Employer Best Practices

As America ages, every organization will need to recruit and employ older workers. By and large, older workers are no different from any other group. They should be held to the same expectations and policies that apply to everyone. And, like all employees, older workers should be treated with respect - after all, they have proven their expertise, contacts, and diligence over the years.

Unfortunately, many employers follow outdated HR policies developed over the last half century. These policies - crafted at a time when there was a huge cohort of younger workers and few older workers - were designed to push older workers into retirement. In today's labor market, such practices no longer make sense.

On this page, NOWCC provides an overview of the best practices for recruiting, retaining, and employing older workers. Please feel free to print out copies of these materials to distribute to coworkers.

Challenge Stereotypes

Comply with the Law

Over 61% of hiring managers say that they are hesitant to hire older workers. Their stereotypes about older workers keep them from recruiting people whose experience and skills would be a perfect match for their needs.

These stereotypes are based on false generalizations. In a recent survey, 53% of respondents believed that "older workers can't keep up with technology" and 36% said that "older workers cause expenses to rise." Do the facts back up these stereotypes?


Older workers certainly seem to be keeping up with technology:
  • 57% of Americans age 65-69 are online
  • 51% of workers age 50-59 use a computer at work
  • The percent of seniors who go online increased by 47% between 2000 and 2004


And there isn't much evidence that older workers cost more:
  • The turnover rate for workers over the age of 60 is less than one-sixth that of workers aged 35 and under
  • A SHRM study estimated turnover costs to be 30-32% of an employee's annual salary
  • Studies show that the absenteeism rate of older workers is actually lower than that of younger workers
  • A study by Towers Perrin found that the cost of hiring an older worker was, at most, 1% higher per year than hiring a younger worker


Stereotypes about older workers are not supported by the evidence. Therefore, to find the best applicants, it is critical that your HR staff treat all applicants as individuals, and retain an open-mind to employing qualified, experienced older workers.

Discrimination is not only a bad practice - keeping your organization from employing and retaining qualified workers - it's also against the law. Treating applicants and employees differently because of their age can expose your organization to a lawsuit.

To comply with the Age Discrimination in Employment Act (ADEA) of 1967, follow these guidelines when overseeing existing employees:
  • Provide training to all employees, regardless of age
  • Promote employees on the basis of performance and contribution potential, not age
  • Do not set mandatory retirement ages for employees (there are limited exceptions in which mandatory retirement ages are legal)
  • Do not terminate older workers solely to make room for younger workers
  • Do not deny or provide lesser benefits to an employee on the basis of age


Employers are also prohibited from discriminating on the basis of age during the recruitment process. Follow these guidelines when recruiting:
  • Do not specify an age range in advertising. Screening must be based on the legitimate qualifications of the position.
  • Do not ask for information on the application form that would indirectly reveal the applicant's age. For example, asking an applicant whether he/she graduated college is appropriate, but asking for the year of graduation may be considered asking an applicant's age by other means.


Finally, always review new policies to ensure that they do not unintentionally discriminate. A 2005 Supreme Court ruling permitted ADEA lawsuits under "disparate impact theory" - meaning that firms can be held liable for discriminatory policies even if the policies appear neutral and the resulting discrimination is unintentional.


Recruit Experience

Interview for Experience, Not Age

Older workers who encounter age discrimination in the workforce often become discouraged from seeking employment. They fear that they will be judged on their age, rather than their qualifications.

Employers benefit by receiving more applications from better qualified applicants when they assure older workers that their experience is valued.

To attract older workers, NOWCC recommends the following:
  • Outline your organization's commitment to valuing all people, regardless of age, in your recruitment literature
  • Use photos in your recruitment literature showing employees of all ages, including older workers
  • Avoid language that implies that you are only seeking younger workers. For example, rather than saying, "A great place to launch your career," say "A great place to showcase your talents."
  • Expand your search beyond the usual classified ads and job listings. Place ads in sections of the newspapers frequently read by older readers. Also, partner with organizations and businesses that deal with the older population, such as community groups and alumni associations.

Although all applicants must be judged by the same criteria, be aware that older workers often have different employment goals and demonstrate their prior experience differently than do younger workers.

The following tips will help you interview older workers:
  • Emphasize the interview over the resume. Older workers' extensive experience can't be captured in a short resume
  • Don't bring up the issue of age
  • Consider including at least one older worker on the interview panel
  • Explore how the applicant's experience can be applied to the role and responsibilities of the position, instead of fixating on formal qualifications

Most importantly, do not dismiss older workers as "overqualified." Because of their experience, and because they are less career driven than younger workers, older workers are better at identifying positions where they can both make a significant contribution and enjoy their work.

In fact, surveys have shown that many older Americans work not for money, but to stay active and continue doing what they love. Often, this makes older workers the most loyal and diligent employees on staff.


Be Flexible

Prepare for the Brain Drain
Striking a healthy work-life balance is extremely important to older workers. Studies have shown that companies that respond to this need by offering flexible work arrangements are better positioned to retain and recruit older workers:
  • In a Conference Board survey, nearly half of older workers said that more flexibility would prevent them from retiring
  • A Cornell study of "working retirees" found that the "most common reason for retiring but continuing to work after retirement is that respondents want a work schedule that allows them the flexibility to do other things"


Crafting flexible work arrangements should not be an obstacle to employing qualified, experienced workers. In fact, flexible work arrangements are increasingly common in all segments of the workforce. According to the Bureau of Labor Statistics, the percentage of full-time workers who had flexible schedules increased from 12.4% to 28.5% between 1984 and 2001.

Although recruiting and retainining older workers can help your organization address the coming retirement wave, every organization will ultimately lose many of its most experienced and knowledgeable workers to retirement.

David DeLong, a research fellow at the MIT AgeLab, observes that the retirement wave is "creating unprecedented knowledge retention problems in many industries, threatening to reduce the capacity for innovation, growth and operational efficiency."

However, organizations can reduce "brain drain" by taking the following steps:
  • Identify which areas will experience the greatest number of retirements
  • Identify which areas of your business are most dependent on essential or unique operational knowledge
  • Use Information Technology to capture critical knowledge and processes before employees retire
  • Implement mentoring programs so that employees nearing retirement can pass their knowledge onto younger workers


Take Action

Seek Expert Advice

In addition to following the best practices that we have reviewed, organizations should develop an action plan tailored to its business context.

Although every action plan is unique, NOWCC advises firms to consider these building blocks:
  • Create an advisory group of older employees
  • Review company recruiting and promotional materials for age bias
  • Consider incentives for attracting and retaining older workers, such as 401(k) catch-up contributions
  • Provide for caregiving through flexible spending accounts
  • Develop networks of active and retired employees through civic engagement activities

Do your HR policies need updating to ensure you have the workforce you need to stay competitive?Outdated policies could prevent you from recruiting and retainining the experienced workers you need to thrive.

NOWCC can help you identify areas of improvement, develop new policies and procedures, and create an action plan tailored to your business environment.

Our staff has been recruiting, training, and placing older workers for over 20 years. Let us know how we can help you!

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