Deborah Russell, the Director of Workforce Issues at AARP, gave a dynamic presentation at the Ageing [AT] Work conference hosted by the Bermuda Council on Ageing in December.

Based on respected research by both AARP and Towers Perrin — a global professional services firm that includes human resource consulting and related services — Ms Russell made a compelling case for the 50+ Worker from both the employees' and employers' perspectives, with the following key points:

* As the next batch of potential retirees, Baby Boomers (those born 1946-1964) are much less likely to associate retirement with the traditional retirement age of 65;

* nearly 70 percent of workers who have not retired report that they plan to work into their retirement years or never retire;

* and, almost half of workers aged 45 to 70 expect to work well into their 70s and beyond.

Among the reasons Baby Boomers have for working beyond the traditional retirement age are money, health insurance, retirement benefits, and flexible work arrangements. Some older employees want to work as long as possible to continue to make a contribution in the workplace and get personal satisfaction in return.

For others, financial need is often compounded by extenuating circumstances, such as the onset of responsibility for a dependent parent.

Another hidden driver is the phenomenon of adult children moving back home, sometimes with children of their own. Employers, too, are anxious about the ageing of their workforces.

Among the concerns highlighted by Ms Russell are the financial impact of lost corporate knowledge, the difficulty of finding qualified employees in a shrinking talent market, and the need to establish formal programmes to address retention and recruitment of the older worker.

At the same time, one reservation that employers have about older workers is the impact on health insurance, as health claims for persons aged 50 and above are significantly higher than those for younger employees.

However, human resource managers now realise that behavioural risk assessments (that reveal major insurance risks such as obesity or smoking, for example) are useful tools in predicting healthcare costs regardless of age.

On the positive side, employers find added benefit in retaining and recruiting the older worker, particularly as it relates to the costs of engagement and recruitment.

Towers Perrin report that workers aged fifty and older are more engaged, and this correlates with overall higher performance of the company.

At the same time, the turnover of the older workers is significantly less.

Human resource professionals know that recruitment costs include the six to 24 months that it takes to bring a new employee up to full productivity.

If, as research shows, the younger worker's average tenure is only three and a half years, then any training expenses incurred are primarily for the benefit of the competition.

For older workers, who stay with a company for approximately thirteen years, the recruitment and training costs are spread over a longer period, bringing added value to the older worker and the employer.

The Towers Perrin report, "AARP Profit from Experience" based on research conducted in the G7 countries (Canada, France, Germany, Italy, Japan, United Kingdom and U.S.A.), shows significant demographic changes.

Thirty per cent of the G7's population was aged 50 or more ten years ago. Ten years from now, that number will grow to 40 per cent.

Towers Perrin also states quite clearly that surges in immigration and productivity are unlikely to offset this demographic shift.

And we know that in Bermuda immigration is constrained by our landmass, infrastructure, and legislated policies.

This leaves us with an ageing workforce, shrinking birth rate, and a looming gap in our workforce that will have to be filled one way or another.

There are costs and benefits to the retention and recruitment of the older worker, but the results of research by AARP and Towers Perrin are clear-an ageing population means that business as usual is not an option, and the benefits of the older worker outweigh the costs.

The end result is added value to the company, with increased dedication and loyalty to employers who recognise and reward employees accordingly. One thing for sure, we need to use our human resources wisely as our population ages and Bermuda competes in an increasingly limited talent market.

Marian Sherratt is Executive Director, Bermuda Council on Ageing. She writes monthly on issues concerning ageing in The Royal Gazette. Send email responses to info@bdaca.org.