From the Los Angeles Times
LABOR
Companies try to retain older workers
By Jonathan Peterson
Los
Angeles Times Staff Writer
September 3, 2007
Every time John
Remore steps up to his workstation to form a piece of sheet metal, he brings an
intangible asset to the job: 42 years of experience, dating to lessons from his
father.
Remore, 60, doesn't brag, but that won't stop his boss. "He's
invaluable. He is priceless," said Kellie Johnson, president of Torrance-based
Ace Clearwater Enterprises, which makes parts for big aerospace
companies.
She worries that when Remore and others of his generation
retire, she will find it almost impossible to replace their skills. The average
age of her workforce is 48.
"We're in the fight of our lives for skilled
talent," said Johnson, whose grandfather launched the business in the 1940s
welding bicycles, coffeepots and tools. "Looking forward, that will be the No. 1
issue that affects our ability to compete in the global marketplace, without a
doubt."
In a society that exalts youth, older workers may sometimes feel
like outcasts of the economy -- prodded into early retirement by corporate
buyouts, overlooked for training and promotions, typecast by younger managers as
past their prime.
Indeed, one 2005 study found that job applicants under
age 50 were 42% more likely to be called for interviews than those over
50.
Yet there may be early glimmers of change. The oldest baby boomers
are entering their 60s, raising the prospect of a vast wave of retirements. The
post-World War II baby boom, moreover, was followed by a smaller "baby bust"
generation.
As a result, some employers are worried that they will lose
too many people -- and are pioneering policies to make the workplace more
friendly to older employees.
"I think we're beginning to see a much
broader range of options and opportunities for mature workers," said Diane
Piktialis, a specialist in older-worker issues with the Conference Board, a
business research organization in New York. "This is an area where there's just
enormous room for creativity in terms of how companies can
adapt."
Concerns are particularly acute in the areas of manufacturing,
healthcare and government.
In the 3-million-member federal workforce, for
example, 6 out of 10 employees could retire over the next decade, prompting a
recent congressional proposal to lure retirees back to work with new financial
incentives.
In other cases, certain companies are showing a willingness
to make work schedules more flexible, an approach much desired by older
employees.
At CVS pharmacies, more than 1,000 employees take part in a
"snowbird" program that allows them to migrate between stores in different parts
of the country as the seasons change.
Pharmacist Bill Duclos, 80, shifts
his part-time job in Massachusetts every October to a CVS store in Florida. The
arrangement lets him spend part of the year in the Northeast near his children,
grandchildren and a great-grandchild, and part of the year enjoying golf,
shuffleboard and card games in Florida.
It also happens that his seasonal
pattern tracks business realities, because the Florida stores are much busier in
the winter, when snowbirds such as Duclos show up.
"It works out for
people like me -- and it works out for CVS, I guess," he said. "We're very happy
with the way things are going."
Managers of the Rhode Island-based chain
of drugstores say there's another benefit: The older workers sometimes are
friendlier to customers and have a better work ethic than their younger
counterparts.
"It gives us a competitive advantage," said Steve Wing,
director of government affairs for CVS, which began the snowbird effort as part
of a broader initiative to hang on to older employees.
"If we don't
continue to recruit and train and retain older people, we won't have a business.
We rely on them. We need them."
The need to be fully staffed isn't the
only reason employers are seeking to retain older workers. Some retail
executives believe these employees are more tuned in to the needs of aging
customers.
In the book business, for example, more than half of consumers
are older than 45, a finding that prompted Borders Group Inc. to intensify
efforts to employ middle-age workers. Today, 16% of its 32,000 employees are
over 50 -- up from 6% several years ago.
"It really makes sense -- from
an employment perspective -- for us to target individuals who are over 50,
because so much of our consumer population is over 50," said Suzann Trevisan,
director of organizational development for Borders Group in Ann Arbor,
Mich.
Although such views are not in sync with much of popular culture,
they may become more common as the population gets older.
About one-third
of employers have adopted strategies to a moderate or great extent designed to
help older workers hang on beyond the traditional retirement age, according to a
survey of 578 employers by researchers at Boston College.
And older
workers may increasingly be a fact of business life. From now to 2014, the
population of workers 55 and older will increase at four times the rate of
overall labor force growth.
During this same period, younger age groups
will grow much more slowly. The 78.2 million boomers, born from 1946 to 1964,
were followed by a baby bust generation that is about 16% smaller in
size.
Starting next year, the oldest baby boomers will turn 62,
qualifying for Social Security early retirement benefits.
Some have
predicted that mass retirements by baby boomers could trigger a disruptive
shortage of workers in the coming years, depriving the U.S. economy of millions
of needed employees and an immeasurable wealth of skills.
But some
economists say the concerns are overblown. Employers can move jobs overseas,
they point out. Companies can invest in labor-saving technologies. They can
restructure jobs. And, economists argue, they can pay more money to attract the
workers they require.
"I don't think there's any possibility of there
being a major shortage," said Richard B. Freeman, a labor economist at Harvard
University.
Still, some companies and industries are bracing for an
exodus of boomers. Those with the oldest workers, including government,
manufacturing, utilities and transportation -- as well as those already
contending with skill shortages, such as the healthcare industry -- may face
pressure to overhaul benefits and other policies in a bid to recruit and retain
older workers, experts believe.
To help meet the need for nurses,
Massachusetts General Hospital now provides lengthier training for older nurses
who wish to return to their occupation but are no longer current with the latest
technology.
"It's a pretty big thing to be able to say, 'We'll be patient
and we're able to work with you a little bit longer,' " said Patricia Sheehan, a
human resources manager.
The issue is not limited to the private sector.
Last month, Sen. Susan Collins (R-Maine) introduced a bill that would enable
federal agencies to rehire retired workers on a limited, part-time basis without
the usual penalty -- a pay cut tied to their retirement benefits.
"This
legislation will prove vital as the federal government loses many of its
skilled, experienced, senior employees," Collins said.
Some believe that
employers are starting to get the message. Since 2001, AARP has put together a
list of "best employers" for workers older than 50, based on such matters as
recruitment practices, training and education opportunities, benefits and
support of work options, including flexible scheduling and job
sharing.
Companies in the healthcare and education fields have dominated
the list, but a smattering of firms have been cited in manufacturing, retail and
finance.
"The number of candidates . . . is not only increasing but
diversifying by industry," said Deborah R. Russell, AARP's director of workforce
issues.
One concern is that retiring boomers will take their knowledge
out the door with them, creating a shortage of valuable know-how.
At Ace
Clearwater, senior workers try to pass their craftsmanship to the younger
generation.
"We try to help them every chance we get," said Remore, a
longtime employee whose machine is known as a drop hammer. "We'll try to give
them a job that it doesn't take much to know. As they progress, the jobs get
harder."
The aging of the workforce is not the only reason the company
struggles to keep an adequate pool of skilled workers. The scarcity also owes to
manufacturing's lack of allure for the young, and more stringent skill demands
than in the past.
To recruit and retain workers, the company offers
signing bonuses and flexible scheduling, Johnson said. At the same time, she
feels strong pressure to keep costs in line and cannot always match salary
offers from other firms.
Last year, for example, Northrop Grumman Corp.
offered a highly skilled machinist $8 an hour extra to jump ship. "We can't
compete with that," Johnson said. The company, which employs 180, has needs for
welders, engineers and machinists.
It is unclear just how far the
enthusiasm for older workers can spread. Yet some insist the possibilities are
vast.
Employment firm RetirementJobs.com. reports leading older workers
to jobs with a broad range of financial, manufacturing and retail employers,
including Metropolitan Life Insurance Co., New York Life Insurance Co.,
Principal Financial Group, Pitney Bowes Inc., Staples Inc., H&R Block Inc.
and Safeway Inc.
"We're watching a very, very pleasant change occur,
where industries that have traditionally relied on bright-eyed and bushy-tailed
young people are now relying on older workers to do these jobs," said Bob
Skladany, vice president of the Wellesley, Mass., firm and former head of human
resources for L.L. Bean Inc. "I think we're seeing the first wave of a fairly
substantial shift."
jonathan.peterson
@latimes.com