Shades of gray | An aging work force presents special challenges and opportunities for Maine employers
Photo/Brandon McKenney
Dave Tomm of Seasoned Workforce says many companies could benefit from capable retirees living in Maine
It should come as no surprise to anyone that the current economic climate has created a number of unexpected challenges for employers, employees and job seekers.
Aside from companies’ hesitation to add employees in an economic downturn, perhaps the most visible challenges revolve around Maine’s 55-plus population. According to the Maine Department of Labor’s Local Employment Dynamics Program, the number of workers aged 55 and over has increased in every sector from 2001 to 2009. On the low end of the spectrum is the accommodation and food services sector, which saw an increase of just 1.8% in that time. Leading the way is utilities, with a 12.2% jump.
An unfortunate case of bad timing for Maine’s baby boomer population is the most likely reason behind these increases, says Rick Dacri of human resources consulting firm Dacri & Associates in Kennebunkport. In the last few years, they’ve seen declines — some significant — in both their retirement accounts and home values. Factor in the increased health care older people require, and many are forced to make last-minute changes and re-evaluate their retirement plans.
For those who are approaching retirement age, that may mean staying in a job longer than they intended or returning to the work force to make ends meet. Either scenario, while unavoidable in a downturn, presents Mainers with a unique set of challenges.
When employees stay on longer, that can potentially create problems with advancement, Dacri says.
“Delayed retirement creates significant problems in the workplace,” he says. “It really impacts younger workers, who can’t move upward. Those employees are going to look for another organization where there are more opportunities for advancement.”
However, having older workers stay on longer can also benefit companies. According to the Department of Labor, of the annual average of 704,000 Mainers who participated in the work force in 2009, 159,000 (about 23%) were 55 or older. That means nearly a quarter of the work force is either eligible for retirement today or will be within the next 10 years. With this in mind, employers are aware that they’ll be facing a labor supply issue in the very near future. The longer a retirement-age employee stays on the job, the more time the company has to recruit and train a suitable successor.
Training opportunities
A number of programs run by both the state and private organizations have emerged to help older workers acclimate to today’s work force, as well as help them find a good fit when seeking employment.
On the state level, the Maine Office of Elder Services offers the Senior Community Service Employment Program to help match low-income Mainers aged 55 and over with part-time community service training assignments. The goal is to assist these individuals in transitioning to unsubsidized employment.
On the private side, last July, Coastal Counties Workforce, Inc. of Brunswick, along with several partners, received an approximately $1 million grant from the U.S. Department of Labor as part of the Aging Worker Initiative. The goal of the AWI program is to train workers aged 55 and older for jobs in high-growth, high-demand industries. CCWI is using the funding to prepare these workers for careers in the growing health care and green energy and construction fields. Through the National Able Network’s Job Readiness Training modules, the organization also provides work readiness training to teach older workers basic computer skills, in addition to providing guidance for returning to the workplace.
Seasoned Workforce LLC works with CCWI to implement the initiative’s programs. Dave Tomm, who operates Seasoned Workforce, has become a champion of Maine’s aging population and work force. An older worker himself, Tomm started his Rockland company in 2006, transforming what had been a program of the Penobscot Bay Regional Chamber of Commerce into a for-profit business. From the start, his company’s mission has been “To encourage the use of the experience, motivation and reliability of seasoned workers for the benefit of business, the economy and our society.”
Through online resources and in-person forums, Tomm works to connect older job seekers — whether laid off, retired or otherwise — with businesses and staffing agencies who, he says, should definitely be interested in hiring them.
As Tomm puts it, there are many smart, business-savvy retirees living in the state who possess a lot of wisdom and business experience that could benefit companies. In some cases, he says, they are “bored out of their minds.”
Tomm knows a little something about re-entering the workforce after retirement. After 30-plus years of self-employment, he retired to Maine in 2000. He soon found the inactivity made him stir crazy and was itching to get back to work. That’s when he began volunteering with the chamber program, which eventually became Seasoned Workforce. (Tomm was included in the 2008 Mainebiz Next list for his work shaping Maine’s future economy. To read more about Seasoned Workforce, see “Wisdom at Work,” in the Oct. 20, 2008 issue of Mainebiz.)
The changing work force
In a state that has for so long relied on its manufacturing industry, layoffs have unfortunately become common. Many workers who thought they would have secure employment for as long as they wanted it are finding themselves in the job-seeking world — expanding the ranks of the older job-seeker. An added challenge is that their skill sets may not mesh with the types of jobs employers are looking to fill.
Tomm says many of these laid-off workers not only have to be trained in new technologies, but in the basics of a job search. Because many don’t even know where to start, learning those basics often has to come first.
That’s why Tomm focuses a lot of his energies on what he calls Seasoned Worker Forums. These events, normally held in partnership with companies, Maine CareerCenters and other organizations, feature discussions about issues that are relevant to older workers: finding jobs, ageism, technology and others.
Each event also serves as a training program, as attendees learn about networking, recognizing and capitalizing on their talents, using the services available to them and perhaps the most important aspect of a job search: how and where to look.
While Tomm says his forums have been successful in matching companies with potential employees, that isn’t always the case for training programs. Unfortunately, Dacri says, training is usually among the first areas to be cut in an economic downturn. Based on what he’s hearing, that’s also the case for some of the programs aimed at older workers.
“The economy has really thwarted a lot of those kinds of initiatives,” he says.
Depending on how the situation shakes out in the next month or so, the Maine Employers’ Initiative could become a sign of the times. Founded in 2008 by the Maine Development Foundation, the MEI, among other things, works with companies to help provide training and education to older workers within their organization. To date, 270 people are enrolled in the program, which helps pay for the cost of educating them. Participating companies encompass all sizes and industries, which can be seen as a testament to greater recognition of the importance of older workers.
However, the future of the program, which is headed by Patricia Hart, is unclear. MEI’s current funding runs out on Aug. 31. Hart says she is awaiting a response to a grant she has submitted to provide extended funding for the program.
While cutting training programs may seem like a good way to save money, Dacri warns against doing so without thoroughly considering the consequences.
“A recession creates opportunities to create competitive advantages through training,” he says. “As the economy improves, those who have invested in training will leap ahead of those who hunkered down and just tried to survive.”
So at least for the moment, Dacri says, companies aren’t necessarily focusing on older or younger workers in their recruitment and training efforts.
“Organizations are offering training for everyone, and in recruiting, there’s not a focus on any particular group; they’re looking for people who have the right skills and experience,” he says.
‘The gig economy’
Despite, or perhaps because of, these types of challenges employers are facing, the work force seems to be evolving in a way that could benefit older workers.
Dacri says many organizations are looking more at a freelance-style work force. Rather than hire employees full time and incur the cost of benefits, office space and other things, they are looking to hire people on a project-by-project basis.
“Work forces are always evolving, especially during a recession, but what’s different this time is that there’s a greater emphasis on a contingent, ‘just-in-time’ work force,” he says.
Of course, this model is nothing new. It’s been used for years in the IT arena, in which workers typically come in to a company to perform a specific task (such as a server installation), then leave and return only on an as-needed basis. What is new, however, is the broadening range of tasks that just-in-time workers are being hired for.
“We’re seeing the age of the specialty worker expanding,” Dacri says. “Companies are running leaner, so they want to focus on their core business and bring in people when they’re needed.”
This growing trend isn’t unique to Maine. Across the country the “gig economy” (a term coined by public relations consultant and blogger Ann Brenoff) is flourishing. In fact, the Department of Labor anticipates that the number of people engaged in part-time work in their chosen field who are being paid on a project basis will grow 83% from 2008 to 2018.
On its face, this model seems to benefit employers the most, as they save money on costs associated with full-time employees. But Dacri says it could also work well for Maine’s aging population. Many retired workers have the types of specialized skills companies may need, but who don’t want to work on a full-time basis.
Those “smart, business-savvy” people Tomm works with aren’t looking to be unemployed, and would prefer to work to their full potential. Under project-based employment, they could conceivably find themselves on the training side of the equation, rather than the trainee side. For example, they could be brought in to complete a specific project that requires consulting with the company or even providing training and mentoring to younger workers.
“This could be a great opportunity for older workers to share their expertise while earning an income that will help them make ends meet,” Dacri says. “It also allows those older workers to work less than a full week, if that’s what they want.”
Derek Rice, a writer based in Saco, can be reached at editorial@mainebiz.biz.
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