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Working Past Retirement: You May be Needed
By Charles Stein, The Boston Globe
March 21, 2004
It is well known that Americans are going to have to stay on the job longer because they won't be able to afford to retire. Less well known but just as clear is that corporations will need to keep older workers on the payroll because the coming baby bust generation is too small to replace the baby boomers.
It sounds like a marriage made in heaven: older workers who need jobs and companies who need older workers. I have just one question: Will companies overcome their prejudices against workers over 50 and find a place for them in the offices of the future?
First, a few facts. America is facing a retirement crunch. Social Security benefits are already shrinking and they are likely to shrink further as the government copes with a massive budget deficit. In her recent book, ''Coming Up Short," Alicia Munnell, a Boston College economist, documented how little money Americans have saved in their 401(k) plans. Throw in longer life spans and the case is compelling: People will have to work beyond the traditional retirement age.
Corporate America's coming need for older employees is based on equally strong mathematical logic. The government estimates there will be a shortfall of 10 million workers by 2010. The shortage will be most acute in the 25- to 44-year-old category simply because there are not enough young people currently in the pipeline. Immigration can fill some of the gap, but not all of it.
Employers have some legitimate reasons for not wanting to retain and hire older workers. Munnell estimates that it costs $2,000 a year to provide health insurance to people between 55 and 64. For 20- to 40-year-olds, the cost is $500 to $1,000. Pensions can be more expensive for older employees, especially in companies with traditional pension plans.
But attitudes, not dollars, explain why many companies are reluctant to embrace the no-longer young. ''If companies are to win back the hearts and minds of mature workers, they need to start with the work environment itself, which has become increasingly alienating to anyone over the age of 50," write a trio of consultants in the latest issue of the Harvard Business Review.
The consultants, from the Concours Group in Kingwood, Texas, spent a year studying human resource practices throughout corporate America. What they discovered were examples of bias --sometimes unintentional -- against older workers.
Like what? How about help wanted ads that use phrases such as ''high energy," ''fast pace," and ''fresh thinking," (translation: Geezers need not apply) or companies that provide twice as much training to young workers as older ones. (Translation: You can't teach an old dog new tricks.)
Some industries are tougher on the over-50 crowd than others. ''The technology business has always been a young person's game; there is a subtle age bias," said Stephen McMahan, an executive with Kforce, a technology recruiting firm in Tampa, Fla. In a range of industries, companies have used buyouts to shrink the workforce. Some older workers take the buyouts happily. Others reluctantly say yes because they fear the alternative is getting fired.
There are companies out there doing a better job. Monsanto and Aerospace Corp. have created programs in which older employees can retire and come back on a part-time basis. Big retailers such as CVS and Wal-Mart have welcomed older workers with open arms. Most recently Home Depot teamed up with AARP, the senior citizen organization, to recruit over-50 employees.
''At Home Depot we believe knowledge, experience, and passion never retire," said Robert Nardelli, the company's chief executive.
The retailers like the fact that older workers tend to be loyal employees. CVS cut its turnover rate sharply after boosting its reliance on more mature staff.
The consultants from the Concours Group say retirement should be a gradual process, as older workers stay on the job, scale back their hours, but still make valuable contributions to their companies and their own wallets.
It sounds nice. Will it really happen?
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