Small retailer employment of older workers: an assessment.

Abstract

This paper focuses on a study which examined the employment of older workers by small retailers in the United States. It considers the literature on the future role of senior employees in the economy, the merits of hiring these individuals, their needs, and steps which can be undertaken to improve their motivation and make them more productive. Further, it sets forth the results of an empirical investigation into the senior citizen employment practices of small retailers, advantages and disadvantages of employing seniors, and expected future employment trends. The manuscript concludes with a discussion of the implications of these patterns for small retailers.

Introduction

The past several decades have witnessed an aging of the United States population, as those in the baby boom generation and their progeny move on into maturity. This trend continues, as the median age of the country advances rapidly and steadily with the passage of time (Moyers & Dale, 2004). Improvements in nutritional practices, exercise patterns, and medical care have resulted in larger numbers of individuals who reach age 65 and beyond. In turn, many of these experience mental and physical health status that is superior to that of previous generations. Further, large numbers of seniors evidence a preference for expanding their working years beyond age sixty-five, either on a full-time or a part-time basis (Dychtwald, Erickson, & Morison, 2004).

Some small retailers are confronted with difficulty in recruiting, hiring and retaining capable employees and have vacant positions in both the skilled and unskilled ranks (Kraut, 2005). This pattern is perhaps most evident in regions of the country experiencing substantial economic growth, such as portions of the Southwest and Southeast. Various means of acquiring additional sought employees are available, but one that appears to possess considerable potential is to hire and retain older workers. For some small retailers, this may be the superior alternative (Peterson & Spiker, 2005).

Objectives of the Study

The study which this manuscript addresses focused on several objectives:

1. To provide insights on the degree to which small retailers in the United States employ older workers.

2. To uncover advantages of employing older workers, in the opinion of small retailers.

3. To uncover problems associated with employing older workers, in the opinion of small retailers.

4. To assess expected future hiring and retention intentions for older workers among small retailers.

Review of the Literature

The literature contains various articles which consider recruiting, hiring, and retaining seniors for positions in business and not-for profit organizations (Sullivan & Duplaga, 1997). However, a substantial proportion of the studies cited in the articles have been generic and have not focused on small business in general or small retailing in particular (Greller & Stroh, 2004). Further, some of the literature contains narratives reflecting the authors' opinions and case studies of individual firms, rather than statistical analysis which considers multiple companies (Bell, 2001). While valuable, these inquiries do not provide comprehensive coverage of the status of small retail business employment patterns.

Studies indicate that the workforce in the United States is aging rapidly and will continue to do so well into the twenty-first century ( Purcell, 2005; Fusaro, 2001). Current labor shortages were caused by unusually low birth rates among Baby Boomers and recent (sometimes early) retirements by these individuals. In turn, the shortages are particularly acute in various skill-demanding occupations, and in some parts of the country. Given the relatively small magnitude of new entrants into the labor force and the potentially large number of Boomer retirements on the horizon, labor shortages are likely to become significant during upcoming decades. (McEvoy & Blahna, 2001).

The Baby Boomers are aging, and this is important since 55 and older individuals make up the fastest-growing segment of the workplace (Albright & Cluff, 2005; Barrier, 2002). And some take early retirement. This creates potential job opportunities for those age 65 and older. Yet many small retailers are not actively seeking older workers, promoting them, or taking other steps to retain those already employed (Adams, 2002). In a positive vein, however, some seniors, made up of early retirees from large businesses, have formed a large number of small retail businesses and are actively involved in engaging older workers (Minerd, 1999).

The impact of Baby Boomer retirements on the economy and on specific occupations and industries, including small retailing, could be substantial-a work force short on workers and long on retirees. According to one consultant the aging workforce promises to restructure the economy, reshape the family, redefine politics and even rearrange the geopolitical order of the next century. Unlike many predictions, global aging is no mere hypothesis: Its approximate timing and magnitude are already locked in. (Van Yoder, 2002).

Research suggests that many workers who are age sixty-five and older are very productive and motivated members of the work force (Anonymous, 2003; Swanson, Kopecky, & Tucker, 1997; Bell, 2001; Welbourne & Cyr, 1999; Kraut, 2005). Various employers have come to prefer seniors because of their experience, possession of the work ethic, and lack of need for extensive training (McShulskis, 1997). Research by the Independent Institute for Employment Studies suggests that older workers are more committed and reliable, have better customer- facing skills, understand business better, and take less time in short term sickness absence (Anonymous, 1999). Further, these individuals are willing to work at a variety of schedules and can serve as mentors (Challenger, 2004; Anonymous, 2003) Other research indicates that many seniors have a strong service orientation, a positive attitude toward work, and experience less turnover than do their younger counterparts (Tshirhart, 1998; Finegold, Mohrman, & Spreitzer, 2002). Still other studies indicate that seniors often work well with others and have well-developed interpersonal skills (Anonymous, 2001;Halachmi, 1998).

In a review by Crampton, Hodge, & Mistra (1996), older workers are reported as enjoying themselves more on the job and less concerned with advancement, more loyal to the company than other employees, and possessing high morale. Tschirhart (1998) indicates that over 60 workers are receptive to feedback and perceived their work to be more meaningful than do younger employees. Studies in psychology have discovered that men and women in the age group 55 to 72 scored as well or better than those in younger groupings in ability to handle complex tasks, capacity for multitasking, and productivity (Bushko & Raynor, 1999). In sum, the literature contains multiple citations to the effect that older workers possess capabilities which can enable them to be very productive employees of small retail firms. For many companies, their competitive advantage hinges on their ability to recruit and retain experienced older workers with critical skills (Albright & Cluff, 2005).

However, there is evidence that the strengths possessed by senior employees are very appropriate for certain types of work, but perhaps not for other types. There are positions which are often better served by their younger counterparts. Over a time period spanning many decades, researchers have well-documented a differentiation between two broad types of intellectual abilities across the adult life span. These are (1)fluid intellectual abilities--termed "Gf" and (2) crystallized intellectual abilities--termed "Gc" (Cattell, 1987). The research indicates a gradual decline in fluid intelligence as one ages. In turn, this type of intelligence is associated with working memory, abstract reasoning, attention, and processing of novel information. Most research shows that maximum levels of Gf are normally reached in the early twenties and steadily declines thereafter (Schaie, 1996). High Gf is associated with extroversion and openness to new experiences and technology. Some positions which especially require this orientation include computer scientists, mathematicians, and scientists.

On the other hand, crystallized intellectual abilities (Gc) tend to increase with age. These represent broad aspects of educational or experiential knowledge and are associated with general knowledge, extent of vocabulary and verbal comprehension (Cattell, 1987). High Gc is associated with more conscientiousness, emotional control, higher level goals, and desires to promote the interests of others. Some of the positions which require high Gc are salespersons, managers, supervisors, human relations specialists, and trainers. Most small retailers probably require some combination of Gc and Gf skills, given the wide range of responsibilities and duties which are assigned to individual employees. In turn, older individuals can compensate for declines in Gf by selecting jobs and goals and by using strategies that optimize existing Gc knowledge and skills (Baltes & Baltes, 1990). In general, older workers excel in jobs and companies where high Gc is required. However, they may be able to function well in environments associated with High Gf if they are willing to exert the effort needed to master the skills which are required. Still, employers should face the reality that seniors may perform well in some kinds of jobs but not in others.