Retaining older employees is a smart business move
| Pages | 246-249 |
| Published date | 14 November 2016 |
| DOI | https://doi.org/10.1108/SHR-12-2015-0097 |
| Date | 14 November 2016 |
| Author | Robert Perrin |
| Subject Matter | HR & organizational behaviour,Employee behaviour |
Retaining older employees is a smart
business move
Robert Perrin
Robert Perrin is President
and CEO at the Magellan
Associates, Buffalo
Grove, Illinois, USA.
Abstract
Purpose –This paper aims to warn that the short-term cost-cutting measure of laying off older
employees can result in long-term problems. It stresses the value that older employees can add to
organizations and offers insights on what employers should consider when trying to retain and attract
older employees.
Design/methodology/approach –The paper combines the personal experience of a consultant
whose employees are all over the age of 50 bolstered by surveys noting what older employees want and
expect in the workplace.
Findings –The paper concludes that older employees help companies save money by sharing their
wealth of experience and helping younger employees avoid mistakes they have made or witnessed in
their own careers. The paper argues that to retain and attract the best older employees, companies
need to be flexible, provide good compensation and offer work that is interesting and meaningful. Just
like younger employees, many older employees want companies that provide time-off for family
commitments and offer opportunities for advancement.
Originality/value –This paper goes beyond detailing the value of older employees, in terms of
knowledge, loyalty and connections and offers tips on how to attract and retain older employees from
someone who successfully does so in his own business.
Keywords Talent management, Older workers, Human capital, Flexible work schedules,
Working past retirement
Paper type Viewpoint
When the recession hit at the end of 2007, large numbers of baby boomers were
handed their pink slips. Many of them had been with their employers for years
and, as a result, were at the top of their pay grades.
But, simply scaling back on your workforce based on numbers can be a huge mistake.
While dumping higher-paid workers might seem like a great cost-saving measure in the
short-term, in the long-term, it can prove detrimental. There is no substitute for experience.
When older employees leave, they take their knowledge with them. Study after study shows
that mature employees offer many positive qualities besides expertise, including
sophisticated communication skills, stronger professional and client networks and solid
work ethics.
In a March 2, 2015 article, Money magazine trumpeted “The Suddenly Hot Job Market for
Workers Over 50”. It cited an increasing number of companies with internships for older
workers. It noted other companies that actively sought out older employees, giving the
example of a global bank that was looking for workers over age 50 to train as loan officers
(Kadlec, 2015).
At my own company, older employees are not only valued, they make up the bulk of our
work force. My consultants are all older than 50 years old, and I find that our clients value
their expertise.
PAGE 246 STRATEGIC HR REVIEW VOL. 15 NO. 6 2016, pp. 246-249, © Emerald Group Publishing Limited, ISSN 1475-4398 DOI 10.1108/SHR-12-2015-0097
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