Getting Ready For Older Workers - issues when hiring the aged

They're ready for you, and you're going to need them. Here's how to shed your misconceptions, learn the facts about Social Security income limits, and find sources for older workers who "bring a whole wealth of knowledge and experience as well as a very strong work ethic."

AGING WORKERS ARE IN YOUR FUTURE, whether you realize it or not. According to figures from the AARP, from now through 2004, the percentage of the population that is in the workforce will grow by a minuscule 0.1 percent annually. At the same time, the pool of male workers age 55-64 will grow by 43 percent and the pool of female workers in the same age range will increase by 63 percent. Another AARP study found that 80 percent of the baby boomers, those born between 1946 and 1964, plan to work at least part-time after their normal retirement age. Roughly a third (35 percent) plan to work for their own interest and enjoyment, and about a quarter (23 percent) plan to work because they want income.

But they don't necessarily want to fall back on the traditional "older worker" jobs like child care or being a security guard. Many of them are looking for work in areas where they have experience, have an opportunity to learn something new, can make some decent money, and will enjoy professional and social interaction. Others don't want to look for a job at all--they want to keep the ones they have past the age when they would normally retire.

At Zabin Industries in Southern California, Dave Frank, vice president of operations, doesn't even worry about people retiring because of their age.

"I think Robbie set the tone for that," he says. Robbie is Robbie Eisenberg, cofounder of the company and the man who, at 102, was recognized last year as the oldest worker in America.

For other employers, the tight employment markets in some geographical and industrial areas are causing them to either rehire workers they've retired or offer transitional retirement plans that give them access to valued employees who are passing their normal retirement age.

When you keep the employees you have longer, you at least know what you're getting. However, when it comes to making new hires, misconceptions about older workers can discourage HR professionals from giving them a serious look.

When talking to executives from other companies, Frank has found that there is a misconception that older workers are less productive, making others carry their weight. He found that, if anything, the older workers tend to set an example of hard work for their younger coworkers.

The biggest misconception is that older workers will not be in the workforce for long, making them uneconomical, and that they are not as healthy or vital as younger workers, says La Donna Burgess, HR coordinator at Poorman-Douglas. The company has been recognized as a "Prime Time Employer" by Green Thumb, which provides training and employment opportunities for older workers. "We've found [older workers are] extremely reliable and very loyal," she says. "I think they are an excellent workforce from an HR perspective. They bring a whole wealth of knowledge and experience as well as a very strong work ethic."

In fact, loyalty is the top quality of older employees, according to a study of HR managers conducted by AARP. The same study found that older workers have a commitment to doing quality work, can be counted on in a crisis, and have a solid performance record.

You have to recognize that these workers have some needs that are different because of their life-stage. While they are not likely to need maternity benefits, they will need health care at least until they reach age 65. At that time, they will qualify for Medicare. When you are evaluating health-care options for your employees, you will want to consider how providers will interface with Medicare in terms of integrating Medicare Part B into your health coverage for your employees who are 65 and older. Workers who retire before their normal retirement age (which is going up) and who have signed up for Social Security have special financial considerations.

Another factor that will require sensitivity on the part of the HR staff is that older workers who have been out of the job market for a while may need extra support as they re-enter. Don Andersson, author of the forthcoming Hire for Fit (Oakhill Press, May 2001), says, "It's a very different workforce into which older workers return. Much less personal, often more transactional." He adds that this can cause added stress for both the worker and for those who work with him or her.

As you deal with older workers, you will find that one of the pleasant surprises is the way they look at their jobs. They bring loyalty, experience, and wisdom. Unlike the under-35 cohorts, who, according to a study by Xylo, rate perks and salary as the top two job requirements they seek from an employer, workers age 55 and older most value a positive work environment and useful information/advice.

Employers have to realize that there is a crisis developing, and they must find ways to attract qualified workers as the pool of new workers gets smaller, Burgess says. "You can't wait for 10 years to start thinking about this when it becomes a crisis. It's important to be thinking about your policies and practices today." Older workers are "a segment of the population you're going to be wanting to access and recognize," she says. "Start thinking about what their needs are and getting their input so that 10 years from now, you're the employer of choice."

Donna G. Albrecht is a freelance writer based in the San Francisco Bay area.

Retirement? Not For America's Oldest Worker

At first glance, the nattily attired older gentleman with the ramrod-straight posture could be any experienced executive at Zabin Industries in Los Angeles. But Robert (Robbie) Eisenberg is much more than that. At 102, he has been named America's Oldest Worker by Green Thumb, the leading provider of training and employment opportunities for older workers.

Like most people, Eisenberg tried retirement. Didn't like it. For roughly 10 years, when he was in his 70s, he traveled around the world, played golf and tennis, and enjoyed game fishing. Those are the kinds of things most people dream about, but soon Eisenberg was bored, and when he received a call to go back to work at Zabin as a consultant in 1979, he jumped at it.

Zabin Industries manufactures and distributes zippers and notions for the garment industry, a field often thought of as a game for the young. It is a fast-paced business where the demands and products change seasonally. It might be tempting to think that Eisenberg, who was a cofounder of the business in 1954, was brought back as a figurehead, but he's not about to be put on a pedestal. Alan Faiola, president of Zabin, says, "He wants to be treated as a friend, not an icon. If you don't let him be involved, it doesn't make much difference. He'll get involved."

As a young man, Eisenberg attended New York University and studied pre-med. Then came World War I, and he was drafted into the Army. After his service, he entered the garment business, where he built his long career.

Eisenberg has strong feelings about the place of older workers in our society. "They can serve well beyond the ages they're retired. Most of them have the ability to do it, and the desire.

"One deteriorates so quickly doing nothing," he says, "and I call fishing and playing golf doing nothing. You get bored with it."

Alan Faiola credits Eisenberg's long, successful career to his attitude. "Here's a guy who always looked to the future. That's the thing that probably keeps him mentally sharp. He always talks about what's going to happen, what lies ahead. I learned more about what Robbie did in the last 50 years from this award he received than I ever learned from him."

Even at the age of 102, Eisenberg is still looking ahead--and still has a great sense of humor. When asked how it feels to be the oldest worker in America, he replies, "All right. I only hope I can continue to be!"

Case Study: Poorman-Douglas succeeds with its over-65 workforce

Because Poorman-Douglas Corporation is in Oregon's Sunset Corridor (the equivalent of California's Silicon Valley), it already has discovered how valuable older workers can be in a tight job market. Poorman-Douglas is primarily known for its print/mail division that provides high-speed check, invoice, and other mailing services and its legal services division, which does legal noticing and claims processing. The company has about 265 permanent employees, but sees its workforce spike to 400 to meet demands in its production and processing areas.

Poorman-Douglas received two honors last year for its work with older workers: the medium-sized company Prime-Time Employer of the Year from Green Thumb and Oregon Business magazine's "100 Best Companies to Work for in Oregon." La Donna Burgess, HR coordinator at Poorman-Douglas, says that its reputation for being a good place for older workers has been "extremely positive for us for recruiting purposes."

Poorman-Douglas's experience demonstrates several ways that older workers can be successfully integrated into the workforce. Burgess notes that roughly 10 percent of the permanent workforce is over age 65. Many of these people have been with the company for most or all of their careers. Employees determine when they want to retire and whether they want to do it all at once or transition into retirement over a period of time.

Burgess says that about 15 years ago, the company decided it needed a flexible workforce available on an on-call basis to come in and hand-process mail for special clients. "We found that by relying on older workers to do that, we could keep a steady workforce and access the same people because it was a good job that fit their lifestyle and their economic needs." About 10 years into this program, many of the first group of employees began retiring permanently, and Poorman-Douglas began looking for replacements.

When Poorman-Douglas went looking for a source for older employees, it found Experience Works, an employment agency for older and disadvantaged workers, at a job fair. Burgess says the company reaction was, "My gosh, we've just hit the mother lode here."

The company has used Experience Works to find workers for all areas of the business. As Burgess notes, few people have the exact experience to come into this company. However, if people have basic skills from a profession such as teaching, the company can train them in the specifics of the jobs.

Burgess has found that older workers tend to need less accommodation than people might think. When she did a survey of older workers, she was pleasantly surprised at their responses. They noted the number of older workers and found that "they were treated and respected and integrated into the population just like everybody else. That was what they were looking for, and that was what they appreciated about working for Poorman-Douglas," Burgess says.

Finding Older Workers

When you're looking for excellent employees, it helps to know where to find them. To find older workers for your company, try some of these sources:

1. Green Thumb is the leading employment and training program for mature and disadvantaged Americans. Working with them is like working with any good employment agency. They probably have an office near you. Check them out at www.greenthumb.org.

2. Professional societies for your area of business or the skill you need are great places to look for retired talent that is ready and raring to come back.

3. Senior centers have many members who could be interested in filling your temporary or seasonal jobs that do not require specific professional skills.

4. Advertising in local or regional senior lifestyle magazines may also attract active older workers who are looking for temporary or seasonal opportunities.

5. Check with some of your recent retirees who may be interested in coming back as consultants or contract workers. They have the advantage of already knowing the company processes and procedures.

Workplace Safety For Older Employees

Preventing injury is critical to maintaining a healthy workforce--and a healthy corporate bottom line. Michael Weinper, M.P.H., P.T., is a physical therapist and cofounder of PTPN, the nation's largest network of outpatient rehabilitation services. He notes that there are proactive steps that HR professionals can take to make the workplace safer and healthier for older workers. They'll also benefit employees of any age:

1. Adapt job duties to accommodate age-related conditions such as reduced muscle strength and motion. Older workers may have to avoid heavy lifting or share jobs that require strength and flexibility. A job-rotation schedule will prevent overworking body parts, especially for older workers, who may fatigue faster and take longer to recover.

2. Make sure that employees have ergonomically designed work environments and equipment. An ergonomically correct work area keeps the body in a comfortable position that enhances efficiency while avoiding injuries caused by awkward, prolonged movements.

3. Implement diagnostic and training programs (including post-offer, pre-placement exams for new hires) to prevent specific conditions such as carpal tunnel syndrome and tendinitis. Some companies, for example, require employees to attend a "back school" as part of their injury-prevention programs.

4. Invite health-care providers to lecture on wellness and age-related topics such as arthritis, hearing loss, nutrition, weight control, cessation of smoking, and drinking. Instituting stretch/walk breaks in addition to the lectures will teach employees simple yet effective ways of reducing long-term physical and psychological stresses that can lead to injury.

5. Choose health plans that permit employees to see practitioners from different disciplines, including physical and occupational therapists. Complementary therapies give workers alternatives to drugs and treatments that may have significant side effects. Older workers can have stronger reactions to medications that can cause drowsiness, confusion, and slowed response time, affecting how they perform their jobs.

Income Cap Issues for Social Security Recipients Under Age 65

When the Senior Citizens' Freedom to Work Act of 2000 was signed by President Clinton, some HR pros breathed a sigh of relief, thinking it would now be easier to hire Social Security recipients because they no longer had to worry about earning limits. It wasn't that simple. While the legislation removes the earnings cap for people between the ages of 65 and 70, there is an earnings cap for those who take early retirement and collect Social Security before they reach their full retirement age. There can be many reasons why someone who took early retirement may want to re-enter the workforce. Some might not have liked retirement as much as they expected. Other workers might have retired to care for an ill spouse whose health situation has been resolved. It might also be that there are individuals who have irreplaceable skills that the employer wants back. New hires or rehires who are receiving Social Security will have specific financial needs that the HR department must be prepared to address.

Briefly, those workers are penalized financially for earnings over a certain threshold that they make prior to the month when they reach their full retirement age. According to Lowell Kepke, spokesperson for the Social Security Administration's office in San Francisco, there are some key facts you need to know:

1. Retirement age: "Full retirement age," when an individual is qualified for full Social Security payment, is on its way up. For people born in 1938, the full retirement age is 65 years and two months. By the time people born in 1960 are ready to retire, the full retirement age will be 67.

2. Deductions: If an employee is under his "full retirement age" when he begins receiving Social Security benefits, $1 of those benefits will be deducted from his Social Security entitlement for each $2 he earns above the annual limit.

3. Limit of Unaffected Income: The annual limit will rise with the cost of living. For the year 2000, it was $10,080. For this year, it is $10,680. Next year's limit will be announced by the Social Security Administration in October.

4. Year Employee Reaches Full Retirement Age: The rules are much more complicated for the year the employee reaches full retirement age. In some respects they are more liberal. But because of the complexity, Kepke advises people to contact the Social Security Administration at 800/772-1213, or to talk with their personal financial advisers.

COPYRIGHT 2001 ACC Communications Inc.
COPYRIGHT 2001 Gale Group