Employment Solutions for an Aging Society

1

• Employment Solutions for an Aging Society
• Are You Ahead of the Curve?
• Charleston Rotary Leadership Forum
• February 2006
• Tim Wollerman, Manager of Work and Career Issues
• AARP

2
Americas Aging Workforce

• Significant Demographic Changes in the US
• In 2002, 14 of the workforce was 55 and older.
• By 2012, 19 of the workforce will be 55 and
  older.
• Highest growth rate in workforce will be among
• persons aged 55-64.

3
Labor Shortage

• Baby Boomers represent nearly 50 of the U.S.
  workforce.

4
Skills Shortage

• Jobs with Current Shortages
• RNs and other health-related fields
• Teachers
• Public administration
• Jobs Likely To Have Shortages
• Highly skilled professionals
• engineers
• scientists
• skilled craft people

5
Are Employers Ready?

• 60 of CEOs indicate their companies do not
  account for workforce aging in their long-term
  business plans.

6
The Business Case for Workers 50

• AARP Report Prepared by Towers Perrin Planning
  for Tomorrows Talent Needs in Todays
  competitive Environment
• Nearly 70 of workers who have not retired report
  that they plan to work into their retirement
  years or never retire.

7
Whats Important to 50 Workers?

• Salary
• Health Care
• Companies who value employees opinions
• Flexible work arrangements
• Opportunity for new skills and experiences
• Good Benefits
• Resources and time off for caregiving

8
How Could Caregiving Affect Employers?

• Cost of absenteeism/partial absenteeism
• Cost of workday disruptions
• Cost of supervising employed caregivers
• Cost of replacing an experienced employee is
  estimated at 50-93 of the first years salary
• 10 of caregivers quit

9
Best Practices and Business Solutions

• Maintain the Internal Talent Pool
• -Knowledge Transfer and Retention
• -Succession Planning
• -Mentoring
• Flexible Work Options w/ Pro-rated Benefits
• -Part-time -Flex-time
• -Job Sharing -Temporary/Seasonal
• -Telecommuting -Consulting/Contractual
• Phased Retirement
• -Reduce Hours, Maintain Retirement Benefits

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Best Practices and Business Solutions

• Career Development and Training
• -Continual Training for All Age Groups (including
  24/7 online)
• -Career Mobility and Sabbaticals
• -Tuition Reimbursement
• Benefits
• -Core Benefits Medical, Dental and Disability
• -Defined Benefit Pension Plans
• -Employer Match for Defined Contribution Plans
• -Health Coverage for Part-Time
• -Automatic Enrollment in Defined Contribution
  Plans
• -Long Term Care Insurance

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Best Practices and Business Solutions

• Recruitment
• -Age Diverse Recruitment Materials
• -Recruit at Senior Expos and Job Fairs
• -Rehire Retirees and Retiree Associations
• -Hiring Partnerships
• -Workplace Trainings on Mature Workforce
• Workplace Adaptations
• -Improved Lighting
• -Ergonomic Furnishings and Equipment
• -Computer Adaptations
• -Wellness Programs

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2005 AARP Best Employers for Workers over 50
Program

• Michelin North America Greenville, SC
• Flexible work schedules including phased
  retirement
• Tuition assistance
• Actively recruits retirees on a part-time basis
  or as an expert/mentor for projects
• Training program for developing general,
  managerial, and functional skills

13
Gain A Competitive Advantage

• Inventory your current talent and define your
  future needs
• Study the available labor pool and define your
  talent strategies
• Align workplace policies and culture to support
  your replacement/retention strategies

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Resources

• AARP Employer Resource Center website
  www.aarp.org/employerresourcecenter
• AARP South Carolina State Office 866-389-5655
• AARP Website
• www.aarp.org
• Employer Newsletter
• best.employers_at_aarp.org