Older Workers in Business: Boomers and Veterans

An article in HR Magazine addressed the dynamics of older workers in business—those who are 50 years or older (Baby Boomers & Veterans). It addresses some interesting myths and realities about older workers:

  • Older workers cost more! This is true. But contrary to popular opinion, the financial difference is only about 10% according to the Urban Institute.
  • Older workers are absent more! Statistically, the US Bureau of Labor Statistics reported that the difference was insignificant. The ratio is 3.2 absences per 100 workers for younger employees. The ratio is 3.6 absences per 100 workers for older employees.
  • Health costs are greater for older workers! The answer here is mixed. As workers age from 40 on, there is a gradual increase in health care costs. Significant health care cost differences do not occur until workers reach age 65. However, even the findings here are mixed as some organizations report that older workers actually cost less for health care (due to the high cost of some child births for younger workers).

The reality is that the cost of older workers is often over-stated.

What older workers cost in higher salaries, they make up with their experience, ability to complete tasks correctly the first time, lower turnover costs, and organizational loyalty. With older workers delaying retirement, managers will need to adjust their view of this demographic in the new millennium.

The analysis that older workers cost more has some faults. Older workers may have higher salaries but these costs can be offest through the impact of their broad experience, lower turnover, and organizational loyalty. Click To Tweet
Written by Robert Tanner | Copyrighted Material | All Rights Reserved Worldwide

This article is accurate to the best of the author’s knowledge.
Content is for informational or educational purposes only and does not substitute for professional advice in business, management, legal, or human resource matters.

Robert Tanner, MBA

Welcome to my leadership blog. I'm the Founder & Principal Consultant of Business Consulting Solutions LLC, a certified practitioner of psychometric assessments, and a former Adjunct Professor of Management. As a leadership professional, I bring 20+ years of real world experience at all levels of management.

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