Are Your Boomers Poised to Leave? That Won't Fly
July 07, 2008
Companies are developing incentives to return older workers to the nest
By Carol Patton
What is your company doing to retain older workers? Many employers aren't doing anything. Based on results from a 2006 benefits survey conducted by the Society for Human Resource Management, only 15 percent of HR professionals stated that their organization had changed its benefits program to attract or retain older workers—those at least 50 years of age.
But employers may be facing a time bomb. Skilled workers are in short supply. More baby boomers are approaching retirement. Jobs are getting harder and harder to fill. So some companies are getting creative. Instead of applying sexy recruiting tactics to woo younger workers, they're developing interesting incentives that keep valued, older workers on the job, preventing their knowledge and skills from walking out the front door.
Consider Greenville Hospital System University Medical Center in Greenville, S.C. Roughly 36 percent of its 2,500 nurses are over the age of 50, says Suzanne White, vice president for patient care services and chief nursing officer at Greenville.
In 2006, the medical center used a $75,000 grant from the Robert Wood Johnson Foundation to explore ways to retain its older, more experienced nurses. The funds were used to purchase safety equipment at one of Greenville's community hospitals. White explains that the equipment helps nurses lift and transfer patients and, equally important, avoid muscular skeletal injuries.
Since then, she says work-related injuries dropped by 84 percent while the number of sick days plunged to zero. But among the most important outcomes was that older nurses were no longer quitting because of the physical demands of their job.
"We started thinking about the future and the need for us to retain nurses longer and hold on to that intelligence," says White, adding that the average age of Greenville's nurses is 44. "We made a point that when we were thinking about renovation and construction, we would [think] about the aging worker."
So far, physical accommodations have proven to be the biggest retention factors. For example, instead of a central nursing station on each floor, Greenville created mini care stations for every four rooms so nurses would not have to walk back and forth down long corridors. Nurses can sit at the station and see their patients through large glass windows.
Likewise, supply cabinets were placed near each station, softer flooring was installed and nurses now use motorized or self-propelled beds to move patients. The medical center also created a new part-time position, called nurse ergonomist, which will later evolve into a full-time job called employee safety and ergonomics coordinator.
"[Older nurses] have good judgment and life experiences that are so helpful," says White. "They truly are intellectual capital that we don't want to lose. [We need] to keep them working as long as they possibly can."
Flexibility Rules
Needing money is the number-one reason why people work beyond retirement age, according to AARP. Still, there are other work magnets like staying active, being useful and social networking opportunities. Consider how workers between the ages of 45 and 70 responded to two recent AARP surveys about what they want from employers:
Approximately 90 percent want a worker-friendly environment, 80 percent want opportunities to learn something new and 75 percent want to pursue something they've always wanted to do. More than half also preferred a flexible work schedule, enabling them to set their own hours. While many companies offer adjustable work schedules as part of a formal HR program, Roche empowers its managers to independently make those decisions, says Brad Smith, director of human resources at the worldwide pharmaceutical company, which employs 5,000 workers in its Nutley, N.J., location.
"The knowledge of these workers—those with 25 to 30 years in our industry—is so highly desired because it's such a complex industry," he says. "Employees who want to retire can propose job sharing or part-time work. Our management has the latitude by policy to consider those things favorably."
So do store managers at CVS Caremark Corp., a nationwide drugstore chain. Any employee who works over 20 hours a week can participate in the company's snowbird program, which allows workers to temporarily transfer to different stores throughout the country. There's no annual limit as to how many times an employee can transfer. Last winter, more than 1,200 employees living in northern cities were transferred to stores in warmer climates, says Stephen Wing, director of workforce initiatives at CVS in Twinsburg, Ohio.
A good example is his brother, a 64-year-old CVS pharmacist who lives in Cincinnati. During the winter months, he transferred to a store in Florida. In his absence, a part-time Cincinnati pharmacist picked up his hours, grateful for the opportunity to earn extra cash. When Wing's brother returned home, he and the other pharmacist resumed their normal work schedules.
"This is his second year doing this," says Wing, adding that the program was introduced several years ago. "If we didn't have this program, I don't think he would work. Now he's planning on working into his seventies."
But the program offers other perks besides creating a loyal workforce. He says employees come ready to work, which helps the company manage the increased business in warm-climate stores during the winter months.
"[Employees] see this as a dream," Wing says. "They get with their HR director for their area and set up a location. It's worked out very well."
Older Worker Magnets
Perhaps the best way to figure out what older workers want is to ask them.
Some organizations have formed an older worker task force. Members make referrals from their own social and professional networks and offer advice on how to attract and retain mature workers, explains Michael Jalbert, president of Management Recruiters International, a global search and recruitment firm. He says this approach also demonstrates the company's commitment to age neutrality and its appreciation for older employees. More ideas:
• Establish community connections: Baby boomers value opportunities to give back to their community, says Beverly Kaye, founder and chief executive officer at Career Systems Inter- national, of Sherman Oaks, Calif. Invite them to serve on a community service committee or chair your company's next charity drive.
• Fill the health care gap: Offer medigap insurance. The premium is less expensive than the cost of major medical, helps employees pay out-of-pocket expenses and relieves their anxiety over rising health care costs, says Alan Stafford, president of Stafford Speaking & Consulting Inc., in Charlotte, N.C.
• Train them for new jobs: Many have held the same job for years and want to explore different occupations. Be flexible by training them for other jobs within your organization—even those who work part time. Otherwise, they may end up down the street, working for your competition.
• Place them in teaching roles: While older workers enjoy learning, they also value teaching. One company conducted focus groups with workers over the age of 50. They believed their employer did not value them and felt a subtle pressure to retire. So the company offered them mentoring and teaching roles as a way of validating their knowledge, skills and experiences, says John Izzo, Ph.D., author of Values Shift: Recruiting, Retaining and Engaging the Multigenerational Workforce. "Turnover among the over-fifties declined by 30 percent following the focus group and the implementation of some of their solutions," he says.
• Create new positions: To retain valued staff, some companies also create new positions that incorporate teaching duties. For example, one company's vice president asked a disenchanted sales manager—who was in his 70s—to deliver training to the region's new hires. Not only was he successful, but he also "relished" his new role, which softened his approach with his direct sales team, says Sean O'Neil, principal of One to One Leadership, a management consulting firm based in Pelham, N.Y. Once senior executives learned of his success, they began seeking other semi-retired seniors as regional sales trainers.
Likewise, Wyndham Hotel Group, a global franchiser of 6,500 hotels, helps its mature employees change positions when they can no longer handle the physical challenges of their job, says Rick Badgley, senior vice president of selection and staffing at Wyndham Worldwide in Parsippany, N.J. Instead of sweeping the grounds or setting up meeting rooms, they can, for example, become a host or hostess, greeting guests and steering them to meetings or events at the hotel. Others may be placed in paid coaching or mentoring positions at the front desk or in sales.
"We shift our budgets around to accommodate them," he says. "Because of their intimate knowledge of the hotel, there's a pride factor for them in sharing their knowledge with younger generations."
Meanwhile, Badgley says transportation is often a challenge for older workers. Although rare, he says the company has provided shuttle transportation to and from work for older workers. Plans are also under way to synchronize employee work schedules with local bus schedules and include hyperlinks in online job advertisements to local bus routes and schedules.
Retaining older workers is rarely about money, Badgley says, citing results from a recent employee opinion survey conducted by his company that identified work/life balance, recognition and career path as the most important job factors. Compen-sation ranked fourth.
He says older workers want to contribute, use their minds or intellect and be socially active in their community. "If we can accommodate their flex schedules and transportation, they can be vibrant, vital parts of our workforce," Badgley says.
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