The nonpartisan Urban Institute publishes studies, reports, and books on timely topics worthy of public consideration. The views expressed are those of the authors and should not be attributed to the Urban Institute, its trustees, or its funders.

The text below is an excerpt from the complete document. Read the full paper in PDF format.

Abstract

As the U.S. population ages and the number of people reaching traditional retirement ages increases, employers need to do more to attract and retain older workers, many of whom are highly experienced, knowledgeable, and skilled. Successful approaches include offering formal and informal phased retirement options and creating flexible work arrangements, such as part-time work, flexible schedules, job sharing, telework arrangements, and snowbird programs. Federal, state, and local governments, as well as nonprofit organizations and post-secondary educational institutions, help older workers find employment and secure job training. They also educate employers about the value of older workers.

Executive Summary

As the U.S. population ages and the number of people reaching traditional retirement ages increases, employers may need to do more to attract and retain older workers, many of whom are highly experienced, knowledgeable, and skilled. To attract older workers, however, employers may need to rethink traditional workplace practices. Many older people prefer part-time work so they can enjoy more relaxed lifestyles and pursue leisure activities. Others need flexible schedules to accommodate family care responsibilities or their own physical limitations. Many older people can afford to cut back their work hours only if they have access to employer retirement benefits. Policies that prevent part-time workers from collecting retirement benefits from their current employer often force older workers to leave their career job and work reduced schedules elsewhere, squandering firm-specific skills accumulated over long careers.

Low employment rates at older ages may also result from difficulties matching older job applicants with appropriate employers, or from employer perceptions—real or imagined—that older Americans cannot meet their workforce needs. Some older people may lack the proper mix of skills required in high-growth industries. Some employers may be reluctant to hire older workers because they fear they are too costly or because employers do not appreciate the attributes many older workers embody, including maturity, experience, and dependability. Governments, nonprofit organizations, and educational institutions can promote employment at older ages by training older people, helping them find employment, and combating negative stereotypes about older workers.

This report, commissioned by the U.S. Department of Labor's Employment and Training Administration to support the work of the Taskforce on the Aging of the American Workforce, describes current strategies used by employers to help attract and retain older workers and by nonprofit organizations, educational institutions, and the government to facilitate their employment.

Current Employer Strategies to Hire and Retain Older Workers

Existing employer efforts to improve hiring and retention of older workers include creating flexible work arrangements and offering formal and informal phased retirement options.

(End of excerpt. Read the rest of the Executive Summary and the complete report in PDF format.)

The nonpartisan Urban Institute publishes studies, reports, and books on timely topics worthy of public consideration. The views expressed are those of the authors and should not be attributed to the Urban Institute, its trustees, or its funders.

Usage, posting and reprint of materials on the UI web site:

Most publications may be downloaded free of charge from the web site in PDF format. This information may be used and copies made for research, academic, policy or other non-commercial purposes. Proper attribution is required.

Copyright of the written materials contained within the Urban Institute website is owned or controlled by the Urban Institute. Posting UI research papers on other websites is permitted subject to prior approval from the Urban Institute—contact paffairs@urban.org.

If you are unable to access or print the PDF document please contact us or call the Publications Office at (202) 261-5687.