SHRM Survey Findings: The Aging Workforce—
State of Older Workers in U.S. Organizations
Funded by the Alfred P. Sloan Foundation
January 12, 2015
The Aging Workforce—State of Older Workers in U.S. Organizations ©SHRM 2014 2
Introduction and Definition
Introduction
SHRM and the SHRM Foundation have launched a national initiative highlighting the
value of older workers and identifying—through original research—the best practices for
employing an aging workforce. This three-year initiative is generously underwritten by a
grant from the Alfred P. Sloan Foundation.
The purpose of this research is to:
� Investigate the current demographics of organizations and their views on how the
demographic breakdown of their workforces is likely to change in the future in both
their organizations and industries.
� Determine what, if any, actions organizations are taking to prepare for an aging
workforce, including recruiting and retention strategies to specifically target older
workers.
� Identify the skills and experience HR professionals most value in older workers.
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Introduction and Definition (continued)
The following topics are included in the three-part series titled 2014 Older
Workers Survey:
� Part 1: State of Older Workers in U.S. Organizations
� Part 2: Recruitment and Retention
� Part 3: Basic and Applied Skills
Definition
� For the purpose of this survey, “older workers” were defined as employees age 55
or older.
The Aging Workforce—State of Older Workers in U.S. Organizations ©SHRM 2014
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Key Findings
• Age workers are defined as “older workers”: One-third (32%) of HR professionals reported that
their organizations begin to consider employees to be older workers when they are between
ages 60 and 64, another 17% between ages 65 and 69, and 7% when the employees are age 70
or older.
» In general, HR professionals indicated employees considered employees to be older
workers when they are slightly younger. About one-quarter of HR professionals reported that
employees begin to consider employees to be older workers when they are between ages
50 and 54 (28%), between ages 55 and 59 (28%) or between ages 60 and 64 (24%). Less
than 10% of employees did not consider employees to be older workers until they are age
65 or older.
• How organizations are preparing for the projected increase in the proportion of older workers
in the labor force: Over one-third of responding organizations (36%) indicated they were
preparing for the projected increase in the proportion of older workers in the labor force by
“beginning to examine internal policies and management practices to address this change”; one-
fifth (20%) indicated their organization had examined their workforce and determined that no
changes in their policies and practices are necessary.
The Aging Workforce—State of Older Workers in U.S. Organizations ©SHRM 2014
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Key Findings (continued)
• Overall impact of the potential loss of talent as a result of older workers retiring or leaving
their organizations for other reasons: About one-half of HR professionals did not think the
potential loss of talent as older workers retire or leave over the next 1-2 years would have an
impact on their industry and organization (46% and 53%, respectively). As HR professionals
considered the long-term impact of the potential loss of talent, higher percentages indicated they
think the loss of talent will be a “problem” or a “crisis.” About one-third think it will be a
problem/crisis for their industry in the next 6-10 years and 11-20 years (36% versus 39%,
respectively); the same was true for the impact on their organization (35% and 39%, respectively).
• Tracking employees eligible for retirement: About one-half of responding organizations reported
they track the percentage of workers in their organization eligible to retire in the next 1-2 years
(50%) and 3-5 years (45%).
� Of responding organizations, 10% of their employees will be eligible for retirement in the
next 1-2 years; another 14% will be eligible in the next 3-5 years.
The Aging Workforce—State of Older Workers in U.S. Organizations ©SHRM 2014
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Key Findings (continued)
• Percentage of organizations that have conducted a strategic workforce planning assessment:
More than one-half of responding organizations indicated they had identified their future workforce
needs (58%) and their potential skills gaps (52%) in the next 1-2 years; one-third (35%) had analyzed
the impact of workers age 55 and older leaving their organization in the next 1-2 years.
� As responding organizations considered strategic workforce planning further into the future,
they were less inclined to have taken action; about one-fifth had analyzed the impact of workers
age 55 and older leaving their organization (17%), identified their future workforce needs (21%) or
identified their potential skills gaps (20%) in the next 6-10 years.
The Aging Workforce—State of Older Workers in U.S. Organizations ©SHRM 2014
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Implications for HR
• HR professionals must lead their organizations in preparing for a more demographically diverse
workforce due to an increase in the proportion of older workers. To do this, however, they must first
educate themselves about the change and consider how it may affect their organizations. A first step is
determining what percentage of their workforces is age 55 or older and projecting how this proportion
may evolve in the years ahead.
• Each industry and organization will be affected by an aging population in different ways. HR
professionals must understand their own unique industry and organizational demographics to create
viable strategies for successfully addressing these changes.
• Convincing workers to delay retirement and stay in the workforce will be an important HR responsibility
in the years ahead, but preparing for these changes could be challenging if managers and
organizational leaders do not lend their support in these efforts. Thus, part of HR’s role in readying their
organizations for an aging workforce will be educating leaders and managers on the benefits and
opportunities of an aging workforce.
• A minority of HR professionals say their organizations have analyzed the impact of workers age 55 and
older leaving their organization, identified their future workforce needs or identified their potential skills
gaps in the next 6-10 years. Taking this step is encouraged because it will help position organizations to
take advantage of an aging workforce as a strategic opportunity.
The Aging Workforce—State of Older Workers in U.S. Organizations ©SHRM 2014
Age at which most employees begin to
consider an employee to be an older
worker
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Age Workers Are Defined as “Older Workers”
6%
4%
14%
21%
32%
17%
7%
40 - 44
45 - 49
50 - 54
55 - 59
60 - 64
65 - 69
70 or over
Age at which organizations begin to
consider an employee to be an older
worker
Note: 2014 n = 1,913. Percentages may not equal100% due to rounding.
Note: 2014 n = 1,647. Respondents who indicated “Don’t know” were excluded from this analysis. Percentages may not equal100% due to rounding.
4%
9%
28%
28%
24%
6%
1%
40 - 44
45 - 49
50 - 54
55 - 59
60 - 64
65 - 69
70 or over
The Aging Workforce—State of Older Workers in U.S. Organizations ©SHRM 2014
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How Organizations Are Preparing for the Projected Increase
in the Proportion of Older Workers in the Labor Force1
36%
20%
19%
13%
6%
5%
2%
Beginning to examine internal policies and
management practices to address this change
Have examined our workforce and determined that no
changes in our policies and practices are necessary
Just becoming aware of this potential change
Not aware of this potential change
Have implemented specific policies and management
practices
Have proposed specific policy and management
practice changes
Have agreed on a plan to change policies and
management practices
Note: n = 1,715. Percentages may not equal100% due to rounding.1 Survey question: “According to the Bureau of Labor Statistics, workers 55 years of age and over are projected to make up approximately 26% of the labor force by the year 2022, compared to 21% in 2012 and 14% in 2002. As the proportion of older workers increases, the potential impact resulting from the loss of their knowledge and experience may become more substantial. Which of the following best describes your organization’s preparation for this change?”
The Aging Workforce—State of Older Workers in U.S. Organizations ©SHRM 2014
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Note: Percentages may not equal100% due to rounding.
3%
4%
8%
13%
18%
24%
28%
26%
33%
41%
41%
34%
46%
32%
23%
26%
1-2 years (n = 1,592)
3-5 years (n = 1,612)
6-10 years (n = 1,532)
11-20 years (n = 1,396)
It is a crisis It is a problem It is a potential problem It is not a problem
4%
3%
7%
12%
17%
24%
28%
27%
27%
38%
40%
34%
53%
35%
24%
28%
1-2 years (n = 1,785)
3-5 years (n = 1,800)
6-10 years (n = 1,687)
11-20 years (n = 1,499)
It is a crisis It is a problem It is a potential problem It is not a problem
Impact on IndustryImpact on IndustryImpact on IndustryImpact on Industry
Impact on Impact on Impact on Impact on OrganizationOrganizationOrganizationOrganization
Overall Impact of the Potential Loss of Talent as a Result of Older Workers
Retiring or Leaving Their Organizations for Other Reasons
The Aging Workforce—State of Older Workers in U.S. Organizations ©SHRM 2014
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Tracking Employees Eligible for Retirement
Does your organization track the
percentage of workers in your
organization eligible to retire in the
next . . .
Approximately what percentage of
your workforce will be eligible for
retirement in the next . . .
Note: n = 1,815-1,872. Percentages do not equal 100% due to multiple response options.
50%
45%
25%
17%
1-2 years (n = 1,872)
3-5 years (n = 1,868)
6-10 years (n = 1,830)
11-15 years (n = 1,815)
Note: n = 270-855. Percentages do not equal100% due to multiple response options.
10%
14%
20%
23%
1-2 years (n = 855)
3-5 years (n = 768)
6-10 years (n = 416)
11-15 years (n = 270)
The Aging Workforce—State of Older Workers in U.S. Organizations ©SHRM 2014
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Percentage of Organizations That Have Conducted a
Strategic Workforce Planning1 Assessment to . . .
1Strategic workforce planning is a process used to ensure an organization takes into account the future loss of knowledge through employee resignations/retirements and the projected knowledge/personnel resources required to achieve the organization’s goals.
n = 1,551-1,651 n = 1,542-1,691 n = 1,529-1,666
35%
58%52%
31%
44%39%
17%21% 20%
Analyze the impact of
workers age 55+ leaving
your organization
Identify your future
workforce needs
Identify your potential
skills gaps
1-2 years 3-5 years 6-10 years
The Aging Workforce—State of Older Workers in U.S. Organizations ©SHRM 2014
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DemographicsDemographicsDemographicsDemographics
The Aging Workforce—State of Older Workers in U.S. Organizations ©SHRM 2014
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Demographics: Organization Industry
The Aging Workforce—State of Older Workers in U.S. Organizations ©SHRM 2014
PercentagePercentagePercentagePercentage
Professional, scientific, technical and information services 21%
Manufacturing 20%
Government agencies 17%
Health care and social assistance 10%
Retail and wholesale trade, and accommodation and food services 10%
Educational services 8%
Real estate and leasing, and finance and insurance 8%
Transportation and warehousing 6%
Construction 5%
Administrative and support, and waste management and remediation services 4%
Utilities 4%
Note: n = 1,784. Percentages do not equal 100% due to multiple response options.
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Demographics: Organization Industry (continued)
The Aging Workforce—State of Older Workers in U.S. Organizations ©SHRM 2014
PercentagePercentagePercentagePercentage
Arts, entertainment and recreation 3%
Mining, quarrying, and oil and gas extraction 3%
Religious, grant-making, civic, professional and similar organizations 3%
Repair and maintenance 3%
Agriculture, forestry, fishing and hunting 2%
Personal and laundry services 1%
Other industry 10%
Note: n = 1,784. Percentages do not equal 100% due to multiple response options.
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Demographics: Organization Sector
Note: n = 1,696
15%
49%
17%
17%
2%
Publicly owned for-profit
Privately owned for-profit
Nonprofit organization
Government agency
Other
The Aging Workforce—State of Older Workers in U.S. Organizations ©SHRM 2014
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Demographics: Organization Staff Size
Note: n = 1,011
16%
35%
24%
20%
6%
1 to 99 employees
100 to 499 employees
500 to 2,499 employees
2,500 to 24,999 employees
25,000 or more employees
The Aging Workforce—State of Older Workers in U.S. Organizations ©SHRM 2014
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n = 1,717
U.S.-based operations only 77%
Multinational operations 23%
Single-unit organization: An organization in
which the location and the organization are
one and the same.
39%
Multi-unit organization: An organization that
has more than one location.61%
Is your organization a single-unit organization or a
multi-unit organization?
Does your organization have U.S.-based
operations (business units) only, or does
it operate multinationally?
n = 1,722
Demographics: Other
Multi-unit headquarters determines HR policies
and practices53%
Each work location determines HR policies and
practices4%
A combination of both the work location and
the multi-unit headquarters determines HR
policies and practices
43%
For multi-unit organizations, are HR policies and
practices determined by the multi-unit headquarters, by
each work location or by both?
n = 1,102
Corporate (companywide) 69%
Business unit/division 15%
Facility/location 16%
n = 1,101
What is the HR department/function for
which you responded throughout this
survey?
The Aging Workforce—State of Older Workers in U.S. Organizations ©SHRM 2014
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SHRM Survey Findings: 2014 Older Workers Survey—
State of Older Workers in U.S. Organizations
• Response rate = 9.9%
• 1,913 HR professionals from a randomly selected sample of SHRM’s membership participated in
this survey
• Margin of error +/-2%
• Survey fielded May-July, 2014
Survey Methodology
Funded by the Alfred P. Sloan Foundation
The Aging Workforce—State of Older Workers in U.S. Organizations ©SHRM 2014
For more survey/poll findings, visit shrm.org/surveys
For more information about SHRM’s Customized Research Services, visit
shrm.org/customizedresearch
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About SHRM Research
Project lead:
Karen Wessels, researcher, SHRM Research
Project contributors:
Evren Esen, SPHR, director, Survey Programs, SHRM Research
Jennifer Schramm, GPHR, manager, Workforce Trends and Forecasting, SHRM Research
Yan Dong, intern, SHRM Research
Copy editor:
Katya Scanlan, SHRM Knowledge Center
The Aging Workforce—State of Older Workers in U.S. Organizations ©SHRM 2014
Founded in 1948, the Society for Human Resource Management (SHRM) is the world’s
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Representing more than 275,000 members in over 160 countries, the Society is the
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About SHRM
The Aging Workforce—State of Older Workers in U.S. Organizations ©SHRM 2014
The Alfred P. Sloan Foundation believes that a carefully reasoned and systematic
understanding of the forces of nature and society, when applied inventively and wisely,
can lead to a better world for all. The Foundation makes grants to support original
research and broad-based education related to science, technology, and economic
performance; and to improve the quality of American life. Though founded in 1934 by
Alfred P. Sloan Jr., then-President and CEO of General Motors, the Foundation is an
independent entity and has no formal relationship with the General Motors Corporation.
The Foundation is unique in its focus on science, technology, and economic institutions.
It believes the scholars and practitioners who work in these fields are chief drivers of the
nation’s health and prosperity. In each grant program, the Foundation seeks proposals
for original projects led by outstanding individuals or teams. http://www.sloan.org/
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About the Sloan Foundation
The Aging Workforce—State of Older Workers in U.S. Organizations ©SHRM 2014