David DeLong
What's the greatest disconnect in the American workplace? It may be the gap between how employers value their older employees and what those experienced and knowledgeable workers are really worth, now and especially in the years ahead.
Against this background, the key question for workers practicing enlightened self-interest is this: How can I boost my stock in the ageist U.S. labor market?
For answers, we spoke with David DeLong, a research fellow at the Massachusetts Institute of Technology's AgeLab, author of Lost Knowledge: Confronting the Threat of an Aging Workforce, and a consultant based in Concord, Mass.
What changes in the U.S. labor market do older workers need to know about?
I think the employment market will change dramatically over the next five years as baby boomer retirements kick in. Older workers will be in much greater demand. In the next seven years, the 50- to-64 age group will grow almost 40 percent, whereas the 35-to-49 group will shrink 8 percent - that's the basis of the coming war for talent. Some organizations will be desperate; they'll design a more age-diverse workforce.
Why must the scarcity of talent become a crisis before employers get wise and work hard to retain their most experienced workers?
Organizational cultures still tend to drive older workers out. Downsizing, early retirements and social norms tend to push workers to leave organizations prematurely. Many employers see older workers as more costly, so they don't invest in them.
Why would workers even consider working into their late 60s and beyond?
Many older workers are in denial about the financial needs they'll have in retirement. According to my research , 59 percent of workers with $150,000 to $250,000 in assets are highly confident that they can live comfortably through a long retirement. Problem is, they'll probably exhaust those resources before they reach their life expectancy, which is well into their 80s.
For burned-out workers in dead-end jobs, isn't the prospect of continuing with their employer thoroughly depressing?
Older workers make the mistake, as they get closer to retirement age, of thinking that they don't have any choices, that they're at a dead-end, if they don't like their current situation. That leads to a lot of unfortunate career endings. Often people are "retired on the job" and not performing. Instead, they should be challenging their employers to redeploy them in more engaging roles that make full use of their knowledge and long experience.
OK, given the often unacknowledged reality that older workers and their employers need each other, what can workers do to fully leverage their value in the employment marketplace?
You should be aware of what particular knowledge is of value to your employer, of what is truly valued, what they'll really miss if they lose you. Then work hard to make sure that management recognizes what those capabilities are.
What types of alternative arrangements tend to attract older workers?
Today organizations often don't provide the flexibility that older workers need. But, as the labor market tightens, you may be able to design the work life you want as you get older.
Older people are interested in three kinds of unconventional work situations in particular. First, phased retirement opportunities are still limited because of pension regulations, but that's bound to change. Second, many companies are bringing retirees back as contractors or consultants. They're not doing it en masse; they're bringing back select hard-to-replace employees. Third, many organizations will be compelled to recruit older people as the labor market shrinks. Home Depot is one company that's already doing this.
Can you give an example of a company that treats older workers right?
Draper Laboratory (a Cambridge, Mass., research and development organization that engineers aerospace and other technologies) has been very aggressive with retaining older workers. They design very flexible jobs and let some of their engineers take the winter off and head south. These people have 20 years of experience in highly specialized fields like microelectronics; you can't just hire them out of the Yellow Pages.
In their workforce planning, do employers treat all experienced workers equally?
You want to be identified as a good worker, productive, and a team player. You might think you know a lot, but if you're a pain in the neck, your skills base gets overshadowed by your inability to get along with others.
As workers mount a campaign to make the later stages of their careers meaningful and profitable, what should they keep in mind?
Get some help assessing the marketability of your skills. Ask yourself some tough questions. How do you present yourself? Do you appear vibrant or worn out? Would you want to work with you?