Hiring Older Workers

In a tight labor market, the over-50 workforce looks a lot more attractive.

The aging of the U.S. workforce has often been cited as a sign of trouble: The fear is that labor shortages would appear as the 76 million Baby Boomers start to retire. Indeed, the Bureau of Labor Statistics projects a shortfall of 10 million workers in the U.S. by 2012, when the Boomer retirement wave begins to swell.

But, at least for now, the aging workforce can be a plus for small businesses that are having trouble recruiting younger workers in a tight labor market (see earlier SBR story on that topic here). That's because there are many thousands of over-50 workers who have been displaced from corporate jobs through downsizing or have retired but still seek the income and psychic rewards of work.

Just ask Kevin McGillivray, owner of the KEM Group, a financial services and tax preparation firm in Danvers, Mass. McGillivray needed CPAs to get through the tax season, but he figured that in a strong economy it wouldn't be easy to get a qualified accountant who would settle for a short-term gig. Then he read an article about retirementjobs.com, a new online job site specializing in older workers and placed an ad. In several days he had six applications and wound up hiring a former corporate controller in his fifties and a 62-year-old retired H&R Block employee.

McGillivray says he's happy with the results. “You’re getting a more mature worker, who has experience, and can be flexible,” he says. The men will work 30 hours a week—without benefits—until April 15th and have no guarantees about future employment. McGillivray says that hiring two part-timers instead of two full-time CPAs saved him 70%.

Resources:
Lost Knowledge: Confronting the Threat of an Aging Workforce, written by David DeLong (Oxford University Press).	Bridging the Generation Gap: How to Get Radio Babies, Boomers, Gen Xers and Gen Yers to Work Together and Achieve More, by Linda Gravett and Robin Throckmorton (Career Pro).

Many small businesses are finding that the mature worker is dependable, loyal, and will stay longer than younger workers who operate more like free agents in baseball, says Bob Skladany, director of research at Retirementjobs.com, located in Wellesley, Mass. His site, which launched in 2006 and specializes in retail, health care and customer service jobs, is one a several recruiting sites that cater to workers over 50. Others include seniors4hire.org, seniorjobbank.com, and yourencore.com, which focuses on connecting retired engineers and scientists with employers.

Pricing on these sites varies, but can cost as little as $99 for a 30-day run. You pay more for bold listings and better placement.

Despite the appeal of hiring experienced talent, small businesses have earned a reputation for being more ageist than large employers, says Skladany. A 2005 AARP/Towers Perrin “Business Case for Workers Age 50+” study noted that small business owners fear hiring 50-plus workers because they don’t want their health insurance premiums to rise. But, the same study noted that small businesses that hired older workers said most exceeded expectations.

Though the AARP report did not go into an analysis of whether hiring older workers led to increasing health care costs, it did state that “The benefits of maintaining a stable workforce and avoiding turnover costs can exceed the incremental compensation and benefit cost for older workers.”

Small business owners may also consider older workers to be resistant to change and less innovative. But the data contradict those misconceptions. Workplace surveys have found the over-50 employees to be as productive as younger ones and just as committed to getting the job done. They may also be more reliable and less distracted than younger workers. Additionally, they may reduce turnover because they are willing to stay in place longer than younger workers, who are seeking advancement, says Michael Smyer, director of the Boston College Center on Aging and Work. “And because of their experience, they know how to handle problems,” he points out.

Another plus: Many older workers are looking for flexible schedules and/or temporary assignments, which may address the needs of small businesses that don't want to add more permanent staff and keep a lid on benefit costs. A 2005 study by the Boston College Center on Aging and Work found that 50% to 66% of retirees expect to seek bridge jobs, which are defined as part-time or short duration work, for at least five years after retirement. The reason? Most people facing retirement don't have adequate savings to maintain their standard of living.

Though anti-discrimination laws prohibit businesses from showing bias against older workers, small businesses can actively recruit them. Help wanted ads can state that the company “is age friendly, welcomes candidates of all ages, particularly downshifting candidates,” Skladany notes. Roberta Matuson, president of Human Resources Solutions, based in Northampton, Mass, says a company can send out a subtle message by featuring photos of older workers on its Web site so that “everyone in the company doesn’t look as if they belong in a Gap ad.”

Some recent listings by small business at retirementjobs.com have included an aquarium seeking retired teachers to work as tour guides and a bakery that wanted part-time staff at mid-day peak hours. “Older workers are ideal for part-time roles,” Skladany says.

There are, of course, cultural issues. Will a 55-year-old accept a contemporary of his Gen Y kid as a supervisor? Will the younger workers treat him as a comrade? Skladany suggests that you address these issues head-on. Sit the young supervisor and his new employee down and talk through questions such as: “What do you find most and least helpful when being managed by a younger supervisor? What are the most and least helpful things an experienced worker can do?”

Here are specific tips for hiring 50-plus workers:

• Flexibility is key, suggests Matuson. Some older workers want to work only 20 hours a week or three part-time days. Some would prefer to telecommute.
• Network, network, network, Matuson advises. If you’re having a hard time finding older workers, attend church meetings, go to a senior center, or hang out at the local golf course.
• Retirees who have health coverage may be happy to accept reduced health care benefits, in return for competitive pay, Skladany suggests.
• Fifty-plus employees can be perfect for part-time or seasonal work because they want to augment their income and continue to be engaged, but don’t want full-time work, McGillivray noted. CVS, the drugstore chain, has created a “snowbird” employment program that lets an older worker sign up for six months at a CVS in the north and get a similar job in Florida or Arizona in the winter, when they go south.