Workforce Planning: Aging and Employment

1. Workforce Planning: Aging and Employment Learning Module 1�Background Barbara McIntosh, Ph.D.  NOTE TO INSTRUCTOR: Preparation for this course is best done by keeping up with news and reviewing reports issued by business associations and the federal government. Some of these kinds of documents are listed in the notes section on the first slide in each module. SUGGESTED INSTRUCTOR READING: AARP. (2002). Staying Ahead of the Curve: The AARP Work and Career Study. Research Report #D17772. http://research.aarp.org/econ/multiwork.html. Young, M., Piktialis, D., and Rappaport, A. (2007). Grey Skies, Silver Linings: How Companies are Forecasting, Managing and Recruiting a Mature Workforce. The Conference Board, Research Report 1409.NOTE TO INSTRUCTOR: Preparation for this course is best done by keeping up with news and reviewing reports issued by business associations and the federal government. Some of these kinds of documents are listed in the notes section on the first slide in each module. SUGGESTED INSTRUCTOR READING: AARP. (2002). Staying Ahead of the Curve: The AARP Work and Career Study. Research Report #D17772. http://research.aarp.org/econ/multiwork.html. Young, M., Piktialis, D., and Rappaport, A. (2007). Grey Skies, Silver Linings: How Companies are Forecasting, Managing and Recruiting a Mature Workforce. The Conference Board, Research Report 1409.

2. Workforce Planning: Aging and Employment Course Objectives Appreciate the characteristics of normal, successful aging. Understand the legal and social policy backdrop for the aging U.S. labor force. Discuss the labor force dynamics facing older workers and employers.

3. Course Objectives Identify the issues confronting employers regarding older worker employment. Understand the effect of age on work role. Outline necessary changes in human resource policies and practices with respect to aging workers. Explain the economic incentives and disincentives to work confronting aging Americans. Analyze employment options and the applicability of international examples.

4. Suggested Texts Beatty, Paulette T., and Visser, Roemer M.S., (Eds.). (2005). Thriving on an Aging Workforce. Malabar Fla. Krieger Publishing Company. RAND. Karoly, L., and Panis, S. The 21st Century at Work: Forces Shaping the Future Workforce and Workplace in the United States. MR � 164. 2004 (download file at www.rand.org). � To access the RAND file, click on �Research� on the web site and then go to �Workforce�. The report cited above is highlighted in a box at the bottom of that page. Depending on the new content, another possible text is the Aging Annual Editions published annually by McGraw-Hill. This is a collection of current articles on aging, broadly defined. (The chapters on death and dying are obviously not applicable in this course.) Another option for reading material in specific areas is to require the most recent reports generated by AARP, The Center on Aging & Work at Boston College, The Conference Board, The Urban Institute, etc. These are the primary organizations publishing articles about the aging workforce on a regular basis. Some articles are more appropriate for topic areas than others. Instructor and students should examine these sites for material that interests them, particularly as it relates to the project. To access the RAND file, click on �Research� on the web site and then go to �Workforce�. The report cited above is highlighted in a box at the bottom of that page. Depending on the new content, another possible text is the Aging Annual Editions published annually by McGraw-Hill. This is a collection of current articles on aging, broadly defined. (The chapters on death and dying are obviously not applicable in this course.) Another option for reading material in specific areas is to require the most recent reports generated by AARP, The Center on Aging & Work at Boston College, The Conference Board, The Urban Institute, etc. These are the primary organizations publishing articles about the aging workforce on a regular basis. Some articles are more appropriate for topic areas than others. Instructor and students should examine these sites for material that interests them, particularly as it relates to the project.

5. Essential Resources Professional Associations: Society for Human Resource Management (SHRM), www.shrm.org. AARP, www.aarp.org. Gerontological Society of America, www.geron.org. National Council on the Aging (MaturityWorks Alliance), www.ncoa.org. American Society on Aging (Business Forum on Aging), www.asaging.org. Association for Gerontology in Higher Education (AGHE), www.aghe.org. Chamber of Commerce, Institute for a Competitive Workforce, www.uschamber.com. Urban Institute, www.urban.org. Students should be encouraged to join SHRM and to check the research publications of the other organizations listed on the slide. For the instructor: The Association for Gerontology in Higher Education (AGHE) sends e-mails with tips for teaching gerontology that are very useful. AARP Academic Programs Office also has an e-mail newsletter on teaching workforce issues. Students should be encouraged to join SHRM and to check the research publications of the other organizations listed on the slide. For the instructor: The Association for Gerontology in Higher Education (AGHE) sends e-mails with tips for teaching gerontology that are very useful. AARP Academic Programs Office also has an e-mail newsletter on teaching workforce issues.

6. The Current Pulse Government Sources Department of Labor: Women�s Bureau and Bureau of Labor Statistics Governmental Accountability Office Administration on Aging, etc. Clipping Service Daily clipping service where aging issues appear in the worldwide press: Current Awareness in Aging Research E-Clippings (send e-mail request to subscribe to fiss@ssc.wisc.edu). The federal government generates frequent reports on aging issues; students should not forget that this is a valuable source of information when conducting research for their projects. Recommend that students subscribe to the following daily clipping service and at least check the headlines. They do not need to open every link. Many articles will not relate specifically to work, but do place employment in context. The Current Awareness in Aging Research E-Clippings are available from: Charlie Fiss Information Manager Data and Information Services Center Rm. 3329 Social Science Bldg 1180 Observatory Drive Madison, WI 53706-1393 Phone: (608) 265-9240 Fax: (608) 262-8400 Email: fiss@ssc.wisc.edu Students can subscribe to the service by e-mailing Mr. Fiss. � The federal government generates frequent reports on aging issues; students should not forget that this is a valuable source of information when conducting research for their projects. Recommend that students subscribe to the following daily clipping service and at least check the headlines. They do not need to open every link. Many articles will not relate specifically to work, but do place employment in context. The Current Awareness in Aging Research E-Clippings are available from: Charlie Fiss Information Manager Data and Information Services Center Rm. 3329 Social Science Bldg 1180 Observatory Drive Madison, WI 53706-1393 Phone: (608) 265-9240 Fax: (608) 262-8400 Email: fiss@ssc.wisc.edu Students can subscribe to the service by e-mailing Mr. Fiss. �

7. Course Overview: Modules Background. Labor markets. Employee perspective on aging. Employer perspective on aging. Managing productivity. Careers and aging workers. Economic considerations: incentives and disincentives to work. International perspectives. This slide outlines all the modules in the course. The course starts with an overview of course context and a discussion about why understanding the aging workforce and older workers is important. These reasons include: Projected labor shortages and the need to remain competitive. The brain drain resulting from anticipated retirements. The individual�s ability to work longer because of increased life expectancy. The necessity for the individual to work longer because of financial uncertainty. Changing dynamics in the workplace; hours of work, multigenerational issues, etc. The course examines these issues first from the individual perspective and then the employer perspective. The last two modules return to context and the key drivers of change in the future � U.S. social supports and global changes. This slide outlines all the modules in the course. The course starts with an overview of course context and a discussion about why understanding the aging workforce and older workers is important. These reasons include: Projected labor shortages and the need to remain competitive. The brain drain resulting from anticipated retirements. The individual�s ability to work longer because of increased life expectancy. The necessity for the individual to work longer because of financial uncertainty. Changing dynamics in the workplace; hours of work, multigenerational issues, etc. The course examines these issues first from the individual perspective and then the employer perspective. The last two modules return to context and the key drivers of change in the future � U.S. social supports and global changes.

8. Module 1. Background Introduction: Why are we concerned? Definitions. Overview of demographics. Normal aging: health. Stereotypes. Age discrimination issues. This slide details what will be covered in this module. Introduction: We are concerned about this topic area because of: The brain drain resulting from anticipated retirements. The individual�s ability to work longer because of increased life expectancy. The necessity for individual�s to work longer because of financial uncertainty. Changing dynamics in the workplace; hours of work, multigenerational issues, etc. The projected labor shortages may influence U.S. competitiveness. Understanding the definition of age is important because it is shifting. �Today�s 50 is yesterday�s 40.� Today�s �older� population does not feel old, and they do not want to be considered old. This certainly has implications for intention to keep working! Demographics: The numbers highlight the looming issues associated with the retiring baby boomers. This background is important to understand the effect on the organization in general and HR in particular. Health: Health is included here because there are societal misperceptions (reflected in jokes, birthday greetings, etc.) about age and aging. Given the shifting demographics, can we rely on the physical and mental abilities of our aging workers? Stereotypes: The discussion leads into an overview of the stereotypes that everyone holds about age, whether consciously or unconsciously. Again, this is important in the workplace because it relates to the organization�s culture, willingness to hire older workers, training and development opportunities for those who are employed, etc. Failure to do so obviously may lead to claims of age discrimination. This slide details what will be covered in this module. Introduction: We are concerned about this topic area because of: The brain drain resulting from anticipated retirements. The individual�s ability to work longer because of increased life expectancy. The necessity for individual�s to work longer because of financial uncertainty. Changing dynamics in the workplace; hours of work, multigenerational issues, etc. The projected labor shortages may influence U.S. competitiveness. Understanding the definition of age is important because it is shifting. �Today�s 50 is yesterday�s 40.� Today�s �older� population does not feel old, and they do not want to be considered old. This certainly has implications for intention to keep working! Demographics: The numbers highlight the looming issues associated with the retiring baby boomers. This background is important to understand the effect on the organization in general and HR in particular. Health: Health is included here because there are societal misperceptions (reflected in jokes, birthday greetings, etc.) about age and aging. Given the shifting demographics, can we rely on the physical and mental abilities of our aging workers? Stereotypes: The discussion leads into an overview of the stereotypes that everyone holds about age, whether consciously or unconsciously. Again, this is important in the workplace because it relates to the organization�s culture, willingness to hire older workers, training and development opportunities for those who are employed, etc. Failure to do so obviously may lead to claims of age discrimination.

9. Aging and Employment: Why Are We Concerned in HR? Shifting demographics and predicted future labor shortages. Brain drain and organizational learning. Improvements in life expectancy; productive activity in later life. Pensions and health care financing. Intergenerational issues and HR policies and practices. This slide is intended to reinforce that fact that it is critical for HR to anticipate change and behave strategically. We are concerned in HR about the aging workforce and older workers for the reasons listed above. Ask students add to this list. For example: The technology/age interface (telecommuting). Globalization; other industrialized countries are also aging, developing countries may not have the skills we need, etc. This slide is intended to reinforce that fact that it is critical for HR to anticipate change and behave strategically. We are concerned in HR about the aging workforce and older workers for the reasons listed above. Ask students add to this list. For example: The technology/age interface (telecommuting). Globalization; other industrialized countries are also aging, developing countries may not have the skills we need, etc.

10. Definitions What is �old�? Perception. Legal definition. Behavior. Cohorts. What is �work�? Productive activity. Before having this discussion, ask students their definition of age and how they would define an older worker. Their answers open their understanding of the topic and issues. What is �old�? Perception: Depends on the individual. Definition and perception of age has changed with succeeding generations (longevity and improved health are extending the meaning of �old�). Legal Definition: 40 years of age and older as defined by the Age Discrimination in Employment Act (ADEA). Behavior: Depends on the individual. Some individuals act very young at 70 and others act very old at 30. Cohorts: Old is a very general term. Split into groups, e.g., 40-55, 55-65, 65-79, 80+ (very different needs and perceptions in different cohorts, especially regarding work). What is �work�? (This discussion is important because some consider only paid activity to be work. Work hours and work flexibility are changing. In addition, employers need to consider the role of experienced volunteers in the future.) What is �productive activity�? Discuss contribution to society. Paid work. Unpaid work inside the home; �women�s work�. Unpaid work outside the home; volunteering. This discussion may also be extended to include leisure: �Is having fun, work?� There will be a more detailed discussion of these activities in Module 2. Before having this discussion, ask students their definition of age and how they would define an older worker. Their answers open their understanding of the topic and issues. What is �old�? Perception: Depends on the individual. Definition and perception of age has changed with succeeding generations (longevity and improved health are extending the meaning of �old�). Legal Definition: 40 years of age and older as defined by the Age Discrimination in Employment Act (ADEA). Behavior: Depends on the individual. Some individuals act very young at 70 and others act very old at 30. Cohorts: Old is a very general term. Split into groups, e.g., 40-55, 55-65, 65-79, 80+ (very different needs and perceptions in different cohorts, especially regarding work). What is �work�? (This discussion is important because some consider only paid activity to be work. Work hours and work flexibility are changing. In addition, employers need to consider the role of experienced volunteers in the future.) What is �productive activity�? Discuss contribution to society. Paid work. Unpaid work inside the home; �women�s work�. Unpaid work outside the home; volunteering. This discussion may also be extended to include leisure: �Is having fun, work?� There will be a more detailed discussion of these activities in Module 2.

11. Forces to Extend Work Life National policy (government). Human resource policy (employer) Labor shortage. No mandatory retirement age. Economic necessity (older employee). Psychosocial needs (older employee). Better jobs � knowledge workers. Flexibility (work hours), availability. Balanced work-life emphasis. This slide and the next are overview slides. They are intended to get students thinking very broadly about the role of work from different viewpoints: societal (governmental), the employer, and the employee. To stimulate discussion, ask students to discuss why work is important from these perspectives. National policy: (examples) The age to draw full retirement benefits under Social Security has been increased. Title V of the Older Americans Act; the Senior Community Service Employment Program (SCSEP). Employers are not only prohibited from forcing older workers to retire, there is increasing evidence that many employers (like IBM, CVS and the federal government) are responding to labor shortages with aggressive retention policies. Older workers are healthier than ever before, and are considering working longer for both economic and social reasons. Work itself has changed. It is not as physically demanding. There is now more opportunity than ever before for flexible work arrangements that are attractive in the context of work-life balance for all workers. This slide and the next are overview slides. They are intended to get students thinking very broadly about the role of work from different viewpoints: societal (governmental), the employer, and the employee. To stimulate discussion, ask students to discuss why work is important from these perspectives. National policy: (examples) The age to draw full retirement benefits under Social Security has been increased. Title V of the Older Americans Act; the Senior Community Service Employment Program (SCSEP). Employers are not only prohibited from forcing older workers to retire, there is increasing evidence that many employers (like IBM, CVS and the federal government) are responding to labor shortages with aggressive retention policies. Older workers are healthier than ever before, and are considering working longer for both economic and social reasons. Work itself has changed. It is not as physically demanding. There is now more opportunity than ever before for flexible work arrangements that are attractive in the context of work-life balance for all workers.

12. Forces Restraining Extension of Work Life Youth culture. Slow-growth economy. Hiring and retention practices of some organizations. Labor cost inflation. Labor union policy (in some cases). Intergenerational conflict. Negative stereotypes about older workers. The talking points on this slide are self-explanatory. Ask students to elaborate on the idea of a youth culture. Discussion about intergenerational conflict (such as older workers �blocking� younger workers� promotions) can also be a good debate topic. The talking points on this slide are self-explanatory. Ask students to elaborate on the idea of a youth culture. Discussion about intergenerational conflict (such as older workers �blocking� younger workers� promotions) can also be a good debate topic.

13. Demographics In 2000, 35 million (1 in 8) in the U.S. are 65 and older. By 2030, one in five (20 percent) will be 65 and older. Propelled by the baby boom: 76 million children were born between 1946 and 1964. Increased longevity: The �old-old� (85 and older) are the fastest growing cohort. Decreasing fertility: The �baby bust�. Gender gap. Women outlive men. At age 85, there are 41 men for every 100 women. Diversity: In 2000, 84 percent are white. By 2050, this number will drop to 64 percent. This slide highlights key demographic projections. It is important to emphasize that society will look and function much differently because of these shifts. From the HR perspective, these shifts mean the workforce will be older. Attracting and retaining this older workforce will require different policies and practices, including workplace flexibility, transition assistance, training in managing a multigenerational workforce, etc. This demographic information is available in multiple publications, but the instructor may wish to review the following: Karoly, L.A., and Panis, C.W.A. (2004). The 21st Century at Work: Forces Shaping the Future Workforce and Workplace in the United States. Santa Monica, CA: Rand Labor and Population. (Chapter 2.) Growing Older in America: The Health and Retirement Study. National Institute on Aging, National Institutes of Health, U.S. Department of Health and Human Services. U.S. General Accounting Office. (2001). Older Workers: Demographic Trends Pose Challenges for Employers and Workers. GAO-02-85. Washington, DC. Also see: Brucker, E. (2006). Managing Transitions in an Aging Society: What Should Business Student Know? Occasional Paper No. 1, September 2006. AARP Office of Academic Affairs. This slide highlights key demographic projections. It is important to emphasize that society will look and function much differently because of these shifts. From the HR perspective, these shifts mean the workforce will be older. Attracting and retaining this older workforce will require different policies and practices, including workplace flexibility, transition assistance, training in managing a multigenerational workforce, etc. This demographic information is available in multiple publications, but the instructor may wish to review the following: Karoly, L.A., and Panis, C.W.A. (2004). The 21st Century at Work: Forces Shaping the Future Workforce and Workplace in the United States. Santa Monica, CA: Rand Labor and Population. (Chapter 2.) Growing Older in America: The Health and Retirement Study. National Institute on Aging, National Institutes of Health, U.S. Department of Health and Human Services. U.S. General Accounting Office. (2001). Older Workers: Demographic Trends Pose Challenges for Employers and Workers. GAO-02-85. Washington, DC. Also see: Brucker, E. (2006). Managing Transitions in an Aging Society: What Should Business Student Know? Occasional Paper No. 1, September 2006. AARP Office of Academic Affairs.

14. Projected Demographic Shift Ratio of population 20 to 64 compared to 65 and older: Source: Congressional Budget Office Based on Social Security Administration Data This slide illustrates the demographics discussed on the previous slide. The number of people working (vertical axis) compared to individuals age 65+ is shrinking. This slide can be discussed in terms of dependency ratios. The years between 20 and 64 are still considered to be the prime working years, but the proportion of those working to those not working is shrinking dramatically. In relationship to Social Security: 1960 � 5.1 workers per beneficiary. 2004 � 3.3 workers per beneficiary. 2031 � 2.1 workers per beneficiary. (These data will be discussed in more detail in Module 7.) Instructor: For background, the instructor may wish to read the following statement which was made April 27, 2005, before the U.S. Senate Special Committee on Aging by Barbara Boviberg, Director, Education Workforce and Income Security, GAO: U.S. Government Accountability Office. (2005). Redefining Retirement: Options for Older Americans. GAO-05-620T. Washington DC. This slide illustrates the demographics discussed on the previous slide. The number of people working (vertical axis) compared to individuals age 65+ is shrinking. This slide can be discussed in terms of dependency ratios. The years between 20 and 64 are still considered to be the prime working years, but the proportion of those working to those not working is shrinking dramatically. In relationship to Social Security: 1960 � 5.1 workers per beneficiary. 2004 � 3.3 workers per beneficiary. 2031 � 2.1 workers per beneficiary. (These data will be discussed in more detail in Module 7.) Instructor: For background, the instructor may wish to read the following statement which was made April 27, 2005, before the U.S. Senate Special Committee on Aging by Barbara Boviberg, Director, Education Workforce and Income Security, GAO: U.S. Government Accountability Office. (2005). Redefining Retirement: Options for Older Americans. GAO-05-620T. Washington DC.

15. Normal Aging: Health Physical: Strength. Reaction time. Senses. Mental. Psychosocial. Self-perceptions: (social-cognition). Health: Health is covered in this module because there are societal misperceptions (reflected in jokes, birthday greetings, etc.) about age and aging. Given the shifting demographics, can we rely on the physical and mental abilities of our aging workers? Physical: Strength: As we age, there is some reduction in muscle mass; but strength can be maintained with exercise. Reaction time: As we age, reaction time slows slightly, but has little effect on jobs in a service economy. Senses: We experience some loss, but generally does not affect job performance. Mental: There may be some short-term memory loss (what is evident at younger ages is ignored but taken more seriously at older ages). Recall can be taught. Psychosocial: Personality remains fairly stable over time. Self-perceptions: social-cognition. How does society �expect� us to behave? Active or retiring? Health: Health is covered in this module because there are societal misperceptions (reflected in jokes, birthday greetings, etc.) about age and aging. Given the shifting demographics, can we rely on the physical and mental abilities of our aging workers? Physical: Strength: As we age, there is some reduction in muscle mass; but strength can be maintained with exercise. Reaction time: As we age, reaction time slows slightly, but has little effect on jobs in a service economy. Senses: We experience some loss, but generally does not affect job performance. Mental: There may be some short-term memory loss (what is evident at younger ages is ignored but taken more seriously at older ages). Recall can be taught. Psychosocial: Personality remains fairly stable over time. Self-perceptions: social-cognition. How does society �expect� us to behave? Active or retiring?

16. Future Expectations Regarding Health Behavioral changes (e.g., smoking cessation). Self-perception changing (re: physical and mental conditions). Continuous improvement in availability of preventive care. Changes in societal/market/organizational responses to health limitations. Medical advances (e.g., joint replacement, continuing activity). This slides highlights just a few of the health changes that will be evident in the future. The behaviors of the students� (assuming they are typically college-age) parents and/ or grandparents will change the potential composition of the labor force in the future. The instructor may wish to have the students elaborate on this list. Instructor: It is recommended that the instructor read �A Profile of Older Americans: 2005.� Administration on Aging. U.S. Department of Health and Human Services. Washington D.C. These reports have been made available annually since 1982 The CDC also has a series of publications on the health of Americans. This slides highlights just a few of the health changes that will be evident in the future. The behaviors of the students� (assuming they are typically college-age) parents and/ or grandparents will change the potential composition of the labor force in the future. The instructor may wish to have the students elaborate on this list. Instructor: It is recommended that the instructor read �A Profile of Older Americans: 2005.� Administration on Aging. U.S. Department of Health and Human Services. Washington D.C. These reports have been made available annually since 1982 The CDC also has a series of publications on the health of Americans.

17. Future Expectations Regarding Health Economic security, including the opportunity to work. Access to preventive care. Education. Family relations: caregiving, support, stress. Social cognition: perceived role in society. Community support. This is an extension of the previous slide. Before showing this slide, the instructor can ask the students to identify the factors influencing health. This is an extension of the previous slide. Before showing this slide, the instructor can ask the students to identify the factors influencing health.

18. Life Expectancy of 65-Year-Olds Over Time This slide illustrates the increasing life expectancy resulting from the improvements in health. The bottom line is that today�s 65-year-olds can expect to live to into their early 80s if they are a man, and closer to 85 if they are a woman. Life expectancy is increasing dramatically. In other words, an individual is looking at 20 to 25 years in retirement if they retire at age 62, which is what half of all Americans do. From an HR perspective: Current employees will consider extending their work lives. This will have implications for deployment, integrating generations, meaningful retention, etc.This slide illustrates the increasing life expectancy resulting from the improvements in health. The bottom line is that today�s 65-year-olds can expect to live to into their early 80s if they are a man, and closer to 85 if they are a woman. Life expectancy is increasing dramatically. In other words, an individual is looking at 20 to 25 years in retirement if they retire at age 62, which is what half of all Americans do. From an HR perspective: Current employees will consider extending their work lives. This will have implications for deployment, integrating generations, meaningful retention, etc.

19. Commonly Held Stereotypes(See: Palmore, E. (1999) Ageism, Springer Publishing) �To be old is to be sick.� ~ 50 percent of Americans believe health is a �very serious problem� for individuals over the age of 65. Reality? How does increased life expectancy fit with commonly held stereotypes about skills and abilities? Ask students to give examples of stereotyping evident in society. For example, greeting cards typically reinforce negative stereotypes. Ask them where they see positive images of age. Examples include Patagonia ads, CVS ads, and nutrition supplement ads. Reality: 85 percent of those 65 years of age and older are healthy enough to engage in basic activities of daily living (Weiner et al., 1990). Only 5 percent of those 65 years of age and older are institutionalized (Kahana, 1995). Older persons (65 years of age and older ) have more chronic illnesses that limit their activity (38 percent versus 15 percent in younger persons) but elders have half as many acute illnesses as do younger persons (National Center for Health Statistics, 1995). Older worker are absent less than younger workers (Riley and Foner, 1968). There are multiple versions of the Facts on Aging Quiz and can be found with detailed explanations of the answers in Erdman Palmore�s book: Palmore, E. (1998). The Facts on Aging Quiz (2nd ed.). New York, Springer. It is useful to give this quiz first. Students will recognize how they hold many of the same stereotypes about age and older persons. (Springer Publishing holds the copyright to these quizzes. The instructor can contact them directly to secure permission to use the quiz.) Sources: Kahana, E. (1995). Isolation. In G. Maddox (Ed.) The encyclopedia of aging. New York: Springer. National Center for Health Statistics. (1995). Current estimates from the health interview survey: 1994 (series 10, No. 196) Washington, DC: U.S. Government Printing Office. Riley, M., and Foner, A. (1968). Aging and society Vol 1. New York: Russell Sage. How does increased life expectancy fit with commonly held stereotypes about skills and abilities? Ask students to give examples of stereotyping evident in society. For example, greeting cards typically reinforce negative stereotypes. Ask them where they see positive images of age. Examples include Patagonia ads, CVS ads, and nutrition supplement ads. Reality: 85 percent of those 65 years of age and older are healthy enough to engage in basic activities of daily living (Weiner et al., 1990). Only 5 percent of those 65 years of age and older are institutionalized (Kahana, 1995). Older persons (65 years of age and older ) have more chronic illnesses that limit their activity (38 percent versus 15 percent in younger persons) but elders have half as many acute illnesses as do younger persons (National Center for Health Statistics, 1995). Older worker are absent less than younger workers (Riley and Foner, 1968). There are multiple versions of the Facts on Aging Quiz and can be found with detailed explanations of the answers in Erdman Palmore�s book: Palmore, E. (1998). The Facts on Aging Quiz (2nd ed.). New York, Springer. It is useful to give this quiz first. Students will recognize how they hold many of the same stereotypes about age and older persons. (Springer Publishing holds the copyright to these quizzes. The instructor can contact them directly to secure permission to use the quiz.) Sources: Kahana, E. (1995). Isolation. In G. Maddox (Ed.) The encyclopedia of aging. New York: Springer. National Center for Health Statistics. (1995). Current estimates from the health interview survey: 1994 (series 10, No. 196) Washington, DC: U.S. Government Printing Office. Riley, M., and Foner, A. (1968). Aging and society Vol 1. New York: Russell Sage.

20. Commonly Held Stereotypes Older people have more accidents. Reality? Mental abilities decline with age. Reality? You can�t teach old dogs new tricks. Reality? Palmore, E. (1999). Ageism. Springer Publishing. Older people have more accidents. Reality: Elders have fewer accidents in the home and on the highway than do younger persons (National Safety Council, 1996). Mental abilities decline with age. Reality: Most elders retain normal mental abilities. You can�t teach old dogs new tricks. Reality: Older workers may learn more slowly and in different ways, but chronological age does not provide a significant influence on ability to learn (Poon, 1995). The capacity to learn is lifelong (Rowe & Kahn, 1998). From an HR perspective, this affects health and safety programming and promotion as well as general training. Sources: National Safety Council. (1996). Accident facts. Chicago: National Safety Council. Poon, L. (1995). Learning. In G. Maddox (Ed.), The encyclopedia of aging. New York: Springer. Rowe, J. & Kahn, R. (1998) Successful aging. New York: Pantheon Books. Older people have more accidents. Reality: Elders have fewer accidents in the home and on the highway than do younger persons (National Safety Council, 1996). Mental abilities decline with age. Reality: Most elders retain normal mental abilities. You can�t teach old dogs new tricks. Reality: Older workers may learn more slowly and in different ways, but chronological age does not provide a significant influence on ability to learn (Poon, 1995). The capacity to learn is lifelong (Rowe & Kahn, 1998). From an HR perspective, this affects health and safety programming and promotion as well as general training. Sources: National Safety Council. (1996). Accident facts. Chicago: National Safety Council. Poon, L. (1995). Learning. In G. Maddox (Ed.), The encyclopedia of aging. New York: Springer. Rowe, J. & Kahn, R. (1998) Successful aging. New York: Pantheon Books.

21. Commonly Held Stereotypes �Older workers usually cannot work as effectively as younger workers.� (Palmore, 1998). Reality? Reality: Studies under actual working conditions show elders performing as well as or better than younger workers (Rix, 1995). Consistency of output tends to increase with age (Riley & Foner, 1968). The HR implications: This evidence must be used to reshape the organizational culture about the value of all workers. Sources: Palmore, E. (1998). The facts on aging quiz (2nd ed.). New York: Springer. Riley, M., & Foner, A. (1968). Aging and society (Vol 1). New York: Russell Sage. Rix, S. (1995). Employment. In G. Maddox, (Ed.), The encyclopedia of aging. New York: Springer. Reality: Studies under actual working conditions show elders performing as well as or better than younger workers (Rix, 1995). Consistency of output tends to increase with age (Riley & Foner, 1968). The HR implications: This evidence must be used to reshape the organizational culture about the value of all workers. Sources: Palmore, E. (1998). The facts on aging quiz (2nd ed.). New York: Springer. Riley, M., & Foner, A. (1968). Aging and society (Vol 1). New York: Russell Sage. Rix, S. (1995). Employment. In G. Maddox, (Ed.), The encyclopedia of aging. New York: Springer.

22. Age Discrimination in Employment It is still prevalent. More than 19,000 cases were filed with EEOC in 2002 (a 14 percent increase over 2001). In 2004, the cost of negotiated settlements in federal age discrimination complaints totaled $69 million (AARP, 2006). 67 percent report age discrimination (AARP, 2003). It is important to discuss the effect of stereotyping in the context of the current legal environment. Understanding the law reduces the probability of a case being filed against an organization. As the statistics on this slide indicate, age discrimination is still prevalent and costly. Sources: AARP. (2002). Staying Ahead of the Curve. Washington DC: AARP. AARP. (2006). Workers 50+: age discrimination. What employers need to know. Washington DC: AARP. It is important to discuss the effect of stereotyping in the context of the current legal environment. Understanding the law reduces the probability of a case being filed against an organization. As the statistics on this slide indicate, age discrimination is still prevalent and costly. Sources: AARP. (2002). Staying Ahead of the Curve. Washington DC: AARP. AARP. (2006). Workers 50+: age discrimination. What employers need to know. Washington DC: AARP.

23. Types of Employment Discrimination An AARP survey showed that: Nine percent of respondents were passed up for promotion or a chance to get ahead because of their age. Fifteen percent of respondents said they did not get hired for a job they applied for because of their age. Six percent reported being laid off, fired, or forced out of a job because of their age. Five percent reported they did not get a raise because of their age. Source: AARP, 2002 These survey results were reported in the AARP publication, Staying Ahead of the Curve, cited on the previous slide. These survey results were reported in the AARP publication, Staying Ahead of the Curve, cited on the previous slide.

24. Legal Sources Bill of Rights/Constitution. Civil Rights Act of 1964. Age Discrimination in Employment Act (ADEA) of 1967. Future: Americans with Disabilities Act (1990). Case law. New legislation. Discrimination based on age is NOT found in the Constitution, although the 14th Amendment ensures due process. Age was not included in the Civil Rights legislation because opponents believed the bill would have a better chance of passing if it were excluded. Three years later, Sen. Claude Pepper (D-Fla.) led the fight to enact the ADEA to correct the omission. The ADEA has since been amended twice to have the retirement age first increased and subsequently removed. Future: The ADA is listed because with an increasing number of older persons in the workforce, it is reasonable to assume that employers will be under more pressure to make reasonable accommodations for older workers. Case law (which is when the courts interpret the law) is continually evolving, and it is here that discriminatory behaviors are clearly defined and redefined. New legislation: Sen. Herbert Kohl (D-Wis.) introduced two bills in 2007 to extend older workers� rights and privileges. This is discussed in more detail in Module 7.Discrimination based on age is NOT found in the Constitution, although the 14th Amendment ensures due process. Age was not included in the Civil Rights legislation because opponents believed the bill would have a better chance of passing if it were excluded. Three years later, Sen. Claude Pepper (D-Fla.) led the fight to enact the ADEA to correct the omission. The ADEA has since been amended twice to have the retirement age first increased and subsequently removed. Future: The ADA is listed because with an increasing number of older persons in the workforce, it is reasonable to assume that employers will be under more pressure to make reasonable accommodations for older workers. Case law (which is when the courts interpret the law) is continually evolving, and it is here that discriminatory behaviors are clearly defined and redefined. New legislation: Sen. Herbert Kohl (D-Wis.) introduced two bills in 2007 to extend older workers� rights and privileges. This is discussed in more detail in Module 7.

25. Age Discrimination in Employment Act Right to gainful employment has long been recognized. The ADEA passed in 1967 with a mandatory retirement age of 70. In 1987, it was amended to eliminate mandatory retirement. Use of an individual�s age as a criterion for employment is generally forbidden. It is permitted only when age is a bona fide occupation qualification (BFOQ). Then it may be used as a factor in employment decisions. BFOQ examples: A movie producer is looking for a teenager to fill the part. AARP is seeking a representative spokesperson for their organization.BFOQ examples: A movie producer is looking for a teenager to fill the part. AARP is seeking a representative spokesperson for their organization.

26. ADEA Protection Covers workers 40 years of age and older. Applies to organizations with 20 or more employees. Applies to organizations that affect interstate commerce. Does not cover bona fide executive or high policy maker (attained 65 and held the position for two years) if entitled to a retirement benefit of at least $44,000. Before showing this slide, ask the students what the mandatory retirement age is. Answers typically range from 62 to 75 years of age. Students need to recognize that their parents are considered older workers. Most have never thought about it or are stunned�.as are their parents. 40 was set as the age because that is when there was evidence that workers experienced age discrimination. It is important to note that states can set more rigorous cut-offs for filing age discrimination suits. In Vermont, for example, the age is 18. The last point is important, because governing boards must have the freedom to remove executives who are not performing as expected.Before showing this slide, ask the students what the mandatory retirement age is. Answers typically range from 62 to 75 years of age. Students need to recognize that their parents are considered older workers. Most have never thought about it or are stunned�.as are their parents. 40 was set as the age because that is when there was evidence that workers experienced age discrimination. It is important to note that states can set more rigorous cut-offs for filing age discrimination suits. In Vermont, for example, the age is 18. The last point is important, because governing boards must have the freedom to remove executives who are not performing as expected.

27. Unlawful Employer Practices To fail or refuse to hire or to discharge any individual or otherwise discriminate against any individual with respect to compensation, terms, conditions or privileges of employment because of such individual�s age; To limit, segregate, or classify employees in any way which would deprive or tend to deprive any individual of employment opportunities or otherwise adversely affect the individual�s status as an employee because of such individual�s age; or To reduce the age rate of any employee in order to comply with this chapter. There is a lot on this slide, but the instructor should read it so that students understand the parameters. There is a lot on this slide, but the instructor should read it so that students understand the parameters.

28. Exceptions Age as an occupation qualification. Other reasonable factors. Laws of a foreign workplace. Seniority system. Employee benefit system. Discipline or discharge for good cause. This slide details the exceptions. Other reasonable factors might include health and safety; however, after numerous age discrimination suits, many police and fire departments have started using performance testing (physical ability to run, lift, climb stairs, etc.) as the employment criterion.This slide details the exceptions. Other reasonable factors might include health and safety; however, after numerous age discrimination suits, many police and fire departments have started using performance testing (physical ability to run, lift, climb stairs, etc.) as the employment criterion.

29. Court Interpretations Applicants judged on non-age related issues: Courtney v. Biosound, Inc., 42 F.3rd 414 (7th Cir. 1994). Promotions must be based on merit: Barber v. CSX Distribution Services, 68 F. 3d 694 (3rd Cir. 1995). It is not important to go into detail on each of these cases, but rather to point out that the courts interpret the law largely in favor of the plaintiffs. Applicants judged on non-age related issues: In the case of Courtney v. Biosound Inc., 42 F.3d 414 (7th Cir.1994) an employee was laid off in a downsizing effort. The employee worked as a consultant for the former employer for two years. The former employer advertised a job opening similar to the job the employee had lost. The employee was interviewed but passed over for a younger employee. Promotions must be based on merit: In the case of Barber v. CSX Distribution Services, 68 F.3d 694 (3rd Cir.1995) the court held that there were indications of discrimination because the supervisor had made some fundamental errors in the hiring process. First, the supervisor did not interview the employee, even though he possessed the qualifications. Second, the documentation of the hiring process was not completed in a timely fashion and gave the appearance of justifying hiring decisions after the fact. Third, the employee who complained about not being promoted was subsequently terminated in a downsizing effort shortly after. It is not important to go into detail on each of these cases, but rather to point out that the courts interpret the law largely in favor of the plaintiffs. Applicants judged on non-age related issues: In the case of Courtney v. Biosound Inc., 42 F.3d 414 (7th Cir.1994) an employee was laid off in a downsizing effort. The employee worked as a consultant for the former employer for two years. The former employer advertised a job opening similar to the job the employee had lost. The employee was interviewed but passed over for a younger employee. Promotions must be based on merit: In the case of Barber v. CSX Distribution Services, 68 F.3d 694 (3rd Cir.1995) the court held that there were indications of discrimination because the supervisor had made some fundamental errors in the hiring process. First, the supervisor did not interview the employee, even though he possessed the qualifications. Second, the documentation of the hiring process was not completed in a timely fashion and gave the appearance of justifying hiring decisions after the fact. Third, the employee who complained about not being promoted was subsequently terminated in a downsizing effort shortly after.

30. Court Interpretations Illegal to terminate an employee due to age considerations: Benjamin v. United Merchants and Manufacturers, Inc., 873 F.2d 41 (2nd Cir. 1989). Illegal, with exceptions under ADEA, to force employee to retire. Verbracken v. Westinghouse Electric Corp., 881 F.2d 1041 (11th Cir. 1989). The courts upheld the provision that it is illegal to terminate an employee based on their age in Benjamin v. United Merchants and Manufacturers, Inc., 873 F.2d 41 (2nd Cir. 1989). In this case, an employee had been demoted twice and fired just before becoming fully vested in the pension program. The company was found liable for discrimination because there was no documentation of poor performance and no documentation indicating the reasons for the demotion. The employee was awarded $336,000 in damages. The Verbracken v. Westinghouse Electric Corp., 881 F.2d 1041 (11th Cir.1989) case upheld the constructive discharge provision that if you effectively force an employee to retire by making their life at work miserable, then the employee did not voluntarily retire. The employee believed that the choice given by the company was to either retire or be laid off. The employer consequently gave the employee the only poor evaluation in a career of good evaluations. The poor evaluation meant that the employee would not qualify for the incentives offered in the reduction in force plan. The employee was awarded $200,000 in damages. The courts upheld the provision that it is illegal to terminate an employee based on their age in Benjamin v. United Merchants and Manufacturers, Inc., 873 F.2d 41 (2nd Cir. 1989). In this case, an employee had been demoted twice and fired just before becoming fully vested in the pension program. The company was found liable for discrimination because there was no documentation of poor performance and no documentation indicating the reasons for the demotion. The employee was awarded $336,000 in damages. The Verbracken v. Westinghouse Electric Corp., 881 F.2d 1041 (11th Cir.1989) case upheld the constructive discharge provision that if you effectively force an employee to retire by making their life at work miserable, then the employee did not voluntarily retire. The employee believed that the choice given by the company was to either retire or be laid off. The employer consequently gave the employee the only poor evaluation in a career of good evaluations. The poor evaluation meant that the employee would not qualify for the incentives offered in the reduction in force plan. The employee was awarded $200,000 in damages.

31. Labor Market Realities You are overqualified. This job would not be a good fit for you. The job has been filled. We will keep you posted. Exercise: Before showing this slide, ask students how they would expect older workers to be received in a job search process. The bullets highlight what older workers are often told. Results: Candidates are not given a fair and equal opportunity to prove themselves. Organizations open themselves to an age discrimination suit. Exercise: Before showing this slide, ask students how they would expect older workers to be received in a job search process. The bullets highlight what older workers are often told. Results: Candidates are not given a fair and equal opportunity to prove themselves. Organizations open themselves to an age discrimination suit.

32. Educate Recruiters! Recruiters (and interviewing managers) should be sensitized to stereotypes (both conscious and unconscious). Focus should be on job description and required job performance. Interviewing teams should include at least one mature worker. Screening materials and/or tests should be printed in 12-pt or 14-pt type for visibility and should allow for variation in completion time. Organizations can and should protect themselves by educating all recruiters and others within the organization who are part of the selection process about age discrimination. After reviewing the slide, ask students what additional efforts would ensure non-discriminatory treatment of all job seekers.Organizations can and should protect themselves by educating all recruiters and others within the organization who are part of the selection process about age discrimination. After reviewing the slide, ask students what additional efforts would ensure non-discriminatory treatment of all job seekers.

33. The Flip Side: Tips for the Older Applicant Facing Discrimination Decide to either walk away or educate (flight or fight). Prepare. Network. A contact could be respected community or business member or associate/former boss. Who do you know? Do your homework. Be articulate about financial position/growth profile/development opportunities. What do you know? Present with a smile. Other?? Ask students to put themselves in the position of the older job seeker. What other suggestions do they have? Responses may include dress, use of technology, etc. Why are these actions more difficult for older workers compared to younger job seekers? They may not have been in the job market for a number of years. They may not know how to present themselves in the current market � e.g., what should the resume look like? They may not be familiar with job boards or online applications.Ask students to put themselves in the position of the older job seeker. What other suggestions do they have? Responses may include dress, use of technology, etc. Why are these actions more difficult for older workers compared to younger job seekers? They may not have been in the job market for a number of years. They may not know how to present themselves in the current market � e.g., what should the resume look like? They may not be familiar with job boards or online applications.

34. The Bottom Line The population is living longer, healthier lives. Expectations about work in later life are changing. Stereotypes about older workers still exist. The legal environment and the increasing numbers of older workers means that discrimination must be actively addressed! The business environment must change in response to the aging workforce. This is a brief summary of Module 1.This is a brief summary of Module 1.