SHRM Survey Findings: The Aging Workforce— Recruitment and Retention Funded by the Alfred P. Sloan...

SHRM Survey Findings: The Aging Workforce—Recruitment and Retention

Funded by the Alfred P. Sloan Foundation

January 12, 2015

The Aging Workforce—Recruitment and Retention ©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—Recruitment and Retention ©SHRM 2014

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• Changes in retention, recruiting and general management policy practices in response to aging workforces: Two-fifths of responding organizations indicated the increasing age of their workforce has not prompted changes in retention (42%), recruiting (42%) or general management policy practices (41%).

• Recruiting methods to directly target older workers: Of responding organizations that indicated the increasing age of their organization’s workforce has prompted changes in their recruiting practices, the most commonly reported recruiting method to directly target older workers was through employee referrals (33%); one-quarter (24%) indicated they relied on networking.

Over one-half (54%) indicated they do not actively recruit older workers.

• Use of social media to target older workers: Of responding organizations that indicated they used social media to target older workers, three-quarters (74%) indicated they used LinkedIn, and one-half (49%) indicated they used Facebook.

• Level of difficulty in recruiting older workers: About one-fifth to one-quarter of HR professionals indicated it is easy/extremely easy to recruit exempt and nonexempt older workers (21% and 24%, respectively).

• Level of difficulty in retaining older workers: About two-fifths of HR professionals indicated it is easy/extremely easy to retain exempt and nonexempt older workers (45% and 42%, respectively).

Key Findings


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• Factors contributing to difficulty in retaining older workers: Of HR professionals who indicated it is “difficult” or “very difficult” for their organization to retain older workers compared to other workers, the three most challenging factors cited included:

Inability to offer flexibility in work location (e.g., working from home, satellite offices) (47%).

Inability to offer career flexibility (e.g., reduced responsibilities, job change/occupation shift) (45%).

Inability to offer work hour flexibility (e.g., reduced hours, job-sharing, phased retirement, part-year employment) (44%).

• Level of difficulty in recruiting older workers by employee type: About one-quarter of HR professionals indicated it is difficult or extremely difficult to recruit older workers qualified for labor, skilled (25%), executive (25%), salaried individual contributor/professional (22%) and management (22%) positions compared to other workers.

Regardless of the type of position, a lack of or few applications from older workers for eligible positions was the most cited difficulty in filling positions with older workers who are qualified compared to other workers (46%-60%).

Key Findings (continued)


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• Older workers who were formerly retirees: Two-thirds (66%) of responding organizations indicated their organization employs older workers who retired from other organizations or careers before joining their organization.

However, the vast majority (90%) indicated just 1%-20% of their organization’s older workers were retirees before joining their organization.

Of responding organizations that indicated they employ older workers who were formerly retirees, about two-fifths (43%) indicated all of these employees were in full-time positions, and just 11% indicated they were all in part-time positions; almost one-half (46%) indicated they were mixed between full-time and part-time positions.

• Factors in former retirees returning to work: Almost three-quarters (72%) of HR professionals indicated money was a factor in former retirees returning to work; almost three-fifths (58%) indicated enjoyment/occupying time was a factor, and about two-fifths indicated health care benefits (45%) and social interaction (42%) contributed to the decision to return to work.

• Capitalizing on and incorporating the experience of older workers: Over three-fifths (61%) of HR professionals indicated their organization attempts to capitalize on and incorporate the experience of older workers to “some” or a “great extent.”


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• Formal strategies for retaining or recruiting older workers: Very few responding organizations indicated they have a formal strategy for retaining (4%) or recruiting (3%) older workers. Of responding organizations that indicated they have a formal strategy to recruit or retain older workers:

About one-half (48%) indicated they offered reduced hours or part-time positions to older workers, two-fifths hired retired employees as consultants or temporary workers (40%) and/or started flexible scheduling (37%), and about one-third created positions/redesigned positions that allow bridge employment (30%) and/or offered phased/gradual retirement (30%).

• Steps taken to recruit or retain older workers: Of HR professionals who indicated their organization has taken a specific step(s) to recruit or retain older workers, the majority indicated hiring retired employees as consultants or temporary workers (67%), offering reduced hours or part-time positions to older workers (57%) and starting flexible scheduling (63%) were very effective in recruiting or retaining older workers.

• Use of steps/methods implemented to recruit or retain older workers: Of responding organizations that indicated they have taken a specific step(s) to recruit or retain older workers, less than one-quarter indicated that more than one-half of their eligible employees actually used reduced hours or part-time positions (21%), flexible scheduling (24%) or phased/gradual retirement (16%) programs for older workers.


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Implications for HR

• As the workforce continues to age, the percentage of organizations prompted to make changes in general management policy/practices, retention practices or recruiting practices is likely to increase. Even HR professionals in industries and sectors that currently skew toward younger employees will need to consider how the aging population will affect them.

• The more highly skilled positions are likely to continue to be the most challenging for organizations to fill and are thus the jobs for which the greatest efforts to locate qualified older workers will be made.

• Currently, recruiting and retaining older workers are not seen as particularly difficult. However, this could change if skills shortages ramp up demand.

• Because employee referrals and networking are currently the most common ways organizations are targeting older workers, employees themselves are a central part of the recruitment of older workers.

• The recruitment of older workers is likely to become more integrated into overall diversity initiatives.

• The use of social media to target older workers could become more prevalent, especially if generational differences in the use of these kinds of technologies start to fade.


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Implications for HR (continued)

• Organizations that currently indicate that it is “difficult” or “very difficult” to retain older workers compared to other workers provided a sense of what factors play the biggest role in meeting the needs of this demographic: offering flexibility in work location, career structure, work hours and scheduling, and type of employment and benefits attractive to older workers.

• Although most organizations do employ older workers who retired from other organizations or careers before joining their organization, it remains a fairly small percentage of their overall workforce.

• As the workforce ages and especially if skills shortages intensify, learning the best ways to incorporate the experience of older workers will be considered a competitive edge. Thus, HR professionals will likely be increasingly focused on recruiting and retaining the best older workers. This could influence all aspects of the employment from the type of flexible work arrangements organizations offer to employee benefits.


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Extent Increasing Age of Organization’s Workforce Has Prompted Changes in . . .

Note: n = 1,832-1,843. Respondents who indicated “Not applicable” were excluded from this analysis. Percentages may not equal 100% due to rounding.

Recruiting practices

Retention practices

General management policy/practices

8%

7%

4%

27%

26%

24%

24%

26%

31%

41%

42%

41%

To a great extent To some extent To a small extent Not at all


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Employee referrals

Internet (e.g., websites geared toward older audience)

Use of current older workers as recruiters

Temporary firms

Specify older workers are welcomed & encouraged to apply

Churches

Older workers’ job fairs

Retirement communities

We do not actively recruit older workers

33%

24%

14%

13%

13%

12%

11%

8%

7%

6%

4%

3%

2%

1%

1%

3%

54%

Recruiting Methods Used by Organizations to Directly Target Older Workers

Note: n = 1,074. Only respondents who indicated the increasing age of their organization’s workforce has prompted changes in their recruiting practices were asked this question. Percentages do not equal100% due to multiple response options.


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Social Media Resources Used by Organizations to Directly Target Older Workers in Their Recruiting Efforts

Note: n = 115. Only respondents who indicated their organization uses social media to target older workers were asked this question. Percentages do not equal 100% due to multiple response options.1 Other than SHRM Connect

LinkedIn

Facebook

Professional or association social networking site

Twitter

YouTube

SHRM Connect

Google+

Foursquare

Pinterest

MySpace

Second Life

Other

74%

49%

28%

28%

10%

9%

8%

3%

3%

2%

1%

11%

1


13

Exempt older workers

Nonexempt older workers

9%

10%

46%

48%

45%

42%

Extremely difficult/Difficult Neither easy nor difficult Easy/Extremely easy

Recruit

Retain


Non-exempt older workers

0.17

0.17

0.61

0.59

0.21

0.24

Extremely difficult/Difficult Neither easy nor difficult Easy/Extremely easy

Note: Percentages may not equal 100% due to rounding.


Nonexempt older workers

Difficulty Level to Recruit and Retain Qualified Older Workers Compared with Other Workers, by Exempt Status


14

Executive (e.g., CEO, CFO, VP)

Management (e.g., director, manager, supervisor)

Salaried individual contributor/professional (e.g., analyst, nurse, engineer)

Administrative/secretarial

Labor, skilled (e.g., technician, mechanic, foreman)

Labor, low-skilled

25%

22%

22%

7%

25%

17%

46%

44%

47%

45%

46%

41%

29%

34%

31%

48%

30%

41%

Extremely difficult/Difficult Neither easy nor difficult

Note: Respondents who indicated “Not applicable” were excluded from this analysis.

n = 1,064

n = 1,123

n = 1,549

n = 1,464

n = 1,601

n = 1,300

Difficulty Level to Recruit Qualified Older Workers Compared with Other Workers, by Job Category


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Note: n = 242. Only respondents who indicated it is “Difficult” or “Very difficult” for their organization to retain older workers compared to other workers were asked this question. Percentages do not equal 100% due to multiple response options.

Factors That Contribute to Difficulties in Retaining Older Workers

My organization is unable to offer . . .

Flexibility in work location (e.g., working from home, satellite offices) 47%

Career flexibility (e.g., reduced responsibilities, job change/occupation shift) 45%

Work hour flexibility (e.g., reduced hours, job-sharing, phased retirement, part-year employment) 44%

Work schedule flexibility (e.g., changing starting and ending times periodically, compressed workweek )

43%

Flexibility in type of employment (e.g., consultant work, temporary work) 38%

Benefits attractive to older workers (e.g., different health care benefits, wellness plans) 34%

Other 15%


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Factors That Contribute to Difficulties in Recruiting Qualified Older Workers Compared with Other Workers, by Job Category

Note: Only respondents who indicated it is “Difficult” or “Very difficult” for their organization to recruit older workers compared to other workers were asked this question. Percentages do not equal 100% due to multiple response options.

Labor, low-skilled

Labor, skilled


Salaried individual contributor/professional

Management

Executive

25%

22%

33%

23%

24%

19%

17%

19%

17%

22%

25%

21%

36%

35%

30%

24%

24%

20%

(n = 177)

(n = 270)

(n = 103)

(n = 316)

(n = 340)

(n = 310)

Bias toward older workers in the hiring process

Unable to offer benefits

attractive to older workers

Unable to offer work schedule flexibility


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Unable to offer flexibility in

work location

Unable to offer work hour flexibility

Unable to offer career

flexibility

Labor, low-skilled

Labor, skilled



Management

Executive

34%

39%

33%

28%

28%

23%

34%

37%

34%

31%

31%

23%

27%

30%

27%

25%

28%

20%

(n = 177)

(n = 270)

(n = 103)

(n = 316)

(n = 340)

(n = 310)



Factors That Contribute to Difficulties in Recruiting Qualified Older Workers Compared with Other Workers, by Job Category (continued)

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Unable to offer flexibility in type of employment

Lack of or few applications from older

workers for eligible positions

Other

Labor, low-skilled

Labor, skilled



Management

Executive

31%

24%

28%

23%

21%

17%

60%

56%

48%

54%

47%

46%

15%

13%

20%

17%

17%

17%

(n = 177)

(n = 270)

(n = 103)

(n = 316)

(n = 340)

(n = 310)



Factors That Contribute to Difficulties in Recruiting Qualified Older Workers Compared with Other Workers, by Job Category (continued)

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Older Workers Retiring from Other Organizations or Careers Prior to Joining Current Organization

To your knowledge, in your organization, are there older workers who retired from other organizations or careers before joining your organization?

Note: n = 1,528. Respondents who indicated “Don’t know” were excluded from this analysis.

What percentage of older workers at your organization previously retired from other organizations or careers before joining your organization?

Note: n = 925. Only respondents who indicated their organization has older workers who retired from other organizations or careers before joining their organization were asked this question. Respondents who indicated “Don’t know” were excluded from this analysis.

Series166%

34%

No

Yes


Are the older workers in your organization who retired from other organizations or careers working in full-time, part-time or a mix of full-time and part-time positions at your organization?

Note: n = 984. Only respondents who indicated their organization has older workers who retired from other organizations or careers before joining their organization were asked this question.

0%1-20%

21-40%41-60%61-80%

81-100%

1%90%

5%2%1%1% Part-time

Full-time

A mix

11%

43%

46%

20

Money

Enjoyment/occupying their time

Health care benefits

Social interaction

Challenge

Retirement benefits

Alternative career tracks for older workers

Wellness programs attractive to older workers

Other

72%

58%

45%

42%

28%

16%

13%

3%

8%

Reasons Retirees Return to Work1

Note: n = 994. Only respondents who indicated their organization has older workers who retired from other organizations or careers before joining their organization were asked this question. Percentages do not equal 100% due to multiple response options.1 Survey question: “In your view, why have these former retirees returned to work? (Check all that apply.)”


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Note: n = 1,737.

Extent Organization Attempts to Capitalize on and Incorporate the Experience of Older Workers

To a great extent

To some extent

To a small extent

Not at all

22%

39%

24%

15%


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Organizations That Have a Formal Strategy for Retaining and Recruiting Older Workers

RecruitRetain

Yes; 4%

No; 96%

Yes; 3%

No; 97%

Note: n = 1,739 Note: n = 1,740


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Steps Taken to Recruit or Retain Older Workers

Note: n = 99. Only respondents whose organizations have a formal strategy to recruit or retain older workers were asked this question. Percentages do not equal 100% due to multiple response options. 1 Opportunities that allow near retirees to ease into retirement while allowing the organization to retain good employees.

Percentage

Offered reduced hours or part-time positions to older workers 48%

Hired retired employees as consultants or temporary workers 40%

Started flexible scheduling (e.g., telework, alternative work schedules) 37%

Created positions/redesigned positions that allow bridge employment1 30%

Offered phased/gradual retirement 30%

Provided training to upgrade skills of older workers 29%

Provided opportunities for older workers to transfer to jobs with reduced pay and responsibilities

27%

Increased training and cross-training efforts to induce older workers to stay with or join the organization

24%

Increased recruiting efforts aimed at older workers who have the skills being lost due to retiring employees

23%

Offered wellness programs to attract and retain older workers 23%


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Note: n = 99. Only respondents whose organizations have a formal strategy to recruit or retain older workers were asked this question. Percentages do not equal 100% due to multiple response options.2 E.g., at home, “snowbird” employees who work in different locations at different times of the year. 3 E.g., offering deferred retirement option plans (DROPS), which allow workers who reach retirement age to continue working while receiving contributions to a retirement fund equal to the pension benefit they would receive if they were retired.

Percentage

Asked older workers for feedback via survey or other mechanism about what would encourage them to join or stay with the organization

23%

Started remote location programs to enable workers to work at the location most convenient for them2 14%

Started job-sharing 13%

Changed health care benefits to attract and retain older workers 10%

Established alternative career tracks for older workers 9%

Have not done/do not plan to do anything 8%

Changed retirement benefits to attract and retain older workers3 7%

Created new benefits to induce older workers to stay with or join the organization 6%

Put it on the radar screen, but essentially have done nothing else 3%

Other 5%

Steps Taken to Recruit or Retain Older Workers (continued)


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Started flexible scheduling (e.g., telework, alternative work schedules)

Offered reduced hours or part-time positions to older workers*

Hired retired employees as consultants or temporary workers*

63%

57%

67%

34%

43%

33%

0.03

Very effective Somewhat effective Not at all effective

Effectiveness of Various Steps Taken to Recruit or Retain Older Workers

* 0% indicated “Not at all effective.”Note: Only respondents who indicated their organization has taken a specific step(s) to recruit and/or retain older workers were asked to evaluate the step(s) taken. Response options (i.e., steps taken) with n < 30 are not reportable (NR). Respondents who indicated “Too soon to evaluate” were excluded from this analysis.

n = 39

n = 44

n = 32


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Note: Only respondents who indicated their organization has taken a specific step(s) to recruit or retain older workers were asked to evaluate the step(s) taken. Percentages may not equal 100% due to rounding. Response options with n < 30 are not reportable (NR).

Percentage of Eligible Employees Using Each Option/Program Implemented by Organization

Offered phased/gradual retirement

Started flexible scheduling (e.g., telework, alternative work schedules)

Offered reduced hours or part-time positions to older workers

7%

4%

63%

46%

45%

13%

30%

30%

13%

19%

19%

3%

5%

2%

None 1% to 25% 26% to 50% 51% to 75% 76% or more

n = 47

n = 37

n = 30


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Demographics


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Demographics: Organization Industry


Percentage

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)


Percentage

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

Publicly owned for-profit

Privately owned for-profit

Nonprofit organization

Government agency

Other

15%

49%

17%

17%

2%


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Demographics: Organization Staff Size

Note: n = 1,011

1 to 99 employees

100 to 499 employees

500 to 2,499 employees

2,500 to 24,999 employees

25,000 or more employees

16%

35%

24%

20%

6%


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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 practices

53%

Each work location determines HR policies and practices

4%

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?


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SHRM Survey Findings: 2014 Older Workers Survey—Recruitment and Retention


• 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

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For more survey/poll findings, visit shrm.org/surveys

For more information about SHRM’s Customized Research Services, visit shrm.org/customizedresearch

Follow us on Twitter @SHRM_Research

About SHRM Research

Project lead:Karen Wessels, researcher, SHRM Research

Project contributors:Evren Esen, SPHR, director, Survey Programs, SHRM ResearchJennifer Schramm, GPHR, manager, Workforce Trends and Forecasting, SHRM ResearchYan Dong, intern, SHRM Research

Copy editor:Katya Scanlan, SHRM Knowledge Center


http://www.shrm.org/surveys

http://www.shrm.org/customizedresearch

http://twitter.com/SHRM_Research

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Founded in 1948, the Society for Human Resource Management (SHRM) is the world’s largest HR membership organization devoted to human resource management. Representing more than 275,000 members in over 160 countries, the Society is the leading provider of resources to serve the needs of HR professionals and advance the professional practice of human resource management. SHRM has more than 575 affiliated chapters within the United States and subsidiary offices in China, India and United Arab Emirates. Visit us at shrm.org.

About SHRM


http://www.shrm.org/

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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/

About the Sloan Foundation


http://www.sloan.org/

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