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THE AGING AMERICAN WORKFORCE.
  Term Paper ID:30677
Essay Subject:
Examines consequences on American society of older workers.... More...
15 Pages / 3375 Words
12 sources, 30 Citations, APA Format
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Paper Abstract:
Examines consequences on American society of older workers. Discrimination. Aging of baby boomers; retirement and ramifications for the economy. Benefits of hiring & retaining older workers. Compensation/ benefits packages. Lack of available younger workers. Effect on global eonomy of an older workforce. Challenges for employers. African American older workers.

Paper Introduction:
Introduction The baby boomers are perhaps the most studied generation in the history of the United States. This first post-World War II generation, larger than any generation before it, has shaped America's attitudes toward clothing, war, race relations, music and family with greater influence than any other group. Some of its members fought the Viet Nam War at the same time that others protested the same war. This is the generation that gave rise to the terms "hippie," "yuppie," and "dink." This generation has also benefited from a panoply of programs, government-sponsored and private, including Head Start for its children, Medicare for its parents, and 401(k) funds offered through employers. It is a generation generally considered better off than its parents, and as it has moved through life's stages, it has changed the nation at

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This means that vision problems can be corrected before theybecome serious, and that employees are likely to have access to theprescription eyewear they need. Tenure increases as the average age of the workforce increases; olderworkers remain at their jobs longer than younger workers. 57). In 197 , 83 percent of thosebetween the ages of 55 and 64 worked full-time. HRMagazine(45), pp. Even when individuals are convinced that they have been subject to agediscrimination, there is a general reluctance to bring the matter to theattention of the EEOC or other authorities. Johnson (anAfrican-American), alleged that GM engaged in racial harassment, racediscrimination, age discrimination and retaliation. In addition, older workers are oftenwilling to participate in job sharing programs where younger workers mightbe reluctant to do so due to an expectation that such programs do not leadto promotions. Conclusion The baby boom generation is getting older, and it is changing the waythat American companies view their workforce. As employers seek to attract the best workers and become employers ofchoice, they seek to put together benefit packages which are bothattractive to job seekers and cost-effective to the organization. H. Since older workers also are likely to have greater need for dentalinsurance as well, organizations may find it cost-effective to offer bothdental and vision plans as part of a package through which employees havethe option of using the benefit for either. By 2 , this figure wasexpected to drop to only 68 percent. Specifically, decisions regarding hiring, firing,promotion, layoffs, compensation, job assignments and training cannot bemade based on age according to ADEA. Reynolds workers allege racediscrimination. While problems can arise with disgruntled older workers,employers generally acknowledge that older workers can serve as mentors toyounger employees and maintain continuity from generation of workers to thenext. Benefits of Hiring & Retaining Older Workers Although older individuals are sometimes thought of as frail andfeeble, unable to focus on tasks for long periods of time, there areexamples of older workers who have been successful through the centuries.Michelangelo was appointed chief architect of St. Statements such as "we cannot afford you" and "you are over-qualified" may be other ways of indicating age discrimination, however(Ormsbee, 2 1, p. Getting ready for older workers.Workforce (8 ), pp. 57). Such a plan is importantfor all organizations at any time, but becomes especially important whenthere are critical factors at work affecting the employment pool. Today, the baby boomers are approachingretirement age, and there are significant ramifications for the economy asa whole, individual companies, and for the baby boomers themselves. As theAmerican population ages, there is a growing tendency to move away fromtraditional migration patterns of African-Americans to the central citiesand so-called "white flight" to the suburbs, a demographic shift thatcharacterized the period following World War II. Any organization which loses not only 2 percent of its workforce, but themost experienced 2 percent of its workers, over a five-year period is indanger of losing its competitive edge and its ability to performeffectively. It is also likely that as employees remain in the workplace longer,there will be a greater incidence of illness resulting from exposure tohazardous materials in the workplace. However, provingthat age discrimination is the reason that a prospective employee is nothired, or not promoted, or not interviewed, can be difficult, and evidenceis largely anecdotal (Ormsbee, 2 1, p. (1998, August 31). 42-46. American companies are not the only ones facing the challenge of anolder workforce. 24. This can improve productivity in theworkplace as employees are able to see more clearly. Mazurkiewicz, G. BrookingsReview (18), pp. 1 ). The New urban demographics. Employee tenure increasing asworkforce ages: Study. An Alternative to early retirement.The Financial Times, p. According to the American Association of RetiredPersons (AARP), more than 17 million workers in the employment market in2 were over the age of 55, and as that number increases, some expect theamount of age discrimination cases to increase, as well (Ormsbee, 2 1, p.4 ). 56-6 . 2 ). The African-American Older Worker African-American workers face the same problems as other employees asthey age. While there is some reluctance to hire olderworkers, particularly among companies with young managers who may fear thatolder workers are either seeking their own jobs or will require excessivetraining to get the job done, some companies have recognized that there canbe significant benefits to hiring older workers (Albrecht, 2 1, p. Automotive News (75), p. Maitland, A. Discrimination based on age was made illegal by the Age Discriminationin Employment Act (ADEA) of 1967 and the Older Workers Benefit ProtectionAct (OWBA) of 199 . Sawyers, A. Older employees (those aged 55 and older) seek a positive workenvironment and useful information, meaning that they are likely to remainmore loyal to an organization rather than change jobs merely for more money(Albrecht, 2 1, p. Employers are thus advised tomaintain safe work areas in order not only to prevent workers' compensationclaims, but also to ensure that older workers do not miss time from workdue to injury (Hays, 2 1, p. Caudron, S. (1997, October 2 ). (2 1, February). This is the generation that gaverise to the terms "hippie," "yuppie," and "dink." This generation has alsobenefited from a panoply of programs, government-sponsored and private,including Head Start for its children, Medicare for its parents, and 4 1(k)funds offered through employers. Risk managers cope with aging workforce.National Underwriter Property & Casualty-Risk & Benefits Management (1 5),pp. Challenges for Employers One of the most obvious challenges to employers is balancing theexperience and knowledge that older workers bring to the job with the costassociated with having older workers on the payroll. Thenumber of employees aged 5 and older increased 21 percent from 199 to1997; this was at a time when the overall number of employees in theworkforce increased by only nine percent (Mazurkiewicz, 1998, p. At the same time that the baby boomers are getting older and leavingthe workforce, there are fewer younger workers available to replace them.Thus, the baby boomers are both the single largest pool of workersavailable, and the group that is aging and retiring in today's market. 1 ). 119-121. As today's workforce ages, employers must confront the challenge ofhaving large numbers of experienced employees retiring at the same time.For example, it is estimated that approximately 2 percent, or 281, federal employees, will retire between 2 1 and 2 5 (Tobias, 2 1, p. Such a plan does have financial coststo the organizations, and may not be practicable in all corporateenvironments, but it does offer an alternative to the drain of olderworkers. Introduction The baby boomers are perhaps the most studied generation in thehistory of the United States. (2 1, September). However, the issue of discrimination in the workplace can bemore problematic for these workers since it can be difficult to distinguishwhen age discrimination occurs when race discrimination is also apossibility. 2-3. (1998, December 14). This isparticularly true among those workers termed "optimal agers," which areworkers aged 55 to 72 who score as well or better than workers in the 4 son cognitive ability tests (Mazurkiewicz, 1998, p. In the case of discriminationthat occurs at a current job, employees may fear recrimination, and may nothave the financial resources for a protracted legal conflict. Aworkforce plan identifies the jobs that will need to be filled over a givenperiod of time, the skills needed for those jobs, and whether those skillsare available from within the organization or whether they will have to bebrought in from the outside (Tobias, 2 1, p. 58). Under such a program, theorganization might pay reimbursement costs for either dental or visionbenefits, or the organization might partially fund the premiums. 27). By hiring older workers specifically to address this need, thecompany found that it could have a steady pool of on-call employees whowere available over long periods of time because the job fit theirlifestyle as well as their economic needs (Albrecht, 2 1, p. Business Insurance (32), pp. 2 -25. I can see clearly now. There can be significant costs associatedwith older workers, including accommodations for physical limitations andhigher insurance premiums. That suit, brought by William S. 1 ). 16-18. Age discrimination cases declined during the 199 s, accordingto the Equal Opportunity Employment commission, but began increasing againin 2 . 6. As employers face the challenge of finding qualified workers, they mayfind that the same workers who are leaving the workforce-the baby boomers-are also looking for different employment, either part-time work, or workin a different field than they have spent the rest of their careers. Changes in the workplace structure toaccommodate these employees may also be necessary. The elderly population ofthe county is still predominately white, but the working age population isonly approximately one-third white. This may meanthat safety labels are produced with large print and that telephones areequipped with volume controls. 41). Thisresearch considers the aging American workforce and its consequences forsociety as well as its consequences for African-Americans. 2). 16). As a result, there is less strain on older workers who workshifts since they are able to transition to day jobs that are lessstressful (Maitland, 2 1, p. 15). For manyyears, vision care insurance plans were either not available to employees,or they were available through employee-only contributions-meaning thatalthough companies made such plans available to employees, they did notfund the plans at all. Peter's when he was 71.Adolph Zukor ran Paramount Studios until he was 91. This, in turn, will require treatment, but as cancer treatmentmethods improve, it is more likely that these workers will be able toreturn to their jobs after some time, or that they will be able to continueworking while going to treatment. Instead, traditionalnotions of city-suburb, black-white profiles do not recognize the role ofimmigration, and of migration patterns within the United States itself(Frey, 2 , p. 42). At issue aremanagement positions that the men allege they were promised before theywere hired, but that never materialized. 43). 25). Directions for Future Research Although the literature offers a significant amount of informationabout the benefit of hiring and retaining older workers, and also detailsthe costs associated with older workers, there is considerable lack ofinformation regarding the specific issues that confront African-Americanolder workers. 2).Employers must therefore find ways to balance the benefits of olderworkers, including a strong work ethic, with the cost of having an olderworkforce. References Albrecht, D. Air conditioning, Heating & Refrigeration News,p. 119). According to one recent study, employees under 35 years of age rankperquisites and salary as the top two job requirements sought fromemployers. This changes the benefitand compensation programs for older workers around the world, as well,since there is now increased information available about different benefitsin different countries and companies (Maitland, 2 1, p. Mich. 42). In this way, employers must find waysto attract and retain older workers if they are to continue to fill theirvacancies and maintain their competitive position (Mazurkiewicz, 1998, p.1 ). At the same time, additionalresearch should be conducted to determine whether there is disparity in theincomes of older African-American workers, and whether there aredifferences between the living situations of African-American older workersand other older Americans (for instance, whether one group is more likelythan another to live with family members, on their own, or in a groupenvironment). 15. Older workers oftencommand higher salaries and wages than their younger counterparts,particularly when they have been with the same organization for an extendedperiod of time. 1 . Some of its members fought the Viet Nam War at the sametime that others protested the same war. (2 1, February 26). Where the globalworkforce might once have been considered a solution to the problem sinceworkers from one country could migrate to other countries where there arejobs, the shrinking pool of younger talent means that employers around theworld are taking steps to retain their workers. Workforce(76), pp. European governments and companies have long engaged in practices thatencourage early retirement, but the result is a drain on the nation's laborpool at a time when jobs are left unfilled due to a lack of qualifiedcandidates. Within metropolitan areas, older populations who areless well off than their peers will settle closer to the center of theregion while those older persons who have more financial resources will belocated on the periphery of these areas (Frey, 2 , p. 12 ). 27). In thisway, the aging workforce will be changing the benefits that all employeesreceive through the workplace. Aside from attracting good employees, offering a vision care plan aspart of a benefits package also means that employers can help ensure thatemployees have their vision checked on a regular basis. As a result, trade unions in Europe are working with companiesto pay older workers to stop working shifts in order to avoid job burnout.By contributing to a savings account for shift workers over the course oftheir careers, companies are making it possible for older workers to changeto day shifts without losing the pay differential that makes shift workattractive. This can greatly improvethe productivity of workers who might otherwise simply not wear theirprescription lenses if they also had to wear protective goggles (Woodward,2 , p. 6). The work structure itself may have tochange in order to accommodate more breaks, and some employers may want tobuild more washrooms to accommodate older workers (Hays, 2 1, p. T. But there are other challenges facing companies as the workforce ages. Inaddition, since many of today's older workers are healthier than workers ofthe same age in the past, many employers are recognizing the advantage ofkeeping experienced older workers on the job in order to provide companieswith the experience and personal contacts that can be invaluable. (1997, December). As the workforce aged, however, the number ofworkers requiring prescription eyewear also increased with the result thatemployees are increasingly attracted to those companies that offer visionplans as part of their benefits package (Woodward, 2 , p. The younger population with school-aged children will beconcerned with a county that provides good schools and affordable housing,while older white residents of the county are likely to be interested inhealth and social services appropriate to the needs of those their age(Frey, 2 , p. America's aging workforce islargely ignored problem. Early retirement continues tooffer strong allure, however, since the number of those over age 55 whohave retired has increased in recent years. Los Angeles County offers an example of this type of migrationpattern. M. Ormsbee, J. In addition, most states havespecific laws forbidding discrimination based on age. Job notices and announcements cannotbe based on age, either, although an exception is made for companies thatcan demonstrate a legitimate reason for specifying a particular age for aparticular job. Bothdental and vision coverage is generally available through the company'sgeneral health care coverage; such coverage can also be provided through amanaged care plan or direct reimbursement (Woodward, 2 , p. Because older workers may already have pension or retirement programsfrom other employers, they may be interested in part-time or seasonalemployment rather than full-time work. The baby boomers are sometimes referred to as the "pig in the python,"meaning that the largest generation in American history is slowly makingits way toward advanced age. It is expected by some that suburbsof major metropolitan areas and regions of the country that do not have alarge influx of immigrants will be the geographic locations where babyboomers will retire. There are benefits to having this employee loyalty within anorganization. An age-old story. As employeescontinue to work past the ages at which their parents retired, and asdetection methods improve, there will be increased detection of cancer inworkers. It is also unclear whether African-Americansface different challenges than other older American workers since agediscrimination is often coupled with racial discrimination. The immigrant minorities are generally recognized as having differentmigration patterns than baby boomers, regardless of whether the babyboomers are white or African-American. Older workers are ideal, for example, at workingin situations that require an on-call mode rather than a day-to-day job.In a tight job market, one firm in Oregon processes mail by hand for topclients. As the baby boomers age, they continue to make up the largest singleage group of the workforce. (2 , Summer). Years of outmigration by white residents have been coupled withyears of in-migration by new ethnic populations. More than 16, reports of age discrimination were filed withthe commission in 2 ; this is a substantial increase from the 14, reports filed in 1999. The olderof the two, who is 46, also alleges age discrimination. At the same time, the EEOC also monitors company requestsfor ages prior to employment in order to ensure that the information is notused to discriminate against job candidates. Health care costs increase for older workers, as well. In order to meet this challenge successfully, Tobias recommends thatorganizations put a workforce plan into place. In addition, older workers have "diminished vision, hearing andbladder capacity" that employers should take into account. Beyond discrimination, there are other issues confronting African-Americans that separate them from other older American workers. court backs GM in bias case.Automotive News, p. 119). Hays, D. 17).These factors will change the insurance benefits offered by companies asemployers seek to control costs and still offer insurance benefits to theiremployees, and the ramifications will affect all workers, not just olderemployees, since benefits are offered to employees as a whole. Frey, W. Woodward, H. An Aging workforce: A Time ofopportunity or a time of calamity? At the same time, older workers use more health carebenefits than younger workers, contribute more money to 4 1(k) and otherretirement plans that might be subject to employer matches, and are able tocontribute more-and withdraw more-from pension plans (Szalai, 1998, p. (2 1, April 3 ). Workers who have avision plan are likely to follow a regular vision care program, whereasworkers who do not participate in such a plan may not have regular visioncheck-ups. Tobias, R. In this case, thevarious courts involved did not directly address the issue of agediscrimination, but instead focused on the racial overtones of the case.This is often the situation when allegations charge more than one type ofdiscrimination since age discrimination can be difficult to document(Freedman, 1997, p. Boomers rock the system. It should therefore not be surprising that the baby boomers are nowabout to remake the face of the workforce as they continue to age andcontinue both to work longer, and retire earlier, than previous generations(Caudron, 1997, p. With the workforce planproviding guidance, companies can then make decisions about recruiting newemployees and transferring knowledge from employees who will be leaving theworkforce to the newer employees so that organizational memory ismaintained. 16). Through each of its life stages, the babyboom generation has influenced American society, including popularizingrock and roll music and making casual dress in the office a commonplaceevent. When an older work is injured, regardlessof whether the injury occurs on the job or not, the recovery time isgenerally greater than with younger workers. 24). There is a potentialemployee drain that companies must face as baby boomers begin retiring inrecord numbers, and some employers are recognizing that older workers canbe brought back as part-time or contract workers who have a strong workethic and high sense of loyalty. This can be of particular benefitto companies in the retail and service industries that often have highturnover rates in these positions. 16). InfoWorld, pp.4 -44. In addition, older workers are ideally suited to project-oriented environments and independent contract situations where benefitsare not as critical as they might be to younger workers with young children(Mazurkiewicz, 1998, p. In a survey conducted by the University of Michigan in the late 199 s,three-quarters of those workers in their 5 s indicated that they would liketo continue to work on a reduced basis. The Public Manager (3 ), pp. In a studyconducted during 1995 through 1997 by Watson Wyatt Worldwide, the averagejob tenure increased to 13.4 years from 12.6 years earlier in the 199 s.The number of employees remaining with an organization for at least adecade increased from 54.5 percent to 58.6 percent, and the number ofemployees remaining with the same employer for 2 years or more increasedto 26.2 percent, up from 25.6 percent earlier in the 199 s (Szalai, 1998,p. Other cases of age discrimination that have garnered nationalattention have been difficult to prove. Additionalresearch needs to be conducted to address the issues that are unique toAfrican-American older workers. Freedman, E. However, older workers have a lower frequency ofclaim than younger workers, so the lower overall number offsets the highercost (Hays, 2 1, p. Grandma Moses beganher painting career when she was well advanced in years, and there areother numerous achievements by older individuals that are often cited asproof that older workers can be contributing members of society (Caudron,1997, p. G. The population of children ispredominantly Hispanic with a multitude of other racial and ethnic groupsrepresented. 15). Asbestos exposure is already a well-known risk, but there are likely to be illnesses resulting from exposure toother materials that are only now being identified (Hays, 2 1, p. (2 1, June 26). 24). Reynolds and Reynolds has put aformal diversity program into place, and has even appointed a vice-president in charge of diversity, but the suits were filed after thisannouncement (Sawyers, 2 1, p. It is a generation generally consideredbetter off than its parents, and as it has moved through life's stages, ithas changed the nation at each. In a pending case, two employees of Reynolds and ReynoldsCompany, which supplies information management services to automobiledealers, filed racial discrimination suits against the company. In 1997, for example, the MichiganCourt of Appeals upheld a lower court's decision to dismiss a lawsuitagainst General Motors. While the cost of workers' compensation claims may average over thelong-run between older workers and younger workers, there are risksassociated with older workers that simply do not exist, or are lessprofound, with younger workers. In addition, workersmay gain access not only to protective eyewear when necessary, but toprescription protective eyewear when appropriate. This first post-World War II generation,larger than any generation before it, has shaped America's attitudes towardclothing, war, race relations, music and family with greater influence thanany other group. Szalai, G. Additional research should be conducted to determine theeffect of the geographic placement of older African-Americans on theirability to find and keep jobs as well as on discrimination issues thatmight be unique to African-Americans. Formal andinformal communication channels are communicated from older workers toyounger workers, and the organization's memory is perpetuated through olderworkers. Older workers can train new employees not only in the jobfunctions, but in the culture of the organization, as well. Older workers, defined as those aged 55 and older, are likely to havehigher workers' compensation claims than younger workers when individualclaims are considered. When the agediscrimination occurs at potential employers, it can be more difficult todemonstrate that the essential factor was age discrimination and not someother factor. 27-32. Today's global economy means that the aging workforce isa worldwide phenomenon, and one that is affecting European and Japanesecompanies at the same time as American companies. (2 1, August 13). (2 , September). Discrimination Against Older Workers Despite the benefits of hiring and retaining older workers-experiencein the field, strong work ethic, and loyalty to employers-agediscrimination is a problem for many individuals over 4 who are seekingemployment.

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