What’s Next for Older Workers?
Counsellors and employers alike are facing unique challenges as work patterns becoming increasingly non-traditional
By Adele Robertson
Baby boomers are generally defined as those people born between 1946 and 1964. Boomers have just about reinvented most life stages, succeeding in breaking down many social and cultural boundaries. They have challenged both the concepts and behaviours of youth norms, sexual freedoms, marriage and, how to parent. The process of “aging,” for this cohort, and all that surrounds the inevitable march of time, is not going to resemble anything experienced by their parents. It is not surprising that the boomers’ approach to third life transition and the end of work, can represent a challenge to career counsellors. The heretofore normative notion of “retirement” does not play well with many of this generation.
We are reminded by the classic “Sound of Music” song: “How are we going to solve the problem of Maria?” How are Canadian businesses ─ small, medium and large ─ going to solve the problems of our Marios and Marias who are seeking solid advice, and specific guidance on the issue of “retirement.” Or, as York University’s Dr Suzanne Cook calls it: “Redirection.”
A growing senior population willing to continue to work
According to Boston College Sloan Center of Aging and Work, seven in 10 American workers plan to continue to work past the age of 65 [1]. Jean-Marc MacKenzie, Senior Vice President of Canada’s Morneau Shepell Human Resource Consulting Company, reports: “We are finding more and more of our clients have very diverse workplace demographics. For instance, one of our major national clients has more individuals over the age of 75 currently employed with them than under the age of 25. The emerging and flexible work demands seem to be more attractive for older workers and it may not provide as many traditional full-time opportunities for younger workers.”
There are as many mature employee considerations as there are varieties of personalities within that demographic age, never mind their levels of career experience. According to Chris Farrell’s book, Unretirement, even those individuals who are considering packing in their jobs are closer to the age of 70 as opposed to the traditional 65.
There are many reasons why even a 70-year-old may dread leaving their workplace. With this in mind, it might be useful to revisit and reaffirm why “work” is so critical. Most individuals identify themselves by their work. Their self-image is inextricably tied in to their job. Their identity is often indistinguishable from their job description. Experts inform us that this identity and sense of self-worth emanates from both the work content and, the work environment. When the job has evaporated from one’s life, many individuals express the feeling of being useless. Author Victor Frankel writes that “being useless is equated with having a meaningless life.” Over decades, work defined everything from a person’s status, to gender, even in some cultures, morality. Author James Livingston’s book No More Work, Why Full Employment is a Bad Idea submits that when work disappears we feel less secure in our personal definition of ourselves.
An extended life expectancy and financial reality
Beyond the emotional need and understanding of why we work, there is the other reality and that is the financial. We all need an income. A great percentage of Canadians will not enjoy an employer-covered pension in the next decade. Since life expectancy now is approximately 82 to 85, the idea of having no pay cheque for several decades is untenable. It is certain that many individuals, thanks to legislation, who are no longer forced to retire at age 65, will hang on to their jobs as they require both the money and the psychic income. They do not wish to depart from the work environment, the routine, the collegiality and, perhaps most importantly, their sense of purpose.
MacKenzie of Morneau Shepell notes that “most employee benefit designs have been around since 1960 and are geared towards younger workers with young families. Obviously, the time is right for employers to challenge their thinking of their relationship with employees and how they will support them in and out of the workplace.” The question of benefit packages and compensation, and changes in pension plans have caught the attention of Canada’s Finance Minister who recently suggested that Ottawa might encourage seniors to stay in the workforce and perhaps businesses can consider offering incentives to those seniors who delay retirement. While older workers are looking at many options, employers as well as governments are seeking practical solutions.
If the new mantra, for many workers sounds more like “unretirement,” what are some possible solutions and ideas on how to deal with the mature worker who wants and needs to continue in the workforce?
The President of the Milken Institute, Paul H. Irving, suggests that we stop focusing on problems and perceived weaknesses with workers of advancing ages. Younger workers may “learn faster but older staffers have a lifetime of experience and wisdom; they know more.”
Ageism: a barrier for senior workers
Visionary organizations will also begin to recognize the facts surrounding ageism. In 2016, the US Economic Research bureau found “robust” evidence that age discrimination starts even earlier for women (at the amazing age of 32) and, rarely relents.
Ageist attitudes may often challenge an individual’s ability and willingness to continue to work. These attitudes are non-hierarchical in that the more mature worker can be considered a liability by his manager as well as by his peers. Individuals need to be judged and valued by their competence and production, not by their physical age. Businesses who understand the value of older workers will set the tone with progressive employment practises as well as encouraging the more mature workers to act as mentors for their younger colleagues.
The knowledge drain does not have to be inevitable; there can be reverse mentoring which allows for the mature worker to absorb new technologies and assistance from the millennials who follow their careers. An article by Sarah Franklin published in The Globe and Mail in January 2017 [2] reported that by 2019 there will be almost 200,000 jobs in IT and communications in Canada left unfilled due to a lack of people with the necessary skills. Why not consider retraining older workers to fill some of those jobs. Retraining would be an investment, but with an ever-increasing demand, there is absolutely no reason why senior workers cannot fill some of this void. Many senior workers would be keen for upgrading their jobs and learning technologies. This is another scenario where multigenerational interaction can be integrated – a win-win situation for all.
AGEWORKS™, a Canadian organization whose vision is to make ageism as intolerable as racism or sexism, has surveyed global research which dispels myths about mature workers. Older workers do not have diminished production or inconsistent performances nor do they cost more in wages, hours or benefits; the return on investment for the senior worker remains healthy. Many studies demonstrate the wealth of benefits which accrue when a functioning multigenerational workforce is encouraged [3]. Often employee relations improve, in addition to having less turnover, lower absenteeism and increased productivity. It is encouraging that MacKenzie finds that “more employers are focusing on attracting and retaining ‘older’ workers with a flexible approach to scheduling, providing attractive non-traditional benefits, and creating a culture that places a premium value on the diversity of the workplace”.
Advising on alternative options for retirement
Of course, there are various issues that are inherent in dealing with an aging workforce. For example, the increasing remote and office-less workplace environment may be a jolt to many older jobholders. It behooves human resource and other managers to provide a coherent rationale and context for these dramatic workplace adjustments. The results may be that an increasing number of mature workers will welcome the flexibility of working from home more frequently. These adjustments will also allow for the important dress rehearsal for the employee as to what their life resembles when they are not expected at an office location on a daily basis. Flexibility on the part of the employer will encourage more thoughtful and realistic pre-retirement conversations which may result in earlier retirement or, job rotation, or a variety of solutions which mesh with the nature and form of the particular business.
If leave-taking or retirement seems inevitable and/or desirable for staff, how best can career professionals advise these senior workers? What are some ideas which will instigate policy decisions and solutions that will be adaptable both to an efficient business operation and, relevant to their valued, often long-term, staffer?
Early discussions, preferably up to five years before an employee is expected to retire is a first step. Counselling on what to anticipate after the full-time wage work is completed is critical. Retirement is not an event; it is long known as a process with several stages. Exploring a menu of work/life options can bring significant returns. After all, the recruitment and retention of staff is a major investment on the part of any business; why not consider the counselling of the mature worker an integral part of the program. There exists today a dazzling potpourri of ideas about approaching retirement. Some examples include staged retirement, providing flexibility for the worker to dip a toe in the water to experience what life might resemble when they are not at work full-time. Continued training and learning should continue despite the age of a worker. AT&T in the US, understanding that those age 50 plus are not always as adept in new technology, provides payments of up to $30,000 over time for staff who take online courses. They provide as an incentive, that no worker, of any age can anticipate promotion without taking advantage of new training opportunities.Another innovation comes from San Francisco-based Encore.org. This new program is called the “Fellowship Year.” Visionary companies are helping their older workers by matching them to jobs in not-for-profits. These retirement-age employees are slowly eased out of their career jobs and transitioned into community service, providing the individuals with purpose and satisfaction, and the knowledge that they are making an impact on society. This is often an organic, natural evolution of a Corporate Social Responsibility program, already embedded in most business models.
Retirement coaches are becoming more of the norm. Personalized coaching workshops such as THE V GENERATION (“V” for value, vision and volunteer) was inspired by the understanding that individuals will stay healthier, both cognitively and physically, when they envision and plan their future beyond full-time work, and that, cost-benefit reductions will accrue to the enlightened employer who provides staff with training on how to better “retire,” finding a work/life balance which can include a number of options.
Prioritizing senior workers’ career management to unlock their potential
Most individuals of a certain age desire that basketful of activities which will provide them with a balanced life. Human capital will continue to provide an enormous boost and abundant advantage to social problems in Canada. Community service or volunteerism offers the opportunity to translate wisdom, experience and ideas to the charitable sector. Billions of dollars of labour, and a wealth of skills can pour forth from our boomer population, but the not-for-profits have a responsibility to ensure that the boomer volunteers are placed in jobs that suit them, not simply one the charity needs to fill. Businesses need to prioritize the counselling of senior workers to ensure their workforce is better equipped for life once they disengage from the job. Coaches, human resource professionals and career management staff can encourage career management by identifying the training tools and resources in a timely fashion, not just prior to the employee heading out the door.
Unlocking the potential of this boomer generation while a challenge, also represents a real opportunity. And for those organizations who are undergoing restructuring and the inevitable layoffs, investments in a workshop for ongoing career management can often be a gift for the employee which will ease these difficult transition periods.
Boomers have re-invented lifestyles and turned around cultural mores. Now they are bringing energy and fresh ideas about life’s third stage to the fore with their employers and, with society as a whole. This is a remarkable turnabout from previous years. Many businesses will wish to resist these demands and hearken back to the good old days when pretty much every one was content to retire at age 65. Indeed, it is quite possible that in the near future the word “retire” will be retired.
AUTHOR BIO
Adele Robertson is the CEO and Founder of THE V GENERATION, a personalized coaching workshop designed to help organizations provide their employees with self knowledge and tools to embark on new pathways as they transition through work and to help them to experience a successful aging cycle.
References
[1] 17th Annual Transamerica Retirement Survey: Influences of Generation on Retirement Readiness, December 2016, p. 40 http://www.transamericacenter.org/docs/default-source/retirement-survey-of-workers/tcrs2016_sr_retirement_survey_of_workers_generation.pdf
[2] How to successfully close the skills gap: http://www.theglobeandmail.com/report-on-business/careers/leadership-lab/how-to-successfully-close-the-skills-gap/article33213567/
[3] Met Life Mature Market Institute: “ Generations in the Workplace Engaging the Best Talent of All Ages” USA. & KPMG, UK: “The Silver Lining; How Forward Thinking Companies Benefit from the Ageing Workforce).