they were focused on "polishing one's very self...observing, studying and noting on it." (Morton) In addition, this segment of the generation also developed ways to produce products for less money by using technology.

The article explains that,

Reaganomics provided instant wealth to many of this group who became the young urban professionals (yuppies). Landing good jobs and great salaries right out of college, they "thought instant wealth and instant stardom was as easy as putting on the costume, assuming the role or practicing the talk... There was no sense that one had to build through experience." (Morton)

Morton explains that this segment of the baby boom generation was able to find solace in their jobs until the economy took a downturn. When this downturn occurred, many were downsized and lost their jobs. Many women of this generation were more focused on career than family and tended to seek out higher levels of education than other generations of women. Many of the women in this generation were working mothers and attempted to balance work and family life.

With this being understood, managers may have to consider differing approaches for managing individuals from different segments of the baby boom generation. For instance, two of the characteristics of the Vietnam generation are determinism and hard work. Managers must attempt to focus on a management style that utilizes these characteristics and ultimately makes the organization better. This generation also seems very willing to accept change and to do whatever is required to get goals accomplished. On the other hand, the younger segment of the baby boom generation is more focused on self and may be a bit more difficult to manage. On a positive note, both groups are well educated and many have advanced degrees. This wealth of education and experience will present managers with valuable employees.

Another article found in Population Research and Policy Review goes into detail about the challenges of managing an aging workforce. This particular article reports the findings of a survey that was conducted to understand management's views of older workers.

In this article, Remery et al. (2003) found that many employers had some negative opinions about older workers that could adversely effect their ability to manage them correctly. For instance the study found that employers tended to look upon older staff as employees with a high level of absenteeism and a resistance to change (56 and 57% of the respondents, respectively). Half the respondents also felt that the way in which work was organized would have to be reviewed, that working conditions would have to be improved and that aging would have negative consequences for adaptation to new technology. A small group of employers felt that an aging workforce would have a negative effect on the company's image." (Remery et al. 2003)

Managing an aging workforce is an inevitable reality and managers should understand that their attitudes about older workers will have an impact upon their ability to manage these workers effectively. If a manger believes, the presence of older workers will have a negative impact upon the organization they may not attempt to meet the needs of older workers. Managers must be patient and have a positive attitude about the reality of an aging workforce.

Although some respondents had a negative view of older workers, many had positive views. The survey also found that "more than half the respondents, however, expected that an increase in the average age of their workforce would result in an increase in know-how and experience. Fifteen percent believed that an aging workforce would lead to fewer conflicts." (Remery et al. 2003) Again, having a positive attitude towards the management of older employees is important and necessary. If a manager is enthusiastic about finding ways to manage the aging employees, he/she will probably more successful at actually implementing an effective program.

The article also asserts that managers need to adapt an age conscious personnel policy. The study found that the organizations that were most successful at managing older workers implemented measures...aimed at accommodating older staff. Ergonomic measures were implemented by no fewer than 65% of employers. Additional leave/increased holiday entitlement for older staff was also common (62%), as were measures such as part-time early retirement or part-time prepension (51%) and flexible working hours (47%). Measures such as introducing age limits for irregular work/shift work, exemption from working overtime for older workers, and reducing the workload for older staff were slightly less common, but were nevertheless implemented by between one-third and 40% of employers. Prolonged career interruptions and training programs for older workers were less common. (Remery et al. 2003)

Indeed, such personnel policies make older employees more comfortable and can increase their productivity when they are on the job. In addition, such personnel policies allow older employers to feel more secure in their job positions. This type of policy can also benefit younger workers who will see that the organization will not abandon them when they get to a certain age.

Another issue that must be addressed in the management of an aging population is health and safety. Indeed, older workers may have very distinct health and safety needs when compared to younger workers. A report published by the AARP Public Policy Institute, insists that severe injuries to older workers are likely to increase and prove costly to organizations (Health and Safety Issues in an Aging Workforce, 2001). Managers have to certain that older workers can still handle certain tasks as they age. Managers may have to put some older workers in positions that do not require as much exertion so that injury can be avoided.

The article asserts that managers also have to be conscious about the health of older employees. According to the report, 1 out of 5 employees over the age of 55 reports that they are in fair or poor health (Health and Safety Issues in an Aging Workforce, 2001). This health issues include arthritis, high blood pressure, loss of hearing and sight and other chronic illnesses caused by obesity (Health and Safety Issues in an Aging Workforce, 2001). The report explains that all of these conditions can adversely affect an older individual's ability to work and be productive.

For this reason managers would be wise to implement programs that encourage healthy diets, exercise and screening for high blood pressure. The article explains that there are certain precautions that must be taken to decrease the likelihood of injury (Health and Safety Issues in an Aging Workforce, 2001). At the very minimum the article explains that any organization should be adhering to the OSHA regulations for prevent accidents on the job.

The article also reports that one of the best ways to avoid injury is through an ergonomics program. The article also reports that ergonomics programs greatly reduce the amount of musculoskeletal injuries that occur on the job (Health and Safety Issues in an Aging Workforce, 2001). Reducing such injuries can save the organization money and keep the experienced workers on the job longer.

A report prepared for the United States Senate, Special Committee on Aging seems to reiterate these beliefs. The report explains

Health-care strategies aimed squarely at preventing the debilitating illnesses of "old age" will - in an aging workforce - pay disproportionate dividends in the number of people who still "feel like working" into their 70s or even 80s. Case-management techniques and other "outcomes-based" healthcare approaches now gaining currency in the medical and private-insurance sectors show early promise of reducing long-term disability even further - while at the same time easing the financial burden of treating conditions previously allowed to arise or to become chronic in older adults. (The Aging / Workforce Equation...2003)

Managers and organizations must be aware of all the problems that occur as their workforce ages. Taking the aforementioned precautions could reduce the likelihood of injuries and declining health of older workers.