Smart Benefits: Don’t Let Older Workers Go

Monday, October 17, 2011

Amy Gallagher, GoLocalProv Business/Health Contributor

Why you need to say 'yes' to this man

When it comes to older workers, HR professionals agree on one thing: don’t let them go!

Once the economy turns around, those baby boomers who put their retirement plans on hold as they watched their nest eggs dwindle will finally get the chance to make their move… out of the workforce.

But with their departure also leaves a wealth of expertise and experience that can’t simply be transferred to a new generation of workers – it’s the stuff that has to be learned. And that knowledge only comes with time.

So for companies who rely on their seasoned staff to contribute to a company’s operations and growth, it’s time to think about retaining them so they can pass their wisdom onto the next generation. Or they might just spend their golden years contributing to the golden age of some other organization.

With age comes wisdom, and more

By 2014, an estimated 21% of workers will be 55 or older. If this demographic exits the workforce – in force – there’ll be a shortage of employees to replace them, along with the skills this mature set brings. Like what? A great work ethic, better interpersonal communication, perspective, maturity, experience. The list goes on.

The answer? Companies should shift their thinking about this group. Forget “retirement age.” Think instead about all the great reasons to keep mature employees on and adapt your work environment to make sure they stay.

Flex schedules. Many older workers want a better work/leisure time mix so employers need to cater to their schedules by offering flexible hours, part-time positions, job sharing opportunities or project-based work.
Redesigned compensation and benefits packages. Businesses should consider enhancing their benefits to retain experience workers with options such as defined benefit pension plans and long-term care insurance.
Phased retirement. To keep older workers longer, consider offering them the chance to ease into retirement with a phased exit. Not only will this approach allow departing workers a gradual adjustment to life after work, it also gives them plenty of time to transfer their knowledge to their replacement.
Training opportunities. Older workers are generally eager workers, and companies should offer them the chance to learn new skills to keep them engaged. Don’t make them feel obsolete; show them their value by adapting training programs to their needs and talents.

You’re hired, Not fired

In a business, the business comes first, and you need to employ the right person for each role. But if you’re thinking your older workforce isn’t valuable, think twice. Consider the skills, atributes and savings this generation can bring. You never know: if you keep them on board, your younger folks might just learn something from a source other than YouTube.

Amy Gallagher has over 19 years of healthcare industry experience. As Vice President at Cornerstone Group, she advises large employers on long-term cost-containment strategies, consumer-driven solutions and results-driven wellness programs. Amy speaks regularly on a variety of healthcare-related topics, is a member of local organizations like the Rhode Island Business Group on Health, HRM-RI, SHRM, WELCOA, and the Rhode Island Business Healthcare Advisory Council, and participates in the Lieutenant Governor’s Health Benefits Exchange work group of the Health Care Reform Commission.