POINT OF VIEW
The Untapped Potential of the Mature Workforcewww.spherion.com/emergingworkforce
Making The Workplace Work BetterSM
All statistical data referenced in this Study was commissioned by Spherion and gathered by Harris Interactive, Inc. © 2002-2003 Spherion Pacific Enterprises LLC item# S96597
he United States is aging, and theworkforce is aging with it. The 55-and-older workforce will grow at a 3.9% annualrate during the current decade, 3.5 timesfaster than the total labor force, for whichthe U.S. Department of Labor projectsonly 1.1% annual growth. In the period from 2010 to 2020, labor forcegrowth is projected to dip even further tojust 0.36%. By 2008, the median age ofthe workforce will be 40, according to theU.S. Census Bureau. That compares to amedian age of 35 in 2000. By 2010 thenumber of workers age 55 and older willhave grown by almost 32%, while workersbetween the ages of 35 and 44 will haveshrunk by more than 10%.
The U.S. Bureau of Labor Statistics predicts that 50% of the U.S. populationwill be over 50 years of age by 2006. As the 76 million Baby Boomers in America–people today aged 38 to 56–move closer and closer to what they mayhave envisioned as retirement age, manyare rethinking their futures. Better physicalhealth is altering long-held beliefs aboutthe right time to retire. As a result, a moreplentiful supply of mature workers willbecome an increasingly important sectorof the talent pool.
WORKERS EXPECT TO WORK LONGERThe Spherion® 2003 Emerging Workforce®
Study found that the workforce is preparingto work longer. In this comprehensive portrait of changes in the American work-force, 33% of workers say they expect toretire between the ages of 55 and 64,while 40% say they expect to retirebetween ages 65 and 69. Roughly one-fifth plans to work past the age of 70.
As life expectancy and financial securityconcerns increase, workers are choosing towork longer in order to support longerlives and greater financial needs. Studiesby both Spherion® and AARP found thatnow almost two thirds of the workforceplan to retire at or beyond the traditionalretirement age of 65.
RETIRING OLDERAt what age do you expect to retire?
70 or older: 19%
65-69: 40%
55-64: 33%
50-54: 4%
49 or younger: 2%
Source: Spherion® Emerging Workforce® Study, 2003
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EMPLOYERS NEEDMATURE WORKERSThe trend to work past traditional retire-ment age bodes well for employers whoface a labor crunch that promises to be aschallenging, if not more so, than laborshortages of the late 1990s when employ-ment levels hit all-time highs. Over thecurrent decade, the Bureau of LaborStatistics predicts that the number ofopen jobs will increase by 15% while thelabor force will grow by only 12%. Theresulting 3% gap is only one indicatoramong many pointing toward a pendingtalent crunch. The wave of voluntary sep-arations and early retirement options thatthinned the ranks of tenured and fre-quently higher-paid “50-somethings” hasgiven way to a time when employers needto rethink how they engage, develop andkeep their mature workers.
The workforce exploded in the years fol-lowing 1980, due in large part to theincreasing numbers of women entering thejob market plus an influx of Baby Boomersof both genders. With little hope forgrowth from the female sector, of which80% now work outside of the home, a por-tion of Baby Boomers nearing retirementand fewer younger people entering theworkforce, employers will be left with a sig-nificantly smaller pool of talent from whichto draw. Subsequently, employers willbecome more reliant upon mature workers.
“Too many organizations confuse ‘newblood’ with ‘young blood,’ ” notes RobertMorgan, president of Spherion® Employ-ment Solutions. “That kind of mentalityneeds to change so that organizationscan take full advantage of today’s highlyskilled, motivated mature workforce.”
The
Mature Workforce
Untapped of the
While the new millennium has already proven taxing for bothemployers and those who wish to be employed, another workforce challenge�far more daunting than an uncertaineconomy�is beginning to take effect. What is it? Age. Themedian age of the workforce is steadily rising while the rate of new entrants to the workforce continues to decline.
As fewer and fewer new workers enter the labor pool, employers will become increasingly dependent on the matureworkforce_the employed population age fifty or older, many ofwhom may be nearing or surpassing retirement age. Employerswho have not focused on this mature working population willface serious challenges in attracting skilled workers in thefuture. Savvy employers realize they must now reconsiderrecruitment, development and retention strategies in order tomaximize the talents, loyalty and stability of mature workers.
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EMERGING WORKFORCE® STUDY
Potential
A Willing & Loyal Talent Resource
WHAT DOES THE MATURE WORKFORCE OFFER AN ORGANIZATION?With a shrinking talent pool, employersnow have pressing reasons to focus on themany ways in which mature workers caninvigorate and improve business.
Lower Turnover – Retention tends to be significantly higher among matureworkers, while younger workers are morelikely to change jobs to explore newcareer directions. The 2003 EmergingWorkforce Study reveals that 55% ofmature workers, 50 or older, are likely tostay with an employer for at least the nextfive years, as compared to 43% of workers49 or younger.
Loyalty & Stability in the Workplace –When it comes to loyalty to colleagues,manager and employer, mature workers aremore likely to rate themselves as “veryloyal” than younger workers.
Mature workers can offer stability in an erawhere younger employees have grown comfortable with job-hopping. Having hadthe time to “test the waters” and settleinto a profession that suits them, matureworkers are more likely to be doing whatthey want to do and working where theywant to work. This level of reliability andcommitment is especially crucial in periodsof economic rebound as more employmentopportunities become available.
Experience – Mature workers bringdecades of work experience and industryexpertise to their jobs and to theiremployers. Their skills can be called uponin teaching and mentoring younger workers, analyzing and improving pro-cesses and building a strong foundationof company knowledge.
Leadership – In today’s unpredictable marketplace, leadership skills are in highdemand. Mature workers often bring confidence and leadership that can sustaina business through hard times and push itahead in times of opportunity.
LEVERAGING &ACCOMMODATINGTHE MATURE WORKFORCEIn order to maximize the capabilities ofmature workers while meeting their uniqueworkplace needs, employers will need toadjust their mindsets as well as theiremployment practices–from recruitmentand hiring to management, developmentand retention.
RECRUITMENT & HIRINGTo attract the most experienced workers,employers must first cast a wider net toensure they are reaching mature candidates. Job boards and classifieds maynot be as effective as professional associations, professional recruiting firmsand community organizations. There alsois a growing pipeline of experienced
MANAGEMENT &DEVELOPMENTKey to success in managing mature workersis flexibility. While not all mature workersare speeding toward retirement, manyhave achieved their core career goals andare looking for new opportunities to contribute or a way to achieve better balance in their lives.
Here are ways in which employers can help:
Training & Development – Ensure thatmature workers are included in trainingopportunities. Mature workers are just asinterested in learning, gaining new skills andincreasing their contribution as youngerworkers. If employers don’t see theirmature workers as high-potential contribu-tors, those seasoned employees will notice,and the results will be evident in their jobsatisfaction, productivity and loyalty.
Mentoring Up & Down – Institute programs that encourage generational hand-offs of knowledge, training andideas. For example, mentoring “down”(older to younger) is often effective when experience is the driver. Mentoring “up”(younger to older) could be useful when new technologies are the driver.Employers should accommodate differenttypes of workgroup structures, includingthose where subordinates are significantlyolder than managers.
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EMERGING WORKFORCE® STUDY
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EMERGING WORKFORCE® STUDY
Found a new job in . . .
Same industry 10% 90%
Different Industry 6% 94%
Found a new job performing . . .
Same function 9% 91%
Different function 12% 88%
Source: Spherion® Emerging Workforce® Study, 2003
managers taking on project work, flexibleor interim assignments as a bridge toretirement. These workers can offer vastexperience and proven leadership skillswhile simultaneously providing employersthe flexibility to bring in the right managerat the right time.
Lateral Growth – Change and an oppor-tunity for career growth is of great value tothe majority of employees. Lateral movesor alternate career paths that offer newchallenges can be just as rewarding asadvancement. For example, mature workersoften find it extremely rewarding to applytheir institutional knowledge and experience to completely new functions.
Flexible Scheduling/ReducedHours/Telecommuting – For manymature workers, flexibility in schedulingone’s hours, working less or telecommutingare often viewed as well-deserved rewardsfor years of service. By providing matureworkers with the flexibility to cut back timein the office or work from home, employerscan help these contributors balance theirwork/life priorities or gradually transitionto retirement without losing their valuable experience.
RETENTIONTo retain mature workers, a company mustfirst and foremost promote an environmentthat is supportive. By recruiting and managingmature workers with progressive approachessuch as flexible work arrangements andcontinued training and mentoring opportu-nities, businesses are taking the first crucialsteps in successfully retaining mature
workers. Additional ways that employerscan retain their mature talent include:
Phased Retirement – Rather than losinga large number of capable, mature workersat a set age, phased retirement programsoffer an innovative solution to retainingtalent, while reducing employment costsand gradually shifting workloads. Forexample, mature workers could opt toreduce to a three- or four-day work week or a more substantially reduced workschedule. These options offer matureworkers a means to continue working and contributing, while providing theorganization with a cost-effective way toretain intellectual capital.
Alumni Network – Businesses can utilizethe skills of retired workers by maintainingcontact through an active alumni network.By calling upon former workers to serve asad hoc consultants, called in as needed toparticipate in special projects, employersextend their talent pool and continue tobenefit from the knowledge, experienceand familiarity of their former employees.
Pay for Expertise & Experience – Ensurethat mature workers are paid fairly for theexpertise they bring and contributionsthey make.
BUILD AN “AGELESS” WORKFORCEMost importantly, employers should becareful to treat mature workers as a valuableand productive segment of their work-force. Those employers who ignore thepotential of an “ageless” workforce play arisky game, banking on a younger but significantly smaller pool of workers, whichmay encourage talented, mature employ-ees to take their knowledge and energy to eager competitors.
Colleagues 47% 38%
Manager 49% 40%
Employer 45% 34%
Spherion® Emerging Workforce® Study, 2003
MatureWorkers
OtherWorkersVery Loyal to...
CLOSER LOOK AT RECENT JOB HOPPERS% of those who have changed jobs in the past 6 months that are:
50 and older 49 and younger
QUESTIONS TOCONSIDER: • What are you doing to attract mature
workers today?
• How do you structure roles to leverage the experience of mature workers, from strategic to tactical projects?
• Does your organization accommodate a broad range of employment options, such as flexible assignments, project-specific work and part-time positions?
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EMERGING WORKFORCE® STUDY
The 2003 Spherion® Emerging Workforce® Study was conducted
by Harris Interactive, a world-renowned market research firm, on behalf
of Spherion Corporation. A statistically valid sample of 3,278 full-time
working adults in the U.S. (18 years of age or older and employed 30 or
more hours a week) was surveyed by telephone and online between
September 16 and October 7, 2002.
The study, which updates and expands on previous workforce research
published by Spherion (formerly Interim Services) in 1997 and 1999, is the
third in a series of surveys designed to provide a comprehensive portrait
of changes in the American workforce in the context of on-going social
and economic events. The determination of whether a respondent was
an emergent, migrating, or traditional employee was made on the basis of
answers to a battery of specific questions.
ABOUTTHIS SURVEY
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EMERGING WORKFORCE® STUDY
