Workforce Planning: Aging and Employment Module 3: The Employee Perspective Barbara McIntosh, Ph.D.,…

Workforce Planning: Aging and Employment

Module 3: The Employee Perspective

Barbara McIntosh, Ph.D., SPHR 2010

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Module 3: Overview of the Employees’ Perspective

• Why work? • Costs and benefits of continued work.• Alternative choices.• Decision to stay depends on:

> Treatment.> Job satisfaction.> Continued challenge.

• Changing expectations about the work environment: aging worker friendly? 

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Why Work?

• Today, it is all about money and uncertainty:> Portfolio losses.> Shrinking opportunities in the labor market.> Uncertainty about health care costs.> Uncertainty about family financial

responsibilities.> Uncertainty about how far shrinking retirement

savings need to stretch for 10, 20, 30 years.In reality:• We are living longer, healthier lives and are able

to work.

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Why Work? Contribution

According to a 2007 AARP survey of individuals aged 50 and older:

• Work in some capacity: 70%.• Work part time for interest or enjoyment: 29%.• Work part time mainly for the income: 22%.• Started their own business: 11%. • Retired from current job but work full time

doing something else: 6%. • Do not work at all: 29%. • Do not know: 2%.

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Specific Reasons to Work (AARP, 2007)

• Need the money 76%• Enjoy the job/enjoy working 70%• To save for retirement 64%• Need to maintain health insurance coverage 61%• Need to pay for health costs for self and family 56%• It makes me feel useful 52%• Need to support other family members 46%• To qualify for Social Security 42%• To fulfill pension requirements/qualify for pension 41%

Source: www.aarp.org/research/surveys/stats/surveys/public/articles/2007_Staying_Ahead_of_the_Curve.html

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Costs of Continued Work

• Alternative time use (leisure, care giving, etc.).• Foregone opportunities.• Direct costs:

> Pension reduction.> Social Security earnings if younger than full

retirement age.> Commuting.> Clothing.> Payment for services you would perform if you had the

time (house cleaning, yard work, etc.).

• Indirect costs:> Health: Exposure.> Mental health: Stress.

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Benefits of Continued Work

Direct:• Salary/wages.• Benefits (if covered).• Access to company perks (corporate passes,

reduced membership fees, etc.).Indirect:

• Challenge (use it or lose it).• Being productive, feeling useful.• Social connections; networking.• General mental health (Bosse, et. al., 1987; Reitzes,

Mutran & Fernandez, 1996; Gallo, et al., 2000; McIntosh & Danigelis, 2005).

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Choices

• To work or not to work: work, volunteering, family, leisure.

• To work but with alternative hours: full time, part time or part year (seasonal).

• To work in one’s primary occupation or another occupation:

• Variation in primary occupation (transition employment).

• Different occupation/industry: Pursue hobby or passion (bridge employment).

• Location change.

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The Decision to Stay Depends on Individual Treatment

Individual comparison/discrepancy theories

• What I need and what I receive (Maslow’s Need Theory).

• What I value and what I receive (Locke’s Value Theory; Vroom and Lawler’s Expectancy Theory).

• Equitable treatment and the way I am treated (Adam’s Equity Theory).

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The Decision to Stay Depends on Job Satisfaction

• Job satisfaction is directly linked to turnover and the intent to stay.

• Older employees tend to have high levels of job satisfaction (Shen, Pitt-Catsouphes & Smyer, 2007).

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Decision to Stay Depends on Job Satisfaction

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Job Satisfaction Evidence: Methodology for HRS Study

• Wave 1: Health and retirement survey (HRS) panel study (1992).

• Sample of individuals between 51 and 61 years of age.

• 2,506 full-time and part-time workers (2,195 FT; 887 PT).

• Gender (1,308 men; 887 women).• Dependent variable: “How satisfied are you

with your job?”• Statistics: Correlation analysis and OLS

regression analysis.

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Regression Results

ALL FULL-TIME PART-TIMECo-workers Co-workers Co-workers-Stress -Stress Freedom -Odds lose job Fair pay Fair pay-Age discrim. -If lose, retire -If lose, retire -Age discrim. -Odds lose job

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Gender Differences in Satisfaction with Work

MEN WOMEN Co-workers Co-workersFair pay -Stress-Stress -Age discrim.-Odds lose job -Odds lose job-Age discrim. Fair pay-Absence/health issues Work even if they

don’t need the money.

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Results Summary

• Co-worker support is the most important predictor in deciding to remain working, regardless of hours worked or gender.

• Hours of work:> For full-time workers, stress level is the second most

important predictor. Age discrimination is also a predictor.

> For part-time workers, freedom is the second most important predictor. Stress is not a predictor, but concern about losing one’s job is.

• Gender:> Men are more concerned about fair pay and being

absent.> Women are more concerned about age discrimination

and would keep working even if they did not need the money.

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Research Implications

• More attention needs to be given to co-worker relationships--fits with teamwork emphasis.

• Future research:> How do older workers compare to younger

workers? Are all workers responding the same way to the changing workplace?

> Are there tenure-related determinants of job satisfaction?

> Are these determinants cohort-specific?

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We Are Working Longer

• The number of workers aged 80 and older grew by 67 percent between 2000 and 2008. This is the fastest growing cohort.

• The oldest worker in America:> Jack Borden, 101, Weatherford, Texas.> Former district attorney, FBI agent and private

attorney. He works about 40 hours a week, specializing in real estate and probate work.

> Recognized as America’s Outstanding Older Worker in 2009 by Experience Works, a provider of training and services for older workers.

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Decision to Stay Depends on Continued Challenge

• The National Study of the Changing Workforce shows that older workers want the same or more responsibility on the job (87%), not less (12%) than they currently have.> Older workers’ career ambitions may be less

visible.> Older workers may be motivated to

accomplish more as they “cap” their careers.

Source: Shen, C., Pitt-Catsouphes, M., & Smyer, M. (August, 2007). Today’s Multi-Generational Workforce: A proposition of Value. Issue Brief 10. Chestnut Hill, MA: The Center on Aging & Work,

Boston College.

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Decision to Stay: Employee Commitment Is Vital

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Changes in the Work Environment:The Older Employee Perspective

• Culture:> Respect.> Visibility, credibility.> Promotion.> Recognition.> Opportunities for co-worker interaction and

support (age-integrated teams, projects, etc.).

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Changes in the Work Environment:The Older Employee Perspective

Recruitment and selection> Sources (implicit messages in outreach):

• Employee referrals (older workers’ contacts).

• Non-traditional sources (postings on golf courses, churches, etc.).

> Trait evaluation: Diverse selection committees.> Perception (real): Age discrimination.

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Changes in the Work Environment: The Older Employee Perspective

• Hours, flexibility:> Sabbaticals.> Leaves of absence.> Phased retirement.> Rehearsal retirement.> Part-time work.> Part-year work.> Seasonal work.> Snow-bird programs (like those offered by

Borders Books and CVS Pharmacy).

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Changes in the Work Environment:The Older Employee Perspective

• Rewards:> Direct compensation.> Alternatives?> Recognition.

• Development:> Challenge: Additional responsibilities (job

enrichment), job rotation, new assignments, etc.> Training: Access and age-friendly pedagogy.> Mentoring:

• Opportunity to share experiences, organizational learning.

• Reverse mentoring in multi-generational workplace.

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Changes in the Work Environment:The Older Employee Perspective

• Nature of the job itself:> Repetitive motions lead to musculoskeletal

disorders.> Standing.> Lifting.

• Physical environment:> Age-friendly (e.g., door knobs, handles,

visibility issues)> Lights, heat, physical stressors> Noise level> Ergonomics

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Module Summary

• This module offered multiple answers to the question, “Why work?”

• The costs and benefits from continued work were addressed, as well as alternative choices.

• The decision to stay depends on: > Treatment.> Job satisfaction.> Continued challenge.

• There are changing expectations about the work environment:> What is an age-friendly work environment? > HR must address multiple concerns from the

employee perspective.