The U.S. has been experiencing a significant shift in its workforce since 2011, when Baby Boomers began reaching retirement age. With 1 in 6 now age 65 or older, the share of older workers has risen significantly.
While a mass exodus of Baby Boomers has been predicted through 2030, the Bureau of Labor Statistics now points to a return-to-work trend for many in this category. In fact, 27% of people aged 65 to 74 actively seek employment, making them the fastest-growing segment of the workforce.
Given this trend, employers should prepare to optimize the workplace to attract and retain these valuable sources of experience and knowledge. To tap this talent goldmine, it is important to create a culture that prioritizes inclusivity, diversity and equal work opportunities while leveraging older workers’ unique skill sets.
Considerations for Optimizing Talent in an Aging Workforce
- Review hiring practices to remove potential barriers
The emphasis on “skills-based hiring” practices today has the potential to open doors to older job candidates. Prioritizing soft skills such as communication, listening, openness to new perspectives, and others can be important to optimizing the experience of workers aged 65 and older. For example, when comparing younger adults (age 20–31) with older adults (age 65–80) on 12 tasks, researchers found older individuals were consistently more productive and reliable due to having “learned strategies to solve the task,” among other advantages.
However, an area of potential concern is the use of AI screening tools in the hiring process. With a growing number of older employees in the workplace, it’s critical to be mindful of potential bias and discrimination before it occurs. In particular, it’s important to avoid discounting a job candidate over the age of 40 based on age, as this can put your business in violation of the Age Discrimination in Employment Act (ADEA).
For example, some filtering systems can eliminate people beyond a particular age or with skills that may seem outdated or irrelevant. Without realizing it, employers can overlook talent that on the surface wouldn’t make the cut. Human involvement in the screening process is still important to avoid any potential age discrimination or simply losing out on viable candidates for a job.
- Stay informed of employment and benefits regulations
Keeping up with relevant regulations such as the Family Medical Leave Act (FMLA) and evolving state-paid leave laws is a key part of compliance and is especially important in an aging workforce. With only a quarter of newly disabled older workers in their 50s accommodated by their employers in some way following the onset of a disability, this can mean exposure to the potential loss of a valuable employee or, worse, legal action.
Through workplace accommodations, as legislated by the ADA, older workers can return to their jobs with the assistance of adaptive equipment and technologies. These can include voice-activated devices, screen text enlargement, and deaf telecommunication (TTD) improvements, among other tools and support, many of which are affordable. Ensuring your workplace provides these accommodations positions your company to leverage talent that might be otherwise unavailable.
- Offer training and learning opportunities
The nature of work is evolving with the adoption of advanced technology powered by artificial intelligence (AI) and machine learning. Roles that have typically been repetitive or manual now benefit from automation, opening the door to new opportunities for human workers.
For those nearing retirement age, providing them with the opportunity to learn new skills can keep them engaged and remaining in the workforce. Reskilling is a trend that employers can embrace to ensure these workers are incentivized to learn new systems, processes, and technologies. Looking for transferable skills that indicate a propensity for a new task or job can be the key to leveraging this untapped talent.
- Understand compliance for Medicare-eligible workers
Those who are 65 or older are eligible for Medicare benefits. Should they return to or remain in the workplace, employers should be clear on how group health benefits coordinate with Medicare to remain compliant.
Employers with 20 or more employees are required to provide group health coverage to Medicare-eligible workers, and this plan will be the primary payer. Older employees at smaller companies are required to enroll in Medicare if they are covered by the group health plan. Either way, should an employee enroll in Medicare, an employer cannot consider their entitlement when providing group benefits.
However, the ADEA does allow employers to reduce benefits to older workers in certain limited circumstances. This applies to cases where they can balance the costs of providing life and health benefits that become more expensive or “offset” other benefits they may receive, such as Medicare.
Preparing for the future of an aging workforce
Understanding how to optimize the talent found in an aging workforce while ensuring compliance with hiring and employment laws is no small task. However, the payoff can be significant as companies struggle to fill roles with skilled workers. At Brown & Brown Absence Services, our consultants offer guidance on how to support workers requiring accommodations, and our AEVO representatives are available to answer questions about Medicare benefits. Contact us to learn more today.
