2014 Aging Workforce Survey: Recruiting and Retention

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

• 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).

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Key Findings


• 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%).

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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.

8%

7%

4%

27%

26%

24%

24%

26%

31%

41%

42%

41%

Recruiting practices

Retention practices

General management policy/practices

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


33%

24%

14%

13%

13%

12%

11%

8%

7%

6%

4%

3%

2%

1%

1%

3%

54%

Employee referrals

Networking

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

Employment agencies

Use of current older workers as recruiters

Social media

Temporary firms

Executive search firms

Specify older workers are welcomed & encouraged to apply

Government-based employment programs

Churches

Recruit through local senior citizen community groups

Older workers’ job fairs

Newsletters (e.g., AARP Bulletin)

Retirement communities

Other

We do not actively recruit older workers

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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.


12

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

74%

49%

28%

28%

10%

9%

8%

3%

3%

2%

1%

11%

LinkedIn

Facebook

Professional or association social networking site

Twitter

YouTube

SHRM Connect

Google+

Foursquare

Pinterest

MySpace

Second Life

Other

1


13

9%

10%

46%

48%

45%

42%

Exempt older workers

Nonexempt older workers

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

RecruitRecruitRecruitRecruit

RetainRetainRetainRetain

17%

17%

61%

59%

21%

24%


Non-exempt older workers


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


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25%

22%

22%

7%

25%

17%

46%

44%

47%

45%

46%

41%

29%

34%

31%

48%

30%

41%

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


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


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.

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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%


16

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.

25%

22%

33%

23%

24%

19%

Labor, low-skilled

Labor, skilled


Salaried individual

contributor/professional

Management

Executive

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


Unable to offer

flexibility in work

location

17

Unable to offer

work hour

flexibility

Unable to offer

career

flexibility

34%

39%

33%

28%

28%

23%

Labor, low-skilled

Labor, skilled


Salaried individual


Management

Executive

34%

37%

34%

31%

31%

23%

27%

30%

27%

25%

28%

20%

(n = 177)

(n = 270)

(n = 103)

(n = 316)

(n = 340)

(n = 310)





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

31%

24%

28%

23%

21%

17%

Labor, low-skilled

Labor, skilled


Salaried individual


Management

Executive

60%

56%

48%

54%

47%

46%

15%

13%

20%

17%

17%

17%

(n = 177)

(n = 270)

(n = 103)

(n = 316)

(n = 340)

(n = 310)





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.

66%

34%

Yes

No


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.

1%

90%

5%

2%

1%

1%

0%

1-20%

21-40%

41-60%

61-80%

81-100%11%

43%

46%

Part-time

Full-time

A mix

72%

58%

45%

42%

28%

16%

13%

3%

8%

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

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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.)”


Note: n = 1,737.

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Extent Organization Attempts to Capitalize on and

Incorporate the Experience of Older Workers

22%

39%

24%

15%

To a great extent

To some extent

To a small extent

Not at all


22

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


23

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. 1Opportunities that allow near retirees to ease into retirement while allowing the organization to retain good employees.

PercentagePercentagePercentagePercentage

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

organization24%

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

employees23%

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.


Asked older workers for feedback via survey or other mechanism about what would encourage them

to join or stay with the organization23%

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)


63%

57%

67%

34%

43%

33%

3%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*

Very effective Somewhat effective Not at all effective

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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


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).

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Percentage of Eligible Employees Using Each Option/Program

Implemented by Organization

7%

4%

63%

46%

45%

13%

30%

30%

13%

19%

19%

3%

5%

2%

Offered phased/gradual retirement

Started flexible scheduling (e.g., telework,

alternative work schedules)

Offered reduced hours or part-time positions

to older workers

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

n = 47

n = 37

n = 30


27

DemographicsDemographicsDemographicsDemographics


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Demographics: Organization Industry



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)



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


31

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


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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?


33

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

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

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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


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

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

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United Arab Emirates. Visit us at shrm.org.

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About SHRM


36

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


Recruiting & HR

2014 Aging Workforce Survey: Recruiting and Retention