The Aging Workforce: Business Strategies Used by Employers
THE AGING WORK FORCE: BUSINESS STRATEGIES
The Aging Work Force: Business Strategies Used by Employers
S. L. Lemmon
Texas A & M University Commerce
Table of Contents
Introduction………………………………………………………………………………………3
Employee Benefits………………………………………………………………………………..3
Training an Aging Workforce…………………………………………………………………….5
Human Capital…………………………………………………………………………………….6
Summary…………………………………………………………………………………………..7
References…………………………………………………………………………………………8
The Aging Work Force: Business Strategies Used By Employers
Introduction
Each year the Social Security Administration mails an annual statement to individuals that provides information pertaining to the benefits they will receive at retirement. Armed with this information, combined with knowledge of their personal savings, investments, and workplace retirement benefits, individuals plan their retirement strategy inclusive of not working past the age of 65. In 1983, however, Congress changed the normal retirement age to gradually increase from age 65 to 67 depending on the year of birth. As a result, individuals who once considered retiring between the ages of 62 and 65 are now required to spend more time in the work force.
As a number of aging workers need to remain employed and because there is only a small labor pool of younger workers available to fill technically challenging positions, Businesses realize the importance of maintaining the employment of aging workers. Companies also realize that they must include cost containment procedures due to the higher salary demands of older workers. In consideration of both of these challenges, business use three primary strategies to perpetuate the continued employment of their aging work force, induce unemployed older workers back into the work force, and still practice cost containment. These strategies relate to employee benefits, training programs, and human capital investment.
Employee Benefits During the 1980s, the work
The Aging Work Force: Business Strategies Used by Employers
S. L. Lemmon
Texas A & M University Commerce
Table of Contents
Introduction………………………………………………………………………………………3
Employee Benefits………………………………………………………………………………..3
Training an Aging Workforce…………………………………………………………………….5
Human Capital…………………………………………………………………………………….6
Summary…………………………………………………………………………………………..7
References…………………………………………………………………………………………8
The Aging Work Force: Business Strategies Used By Employers
Introduction
Each year the Social Security Administration mails an annual statement to individuals that provides information pertaining to the benefits they will receive at retirement. Armed with this information, combined with knowledge of their personal savings, investments, and workplace retirement benefits, individuals plan their retirement strategy inclusive of not working past the age of 65. In 1983, however, Congress changed the normal retirement age to gradually increase from age 65 to 67 depending on the year of birth. As a result, individuals who once considered retiring between the ages of 62 and 65 are now required to spend more time in the work force.
As a number of aging workers need to remain employed and because there is only a small labor pool of younger workers available to fill technically challenging positions, Businesses realize the importance of maintaining the employment of aging workers. Companies also realize that they must include cost containment procedures due to the higher salary demands of older workers. In consideration of both of these challenges, business use three primary strategies to perpetuate the continued employment of their aging work force, induce unemployed older workers back into the work force, and still practice cost containment. These strategies relate to employee benefits, training programs, and human capital investment.
Employee Benefits During the 1980s, the work
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