The Aging WorkforceCynthia L. Roth

Viscardi Center

Ergonomic Technologies Corp

Exactly Who is an "Older Worker"?

• They are full time and part time, temporary and permanent, white-collar and blue-collar

• Older workers may be 45, 55, or 65 years old, in their 70s, or even older

• The Age Discrimination in Employment Act of 1967 (ADEA) applies to individuals aged 40 and over

• Using the ADEA definition, the number of older workers will significantly increase as all baby boomers have reached age 40 in 2004

New BLS Stats Released

Aging Workforce

• Older workers continue to work and retirees return to work for financial reasons, socialization, and wanting to contribute/feel valued

• However, with personal savings significantly lower than in the past, the most compelling reason to work for older Americans is economic

Goals

• Explore how public and private employers are preparing for an increasingly older workforce likely to be comprised of more persons with disabilities

• Identify promising business and industry practices on all aspects of recruiting, hiring, retaining, and accommodating older workers and workers with disabilities

• Develop short and long term recommendations to address the gaps in research, policy, and practices that would support the adoption of employer strategies to hire and retain an older workforce with disabilities

Aging Employees• It is the smart administrator, engineer, safety

professional, counselor, facilities manager, director or health provider who understands the value of the veteran employee – as well as the problems and risks facing employees when they grow older

• We want the brain power, loyalty and the experience and knowledge, but not the lost work-time days, workers' compensation claims or any of the negatives associated with injuries/illnesses

More Statistics

• Employment among people aged 55 and older has increased to an all-time high of 40.4% (Bureau of Labor Statistics, 2010)

• Data from the U.S. Census Bureau suggest that, by 2016, 1/3 of the total U.S. workforce will be age 50 or older, and will increase to 115 million by 2020 (U.S. Census Bureau, 2010)

• The growing number of older people, in concert with the trend to continue working at older chronological ages, is resulting in a shift in workforce demographics

And more Statistics• In 2003, 13% of the workforce was age 55 or older,

and this was projected to increase to 17% and 19% in 2010 and 2050, respectively (Bureau of Labor Statistics, 2010; Fullerton & Toossi, 2001)

• This increase comes at a time when the entry-level workforce is in rapid decline, and the age of retirement is increasing from 65 to 70 years

(Bureau of Labor Statistics, 2010) • During this same time period, labor force participation

is expected to decline or remain the same in the 16 to 54 age group, with the growth in the labor force coming from the increased participation of persons age 65 and older (Eyster, Johnson, & Toder, 2008).

• As •

Statistics• These demographic trends are even more dramatic in

Europe and Japan (Nyce, 2007)• As the workforce ages, the incidence of disability rises

(Bruyère, 2006; Kampfe, Wadsworth, Mamboleo, & Schonbrun, 2008) • The strong correlation between age and disability is

clearly demonstrated in the findings of a University of Wisconsin, Trace Center study (2001) that shows that the incidence of disability among working-age Americans is: 9.5% for workers in the 18 to 24 year old range, 20+% for workers in the 45 to 54 year old range, and approximately 42% for workers in the 65+ age range

Statistics• Older people are also more likely to have multiple

disabling conditions and to have chronic disabling conditions (Kampfe et al., 2008)

• Many common accommodations for employees with disabilities would also be useful in retaining older workers

• Although many older people are likely to have one or more conditions associated with a disability, these conditions do not prevent them from working (Kampfe, Harley, Wadsworth, & Smith, 2007)

Perceptions

However, the perception that such conditions are age related, and perhaps a natural and unavoidable result of aging, has been found to deter employees from requesting accommodations, and to negatively influence the decision to provide accommodation (McMullin & Shuey, 2006)

Job retention can be achieved by providing accommodations and other interventions to prevent early retirement

Why Do Older Workers Work?• Several studies have found that a majority of older

workers indicate that they plan to work past the traditional retirement age

• This trend can be attributed, in part, to the reduced value of retirement portfolios/income and improved health/consequent increased life expectancy, and is expected to continue (Administration on Aging, 2007)

• But older workers also work because they want to — because they are highly engaged in their work, satisfied with their jobs, and committed to their organizations (Galinsky, 2007)

Be Happy• Pitt-Catsouphes and Matz-Costa (2009) define

“engagement” as “a positive, enthusiastic, and affective connection with work that motivates an employee to invest in getting the job done, not just ‘well’ but ‘with excellence’ because the work energizes the person” and find that older workers have consistently higher levels of engagement

• Engaged employees use less health care, take fewer sick days, are more productive, have longer tenure, and create stronger customer relationships (Pitt-Catsouphes and Matz-Costa, 2009)

Work Balance

Mentoring Works!!!• By 2020, 25 million Baby Boomers, who make up

more than 40% of the U.S. labor force, will be exiting the workforce in large numbers and leaving many jobs to be filled

• With their departure, the work characteristics that define the Baby Boomer generation — results-driven, ambitious, idealistic, competitive, optimistic, and people-oriented — may be lost unless companies creatively develop strategies to simultaneously retain older workers and transition their knowledge to younger workers (Morton, Foster, & Sedlar, 2005)

Potential Brain Drain• These workers will also take decades of accumulated

organizational knowledge with them, and this “brain drain” could result in the loss of key information about customers or practices that could be devastating to organizations (Pitt-Catsouphes & Matz-Costa, 2009).

• November 2011 issue of the AARP Bulletin, the University of Massachusetts Medical School reported losing 10% of its employees over 50 years of age every year

• To address this concern, the Medical School implemented several strategies to retain older workers and avoid the loss of institutional knowledge over the next 10 years

More Brain Draining

• The loss of expertise through retirement is further compounded by the projected job change patterns among current workers Estimates show that Boomers (46 to 64 years old) will have four to six jobs over their working life, Gen X’s (30 to 45 years old) will have 10 to 12 jobs over their working life, and members of Gen Y (15 to 29 years old) will change jobs every one to two years

Now We Are Talking Money

• The projected high rates of turnover are cause for serious concern among businesses and government that will see their profits significantly reduced by the costs associated with filling vacant positions

• According to a recent article by Allen (2010), the cost of turnover ranges from 25% to 250% of the position’s annual salary, depending on the skill requirements of the job

Off Site Employees

• While the loss of experienced staff is a challenge that all companies and government agencies must address off site employees, technology has improved the workplace and the work environment by enabling workers of all ages to complete work from other locations

Workforce and Workplace Assessments

It Succession Planning• Assess how retiring workers will affect their

organization• Address skill shortage challenges due to staff

attrition• Create a work environment that attracts qualified

workers of all ages• Manage a multi-generational workforce• Build an employer brand that attracts and retains

top talent

How To Do It

Recruitment - Employers should take full advantage of the opportunities to select individuals with specific talents, experiences, and perspectives from diverse age groups

While approximately 25% of companies have adopted policies to hire retirees, 52% indicated their practice of rehiring retirees in the absence of any formal policy

Federal Guidelines

• On August 27, 2013, the U.S. Department of Labor’s Office of Federal Contract Compliance Programs announced a Final Rule that makes changes to the regulations implementing Section 503 of the Rehabilitation Act of 1973, as amended (Section 503) at 41 CFR Part 60-741

• Section 503 prohibits federal contractors and subcontractors from discriminating in employment against individuals with disabilities (IWDs), and requires these employers to take affirmative action to recruit, hire, promote, and retain these individuals

Federal Guidelines• The Final Rule also makes changes to the

nondiscrimination provisions of the regulations to bring them into compliance with the ADA Amendments Act of 2008

• The Final Rule was published in the Federal Register on September 24, 2013, and becomes effective on March 24, 2014

• However, current contractors with a written affirmative action program (AAP) already in place on the effective date have additional time to come into compliance with the AAP requirements. The compliance structure seeks to provide contractors the opportunity to maintain their current AAP cycle

Federal Guidelines

• However, current contractors with a written affirmative action program (AAP) already in place on the effective date have additional time to come into compliance with the AAP requirements

• The compliance structure seeks to provide contractors the opportunity to maintain their current AAP cycle

FED Guidelines

• The Final Rule establishes a nationwide 7% utilization goal for qualified IWDs

• Contractors will apply the goal to each of their job groups, or to their entire workforce if the contractor has 100 or fewer employees Contractors must conduct an annual utilization analysis and assessment of problem areas, and establish specific action-oriented programs to address any identified problems

Why Retain an Older Worker?• More willing to work different schedules• Serve as mentors• Invaluable experience• Stronger work ethic• More reliable• Add diversity of thought/approach• More loyal• Take work more seriously• Have established networks• Higher retention rates

Do aging workers need any special accommodations?

• Yes and no (how’s that for an answer)• A well-designed work place benefits everyone, young

and aging• Workstations and job tasks that are matched to the

needs of the individual employee are always best• Different conditions for different workers may be

needed to meet the needs of any employee, not just one that is older

• However, that being said, there are some things older workers need to work safely and comfortably

• People with Disabilities may need some AT

Assistive Technologies

• Assistive Technology or AT is any item, piece of equipment or product system that is used to increase, maintain or improve an employee’s functional and productive capabilities

• After an evaluation to determine what AT, if any is appropriate, employees can be trained on the AT

AT

• Because compliance with the Americans with Disabilities Act (ADA) is crucial in all types of workplaces today, accommodation may require AT that will maintain an employee at work or as part of a Return to Work process This occurs in the context of the ADA’s “reasonable accommodations” requirements The technology constitutes the most appropriate form of accommodation for the employee

AT• Assistive technology is the key to the

performance of an increasing proportion of jobs in our economy

• It has transformed the lives of employees, not just for communication but for most job tasks

• With the aging population workforce, the assistive technologies can be the difference between working and not being able to perform job tasks

AT

• It is essential that employers and employees become familiar with the AT of today and the benefits they provide to any type of organization

Need a Reminder to Take Your Meds?

Magnifying with Light

Are there any specific health and safety concerns related to aging workers?

• Most studies say that older workers tend to have fewer accidents, but when an older worker does get injured, their injuries are often more severe

• They also may take longer to get better• The types of injuries can be different

Are there any specific health and safety concerns related to aging workers?

• Younger workers tend to get more eye or hand injuries, while older workers who have been working for many years report more back injuries

• Many workplace injuries are the result of doing jobs with risk factors for repetitive motion injuries that develop over time, cumulative traumas

Are there any specific health and safety concerns related to aging workers?

• An older worker may report more musculoskeletal injuries since they've had longer for the condition to develop

• When anyone, no matter how old they are, is pushed to work harder than they safely can, there is a risk for injury

• Because older workers tend to have more severe injuries when they do happen, it's important to make adjustments to work stations or work patterns to make them as safe as possible

• It's also important to make sure a person is suited for a particular task and is safely able to do it

Keeping Older Employees

• Create alternative career paths• Provide opportunities for knowledge

transfer• Adopt a life cycle work/life approach• Provide extended leave arrangements• Assist employees in making informed

retirement decisions• Engage "alumni" workers

What is So Significant About Human Aging and Our Bodies?

• Loss of strength • Loss of muscular flexibility • Loss of joint range of motion • Diminished postural steadiness • Reduced grip strength • Reduced nervous system responses • Reduced blood flow and tactile feedback • Reduced visual capacity • Slowing of our mental processing

Return to Work

• It is critical for physician, employee and supervisor to understand the importance of returning the employee back to work as soon as possible

• If the employee is to return under modified or light-duty, all job changes should be clearly established beforehand and enforced

• There must be an action plan or return-to-work agreement written to get the employee back to full potential as soon as possible

Return to Work

• Developing a RTWA requires: • Coordination between the employee, employer,

union, employee assistance program (EAP) and/or treatment professionals.

• Compliance with the organization’s policies and legal obligations, as well as medical recommendations

• Prior notification through organization policy that a RTWA would be expected as a condition of continued employment

Return to Work• Reassignment to light or modified duty can help

reduce the overall costs and length of disability• It is usually offered for a limited time• Starting with less work and fewer hours than

regular job requirements and are gradually increasing as abilities return until the person is able to fully function in the job

• Employer, manager and employee must agree in advance what the restrictions will be and what the target date is for resuming full responsibilities

Return to Work• To make the return-to-work program successful,

carry out ongoing evaluations, updates and review of the employee’s progress and job functions

• Smaller organizations usually monitor progress less formally than larger organizations that may employ experts to evaluate progress

• Conduct Ergonomic audits of risk factors of each job and reduce them

Accommodation• “Under the ADA, the employer must first

attempt to accommodate the employee in his/her current position

• Light duty must be considered as a reasonable accommodation only if an employer has light duty jobs in general or if an employer reserves (vs. creates) light duty jobs for employees with occupational injuries

• Reassignment must be considered as an accommodation of last resort,” – says Ted Clark’s Legal Corner, Light Duty Under the

Americans with Disabilities Act

Return to Work for Aging Workforce

• Find the jobs that possess the greatest physical risks to the various soft tissue groups through an organized, systematic ergonomic process that is quantifiable

• This will assist in prioritizing the jobs that need to be changed as well as those that could be used for return-to-work and to keep employees working longer

• Let’s talk about Cross Functional Training

What should an employer do to assist employees -- at any age -- to prevent

injuries to muscles and other soft tissues of the body?

• Reduce work with static muscle effort (e.g. sustained, fixed postures)

• Increase use of mechanical lifts• Keep work in "neutral zone" • Eliminate twisting of the upper torso• Stretch upper body throughout the day• Continue or begin regular stretching

programs

What Causes Work Related Absences

• Surveys indicate that the most common causes of

short-term absence are:– Minor illnesses such as colds, flu, stomach upsets and

headaches

• For long-term sickness absence the most common causes are:– Musculoskeletal injuries and back pain-ERGONOMICS – Stress and mental health difficulties

Return to Work• Over the last decade, there has been an increased

focus in research on work disability and return to work following occupational and non-occupational injuries and illnesses

• This rising interest is partially due to the increase in musculoskeletal disorders and their considerable societal cost

• The US working population is an aging one

Return to Work for Aging Workforce

• Better management of injured workers is always a goal of medical, vocational and employer professionals

• A new challenge adding urgency to the overall system is the rising age of workers

• Fears of injury, disability and loss of productivity are held by the employees themselves as well as employers, medical professionals and vocational experts as the working age increases

• Newly designed systems and concepts that are working well with injured workers hold the same answers for the aging/ and people with disabilities in the workforce

Return to Work for Aging Workforce

• The commonality is a system that can reduce costs and lost workdays for the injured and also be used to implement preventive measures for workers undergoing normal aging changes

• A healthier and more productive workforce is possible whether injury or aging or disabilities is the focus

The Insurer must establish and maintain an Injury Management Program

• It is a coordinated and integrated set of policies and procedures addressing all aspects of injury management from time of injury, including:• treatment• medical management practices• employment• rehabilitation• retraining; and claims management systems

• The employer has reporting and injury management obligations under the insurers Injury Management Program of which they must be made aware, and with which they must comply

Return to Work Program• The employer must establish a Return to Work Program in

conjunction with the workers, an approved rehabilitation provider, and the industrial union where applicable.

• This Program must be consistent with their insurers Injury Management Program and include:

• Policies and procedures (eg. reporting procedures and early notification procedures) for the rehabilitation of an injured worker (including where necessary vocational rehabilitation)

• Arrangements for medical treatment; and• A summary of all parties responsibilities who are involved in the

program• This program should be displayed at each workplace and

include all steps in the process commencing from the early notification of the injury, right through to the return to work strategies

Definition of Modified Work • Some define "modified work" as temporary

assignments within an employee's abilities, knowledge and skills

• These positions are developed using the employee's abilities/restrictions as determined by the employee's treating physician

• They may also include responsibilities and tasks taken from the employee's regular job, when the employee cannot perform full duties

Return to Work

• Aging–A natural process– It will happen to all of us–We want to work as long as we want to

work–We want to be healthy as we age –We might be disabled but we can work–We want to enjoy life

THANK YOUCindy Roth

Kornreich Technology Center at the Viscardi Center

www.viscardicenter.org516 465 1614