Benefits strategies for aging workers: older workers will become more valuable to employers in coming years, and EAPs that offer services to meet aging employees' special needs will be better positioned to help firms attract and retain these workers.

"Will you still need me, will you still feed me, when I'm 64?" These lyrics from Paul McCartney and John Lennon were very meaningful when they were written back in 1967. Today, we would need to change the age from 64 to 94 for the question to be relevant. Americans today are living longer than ever and staying in the workforce longer as well. What does that mean for our society and the workplace?

Currently, 14 percent of the workforce is 55 and older; by 2012, that share will rise to 19 percent. Because there are not enough younger workers to replace these "mature" employees as they begin to retire, a labor shortage is sure to occur. For the first time in U.S. history, the number of younger workers entering the labor market will not replace those leaving. It is predicted that within the next five years, employers will have difficulty finding qualified workers as the first of the baby boomers start to retire.

Where will employers find replacement workers? Many firms may well seek to recruit aging workers and try to retain those they already have; older women will be a particularly attractive labor pool. To be successful in this effort, however, U.S. employers will need to adjust their hiring, training, and benefits programs to appeal to older employees.

What re-training will older workers need to perform their jobs effectively? How will older workers fit into new workplace cultures? Will their managers know how to effectively motivate and supervise them? Will employers' benefits programs meet their needs?

Following are a few examples of benefits programs that are especially appealing to older workers:

Flexible work arrangements. Flextime, part-time work, and job sharing are desirable benefits for an aging workforce. These arrangements allow mature workers to choose flexible hours and delay their retirement. Employers need to look at their current work arrangement policies and see if they can make adjustments to suit older workers. Obviously, not all jobs can be made "flexible," but it's surprisingly easy to accommodate flextime requests. Employers also need to train their managers to be proactive in dealing with individual needs.

Employee assistance and worklife programs. To be fully productive, older workers need access to services that can assist them with personal and work-related issues. EAP and work-life services, especially eldercare resource and referral, are critical to this segment of the workforce. Employees can use these services for themselves or any family member, saving them considerable time and greatly reducing their stress levels.

Geriatric care management. This service is a relatively new program and can be offered to employees as a voluntary paid benefit. It provides access to a network of geriatric care managers who visit an elderly person's home and conduct in-depth assessments of the individual's activities of daily living (ADLs) and related social, safety, health, and financial issues. The manager develops a care plan that outlines all the issues facing the individual and proposes possible solutions, including a list of local resources. The care manager can coordinate services and conduct ongoing monitoring, if desired.

Providing eldercare assessment services enables older workers to better focus on their jobs. As workers age, their loved ones do so as well. Eldercare services provide peace of mind and reduce employee stress levels, especially in long-distance caregiving situations.

Long-term care insurance. Many employers offer group long-term care insurance (LTC) to their employees. These programs provide coverage for elderly people who need to be admitted to a nursing home or assisted living facility Buying into these plans earlier in life is more cost-effective than buying into them later, so many employees are considering them for both themselves and their parents. The employee pays the cost of the insurance, but access to a group plan can save both time and money. The Families and Work Institute reported in 2001 that 9 percent of U.S. employers with more than 100 employees offered LTC insurance, and this percentage will certainly increase as the population ages.

Retirement and financial planning. With an older workforce, financial and retirement issues are critical. Benefits could include phased retirement policies, access to financial planners, onsite workshops, and career counseling/development opportunities.

Training and Internet resources. Providing continuous training targeted toward older workers will keep them motivated and make them more valuable to the company Employees can access these programs by attending onsite training programs or enrolling in workshops offered by outside vendors. Employers can also expand their intranets with information specifically geared to older workers.

Extended leaves of absence. Older workers are more likely to need to take a leave of absence than their younger colleagues due to caregiving responsibilities or a death in the family Accommodating these requests will help solidify the relationship between employer and employee and makes good business sense--the cost of keeping a current employee far outweighs the cost of hiring and training a new one (it is estimated to cost 1.5 times an individual's salary to replace him/her). The use of Family and Maternity Leave Act (FMLA) provisions would need to be considered as well, based on the circumstances.

Onsite services. Seminars on eldercare topics or retirement planning, eldercare fairs, and support groups are all low-cost alternatives that can help support older employees. Providing video-tapes, audiotapes, books, and other materials on aging workforce issues also educates employees and helps them become better able to make effective decisions. Another option is to provide onsite eldercare consultants and coaches who can assist employees with their personal and professional issues.

HOW CAN EAPS HELP?

Employee assistance professionals can help their employer clients better understand and respond to the concerns of aging workers by raising awareness of their special needs. Some industries, such as health care, are already being affected by a shortage of qualified workers--in this case, nurses--and are responding accordingly. Other employers have a general awareness of the topic but may not know how to effectively address the issues.

EAPs can provide employers with plenty of information to support initiatives for aging workers. EA professionals should engage employers in conversations about which initiatives would best serve their needs and help them identify appropriate resources.

If your EAP currently offers programs that address older workers' needs, be sure to promote them to your employer clients. You can also repackage them to further emphasize this segment of the workforce. If your EAP does not offer such programs, identify which services you will need to add to appeal to employers, then determine whether you can provide these new programs internally or whether you'll need to find a vendor with which to partner. Specific areas you'll want to address include the following:

* Do you currently offer eldercare resource and referral and/or geriatric care management? If so, are the programs adequate to meet your clients' needs (i.e., national in scope)? The need for these services will continue to grow, so it's in your best interest to offer a comprehensive program.

* Enhance your management training programs to focus on helping supervisors effectively lead older workers.

In addition, provide seminars and workshops geared to the unique needs of this population (for example, a series on retirement and financial planning).

* Provide information and resources that your employer clients can disseminate or post on their intranets. These could include timely articles, helpful tips, and links to useful Web sites. Keep in mind that May is Older Americans Month and October is National Caregivers' Month. Consider tying information to these and other local events (for instance, the city of Phoenix, Arizona, sponsored an "Older Worker Awareness Day" in May 2004).

Make eldercare consultants available onsite and host elder support groups and elder resource fairs.

Eldercare will be one of the most critical workplace issues in the 21st century. EAPs that are responsive to these and other needs of aging workers will remain competitive and be well positioned to provide a full suite of services to their employer clients. Showing that you are knowledgeable about these issues will help solidify your relationship with employers and give you a competitive edge.