Workshop 29
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This document discusses strategies for convincing employers to recruit older workers. It outlines common prejudices employers have against older jobseekers, such as being too expensive or having outdated skills. It also describes obstacles older jobseekers face, such as unrealistic expectations or lack of skills. Two positive strategies are highlighted: focusing on older workers' competences rather than age, using tools like a diversity guide and self-evaluation of generic skills; and financial incentives for both employers and employees to reduce the cost of hiring older workers. Overall, the document argues that focusing on competences and experience can persuade employers of the value older workers provide.
Workshop 29
- 1. Convincing employers to recruit older people Dr. Anneleen Peeters IDEA Consult (Belgium)
- 2. Contents Introduction Main obstacles for employment of older people Prejudices of employers Expectations/motivations older jobseekers Obstacles/barriers for older jobseekers Strategies to persuade firms to hire and retain older people Positive arguments in favour of hiring older persons Focusing on competences Role of financial incentives
- 3. Introduction Context in Belgium: Low employment rate of older persons before retirement age 45,8% in age group 50-64 yr 31,9% in age group 55-64 yr in sharp contrast with high empl. rate of age group 25-49 yr (80,1%) (figures 2005) Unemployment rates highest among older persons Labour shortage : many companies face unfilled vacancies
- 4. Introduction Presentation based on own research and project experience: Equal-project PARADOX + transnational cooperation in Over45 + active participation in Equal Age Management Group ESF-project ACTIVE 50+ (integration of 50+ unempl.) ESF-project SLAGEN (development of a self-evaluation tool for generic competences) Research on labour market integration of older persons through temporary work agencies Research on fiscal incentives to motivate older persons to stay on the labour market
- 5. Main obstacles for employment of older people Prejudices of employers: Too expensive (high salary expectations, future costs for (pre-)retirement, outplacement, etc.) Retirement in near future (why investing in them?) Outdated skills/knowledge (eg ICT) Lower productivity (physical incapability, often ill, etc.) Problems with attitude/motivation (e.g. are looking for a way to slow down) Stick to their ‘own way’ of working Don’t fit in a young team
- 6. Main obstacles for employment of older people Expectations/motivations older jobseekers: Satisfaction from working (achievement, being useful) Financial needs Social contacts Increasing employability (learning) Partner or friends are still working Looking for a temporary versus permanent employment contract
- 7. Main obstacles for employment of older people Obstacles/barriers for older jobseekers: Unrealistic job expectations (type of job, salary, etc) Physical or psychological problems Sometimes low motivation to find new job (especially after dismissal or forced pre-retirement) Unsufficient or outdated skills to apply for a job (eg. making up a CV, job interview) Low initial education attainment (often compensated by job experience and generic competences) problematic in diploma oriented society Negative experience with labour market mediators
- 8. Strategies to persuade firms to hire older people Positive arguments in favour of hiring older persons Human capital – knowledge (also tacit knowledge) More experienced (less time needed for coaching) Other positive characteristics: Good working attitude Willing to work flexible working hours (eg no small children) Less jobhopping More immune to stress (due to life experience) Financial benefits/government measures
- 9. Strategies to persuade firms to hire older people Focusing on competences: 2 tools Diversity guide for SME’s (Equalproject Paradox) Focusing on competences and not on age (age management is part of management of diversity) Concrete and practical guide, based on project experience Model with 5 diversity profiles (typology according to knowledge and experience with diversity) Shows added value of diversity – no judgement Translations in clear-cut suggestions and tricks for implementation (action plans) Counselling in order to progress in the diversity process
- 10. Strategies to persuade firms to hire older people Profile 1: Unknown, unloved staff is a uniform group of employees all employees approach the ideal employee profile equality is the corner stone of HRM Profile 2: Every start is difficult one or more ‘diverse’ persons have entered the company employees approach as closely as possible the ideal employee profile equality is the corner stone of HRM Profile 3: Learning by doing several ‘diverse’ persons have been hired on purpose equal participation policy should enable catch up movement for diversity mix advantages from diversity are mainly considered to be external
- 11. Strategies to persuade firms to hire older people Profile 4: Towards full implementation staff is gradually becoming a reflection of the diversity in society the corner stone of HR management develops from equality to equivalence diversity and competence management are introduced as tools advantages of diversity both internal and external Profile 5: Diversity pays staff is a perfect reflection of the diversity in society diversity and competence management are integrated in HR management advantages of diversity are fully exploited diversity is integrated in the company culture
- 12. Strategies to persuade firms to hire older people Focusing on competences: 2 tools Self-evaluation tool for generic competences (ESF-project “Slagen”) Generic competences versus occupational specific competences Purpose: increase awareness about generic competences (especially for older persons)– possible validation by previous employer (eg in case of dismissal due to a restructuring) Selection criteria: positive element in retention policy of older persons, observable, useful in an instrument, relevant for the labour market
- 13. Strategies to persuade firms to hire older people Focusing on competences: 2 tools Self-evaluation tool for generic competences (ESF-project “Slagen”) Distinction managerial versus executive functions Selection of competences based on survey among employers + specialists Users of the instrument have to give a judgement about 10 statements for each generic competence Self-evaluation instrument gives own score (+ interpretation), plus comparison with benchmark
- 14. Strategies to persuade firms to hire older people Older persons have on average better performance on the following generic competences: drive – loyalty – discipline – reliable - self-control – independent - conflict handling – ability to recognise problems – decisive – working efficiently – conscious of quality – working precisely Older persons have on average lower performance on the following generic competences: didactical skills competence to learn ICT
- 15. Strategies to persuade firms to hire older people Role of financial incentives DEMAND SIDE: measures to reduce the wage cost for employers (eg. reduction in social security contributions) Effect depends on the size of the subsidy, complexity to apply for the measure, etc. Subsidy often limited in time !! Financial incentives help, but only durable effect if employer is convinced of competences older worker
- 16. Strategies to persuade firms to hire older people Role of financial incentives SUPPLY SIDE: measures to increase the net-wage for employees (eg. reduction in personal income tax or social security contribution employee) Can also help to reduce total wage cost for employers (lower gross wage expectations) Effectiveness depends on alternative income situations: in Belgium pre-retirement system is large obstacle towards activation (replacement rates are extremely high in certain professions/sectors -> older persons in pre-retirement cannot be motivated to work again Replacement rates of older persons in unemployment are much lower -> more financial incentives to find new work
- 17. Strategies to persuade firms to hire older people Fig 1: Comparison net-income when working-preretirement-unemployed for 3 fiscal types (single person; partner without labour income; partner with labour income
- 18. Strategies to persuade firms to hire older people Fig 2: Comparison net-income when working-preretirement-unemployed for a single person