Older workers are typically more productive – and costly
America’ s aging population is a double-edged sword for businesses
Although older workers often have institutional knowledge and skills that are invaluable to companies – and sometimes are better than younger, less experienced workers – they have higher health care costs. That can eat into companies’ bottom lines or force businesses to cut benefits.
As the baby boomers age toward retirement, there simply are not enough workers to replace them.
American companies either must find workers from other nations or must keep those retirement-age workers. The latter option is sure to drive up escalating health care costs even more.
Retirement? What retirement?
The oldest baby boomers are nearing retirement age. But that doesn’t mean they’re about to leave the workforce right away.
Many employers are hoping to hold onto their older workers for a few more years.
In some sectors, there aren’t enough replacements coming up the ranks behind aging boomers. And holding onto older workers, though it’s expensive, also means keeping the productivity that long knowledge can give.
But replacing those older workers as they retire can be even more costly, especially in some skilled areas where there aren’t enough younger replacements standing by.