Overview:
It is well documented that the workforce is aging as the largest generation, the Baby Boomers, are contemplating either retiring or staying in the workforce. Based on many demographic studies, the two generations who followed the Baby Boomers into the workforce, Gen. X, Gen. Y, and now Gen. Z are not large enough and not qualified to replace the Baby Boomers should they decide to retire en masse. Organizations will soon be faced with an employment gap and the shortage is expected to last until 2025 when the younger generations will have accumulated enough experience and education to begin replacing the Baby Boomers. How employers handle that gap can determine the future success of the organization, especially from the human capital perspective. Therefore, employers need to either bring the younger employees’ skills up to the required levels or incentivize the Baby Boomers to continue working past the typical retirement age (or both). Knowing that many people need to work and have a desire to work should reduce the need to incentivize by some margin. However, employers must keep in mind the impact and risks of employing an older workforce.
Living longer
For centuries the average life expectancy of humans was around 50 years of age. Today the average lifespan in the US is nearly 80, and more people are living longer than before. For example, in 1900 the average life expectancy in the United States was 47 years. Over the last 120 years, the average life expectancy has increased significantly. Today life expectancy is around 78 years of age; 76 for males and 84 for females in the U.S. As a society, this is the first time we are seeing so many people living longer. According to the Centers for Disease Control (CDC), in 2050 Americans 65 and older will number approximately 89 million, twice as many older adults than those living in 2010.
Although many individuals have lived well into their 80s, 90s, and 100s over the years, we have never had as many people as we do today reaching those milestones. Immunizations have played a vital role in protecting society from disease helping to eliminate or suppress many childhood diseases which caused high mortality in children. Protection from illnesses like typhus, polio, measles, and smallpox, as well as improved hygiene and nutrition, has given children worldwide a chance to reach adulthood. As a result of more children surviving well beyond their teen years, society is experiencing a variety of illnesses and diseases that are part of normal and abnormal aging that several decades ago were relatively uncommon such as cardiovascular or coronary heart disease, arthritis, cancer, and dementia.
Working longer
As the Baby Boomers continue to work into their late 60s and 70s, the risks for developing certain illnesses and diseases are increased. Even healthy workers may request time off to care for a disabled or sick family member. Employers will need to consider re-engineering job duties or allowing for certain workplace accommodations to help facilitate employees’ abilities to manage their work environment. Additionally, employers will have to address the issue of cognitive decline in current employees, which can range from mild cognitive impairment to a diagnosis of probable Alzheimer's disease.
Employees with disabilities have the option of revealing their disability to an employer or keeping it to themselves. Those with dementia, for example, may feel embarrassed disclosing a disability and fear discussing their condition openly because they fear possible negative consequences such as discrimination, being labeled as incompetent, or even losing their jobs. This can be especially true of mature workers who may already feel their age is perceived as an employment factor and to now introduce a cognitive condition may lead to consequences at work that may include job dismissal.
Age discrimination
Studies suggest that many mature employees are subjects of age discrimination at work. Many employers perceive mature workers to be less productive, have abilities that decline with age, and are not as tech-savvy as the younger employees. This type of stereotypical thinking results in organizations not offering mature employees as many training opportunities as they do to their younger workers. There is a systemic belief that mature employees avoid learning new technical skills and are not interested in attending workplace-sponsored training sessions. However, there are studies that suggest this is not the case and many mature workers look forward to learning new skills and appreciate being asked to participate in training and improve their skill-set.
As a result of many mature workers experiencing age discrimination in the workplace, this becomes a very real threat to mature workers, especially a threat to their self-efficacy, particularly their perceived ability to be productive and effective. As people grow older and experience hurtful comments and perspectives on aging, they may begin to feel devalued and perceive being treated unfairly. People who are restricted by their physical ability or a social constraint can be limited in their productivity, real or perceived effectiveness, and commensurate behavior at work. Add to this a feeling of inadequacy of effective workplace performance due to age, and mature employees’ self-judged efficacy can further lead to a defeatist mentality and misperception of their capability to successfully accomplish job tasks.
If we define discrimination as behavior that produces negative or hostile attitudes toward a certain group of individuals, employees can definitely feel the resulting tension in the workplace. This tension can impact their productivity, desire to come to work, and their attitudes about the organizational culture that has allowed this type of behavior to persist.
Human Resource (HR) departments should provide a safe environment for employees to discuss their experiences and begin addressing these issues with senior management. HR should also be called upon to provide training to the entire organization and address the need and importance of working with an aging workforce, including developing training modules to educate employees on what exactly constitutes age discrimination as well.
The Age Discrimination in Employment Act of 1967 was designed to protect individuals aged 40 and higher from employment discrimination. Unfortunately, age discrimination can be very difficult to prove and many mature employees report age discrimination in the workplace. Knowing this, it is incumbent for HR to realize the reality of the workplace and design strategies to help employees of all ages better understand what age discrimination looks like and the impact it has on the organization as a whole.
A few years ago, I wrote an article in the Hartford Business Journal regarding phased retirement (see URL below) involving reducing employees' job responsibilities over the course of several years. The idea is to keep older employees working, earning a paycheck, and keeping full or partial benefits while mentoring a younger employee who will eventually take their place. The same can be done for employees with dementia, especially in the early stages when cognitive signs and symptoms may still be mild.
Finally...
Recent literature stresses the importance of retaining mature workers and the value they provide to organizations and society as a whole. It is also important to keep in mind that the longer employees are able to work, the more money they will have to spend on consumer goods, pay taxes, support charitable organizations, and continue to participate in social programs such as Social Security. Organizations can prepare for either a Baby Boomer exit or embrace their desire to stay working longer. Many employers are already preparing to support a mature workforce and organizations like The Society for Human Resource Management (SHRM) are providing resources to assist in this area. Similar to policies and benefits that companies offer employees, such as incentives to join fitness clubs, organizations can also offer incentives for healthy lifestyles. Many health insurance companies, moreover, waive co-pays and deductibles for physicals and certain other preventive-care visits. HR can provide training to educate employees and supervisors about such available benefits.
Employees who lost their spouses and whose children moved away can have very little contact with others. Social workers can help these employees begin preparing to adjust to life after work ends. Terminating older employees because of a fear of reduced productivity has many negative social implications beyond the workplace. The social engagement factor can be critical at this stage of their lives and the workplace may be one of very few socially engaging environments older employees may have.
Ignoring the value mature employees bring to an organization reduces the positive impact older, working adults can have on society. It is important that organizations participate in socially responsible initiatives for mature employees who may not have enough resources or support to age successfully. There are many initiatives that can be implemented at little or no cost to the employer. Organizations like SHRM can help employers better understand the impact an aging workforce can have on the organization and help develop an elder-friendly work environment.
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