Tailoring your benefits strategy for an aging workforce and why it’s good for business
| Date | 14 November 2016 |
| Published date | 14 November 2016 |
| Pages | 258-261 |
| DOI | https://doi.org/10.1108/SHR-08-2016-0067 |
| Author | Andrew Frend |
| Subject Matter | HR & organizational behaviour,Employee behaviour |
Tailoring your benefits strategy for
an aging workforce and why it’s good
for business
Andrew Frend
Andrew Frend is Head of
Strategic Planning and
Analytics at Voya
Employee Benefits,
Minneapolis, Minnesota,
USA.
Abstract
Purpose –The purpose of this paper is to help human resources professionals tailor their benefits
strategies to accommodate, recruit and maintain an experienced, talented, aging workforce.
Design/methodology/approach –Findings are based on the author’s professional experience in the
employee benefits industry and recently published research from the Society for Human Resource
Management and other industry and government sources.
Findings –By effectively tailoring benefits packages for their employees, companies can retain their
older workers and capitalize on their knowledge and experience in ways that benefit their works and the
business’ financial bottom line.
Originality/value –Individuals aged 55 and older will continue to comprise a significant portion of the
workforce for the foreseeable future. This paper describes several strategies that companies can use to
address the unique needs and challenges these workers face to benefit from their valuable skills and
expertise.
Keywords Employee benefits, Life insurance, Benefits strategies, Ancillary insurance,
Life insurance
Paper type Viewpoint
By 2022, people aged 55 and older will account for nearly 26 per cent of the US
workforce, according to the federal Bureau of Labor Statistics (2014). That is an
increase from 14 per cent in 2002 and confirms what many human resources
professionals have seen firsthand – their workforce is aging. As a result, departments of
human resources (HR) are taking a fresh look at how to tailor benefits for older employees.
Many are focusing on benefits as a way to retain the qualified, experienced employees they
need to meet their business objectives. More than a third of employers surveyed by the
Society for Human Resource Management said that an inability to offer benefits that are
attractive to older workers made retention more difficult (Society for Human Resource
Management, 2015). If the benefit equation is handled well, however, it is a win-win for
employers and employees. With the right pieces in place, aging employees will be less
distracted by health or financial concerns and can take the time they need to recover fully
from an illness or injury. If an employer is not inspired by the effect that competitive benefits
could have on retention and morale, they might be motivated by the cost savings. Some
experts suggest that presenteeism accounts for 75 per cent of productivity loss and
estimate that the costs associated with lack of productivity are two to three times greater
than direct healthcare expenses.
A mix of employer-paid and voluntary benefits can help workers protect what matters most
in their lives and can help employers deploy their retirement and health-care funds more
efficiently. As companies build a benefits program that addresses the needs of an aging
population, HR professionals might want to consider the following four factors.
PAGE 258 STRATEGIC HR REVIEW VOL. 15 NO. 6 2016, pp. 258-261, © Emerald Group Publishing Limited, ISSN 1475-4398 DOI 10.1108/SHR-08-2016-0067
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