Workforce Planning: Aging and
Employment
Module 1: Background
Barbara McIntosh, Ph.D., SPHR 2010
Module 1: Learning Objectives
At the end of this module students will be
able to:
• Appreciate the characteristics of normal,
successful aging.
• Understand the legal and social policy
backdrop for the aging U.S. labor force.
• Discuss the labor force dynamics facing older
workers and employers.
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Learning Objectives Continued
•Recognize changing perceptions about aging
and contribution in society.
•Identify the issues confronting employers regarding
older workers.
•Understand the effect of age on work role.
•Outline necessary changes in HR policies and
practices with respect to aging workers.
•Explain the economic incentives and disincentives
to work confronting aging Americans.
•Analyze employment options and the applicability
of international examples.
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Suggested Texts
• Leibold, M., & Voelpel, S. (2006). Managing the
Aging Workforce. Germany: Wiley-VCH.
• Rothwell, W.J., Sterns, H.L., Spokus, D.&
Reaser, J. (2008). Working Longer. New York:
AMACOM.
• Hedge, J., Borman, W., & Lammlein, S. (2006).
The Aging Workforce. Washington DC: The
American Psychological Association.
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Essential Resources:
Professional Associations
Society for Human Resource Management
(SHRM), www.shrm.org.
AARP, www.aarp.org.
Gerontological Society of America,
www.geron.org.
National Council on the Aging (MaturityWorks
Alliance),www.ncoa.org.
American Society on Aging (Business Forum
on Aging), www.asaging.org.
Association for Gerontology in Higher
Education (AGHE), www.aghe.org.
Chamber of Commerce, Institute for a
Competitive Workforce, www.uschamber.com.
Urban Institute, www.urban.org.
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The Current Pulse
Government sources
U.S. Department of Labor: The Women’s
Bureau and the Bureau of Labor Statistics
Governmental Accountability Office:
Administration on Aging, etc.
Clipping service
• Daily clipping service of where aging issues
appear in the worldwide press: Current
Awareness in Aging Research E-Clippings
(fiss@ssc.wisc.edu).
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Modules Overview
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Background.
Labor markets.
Aging employee perspective.
Employer perspective.
Managing productivity.
Careers and aging workers.
Economic considerations; incentives and
disincentives to work.
• International perspectives.
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Module 1: Background
• Introduction:
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Why are we concerned?
Definitions.
Forces extending work life.
Forces restraining work/life extensions.
Overview of demographics/context.
Normal aging and health.
Stereotypes.
Age discrimination issues.
Legislative proposals.
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Aging and Employment: Why Is HR
Concerned?
• The economic downturn means people are working
longer and delaying retirement.
• Shifting demographics.
• Predicted labor shortages (even with the economic
downturn; industry-specific).
• Brain drain and organizational learning.
• Improvements in life expectancy mean more
workers are productive in later life.
• Pensions and health care financing.
• Intergenerational issues and HR policies and
practices.
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Definitions
• What is old?
> Perception.
> Legal definition.
> Behavior.
> Cohorts.
• What is work?
> Productive activity.
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Forces That Extend Work Life
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Economic necessity (older employee).
Psycho-social needs (older employee).
Better jobs (knowledge workers).
Flexibility (hours) availability.
Increased work/life balance emphasis.
HR policies (employer).
> Labor shortages, particularly in the health care
industry.
> No mandatory retirement age.
• Government policy.
> Social Security viability.
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More Americans Are Working Longer
• Between 2000 and 2008, the number of workers
aged:
 65 to 69 increased 25 percent.
 70 to 74 increased 32 percent.
 75 to 79 increased 38 percent.
 80 and older increased 67 percent (BLS, 2009).
• Living longer and public expectations about
retirement are in transition (Pew Research Center).
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Men’s Participation in the Labor Force
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Women’s Participation in the Labor Force
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Forces Restraining Extension of Work Life
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High unemployment.
Slow-growth economy.
Changing skill mix in demand.
Youth culture.
Hiring and retention practices.
Increased labor costs.
Labor union policy (in some cases).
Intergenerational conflict.
Negative stereotypes about older workers.
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Demographics
• In 2000, there were 35 million Americans aged 65
and older in the U.S., representing 1 in 8
Americans.
• By 2030, 1 in 5 (20 percent) will be 65 and older.
• The increase is due to the baby boom; 76 million
Americans were born between 1946 and 1964.
• The “old-old” (85 and older) is the fastest growing
cohort.
• Decreasing fertility: The “baby bust.”
• Gender gap: Women outlive men. At age 85, there
are 41 men for every 100 women.
• Diversity: In 2000, 84 percent were white. It is
forecast that this will drop to 64 percent by 2050.
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Number of Older Americans
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Number of Older Americans
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Educational Attainment
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Poverty
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Life Expectancy
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Projected Demographic Shift
Ratio of population age 20 to 64 compared to age 65 and
older. (Those working to those traditionally not working.)
Source: Congressional Budget Office Based on Social Security Administration Data
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Normal Aging: Health
• Physical:
> Strength.
> Reaction time.
> Senses.
• Mental.
• Psycho-social.
• Self-perceptions (social-cognition).
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Respondent-Assessed Health
Status
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Future Expectations on Health
• Behavioral changes, e.g., smoking cessation.
• Self-perception changing re: physical and mental
conditions.
• Continuous improvement in availability of
preventative care.
• Changes in societal/market/organizational
responses to health limitations.
• Medical advances, e.g., joint replacement and
continued activity.
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Factors Influencing Health
• Economic security, including the opportunity
to work.
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Access to preventative care.
Education.
Family relations (care giving, support, stress).
Social cognition (perceived role in society).
Community support.
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Life Expectancy of 65-Year-Olds Over
Time
Source: Congressional Budget Office based on Social Security Administration
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Commonly Held Stereotypes
“To be old is to be sick”
~ 50% of American believe health is a “very
serious problem” for individuals over age 65
Reality?
[See: Palmore, E. (1999). Ageism. Springer Publishing]
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Commonly Held Stereotypes (continued)
• Older people have more accidents.
Reality?
• Mental abilities decline with age.
Reality?
• You can’t teach an old dog new tricks.
Reality?
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Commonly Held Stereotypes (continued)
Older workers usually cannot work as
effectively as younger workers (Palmore,
1998).
Reality?
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Age Discrimination in Employment
• Increasing prevalence:
> 24,582 age discrimination cases filed with
EEOC in 2008 (a 30 percent increase over
2007). This represents 26 percent of all
discrimination cases.
• In 2004, the cost of negotiated settlements in
federal age discrimination complaints totaled
$69 million (AARP, 2006).
• In 2002, 67 percent of surveyed workers 45 to
74 (n=1500) reported that they believed there
was age discrimination in the workplace
(AARP, 2003). This dropped to 60 percent in
2007 (AARP, 2008).
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Types of Employment Discrimination
An AARP survey showed that:
> Nine percent of respondents reported being
passed up for promotion or a chance to get
ahead because of age.
> Fifteen percent of respondents reported not
getting hired for a job applied for because of
age.
> Six percent of respondents reported being
laid off, fired or forced out of a job because of
age.
> Five percent of respondents reported being
passed up for a raise because of age.
Source: AARP, 2002
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Legal Sources
• Bill of Rights/Constitution.
• Civil Rights Act 1964.
• Age Discrimination in Employment Act (ADEA)
1967.
• Future:
> Americans with Disabilities Act (1990).
> Case law.
> New legislation.
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Age Discrimination in Employment Act
• Right to gainful employment has long been
recognized. Originally passed in 1967 with a
mandatory retirement age 70, it was amended
in 1987 to eliminate mandatory retirement.
• Use of an individual’s age as a criterion for
employment is generally forbidden; only where
age is a bona fide occupation qualification
(BFOQ) may it be used as a factor in
employment decisions.
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ADEA Protection
• Covers workers 40 years of age and older.
• Applies to organizations with 20 or more
employees.
• Applies to organizations engaged in interstate
commerce.
• Does not cover bona fide executive or high
policy makers (attained the age of 65 and held
the position for two years) if entitled to a
retirement benefit of at least $44,000.
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Unlawful Employer Practices
• To fail or refuse to hire or discharge any
individual or otherwise discriminate against
any individual with respect to his or her
compensation, terms, conditions or privileges
of employment because of the individual’s
age;
• To limit, segregate or classify employees in
any way which would deprive or tend to
deprive any individual of employment
opportunities or otherwise adversely affect his
or her status as an employee because of the
individual’s age; or
• To reduce the age rate of any employee in
order to comply with this chapter.
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Exceptions
• Age as a bona fide occupational
qualification.
• Other reasonable factors.
• Laws of a foreign workplace.
• Seniority system.
• Employee benefits system.
• Discipline or discharge for good cause.
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Court Interpretations
• Applicants must be judged on non-age
related issues:
Courtney v. Biosound, Inc., 42 F3rd 414 (7th
Cir. 1994).
• Promotions must be based on merit:
Barber v. CSX Distribution Services, 68 F.
3d694 (3rd Cir. 1995).
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Court Interpretations (continued)
• It is illegal to terminate an employee due to
age considerations:
Benjamin v. United Merchants and
Manufacturers, Inc., 873 F.2d 41(2nd Cir.
1989).
• It is illegal, with exceptions under ADEA, to
force an employee to retire:
Verbracken v. Westinghouse Electric Corp.,
881 F.2d 1041 (11th Cir.1989).
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Labor Market Realities
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You are over qualified.
This job would not be a good fit for you.
The job has been filled.
We will keep you posted.
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Educate All Recruiters
• Recruiters and interviewing managers should
be sensitized to conscious and unconscious
stereotypes.
• Focus should be on job description and
required job performance.
• Interviewing teams should include at least one
mature worker.
• Screening materials and tests should be
printed in 12-pt or 14-pt type.
• Screening materials and tests should allow for
variation in completion time.
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Tips for the Older Applicant Facing
Discrimination
• Options: Walk away or educate (flight or fight).
• Prepare :
> Network: Contacts could be respected
community members, business associates
and former bosses. Who do you know?
> Do your homework: Be articulate about
financial position, growth profile and
development opportunities. What do you
know?
• Present with a smile.
• Other??
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The Bottom Line
• The economy is pushing older workers to
remain in the labor force.
• American workers are living longer, healthier
lives.
• Expectations about work in later life are
changing.
• Stereotypes about older workers still exist.
• The legal environment and the increasing
numbers of older workers mean that
discrimination must be actively addressed.
• The business environment needs to change in
response to the aging workforce.
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