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Tips to Prepare Your Organization For An Older Workforce

People are living and working longer today than in the agricultural and industrial ages. The growth in the number and percentage of individuals over 60 and 80 years of age is already having a global impact.

From 1980 to 2017, the number of individuals over the age of 60 doubled to roughly 900 million. This segment of the world’s population will double again by 2050 to nearly 2 billion, according to the 2017 World Population Prospects report by the Department of Economic and Social Affairs of the United Nations Secretariat.

Risk professionals can prepare their organizations for the coming changes and opportunities of an older workforce with the following strategies:

  1. Customize a workplace safety program. Organizations can utilize various levels and different methods of training to improve safety awareness.
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    These include new hire training, annual mandatory compliance refreshers, on-the-job training, shadowing and formal mentoring programs, educational programs, and certifications. Training can focus on areas such as safety awareness, new technology, ergonomics and workstation setup, life skills, and other soft knowledge. This will also help with safety in general among the entire staff.

  1. Update the education and onboarding process. An important consideration is how different generations of employees learn, so specific training methods tailored to each generational group can be offered. Where online training modules may work for younger employees, older employees may prefer on-the-job or in-person training. It is up to each company to best identify the methods for training its workforce so the content of the training is effectively delivered and understood by its intended audience.
  2. Review training styles. In addition to receiving ongoing training, older employees may feel more engaged if they are asked to teach newer or less experienced employees. One area often overlooked is training for managers who may have older employees under their supervision. Much has been written about training and approaching millennials, however, the reverse is an emerging risk. Companies should begin focusing efforts on how to relate to and the best way to supervise older workers. This is an area of opportunity to enhance a company’s culture and develop the employee-employer relationship.
  1. Know a role’s physical demands. Employers need to ensure they have a good understanding of the actual physical demands of each job position in addition to the physical limitations of individual employees.
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    Post-offer and pre-employment functional capacity exams are recommended for all age groups in industrial and manufacturing sectors. Job rotation is an important safety tool, and can be used for all age groups in an effort to break up the monotonous nature of the work, avoid fatigue, and ultimately develop a well-rounded staff that can cover gaps as needed.

  1. Consider the intersection of technology, comfort and well-being. There are many low- and no-cost ideas that can make the workload more manageable for older employees. For example, in its Dingolfing, Germany plant, BMW hires older workers on an auto assembly line with accommodations for their age such as larger computer screens, special shoes, and chairs for some operations. And Microsoft offers an online Guide for Individuals with Age-Related Impairments, showing older workers how to create slower-moving pointers or magnified screen displays by adjusting their computer’s settings. Standard workstations can be improved with ergonomics in mind. Features like built-in back support in office chairs, standing desks, lighting created to minimize shadows and dark zones, and desks that are easily adjustable all contribute to employees’ comfort and minimize discomfort. On-site clinics save time and are geared toward prevention as well as early disease detection. Investing in the health of all employees through wellness programs is a timeless and ageless benefit and will contribute to productivity and reduce costs.
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  1. Promote an age-diverse business culture by recognizing and appreciating the skills/values of older workers. There are common misunderstanding and stereotypes with older employees that they are less efficient than their younger co-workers. However, from the Organisation for Economic Co-operation (OECD) in 2016 that the working proficiency (in both literacy and numeracy) of older employees is actually not significantly lower than their younger peers. In countries like the U.S., the proficiency of older workers is even at the same level as younger employees (see below charts). A follow-up study in 2018 by OECD indicated that older employees are more likely to involve in more complex tasks, such as supervise colleagues, have higher task discretion, use planning skills and influence others, which makes them as valuable assets as their younger co-workers. So it is important to promote an age-diverse business culture to appreciate the skills and value of older workers.
  1. Improve training against discrimination and negative attitudes to older workers on hiring, termination, compensation, and promotion. As risk management professionals, it is important to remind your organizations to review and improve the policy against discrimination and negative attitudes to older employees, in order to mitigate the potential legal risk. A 2013 AARP study indicated that “64% of U.S. workers have either experienced or observed age discrimination.” Given this background, in 2016, EEOC received 20,857 charges of age discrimination, which counted for more than 20% of all discrimination charges received by EEOC.

As the global working population continue to grow older, corporations around the world could expect to see more age discrimination litigations to come. Risk managers can play an important role by taking initiatives to help their organizations against discrimination and negative attitudes to older employees.

Several members of the RIMS International Council contributed to this article.

The Riskiest States for Employee Lawsuits

In 2014, U.S. companies had at least an 11.7% chance of having an employment charge filed against them, according to the new 2015 Hiscox Guide to Employee Lawsuits. The firm’s review of data from the Equal Employment Opportunity Commission and its state counterparts found that the risk also varied notably by state, as local laws creating additional obligations—and risks—for employers led to charge rates up to 66% above average.

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STATES WITH THE HIGHEST EMPLOYEE LAWSUIT RISK

State laws that are driving some of this increased employee charge activity include heightened anti-discrimination/fair employment practices, the use of E-Verify in the private sector, pregnancy accommodation, prohibitions on credit checks, and restrictions on inquiring about or requiring background checks.

Key state laws driving increased employee charge activity

These cases can be especially damaging for small- and mid-sized enterprises, with 19% of employment charges among SMEs resulting and defense and settlement costs averaging $125,000 and taking about 275 days to resolve. The average self-insured retention for these charges was $35,000, Hiscox found, and without employment practices liability insurance, these companies would have been out of pocket an extra $90,000. What’s more, 81% resulted in no insurance payout, giving even nuisance charges the potential to be a serious financial hit. While the majority do not end up in court, when they do, the median judgment is about $200,000, not including defense costs, and 25% of cases result in a judgment of $500,000 or more.

During the hiring process, written procedures that outline and comply with federal and state laws can help minimize risk, as can maintaining a customized employee handbook that all staff acknowledge in writing they have reviewed. In addition to risk transfer, such as an employment liability insurance policy, Hiscox offered several tips to best mitigate the risk of employment charges, including:

Independent contractors

Be careful when designating independent contractors. There are variations among states and areas of law as to the test for an independent contractor. It is possible for a worker to be considered an independent contractor for some purposes and an employee for others.

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Leaves of absence and accommodation for disabilities

A medical condition can trigger federal and state leave and disability laws, which vary, as well as workers compensation laws. Make it a policy to recognize events or discussions that create an obligation to discuss accommodations or a possible leave of absence.

Employee performance

Ensure that all supervisors and managers are aware of the procedure for addressing unacceptable employee performance. Communicate to the employee about what they are doing (or not doing) that is unacceptable, and make sure they understand what constitutes acceptable performance. Document all communications. Conduct factual, honest performance evaluations. Develop and maintain a procedure for corrective action plans.

Termination

To minimize litigation around termination, avoid surprises. Make sure that all guidelines have been followed for addressing unsatisfactory performance, particularly the corrective action plan. Prior to termination, assess the risk for litigation: is the employee a member of a protected class, involved in protected labor activities, or a potential whistleblower? Is the employee under an express or implied-in-face employment contract?

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Gather and review the documentation that supports the termination and interview relevant players.

Why Employees Quit—And How to Keep Them

Why Employees Quit

Employee turnover creates tremendous risk—resources are lost in recruitment and training, productivity lags with insufficient staffing, intellectual property can be exposed, and no company wants to get a reputation as a place where no one can stay very long. Further, the implications for workers comp, lawsuits and insurance extended to employees can cause headaches long after a desk has been cleared out.

A few recent studies highlight some of the biggest factors contributing to employee turnover resultant human resources risk, and what managers can do to keep staff and avoid risk.

Why Employees Leave

A new “exit survey” conducted by LinkedIn among members from five countries found that top reason workers left their jobs was because they wanted greater opportunities for advancement. In a related study from the social network, the number one reason employees who were not actively seeking a new job would be willing to leave was for better compensation or benefits. Regular performance reviews and assessments that open up opportunity for advancement in both responsibilities and salary can help keep employees engaged—and prevent feeling they have to stray to stay on top.

Room to Improve

Another recent study from LinkedIn found that 69% of human resources managers thought that employees were well aware of internal advancement programs. Yet only 25% of departing employees said they knew about these opportunities. In fact, of those who stayed within the company and found a new position internally, two thirds found out about the opportunity through informal interaction with coworkers. Strengthening formal retention and advancement programs and improving awareness of these initiatives may go a long way toward getting employees to use them.

Why New Hires Quit

One in six employees quits a new job within six months — and 15% either make plans to do so or quit outright within that time frame, according to Time. HR software company BambooHR found that the primary factor was “onboarding problems”—in other words, HR or managers are failing to properly orient new hires and integrate them into the workplace. This may seem silly, but they could have reason to feel this is a fatal flaw: research from John Kammeyer-Mueller, associate professor at the University of Minnesota’s Carlson School of Management, found that there is only a 90-day window for settling in. If your new employee is not caught up to speed by then, you may see them walk out the door.

Getting Employees to Stay

CareerBuilder surveyed thousands of workers recently to gain insight into why they decide to stay or go. Of those who plan to stay at their jobs, the top reasons they did not want to leave included: liking the people they work with (54%), having a good work/life balance (50%), being satisfied with the benefits package (49%), and feeling happy with their salary (43%). Of those who are unhappy, however, 58% said they plan to leave in the next year. Making sure these bases are covered is a strong step to keeping your top talent at their desks.

Check out the infographic below for more of LinkedIn’s insights into why employees leave, and what you lose when they go:

New Study Shows Scope of Workplace Bullying

In a new study, the Workplace Bullying Institute found that 27% of Americans have suffered abusive conduct at work and another 21% have witnessed it. Overall, 72% are aware that workplace bullying happens.

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Bullying was defined as either repeated mistreatment or “abusive conduct.” Only 4% of workers responded that they did not believe workplace bullying occurred.

The study found that 69% of the bullies were men and they targeted women 57% of the time. The 31% of bullies who are female, however, overwhelmingly bullied other women—68% compared to 32% who mistreated men in the workplace. Identifying the perpetrators also shed light on how corporate power dynamics play a role in abusive workplace behavior. The majority of bullying came from the top (56%), while only a third came from other coworkers.

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“Sadly, what stops bullying the most is requiring the target to lose her or his job,” said Gary Namie, director of the Workplace Bullying Institute. According to the survey, in 61% of cases, the bullying only stops when the target quits, is fired or forced out.

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Employer reactions are failing employees—and may open many companies to costs from turnover or even legal liability:

Workplace bullying employer responses

Check out the infographic below for more insight into workplace bullying:

Workplace Bullying Survey