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Top Employers See Value in
Experienced Workers
AARP's Annual Survey Names 35 Best U.S. Companies for Staffers over the Age of 50
Kristen Gerencher, CBS MarketWatch
September 2, 2004
When it comes to keeping older workers happy on the job, employers in sectors facing some of the most pressing labor shortages are leading the way, according to AARP's fourth annual survey of best employers for workers over 50.
Thirty-five U.S. employers made the grade in being the best for older workers, up from 25 that made the list last year, according to AARP's survey, released this week.
Health-care companies accounted for 12 of the 35. Financial firms had the next best representation, with four financial services employers and three insurers making the list. No companies with headquarters in Indiana made the list, though several from Illinois and Michigan showed up.
The Charles Stark Draper Laboratory, a nonprofit research and development engineering firm based in Cambridge, Mass., ousted Baptist Hospital of South Florida to seize the No. 1 spot this year.
Two that made the list, Principal Financial Group and Adecco Group, an employment services company, did so for the third consecutive year while 12 others are two-time honorees. Several manufacturers such as Deere, Pitney Bowes and Welbro Building also were honored.
AARP judged applicants based on four major criteria: recruitment of older workers, continued opportunities and training, benefits and retiree relations, including opportunities for retirees to return to the workplace, said Deborah Russell, AARP's manager of economic security and work.
"Many of the companies we're honoring this year have some sort of program, whether formal or informal, where they're actively recruiting their retirees back into the workplace," Russell said.
Other innovations include programs such as phased retirement that allow workers to reduce their hours without significantly cutting their pay, catch-up contributions for retirement plans, flexible scheduling and child care for older workers looking after grandchildren, she said.
Seventy-eight companies applied to make the list, and hundreds more downloaded the application but never sent it in, Russell said.
Baby boomers tell AARP their top two reasons for remaining in the work force are money and access to health insurance, she said.
Employers are just beginning to realize more older workers will be available in the future, and many firms will need them to offset labor shortages, especially in health care where nursing and other specialties are struggling with staffing already, Russell said.
In 2002, 14 percent of the work force was 55 and older, a portion expected to rise to 19 percent by 2012.
At Charles Stark Draper Laboratory, employees can get all of their master's level education reimbursed regardless of age, assuming they maintain a minimum B-minus average. Draper also pays up to $5,250 per undergraduate program per year, with at least a C-minus average.
Draper also has a hybrid defined contribution-defined benefit retirement plan that matches 10 percent of staff salaries, while staff gets to put in 5 percent, said Jeanne Benoit, principal director of human resources. The firm also offers supplemental retirement plans, where employees can deposit up to a certain percentage of salary for additional retirement savings, she said.
"Experience counts a great deal in the field we're in," Benoit said. "Our experience nets us some incredible work. Every year we set a goal to increase our revenue; then we set a stretch goal. In the last two years, we've exceeded the stretch goal."
The notion that older workers are more costly because they command higher salaries for their years of experience doesn't hold true, Benoit said.
"It absolutely doesn't make it more expensive -- it makes it better for business."
Turnover among Draper's 1,055 workers averages just under 7 percent a year, she said. What's more, the company welcomes back older workers who take off several months to "snowbird" in Florida in the spring.
This is SSM Health Care's first year to be honored as an entire system, said Steve Barney, senior vice president of human resources. The 20-hospital chain employs 23,000, nearly a third of whom are over 50.
SSM has offered phased retirement for four years and legally domiciled adult insurance coverage -- insurance for dependents regardless of age -- for three, Barney said.
Employees who are at least 60 and have five years of vested service can continue working while starting to receive their pension, SSM spokeswoman Patty Klein said.
"We get to keep good workers, and a lot of employees cut back on their hours," Klein said, noting that 142 workers between 60 and 65 participate in the program as do another 231 over 65.
Nearly 800 workers take advantage of the extended insurance coverage, which helps caregivers who have a parent or other relative come live with them, Klein said.
Health-care workers are hard to find and keeping a quality patient-focused team is important, Barney said. "It's widely acknowledged that every single health-care professional is a precious commodity," Barney said. "We just don't have enough people to line up for nursing and respiratory therapy and radiology techs, and that shortage of workers just makes it all the more valuable for us to extend the careers of current workers."
For next year's study, AARP plans to investigate how much older workers cost relative to younger workers in terms of health insurance, Russell said.
AARP also has set up an employer resource center to serve as a clearinghouse of best practices and helpful information about how to retain older workers, Russell said.
TOP 10 BEST EMPLOYERS FOR OLDER WORKERS
The 2004 best employers for workers over 50, according to AARP:
. Charles Stark Draper Laboratory (Cambridge, Mass.) -- 42 percent of U.S. employees are 50 and older
. Deere & Co. (Moline, Ill.) -- 35 percent
. Scripps Health (San Diego) -- 28 percent
. Principal Financial Group (Des Moines, Iowa) -- 16 percent
. Pitney Bowes (PBI) (Stamford, Conn.) -- 23 percent of its full-time work force only
. Volkswagen of America (Auburn Hills, Mich.) -- 24 percent
. SSM Health Care (St. Louis), a 20-hospital chain in Missouri, Oklahoma, Wisconsin and Illinois -- 31 percent
. Scottsdale Healthcare (Scottsdale, Ariz.) -- 28 percent
. Lincoln Financial Group (Philadelphia) -- 23 percent
. Beaumont Hospitals (Southfield, Mich.) -- 24 percent
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