Employers Surveyed in Florida are Concerned About Potential Worker Shortages

By: Source: AARP.org Date Posted: 2007-10-29 17:42:00-05:00

AARP continues to meet the needs of workers 50+. This includes recognizing employers who routinely recruit and retain older workers; conducting surveys to learn what older workers like from employers and using studies from companies such as Towers Perrin that explain the advantages of having older workers.

During the months of June, July and August of 2007, AARP Florida fielded two online surveys of employers in Florida. One survey was sent to employers only in Manatee and Sarasota Counties; the second survey was sent to employers across the entire state of Florida. In both surveys, email addresses of employers were compiled, and respondents received an email with a link to the survey and two follow-up emails urging them to take the survey. Approximately 2,000 emails were sent to employers in Manatee and Sarasota counties, of which 235 employers responded. Approximately 2,000 emails were sent to employers across Florida, and 108 employers responded.

AARP self selected this sample for participation, so no estimates of sampling error can be calculated, nor can these results be generalized to all employers in Manatee and Sarasota Counties or across Florida.

Results from the statewide AARP survey concluded:

Most Florida Employers in the Survey Predict a Potential Shortage of Qualified Workers
Over seven in10 employers (74 percent) believe that it is at least somewhat likely that their company or organization will face a shortage of qualified workers in the next five years. Nearly four in ten employers (38%) estimate that in the next five years, ten percent or more of their current workforce is likely to retire.

Retention of Institutional Knowledge and Skills is Important
Eight in 10 employers (83%) acknowledge there is a knowledge loss that occurs when an employee retires or leaves a company or organization. "Management" is the primary skill set that will be lacking for businesses as workers retire.

Over six in 10 employers (64%) consider it extremely or very important for their company or organization to retain the institutional knowledge that's lost when an employee retires or leaves. However, only about three in ten (28%) have a formal process in place that enables their retired or former employees to share their knowledge.

Employers Offer Work Options and Accommodations for Older Employees
Over half of responding employers (56%) provide training to older workers to upgrade their skills and knowledge. Over four in ten also hire retired employees as consultants or temporary employees for project or contract work (44%) and provide older workers with part-time work without benefits (42%). Exactly four in ten allow employees to ease into retirement by reducing their work schedules. Nearly four in ten (38%) provide opportunities for employees to transfer to jobs with reduced pay and responsibilities.

Also employers allow employees the option of:

  • Working part-time (75 percent)
  • Performing project or contract work (58 percent)
  • Telecommuting (46 percent)
  • Sharing a job with another employee (29 percent)

 

The Majority of Employers Offer Employees a Defined Contribution Plan
More than six in10 employers (64%) offer a defined contribution plan, such as a 401(k) or 403(b), which allow them to set aside tax-deferred income for retirement. However, most (58 percent) do not automatically enroll their employees into such plan.

About three in ten employers (28 percent) offer a defined benefit plan and about one in seven employers (15 percent) offers retiree health insurance and long-term care insurance (15 percent.)

1.) Six in ten business leaders who responded to the AARP online survey believe it important or very important to retain business knowledge when experienced staff retire.

2.) Seven out of 10 respondents also say their businesses might suffer a shortage of experienced workers in the next five years.

3.) But far fewer are actually doing anything about keeping the knowledge in their business as Florida and the nation face an unprecedented wave of retirement. Only about half are actually taking the steps AARP recommends to retain or recruit experienced workers (e.g., flexible work arrangements, phased retirement, etc.).

4.) Eight out of 10 respondents say that their business loses valuable knowledge when experienced staff retire. The most commonly cited loss is management experience.

In short, while Florida employers who were surveyed recognize that they could face big impacts from the Boomer retirement wave, they are not yet taking all the steps they should to retain critical information in their businesses. Still, about half of employers are doing something.

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