Report suggests strategies for managing older workers

A new report from a business research organization suggests that managers may need to adopt new approaches to older workers, but also indicates that a number of management and training tools can optimize the contributions and satisfaction of these employees.

"When companies face baby boomer retirements, they should step back and reevaluate their staffing strategy, both at the aggregate level and on a case-by-case basis, rather than automatically refilling positions," wrote Mary Young, a senior researcher at the Conference Board, who looked at 10 private-sector companies. "By integrating strategic workforce planning with long-term business planning, a company can differentiate potential threats from opportunities."

John Palguta, vice president for policy at the Partnership for Public Service, said many of the report's insights could be valuable for federal agencies, particularly the emphasis on recruiting mature employees and making sure they have opportunities to train, try new fields, and put other work experience to good use.

"You have to look at intake across the board, including at the senior level," Palguta said. "Traditionally, 95 percent of senior executive positions are filled internally, and I think that's going to change. I think you're going to see a larger percentage of folks coming from outside, and I think that's healthy."

One of the main challenges the report found was simply finding the right approach to managing older workers.

"Everyone knows the frustrating scenario of the older employee who has opted to 'retire on the job' until he or she qualifies for official retirement," the authors noted. "Managers…may interpret performance issues differently based on the subordinate's age. A younger worker may be seen as disengaged, a condition that might be remedied by coaching or a new assignment. Yet an older employee who exhibits the same shortcomings may be seen as 'retired in place,' a label that suggests a permanent condition rather than something that can be fixed."

The authors argue that managers need to understand that employees can make valuable contributions regardless of their age, and that those contributions can change even after an employee reaches a certain age or level of seniority. They cited the example of Bon Secours Richmond Health System, a nursing services provider that specifically recruits and trains mature workers who want to change careers.

But, the authors caution, "that sort of bred-in-the-bone belief that people over age 65 can still contribute isn't something that other companies can simply copy, like some award-winning best practice or tool-box template."

The report said such attitude adjustments are particularly important in encouraging knowledge management.

"If employers want older employees to serve as stewards," the authors wrote, "fostering the development of younger employees and freely sharing knowledge and experience, they need consistently to demonstrate respect."

There are some tools that other companies and government agencies can adapt to their use. Deere & Co., which produces John Deere tractors, created a job bank and learning management system to allow to search job opportunities, see how well-prepared they are to apply for openings, and link directly to training and development resources. The company found that the suite of tools raised employees' satisfaction with job opportunities by 17 percent to 79 percent, and increased the belief that promotions were linked to job performance by 26 percent, to 89 percent.

Palguta said such a tool would be valuable for federal agencies as they bring in new talent from outside and seek to keep their own employees prepared for future challenges.

"It's a challenge that the public sector needs to address, and hopefully, eventually, they need to succeed at integrating training and recruiting," he said. "If you're looking outside of government for mid-career talent, that needs to come with a very robust training and development program so you're making sure that to the extent possible, you're taking care of the developmental needs of your current employees."

Palguta said that the Partnership's Best Places to Work survey had consistently found that training and development opportunities were critical elements of job satisfaction.

"Not only do you have challenging work, good leadership, but you have a good match between your skills and the mission, and you have the opportunity to continue to update and expand those skills," he said.