The baby boomer generation started reaching retirement age in 2011. As millions of baby boomers are starting to need the additional healthcare services that come with aging, the healthcare industry is considering their labor options. At the same time more workers will be needed, a wave of older healthcare workers will also be retiring.
So where will the needed labor come from when there just aren't enough younger workers to fill the gaps?
More efficient processes and technology will help, but workers age 50-plus will also be called upon to contribute their experience, professionalism, work ethic and knowledge. This shift in the value of graying workers can already be seen in data from a new AARP study, which reports that 35 percent of U.S. labor force participants will be 50 or older by 2022, compared to just 25 percent in 2002.
It is no secret that older workers have historically been the target of age discrimination, even in the healthcare industry. But, contrary to popular belief, older adult workers are not more costly and less productive. The study also demonstrated that a 50-plus workforce only results in minimal increases in total labor costs, and these are outweighed by productivity.
Mature workers were included in those who lost their jobs during the recession that began in 2008, and many joined the ranks of the long-term unemployed. But, as a bit of uplift in the economy begins to occur, the number of Americans age 50-plus who are working or looking for work is growing significantly, and this is expected to continue.
Indicators that the climate is better for older workers include a 4.1 percent unemployment rate for those over age 55, compared to 5.7 percent for the total population and a steep 18.8 percent for teens. Additionally, age-discrimination charges are on a downward trend, and some companies are actively recruiting seasoned workers and/or offering retraining programs.
Study findings also included the 50-plus segment of the workforce is the most engaged age cohort across all generations and, coupled with their lower turnover rates, this translates into business results. More specifically, 65 percent of employees age 55-plus are considered engaged, compared to only 58-to-60 percent for younger employees — and a 5 percent increase in engagement achieves 3 percent incremental revenue growth.
Current and future financial needs are a top reason employees who can continue working stay in the workforce past age 50, and this includes some finding their employer-sponsored health plans to be a better option than Medicare. However, psychological and social fulfillment also plays a role in the decision for some to continue working, even for fewer hours or in positions with less responsibility.
Older adults have something to contribute to the healthcare delivery system, and it goes beyond their life experience. Today's older workers represent the youngest of the greatest generation as well as the baby boomers.
As a group, they have a strong work ethic and are loyal, engaged, reliable and dependable. Their institutional knowledge, professionalism, broad networks and lower turnover rates are attractive to some employers. Others will find value in their leadership, detail orientation and skills with listening and problem solving.
The most effective healthcare leaders will find ways to recruit, retain and accommodate the needs of these seasoned workers. This may include:
- re-envisioning roles and responsibilities
- providing options for transitioning to new positions or retirement
- offering more flexible schedules and work locations.
The aging baby boomers will contribute to increasing demands upon the healthcare delivery system, but they will also take their place in the pool of human capital caring for each other.
