Business Case for Workers Age 50+: Planning for Tomorrow's Talent Needs in Today's Competitive Environment: Key Findings

By: Source: AARP.org Date Posted: 2006-03-14 11:55:32.186506-05:00

Many U.S. companies face—and some are already experiencing—a potentially significant loss of experienced talent in key roles as baby boomers approach the traditional retirement age.

In light of the projected shortages of younger workers, employers will need to turn to mature, experienced workers in order to gain and maintain a competitive edge.

This study, conducted for AARP by Towers Perrin, demonstrates why employers need to hang onto their valuable, experienced age 50+ employees, and what it takes to make them want to stay on board.

Key Findings

  • Replacing experienced workers can cost at least 50% of an individual's annual salary in turnover-related expenses, and the cost is even higher in jobs requiring specialized skills.
  • The benefits of maintaining a stable workforce and avoiding turnover costs can exceed the incremental compensation and benefit cost for older workers.
  • Older workers are more motivated to exceed expectations on the job than their younger counterparts.
  • 69% of age 45-74 individuals, who are either working or looking for work, say they plan to work in some capacity during so-called retirement.
  • 68% of age 50-70 not-yet-retired workers plan to work in some capacity into their retirement years — or not retire at all.
  • Some companies may be able to escape the talent crunch entirely if today's age 50+ workers continue working longer than previous generations for both financial and personal reasons.
  • Companies may find themselves competing for the services of older workers, and will need to offer the kind of rewards that 50+ employees want and expect.
  • Health care coverage and competitive retirement benefits are the most frequently-cited financial incentives in surveys of age 50+ workers.
  • To compete in the retention race, employers need to make flexible working schedules, telecommuting options, part-time jobs, opportunities for training and new experiences, phased retirement, and other workplace innovations part of their job offerings.
  • Intangible incentives include work-life balance, respect for employees' skills and recognition of individual contributions.

More Information

Background

Information for this study by Towers Perrin for AARP was drawn from a variety of sources, including several Towers Perrin databases, recent AARP and Towers Perrin surveys, as well as other available research and previously published studies on this issue. To gain up-to-date insights, in-depth telephone interviews were conducted with senior human resource executives in 10 major organizations across the United States.

For additional information, please contact Deborah Russell at (202) 434-2067, S. Kathi Brown at (202) 434-6296, or Sara Rix at (202) 434-2416.

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