staying ahead of the curve 2004: employer best practices ... · knowledge management 601 e street,...

Rehiring Retirees R Phased Retirement Options R Disability Benefits R Job SharingTargeted Education and Training Opportunities R Specialized Career OpportunitiesJob Mobility RMentoring R Knowledge Transfer R Employee Assistance ProgramsOn-Site Rehabilitation R Lifelong Learning Options R Professional DevelopmentPartnering R Positive Corporate Culture R Financial Packages R Eldercare Services Caregiving Support R Proactive Hiring Practices R Community Partnership OptionsPrescription Drug Benefits R Workplace Flexibility R Long-term Care Insurance Retention R Hiring Practices R Job Sharing R Profit Sharing R Volunteer ProgramsHealth and Wellness Programs R Flexible Schedules R Part-time Health BenefitsCareer ManagementR Succession PlanningRWorkplace RedesignR RehabilitationJob Transfer Opportunities R Retiree Relations R Employee Attraction + Retention

Staying Ahead of the Curve 2004:Employer Best Practices for Mature Workers

Study Conducted for AARP by Mercer Human Resource Consulting

September 2004

AcknowledgementsThis report was prepared by AnnaRappaport and Matt Stevenson of MercerHuman Resource Consulting, with assistancefrom Michelle Pfiffner on healthcare issuesand review by Angie Watson. AARP’sEconomic Security and Work Departmentmade this study possible. Special thanks goto the following members of AARP’s staffwho served on the project advisory team:Deborah Russell, Economic Security andWork; Jon Dauphiné, Social Impact; Sara Rix,Public Policy Institute; Nancy Thompson,Communications; David Nathan, Communi-cations; Janet C. Lane, Communications;Chryste Hall, AARP Massachusetts StateOffice; Jeff Love, Strategic Issues Research;and S. Kathi Brown, Strategic Issues Research.

For additional information, please contactDeborah Russell at (202) 434-2067, SaraRix at (202) 434-2416, or Kathi Brown at (202) 434-6296.

Copyright ©2004 AARP Knowledge Management601 E Street, NWWashington, DC 20049http://research.aarp.orgReprinting with Permission.

CONTENTS1. Executive Summary 1The Future: More Focus on Business Issues that Drive Policy 7

Industry-Linked Business Issues 8

Looking to the Future 10

Recommendations 11

2. Introduction 12Best Practices 13

Employer of Choice 13

Content of Report 14

3. Setting the Stage 15Demographic Context 15

Challenges Facing Employers 17

Issues of a Maturing Workforce 18

Employee Perspective 19

Differing Needs and Situations Among Mature Workers 19

Differences in Employer/Older Worker Issues by Career Relationship to Employer 20

Addressing the Challenges 24

4. Creating Good Workplaces for Mature Workers 25The Fundamentals 25

Core Programs 26

Programs of Significant Value 26

The Extras 27

5. Core Programs Important to Mature Workers 28Best Practices in Core Programs 28

Job and Career Design 30

Workplace Design and Modification 34

Training, Lifelong Learning, and Professional Development 38

Culture and Communication 39

Benefits for Part-Time Workers 41

Recruiting Practices 42

Health and Productivity–An Opportunity 43

Summary 45

6. Programs of Significant Value 46Best Practices in Programs of Significant Value 46

Retirement Benefits and Programs Beyond Cash 49

Promoting Health and Wellness 51

Workplace Flexibility Beyond Basic Career Options 53

Support for Caregiving 53

Other Emerging Ideas 54

Summary 55

7. Extras 56Best Practices Among “Extras” 56

Other Unique Practices 57

Summary 58

8. Important Areas for Both Employers and Employees 59Retirement and Retirement Security 59

Health and Healthcare 59

Flexibility 61

Phased Retirement 63

Talent Management 65

Tips for Successful Programs 66

Measurement of Success 66

Summary 68

9. Findings, the Future, and Recommendations 69Overview of Findings 69

Industry-Linked Business Issues 70

Future Challenges for Business 70

Recommendations 71

Appendices1. Methodology 73

2. Case Examples 77

3. AARP Best Employers for Workers Over 50 Cited in this Report 79

4. All AARP Best Employers for Workers Over 50, 2001, 2002, 2003, 2004 80

AARP’s goal is to expand employmentopportunities for older workers, helpingboth workers and employers in the process.Toward that end, it has established theAARP Best Employers for Workers Over 50(AARP Best Employers) program. Launchedin 2001, this program seeks to recognizeemployers for their exemplary policies andpractices. Employers who wish to beconsidered for the AARP Best Employershonor complete an extensive applicationdescribing their practices in areas such asrecruiting, workplace culture, training anddevelopment opportunities, alternative workarrangements, health benefits, pensions and retirement savings plans, and retireebenefits. A multi-tiered evaluation process

used to select the AARP Best Employersincludes a detailed assessment of eachcompany’s application by an outsideconsulting firm under the supervision ofAARP, a review by a panel of external judges,and a due diligence process designed toensure that the honorees have practicesand policies that are generally consistentwith AARP’s public policies.

In 2004, AARP engaged Mercer HumanResource Consulting (Mercer) to conduct ananalysis of the workforce practices andpolicies of many of the most recent andformer AARP Best Employers.2 Through thisanalysis, based primarily on an extensivereview of the applications submitted by

Employer Best Practices for Mature Workers 1

Executive Summary

1 Source: Mitra Toossi, “Labor Force Projections to 2012: The Graying of the U.S. Workforce,” Monthly Labor Review,February 2004.

2 The descriptions of the workforce practices and policies included in this report are based primarily on AARP BestEmployers applications submitted by employers that received the AARP Best Employers designation in 2002, 2003, or2004. In some cases, additional information was gathered through phone interviews or email communication withthese companies. The information that the employers submitted, either on the applications or through subsequentcommunication, was assumed to be accurate and was not independently verified. Prior to publication of this report,the employers were given the opportunity to review content related to their practices. Certain case studies featurecompanies that have not received the AARP Best Employer designation but do have noteworthy practices. Thisinformation is based on sources other than the AARP Best Employers applications.

A major shift is taking place in the U.S. workforce. It is aging rapidly. In 2002, 14% of the workforce was aged 55 or older. By 2012, 19% of workers will be at least age 55, an increase of more than 10million workers 55 or older from 2002 to 2012.1 The number could besubstantially higher if anticipated labor shortages materialize,employers implement strategies to attract and retain older workers,and/or if many of the boomers work in retirement, as they say theyexpect to do.

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winning companies in 2002, 2003, and2004, Mercer identified many employerprograms that are used to support, attract,retain, and manage a mature workforce. In anumber of instances, Mercer supplementedits analysis with information from telephoneinterviews with representatives of winningcompanies as well as from outside sources.This report highlights numerous examples ofbest practices implemented by the AARP BestEmployers that can be adopted, perhaps withmodifications, by other employers to create aworkplace of choice that appeals to olderworkers. It may also encourage employersto identify and implement other policies,programs, and practices that meet the needsof mature workers and their employers.

The information highlighted in this projectshould prove of value to employers,employees, and society as a whole in light ofthe changes that are occurring in the work-force. Not only is the workforce aging, it isgrowing more slowly than it had been whenthe huge boomer cohort was entering thelabor force. Those boomers will soon beginreaching retirement age. More than half ofthe workforce of one of the AARP BestEmployers, Deere & Company, for example,is expected to retire within 10 years. Deere &Company is not alone. Other organizationsin the public and private sectors particularlyutilities and aerospace companies, universitiesand health care organizations, and the federalgovernment will face similar high retirementrates. The pool of replacement workers may not besufficient to meet employer needs. Many employershave not yet identified what the workforcechanges may mean to their organizations.

Some employers, however, do seem betterprepared to meet the staffing challenges thatan aging workforce seems to promise, andsome of them have become “AARP BestEmployers.” The awardees have in placeprograms and policies that make theirworkplaces good for all workers, which meansthey are good for mature workers and youngerworkers. They may also have implementedprograms and policies with an eye towardattracting and retaining mature workers.

Throughout this report, the term “employerof choice” is used to describe an organizationwhose policies, practices, and programs makeit an attractive place to work. In some respects,the needs and priorities of mature workersmay differ from those of other workers.Consequently, the mature workforce mayfind certain policies, programs, and practicesmore attractive or important than otherprograms. Also, they may find them more

Staying Ahead of the Curve 20042

important than the younger workforce does.Moreover, there is considerable diversitywithin the mature workforce, so not allolder workers will want or need the sameprograms or practices.

This study focuses largely on practices thataddress mature worker needs and interests.

The main themes that emerged in theanalysis of the AARP Best Employers are asfollows, in order of prevalence:

• Attracting and retaining the rightworkforce are important to the companieschosen as AARP Best Employers.

• Newly implemented programs reported bywinners that focused on mature workersusually required only a modest financialinvestment.

• A company’s individual industry andmarket focus can in many cases beleveraged to offer programs to supportthe maturing workforce.

• Recently implemented programs are emergingto meet the workplace needs of the matureworker; the incidence of such programshas increased among the AARP BestEmployers over the three years of the study.

• The AARP Best Employers in the healthcaresector appear to have more numerous andbetter developed mature worker programsthan AARP Best Employers in most othersectors.

Each of these themes will be discussed inmore detail in the context of a frameworkthat categorizes mature worker programsbased on whether they are:

• Fundamentals: These are the policies,programs, and management practicesthat an informed individual is likely toregard as basic requirements whenchoosing a long-term job.

• Core programs: These programs involvejob and career design, workplace design,hiring and recruiting, methods of leavingthe workforce, and formal workplaceflexibility programs offering non-traditionalwork schedules and arrangements. Theyrelate to the design and organization of ajob.

• Programs of significant value: Theseprograms create economic value but notcareer opportunity. They are also importantin addressing the specific needs of matureworkers and deal with their concernsabout caregiving support, retirementsecurity, and healthcare. These alsoinclude informal workforce flexibilitypractices and limited special purposeflexibility programs for caregiving. Theseprograms give workers a better deal andare of economic value to them.

• Extras: These programs may be a big helpto some people, but they do not speak tothe essence of the jobs, or the employmentrelationship. They create nominal economicvalue for employees. They include retireerelations programs, eldercare referral services,and volunteer service opportunities.

This framework is used throughout the reportto create a logical structure for thinking aboutthe different types of employer programs andtheir significance.


The analysis identifies what is referred to by AARP as “best practices.” There is nouniversally accepted definition of “bestpractices.” For the purpose of this report,“best practices” are the practices imple-mented by winning companies in the AARPBest Employers for Workers Over 50 programthat expand employment opportunities formature workers, address their particularneeds and interests, and generally make workmore rewarding. More attention is paid topractices that are followed by a number ofcompanies across several industries than topractices found in only one or two companiesor one industry.

As mentioned above, several themesemerged from the analysis of the bestpractices among the AARP Best Employers.These themes, together with examples of howeach theme manifested itself, are as follows:

Attracting and retaining the rightworkforce are important to thewinning companies.

• Many of the best practices involve retentionand focus on influencing the ways workersexit the labor force. A number of companiesoffer some form of phased retirementand/or rehire retirees. Examples of theseinclude the programs of winners such asPinnacle West Capital Corporation,Phoenix, AZ; SSM Health Care, St.Louis, MO; and Bon Secours RichmondHealth System, Richmond, VA.

• Flexibility is a key theme in supportingretention, and the best practices includeoptions about work schedules andlocation. Restructuring job content was

far less prevalent, although it likely willbe a bigger issue in the future. Commonoptions included job sharing, part-timework, and compressed work schedules.The case example of Scripps Health,San Diego, CA, illustrates a combinationof job sharing and flexible scheduling.

• Retention was also fostered by efforts tohelp employees move to different jobsand access new opportunities within thecompany. Some winners had formal systemsto support and enable workers to moveto new jobs within their organizations.Many offered career counseling. Somewinners offered special assignments tomature workers. Mentoring was a formof special assignment that also facilitatedknowledge transfer. Employers with suchprograms include The Principal FinancialGroup, Des Moines, IA, and Deere &Company, Moline, IL.

• Some companies retain employees byrestructuring the workplace to make workless physically demanding. There were veryfew examples of this, but it is a promisingarea for the future.


• Extra benefits such as 401(k) “catch-up”contributions (optional additional contribu-tions allowed for workers age 50 or older)and time off to care for dependents beyondthat required by the Family and MedicalLeave Act (FMLA) were used to supportretention efforts. Many winning employersfeatured this option.

• Comprehensive programs specificallydesigned to attract mature workers werefound in organizations such as temporaryagencies and healthcare, but not amongother types of employers. The rehiring ofnurses after an absence from the workforceby St. Mary’s Medical Center, Huntington,WV, is an example of such programs. Whatis happening at St. Mary’s Medical Centerand in other healthcare institutions may bea precursor of what will happen elsewhere.

• Comprehensive talent management offers away to deal with retention issues on alonger term and more comprehensive basis.Talent planning focuses on the talent thatwill be needed, where to get the talent,how to keep it, and how to manage itsloss. This analysis uncovered little evidenceof comprehensive talent planning amongAARP Best Employers. Healthcareorganizations appeared to have moretalent management programs withmultiple components than did the otherwinning companies. For example, theseorganizations often had talent managementprograms that included integratedrecruiting, training, and retention elements,as opposed to companies that had few, ifany, formal talent management programs.

Return on Investment (ROI) measures arementioned in the case example of ScrippsHealth and examples from outside sources.Mercer’s experience is that most employersare not yet doing such planning.

Newly implemented programs focusedon mature workers usually required atmost a modest investment.

• Retirement planning and preparationprograms were common. Through theseprograms, employers help workers planand prepare for their retirement years, forwhich workers are shouldering more ofthe financial responsibility. Most of theAARP Best Employers in 2004 providedsome sort of retirement planning.

• Added benefits such as 401(k) “catch-upcontributions,” dependent-care spendingaccounts focused on elder care, long-termcare insurance provide for tax breaks andgroup purchase, although employersseldom pay for the benefits. Such practiceswere very common among the 2004 AARPBest Employers.

• Workplace restructuring (changing thephysical environment to make work easier)offers a good opportunity to increaseproductivity, but the AARP Best Employersapplications provided few examples of this.This may be a big opportunity area.

Within the programs of significant value,retiree health is a major exception to theobservation that programs do not cost much.



Many of the companies honored asAARP Best Employers leverage theirareas of market focus to offer programsto support the maturing workforce.

• Financial service and insurance companieswere most likely to offer financial planningprograms to employees, including accessto their service centers and supportmechanisms. The Principal FinancialGroup, Des Moines, IA, and FarmersInsurance Group of Companies, LosAngeles, CA, are examples of this.

• Some hospital systems and healthcareproviders offered healthcare services eitherat a substantial discount or at no cost tothe employees covered under their healthplans. Repeat winners ScottsdaleHealthcare, Scottsdale, AZ, and St.Mary’s Medical Center provide examplesof this practice.

Recently implemented programs areemerging to engage the matureworker. The incidence of such programsamong these companies has increasedover the three years of the study.

• These include programs to reinforcemessages and show appreciation forlonger service employees, such as thePersonnel Achieving Long-Term Service(PALS) Program at Children’s HealthSystem-Birmingham, Birmingham, AL.

• Programs recognizing mature workerissues help mature employees work moreeffectively and integrate these individualswith other workers who have differentneeds and issues. The Vanguard Group,Valley Forge, PA, and Scripps Health

both offer examples of these types ofprograms.

• Support for family care needs, therehiring of retirees, phased retirement,and flexible work arrangements addresssome of the critical needs of matureworkers. Examples of these were foundin a number of winners, such as FirstHorizon National Corporation,Memphis, TN, and Volkswagen ofAmerica, Inc., Auburn Hills, MI.

The AARP Best Employers from thehealthcare sector appear to have betterdeveloped mature worker programsthan most of the AARP Best Employersfrom other sectors.

The healthcare industry depends on manyspecialized workers in different occupationalgroups, and the issues it is facing may be aprecursor of what is coming to organizationsin other sectors that depend on a number ofspecialized occupations. Examples of matureworker programs that have been implementedby healthcare organizations include:

• Healthcare organizations that have workedwith professional schools to encourage andsupport entry into nursing. The initiatives ofLoudoun Healthcare, Inc., Leesburg, VA,with George Mason University, Fairfax, VA isan example.

• Targeted recruiting programs that are beingused to recruit professionals, particularlynurses, from as many sources as possible.Retirees and mature workers are clearlybeing targeted for these efforts. St. Mary’sMedical Center and Loudoun Healthcareprovide examples of these practices.

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• Healthcare organizations that offer a widevariety of flexible work options.

• Hospitals that make the job of nursesless strenuous by, for example, installinghydraulically functioning hospital beds.

• Phased retirement and retiree rehireprograms, which are more likely to beformalized within the healthcare industrythan elsewhere.

• Specialized services that are provided at adiscount to employees and/or retirees.Scottsdale Healthcare provides anexample of this practice.

The Future: More Focus on BusinessIssues that Drive PolicyGiven global competition and the expectationsof investors, it is very important to tie allworkforce management programs to thebusiness case and document results. In thisclimate, Mercer’s experience has shown thatmost organizations are reluctant toimplement or keep programs withoutbusiness case justification (positive return oninvestment). Business cases providemanagement an avenue to show to theirboards that they are acting rationally. Animportant step in understanding thebusiness issues is an analysis of the internaland external labor markets and theimportance of finding a match between the two. The shift in the external labormarket3 as the population ages and the

corresponding shift in the internal labormarket4 mean that the solutions of the pastoften will no longer work. Some of the issuesthat employers will be confronting:

• Availability of talent generally; particularlyneeded are specialties such as nursing andnuclear engineering.

• Importance of maintaining intellectualcapital and relationships so that as onegroup leaves, the business will continue tobenefit, by maintaining its customer baseand its relationships with other keycontacts, such as suppliers, regulators, etc.


3 External Labor Market: The demand and supply of current and future labor outside of an organization’s ownworkforce. It is generally accessed for specific skills or job groups. (Mercer Human Resource Consulting definition)

4 Internal Labor Market: An organization’s three interrelated flows of employee attraction, development, and retention,and the effectiveness with which these flows are managed. (Mercer Human Resource Consulting definition)

• Costs of benefit programs.

• Retention of key employees.

• Potential changes in employee productivity(both increases and decreases).

• Rewards for performance suited to thematuring workforce.

• Careers and career progression.

• Market branding and customer perceptions.

• Work/family friendly (linked to employerof choice).

• Skilled worker shortages.

• Health and productivity.

Industry-Linked Business IssuesSome companies unwittingly exacerbatedthe effects of future demographic shiftswhen they slowed hiring and terminatedyounger workers during the economicslowdown in the early 1990s. As a result of

these decisions, their workforces now lackyounger and mid-career employees thatwould be part of these groups.

Furthermore, entire industries are alreadyfeeling the pressure of the demographic shift.Aerospace and defense, utilities, healthcare,insurance and financial services, and publiceducation, in particular, face some of thegreatest threats of a “brain drain” as mature,experienced workers approach retirement andtoo few skilled replacements are available.The problem is not restricted to white-collarprofessions; the ranks of experienced blue-collar workers are already thinning, withimplications for such industries as constructionand heavy manufacturing that are heavilyreliant on the skilled trades. Nor is this problemlimited to the private sector: the federalgovernment is highly populated by individualsnearing retirement age and faces substantialtalent shortages in certain jobs as a result.Some examples of how these issues are linkedto specific industries are described below.

Aerospace and defense. The defensebudget cuts of recent decades causedworkforce pruning in aerospace and defensecompanies, with cuts often focused onworkers with lower seniority. Budgetaryrestrictions also severely limited new hiring.During recent decades, many experiencedemployees were offered attractive buyoutsunder early retirement incentives. As a result,the average age of workers in the defensesector of the industry is now 51. Engineers,mechanics, and many other skilled personnelin these businesses are nearing retirementage, and the industry’s traditional retirement


programs still encourage early retirement.Furthermore, the industry is not seen as veryattractive by the best potential new entrantsto the labor force.5 Much of the workrequires security clearances, so options forgetting work done offshore and/or usingimmigrants are not as readily available as theymight be in other manufacturing businesses.

Utilities. Many utilities downsized their work-forces in the face of deregulation and newtypes of competition. These businesses haveskilled workers—nuclear engineers are oneexample—that are aging and in short supplyin the labor market. The industry’s traditionalretirement plans still offer attractive early-retirement options that accelerate the loss ofseasoned workers with critical skills.

Healthcare. Hospitals use many skilledhealth professionals who are projected tobecome increasingly scarce. This is particularlytrue of nurses, who are already in short supply.The average age of nurses today is in the late40s. As a result of healthcare cost controls,hospital re-engineering, and higher patientacuity levels as care of less-ill patients hasshifted to out-of-hospital settings, nursinghas become an increasingly difficult job. Withmany more professional options now availableto women, for whom nursing was once oneof the few occupations open to them, manywomen have left nursing for other jobs, andmany who might have chosen nursing aremaking other choices. Retired nurses who stillwant to work often can find less demandingwork in less stressful environments.

Public education. A growing number ofteachers in the public education system willsoon be eligible for early retirement, whichtypical public-sector retirement programsmake very attractive. The U.S. GeneralAccounting Office (GAO) reports that as away to deal with teacher shortages, somestates now allow critical teachers to collecttheir pension benefits and continue working.Arkansas, California, Louisiana, and Ohio haveall adopted incentives for older teachers tostay on the job rather than retire. Many publicentities have installed Deferred RetirementOption Plans (DROPs) that allow workers tocontinue working beyond retirement age butwith the provision that the benefits theywould have collected are set aside in a specialfund to be paid to them in a lump sum when


5 Source: Mercer Human Resource Consulting.


they retire.6 However, the degree to whichsuch policies (which may not be legallyavailable to private-sector employers) can stemthe loss of experienced teachers and thereforemeet the need for teachers is uncertain.

Looking to the FutureThe general aging of the workforce in theUnited States and overseas is likely to leadto substantial shifts in the workforce. At aminimum, companies will experience majortalent challenges in some occupations.Some observers are projecting major talentshortages nationwide, but there is lessconsensus about this. This study suggeststo employers that a combination of a long-and short-term strategy is best. It alsoraises issues that require policy attention.

In the short term, employers will want to lookat their current programs, identify problemsand unmet needs, and think about how toimprove what they are doing now. They willalso want to make a first-round assessmentof how the changing demographics willaffect them and identify specific occupationalgroups where there may be problems andwhere a strategy is needed.

Over the longer term, employers will haveseveral opportunities for more effectiveresponses to mature workforce challengesand issues, such as recruiting, alternative jobstructures, and different options for phasinginto retirement. Today’s responses are oftenpiecemeal rather than comprehensive.Addressing these challenges as a businessissue and focusing on the business cases in

their responses will allow organizations toprovide justification for new programs tomanagers and to boards of directors. Inaddition, employers can improve productivitythrough workplace and program redesign inways that will respond well to mature workerissues. Finally, talent shortages will be a majorproblem for many employers. Talent planningis vital to understand where staffing gaps arelikely to fall and to build job-specific strategiesto fill them, particularly in scarce occupations.Organizations have many options to addressall of these challenges; and by doing so in acomprehensive way, they can turn potentialstaffing liabilities into business opportunities.

Policy barriers to the expansion andimplementation of best practices programsmust be identified. In particular, policy issuesaround phased retirement and rehiringretirees should be examined.

6 Source: GAO-02-85, Nov.,2001, Demographic Trends Pose Challenges for Employers and Workers, page 27–29.

RecommendationsCompanies will soon face the demographicsof a changing talent pool, if they are notdoing so already. These companies can usethe following steps to define a process toaddress issues such as impending talentshortages, knowledge transference as theboomers retire, and skill development of thegrowing number of older workers:

• Analyze workforce demographics:In performing the workforce analysis, quantitative as well as qualitativeapproaches should be used. Talent issuesare quite likely to be job specific—forinstance, the healthcare industry is facingshortages in nursing.

• Identifying potential solutions: The bestpractices identified in the report providesome ideas, and many other solutions areavailable as well.

• Assess the fit to the company: As partof this step, most organizations will wantto calculate the return on investment.Identification of methods of measuringsuccess is an important step towardsimproving programs and keeping them inplace. Based on the assessment of fit andresources available, an organizationshould select the types of programs toimplement and set timing of when tointroduce them.

• Design the details of the specificprogram to fit the context: Programsneed to be tailored to each environment.

• Pay particular attention to implemen-tation: Good implementation is vital tosuccess. Many good ideas fail to live upto their potential not because they arebad, but because the implementationwas not adequate.

• Monitor results and utilization ofprograms implemented: Predeterminedsuccess measures should be used to evaluate whether certainaccomplishments have been met.

• Evaluate: The benefits and costs of theprogram should be identified. If the benefitsdo not justify the costs, resources should bemoved to other areas.

• Refine as necessary: Many programs mustbe fine tuned and adjusted as the businesscontext changes. Often, the plan is toexpand them. Most organizations will wantto start small and build later. Measurementsof success for the earlier parts of theprogram help build the business case forfuture additions.


IntroductionA major shift is taking place in the U.S.workforce. It is aging rapidly. In 2002, 14%of the workforce was aged 55 or older. By2012, 19% of workers will be at least age55, an increase of more than 10 millionworkers 55 or older from 2002 to 2012.7

The number could be substantially higher ifanticipated labor shortages materialize,employers recruit and retain more olderworkers, and/or if many of the boomers workin retirement, as they say they expect to do.

AARP’s goal is to expand employmentopportunities for older workers, helping both workers and employers in the process.Therefore, in 2001, AARP created the AARPBest Employers for Workers Over 50 (AARPBest Employers) program to recognizeemployers for their exemplary policies andpractices in this area.

To be considered for the AARP Best Employerslist, employers must complete an extensiveapplication describing their practices in areassuch as recruiting, workplace culture, trainingand development opportunities, alternativework arrangements, health benefits, pensionsand retirement savings plans, and otherretiree benefits.

An outside consulting firm assesses eachcompany’s application with AARP supervision.A panel of external judges reviews the

findings. AARP also considers whethercandidates have practices and policies inkeeping with AARP’s public policies. Winnersare selected based on these criteria.

In 2004, AARP asked Mercer Human ResourceConsulting to analyze the workforcepractices and policies of many of the mostrecent and former AARP Best Employers,especially those practices that are good formature workers.8 While mature workers havemany of the same abilities, priorities, andneeds as the younger workforce, they alsodiffer in some important ways.

The study objectives were to:

• Identify the best programs for meeting themature worker’s needs.

• Highlight some of the more innovativepractices.

• Provide a framework for thinking aboutwhat it means to be a good employer.

• Provide models for other employers whoare searching for new ideas.

The information should be valuable toemployers, employees, and society as awhole in light of the changes occurring inthe workforce. The workforce is not onlyaging but also growing more slowly thanwhen the huge boomer population enteredthe labor force. Those boomers will soonbegin reaching retirement age.



8 For this study, “mature workers” are defined as employees aged 50 and older.

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For example, one of the AARP BestEmployers, Deere & Company, reports thatmore than half of its workforce is expectedto retire within 10 years. Deere & Company,is not alone. Other organizations in thepublic and private sectors—particularlyutilities and aerospace companies,universities, healthcare organizations, andthe federal government—will face similarhigh retirement rates. The pool of replacementworkers may not meet employer needs.Many employers have not yet identified whatthe impending workforce changes may meanto their organizations and what they mighthave to do to meet their workforce needs.

Some employers, however, do seem betterprepared, and some of them have becomeAARP Best Employers. These employers haveprograms and policies that make theirworkplaces good for all workers, younger onesas well as more mature workers. They also haveinstituted programs and policies with an eyetoward recruiting and retaining mature workers.

Mercer thoroughly analyzed information onthe winning applications for the 2002, 2003,and 2004 AARP Best Employers awards.Information from the applications was usedto determine “best practices.” This reportdescribes these best practices in waysdesigned to give employers ideas forimproving their own workplaces.

The study revealed numerous examples of bestpractices used by the AARP Best Employersthat can be used by other employers tocreate a better workplace. Included in thereport are descriptions of individual practicesas well as explanations of the similarities anddifferences among the various practices.

This analysis of the winning applications hasbeen supplemented in certain areas withinformation from outside sources. Theseadditional sources are identified whereappropriate.

Best PracticesFor this project, a “best practice” is definedas an innovative and/or commonlyimplemented practice followed by AARP BestEmployers in several industries that expandsemployment opportunities for mature workers,addresses their particular needs and interests,and generally makes work more rewarding.

Employer of ChoiceThroughout this report, the term “employerof choice” is used to describe an organizationwhose policies, practices, and programsmake it an attractive place to work. In somerespects, the needs and priorities of matureworkers may differ from those of otherworkers. Consequently, the mature workforcemay find certain policies, programs, andpractices more attractive or important thanothers or than younger workers do. Moreover,there is considerable diversity within themature workforce, so not all older workers willwant or need the same programs or practices.

Employers of choice usually have theseattributes of a good workplace:

• Attention to the business so as to improvechances for job stability.

• Comprehensive performance evaluations.

• Career management and training programssuch as computer-based training.

• Solid employee economic security packages,


including health and pension benefits, andemployer-supported methods for buildingassets for retirement.

• Fair compensation appropriate for the job.

• Appropriate work options such as flexibilityas to schedule, place, and job structure.

• Employee-friendly culture andcommunications.

• Family-friendly policies and programs.

Being an employer of choice means addressingemployee needs in a manner that works for thebusiness and fits the organizational mission.

Content of ReportThe following outlines the remainingchapters of the report:

Setting the Stage. This chapter reviews keysocietal and business concerns of employersand provides a backdrop for the study ofbest practices. It includes a description of thedemographic context, the challenges facingemployers, the employee perspective, anddifferences among groups of mature workers.

Creating Good Workplaces for MatureWorkers. This chapter defines employers ofchoice by looking at their policies and programsin four categories: fundamentals, core programs,programs of significant value, and extras.

Core Programs Important to MatureWorkers. This chapter describes best practicesamong “core programs” and offers casestudies and examples that feature former andmost recent AARP Best Employers as well asselected other employers. It provides insighton workplace design and modification,career patterns, formal workplace flexibility

programs offering non-traditional workschedules and arrangements, hiring practices,and health and productivity.

Programs of Significant Value. Thischapter defines “programs of significantvalue” and offers case studies and examplesthat feature former and most recent AARPBest Employers as well as selected otheremployers. It covers retirement support,informal workplace flexibility practices, healthand wellness, limited special purposeflexibility programs such as for caregiving,and other forms of caregiving support.

Extras. This chapter includes information onpractices deemed “extras” and features thoseof former and most recent AARP Best Employers.It focuses on volunteerism and retiree relations.

Important Areas for Both Employers andEmployees. A number of topics warrantedmore in-depth treatment. This chaptercontains information about measuringsuccess, tips for success, and more discussionof retirement, health benefits, flexibility,phased retirement, and workforce planning.

Findings, the Future, andRecommendations. This chapter is a summaryof the project’s results, what employers canexpect in the future, and recommendations fordealing with the challenges of the workforceof the 21st century.

Appendix. The Appendix includes anoverview of the framework for thinking aboutgood workplaces for mature workers, a listof the case examples, a list of the former andmost recent AARP Best Employers mentionedin this report, and a list of all former andmost recent AARP Best Employers.


Setting the StageToday’s business leaders depend on valid,reliable information to make workforcedecisions that are in keeping with corporatevalues and business goals. The humanresource professional’s task is to establish agood workplace for mature workers byunderstanding the demographic context,identifying challenges, and finding ways tomeet the workforce’s needs, including thoseof mature workers. This chapter provides abackdrop for the study of best practices bydescribing current demographic trends andhow these trends will present challenges foremployers and employees.

The age mix of the population and laborforce is shifting. The new demographicspresent challenges and opportunities foremployers. The challenges are particularlygreat for employers whose workforces arematuring more rapidly than the population at

large. These employers face cost andcompetitive pressures as well as potentiallabor and talent shortages. In responding tothe challenges, employers need to considerthe characteristics, needs, and perspectivesof mature workers.

Encouragingly, a recent AARP study on theneeds of the mature workforce showed thatmany mature workers plan to remain in thelabor force past traditional retirement ageand are willing to work in the very industriesthat currently are experiencing labor shortages.9

Those industries include healthcare, education,financial services, and other professional andbusiness services, to name a few. However,mature workers are a diverse segment of thepopulation, and the discussion below looksat differences by career profile and age.

Demographic ContextIn the last decade, the labor force aged 55and older grew rapidly; it will grow even


Table 1Growth in the Total Labor Force and the Labor Force Aged 55 and Older

% Change in Total % Change in Aged 55+ Period Labor Force Labor Force

1982–1992 16.3 -.2

1992–2002 11.3 34.4

2002–2012 (projected) 12.0 49.3

Source: Mitra Toossi, “Labor Force Projections to 2012: The Graying of the U.S. Workforce,” Monthly LaborReview, February 2004.

9 Source: AARP, Staying Ahead of the Curve 2003: The AARP Working in Retirement Study, Washington, DC: AARP, 2003.

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more rapidly in the next decade. While thetotal labor force is expected to grow by only12% from 2002 to 2012, workers aged 55and older will grow by nearly 50%.

Table 1 illustrates workforce growth andcompares growth rates in the coming decadewith the two prior decades. It shows that thedemographic change in the decade ahead differsfrom what happened in the last two decades.

The impact of the changes will be far greateron some organizations than on others.Hardest hit will be businesses that encouragelong service, have had relatively little hiring inrecent years, and underwent majordownsizing in the 1980s and 1990s. Forexample, the median age of the labor force

increased from 36.6 in 1992 to 40.0 in2002.10 However, in the utilities sector it isnot unusual to see an average employee ageof 47-49.11 This is an example of what canbe expected in other industries with a cultureof long tenure and slow growth ordownsizing in the past two decades.

For decades after World War II, labor forceparticipation rates for the older populationdeclined. Around 1985, rates leveled off;they have been increasing since then. TheDepartment of Labor projects further rateincreases, as shown in Table 2.

In the future, organizations will employ moreolder workers. In some organizations, a verylarge percentage of the skilled labor force


Table 2Labor Force Participation Rates by Age and Sex, 1982–2002 and Projected to 2012 (in percentages)

Rates for Men Aged 55–64 Aged 65–74 Aged 75+

1982 70.2 22.5 8.5

1992 67.0 21.1 7.3

2002 69.2 25.5 7.6

2012 projected 69.9 29.1 8.2

Rates for Women

1982 41.8 11.3 2.8

1992 46.5 12.5 2.8

2002 55.2 16.1 3.5

2012 projected 60.6 18.9 4.1

Source: Mitra Toossi, “Labor Force Projections to 2012: The Graying of the U.S. Workforce,” Monthly LaborReview, February 2004.


11 Source: Mercer Human Resource Consulting, unpublished data.

will be mature. As current workers reachretirement age, there will be fewerreplacement workers. Labor shortages willput recruitment and retention of employeesin the forefront for many employers. Theseemerging trends will present employers withvarious challenges.

Challenges Facing EmployersBecause of potential talent shortages,employers need to focus on talentmanagement, recruitment and retention, andproductivity. This report uses comments inthe 2004 AARP Best Employers applicationsto highlight the challenges facing employers:

On the aging workforce, Deere &Company, Moline, IL, said:We continue to value mature, experiencedemployees to fill the gap that exists fromthe lack of hiring that we saw duringsignificant periods of the 1980s and1990s. We find that we can leverage theexperiences that these folks have had withother organizations. Our demographics aresuch that we will lose over half of ourworkforce in the next 10 years toretirement, so we continue to motivate ourmature workers to remain, add value toour business, and pass on valuableinformation to new employees.12

The issues raised by Deere & Company arecommon in the heavy equipmentmanufacturing, utilities, and aerospaceindustries. These industries rely heavily on askilled labor force and employ significantly moremature workers than other industries do.

Consequently, they face serious talent issues.

The age distribution of the workforce inthese industries is a result of past hiringpatterns related to general competition andbusiness pressure, foreign competition forthe manufacturers, deregulation for theutilities, and defense budget cuts in theaerospace industry. An added factor for someof these companies is low supply of newtalent with the specialized skills they need.This is particularly true of the utility industry,which needs nuclear engineers.

The need to transfer expertise fromexperienced to newer employees is not anew issue and not one caused solely bydemographics. However, currentdemographic projections make it increasinglyimportant to address this issue. Otherindustries also will face this challenge.

On business pressures, Scripps Healthof San Diego, CA, said: The healthcare industry is a growthindustry and is faced daily with thedaunting challenge of finding and hiringskilled healthcare professionals from alimited talent pool and then retaining thehighly skilled and trained employees.

The healthcare industry must be preparedto rapidly respond to changes in order tomeet the needs of patients, customers,and employees. Elimination of positionsoccurs in healthcare as a result of budgetconstraints, reorganizations, outsourcing,cost containment efforts, consolidation offunctions or other business reasons.


12 Source: 2004 AARP Best Employers applications.

Unlike corporate enterprises in high-techor other business sectors, the Californianot-for-profit healthcare environment isone where hospitals struggle just to keeptheir doors open. Rising costs, combinedwith low reimbursement from healthinsurance plans, unfunded governmentmandates, and steady reductions in federaland state assistance, make it difficult tobalance employee needs with needs formedical equipment and investment in newfacilities and technologies.13

The Scripps Health statement raises severalkey points:

• Business pressures related to constraintson payments from customers and payers.

• The need to recruit aggressively, retainemployees (particularly those in hard-to-fill

positions), and eliminate some positions.

• Competition for resources to supportemployee programs and other needs.

• Increasing cost of equipment,pharmaceuticals, and labor.

These pressures apply not only in healthcarebut also in many other types of businesses.Publicly owned companies face pressuresfrom investors. Not-for-profits that dependon charitable contributions face pressures toraise revenue. Organizations that depend ongovernment funds face pressures like thosedescribed by Scripps Health above.

Issues of a Maturing WorkforceIn many cases, mature workers are nodifferent from other workers. In other cases,they do differ and may offer specialadvantages and added challenges, as thisanalysis has shown. For example:

• Mature workers generally have moreexperience and wisdom. This can be veryvaluable at times, particularly in jobsrequiring a great deal of firm-specifichuman capital.14

• Mature workers can be more patient andtolerant.

• Long-service workers have intellectualcapital that is important to the business; itis not always institutionalized and may nottransfer well.


13 Source: 2004 AARP Best Employers applications and subsequent communication with the employer.

14 Firm-specific human capital: The value of employee attributes and qualities that are unique to a single firm. (Source: Mercer Human Resource Consulting)

• Long-service workers may have importantcontacts and relationships with customers,suppliers, and others.

• The career futures of older workers tendto differ from those of younger workers.Older workers know they will be leaving,and some will want to do so in stages.

• Succession planning is particularlyimportant with an aging workforcebecause more people will need to bereplaced. The options for replacementneed to be integrated with the options forthose who would rather retire in stages.

• Financial and life planning needs differ byage of worker.

• Employees with inadequate resources andbenefits may wish to retire but feeltrapped into continued work.

• Health issues are different. There are nolonger maternity claims, but there may bemore claims for chronic illnesses.

• Some workers will have difficulty at jobsthat require a great deal of strength andagility. The combination of greaterexperience and changing physical abilitymay mean greater productivity in somejobs and less in others.

• In jobs requiring technological skills, moretraining may be required for older workers.

• Costs, particularly for benefits, may rise.

• It is particularly important to have a goodsystem of performance evaluations toensure that workers of all ages are treatedfairly, minimize the risk of lawsuits, andprovide employers with employees capableof doing the job.

Employee Perspective This study does not address what workersbelieve is important. An earlier AARP studyincludes a section on what workers say theywant.15 Another AARP study looks atpeople’s vision for retirement, and its findingsreinforce the view that mature employees arechanging how they look at retirement in theface of growing financial and demographicchallenges. Nearly 70% of mature workerssay they plan to work at least part-time inretirement or never retire.16

Increasingly, the responsibility for financialsecurity in retirement is being shifted fromemployers and government to the employee.Working longer is one way to enhance thatsecurity.

Differing Needs and SituationsAmong Mature WorkersNot all mature workers are the same, anddifferent subgroups within this populationhave different needs. The mature workforcediffers by career profile, age, and relationshipto the current employer as described here:

• Career stage and relationship toemployer. Some mature workers are


15 Source: AARP, Update on the Older Worker, DD No. 97, 2003.

16 Source: AARP, Staying Ahead of the Curve 2003: The AARP Working in Retirement Study, Washington, DC: AARP, 2003.

career employees nearing retirement.Others were hired in mid-career and haveshort service. Still others are retirees ofother companies who now seek workduring retirement.

• Type of job relationship. Some matureworkers are full-time employees, some arelong-term employees reducing theirschedules as they near retirement, someare part-timers, some are temporary hourlyworkers hired by the day, and some arecontract workers hired by the project.

• Entitlement to benefits (often relatedto age and/or service). Workerscollecting retirement benefits from SocialSecurity and/or private pension plans butcontinuing to work have somewhatdifferent needs and preferences from thosewho are not collecting benefits because theirbenefits provide a base level of income.

• Type of job and the requirements ofthe job. Some jobs have heavy physicaldemands and others have virtually none.Some work must be done on a very definedschedule or in a defined place, but othershave considerable flexibility.

Differences in Employer/OlderWorker Issues by Career Relationshipto EmployerMature workers differ in terms of theirtenure and whether they have a careerrelationship with an employer. Thesedifferences relate to what is important indefining a good workplace for each group ofemployees. For employees having longrelationships with an employer, the employeris usually very much involved with

employees’ retirement security and identityas shown in Table 3.

A very long-term employee may offerincreasing ability and experience over timebut may also have changing needs andinterests. These needs and interests are likelyto differ from those of people hired later intheir careers and those of temporaryworkers. The table summarizes how variousaspects of the employer-employeerelationship differ for workers with differentcareer profiles.

Table 3 highlights important aspects of therelationship between the employer and theemployee. There are also business issuesrelated to diverse career profiles. Managingintellectual capital, a key business issue ofthis type, is discussed below.

Managing Intellectual Capital. As aconsequence of the changing demographics,many workers who have key specializedknowledge and organizational history as wellas important relationships are nearingretirement age. Their employers need tostrengthen their organization’s managementof intellectual capital to ensure that theknowledge and relationships of olderemployees are not lost. Methods to do thisinclude:

• Building formal systems that captureknowledge.

• Encouraging workers with key knowledgeto stay and help other workers gainknowledge.

• Advancing other workers to the rightpositions.



Table 3Needs of Maturing Workers by Career Relationship

Late-Career HiresLong-Service (Including Retirees TemporaryCareer Employees Mid-Career Hires Returning to Work) Workers

Earnings

CareerProgresswith Firm

RetirementSecurity

Fair compensation isimportant to bothemployer and employee

Compensation shouldreflect currentassignment andperformance






For temporary workers,pay is often at a daily orhourly rate

The individual decideswhat is personallyacceptable pay whenchoosing temporarywork

Very important to bothemployee and employer

Probably hired into a position with a long-term career path similar to that of current position

Not often an issue There is no opportunityto progress withinindividual temporaryassignments, but anindividual can seek a series of temporaryassignments thatprovide for someprogress

Employer plays majorrole in retirementsecurity—retirement-income and healthprograms are of greatimportance to employee

Level of benefits helps define realisticretirement options

Asset accumulationprograms likely to beimportant

Important but not at same level as for career employee

Level of benefits plusother resources helpdefine realisticretirement options

One of the majormotivations inrelationship often is to supplementretirement package

The employer would notprovide a retirementplan or benefit unlessthe work was coveredby a multi-employerplan, so generally it isup to workers to providefor their own retirementsecurity

These methods could apply to many long-service career employees and to somemid-career hires.

Some skills are hard to replace even thoughspecific knowledge of the firm, its history,and products is not an issue. Industries withlooming talent shortages include thoseemploying nurses and other health specialists,nuclear engineers, machinists, and researchscientists, as well as many other skilledworkers, both professional and blue collar.

Matching Programs to Desired CareerProfiles. Some organizations seek workers

who will spend their entire careers with theorganization. They value long service andsupport it through programs and culture.These firms focus on retention and what isimportant to career employees. Many of theAARP Best Employers have such programs.

Workers such as temporary employees donot value long-term employment. For them,programs with more immediate payoff aremost important.

Another way to look at variations in the matureworkforce is by age. Workers at differentages can fit into any of the career profiles.


Table 3(continued)

Late-Career HiresLong-Service (Including Retirees TemporaryCareer Employees Mid-Career Hires Returning to Work) Workers

HealthBenefits

Flexible WorkOptions(includinglevel of commitment,schedule, place,and duties)

Training

Source: Mercer Human Resource Consulting.

Current benefits arevery important

Current benefits arevery important

Unless health benefitsare provided in a priorretirement package orthrough a spouse, theyare important toemployee

Although healthcoverage is veryimportant to the worker,it is not generallyprovided

Importance depends onindividual situation

Importance depends onindividual situation

May be key factor inchoosing a job

Temporary work is aflexible work option

Continued training isimportant to meetingchanging workplace and needs

Continued training isimportant to meetingchanging workplace and needs

Training, other than incompany systems, is less likely for shorterduration employees

Training by employer is unlikely

Some temp servicesoffer training

Applying the Framework to DifferentGroups of Employees by Age The age 55 and older population is aheterogeneous group. Employment needsand interests in that population will vary,especially by age. In general, the older theworker, the greater the interest in reducedhours and plans for retirement.

In some fields, however, labor forceparticipation rates at even advanced agesremain high. Engineers and scientists oftenwork quite late in life. Data for these workersprovide insight on what people who are highlyengaged and have very good options arelikely to do. Exhibit 1 shows labor forceparticipation of engineers and scientists withdoctoral degrees by age group. About 25% of

scientists and engineers are still working on apart-time or a full-time basis at ages 70–75.

Retirement plans and other benefit programsinfluence decisions about work afterretirement. Changes in resources can begradual or can depend on the provisions offinancial security programs. Eligibility is asfollows for major programs:

• Age 65. Eligibility for Medicare.

• Social Security normal retirement age.The age at which a worker can collect fullSocial Security benefits and also continueworking without losing benefits due toexcess earnings.

• Age 62. Eligibility for actuarially reducedSocial Security benefits as an early retiree.


Exhibit 1Related Information: Phasing Out in ActionScientists and Engineers Working, by Age

Source: Robert P. Morgan, Older Doctoral Scientists and Engineers: Selected Labor Force Characteristics, NationalScience Foundation, 2002.

100%

80%

60%

40%

20%

0%

Under 35 35–39 40–44 45–49 50–54 55–59 60–64 65–69 70–75

Full-time Part-time Unemployed Not in labor force

Employer programs also have eligibilitycriteria, such as a combination of age andyears of service, that influence decisions byemployees. These criteria may be associatedwith eligibility for the following benefits:

• Unreduced benefits under a companypension plan.

• Early retirement benefits.

• Full retirement benefits.

• Retiree health benefits.

Additionally, some workers may time theirretirement to coincide with the date at whichhealth benefits provided under COBRA willcover a person until he or she becomeseligible for Medicare.

The above factors link directly to theavailability of Social Security, employerpensions, and retiree health benefits. Theydo not link to savings. They relate to work inthat Social Security benefits may be receivedwhile continuing to work, depending oncertain age requirements.

Changes in work status or schedule aresometimes linked to specific benefit eligibilitypoints, but many are not. Certain workenvironments lend themselves well togradually phasing out of work.

In family businesses, the owning familymembers may adjust their roles over time. Infarming, the same thing is true—traditionally,people kept working in whatever role theycould. In sales jobs, there is also a commonpattern of phasing out.

Addressing the ChallengesThis report describes best practices andprovides examples of how organizations dealwith a maturing workforce. It also points outsome ways that organizations differ.

These are the most common challenges thatmany organizations will face:

• Competitive and market pressures fromhome and abroad.

• Customer and artificial constraints onwhat they can charge for their productsand services.

• The need to manage intellectual capitalmuch better.

• Major drain of some of their key talent asworkers retire.

• Inability to meet talent needs simply byrecruiting harder and faster.

• The need to manage talent better—identify needs, then recruit and retain theright people.

• The need to respond on a timely basis tocontinuous change.



Creating Good Workplaces forMature WorkersThe relationship between employer andemployee is multifaceted. Employers ofchoice are those who create a goodworkplace. This report looks at the notion ofwhat it is to be an employer of choice withina framework of four categories:

• Fundamentals. These are the policies,programs, and management practices that an employee is likely to regard asbasic requirements when choosing a long-term job.

• Core programs. These programs involvejob and career design, workplace design,hiring and recruiting, methods of leavingthe workforce, and formal workplaceflexibility programs offering non-traditionalwork schedules and arrangements. Theyrelate to the design and organization of a job.

• Programs of significant value. Theseprograms create economic value but notcareer opportunity. They are also importantin addressing the specific needs of matureworkers and deal with their concernsabout caregiving support, retirementsecurity, and healthcare. These also includeinformal workforce flexibility practices andlimited special purpose flexibility programstargeted at caregiving. These programsgive workers a better deal and are ofeconomic value to them.

• Extras. These programs may be a big helpto some people, but they do not speak tothe essence of the jobs or the employmentrelationship. They create nominaleconomic value for employees. Theyinclude programs such as eldercarereferral, retiree relations programs, andvolunteer service opportunities.

An employer of choice will offer programsthat are good for all workers, includingmature workers. However, because matureworkers may have different preferences and abilities, some offer programs that areparticularly good for or of interest to mature workers.

The FundamentalsJob seekers and employers of choice valuethese fundamentals of a long-term job:

• Long-term viability of the organization.

• A good economic security program withhealth benefits, accumulation of assets forretirement, and good disability benefits.More details on health and retirement arein a later chapter.

• Programs for fair pay, performanceevaluation, and career management.

• Honest management. (For example, a jobseeker would be reluctant to choose acompany that had been charged withcorporate accounting fraud.)

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These fundamentals apply to workers at allages and career stages; however, the degreeof importance that workers attach to eachwill vary depending on career stage andemployment relationship. The importance ofthe fundamentals is well known. They arediscussed further in Chapter 8.

Core ProgramsCore programs are the policies, programs,and management practices relating toopportunities in the job and movementbetween jobs. The main issues are:

• Adaptation of the job and workenvironment to the needs andinterests of mature workers. This mayinclude redesign of the physical

environment, the job and the schedule,and place options.

• Formalized flexible work options.Flexibility may mean things such as adifferent work schedule or place, work ona project basis, or a restructured job.

• Different options for moving intoretirement. Phased retirement, a specialform of flexibility, may include bothphasing into initial retirement and therehiring of retirees.

• Hiring of mature workers. Policies andactual practices related to hiring are a veryimportant core program.

Programs of Significant ValuePrograms of significant value in theworkplace include:

• Customized retirement education andplanning support.

• Retirement benefits greater than usual forthe job classification and that go beyondthe basics, including catch-upcontributions in 401(k) plans and retireehealth benefits.

• Employee Assistance Programs that focuson older worker issues.

• Eldercare with some company support andinformal workplace flexibility practices thatprovide employees with extra time offand/or flexible schedule options to care forother family members.


• Opportunity to purchase long-term careinsurance with an employer subsidy orthrough a group purchase discount.

• Fitness and wellness opportunities.

There is some overlap in programs ofsignificant value and core programs. Theycan both address the same issue, butprograms of significant value address theissue on a smaller scale. These scaled-downinitiatives support but do not enable job,career, and mobility options for matureworkers. For example, formal phasedretirement is considered a core program, andinformal rehire programs are consideredprograms of significant value. Programs thatallow workers to move between jobs areconsidered core programs whereas addedtime off for elder care is considered aprogram of significant value. See Appendix 1for mapping of best practices to categories.

A note about retiree health insurance: Thisbenefit is extremely valuable to employees atretirement. For most employees, though, it isnot a factor when choosing a job prior tomid-career, in part because it is usuallyprovided only to workers who remain with anemployer until they are eligible for retirement.Retirement benefit eligibility is usually acombination of age and period of service,such as age 55 with 15 years of service.

The ExtrasExtras in the workplace may include:

• Retiree relations programs.

• Generic retirement education that is notcustomized to the needs of particularemployee groups.

• Eldercare referrals.

• Programs that encourage volunteer servicein the community.

• Opportunity to purchase long-term careinsurance through a payroll deduction, but without the advantages of either anemployer subsidy or a group discount.


Core Programs Important toMature WorkersThis chapter describes the best practices injob and career design, workplace design,work options, hiring and recruiting, methodsof leaving the workforce, and maintaininghealth and productivity on the job.

It also includes ideas for improving programsthat respond directly to mature workers’needs, interests, and capabilities and that arecentral to jobs and career progress as well asgood business practice.

The areas most common among winningAARP Best Employers were phasedretirement, rehiring retirees, and educationaland career opportunities. These activitiessupport recruitment and retention. Programsencouraging retention included phasedretirement, modified workplaces, on-siterehabilitation, health benefits for part-timers,special assignments, job transfer opportunities,and training to help employees qualify fornew jobs or stay up to date.

In addition to findings from the winningAARP Best Employers applications, thischapter contains data from outside sources.

Best Practices in Core ProgramsBest practices in core programs for matureworkers are in four main categories: rehiringretirees, phased retirement, educationalopportunities, and specialized career options.What unified these categories is their relativeprevalence among winning companies aswell as how they advance the careers andwork/life interests of mature workers to anotable extent.

Rehiring Retirees.17 While severalcompanies offered informal programs torehire retired employees on a temporarybasis, partly as an informal phased retirementoption, certain companies offered formalretiree rehiring programs. In some cases,retirees were informed of employmentopportunities through retiree temp poolprograms that kept track of their availability,skills, and eligibility, while others werecontacted through more informal networks.These programs allowed companies to tap ahighly experienced group of retirees duringtimes of greater workforce need on shortnotice. The advantages of such programs areclear to both the companies and the retirees.

As an alternative, several companiesmaintained worksite temporary employment

17 Mercer Human Resource Consulting comments: There are significant legal issues with respect to benefit payments fromdefined benefit plans and the rehiring of retirees. Tax rules require that before the plan can pay benefits, there musthave been a bona fide termination of employment. Statutes and regulations do not provide a specific definition ofwhen a bona fide termination has occurred, and opinions from legal counsel on this issue vary. An employer mustconsider these legal risks before implementing any rehire program. The information from this research cites practicesreported by the AARP Best Employers. The aforementioned practices were taken at face value and are described as theywere reported in the program applications. Phased retirement is discussed further in Chapter 8.

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agencies and placed employees with moregeneralized skills in clerical andadministrative positions on a contract basis.Some companies used community serviceorganizations (such as AARP’s national hiringpartnerships) to recruit mature workers whowere not their retirees.

Comprehensive Phased Retirement.18 Incontrast to companies offering informalphased retirement programs, some winnershad instituted comprehensive phasedretirement programs with fairly widespreadavailability. They allowed employees to workas regular employees in the company atreduced hours while receiving theirretirement benefits. The most elaborate ofthese programs also took into account a keyelement of the retirement process—thetransition of knowledge to replacementworkers. In these programs, employees beingphased out were paired with theirreplacements. For the remaining transitionperiod, prospective retirees were encouragedto mentor their successors.

Educational and Training Opportunitiesfor Mature Workers. A common trait ofwinning companies was their commitment totraining. Some companies targeted training,either refresher training or comprehensive

training programs, specifically to matureworkers.

Refresher training was most common forengineers and nurses, who were givenopportunities to learn new developments intheir fields or review previous training andpractices after being away from the workforce.

The second category of training,comprehensive training programs, includedfull reimbursement for post-secondarytraining and professional development forsenior leaders and managers.

Career Opportunities for MatureWorkers. A few companies, includingseveral professional service and healthcarefirms, have created special careeropportunities for mature workers. Theseopportunities were typically crafted to takeadvantage of the experience characteristic ofmature workers. Off-site “community”assignments for older workers, such asworking in local charities to enhance thepublic image of the company, were oneexample of such opportunities. Another wasto offer mature workers “team leader”responsibilities on the assumption that theywould be a steadying influence on junioremployees. Dovetailing with these careeropportunities were mentoring programs with

18 Mercer Human Resource Consulting comments: There are significant legal constraints affecting the payment ofretirement benefits to phased retirees. For example, under a defined benefit plan qualified under the Internal RevenueCode, in-service distributions are prohibited prior to a plan’s normal retirement age. More flexibility is possible withrespect to some defined contribution plans. The employer must consider these and other legal issues beforeimplementing any phased retirement program. It should be noted that the information provided by the AARP BestEmployers about their phased retirement practices did not provide enough detail to understand how the payment ofpensions is managed. Some organizations are believed to have had only defined contribution plans. This wasinvestigated further for some companies and cited in the case studies. The information from this research citespractices reported by the AARP Best Employers. These practices have not been independently verified. Phasedretirement is discussed further in Chapter 8.


financial incentives for long-service workersto “pair up” with junior employees to helpwith their transition into the workplace.

The above discussion provided an overviewof the best practices among the coreprograms. The discussion below expands onsome of these areas and provides examplesand case studies in order to provideemployers with more concrete andactionable ideas.

Job and Career Design Job and career design are important toemployee and employer alike. This sectioncontains case examples illustrating bestpractices in several areas, including workoptions, movement between jobs,mentoring, and moving into retirement.

Flexible Work Options and Environment.Alternative work options include alternativesfor schedule, place, and assignment.Employee research reveals that flexibility is animportant priority for mature workers. Mostof the companies in the study offer part-timeand alternative work options. Alternativeassignments are less common. Somecompanies also allow transferring betweenjobs and shifting assignments. For a longerdiscussion on flexibility and how it can beapplied in different settings, see Chapter 8.

Case Example 5-1: OutsideOpportunities for Mature Workers atThe Principal Financial Group, DesMoines, IAThe Principal Financial Group, a repeatwinner, reported two programs that provide

temporary transfer opportunities formanagers and other senior-level employeesso that they could work at the local offices ofa charity, the United Way, and ininternational assignments. While posts at theUnited Way are for 2–3 months, theinternational assignments are for 2–3 years.Unlike management training programs thataim to cycle newer employees through abroad range of positions, these programstarget more experienced and therefore olderworkers. They receive job and transferopportunities that would not otherwise beavailable to them. The posts in charities alsoserve to promote the company. Source: AARP Best Employers applications andsubsequent communication with the employer.

Case Example 5-2: Job Mobility atDeere & Company, Moline, IL, andThe MITRE Corporation, Bedford,MA/McLean, VA Deere & Company, a repeat winner, reportsthat in 2004 it launched “a self-nominationprocess for job openings for careermovement.” The company has “many teamand special assignments that are provided fordevelopment, along with task forces,presentations and steering committees.” As part of the annual performance reviewprocess, managers are encouraged to seekopportunities for movement with employees.The advantage is that mature workers receiveopportunities for mobility and skill-buildingthat are institutionalized in the company,something that is fairly uncommon in otherorganizations.


MITRE Corporation, another repeat winner,allows employees to “change jobs withoutchanging employers.” This initiative isdesigned to encourage internal transfers.Similar to Deere & Company, MITREencourages managers to offer 8–10% ofstaff an opportunity to transfer to a newinternal job each year. While not explicitlyaimed at mature workers, this policy allowsworkers of all ages opportunities to movelaterally and to gain a broader set ofexperiences. Such policies can lead to higherjob satisfaction, greater employeecommitment, and a broader knowledgebase. There is a risk, however, whenemployees are transferred to new roles toooften. It could reduce their ability toefficiently complete longer-term projects.Source: AARP Best Employers applications.

Mentoring.19 Mentoring increasesopportunities to transfer skills while creatingspecial assignments and preserving importantknowledge. Mentoring is included in coreprograms because it can be important increating and expanding opportunities.Mentoring helps an organization transferknowledge and advice that are not alwaysconveyed through normal training. It alsohelps companies solve problems that couldotherwise block productivity. Mentoring isimportant to employees being mentoredbecause it helps their career growth. It also

can be a very satisfying experience for thementor. In some cases, it can help a mentoruse skills that otherwise might not be used.

Case Example 5-3: MentoringPrograms at Adecco EmploymentServices, Melville, NY; Baptist HealthSouth Florida, Coral Gables, FL; andFarmers Insurance Group ofCompanies, Los Angeles, CASeveral winning companies reportedmentoring programs. These programsprovide ways to leverage the institutionalknowledge of older workers to the benefit ofthemselves, junior employees, and thecompany as a whole. These practices may beformal or informal.

Adecco Employment Services matchesmature and experienced branch managerswith new branch managers to counsel themon strategies and tactics for success. Thisprogram also brings new office supervisorstogether with more experienced supervisorsfor career counseling and mentoring.

Baptist Health South Florida goes a stepfurther with its Preceptor (mentoring)Program. It gives financial incentives to seniornursing staff who provide guidance toassigned junior colleagues.

At Farmers Insurance Group of Companies,more experienced workers can be matchedwith less experienced employees to help

19 Mercer Human Resource Consulting comments: Caution is needed in planning and managing mentoring programs.Mentoring can be very important to individual growth. However, formal programs may not work. The mentor-menteerelationship is hard to force. Some mentoring programs are ineffective and others are primarily window dressing.Another pitfall is to ask people to mentor others but not offer any reward or credit for doing so. “Extra duties”assigned to people are often ignored if they do not carry rewards.


them meet personal and professional goals.For the mentor, this is an opportunity to havemeaningful interaction with someone whomay not be in the same work unit.

These programs have a range of financial,social, and professional benefits for the olderworker. They also recognize the value thatolder employees bring to the workplace. Inaddition, the programs benefit employersand other employees by facilitating theexchange of company-specific andprofessional knowledge on the job. Source: AARP Best Employers applications and follow-upcommunication with the employers.

Moving into Retirement. For many people,the move to retirement is gradual. Thefollowing examples illustrate threeapproaches to moving into retirement:phased retirement, phased retirement andknowledge transfer, and rehiring retirees. Formore about phased retirement and rehirepolices, including some cautions about thelegal uncertainties, see Chapter 8.

Many of the AARP Best Employers offeredsome form of phased retirement. However,the institution of phased retirement andways for employees to take advantage ofthese options differed widely. Phasedretirement benefits both the employee andthe employer. Employees get to movegradually into retirement, while employersavoid the sudden loss of valuable experienceand company-specific knowledge. Ideally,phased retirement options allow departingemployees to transfer firm-specificknowledge and relationships from olderworkers to younger replacements.

Case Example 5-4: Phased RetirementOptions Of the AARP Best Employers with phasedretirement programs, several allowemployees to collect full retirement benefitsand receive health and ancillary benefitswhile continuing to work on a part-timebasis or at reduced hours. This is especiallytrue among healthcare organizations. SSMHealth Care, St. Louis, MO, and BonSecours Richmond Health System,Richmond, VA, allow their long-tenuredemployees to do this once they qualify forretirement. Other winners, such as St.


Mary’s Medical Center, Huntington, WV,adjust pension calculations to allow workersin their final years of employment to reducehours without decreasing their final pensionbenefit. St. Mary’s notes that these optionsare typically taken by mature workers whohave not yet reached retirement age. Itallows mature workers to cut down on theirhours without risking loss of retirementbenefits in the final years of theiremployment. This particular program, in fact,was influenced by employee demand.

A different aspect of phased retirement dealswith work schedules only, as opposed topension calculations. Some companies allowlong-tenured and older employees to staggeror reduce their work hours, often to part-time or per-diem status, without jeopardizingnon-pension benefits that otherwise wouldnot be available to part-time workers. Severalwinning companies had formal programsthat fit this profile, while others had informalarrangements that were implemented at thediscretion of individual managers.

Additional practices encourage work afterretirement but not through formal phasedretirement options. These practicesencourage the hiring of retired workers inpart-time and contracting positions. Theseworkers have jobs that are similar to whatthey had before retirement, but they receivethe pay and benefits of part-time employees.Such arrangements offer flexibility in workoptions as employees begin retirement and

can be attractive to smaller firms whereelaborate phased-retirement planning isunrealistic. Examples of these arrangementswere reported by several winners, includingAdecco Employment Services and BaptistHealth South Florida. Source: AARP Best Employers applications and follow-upcommunication with the employers.

Case Example 5-5: KnowledgeTransfer Paired with PhasedRetirement at Pinnacle West CapitalCorporation, Phoenix, AZOne of the objectives of a phased retirementprogram is to aid in the “passing on” ofimportant knowledge that many matureemployees have. One winner, Pinnacle WestCapital, has a knowledge-transfer programwhereby a soon-to-retire employee trains hisor her replacement within a certain time andhas considerable flexibility during this time toarrange his or her work schedule. Employeesdo not have formal rules or guidelines aboutwhat to share and how, but they are stronglyencouraged to let others know when theyare departing and what knowledge they wishto transfer beforehand. Pinnacle West Capitalattributes, in part, its very high customersatisfaction scores to its programs ofknowledge sharing and employee transition.Through these programs, both the companyand the employee reap benefits during theretirement process.Source: AARP Best Employers applications and follow-upcommunication with the employer.


Case Example 5-6: Rehiring Retireesat AARP Winners Hoffmann-La Roche,Inc., Nutley, NJ; The MITRECorporation, Bedford, MA/McLean,VA; and St. Mary’s Medical Center,Huntington, WVSeveral winning companies target retirees intheir recruitment efforts. Their programsinclude hiring retirees as temporary andreplacement workers and creating pools ofretirees to call on in times of increased labordemand. Other programs reintroduce retireesas full-time participants in the workforce.

Hoffmann-La Roche places former andretired employees in temporary jobs. MITRECorporation’s “Reserves at the Ready”program established a "part-time on call"group from company retirees. In thisprogram, employees are connected to thedepartment from which they retired and maybe called back to work on a part-time basis.MITRE Corporation has found rehiringparticularly useful for large projects,mentoring new employees, and staffingshort-term and one-time tasks. St. Mary’sMedical Center targets nurses to encouragere-entry training and rehiring with a flexiblework schedule. The program is intended tomeet the personal work/life situation ofretired employees and employees returningto the workforce after a long absence. St.Mary’s Medical Center reports particularsuccess with this program, noting that manyreturning workers prefer the part-time workoption. In addition, returning mature workersbring a wealth of experience to the job thatnew entrants do not have.

The many advantages of rehiring retiredemployees include their proven job skills andfamiliarity with the existing culture, norms,and practices. It makes business sense to doso. Programs such as these benefit all partiesand take advantage of an otherwiseuntapped resource. Source: AARP Best Employers applications and follow-upcommunication with the employers.

For more discussion about phased retirementand rehire polices as well as tips forimplementation of a program and somecautions about the legal uncertainties, seeChapter 8.

Workplace Design and ModificationJust as jobs are important to workers, so isthe workplace. Workplaces vary. In somecases, the workplace is inconvenient for allbut even more so for mature workers. Forexample, some workers may have somevision problems. Their employers can makesure the lighting is adequate and setstandards for larger type on companydocuments and on computer screens.

Main considerations include lighting, noiseand sound levels, and lifting or standingrequired for jobs.

Work environments can be modified for all orspecial modifications can be made to fit theneeds of individual workers, sometimes inresponse to an individual request or disability.

General Modifications in the Workplace.More comprehensive programs look at theworkplace and the way work is done. Asprocesses and manufacturing become more


automated, workplaces are modified on aregular basis. Although workplacemodification has not yet been a commonresponse to the maturing workforce, it maymake the workplace much less demandingwith regard to physical work. Two casestudies follow.

Case Example 5-7: WorkplaceRedesign at Baptist Health SouthFlorida, Coral Gables, FLOne winner took considerable action to helplong-service nurses avoid muscular or skeletalinjury when moving patients. Baptist HealthSouth Florida installed new patient bedsthroughout its hospital system to “minimizethe constant stresses and strains nursesendure by lifting and moving their patients.”

These beds, which fold into a sitting positionso patients can get out of bed more easily,were purchased with donated funds.Workplace redesign such as this is anexample of changing the workspace toaccommodate mature workers in a way that benefits both workers and employers.Redesign often reduces worker injuries,improves patient care, and avoids the cost of workers’ compensation claims andreplacement of injured workers.

Workplace modification allows Baptist HealthSouth Florida to keep using a key group oftalented employees who otherwise would have trouble doing their jobs. It is an importantsource of productivity improvement.Source: AARP Best Employers applications.

Case Example 5-8: Ergonomics: AnInvestment in Safety and ProductivityInternational Truck and Engine Corporationturned its manufacturing process upsidedown, literally, to create a safe andcomfortable environment for employees. Tostart the manufacturing process for their twonew lines of trucks, International set up atask force of employees from variousdepartments. The task force concluded thatthe awkwardness of building trucks fromunderneath caused frequent work-relatedinjuries.

Their solution: turn the chassis upside downand replace heavy hand-held tools with moreergonomic suspended tools. Internationalemployees are much happier in the saferwork environment, and a happy worker


means a more productive worker. Work-related injuries are down, and managementis thrilled by the increase in productivity. Nowthe Springfield plant is one of the mostefficient plants in the nation, manufacturingover 150 trucks in an eight-hour shift.International has proven that resolvingergonomic issues to employees’ satisfactioncan be an inexpensive way to improve thecompany’s bottom line. Such changes alsoenable workers who otherwise would findspecific jobs too physically demanding tocontinue with these jobs and be productive. Source: Mercer information on good workplace practicesand information from International Truck and EngineCorporation.

General workplace modification is importantto employees because it enables them to dojobs that they could not do otherwise or thatthey would find stressful. Individualmodifications do the same, but for oneemployee at a time.

Modifications Responding to FocusedNeeds. Individual accommodations are alsoimportant to the employer and employee.They enable the organization to retain valuedtalent. For some employees, continued workis possible only with accommodations. Forothers, continued work would be possible, butit is much more attractive with modification.

Such modifications can be as simple as achange in lighting, a different kind of chair,or larger type on their computer screen.Changes may be more difficult toaccommodate workers who become

disabled. Options include rehabilitation andreturn to work or remaining on disability. Joband workplace design have an influence overwhether employees can return to work.Examples in this category follow.

Case Examples 5-9: IndividualAccommodations • Massachusetts Institute of Technology

(MIT), Cambridge, MA. MIT's DisabilitiesServices helped a mature employee whohad developed repetitive strain injury andvision impairment. They gave her anergonomic chair, text-enlarging software,voice-recognition software, and anergonomic keyboard and mouse.

• MITRE Corporation, Bedford, MA/McLean, VA. MITRE installed voice-activated software for an employee whohad developed carpal tunnel syndrome.This software allowed the employee tocontinue working.

• The Principal Financial Group, DesMoines, IA. The Principal purchased amagnicam to help an employee with visiondifficulties. The employee can place paperdocuments under a camera and view thedocuments on a TV monitor. The companyalso supplied a special chair to anemployee with Parkinson’s disease. Thechair has glides instead of wheels becausethe employee’s movements caused thewheels to move.

• Thomson West, Eagan, MN. Thecompany purchased an electric scooter foran employee who had walking problems.


The employee is now able to movethrough the building more easily.

• Pitney Bowes, Inc., Stamford, CT. Thecompany offered to retrain a matureemployee with a chronic heart condition.The employee had previously worked astrenuous job and then successfully movedto a less strenuous job that requiredcomputer skills.

• DentaQuest Ventures, Inc., Boston,MA. For an employee with carpal tunnelsyndrome, DentaQuest Ventures provideda new computer mouse and armrests thathelped the employee perform effectively.

• Adecco Employment Services, Melville,NY. A blind IT help desk analyst was givenspecial hardware and software as well as aworkstation large enough for his dog. Abuddy system helps him navigate thebuilding.

Source: AARP Best Employers applications.

With jobs that require strength, lifting, anddexterity, modification may not only enablemature workers to continue working longer butalso reduce injuries and increase productivity forall workers. Modification can be combined withrehabilitation. Best practices call for tailoringrehabilitation to each job situation.

Rehabilitation: Going Beyond JobModification. Job-site rehabilitation servicescan be a very effective way to helpemployees with short-term disabilities getback to work in the right settings. Theadvantages are both physical andpsychological. The therapist first gains a

detailed understanding of the employee’sspecific job requirements. The therapist canthen work with the supervisor to see if simplemodifications will make rehabilitation easier.

Case Example 5-10: Returning toWork: Healthy and Fit for WorkEmployees at International Truck and EngineCorporation can retire healthier than theywere on their first day on the job. That’sbecause the company provides worksitephysical therapy services for employeessuffering from work and non-work relatedillnesses and injuries. The company benefitsthrough facilitating a return-to-workprogram. After being off work for anaverage of nine months, 63% of employeesin the transitional return-to-work programimproved their health during the programand were able to return to work on a full-time basis three months later. The secret,according to International, is that thephysical therapist works with the employeeand the work environment. Because ofvariations in individual work environmentsand job requirements, the therapist’s criticaleye in observing the employee’s interactionwith the job requirements leads to a tailoredtreatment plan for each patient. An on-sitephysician enhances the team approach tocare management for rehab patients. Whilerehabilitation services are similar to offeringsoutside the workplace, the level of care inthe company program is comprehensive.Ongoing monitoring is facilitated byencouraging rehab patients to continueusing the state-of-art fitness facility, which isrun by the physical therapy staff. Seven out


of 10 fitness center members are formerand/or current rehab patients activelymaintaining their post-rehabilitation health. Source: Mercer information on good workplace practicesand information from International Truck and EngineCorporation.

Many companies promote safety on the jobas part of their injury managementprograms. Modifications to make theworkplace friendlier for employees withphysical limitations are part of this. Byteaming with the risk manager and industrialmedicine specialists, the human resourcemanager can meet several goals at once.

Training, Lifelong Learning, andProfessional DevelopmentIn this area, the most common changesfaced by employers relate to

• The structure of businesses as they mergeor enter new lines of business.

• Operations of businesses as they automateand restructure processes.

• Job requirements as people move into newroles.

These changes challenge employers. Themajority of AARP Best Employers maketraining available to their workers. However,training directed at mature workers is fairlyrare: few companies showed examples oftraining that targeted this group. Some dohowever; these examples follow.

Case Example 5-11: Lifelong Learning at The Principal FinancialGroup, Des Moines, IA, andEducational Opportunities at TheOhio State University Medical Center,Columbus, OHOne winner, The Ohio State UniversityMedical Center, is exceptional in thisregard, which may not be surprising given itssetting within an educational institution. TheMedical Center cited two programs for thecareer enhancement of mature workers. First,“Program 60+,”allows anyone over the ageof 60 (at the Medical Center or in thecommunity) to audit any college class free ofcharge. Second, the center offers the “BridgeProgram,” for mature workers who havebeen out of school for some time or whohave anxieties about returning to orbeginning college.

In another example, The Principal FinancialGroup created a program called “LifelongLearning.” Its employees are encouragedand, in fact, held accountable for upgradingtheir knowledge and skills throughout theircareers. Rather than focusing the trainingprograms on new hires and youngerworkers, The Principal advocates a career-long learning process. It enhances theeducational opportunities of long-service andolder workers. An example of this is itsManaging Diversity course, which includesexamples and a case study that focus on theneed and value of developing older workers.As part of its overall commitment toemployee development, The Principal isrevising its entire core curriculum. The revisedprogram will address leadership and


management, high performance, engagedemployees, business and financial acumen,corporate responsibility, and improvedproductivity (including wellness). ThePrincipal expects all employees to have anindividual development plan supportedthrough the company’s developmentconsultants and human resource generalists. Source: AARP Best Employers applications and follow-upcommunication with the employers.

Case Example 5-12: Partnering withLocal Colleges at Loudoun Healthcare,Inc., Leesburg, VAOne strategy for developing needed skills inscarce specialties is to collaborate with localeducational institutions. This option bringsthe classroom to the workplace, making itconvenient for current employees to receivetraining and to upgrade their skills. This isespecially true for technical and clinical skills thatare not easily taught through online offerings.

Loudoun Healthcare, a recent winner,designed this type of program with GeorgeMason University in Fairfax, VA. TheUniversity held classes in its Master ofScience in Nursing program at LoudounHealthcare facilities. Current employees areencouraged to join the program through atuition forgiveness program funded throughthe hospital. The organization reports thatthis opportunity to pursue continuededucation is a terrific retention and recruitingtool. Since the program began in 2001,dozens of nurses have furthered theirstudies. Through this best practice, LoudounHealthcare furthers the careers of allworkers, including mature workers, whileaddressing the need for more trained nurses.

Collaborating with local colleges will becomeincreasingly important in areas with scarceskills in the future. Examples are industriesthat employ machinists, carpenters,electricians, and other technicians.Traditionally, apprentice programs were usedto train workers for these jobs. However,many of these jobs are not favored bytoday’s entrants into the workforce. Source: AARP Best Employers applications and follow-upcommunication with the employer.

Culture and CommunicationA positive workplace culture, particularly one that values employee feedback andencourages open communication, can be the key to success when instituting newprograms. Such programs work in large partbecause people make them work.


Case Example 5-13: CorporateCultures Promoting Long Service: ThePALS (Personnel Achieving Long-TermService) Program at Children’s HealthSystem-Birmingham, Birmingham, ALLong service and age go hand in hand. Manyorganizational cultures that put a premiumon long service directly acknowledge thecontributions of mature workers. While mostcompanies have programs that celebrateanniversaries through award and recognitionprograms, a number of AARP Best Employersstood out in their culture of promoting longservice. Children’s Health System-Birmingham has the PALS (PersonnelAchieving Long-Term Service) program forlong-term employees. The group meetsmonthly for breakfast to discuss issues such as retirement and wellness. It also sponsorsphilanthropic activities.

While on the surface, programs such as theabove offer few explicit career-enhancingbenefits, they do provide material benefits(such as additional time off) as well as abroader recognition by the organization thatolder workers are valued for their skills andcontributions to the company as a whole.Source: AARP Best Employers applications.

Case Example 5-14: Corporate Culturesthat Value the Mature WorkerAARP Best Employers view their matureemployees as a resource to be cherishedrather than a liability to be minimized. Theytherefore gear their programs and practicestoward enhancing and enriching the careersof mature workers. Several examples of suchprograms and practices can be cited.

• Bon Secours Richmond Health System,Richmond, VA, included the Director ofSenior Services on its diversity teamspecifically to address senior employee issues.

• The Vanguard Group, Valley Forge, PA,provides diversity training on age issues forits managers.

• Scripps Health, San Diego, CA, trainsmanagers as to the motivators, demotivators,and communication preferences andstrategies for various age groups, includingmature workers as well as new entrantsinto the workforce. This training is called“Crossing the Generation Chasm.”

• Baptist Health South Florida, CoralGables, FL, made a commitment tomature workers through its “EmployeeAdvisory Groups.” Besides diversity classes,this program deals with age-related issuesand gives mature workers an opportunityto offer feedback.

Programs like these foster diversity awarenessand give mature workers a chance to presenttheir concerns. These programs communicateto all employees that the organization and itsleaders value mature workers and recognizetheir needs.Source: AARP Best Employers applications and follow-upcommunication with the employers.

Understanding Organizational Culture.Some organizations have a culture in conflictwith the changes that an aging workforcemay require. Because an organization’sculture cannot change overnight, it is veryimportant to create a plan to foster a culturethat supports demographic changes and the


company’s strategies for addressing them. Tobegin with, organizations need tounderstand current cultural perceptions of allage groups in areas that will becomeincreasingly important in the new workplace.Companies need to ask:

• Is the organization “friendly” toemployees of all ages?

• Does the organization view all workers,including mature workers, as potentialimportant contributors to business success?

• Is it “safe” for more experienced workersto share their knowledge?

• Does the organization have spoken orunspoken values that support orundermine the effectiveness of its moreexperienced workers?

• Is the organization attractive to long-service, mid-career, and late-careeremployees and recruits?

• Is the environment conducive toalternative work arrangements?

• Do rewards, including compensation, alignwell with the culture?

When change is needed, organizations cananswer these questions using bothqualitative and quantitative tools such asemployee surveys, focus groups, andtargeted interviews along with demographicanalysis. Then the organization can pinpointproblem areas, target actions to changevalues and attitudes, and measure progress.

Benefits for Part-Time WorkersEmployees consider many factors in decidingwhether to work on a part-time basis.Employer-provided health benefits are oftena key consideration.

Case Example 5-15: Changing BenefitRequirements for Part-Timers atMassachusetts Institute of Technology(MIT), Cambridge, MA, and StanleyConsultants, Inc., Muscatine, IABecause mature workers have differentneeds, not all mature workers will find part-time work attractive. A major reason isbenefits eligibility, especially for health carecoverage. Some mature workers may desireto work part-time but may be reluctant to doso if such a change in status would lead to aloss of health insurance. Several of the AARPBest Employers have found ways to addressthis issue by making their part-time staffeligible for benefits. Levels of coverage andrequired employee contributions vary byemployer. For example, at MIT, employeeswho work at least half time are eligible forthe same benefits at the same cost as full-time employees. At Stanley Consultants,part-timers pay pro-rated benefit premiumsthat are based on the number of hours thatthey work. In these cases, employerspromote expanded benefit options to part-timers in order to recruit older workers. Source: AARP Best Employers applications.


Providing health benefits for part-timeworkers is difficult for some businessesbecause health insurance can be expensive.For employers, offering health benefits canbe a mixed blessing, even without the costconsiderations. Doing so helps attract matureworkers, but it also may enable some full-timers to switch to part-time work. Suchprograms can either support or hurt thetalent management objectives of a firm,depending on the situation.

Recruiting PracticesA focus on mature worker hiring is found intemporary agencies, in the rehiring ofretirees, and in specialized programs formature-worker hiring. Among the AARP BestEmployers, those with specific skill shortages,such as healthcare organizations, were morelikely to focus on rehire of retirees generally.Most of the companies hire from a variety ofplaces, but only a few target matureworkers. Case examples follow.

Case Example 5-16: Attracting OlderWorkers with the “Bridgement ofService” Policy at Baptist HealthSouth Florida, Coral Gables, FLAs companies in tight labor markets seekways to expand their pool of potentialemployees, repeat winner Baptist HealthSouth Florida devised a way to makereturning to employment more attractive forlong-service employees who had left. Itinstituted a “bridgement of service program”giving rehired employees credit for previousservice at the company. The credit can beapplied toward benefits eligibility, serviceawards, and time off. Employees who

returned within five years of leaving wereable to pick up where they left off in termsof accrued service. Baptist Health SouthFlorida reports that many mature workershave already taken advantage of this program.Practices such as these favor the matureworker, who tends to have longer service,while providing added inducement for recruitersseeking difficult-to-find skilled workers.Source: AARP Best Employers applications.

Case Example 5-17: Creative Hiring at Adecco Employment Services,Melville, NYAdecco Employment Services, anotherrepeat winner, uses creative hiring practicesto attract and place older people intemporary jobs. Called the RenaissanceProgram, it begins with special recruitmentmaterials to inform workers about thetraining and employment opportunities opento them as temporary employees. Adeccoalso offers recruits extra benefits. The programhelps mature workers who want to enter theworkforce on a temporary basis, and it createsa larger pool of potential recruits for Adecco.Source: AARP Best Employers applications.


Case Example 5-18: CommunityPartnerships that CreateOpportunities for Mature WorkersOn February 6, 2004, The Home Depot andthe AARP Foundation launched a nationalpartnership to recruit and employexperienced people in various positions inHome Depot locations across the country. As part of that partnership, The Home Depotcollaborates with the AARP FoundationSenior Community Service EmploymentProgram (SCSEP). The National HiringPartnership is an integral part of SCSEP’semployer-based philosophy. SCSEP learnsabout Home Depot’s job opportunities,training requirements, application procedures,hiring trends, and work environment. SCSEPthen makes referrals and trains participantsto become more qualified applicants.

AARP Foundation SCSEP is a work-trainingprogram funded by the U.S. Department ofLabor and administered by the AARPFoundation for low-income people aged 55and older. It helps people in need restoretheir self-confidence and find a job. TodayAARP SCSEP is one of 10 national sponsorsof these programs. In the year ending June30, 2002, 49% of enrollees nationwide wereminorities and 13% were disabled.

Partnerships such as the one with HomeDepot help mature workers re-enter theworkforce and provide employers with access to a growing population of potentialemployees. The AARP Foundation isexpanding this model to provide informationto all mature job seekers, even those that do

not qualify for SCSEP. The Foundation willsoon be seeking applications from othercorporations interested in such hiringpartnerships. Source: AARP and Home Depot Web sites.

Locating jobs is a major concern for matureworkers. Many are displaced throughdownsizing, mergers, and offshoring ofwork. Others find their retirement savings tobe inadequate and decide to seek work afterretirement. Although some, such as nurses,have skills in high demand and manyoptions, many other groups have difficultyfinding work.

Health and Productivity— An OpportunityThis analysis of the applications showedgood employers providing health benefits,and in some cases supporting wellness.However, the applications provided littleinformation on the link between health andproductivity. Added research showed thatthere is such a link and that capitalizing on itrepresents a great opportunity for the future.A factor relating to productivity may be theuse of prescription drugs by older workers.Prescription drugs often have side effects andcause adverse reactions. Some people sufferfrom interactions when taking several drugsat the same time. In some cases, less thanoptimal prescription drug use can bedisabling and can reduce work performance.The following cases describe how somecompanies address these issues.


Case Example 5-19: The Burden ofAllergies in Heavy ManufacturingThe impact of seasonal allergies on thehealth, safety, and productivity of workersmay be overlooked, according to a recentstudy by International Truck and EngineCorporation. The Allergy Project studysought to improve the management ofallergies and understand the effect of allergieson productivity. The project included a varietyof educational components to improve themanagement of allergies. For example, thecompany distributed articles on allergies,posted information on company billboards,and called in a consulting allergist. It alsotold employees about the advantages anddisadvantages of different medications andthe benefits of taking medications as directed.

The study also looked at how allergiesaffected productivity. Productivity levelsdropped as spring and fall approached androse again when summer and winter arrived.The study revealed that employees diagnosedwith allergies and taking sedatingmedications were 4.2 times more likely tohave an accident at work. Looking beyondthe direct costs of pharmacy benefits provedto be valuable for both the employer and theemployee by leading to better workermanagement and greater health awareness,which may result in increased productivity. Source: Research published by International Truck and EngineCorporation. W. Bunn. “Burden of Allergies in ManufacturingEnvironment,” Journal of Occupational and EnvironmentalMedicine, vol. 45, September 2003.

The case studies above and below show howmaking prescription drug coverage more

generous and improving compliance withdirections for taking prescription drugs canimprove productivity.

Case Example 5-20: ImprovingPrescription Drug Benefits at PitneyBowes, Inc., Stamford, CTA number of years ago, Pitney Bowes, Inc.,restructured its prescription drug benefitprogram to a three-tier model and movedfrom co-payments to coinsurance rates of10%, 30%, and 50%. (Employees now havedifferent levels of coinsurance rates: 10%,25%, and 35%.) The highest tier ofcoinsurance applies to brand-name drugsthat have a generic alternative. This structurehas encouraged employees to purchasegeneric drugs, saving both the employee andemployer money.

After seeing some success with the move tothe three-tier model, Dr. Jack Mahoney, thefirm’s medical director, had a new idea. Henoticed that one consequence of increasinghealthcare costs was that patients were lesslikely to take medications as often asdirected. Dr. Mahoney modified theprescription drug formulary and moved somedrugs to Tier One (10% coinsurance) toreduce the cost for employees needing topurchase these drugs. The goal was toincrease medication compliance by reducingmedication costs and thereby improve healthoutcomes for patients with these conditions.Interim results show a decrease in medianhealthcare costs for asthma and diabetes of9 to 15%. Source: Wall Street Journal, May 10, 2004, and follow-upcommunication with the employer.

Injury management also can affect healthand productivity. As people age, theincidence of chronic illness increases. Chronicillness can lead to workplace injuries.However, the experience with workplaceinjuries may be quite different acrosscompanies. In companies with good injuryand accident prevention programs, matureworkers learn how to avoid injuries and mayhave lower accident rates than youngeremployees. Accident prevention occursthrough employee education and job andworkplace design.

SummaryThe AARP Best Employers offer manycommendable formal programs to supportflexible career and retirement options formature workers. These options include manyprograms that respond directly to matureworkers’ needs and interests, such as phasedretirement, rehiring retirees, mature worker-focused recruiting programs, restructuringjob environments, special assignments,mentoring, and training programs. The AARPBest Employers have been creative as theydeveloped these workplace alternatives.

However, there is room for furtherimprovement and innovation in coreprograms related to productivity.



Programs of Significant ValueUnlike the “core programs” in Chapter 5,programs of significant value do not relate to job design and do not create careeropportunities. Their economic value goesbeyond the basics of good and faircompensation and standard employeebenefits. These programs give matureworkers a better than average deal, especiallywhen they include retiree health benefits.

For employers, these programs are importantbecause they help recruit and retain matureworkers, an advantage in many ways, especiallywith a growing shortage of skilled workersand the impending retirement of boomers.

Best Practices in Programs ofSignificant ValueThe five main categories of programs ofsignificant value are highlighted below. Morepractices relate to recruiting and retainingmature workers than to making matureworkers more productive.

Compared to the AARP Best Employersrecognized in previous years, the 2004honorees appeared to be more focused onage and age-related issues. Such programswere conspicuously absent in earlier years.This suggests that employers are recognizingthe importance of having a matureworkforce. Many employers also realize thatthey will face different issues over the nextfew years as the workforce ages than theydid in the 1990s.

Preparing for Retirement. Many AARP BestEmployers offer programs that help workersprepare for retirement. Some are informal,phased retirement programs and others offereducation on retirement-related issues.

As discussed in Chapter 5, phased retirementcan take many forms, and differentcompanies have different programs. Someemployees create informal phased retirementarrangements using the flexible work optionsthat are available to all or most employees.This chapter describes these informal phasedretirement arrangements, which are oftenless comprehensive than those that would beconsidered core programs. Some of theseless comprehensive phased retirementprograms allow employees to work reducedhours without drawing from retirementbenefits. In these cases, employees are stillregular employees and are usually coveredunder ongoing employer-provided benefitprograms for active employees, includingretirement programs, health benefits, lifeinsurance and disability. They just workreduced hours, at reduced pay, as they movetoward full retirement. Often the same workand benefit options are available to allemployees, so they are not exclusively formature workers.

In other cases, employees are allowed toretire and begin collecting retirementbenefits. They then are rehired on atemporary or informal basis (withoutreceiving employee benefits that are providedto active employees). Rehired retirees not

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returning to the status of a regular employeereceive retirement benefits according to thecompany’s benefit plans and the pay orconsulting fees specified by the contract forservice between the company and theindividual. These informal types ofarrangements are rarely available to allemployees; rather, they tend to be offeredon an individual-by-individual basis.

In addition to the informal and discretionaryforms of phased retirement, severalemployers educate mature employees ontheir retirement options and the changes toexpect as they prepare for retirement. Mostof these practices consist of financialmanagement classes and training, with ascattering of training and education onretirement issues such as healthcare options,wellness issues, and family-related issues. Inmost cases, these classes align with theorganization’s business (e.g., financialservices, pastoral care, and healthcare). Theyusually are single or half-day seminars for allemployees, regardless of age. Notableexceptions are described below in separatecase examples below.

Expanded Benefit Offerings. This categorycenters on particularly generous benefitsoffered by some companies for matureworkers. Most involve finances. The mostcommon was allowing “catch-upcontributions” to 401(k) plans, legallyavailable only to workers aged 50 and older;the company may match the employee’s

contribution. Some companies offer long-term care insurance at a group purchasediscount or at rates subsidized by theemployer as well as flexible spendingaccounts for eldercare.20 In one exceptionalcase, the employer allowed employees toclaim a “legally domiciled adult” such as aparent as a dependent eligible for healthcarecoverage.

What unified this category was the targetingof benefit spending on mature workers. Thisindicates a conscious choice by the employerto provide benefits of importance to thisgroup in order to attract more workers orencourage current workers to stay longer.

Workplace Flexibility. Workplace flexibilitywas a repeated theme among best practicesof value to mature workers. Examples includejob sharing, paid time-off banks, flextime,and work-at-home options. Unlike the formalprograms that were categorized as “core”programs, these programs tended to bemore informal and at the discretion ofmanagers and supervisors. They also tend tobe limited, special purpose flexibilityprograms for caregiving.

• Job sharing allows two workers to sharethe same job, thus giving mature workers,including those reentering the workforce,a reduced work-hours option.

• Paid time-off banks allow employees to“donate” unused paid time-off to acentral “bank” that employees in need

20 A Flexible Spending Account is a benefit arrangement that allows pre-tax dollars to be deposited in a special accountfor use for specified purposes. These accounts are authorized under Section 125 of the U.S. Internal Revenue Code.


can draw on. Mature workers with familyconcerns such as caring for elderly parentsmay benefit greatly from this practice.

• Flextime gives mature workers greateroptions as to the timing of their work day,allowing them to choose the start andstop times for their work day withinestablished limits. This option also canserve as a stepping stone to retirement.This type of workplace flexibility can beseen as an additional work/life perk topersuade employees considering earlyretirement to stay employed longer.

• The option to work from home some or all of the time is available at a number ofservice-related companies. Like flextime,this practice gives mature workers greaterscheduling options. It also helps persuadeemployees considering early retirement tostay longer.

Best Practices in Age-Related EmployeeIssues. These types of best practices come intwo subgroups: training and education andpolicies and practices that address matureworker concerns.

Several 2003 and 2004 AARP Best Employersoffer programs to educate employees abouteldercare and other issues of concern, and totrain managers about age discrimination,workplace accommodations, and other mattersrelated to managing mature workers. Manysuch programs are half-day seminars andworkshops for certain groups in thecompany. Less common is education such asage diversity training required for all employees.

Some employers created Employee AdvisoryGroups, Policy Councils, and Inclusion TaskForces to hold forums on a broad spectrumof issues, including diversity. Winningcompanies provided concrete examples ofthe roles these forums play in advocating theneeds and concerns of mature workers.

Work-Related Training. Although work-related training was infrequently mentionedby the AARP Best Employers, a few winningcompanies demonstrated a commitment towork-related training. In most cases,companies with training programs in thiscategory offered them to all employees,including mature workers. Programs in thiscategory do not differentiate betweendifferent employee groups and,consequently, represent more generalizedtraining than the mature worker-targetedtraining opportunities described in Chapter 5.Because training programs in this categorytarget all employees, they are of greaterbenefit to mature workers than programsgeared to entry-level workers, who aretypically young. As a best practice, severalwinning companies pointed out that theirtraining programs were open to all workers


regardless of age. These companies said thatthey encouraged all employees to upgradetheir training as part of their yearlyperformance review.

The above discussion, which was based onthe analysis of the AARP Best Employersapplications, provided an overview of thebest practices among the programs ofsignificant value. The sections below expandon some of these best practices and provideexamples and case studies in order to providemore concrete and actionable ideas.

Retirement Benefits and ProgramsBeyond CashAs mentioned above, many winningcompanies enable their mature employees toprepare for a secure retirement financially.Examples follow.

Preparing for Retirement. Retirementplanning education is important. Retirementwithout adequate planning can lead retireesto unpleasant surprises such as the inabilityto maintain their pre-retirement standard ofliving and dependence on governmentprograms or family. Without good planningearly enough, some employees may discoverthey cannot afford to retire. To help with anorderly retirement process that meets theneeds of employers and employees, manyorganizations offer fairly sophisticatedfinancial planning seminars. Not surprisingly,the most comprehensive financial planningsupport was offered by employers in thefinancial services and banking sectors.Companies that do not have such obviousinternal expertise tended to bring in expertson a regular basis to counsel employees.

Case Example 6-1: Employee FinancialAdvice at The Principal FinancialGroup, Des Moines, IA; The CharlesStark Draper Laboratory, Inc.,Cambridge, MA; and Thomson West,Eagan, MNAt one end of the spectrum is the verycomprehensive offering of The PrincipalFinancial Group. The Principal has anemployee financial center that makes thefirm’s services available to all employees.While The Principal provides the same servicesto customers, employees pay lower fees.

As of 2002, Thomson West hostedquarterly one-hour group informationsessions for employees. After the sessions,employees may meet one-on-one with afinancial planner. This benefit is available to allemployees, presumably on an elective basis.

At The Charles Stark Draper Laboratory,employees may attend ongoing seminars onretirement planning, college savings,transitioning to retirement, healthy lifestyles,and estate planning. The financial planningcovers a range of topics instead of justmature worker issues such as retirement.

The foremost benefit of these programs iseducation of the workforce. Informedemployees make informed choices, and theypresumably draw greater personal andeconomic security from these choices. ForThe Principal, the program details what theorganization does as part of its corebusiness: retirement planning. Therefore,employees get a better sense of thecompany’s offering and the benefit topotential customers.


The trend away from traditional pensionplans to retirement plans that shift theresponsibility for retirement security from theemployer to the employee has increased theimportance of retirement planning. Source: AARP Best Employers applications andsubsequent communication with the employers.

Added Cash Benefits. In addition toplanning services and work options,companies also provide some benefits thateither target mature workers or focus onissues more likely to confront them. Twosuch benefits are “catch-up” contributions in401(k) plans and flexible spending accountsfor eldercare. With these benefit programs,employees use their own money in a moretax-efficient way to improve their personalfinancial situation.

Pension plans are permitted to include specialprovisions to allow employees aged 50 orover to make additional contributions up to alimit (catch-up contributions). While theseprovisions have been available in 401(k) plansonly since 2002, parallel provisions havebeen possible for many years in other typesof plans, such as in those offered by not-for-profit organizations. AARP Best Employerswho allow employees to make such catch-upcontributions are: Lincoln Financial Group,Philadelphia, PA; Children's Health System-Birmingham, Birmingham, AL; Deere &Company, Moline, IL; and The PrincipalFinancial Group, Des Moines, IA.

Case Example 6-2: Flexible SpendingAccounts for Eldercare at Volkswagenof America, Inc., Auburn Hills, MIAn added benefit in several winningapplications was flexible spending accountsfor eldercare. In many instances, companieshad set up flexible spending accounts soemployees could put away money foreldercare on a pre-tax basis. While acompany rarely matches the contributions tothese accounts, it does bear the cost ofadministering the program. Volkswagen ofAmerica allows workers to allocate $5,000in pre-tax earnings to such accounts.Although most employees use this programfor childcare, Volkswagen also directs thisprogram to mature workers who may need itto care for aging dependent parents. Bysteering funds into a mature worker-focusedbenefits program, Volkswagen sends amessage to the employees that the companyvalues them. Source: AARP Best Employers applications and follow-upcommunication with the employer.

Retiree Health Benefits. The availability ofhealth benefits is an important factor in theemployment decision. Unless coverage isavailable through another family member,most people will not choose jobs withouthealth benefits. Healthcare coverage is oneof the most valuable benefits in theretirement package, although it is notavailable to many people.

Health benefits are also a critical issue forretirees, particularly those not yet eligible forMedicare. The U.S. healthcare system isbased heavily on employer coverage. Retirees


who are not yet eligible for Medicare andhave no employer coverage, particularlythose in poorer health, often face fewcoverage options and extremely high prices.

The Employee Benefit Research Institute(EBRI) provides a perspective on futurecoverage. EBRI says:

Very few retirees are expected to be eligiblefor retiree health benefits in the future.Retiree health coverage generally is offeredonly by large employers, as very few smallemployers ever offered the benefit and morethan half of private-sector workers are infirms with fewer than 500 employees. In2000, only 11% of all U.S. privateestablishments offered retiree health benefitsto Medicare-eligible retirees and only 12% to“early” retirees under age 65.21

Employees working in firms with thiscoverage usually need to satisfy eligibilityrequirements by working to retirement ageand for a minimum number of years.

In spite of the value of this coverage, retireehealth benefits tend not to be a significantconsideration when workers choose a jobbecause:

• Health benefits for retirees are usuallyavailable only to those who stay toretirement age and have long service atretirement. Many workers hired beforemid-career will move on to anotheremployer before qualifying for the benefit.

• Plan offerings can be changed at the willof the employer: virtually all retiree health

plans include the right to change orterminate the plan.

• Retiree health benefits are seldomprovided by small or even mid-sizedemployers. These benefits are also rare inmany industries.

People working in organizations offering thiscoverage often consider it when making plansabout how and when they will leave. For mid-career employees choosing a job or consideringa job change, retiree health coverage can be avery important consideration.

Promoting Health and WellnessSome employers believe in offeringpreventive health services and workplaceeducation to improve workforce health andproductivity. Workers benefit throughimproved health, and employers benefitthrough improved business results.Depending on the situation, improvedbusiness results can come in the form oflower injury rates, increased productivity,lower absences, better morale, and fewer or

21 Source: EBRI Issue Brief No. 254, Executive Summary, February 2003.


less costly health claims. Programs can becomprehensive or fairly simple. Flu shots area straightforward way to reduceabsenteeism. Health fairs offer a variety ofscreenings. More complex programs includein-house medical facilities and/or fitness centers.

An additional discussion of how health fitsinto the total picture appears in Chapter 8.Below are some best practice examples inthis area.

Case Example 6-3: Health andWellness Programs at St. Mary’sMedical Center, Huntington, WV, andThe Principal Financial Group, DesMoines, IAA challenge for companies with matureworkforces is contending with medicalproblems related to the aging process. Manycompanies promote wellness and healthylifestyles among both current employees andretirees. The Principal Financial Group’sForever Young program focuses on retiredemployees. Few wellness programs, however,are as comprehensive as those of St. Mary’sMedical Center. St. Mary’s makes manydiagnostic and preventive services availablefree to mature female employees (e.g.,screening for breast cancer and skin cancerand cervical exams). St. Mary’s also providesa range of services to all employees.Examples include free annual checkups, year-round wellness activities such as yoga,nutritional counseling, smoking cessation,and a discount on membership in theYMCA’s senior wellness program. All of theseprograms serve a dual purpose—increasingthe health and wellness of employees and

retirees through preventive care whiledecreasing the healthcare costs associatedwith an aging workforce. Source: AARP Best Employers applications and follow-upcommunication with the employers.

Case Example 6-4: Wellness Programsat The MITRE Corporation, Bedford,MA/McLean, VAAt The MITRE Corporation, an engineeringresearch firm, over one-third of theworkforce is considered mature—aged 50 orover. In addition, approximately one-quarterof its yearly hires are in this demographiccategory. As outlined elsewhere in thisreport, as a workforce ages, it is important tomaintain levels of health and wellness. Doingso not only decreases the cost of healthcarefor the employer but also leads to greaterlevels of wellness among employees, highermorale, work satisfaction, and productivity.These increases in productivity then cantranslate into wage- and performance-linkedrewards and can create gains for theemployee population. For a small investmentin health and wellness, everybody wins.

The MITRE Corporation operates a healthservice program for mature workers. It alsooffers a low-impact cardiovascular programas well as on-site fitness centers foremployees and retirees. In addition, thecompany sponsors health fairs, smokingcessation programs, weight programs, andhealth checkups. The company citesanecdotal evidence that these programs havecontributed to steep drops in the employeeattrition rate. Source: AARP Best Employers applications.


Case Example 6-5: Employee BenefitResearch Institute (EBRI) Study onInvesting in Employee HealthEBRI studied six firms (Bank One, DowChemical Company, Elkay Manufacturing,Sherman Health, Union Pacific Railroad, andone anonymous employer) who believe thathealth affects employee performance on thejob. They also believe that their healthprograms have a positive impact on healthstatus and behaviors as well as careutilization. All acknowledged that linemanagement support is critical to theeffectiveness of these health programs.Together, these six companies had more than246,000 employees. Source: EBRI Issue Brief No. 267, March 2004.

Workplace Flexibility Beyond BasicCareer OptionsAs mentioned in Chapter 5, workplaceflexibility is very important to matureworkers. This section contains examples offlexibility that go beyond those that affectbasic career options.

Case Example 6-6: Flexible Schedulesand Job Sharing at Scripps Health,San Diego, CAWorkplace flexibility comes in many forms.Scripps Health has addressed the issue intwo complementary ways: job sharing andflexible work options.

Job sharing at Scripps Health is an option forall employees, especially those who want towork part-time or fewer hours. Twoemployees in the same job position can share

the same job, working fewer hours yetkeeping their skills competitive. This is inaddition to the flexible work options foremployees phasing into retirement,compressed work weeks, telecommuting,and specific individual accommodations. Thevalue of this approach is that it is not a “onesize fits all” solution. Rather, it offers a broadrange of options, including home officeequipment and training. These options giveemployees the freedom to choose whatworks best for them.Source: AARP Best Employers applications and follow-upcommunication with the employer.

Support for CaregivingMany workers at all ages are under personalpressure because caregiving and familyresponsibilities combined with workrequirements take much of their time andenergy. Sometimes these family needs aretemporary, but they are often ongoing.Temporary crises can turn ongoing needsinto major problems. Special programs foreldercare and care for grandchildren provideadditional options that go beyond theflexible scheduling options cited earlier.Examples follow.

Case Example 6-7: Eldercare Back-upProgram at Scottsdale Healthcare,Scottsdale, AZ; New York LifeInsurance Company, New York, NY;and Stanley Consultants, Inc.,Muscatine, IA Many popular and academic studies highlightthe role of the “squeeze” generation—people who are taking care of children while


dealing with aging parents. Companies canhelp by instituting eldercare programs as partof the benefits available to their employees.This benefit specifically targets matureworkers and gives them financial andscheduling alternatives for eldercare. Therange of benefits is quite large. Somecompanies, such as New York Life andStanley Consultants, address eldercareoptions through their employee assistanceprograms; however, these options do notprovide a financial benefit. In certain cases,Stanley Consultants also allows extendedtime off and family leave to take care ofparents. At the far end of the spectrum, aScottsdale Healthcare program allows staffmembers to have a Certified Nurse Assistantstay with elder parents if their regularcaregiver is unavailable and they need tocome to work. Staff members are allowed upto a maximum of 18 visits per year; each visitcosts $12.

These options vary according to the type ofcompany, and the primary nature of itsbusiness. What unifies them, however, is therecognition of an issue especially relevant toolder workers: eldercare. Source: AARP Best Employers applications and follow-upcommunication with the employers.

Case Example 6-8: Access to Childcarefor GrandchildrenAn increasing number of grandparents arecaring for their grandchildren. Someorganizations have on-site childcare facilities.These facilities can be company run oroutsourced, at the employer’s location or

nearby. These facilities may be offered at theretail price for childcare, but often they aresubsidized so employees have access to themat a lower price. There is often more demandfor these facilities than there are placesavailable. A good childcare center can be avery important benefit for employees whouse it. Some employers, such as BonSecours Richmond Health System,Richmond, VA, allow grandparents to usethese centers for their grandchildren. Source: AARP Best Employers applications.

Other Emerging Ideas Several programs cited by the AARP BestEmployers in 2001–2004 were infrequentlymentioned but are still sufficientlynoteworthy to merit inclusion in the list ofbest practices because they add value to thework experience of mature workers. In mostcases, these programs were available to allemployees, not simply those over age 50.Here are examples:

• Career counselors at The PrincipalFinancial Group, Des Moines, IA. Careercounseling, with specific interventionsdesigned to help these employees withtheir later-stage career needs, is availableto employees over age 50.

• Flexible benefits at First HorizonNational Corporation, Memphis TN.Employees receive funds to purchasebenefits. The funds are based on length ofservice and pay level as well as wellnesslevel (as a reward for healthy lifestyles).

• Eldercare services fair at The MITRE


Corporation, Bedford, MA/McLean, VA.The health fair was hosted by 35 senioragencies to answer employee questions oneldercare issues. It included seminars onAlzheimer's and eldercare services.

• Caregiver leave at The PrincipalFinancial Group. This benefit allowsemployees to take time off to care foryounger and older family members. Toprovide the care and continue working,employees can work part-time, take extratime off, or take leaves of absence withoutlosing full benefits.

• Succession planning at The PrincipalFinancial Group. The succession planningprogram “provides a framework fordeployment within and across thecompany based on current and futureorganizational needs.” It consults withleaders yearly to give the company abetter picture of its “bench strength,”develop talent, and inform high performersof potential career opportunities.

• Long-term care insurance at theMassachusetts Institute of Technology,Cambridge, MA. Insurance is available toemployees, retirees, and other familymembers to help deal with the cost oflong-term care as well as the cost of careservices provided in their own homes,adult day care facilities, and alternativecare facilities. Insurance is purchased on agroup basis to give employees a betterdeal than they would get by purchasinginsurance on their own. Employees cantake this benefit with them when theyleave the organization.

SummaryMany of the programs discussed in thischapter help employees plan for and movetoward retirement more effectively. Some havetax advantages. The health programs helpemployees address personal health and in sodoing become better and more productiveemployees. Other programs help employeesmeet the demands of combining work andcaregiving. Some of them do not requiremajor financial investments. Others, such asretiree health benefits and some of the healthand wellness centers, can be quite expensive.


ExtrasExtras are things that are positive andbeneficial for employees but are neithercentral to the job nor of significant economicvalue to employees. They may make theworkplace a better environment for matureworkers and send positive messages toemployees and the community, but theireconomic value is limited.

For employers, extras are helpful becausethey enhance the workplace culture andcommunications. They may be a plus inrecruiting and retaining employees. Foremployees, extras are usually perks that do notdetermine employment or career decisions.

Best Practices Among “Extras”Best practices defined as “extras” includeretiree relations programs and some of themore esoteric perks offered by companiesthat make life much easier for employees. Inthis area, there were no discernible changesin practices over the years of the AARP BestEmployers program.

Extra Best Practices and BenefitsTargeting Mature Workers. The majority of employers who won the AARP BestEmployers award had a service awardprogram of some sort, although there weremany variations. At one end of the spectrum,employees received tangible rewards such ascash at a gala dinner. At the other end, someemployee service milestones were recognizedthrough company communications such asan employee newsletter.

Extra Best Practices and BenefitsDirected at All Employees. Many practicesdirected to mature workers are beneficial toall workers. Examples are health and wellnessactivities ranging from occasional classes onnutrition to full-scale, on-site health clubfacilities with a dedicated instructor staff.Other programs include modest tuitionreimbursement, Employee AssistancePrograms, and unpaid leave beyond thatrequired by the Family and Medical Leave Act.

Retiree Relations and Fringe Benefits forRetirees. Retiree relations efforts rangedfrom actual “clubs” with a physical locationand staff assigned to retiree needs to moreinformal arrangements such as periodic socialevents such as dinners or picnics. Somecompanies also offer retiree newsletters. Thestrongest retiree relations programs offered anumber of fringe benefits usually alignedwith the main business of the employer. St. Mary’s Medical Center, Huntington,WV, for instance, allows retirees to purchasepharmaceuticals at cost from the hospital’spharmacy as part of its retiree program.

Frills. This category includes items such asfree tickets to sporting events, theater andconcerts, laundry and meal services, anderrand services. Some employees offerworksite massage for sore muscles and itemssuch as free beverages for employees. Whilepractices such as these are considered“extras” in creating a workplace that appealsto mature workers, they can contribute tohigher morale and a better workingatmosphere, especially for employees who

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particularly value community involvement. In addition, some of these practices canincrease the profile and good will ofcompanies in their communities.

Other Unique PracticesSeveral practices do not fall into the above-mentioned categories but merit discussionbecause they are fairly unique cases and mayaddress issues applicable to all employees.

Employer Support for Volunteerism.Several organizations, including LoudounHealthcare, Leesburg, VA, and The CharlesStark Draper Laboratory, Inc., Cambridge,MA, support volunteerism. Some providevolunteer opportunities inside theorganization and/or support volunteerism inthe community. First Horizon NationalCorporation gives employees time off to dovolunteer work in the community.

Case Example 7-1: SupportingVolunteerism at First HorizonNational Corporation, Memphis, TNFirst Horizon is committed to volunteerismand supports volunteer activities on twolevels: grants to organizations that have FirstHorizon employees in leadership positionsand recognition of employees who volunteertheir time in the community. In 2002, FirstHorizon gave grants of $46,000 to over 100organizations in which its employees heldleadership roles. That amount grew to$103,000 in 2003. In addition, employeesspent tens of thousands of hours incommunity volunteer activities coordinatedby the company; outstanding volunteerswere recognized by the company. Source: AARP Best Employers applications.

Retiree Relations. Examples are as follows:

• Some organizations had companynewsletters directed to former employees,while others gave retirees opportunities toquestion the CEO on any topic.

• Pinnacle West Capital Corporation,Phoenix, AZ, provided retiree lounges soformer employees could come in andsocialize.

• Minnesota Life, St. Paul, MN, has aNorthStar 25 club for retirees and long-service employees so the two groups canmix and socialize. Members attend anannual dinner and retirement celebrations.

Other “Extras.” Examples are as follows:

• Several organizations allowed employeesto “donate” unused time off to


co-workers needing extra time to take careof family or for other extenuatingcircumstances.

• Hoffmann-La Roche, Inc., Nutley, NJ;Thomson West, Eagan, MN; andChildren’s Health System-Birmingham,Birmingham, AL, offered a shuttle busfrom their parking lots to their mainheadquarters either on a regular basis oron request.

• Augusta Health Care, Inc., Fisherville,VA, and the Freeport Health Network,Freeport, IL, each offered “benefits fairs,”in which employees learn about thevarious programs available to them.

SummaryExtras alone have limited value in recruitingand retaining mature workers, but theyreinforce a culture that is positive and cansupport other programs in efforts to recruitand retain mature workers.

Volunteerism is important to manyindividuals, and the volunteer supportprograms can help people move into whatmay be very meaningful roles in their lives.


Important Areas for BothEmployers and EmployeesMany programs help the mature worker and,in turn, the organizations that employ them.This chapter outlines the areas that are mostimportant for employers to consider whenaddressing the needs of older workers. Itdescribes the importance of flexibility inemployment options, reviews the advantagesof phased retirement, and discusses matureworker career planning.

This chapter also contains tips for successfulprograms and ways to measure their success.Measurement of success is essential fordemonstrating a positive return oninvestment and building the business casejustification for programs. A good businesscase justification is critical for long-termsuccess of these programs.

Retirement and Retirement SecurityFor employees, the assets they build forretirement security are critical and often playan important role in determining when theywill retire or whether they will acceptemployment with lesser compensation ordecide to remain longer in a full-time job. MostAmericans depend heavily on Social Securityand employer-sponsored plans. Withoutemployer-sponsored pension plans, many donot save enough. Employers assume differentroles when it comes to workers’ retirementsecurity as described in Table 4.

The employer’s role in providing for retirementis most important for the long-service

employee. However, the person hired later in his or her career may be working tosupplement or increase a retirement benefitor assets accumulated while in a prior placeof work.

Health and HealthcareThe availability of health benefits is animportant factor in both the employmentand retirement decisions. Unless coverage isavailable through another family member,many people will not choose jobs withouthealth benefits. Healthcare coverage afterretirement is one of the most valuablebenefits in the retirement package and iscritical for retirees not yet Medicare eligible.However, it is not available to many people.The U.S. healthcare system is based heavilyon employer coverage. Before peoplebecome eligible for Medicare, they typicallyhave employer-sponsored benefits or mustrely on personal savings and individualinsurance when retiring. Individuals,particularly those in poorer health who needto purchase health insurance on their own,often face few coverage options andextremely high prices. Many Americans areleft without coverage. Health benefits drivework decisions and options. For example,many workers would be interested in part-time work but need health insurance, whichis generally not provided to part-time workers.

Some employers may play a very active rolein employee health by providing benefits,helping employees assume responsibility fortheir own health, promoting workplace

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safety, and addressing the links betweenhealth and organizational performance.

Other employers may simply provide healthbenefits without taking an active role inpromoting healthy behavior. Still, otheremployers may do nothing.

The reasons for taking an active approachinclude the following:

• Individual health behaviors have an impacton personal health status.

• Workplace injuries can be expensive.

• Health has an impact on performance inthe workplace.

• The cost of health benefits keeps risingdramatically.

Table 4How Retirement Support and Benefits Fit In

Types ofEmployer Programs ofResponsibility Fundamentals Core Programs Significant Value Extras

Provider ofFunds forRetirement

Risk Protectionand AddedBenefits

Options AboutHow to Retire

RetirementEducation

Basic pension, savings,or other wealthaccumulation programscommon in the sameindustry

Basic requiredinformation aboutcompany benefit plansand how to participatein the plans

Phased retirementprograms, includingformal rehire programs

Added benefits such ascatch-up contributionsin 401(k) plans

Retiree health

Retiree life insurance

Indexed benefit indefined benefit pensionplan

Long-term careinsurance withemployer subsidy orgroup purchasediscount

Ad-hoc rehiring andrehiring through anoutside agency

Custom counseling andplanning

Long-term careinsurance, withoutdiscounts or subsidy,available as a voluntarypurchase

Added educationbeyond the basics, butnot tailored to theneeds of the individual


FlexibilityFlexibility is very important to almost allworkers. It is therefore important toorganizations, particularly those employingmature workers with critical skills. Flexibilitytailored to these workers may make thedifference between their retention,retirement, or move to a competitor.

Flexibility can mean different things:adjustable work schedules, options as towhere the work is done, and the ability torestructure job responsibilities.

Flexibility also helps employers keep skilledemployees, thereby maintaining theworkplace culture, productivity, knowledgebase, and overall competitiveness in themarketplace. Examples are described below:

Scheduling Options. Employers offer avariety of work schedule alternatives.Flextime allows workers to choose the startand stop times of their workday as long asthey are present during a core time of theday when all employees are expected to beavailable. Total work commitment, however,generally does not change under flextime.

A different type of scheduling option, totalschedule flexibility, allows employees to varythe total amount worked. Overallcommitment may be set on a weekly,monthly, annual, or some other basis.Scheduling options may be combined withflextime. A common arrangement is foremployees to work three or four days aweek, regardless of whether they workreduced or full schedules. Another optionallows people to work a 70% or 80%

schedule on certain days and a 120% or130% schedule on other days with theexpectation that it will balance outperiodically, maybe on a monthly basis.

Under other alternatives, employees canreduce the total work schedule by takingextra vacation time.

In the healthcare industry where service isneeded every day, 24 hours a day, manydifferent work schedules may be available,including working three 12-hour days perweek or long hours on weekends. Onceaccepted, these schedules must be followedto meet the customer service requirements ofthe healthcare organization. Retailing is likehealthcare in that employees are needed forlong days. Many scheduling options may beavailable, but once a schedule is adopted, itmust be strictly followed.

This is different from the work of manyprofessional employees who are able toschedule some of their time as they wish, aslong as the work gets done. It is alsodifferent from tasks like home repair wherethe service provider and the customer canschedule projects at a mutually convenient time.

Workplace Options. Another type offlexibility relates to place of work. Someemployees telecommute on a regular basisand have no office at the employer’s businesslocation. Others telecommute one day aweek or occasionally. Some employeestelecommute part of the year. Generallywork done on a computer or over the phoneby someone working alone at least part ofthe time can be done at different locations.


Job Structure Options. Flexibility also mayrelate to duties and allow redesigning of jobsto fit with employees’ specific talents andvalue to the firm.

Case Example 8-1: Illustrations ofFlexibilityThe different types of flexibility can beapplied in combination. In a hypotheticalexample, Susan (age 60) has more than 25years of experience with a firm. She hasexcellent Washington and outside contacts.She works on a reduced schedule with fiveextra weeks of vacation, which is equivalentto 90% of a full-time schedule. Shetelecommutes for two months during thewinter. During the rest of the year she usuallyworks from the firm’s office, but works fromhome occasionally. Her duties capitalize onher outside contacts, and her job has beenredesigned to fit the areas of greatest valueto her employer.

Richard is another example. Richard retiredfrom a senior executive position in a majorinsurance organization. After retirement,Richard contracted with his former employerto handle a variety of government relations’functions, working an agreed number ofdays a year and using his extensive contacts.

These examples combine informationuncovered during research on phasedretirement. Source: Mercer Human Resource Consulting research onphased retirement (unpublished).

Employment Arrangement Options. Someemployers allow workers to leave regularemployment but continue working astemporaries to fill in when needed.Employees may become independentconsultants. These forms of flexibility areparticularly well suited to retirees who wishto continue with some work. The casestudies on temporary work and rehire afterretirement illustrate this work option.

The types of flexibility that work for anorganization relate directly to the type ofbusiness and customer service needs.Healthcare, retail, and banking employershave workplaces where many employeeshave face-to-face contact with customers.These employees must be there at fixedtimes. In manufacturing, employees worktogether in teams or assembly lines and mustbe there at fixed times. In professional servicefirms, client-serving employees spend sometime with external customers and other timedoing the work needed by clients. In suchfirms, there is more flexibility in arrangingschedules. The situations vary considerably,so the potential for flexibility depends on thebusiness. Many organizations allow sometype of flexibility.

Some employers have formal policies thatsupport a range of flexible work options. This is preferable to making individualarrangements with different employees,although many employers do this as well.When making individual arrangements orcontracts, the employer should define jobresponsibilities, compensation, scheduleoptions, and the limits of the authority ofsupervisors.


Implementing Flexible Work Programs.The following are essential elements of asuccessful flexible work program:

• A method of redefining job duties, workarrangements, and schedules.

• Criteria for program participation,including eligibility requirements andpotential time limits.

• Approval processes.

• Adjustments in pay and benefits planprovisions.

• Training and support.

• A culture that recognizes the value ofthese roles and arrangements to thebusiness.

Many companies already manage alternativework arrangements such as flextime, jobsharing, part-time work, and contractorwork. The challenges, then, will be tomanage a larger number of sucharrangements and to make these optionsbetter known to mature workers as part ofcareer and retirement planning.

Actions to keep experienced mature workerson the job longer should be integrated withthe company’s overall career planningprocess. New or changed roles for matureworkers can affect the advancement anddevelopment opportunities of youngerworkers. A formal career planning programlinked to the company’s overall workforceplan is the best way to meet the needs of allemployees while considering business needs.

Phased RetirementA number of companies formally orinformally support phased retirement.Available research reveals a great interest in itas well as great frustration about some ofthe legal requirements, uncertainties, andbarriers to a full range of options.

In the future, many more employers willwant to adopt a comprehensive approach todealing with an aging workforce.Considering the demographics along withemployee preferences and abilities,employers are now seeing an opportunity toaddress the labor shortage by cultivating thefastest-growing segment of the population—mature workers—through flexible phasedretirement programs.


Employers also benefit from being able tocontinue tapping people with a great deal ofinstitutional knowledge and specialized skills.They boost productivity by keeping highlyexperienced workers rather than hiringlower-skilled ones. This also reduces theirhiring and training costs.

For employees, phased retirement provides agreater sense of control over their transitionfrom work to retirement. Additionally, whenemployees participating in phased retirementprograms remain in the workforce longerthan they would have otherwise, the benefitsof phased retirement include a lower risk ofeconomic insecurity and continuedrelationships with coworkers with whom theymight not have contact once fully retired.

Recent public policy changes support phasedretirement programs. For example,amendments to the Social Security Act in2000 allow workers over the Social Securitynormal retirement age22 to collect full SocialSecurity benefits while continuing to work.However, many laws and regulations thatpertain to employer-sponsored retirementprograms are in conflict with the goals ofphased retirement. Some examples of thechallenges include:

• Prohibition on the payment of definedbenefit plan benefits to employees whoremain at work unless they have reachedthe plan’s normal retirement age.

• Uncertainty about what qualifies as a bonafide termination of employment and how

to treat pension payments to those whoare rehired. The rules on rehiring definedbenefit plan retirees can be interpreted indifferent ways.

• Concerns about the implications of theAge Discrimination in Employment Act forphased retirement programs.

Types of Phased RetirementArrangements. There is no commonlyaccepted definition of phased retirement.From the individual perspective, phasedretirement may include moving from full-timework to full-time retirement in stages, eitherwith the same employer or anotheremployer. For example, phased retirementcan mean part-time work prior to fullretirement, being rehired by the sameemployer after retirement, or retiring fromone employer and working for another. It can also refer to a formal employer-sponsored program that allows partialcollection of retirement benefits and areduced work schedule before retirement. A phased retirement program can include:

• Changes in work hours, work schedule, or duties. A specific arrangement couldinclude any one of these or all of them. Achange in workplace might occur as well.

• The possibility of using accumulated assetsor collecting partial pension benefits tosupplement reduced income from work.

• Formal employer-sponsored programs orarrangements established on a case-by-case basis.

22 The Social Security normal retirement age is gradually being increased from 65 to 67. It will be age 67 for employeesborn in 1960 and later.


Clearly, employers who address the changingdemographics as a strategic human resourceissue will have an advantage over those whoignore these demographic changes.

Talent Management Employers should begin to explore talentmanagement options by assessing the impactof projected demographic and labor marketchanges on their own workforces. Byunderstanding future needs, companies canidentify areas of vulnerability and make plansfor addressing them. An important aspect ofthis planning will be in-depth understandingof the current talent base by key factors suchas age, career level, and skill area. Somequestions to answer are:

• What are the short- and long-term needsof the organization?

• How does the present workforce line upwith business needs?

• Does the organization have adequatesupplies of talent at different careerstages? Where are the gaps and why?

• Is the organization having difficultyrecruiting and retaining top talent?

• Is the organization experiencing, or will itexperience, talent shortages? If so, inwhich areas? Is there an adequate externalsupply of needed talent?

• Will retirements or turnover create gaps in

talent, and if so, where? Is there anadequate supply of people with neededskills ready to step in?

• Does the organization have intellectualcapital in its mature workers that shouldbe recognized and transferred to otherworkers?

• Will specific individuals be very difficult toreplace because of their skills, relationshipswith key outside contacts or customers,institutional memory, knowledge of theproduct line, or role in research? Are theyvulnerable to external recruitment? Arethey approaching retirement age?

An examination of the external labor supplyshould be done in conjunction with ananalysis of the internal labor market.23

Interventions become important when thetwo are mismatched. External labor forceanalysis24 can include assessing the supply ofneeded skills, degree of labor marketpenetration, and the likelihood of attractionand retention within the local or regionallabor market. Where talent is not availablelocally, options include importing talent,automating the work, or moving the work.

It is possible to determine statistically whenand why people stay, move through, and exitthe organization. Such an analysis canprovide tremendous insight on employeeretention by age. This in turn enables anorganization to take actions that maximize

23 Internal Labor Market: An organization’s three interrelated flows of employee attraction, development, and retention,and the effectiveness with which these flows are managed. (Mercer Human Resource Consulting definition)

24 External Labor Market: The demand and supply of current and future labor outside of an organization’s ownworkforce. It is generally accessed for specific skills or job groups. (Mercer Human Resource Consulting definition)


positive employee movement and minimizenegative movement.

This analysis of the internal and external labormarkets should lead to a comprehensivetalent plan based on business strategy and athorough understanding of both externaland internal talent pools. This in turn shouldlead to accelerated talent development,targeted retention of key talent, and otheraction to keep the talent needed well intothe future.

Tips for Successful ProgramsGreat ideas do not always work in practice.More often than not the problem isimplementation. To implement a programsuccessfully, an organization should:25

• Secure the support of senior and localmanagement. Getting support meansmore than saying the words. Peoplerespond to what they are paid for and tothe factors recognized in theirperformance reviews.

• Pay attention to the business case forthe program. In many organizations,nothing will work without a strongbusiness case. A business case should bepresented in a structured proposal thatshows the financial return on theinvestment in any program, as well as theimprovements that the program will maketo the business as a whole.

• Measure results. What is measured andrewarded commands attention.

• Keep the program simple. If a programis too complex, neither management noremployees will understand it and they willfocus on other things.

• Publicize support for the program.Publicity will help show employees thatmanagement supports a program. Publicityalso sends a message to middle managersand rank and file employees that seniormanagement is serious about an initiative.

• Align basic pension and compensationpolicies with the program. This isespecially important if job structures orwork arrangements are involved. Both theemployer and employees must find thepolicies fair.

Measurement of SuccessWhy is measurement important? Given thelimited resources available to employers,decisions about spending on human resourceprograms should be grounded in fact ratherthan based on intuition or anecdote.Employers can decide what they want toachieve from their programs, but without theability to measure these outcomes—andcontrol for extraneous factors—there is noway of knowing whether the expendituresare effective.

When managers are asked to justify theexpense of human resource programs, theyneed quantifiable measures of effectiveness.Otherwise, they would have to rely onanecdotal and/or spurious measures toprovide the rationale for keeping programs.

25 Source: Mercer Human Resource Consulting.


The following three case examples show howcompanies have used effective measurementto implement and reinforce programs gearedto mature workers. Case 8-2 describes howFirst Horizon National Corporation,Memphis, TN, estimates it can boost businessoutcomes after analyzing the influence oflong-service employees on productivity. Cases8-3 and 8-4 show how companies such asScripps Health, San Diego, CA, and thosecited by the Employee Benefit ResearchInstitute have found ways to evaluate successand calculate a program’s return oninvestment.

Case Example 8-2: Measuring theValue of the Long-Service Employeeat First Horizon National Corporation,Memphis, TNFirst Horizon National Corporation isknown for its commitment to matureworkers. As a result of its human capitalstrategy research, First Horizon NationalCorporation discovered how to make theright investment in its people by paying closeattention to its long-service workforce.

Through market research, First Horizonrevealed customer service quality “as thefoundation of its competitive position.”Management recognized that service qualitydepends on the interaction betweenemployees and customers. However, itwanted to develop a more preciseunderstanding of which workplace attributesand management practices have the biggestimpact on customer value and financialperformance. First Horizon therefore usedstatistical modeling techniques to analyze its

human resource and operations databases. Itfound that length of service dominated otherfactors influencing performance. Specifically,at the location level, financial centers withthe longest-serving employees had—controlling for other factors—the bestcustomer retention, growth of premiumaccounts, net earnings, and market share.*Recognizing the value of these long-serviceemployees, the company focused onprograms to keep them employed. The firmestimates that increasing the average lengthof service of such employees by one yearcould yield a financial gain of over $40million a year.

By using its knowledge of which employeecharacteristics drive value, First Horizon isbetter able to spend its human capitalbudget. It has launched initiatives that wereproven to be effective. Measurementpractices such as these can provide therationale for hiring and retaining long-serviceworkers, who often are mature workers.These practices also give employers aquantifiable return on the investment.

* Factors controlled for included otherlocation-specific characteristics, employeetrends, and time-specific economicindicators. First Horizon National Corporationused Mercer’s Business Impact Modeling forthis analysis. Source: H. Nalbantian, R. Guzzo, D. Kieffer, and J.Doherty, Play to Your Strengths: Managing Your InternalLabor Markets for Lasting Competitive Advantage, NewYork, McGraw Hill, 2004.


Case Example 8-3: MeasuringProgram Results and Return onInvestment at Scripps Health, SanDiego, CAIn its AARP Best Employers application,Scripps Health described how it evaluatedits Career Transition Program (CTP). ForScripps Health, which is in an industry facinga talent shortage, the CTP is both a retentionand an attraction device. Scripps Healthallows displaced employees “to enroll in theCTP and receive pay and benefits at theircurrent base rate for up to 12 weeks whilethey look for positions they are qualified forboth internally and externally.” The programhas a high success rate in placing matureworkers both within and outside of theorganization. Scripps Health reported reliablemeasures of the success of this program:“from October 2002 through March 4, 2004,the CTP has realized total savings of$684,451 by placing employees internallyand externally.” The advantages of thisapproach extend beyond the retention effectand cost savings. Rigorous tracking of resultsas well as a quantifiable return oninvestment allow program administrators tomake informed decisions about potentialchanges in the program. They are not forcedto rely on “gut instinct” and guessworkwhen it comes to evaluation and potentialmodifications. Source: AARP Best Employers applications and follow-upcommunication with the employer.

Case Example 8-4: Measuring theImpact of Healthcare InterventionsIn its March 2004 issue brief, the EmployeeBenefit Research Institute documents severalexamples of companies that used ameasurement-based approach to determinethe impact of healthcare interventions. Thebrief describes how Sherman Health targetedinterventions to a specific population afterfinding that 50% of health claims weregenerated by 5% of the employee population.In another example, Dow Chemical used itsemployee data warehouse to track theimpact of health initiatives on the company,integrating health program participation withemployee demographics.

Programs such as these provide valuable dataso that managers can make informeddecisions. With good data, companies cansave money by allocating their benefitspending more effectively. In the ShermanHealth example, the organizationexperienced a 22% drop in per-employeehealthcare costs during the 1994-2001period, while similar costs at peerorganizations increased 31%.Source: EBRI Issue Brief No. 267, March 2004.

SummaryThe information above can prove useful indesigning and implementing programs formature workers while educating them aboutavailable options. These practices areconsidered “best practices.” Knowledge ofthese programs and how they operate led to the recommendations and findings of this report.


Findings, the Future, andRecommendationsThis report describes practices implementedby the AARP Best Employers. For this report,best practices—drawn from lessons learnedand practices followed by winning companies—are those that expand employmentopportunities for mature workers, addresstheir particular needs and interests, andgenerally make work more rewarding.

Overview of FindingsThe study of best practices highlighted manycommendable programs and workplaces formature workers. Some employers havecomprehensive programs that address arange of mature worker issues and othersoffer various individual programs that focuson a specific issue or need. Some programswere much more targeted toward matureworkers than others. An employer may,however, provide a good workplace for allworkers without having special programs formature workers.

What Was Not Found. The applicationsanalyzed did not include much dataevaluating the effectiveness of the programsor how widely they were used. Follow-upinterviews with some winning companiesprovided additional information. Chapter 8contains information on programeffectiveness and insight on the businessadvantages of the programs.

Other research by Mercer Human ResourceConsulting shows that the business issuesrelated to mature workers are tied largely toemploying people with specific talents andskills. In response to an anticipated loss oftalent, some mature worker programs arefocused on recruiting and retaining workerswith specialized or otherwise valuable skills.

The AARP Best Employers study does notaddress longer-term talent issues.

Main Themes. The main themes thatemerged in this study of best practices are asfollows, in order of their prevalence:

• Attracting and retaining the rightworkforce were important to the AARPBest Employers.

• Newly implemented programs focusing onmature workers usually required only amodest financial investment.

• A company’s individual industry andmarket focus can in many cases beleveraged to offer programs that supportthe maturing workforce.

• The incidence of recently implementedprograms to meet the workplace needs ofthe mature worker has increased amongthe AARP Best Employers over the threeyears of the study.

• The AARP Best Employers in the healthcaresector appear to have more numerous andbetter developed mature worker programsthan those of AARP Best Employers inmost other sectors.

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Industry-Linked Business IssuesSome companies slowed their hiring andterminated the employment of youngerworkers during the economic slowdown inthe early 1990s. As a result of thesedecisions, they unwittingly caused futurechanges in the age distribution of theirworkforces. They will have fewer youngerand mid-career employees.

Furthermore, entire industries are alreadyfeeling the pressure of the aging of thepopulation. Aerospace and defense, utilities,healthcare, insurance and financial services,and public education, in particular, face someof the greatest threats of a “brain drain” asmature, experienced workers approachretirement and too few skilled replacementsare available. The problem is not just inwhite-collar professions: the ranks ofexperienced blue-collar workers are alreadythinning, with implications for industries suchas construction and heavy manufacturing andothers that rely heavily on the skilled trades.

This problem is not limited to the privatesector: the federal government employsmany people nearing retirement age andfaces substantial talent shortages in certainjobs as a result.

Future Challenges for BusinessGiven global competition and investorexpectations, all workforce managementprograms are very important. In this climate,most organizations are reluctant to adopt orkeep programs that cannot show a positivereturn. An important step in understandingthe business issues is to analyze internal and

external labor markets and find a matchbetween the two.

The shift in the external labor market as thepopulation ages and the corresponding shiftin the internal labor market mean that thesolutions of the past often will not worktoday. Employers are or will be confrontingissues such as:

• Availability of talent generally, as well asparticular needs in specialties such asnursing and nuclear engineering.

• Loss of important knowledge as matureworkers retire, causing problems withcontinuity in dealing with customers,regulators, and others.

• Increasing cost of employee benefitprograms.


• Potential changes (both increases anddecreases) in employee productivity.

• Compensation and performance issuesrelated to the maturing workforce.

• Careers and career progression.

• Market branding and customerperceptions.

• Work/family concerns.

• Skilled worker shortages.

• Health and productivity of the workforce.

Overall, the AARP Best Employers have manyprograms that make the workplace attractiveto mature workers. Many of these programsare good for workers of all ages, and anorganization that is an employer of choicewill generally be good for mature workers.However, some needs and priorities ofmature workers differ from those of theworkforce in general. In addition, there isconsiderable variation within the matureworkforce. This study focused largely onpractices that address mature workforceneeds and issues.

The aging of the population is likely toproduce substantial shifts in the workforce.At a minimum, companies are likely toexperience major talent shortages in someoccupations. Some observers predict majortalent shortages nationwide, although thereis less consensus about this.

Employers will need to review barriers to theexpansion and adoption of programs thataddress phased retirement and rehiring of

retirees. These barriers include a prohibitionon payment of defined benefit plan benefitsbefore retirement except after normalretirement age, the lack of clarity as to thepermissible rehire of employees, and concernsabout how the Age Discrimination inEmployment Act may affect such programs.

RecommendationsOrganizations will soon face a changingtalent pool, if they are not doing so already.The following recommendations addressissues such as impending talent shortages,knowledge transference as the boomersretire, and the skill development of thegrowing number of older workers:

• Analyze workforce demographics. Inperforming the workforce analysis,employers should use quantitative as wellas qualitative approaches. Talent issues arequite likely to be job-specific—forinstance, in healthcare, shortages exist innursing.

• Identify potential solutions. The bestpractices described in the report providesome ideas, and many other solutions areavailable as well.

• Assess the fit for the company. As partof this step, most organizations will wantto calculate the return on investment.Measuring success is an important firststep toward improving programs andkeeping them. The assessment will alsohelp a company select the types ofprograms to implement and helpdetermine when to introduce them.


• Design the details of each specificprogram to fit the context. Programsneed to be tailored to each organization’sspecific needs.

• Pay particular attention toimplementation. Good implementation isvital to success. Many good ideas fail tolive up to their potential not because theyare bad but because the implementationwas not adequate.

• Monitor the results and utilization ofprograms. Compare outcomes withpredetermined success measures.

• Evaluate. Determine what benefit goalsare being met and whether they justify thecost. If not, move resources to other areas.

• Refine as necessary. In the short term,employers will want to look at theircurrent programs, identify problems andunmet needs, and think about how toimprove what they are doing now.

Companies will also want to assess how thechanging demographics will affect them,especially with respect to specificoccupational groups where there is likely tobe a shortage of skilled labor.

Talent shortages will be a major problem formany employers. Talent planning is vital tounderstanding where staffing gaps are likelyto occur and to building job-specificstrategies to fill them, particularly in scarceoccupations. Organizations have manyoptions to address all of these challenges. Byaddressing these challenges in acomprehensive way, they can turn potentialstaffing liabilities into business opportunities.

Over the longer term, employers will havemany opportunities to more effectivelyrespond to aging workforce challenges andissues by designing alternative job structures,recruiting retirees, and offering differentoptions for phased retirement. Today’sresponses are often piecemeal and focusedon particular problems rather thancomprehensive. Addressing these talentshortages will allow organizations to justifynew programs to managers and their boardsof directors.


APPENDIX 1: MethodologyIn 2004, AARP engaged Mercer HumanResource Consulting (Mercer) to conduct ananalysis of the workforce practices andpolicies of the AARP Best Employers. Thedescriptions of the workforce practices andpolicies included in this report are basedprimarily on AARP Best Employersapplications submitted by employers thatreceived the AARP Best Employersdesignation in 2002, 2003, or 2004. Foremployers that received the designation inmultiple years, all of the employer’s winningapplications were included in the analysis. Atotal of 75 applications from 56 companieswere coded. Over 500 practices were coded.In some cases, additional information wasgathered through phone interviews or emailcommunication with these companies.

The information that the employerssubmitted, either on the applications orthrough subsequent communication, wasassumed to be accurate and was notindependently verified. Prior to publication ofthis report, the employers were given theopportunity to review content related to theirpractices. Certain case studies featureinformation about companies that have notreceived the AARP Best Employersdesignation but do have noteworthypractices. This information is based onsources other than the AARP Best Employersapplications. A framework was constructedfor grouping the information into fourcategories as described in Chapter 4. Forsome areas of activity, there are practicesthat fit into two or more categories. Theexhibit below shows how specific practiceswere classified.


Classification of Various Types of Employer Programs

Programs ofFundamentals Core Programs Significant Value Extras

AlternativeRoles for OlderWorkers

Caregiving

CaregivingTime OffBeyond WhatIs Requiredby FMLA1

DisabilityBenefits

EAP2

Eldercare (aspart of EAP orseparate)

EmployeeLeave Banks in Place of Other Time-off Programs

Health Benefits

Hiring

Disability benefitsfor full-time employees

Health BenefitsHealth benefits forfull-time employees

Non-discriminatoryhiring in general, asrequired by law

Special projects;redesigned jobs

Health benefits foractive part-timeemployees

Special focus onhiring older workersfor a variety of jobs

Counseling andsupport for placement

Access to additional time offon paid basis

EAP with specialfeatures for olderworkers

Eldercare optionswith companyfinancial support

Depends ongenerosity; could besomething of value ifliberal program

Retiree healthbenefits

Special programs forsemi-volunteers orrecruiting in locationsfrequented by seniors

Information only;unpaid leave

Eldercare referral or other options withoutfinancial support

Volunteer placementin community


Classification of Various Types of Employer Programs (continued)


Long-TermCare Insurance

Mentoring and Working Together for Smooth Transition

Part-time and Other FlexibleWork Options

Pensions

PhasedRetirement

Flexible work options

Basic pension benefitconsistent withindustry practice

Programs whereexperienced andnewer employeeswork together overperiod of time topreserve knowledgeand build up thenewer employee’scapabilities; givesimportant role toexperienced worker

Significant formalprograms that offernon-traditional workschedules andarrangements

Company offers formalprogram to enablephased retirement,either phasing outbefore retirement orfor rehiring of retirees(see next page for moredetails on rehire)

Long-term careinsurance withemployer subsidy, orthrough a grouppurchase discount

Organized programwith effective use ofknowledge basis;helps to integrateworkplace for allworkers

Informal programstargeted to matureworkers, and limitedspecial purposeflexibility programsfor caregiving

Employer-providedbenefits that exceedmarket norms; addedbenefit such as catch-up contributions in401(k) plans

Long-term careinsurance availablefor voluntarypurchase withoutgroup discount oremployer subsidy


Classification of Various Types of Employer Programs (continued)


Prevention Strategies andWellnessPrograms

RehabilitationPrograms forDisabledEmployees

RehiringRetirees

RetireeRelationsPrograms

RetirementPreparationPrograms

Service Awards

Training

Health plan pays forreasonable diagnostictests for full-timeemployees

Some coverage ofrehabilitation

Injury prevention can lead to jobrequirement changesand/or environmentmodification;conditioning workersleads to reducedchance of injury

Health plan extendedto part-time workers

Tailored programlinking specific jobrequirements torehabilitation andreturn to work criteria

On-site physicaltherapy (can beoccupational orcomprehensive)

Organized program

Recruitment fromretiree pool

Major focus on lifelonglearning leading tomore career options

Worksite fitnessfacility or significantaccess to wellnessand preventionprograms; worksitehealth facilities;flu shots; screeningsbeyond basic healthbenefits

Companyparticipation inphysical therapy at aless intense and lesstailored level

Combined focus onemotional andphysical issues

Ad hoc rehiring andrehiring through anoutside agency

Personalized

Service awards thatinclude something ofmonetary value

Average training withsome special featurefor older workers

Education andinformation

Education

Retiree clubs,newsletters, periodicsocial events, etc.

General information

Service awards withno significantmonetary value

1 FMLA = Family and Medical Leave Act. 2 EAP = Employee Assistance Programs.


APPENDIX 2: Case Examples5-1 Outside Opportunities for Mature Workers at The Principal Financial Group, Des Moines, IA

5-2 Job Mobility at Deere & Company, Moline, IL, and The MITRE Corporation, Bedford,MA/McLean, VA

5-3 Mentoring Programs at Adecco Employment Services, Melville, NY; Baptist Health SouthFlorida, Coral Gables, FL; and Farmers Insurance Group of Companies, Los Angeles, CA

5-4 Phased Retirement Options

5-5 Knowledge Transfer Paired with Phased Retirement at Pinnacle West CapitalCorporation, Phoenix, AZ

5-6 Rehiring Retirees at Hoffmann-La Roche, Inc., Nutley, NJ; The MITRE Corporation,Bedford, MA/McLean, VA; and St. Mary’s Medical Center, Huntington, WV

5-7 Workplace Redesign at Baptist Health South Florida, Coral Gables, FL

5-8 Ergonomics: An Investment in Safety and Productivity

5-9 Individual Accommodations

5-10 Returning to Work: Healthy and Fit for Work

5-11 Lifelong Learning at The Principal Financial Group, Des Moines, IA, and EducationalOpportunities at The Ohio State University Medical Center, Columbus, OH

5-12 Partnering with Local Colleges at Loudoun Healthcare, Inc., Leesburg, VA

5-13 Corporate Cultures Promoting Long Service: The PALS (Personnel Achieving Long-TermService) Program at Children’s Health System-Birmingham, Birmingham, AL

5-14 Corporate Cultures that Value the Mature Worker

5-15 Changing Benefit Requirements for Part-Timers at The Massachusetts Institute ofTechnology (MIT), Cambridge, MA, and Stanley Consultants, Inc., Muscatine, IA

5-16 Attracting Older Workers with the “Bridgement of Service” Policy at Baptist HealthSouth Florida, Coral Gables, FL

5-17 Proactive Hiring at Adecco Employment Services, Melville, NY

5-18 Community Partnerships that Create Opportunities for Mature Workers

5-19 The Burden of Allergies in Heavy Manufacturing


5-20 Improving Prescription Drug Benefits at Pitney Bowes, Inc., Stamford, CT

6-1 Employee Financial Advice at The Principal Financial Group, Des Moines, IA; The CharlesStark Draper Laboratory, Inc., Cambridge, MA; and Thomson West, Eagan, MN

6-2 Flexible Spending Accounts for Eldercare at Volkswagen of America, Inc., Auburn Hills, MI

6-3 Health and Wellness Programs at St. Mary’s Medical Center, Huntington, WV, and ThePrincipal Financial Group, Des Moines, IA

6-4 Wellness Programs at The MITRE Corporation, Bedford, MA/McLean, VA

6-5 Employee Benefit Research Institute (EBRI) Study on Investing in Employee Health

6-6 Flexible Schedules and Job Sharing at Scripps Health, San Diego, CA

6-7 Eldercare Back-up Program at Scottsdale Healthcare, Scottsdale, AZ; New York LifeInsurance Company, New York, NY; and Stanley Consultants, Inc., Muscatine, IA

6-8 Access to Childcare for Grandchildren

7-1 Supporting Volunteerism at First Horizon National Corporation, Memphis, TN

8-1 Illustrations of Flexibility

8-2 Measuring the Value of the Long-Service Employee at First Horizon National Corporation,Memphis, TN

8-3 Measuring Program Results and Return on Investment at Scripps Health, San Diego, CA

8-4 Measuring the Impact of Healthcare Interventions


APPENDIX 3: AARP Best Employers for Workers Over 50 Cited in this Report

Year(s) Honored as one of the AARP Best Employers for Workers

Name City State Over 50

Adecco Employment Services Melville NY 2002, 2003, 2004

Augusta Health Care Inc. Fishersville VA 2003

Baptist Health South Florida Coral Gables FL 2001, 2002, 2003

Bon Secours Richmond Health System Richmond VA 2003, 2004

The Charles Stark Draper Laboratory, Inc. Cambridge MA 2004

Children’s Health System-Birmingham Birmingham AL 2003

Deere & Company Moline IL 2003, 2004

DentaQuest Ventures, Inc. Boston MA 2004

Farmers Insurance Group of Companies Los Angeles CA 2003

First Horizon National Corporation Memphis TN 2003, 2004

Freeport Health Network Freeport IL 2003

Hoffmann-La Roche Inc. Nutley NJ 2003, 2004

Lincoln Financial Group Philadelphia PA 2003, 2004

Loudoun Healthcare, Inc. Leesburg VA 2004

Massachusetts Institute of Technology Cambridge MA 2003

Minnesota Life St. Paul MN 2004

The MITRE Corporation Bedford/McLean MA/VA 2001, 2003

New York Life Insurance Company New York NY 2002

The Ohio State University Medical Center Columbus OH 2003

Pinnacle West Capital Corporation Phoenix AZ 2003

Pitney Bowes, Inc. Stamford CT 2004

The Principal Financial Group Des Moines IA 2002, 2003, 2004

Scottsdale Healthcare Scottsdale AZ 2003, 2004

Scripps Health San Diego CA 2004

SSM Health Care St. Louis MO 2003, 2004

St. Mary's Medical Center Huntington WV 2003, 2004

Stanley Consultants, Inc. Muscatine IA 2002, 2004

Thomson West Eagan MN 2003

The Vanguard Group Valley Forge PA 2004

Volkswagen of America, Inc. Auburn Hills MI 2003, 2004

APPENDIX 4: All AARP Best Employers for Workers Over 50,2001, 2002, 2003, 2004



Adecco Employment Services Melville NY 2002, 2003, 2004

ABN AMRO North America, Inc. Chicago IL 2001, 2002

The Aerospace Corporation El Segundo CA 2002, 2003

Augusta Health Care Inc. Fishersville VA 2003

Avis Rent A Car System, Inc. Parsippany NJ 2001

Baptist Health South Florida Coral Gables FL 2001, 2002, 2003

Beaumont Hospitals Southfield MI 2004

Bon Secours Richmond Health System Richmond VA 2003, 2004

Brethren Village Lancaster PA 2003, 2004

CALIBRE Alexandria VA 2002

Camping World Bowling Green KY 2001

Centegra Health System Woodstock IL 2004

The Charles Stark Draper Laboratory, Inc. Cambridge MA 2004

Children’s Health System-Birmingham Birmingham AL 2003

DaVita, Inc. Torrance CA 2002

Deere & Company Moline IL 2003, 2004

Delaware North Companies Inc. Buffalo NY 2004

DentaQuest Ventures, Inc. Boston MA 2004

Farmers Insurance Group of Companies Los Angeles CA 2003

First Horizon National Corporation Memphis TN 2003, 2004

Foley’s Department Stores Houston TX 2001

Freeport Health Network Freeport IL 2003

Gemini, Incorporated Cannon Falls MN 2004

Giant Eagle, Inc. Pittsburgh PA 2001

The Hartford Financial Services Group, Inc. Hartford CT 2002

Hoffmann-La Roche Inc. Nutley NJ 2003, 2004

Howard University Washington DC 2002

Hyatt Hotels Corporation Chicago IL 2001

Lee County Electric Cooperative North Fort Myers FL 2004

Lincoln Financial Group Philadelphia PA 2003, 2004




Loudoun Healthcare, Inc. Leesburg VA 2004

Massachusetts Institute of Technology Cambridge MA 2003

The Methodist Hospital Houston TX 2004

Minnesota Life St. Paul MN 2004

The MITRE Corporation Bedford/McLean MA/VA 2001, 2003

Mitretek Systems Falls Church VA 2002, 2004

New York Life Insurance Company New York NY 2002

New York University Medical Center New York NY 2004

North Memorial Health Care Robbinsdale MN 2004

The Ohio State University Medical Center Columbus OH 2003

Oregon Health & Science University Portland OR 2001

Pinnacle West Capital Corporation Phoenix AZ 2003

Pitney Bowes, Inc. Stamford CT 2004

The Principal Financial Group Des Moines IA 2002, 2003, 2004

Prudential Financial Newark NJ 2001, 2002

QUALCOMM, Inc. San Diego CA 2002

RESTART Temps, Inc. Camp Hill PA 2001

Scottsdale Healthcare Scottsdale AZ 2003, 2004

Scripps Health San Diego CA 2004

Smurfit-Stone Container Corporation Clayton MO 2004

Sonoco Hartsville SC 2004

SSM Health Care St. Louis MO 2003, 2004

St. Mary’s Medical Center Huntington WV 2003, 2004

Stanley Consultants, Inc. Muscatine IA 2002, 2004

Thomson West Eagan MN 2003

Ultratech, Inc. San Jose CA 2002, 2003

The Vanguard Group Valley Forge PA 2004

Volkswagen of America, Inc. Auburn Hills MI 2003, 2004

WELBRO Building Corporation Maitland FL 2004

West Virginia University Hospitals Morgantown WV 2004

Westgate Resorts Orlando FL 2004

Whirlpool Corporation Benton Harbor MI 2003

Zurich North America Schaumburg IL 2004


AARP is a nonprofit, nonpartisanmembership organization dedicated tomaking life better for people 50 and over.We provide information and resources;engage in legislative, regulatory, and legaladvocacy; assist members in serving theircommunities; and offer a wide range ofunique benefits, special products, andservices for our members. These includeAARP The Magazine, published bimonthly;AARP Bulletin, our monthly newspaper;AARP Segunda Juventud, our quarterlynewspaper in Spanish; NRTA Live & Learn,our quarterly newsletter for 50+ educators;and our Web site, www.aarp.org. We havestaffed offices in all 50 states, the Districtof Columbia, Puerto Rico, and the U.S.Virgin Islands.

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601 E Street, NW Washington, DC 20049 http://research.aarp.org

Rehiring Retirees R Phased Retirement Options R Disability Benefits R Job SharingTargeted Education and Training Opportunities R Specialized Career OpportunitiesJob Mobility RMentoring R Knowledge Transfer R Employee Assistance ProgramsOn-Site Rehabilitation R Lifelong Learning Options R Professional DevelopmentPartnering R Positive Corporate Culture R Financial Packages R Eldercare Services Caregiving Support R Proactive Hiring Practices R Community Partnership OptionsPrescription Drug Benefits R Workplace Flexibility R Long-term Care Insurance Health and Wellness Programs R Flexible Schedules R Part-time Health BenefitsCareer ManagementRSuccession PlanningRProfit SharingRVolunteer Programs Job Transfer Opportunities R Retiree Relations R Employee Attraction + RetentionWorkplace Redesign R Lifelong Learning R Job Sharing Programs R Profit SharingRehiring Retirees R Phased Retirement Options R Disability Benefits R Job SharingTargeted Education and Training Opportunities R Specialized Career OpportunitiesJob Mobility RMentoring R Knowledge Transfer R Employee Assistance ProgramsOn-Site Rehabilitation R Lifelong Learning Options R Professional DevelopmentPartnering R Positive Corporate Culture R Financial Packages R Eldercare Services Caregiving Support R Proactive Hiring Practices R Community Partnership OptionsPrescription Drug Benefits R Workplace Flexibility R Long-term Care Insurance Health and Wellness Programs R Flexible Schedules R Part-time Health BenefitsCareer ManagementRSuccession PlanningRProfit SharingRVolunteer Programs Job Transfer Opportunities R Retiree Relations R Employee Attraction + RetentionWorkplace Redesign R Lifelong Learning R Job Sharing Programs R Profit SharingRehiring Retirees R Phased Retirement Options R Disability Benefits R Job SharingTargeted Education and Training Opportunities R Specialized Career Opportunities

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