leadingtoday.org

Leadership Tip of the Month

May 2006

Copyright 2006 ã weLEAD, Inc.

Understanding the Retired Worker

Workers change from generation to generation and their needs change as well. But what do today’s retired workers desire and how are they different from previous generations? An answer comes from a recent survey conducted on behalf of HSBC, a London-based banking group. Entitled “The Future of Retirement”, the survey involved 6,000 employers and over 21,000 individuals in 20 countries. Today the term “retired worker” no longer means someone who has permanently ceased working. It can also mean someone who leaves a job during their retirement years and returns to work again at another job, or chooses to work reduced hours.

The typical retired worker in the 21^st century can expect to live longer in retirement than any previous generation. It is not surprising for a retired worker to live 20 to 30 years or more after retirement age. Overall the Western world's population is aging fast, combined with increased longevity. Statistically, if a couple live to age 65 in good health, there is a 50% chance that one member will live to be 92 years old! This means that a person who retires at age 65 may need approximately 30 years of retirement income. This is resulting in a greater burden on government programs and individual savings. If a worker didn’t save enough money during their working years, they run a risk of consuming all of their retirement savings before they or their spouse die. As a result, many retired workers are going back to work after retirement age. Some do this out of financial need and others for personal fulfillment.

When asked in the survey who should pay for the retirement of workers, 43% said individuals should bear the cost of retirement, 30% said it should be the responsibility of government and 5% believe the employer should assume this cost for workers. Additionally, 37% of survey respondents believe the government should have some type of “enforced” additional private savings and only 13% supported increased taxes to aid retired workers. Many organizations have policies and a culture that is in conflict with the needs of today’s retired workers. Here are some of the contrasts revealed in the survey…

· Due to financial needs, about 25% of retired workers stated that money would be their main objective for working after retirement age. But, this means that 75% will work to achieve other main objectives. Employers who do not listen to the needs of this experienced workforce will lose their talents and seasoned experience to those employers who do. Many organizations are now targeting senior workers because of their strong lifelong work ethic and reliability. Yet if their needs are not understood and addressed, a great opportunity to harvest their talents is lost.

· What were some of the other main reasons retired workers continue to work? Many want something meaningful to do. After a lifetime of working, often at unfulfilling jobs, some retirees look to do something that has special meaning to them and meets their need for added fulfillment. Another main reason for working was to remain physically active and enjoy mental stimulation. This means that isolated or sedentary jobs may not be suitable for those retired workers with these needs. Yet, only 37% of employers presently offer older workers the chance to perform “new kinds of work”.

· Another major finding of the survey was that about 66% of respondents wanted some type of flexible working schedules. This desire was true for existing workers who are nearing retirement. Flexible hours may be defined as including working fewer hours per day, or fewer days per week, or allowance of extended breaks during the day or between projects. Yet, only 30% of employers presently offer flexible or reduced working hours to older workers. This disconnect between the needs of retired workers and existing workplace policies needs to be merged.

An adviser on the survey was Ken Dychtwald, a San Francisco-based aging specialist. He stated that employers are “beginning to realize that pushing everybody out the door may not be the wisest thing to do” because these highly skilled workers may be hard to replace. He believes employers need to analyze the “needs” of future retirees and balance their needs with the needs of the employers. More programs should be created that allow for policies such as a phased retirement process, sabbaticals, part-time work and the chance to mentor younger workers.

Retired workers have special talents and skills to offer the modern workplace. It is important to listen to the needs of this productive generation. What they may lack in raw energy, they make up for in mature experience. A wise leader will not assume a retired worker has the same desires as previous generations.

For weLEAD, this is Greg Thomas reminding you that it was Lord Chesterfield who said, "The less one has to do, the less time one finds to do it in.”