1. Workforce Planning: Aging and Employment Module 1: Overview Barbara McIntosh, Ph.D., SPHR • 2014
The development of this content was made possible through the support from a grant from the Alfred P. Sloan Foundation.

2. Modules Overview I. Background Overview: Age and Productive Activity
Discrimination, the Legal Environment and Social Policy
Labor Markets: Theory and Labor Force Participation Rates (LFPR)
II. Employment
Employee Perspective
Employer Perspective
Staffing/Job Search Issues
Motivation and Performance
Productivity: Ability and Performance Management
HR Workplace Strategies and the Aging Workforce
This slide and the next one outline the modules in the course.
The course starts with an overview of the context and a discussion about why the aging workforce and older workers are important. The first three modules cover:
Background and the demographics shaping change.
Stereotypes and the legal environment supporting diversity in the workplace.
Labor market dynamics: theory, reality and productivity activity.
The second set of modules focuses on employment and the aging employee in the workplace. The coverage includes:
Older worker needs, abilities and motivation.
Management practices in the multigenerational workplace.
The last two sets of modules discuss the key drivers of change in the future, U.S. social supports and global changes.
There are 12 modules to conform with a 13-week semester (allowing time for exams).
The number of slides covered in each class will depend on the amount of discussion.

3. Modules Overview (continued)
III. Financial Environment
Economic Considerations: Incentives and Disincentives to Work
The Federal Government Interface
IV. Global Environment
12. International examples: Pressures and Lessons

4. Texts
Czaja, S. J., & Sharit, J. (Eds.). (2009). Aging and work: Issues and implications in a changing landscape. Baltimore, MD: Johns Hopkins Univer­sity Press.
Shultz, K., & Adams, G. (2009). Aging and work in the 21st century. New York, NY: Psychology Press.
Optional
Cappelli, P., & Novelli, B. (2010). Managing the older worker. Boston, MA: Harvard Business Press.
Rothwell, W. J., Sterns, H. L., Spokus, D., & Reaser, J. (2008). Working longer. New York, NY: AMACOM.
Either of the first two books could be assigned as the text for undergraduate students.
The second two books are shorter and more applied.
Another possible supplemental text is Annual Editions: Aging published by McGraw-Hill. This is a collection of current articles on aging. The chapters on death and dying are obviously not applicable in this course.
Two additional recommended readings
Delong, D. (2004). Lost knowledge. London: Oxford.
Dychtwald, K., Erickson, T. J., & Morison, R. (2006). Workforce crisis: How to beat the coming shortage of skills and talent. Boston, MA: Harvard Business School Press.
Another option for reading material in specific areas is to require students to read the most recent reports published by AARP, the Sloan Center on Aging & Work at Boston College, The Conference Board, the Urban Institute, etc. These are the leading organizations regularly publishing articles about the aging workforce. Some articles may be more appropriate for specific topic areas than others. Instructor and students should visit these sites for the material that is interesting to them.
Instructor resource/graduate student text
Hedge, J., & Borman, W. (2012). The Oxford handbook of work and aging. New York, NY: Oxford University Press.
This book is excellent. It is scholarly and more current.

5. Essential Resources
Society for Human Resource Management (SHRM),
AARP,
Sloan Center on Aging & Work at Boston College, agingandwork.bc.edu
Gerontological Society of America,
American Society on Aging (Business Forum on Aging),
Association for Gerontology in Higher Education (AGHE),
National Council on the Aging (NCOA),
Chamber of Commerce, Institute for a Competitive Workforce,
Urban Institute,
Students should be encouraged to join SHRM and to check the research publications of the other organizations listed.
For the instructor
The Association for Gerontology in Higher Education (AGHE) issues s with tips for teaching gerontology. The AARP Academic Programs Office also has an newsletter on teaching workforce issues.

6. The Current Pulse Government sources
U.S. Department of Labor ( Women’s Bureau ( and the Bureau of Labor Statistics (
Governmental Accountability Office ( Administration on Aging ( etc.
Clipping service
Daily clipping service of where aging issues appear in the worldwide press: Current Awareness in Aging Research E-Clippings (
The federal government issues numerous reports on aging. Students should be reminded that this is a valuable source of information when conducting research for any assigned projects.
Students may want to subscribe to the daily clipping service noted on the slide 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 Social Science Bldg
1180 Observatory Drive
Madison, WI
Phone: (608)
Fax: (608)
Students can subscribe to the service by ing Mr. Fiss.

7. Module 1: Learning Objectives
At the end of this background module students will be able to:
Frame strategic workforce planning in the context of age.
Discuss the meaning of “age” and “older.”
Understand the population demographics driving the U.S. economy.
Explain the economic incentives and disincentives to work confronting aging Americans.
Place paid work in the context of alternative forms of productive activity.
Basic course description
This module explores aging labor force dynamics from the perspective of the individual, employer and society. It explores the work/leisure tradeoff associated with traditional retirement, compared with the economic uncertainties and forces to extend one’s work life from the perspective of the individual. Retaining or recruiting aging workers to meet predicted labor shortages presents challenges to human resource (HR) policies and practices, particularly in the areas of staffing, training, compensation and rewards, and health and safety. Societal support for social programs, including Social Security and Medicare, will also dramatically influence workforce participation and employer behaviors.
Module 1 description
This module starts with a discussion about perceptions. What is “old” in the context of work? Students need to understand that population demographics are shaping the economic, legal and social changes related to the aging workforce.
This module discusses the incentives and disincentives facing aging workers and employers in the U.S., and then, explores paid work in the context of other forms of productive activity. 7

8. Module 1: Background Define “age” and “older.” Why are we concerned?
Overview of demographics/context.
Forces extending work life.
Forces restraining work/life extensions.
Alternative types of productive activity.
This slide details what will be covered in this module.
Introduction
We are concerned about this topic area because of:
The necessity for individuals to work longer because of financial uncertainty.
The ability for individuals to work longer because of increased life expectancy.
The brain drain resulting from anticipated retirements.
Changing dynamics in the workplace, hours of work, multigenerational issues, etc.
The projected labor shortages that may influence the ability to maintain U.S. competitiveness and to provide services like health care.
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 extending work life!
Demographics
The numbers highlight the looming issues associated with retiring Baby Boomers. This background is important to understand the effect on the organization in general and HR in particular.
Productive activity
It is important to understand the role of paid work in the context of all productive activity. There are alternatives (caregiving and volunteering) that draw older workers out of the labor force.

9. Definitions and Understandings
What is “age”, “older”?
Perception.
Legal definition.
Behavior.
Cohorts.
What is work?
Productive activity.
Ask students their definitions of “age” and how they define an “older worker.”
What is old?
Perception: Sometimes the definition of age is a matter of perception and depends on the individual. The definition and perception of age have changed with succeeding generations because of increased longevity and improved health. Individuals who look “wrinkle-free” and behave young contribute to these perceptions. (We now refer to those more than 85 years of age as the “old-old”).
Legal definition: The Age Discrimination in Employment Act (ADEA) protects workers age 40 and older from discrimination based on age.
Behavior: Depends on the individual; some individuals act very young at 90, and others act old at 40.
Cohorts: Old is a relative term. When individuals are split into age groups (40-55, 55-65, 65-79, 80+), you find very different needs and perceptions regarding age, especially regarding work.
Ask the students to elaborate on these differences.
What is work?
This discussion is important because some consider only paid activity to be work. Hours of work and work flexibility are changing. In addition, employers will need to consider the role of “experienced” volunteers in the future. A good reference is Mark Freedman’s book Encore: Finding Work the Matters in the Second Half of Life.
Activity
Ask students to explore the following websites. The websites are challenging older citizens to engage in meaningful civic activities.
Encore.org (
Experience Corps (
What is productive activity?
Paid work.
Unpaid work inside the home.
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 3.

10. Aging and Employment: Why Is HR Concerned?
Shifting demographics.
Predicted labor shortages (even with the economic downturn; industry-specific).
Brain drain and organizational learning.
Improvements in life expectancy mean more workers are productive in later life.
The recession highlighted economic security; people are working longer and delaying retirement.
Pensions and health care financing are of concern to both individuals and businesses.
A multigenerational workplace means intergenerational issues and HR policies and practices must be examined.
It is critical for HR professionals to anticipate the effect of aging workers in the workplace and to act strategically.
We are concerned in HR about the aging workforce and older workers for the reasons listed on this slide.
These topics will be discussed in detail in upcoming slides.
Activity
Have the students add to this list. For example:
The technology/age interface (telecommuting).
Globalization; other industrialized countries are also aging, but developing countries may not have the skills we need, etc.

11. Demographics
In 2000, there were 35 million Americans age 65 and older in the U.S., representing 1 in 8 Americans.
By 2030, 1 in 5 (20%) will be 65 and older.
The increase is due to the Baby Boom Generation; 76 million Americans were born between 1946 and 1964.
The “old-old” (85 and older) is the fastest-growing cohort.
Decreasing fertility: The “baby bust.”
Diversity: In 2000, among those 65 and older, 5.7 million (16.3%) were part of racial or ethnic minority populations. This is projected to increase to 20.2 million (28%) by 2030.
This slide shows key demographic projections. Society will look and function much differently because of these shifts.
From an HR perspective, these shifts mean the workforce will be older. Attracting and retaining older workers will require different policies and practices, including workplace flexibility, transition assistance and training in managing a multigenerational workforce.
This demographic information has been reported in numerous publications. For more information, the instructor may want to review the following:
Administration on Aging, Administration for Community Living, U.S. Department of Health and Human Services. A profile of older Americans: Retrieved from
See also:
Tishman, F. M., Van Looy, S., & Bruyère, S. M. (2012). Employer strategies for responding to an aging workforce. The NTAR Leadership Center. Retrieved from
Brucker, E. (2006, September). Managing transitions in an aging society: What should business students know? (Occasional Paper, No. 1). AARP Office of Academic Affairs. Retrieved from 11

12. Number of Older Americans
This chart shows the increase in the number of people living to age 65 and older from 1900 to 2006 and the even greater projected growth from 2010 to It also shows the increasing number of persons age 85 and older and their projected growth to 2050.

13. Percentage of Persons 65+ by State in 2011
This chart is self-explanatory.
The Northeast and Midwest tend to be older.

14. Life Expectancy by Gender and Race in 2010
“The gap in life expectancy at birth between white persons and black persons persists but has narrowed since 1990.
Life expectancy is a measure often used to gauge the overall health of a population.
Between 1980 and 2010, life expectancy at birth in the United States increased from 70 years to 76 years for males and from 77 years to 81 years for females.
Racial disparities in life expectancy at birth persisted for both males and females in 2010 but had narrowed since In 2010, Hispanic males and females had longer life expectancy at birth than non-Hispanic white or non-Hispanic black males and females.”
Source: CDC/NCHS, Health, United States, 2012, Table 18.
Data from the National Vital Statistics System (NVSS).

15. Life Expectancy by Gender and Race/Ethnicity
This is an alternative view of the gender and race/ethnicity data.

16. Projected Demographic Shift
Ratio of population ages 20 to 64 compared to age 65 and older. (Those working to those traditionally not working.)
Source: Congressional Budget Office Based on Social Security Administration Data
This slide illustrates the demographics discussed on the previous slides. The number of people working (vertical axis) compared with individuals age 65 and older is shrinking.
This slide can be discussed in terms of dependency ratios. (Also, see next slide)
Those years between 20 to 64 are still considered prime working years, but the proportion of those working to those not working is shrinking dramatically.
(The dependency ratio will be discussed in more detail in Module 7.)
Instructor
A number of websites show where the U.S. dependency ratio stands in relationship to other countries. You may wish to have the students report on this when discussing Module 13.
See
The World Bank,
Labor force projections to 2022: The labor force participation rate continues to fall. (2013, December). Monthly Labor Review. Retrieved form
For background, the instructor may want to read the following statement made on April 27, 2005, before the Special Committee on Aging, U.S. Senate, by Barbara Boviberg, director, Education Workforce and Income Security, GAO:
U.S. Government Accountability Office. (2005). Redefining retirement: Options for older Americans (GAO T). Washington, DC. Retrieved from

17. Old-Age Dependency Ratio: UN Projections 2013
Source: United Nations, Department of Economic and Social Affairs, Population Division. (2013). World population prospects: The 2012 revision. Retrieved from
The old-age dependency ratio is the ratio of the population age 65 years or over to the population ages All ratios are presented as number of dependents per 100 persons of working age (20-64).

18. Life Expectancy of 65-Year-Olds Over Time
This slide shows an upward trend in life expectancy resulting from improvements in health. Updated source URL:
Nationally, life expectancy increased 4.3 years for men and 2.4 years for women between 1987 and 2007, according to a recent report from Institute for Health Metrics and Evaluation.
In other words, an individual is looking at 20 to 25 years in retirement if he or she retires at age 62, which is what half of all Americans do.
From an HR perspective, current employees will consider retiring later, and this will have implications for deployment, integrating generations, meaningful retention, etc.

19. Population and Labor Force, 1950
“Population pyramids show the age and gender composition of the population and the labor force. In a country with high fertility and high mortality, the shape is like a pyramid. In this chart, the baby boom generation is in the age group 0 to 4, and the birth dearth generation is reflected in the 16-to-19 and 20-to-24 age groups.
• In 1950 as well as in later years, there were more baby boys born than baby girls. However, the higher mortality of males results in the population of men and women being the same size around age 24.
Overall, there is a larger number of older women than older men in the population.
• The pyramid also shows the labor force of men and women in 1950 [red portion]. The difference in the shape of the male labor force and female labor force is the result of the different participation rates of the genders. In 1950 the participation rate for men (86.4 percent) was more than double that for women (33.9 percent).” (Toossi, 2012)
Source: Toossi, M. (2012). Projections of the labor force to 2050: A visual essay. Monthly Labor Review. Retrieved from

20. Population and Labor Force, 2000
The population pyramid in 2000 shows the effects of 50 years of aging and change on the population and labor force. Because of both the aging of the population and the steep increase in the labor force participation rate of women, the shape of the pyramid is more rectangular than in 1950.
In 2000, the Baby Boom Generation was ages 36 to 54, placing them all into the 25-to-54 age group, which typically has the highest labor force participation rate.
Because of the large increases in labor force participation rates among women, the shape and size of the pyramid for both men and women look very much alike. In 2000, women composed 47% of the labor force, compared with 30% in 1950.
Source: Toossi, M. (2012). Projections of the labor force to 2050: A visual essay. Monthly Labor Review. Retrieved from

21. Population and Labor Force, Projected 2050
“The population portion of the pyramid in 2050 looks rectangular in shape in the higher age brackets, which is indicative of both longer life spans and the aging of the population.
The aging of the baby boom generation is projected to increase the share of the older age groups in the population. The oldest members of the baby boom generation celebrated their 65th birthday in In 2020, all members of this group will be 56 to 74 years old. In 2050, the entire baby boom generation will be more than 85 years old, and nearly all will be out of the labor force.
By 2050, the shape of the pyramid for both men and women is expected to become nearly symmetric; this is a reflection of the further narrowing of the gap between men’s and women’s labor force participation rates.
Women have lower mortality when compared with men, which is made apparent by the large numbers of women in the older age groups of the population.” (Toossi, 2012)
Source: Toossi, M. (2012). Projections of the labor force to 2050: A visual essay. Monthly Labor Review. Retrieved from

22. Labor Force by Age, 2000, 2010 and Projected 2050
“The 55-and-older group is expected to undergo the most sweeping changes in the years to come, primarily because of the aging of the baby boom cohorts. The proportion of the labor force composed of people ages 55 and older is projected to rise from 13 percent in 2000 to 24 percent by 2050.
Although the labor market share of the 45-to-54 age group increased slightly from 2000 to 2010, the share is projected to decline to 20 percent in After an initial drop from 26 percent in 2000 to 22 percent in 2010, the share of the 35-to-44 age group is projected to hold steady through The 25-to-34 age group is expected to maintain its share between 2000 and 2050 at 22 percent.
The labor market share of the 16-to-24 age group declined gradually from 16 percent in 2000 to 14 percent in It is projected that the share of this group will further decrease to 12 percent in The increase in school attendance of people in the 16-to-24 age group, especially 16-to-19-year-olds, is the main reason the youth labor force has been decreasing.” (Toossi, 2012)
Source: Toossi, M., (2012). Projections of the labor force to 2050: A visual essay. Monthly Labor Review. Retrieved from

23. Forces Extending Work Life
Economic necessity (older employees).
Psychosocial needs (older employees).
Better jobs (older knowledge workers).
HR policies (employers).
Flexibility (hours) availability (employers).
Increased work/life balance emphasis (older employees and employers).
Emerging health care plans dovetailed with Medicare.
Government policy.
No mandatory retirement age.
Social Security.
This slide and the next slide are intended to get students thinking broadly about the role of work from different viewpoints: societal (governmental), the employer and the employee.
Activity
Ask students to suggest why work is important from these different perspectives.
Government 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 prohibited from forcing an older worker to retire; there is increasing evidence that many employers are responding to labor shortages with aggressive retention policies. These organizations include IBM, CVS and the U.S. government.
Older workers are healthier and considering working longer for economic and social reasons. Employees with stocks and IRAs lost 40% or more in the recent economic downturn; it is estimated that $2.1 trillion disappeared from 401(k) and IRA assets in 2008 alone.
Source: Coombes, A. (2009, September 21). Retirement? Good luck with that; financial crisis reveals U.S. retirement-system's holes with painful clarity.  Global Action on Aging website. Retrieved from
Work itself has changed. It is not as physically demanding, and there is more opportunity for flexible work arrangements that are attractive in the context of work/life balance for all workers.

24. Forces Restraining an Extension of Work Life
High unemployment.
Slow-growth economy.
Changing skill mix in demand.
Youth culture.
Hiring and retention practices.
Increased labor costs.
Labor union policy (in some cases).
Intergenerational conflict.
Negative stereotypes about older workers.
The points on this slide are some factors that can prohibit older workers from remaining in the workplace.
Ask students to elaborate on the idea of a “youth culture.”
Intergenerational conflict goes both ways. Younger workers may believe that older workers who remain longer in the workplace will block their promotions. Intergenerational conflict can also occur due to different approaches to work. Stereotypes will be discussed in more detail later. 24

25. Motivation for Productive Activity
Habit.
Physical needs (income).
Psychosocial needs.
Other?
Habit
The phrase the “busy ethic” was coined by David Ekerdt in 1986 in a paper, “The Busy Ethic: Moral Continuity Between Work and Retirement,” that appeared in The Gerontologist, a journal published by the Gerontological Society of America.
As a society, we are used to always doing something. Is this a hard habit to break? What does it mean in the context of leisure? Is playing hard another form of being busy?
Physical needs (income)
Paying the rent , putting food on the table, being able to afford health care, etc., are key motivators for working.
Psychosocial needs
Well-being; contributing to family, community, society (feeling good about ourselves); helping others; responsibility.
Other
Are there other motivators for productive activity?

26. Productive Activity Domains
There are multiple alternatives regarding time use; it is still productive activity.
Domains:
Paid work.
Unpaid work at home.
Unpaid work outside home.
Source: Danigelis, N. L., & McIntosh, B. R. (1993). Resources and the productive activity of elders: Race and
gender as contexts. Journal of Gerontology: Social Sciences, 48, S192-S203.
From an HR perspective, it is important to recognize different patterns of behavior historically and different time demands by gender and race.
Ask the students:
What is the contribution/value of unpaid activities?
What examples can they give?
What time demands are more likely to affect aging Americans? (caregiving for a spouse or other family member)

27. Volunteering (Formal Unpaid Work Outside the Home) in the U.S. in 2013
62.6 million volunteered in 2013.
27% of Americans volunteer (24% of those 65+).
50 hours (median) per volunteer (86 hours for those 65+).
Gender? Employment status? Education level?
Types of organizations? Hours?
Source: U.S. Department of Labor, Bureau of Labor Statistics. (2014, February 25). Volunteering in the United States, Economic News Release. Retrieved from
According to the Bureau of Labor Statistics (BLS):
Over 62 million people—or 25.4% of the population—volunteered between September 2012 and September 2013.
Gender
The volunteer rate was higher among women than men (28.4% versus 22.2%). This was true across all age groups, educations levels and other demographic characteristics.
Employment status
Employed persons were more likely to volunteer than persons who were unemployed or not in the labor force (27.7% versus 24.1% for unemployed versus 21.9% for those not in the labor force).
Education level
Among those age 25 and older, the volunteer rate for college graduates was four times that of high school dropouts (39.8% versus 9%).
Types of organizations
The majority of organizations were religious or education/youth service-related organizations.
Hours
Volunteers of both sexes spent a median of 50 hours of volunteering per year.
These data have implications for organizations like IBM that incorporate employee community service as part of their corporate social responsibility efforts. The business case can also be made for transitioning workers into nonprofit and government work as a later life career move (Partnership for Public Service, 2008).

28. Volunteering in the U.S. in 2013 (continued)
Age group most likely to volunteer?
Age group least likely to volunteer?
Parental status?
Education level?
Persons age 65 and older?
Ask students the questions on the slide:
Age group most likely to volunteer? Individuals between the ages of 35 and 44 (30.6%).
Age group least likely to volunteer? Persons in their early 20s (18.5%).
The higher the education level, the more likely the individual will volunteer.
Less than a high school diploma: 9.0%
High school graduates, no college: 16.7%
Some college or associate degree: 27.7%
Bachelor’s degree and higher: 39.8%
Parental status? Parents with children under the age of 18 were more likely to volunteer (32.9%) than those without (22.7%).
Persons age 65 and older? 24.1% this age group volunteers. This group was more likely to volunteer through a religious organizations (46.7%).
Source: U.S. Department of Labor, Bureau of Labor Statistics. (2014, February 25). Volunteering in the United States, Economic News Release. Retrieved from

29. Volunteering in the U.S.: Types of Activities in 2013
Collecting, preparing, distributing food: 10.9%
Fundraising: 10%.
Tutoring or teaching: 9.8%.
These activities vary by gender, age, ethnicity and marital status.
Students interested in this information should be referred to the Bureau of Labor Statistics ( for more detail.

30. The Bottom Line Demographics demand strategic workforce planning.
Expectations about work in later life are changing.
Aging Americans are engaged in many alternative forms of productive activity.
The business environment must change in response to the aging workforce and changing needs.