Lexington, KY - Workplace flexibility is on the rise and can be a valuable tool to retain your organization’s older workforce. Nationally and in Kentucky, people are working longer than ever before because of increased life expectancy and the poor economy. Nearly one in five people over 65 is working, and 70 percent of workers between the ages of 45 and 75 plan to work into retirement — or possibly never retire.
Thankfully, research conducted by the Institute for Workplace Innovation (iwin) and others suggests that older workers — those ages 50 and over — have many positive characteristics, such as good work ethics, loyalty to the company, dependability, productivity and strong customer service. In addition, older workers are more engaged, committed and satisfied with their work, and they have lower turnover rates than younger workers do. Employing older workers can make good business sense.
Older workers who have been in an industry for many years accrue valuable experience, skill and knowledge. When an older worker leaves the organization or retires, it can lead to a tremendous loss of institutional knowledge (i.e., “brain drain”). As one participant in iwin’s Kentucky Aging Workforce Study explained, “Their knowledge is like a library, and when we lose someone, it is a huge gap to fill.” Thus, it is essential for organizations to employ these valuable workers as long as possible.
Unfortunately, older workers face an increasing number of challenges that affect their work. Today’s older workers have more dependent care commitments than in the past, because as the number of people living well into their golden years increases, the number of people caring for them increases, too. Most eldercare is provided by family members, the majority of whom are employed. Thus, many employees over the age of 50 require time off from work to care for their parents, to transport them to medical appointments and to transition them to alternative housing.
Older workers are increasingly becoming the primary caregivers for their grandchildren, too. U.S. census data reveals that more than 10 percent of Kentucky children live in homes owned by grandparents or other relatives. These grandchildren require childcare, transportation to and from school, medical care, and a caregiver to stay home with them when they are sick. Although many organizations have policies in place pertaining to employees’ children, few have policies pertaining to grandchildren and elderly parents.
Increased health problems pose another challenge for older workers, who are more prone to chronic health problems (e.g., diabetes, heart disease, cancer) as well as acute health problems such as back injuries, falls and hearing loss. These illnesses and injuries require prevention, treatment, medical appointments and, in some cases, hospitalization and recovery time. Older workers need time to manage these obligations, many of which take place during standard business hours.
So what can be done to assist our valuable older workers with these challenges? Workplace flexibility is the answer. Flexible work arrangements (FWAs) allow employees to adjust when, where and how they work, therefore enabling them to balance their work lives and personal lives in a way that reduces stress and enhances well-being. FWAs include job sharing, part-time work, phase-down retirement programs that allow employees to phase into retirement gradually, telework (working remotely from home or another location), career leaves, paid time off to care for dependents, and shifting to different jobs within an organization. FWAs also include having some control over your day-to-day work schedule.
Flexibility has a number of important benefits for employees and organizations, such as enhanced employee recruitment, retention, engagement and productivity and reduced work-life conflict and turnover. Flexibility allows older workers to manage their personal and family obligations while remaining employed. Although flexibility has been found to be a major predictor of employee engagement for all employees, it is an even bigger predictor for older workers. A recent national survey of CEOs, CFOs and human resources executives revealed that half of them use flexible work schedules as a strategic management tool to retain older workers.
Central Baptist Hospital does. Lynette Walker, executive director, human resources, explained, “Through our work with the Institute for Workplace Innovation, we have gained new information about our workforce, particularly older workers. We are designing programs like flexible scheduling, seasonal employment and job sharing to meet the needs of our workforce in all stages of their careers. Efforts such as these have enabled us to have a turnover rate below national standards for health care. We receive compliments daily from patients who appreciate the compassion and caring of experienced employees, so employee retention is good for us all.”
Patrice Blanchard, associate state director for AARP Kentucky, said, “In my experience, it’s employers who reap the majority of benefits of workplace flexibility. It shifts the whole company culture toward more creative ways to solve problems, helps all employees think of new and streamlined approaches to work and creates very loyal employees.”
Workplace flexibility has become more important to older workers than ever before. In order to take care of their families and their health, older workers need flexible work options such as being able to alter their work hours, work part-time, and work remotely. So it would behoove organizations to embrace flexibility and test out various flexibility options with their employees. Your older workers will appreciate it, and so will your bottom line.
To find out more about workplace flexibility and what it can do for your business, visit www.iwin.uky.edu.
Meredith Wells-Lepley, Ph.D., is research associate at the Institute for Workplace Innovation (iwin) and co-principal investigator of iwin’s Kentucky Aging Workforce Study.