| For as long as I can remember, commentators | | | | Safety report that older workers exhibit lower |
| have suggested that all organisations should | | | | turnover, more dedication to the workplace, and |
| consider people their "greatest asset". In the | | | | have more positive work values. Absenteeism is |
| boom years of the late 80s and the 90s, this | | | | less frequent, although it is longer when it does |
| "asset" thinking literally translated to "pay people | | | | happen. |
| more and we will keep them". But today, despite | | | | The answer to the second challenge - making |
| higher salaries and benefits, we find people change | | | | better use of older workers - is already being |
| employers quite regularly. Statistics on change of | | | | met by some organisations. Can we take a lead |
| employer over a working lifetime are hard to | | | | from the following three examples? |
| come by - estimates range between 3 and 7. | | | | In 1989 the UK DIY retailer B&Q opened an |
| The key point however, is that people are now | | | | outlet in Macclesfield. The new store enjoyed low |
| far more willing to change employers than ever | | | | turnover of staff, low levels of absenteeism, high |
| before. | | | | profits and soon established a positive image in |
| Not only do people change jobs more readily, but | | | | the local community. It was also staffed entirely |
| the workforce is aging. Figures in the US suggest | | | | by over 50s. The success of this organisational |
| that the average working age is now 41 up from | | | | experiment pushed the company to develop its |
| 35 in 1980. By 2015, according to the American | | | | over 50s recruitment policy. It now boasts that of |
| Association of Retired Persons, one of every five | | | | a total staff of 37,000, 22 per cent are over 50. |
| employees will be at least 55. In the UK, the | | | | In the public sector, The Chicago Transit |
| combination of declining birth rates and greater | | | | Authority implemented a Phase-In Retirement |
| longevity means that by 2030 the number of | | | | program for retiring employees. This program |
| people aged 50 and over will have reached 46 per | | | | gradually acclimatises mature workers to |
| cent of the total UK population, rising from 33 per | | | | retirement by steadily reducing their work hours |
| cent in 2002. These trends are also evident in | | | | and pay rates, but concurrently gives them their |
| other developed countries such as France, | | | | pensions. Older workers are also encouraged to |
| Germany, Spain and Japan. | | | | become mentors for younger employees. |
| An aging population means more people leaving | | | | The third example comes from Hewlett Packard |
| the workforce for retirement. On the other hand, | | | | which has found a new resource - loyal former |
| the number of older people who work part-time is | | | | employees. HP has an army of former employees |
| also increasing. | | | | who often give their time voluntarily as |
| These trends represent two challenges for | | | | marketers, good will ambassadors and in-store |
| organisations. Firstly, how do we keep our best, | | | | sales people. |
| most experienced and knowledgeable people? And | | | | Enlightened organisations such as these are now |
| secondly, how do we make better use of those | | | | re-employing former workers either full time or |
| who are considering retirement? | | | | part time to take advantage of their expertise |
| The answer to the first question is simple | | | | and in many cases, their desire to stay actively |
| (although implementing it may be more | | | | engaged in the workforce. |
| challenging). Treat people better, engage them | | | | However to take advantage of the aging |
| fully and develop employee loyalty. It is long past | | | | workforce, organisations need to treat their |
| due that organisations realise that treating people | | | | existing employees (both young and old) as more |
| as "their greatest assets", means more than | | | | than merely "assets". Long term loyalty can only |
| traditional financial asset management through pay | | | | be gained through a dedicated approach to |
| and benefits. | | | | ongoing people development. The result is |
| However keeping older people employed and thus | | | | probably best summed up by a former HP |
| reducing staff turnover rates, does provide an | | | | employee John Toppel, who now gives his time |
| immediate financial benefit. Additional financial | | | | freely as an in-store sales consultant. In a recent |
| incentives for organisations to keep older workers | | | | press interview Toppel said, "I feel like I have two |
| engaged, is also given by studies which suggest | | | | marriages; a wonderful marriage at home for 36 |
| older people are better workers. For example, the | | | | years and a wonderful marriage at HP. |
| Canadian Centre for Occupational Health and | | | | |