Rangefinder Magazine
March 2005

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Golden Oldies: New Value in Mature Workers by Phillip M. Perry

Not long ago many employers looked askance at older workers, assuming they lacked the drive and imagination of their youthful counterparts. Besides, went the reasoning, younger people would work for less money. Times are changing. Businesses today are starting to view mature workers as an essential commodity. The reason stems less from humanistic concern and more from changing demographics— Workers are getting older, and their replacements are getting scarcer.

The Workforce Squeeze
In their drive to find quality workers, employers face competing forces. First, people born at the close of World War II are now eyeing golf courses and swimming pools in Florida. “We are facing a huge exodus of people from the workforce as the baby boomers retire,” says Ian Jacobsen, a Sunnyvale, California-based workplace consultant.

Normally, one would expect younger prospects to rush into the vacuum. But the baby boomers now retiring were the ones responsible for the rapid population growth that has begun tapering off. The result is fewer younger people to fill the employment breach.

The downshift in the population engine is occurring at a time when a generally healthy economy has just about tapped out the talent market. “We are living in the fullest employment era we have ever had,” says Mel Kleiman, president of Humetrics, a Houston-based consultancy. “And we cannot afford to lose any workers. The reason is that women, who used to provide the supplemental workforce from which employers could pull, are now at full employment as well.”

All of these forces are coming together to increase the demand for older workers. We are entering a period in which the highest growth rate in the workforce will be among individuals aged 55–64. By 2015, according to the AARP, one of every five employees will be at least 55 years of age. That’s an increase of 10 million people in an age group, which now accounts for 14 percent of employees.

Keeping Older Workers
Like any commodity, then, older employees are getting more valuable as they get scarcer. What can you do to keep your own? Here’s what workplace psychologists say:

Step #1: Eliminate stereotypes. Start by making sure your own supervisors worship no false gods of youth. Everyone must come to a fresh understanding about the value of mature employees.

“Employers will have to change their attitudes toward older workers,” says Harriet Hankin, president of CGI Consulting Group, Malvern, PA, and author of The New Workforce (See Sidebar 1). “Older workers have a stronger commitment to quality, experience lower turnover, take fewer days off, are not as tardy and have excellent judgment based on years of experience.” Recent studies by the National Council on the Aging (NCOA) found that in comparison with their younger counterparts, older workers had a higher level of commitment to the organization.

Step #2: Motivate Older Workers. While younger workers may be motivated by high salaries and the possibilities of advancement, these may not be the primary concerns of your mature workers. “Older workers need to feel respected, appreciated and supported,” says Jacobsen. “While these elements are keys to success with all workers, they are especially important when people are no longer working strictly for economic reasons. When work is competing with family interests and leisure pursuits, the psychic rewards become paramount for retention and motivation.”

If money does not motivate many older workers, what does? The best way to find out, suggests Kleiman, is to ask. Try a straightforward: “Why do you still want to work?” Be prepared for a surprise answer and a resultant change in your motivational tactics. An AARP survey found that workers over 45 most desired a friendly work environment (94 percent); respect from coworkers (90 percent); opportunities to use their skills and talents (94 percent); to do something worthwhile (91 percent); to learn something new (88 percent); to help others (86 percent); and to pursue something they’ve always wanted to do (75 percent).

Given those motivations, you may hear responses such as “I want to make a difference in the world,” or “I don’t have any outside interests.”

Those answers suggest fundamental differences in motivation that you need to understand. An individual who wants to leave a good mark on the world might be motivated by assignments to mentor younger employees in areas such as good communications skills or winning sales techniques.

After an interval of time, find out if the worker is getting the rewards desired. Make a point to return to the subject of motivation time and again. Feedback from workers will provide valuable clues on techniques to interact with the worker and offer incentives that motivate them to stay with your business.

And don’t overlook mentoring as a way of boosting workplace performance and job satisfaction. Successful managers, says Hankin, understand that the generations can mentor each other. “We have found, for example, that the World War II generation matches nicely with the ‘millenials’ now entering the workforce.” Younger workers can explain new technology while older workers provide wisdom and experience.

Step #3: Introduce flexible policies. Flexible work schedules and phased retirement can work well, says Jacobsen. Older workers who want more time with family or outside interests may welcome part-time schedules that allow the retention of employer-sponsored health insurance. (Note: Be sure to clear policy changes with your attorney to avoid any appearance of age discrimination.)

Other ways to introduce flexibility: Flextime allows workers to start their eight-hour workdays at any hour. Job sharing allows two employees to share the same position, working with each other to coordinate schedules. Short-term projects and special assignments allow individuals who wish to retire to continue contributing to your business.

Step #4: Resolve conflicts with younger bosses. Conflicts may arise when older workers report to younger bosses. Move quickly to resolve these problems in your workplace. The younger supervisor should invite the older employee to a private meeting to discuss friction and resolve the issue through mutual understanding. (See Sidebar #2.)

Communication is the key. “There is no reason why older and younger workers cannot get along when they respect each other,” says Jacobsen. “It is important to communicate your respect and care for the other person, and the fact that you want to improve the relationship. If this message comes across, age usually melts as an issue.”

Take Action
Employers who fail to create work environments friendly to older workers will find them jumping ship. Be a successful employer who addresses the relevant issues of workplace attitudes, mutual respect, flexibility and conflict resolution. Your mature workers will stick around to lend their expertise and energy to your business.

Sidebar #1: Get More Information
The New Workforce, by Harriet Hankin (New York: AMACOM, 2004, $27.95)—how employers can address the challenges of a changing population.
“Staying Ahead of the Curve: The AARP Work and Career Study.” What motivates older workers? That’s the question answered by this study, available at www.aarp.org/. Using the menu at the left side of the screen click on “Money and Work” then on “For Employers” then on “Research and Data.” Then click on the report title. There is also a relevant companion report, “Employer Best Practices for Mature Workers” accessed through the same menu.

Sidebar #2: Younger Boss, Older Worker
Age differences can spark misunderstandings between bosses and subordinates. How can you handle them? We ran two common scenarios by Ian Jacobsen, a Sunnyvale, California-based consultant who has devoted over 20 years to resolving workplace issues.
Here are his suggestions:

Scenario #1: “The New Boss.” You are a 24-year-old individual who will be taking a position senior to Bob, who is 55. What steps might you take to obviate difficulties?

Jacobsen: “I would set up a one-on-one meeting with Bob to get to know him. I would ask what matters to him in his relationship with his boss. I’d ask him to describe the best boss he has worked for, and the worst, and what each did to earn that reputation. I would tell Bob what I could do to try to make life easier for him and bring out the best in him. I would explain what is important to me as a boss and my expectations of him.

“I would then schedule weekly feedback sessions for the first month to discuss how the relationship is working out for each of us, and then go to monthly sessions. In my interactions with Bob I would endeavor to make him feel that what he was doing was important, and that I respected and appreciated what he was doing.

“If problems arose, I would explain what happened from what I knew, ask for his take on the situation, and work with him to correct the problem. Using this approach I would try to demonstrate to Bob that I was a good person to work for, no matter what my age.”

Scenario #2: “Troubling Rumors.” You have overheard gossip that Wilma, an older worker, does not like working for you because you are too young. What steps should you take?

Jacobsen: “I would not initially confront Wilma directly on the gossip. Instead, I would meet with her to get feedback on how things were going. I’d ask, ‘What do I do that helps you get your job done? What do I do that makes your job more difficult? What would make a difference to you if I changed?’

“Then, as with Bob, I would set up subsequent feedback times to find out how things are going. If the gossip persisted I would confront Wilma and say, ‘Wilma, what’s going on? I’ve been asking you for feedback on how I am doing as your manager, and I have been making every effort to adjust what I do to bring out the best in you. Yet, I keep hearing comments that you don’t like working for me. Is the gossip correct? What does it take to earn your respect?’

“If, after my best efforts, Wilma is still complaining I’d say, ‘Wilma, this is the feedback I am getting from others about what you are saying about me behind my back. If this is true, and is the way you feel, then I have no place for you on my team. I can’t afford to have someone on my team who feels about me the way you seem to. It is not good for anyone, so I am letting you go.’”

New York writer Phillip M. Perry has been published widely in the fields of business management and law. A two-time recipient of The American Bar Association’s annual award for editorial excellence, Perry was awarded an M.A. in the humanities from California State University. He maintains a web site at www.editorialcalendar.net and can be reached at phil@pmperry. com.