June 20, 2008
Retiring to Retail
By Tom Ryan
According to a study from the Urban Institute, a nonpartisan research group based in Washington, D.C., nearly 350,000 senior men and women earn paychecks in the nation’s stores. The study found that more over-65 employees are working retail than the next two occupations – farming and janitorial work – combined.
According a survey of a few older retail workers conducted by the Los Angeles Times, some “have to” work retail because their savings are running short. Others “want to” work retail to avoid the boredom of retirement. Many work retail jobs for a combination of both reasons.
The reason senior citizens are taking jobs at retail is because employers in many other industries are reluctant to retain or hire older workers.
On the one hand, the specter of senior citizens having retail as their only job option worries some advocates. They’re pushing the federal government, the country’s largest corporations, and other employers to keep older workers on the payroll beyond 65.
“The golden years are being transformed into the Wal-Mart decade,” Marc Freedman, author of Encore: Finding Work that Matters in the Second Half of Life, told the L.A. Times. While he does agree that the retail industry provides benefits, flexibility and jobs, particularly for less-educated workers, Mr. Freedman doesn’t view retail as an ideal retirement option.
“These are not exactly the pictures of reinvention that you get in your monthly issue of Fortune, Money or AARP magazine,” says Mr. Freedman. This is “an object lesson in the dangers of what could happen if we don’t develop a compelling human resource strategy for an aging society.”
But some retailers are aggressively seeking out older employees. Home Depot partnered with AARP four years ago to recruit older employees and says it now has 5,000 employees older than 70.
Their best asset is that they’re loyal and dependable, asserts Tim Crow, chief human resources officer for Home Depot. “We look at the demographics, and everyone is getting older. This is the future work force.”
Discussion Questions: Should retailers be actively recruiting and embracing workers over the age of 65? Do you agree that older Americans will represent the “future work force” for retailers? On the other hand, do you agree that the country needs to develop a human resource strategy for an aging society?
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Retailers hiring retired people is a no-brainer. The labor pool is shrinking as the Baby boomers are retiring. There is a labor shortage at retail to begin with. So why not hire retired people who don’t need medical insurance. Additionally they show up for work on time and require less supervision than teens. What most people miss is 65 is not old today. People are living longer, the latest estimate is 78, so recently retired are not ready for the rocking chair.
Is it really true that retailers are the only ones that are hiring retirees? Or are retirees pursuing retail jobs for a reason? In my own situation, my father-in-law just retired from running a carpet cleaning business and turned around two weeks later to take a retail job–not because no one else would hire him but because he didn’t want the responsibility of a position that would better leverage his experience. He just wants something to do that lets him talk to people. Retail is perfect for that.
In all my years in the field, I have yet to see an ‘old timer’ match the enthusiasm and optimism of a newbie. It is very easy to become jaded in retail as labour budgets shrink and workloads increase.
That said, I think its great that we are hiring older associates. Aside from the money issue, these retirees are probably bored out of their minds and working retail can help them feel like they are still contributing to society while earning a buck. There is this great little old lady who greets at my local Wal-Mart who is absolutely amazing. She performs her duties with laser precision and always has a smile on her face. She is really a class act.
Let’s take a look at the numbers. If you take all retail into consideration BLS reports, more than 15 million people work in retail, so 350,000 is equal to a little over 2.3% of the retail workforce. People over 65 are the fastest growing segment of the populations with over 2.6 million people reaching the early retirement age of 62 starting this year and that number will continue to rise.
It would be interesting to find out if anyone has tracked the number of employees over 65 in retail over the past decade and what type of growth this segment has had as part of the labor force.
As the population continues to age–but age differently–you are going to find more people over the age of 65 involved in the work place in all kinds of positions–not just retail. Those who have the skills, ability, and physical capacity will find all kinds of opportunity as more and more business will need dependable, hard working, educated employees.
As money get tighter and the cost of living edges upward for consumers; as retailers are further pressed by costs and new competition to serve customers better than anyone else could serve them; and as the nerves of many of today’s shoppers climb closer to the edge, there will be a further increase in the value of customer service, in-store courtesies and the need for truly reliable semi-skilled workers not totally forced on advancing wages, work rules, new world grievances or child bearing and rearing responsibilities.
Who best answers the bill for partially adding such ingredients into tomorrow’s complex retail workforce? Socially-concerned seniors who seek or need involvement.
While I am close to reaching retirement age, I never intend to retire. If you are a people person, and really like helping others, finding the right retail opportunity could be a perfect way to continue contributing to society, while still earning a comfortable living. Two things need to happen though.
First, senior citizens, like all employees, need good training on how to work with customers; particularly rude or impatient ones. This may be particularly true in retail situations that have not worked out their ‘bugs’ and continue to make people frustrated.
Secondly, retailers need to consider the physical aspects of their stores and what strenuous activities must take place in working the floor. How can they support these employees with an extra pair of hands, when needed, or giving younger bodies the responsibility of heavy lifting or moving bulky items?
For me, I like seeing an ‘experienced’ face when I go to my local hardware store, pharmacy, or supermarket. But it is also up to each individual person to act young. I have reported here previously in seeing sales staff in stores that act like, and give, the impression they are only on the sales floor in order to qualify for retirement, not that they enjoy being there.
Some retailers like older workers because they allegedly show up more reliably than teenagers and parents with young children. The #1 payroll issue for high staff turnover stores: deliberate overstaffing because management assumes some of the folks simply won’t show up. So 4 people get scheduled because 3 are needed.
On the one side, yes, the spectacle of grandma working at Wal-Mart is not what we tend to think or want for our families. On the other side though is the fact that that generation knew an awful lot about service and treating people well. I don’t think it necessarily is the future of retail but a blending of generations could indeed translate to the bottom line with transference of good customer service skills to a new generation.
Retailers would be fools to ignore this portion of the workforce. For starters, you don’t have to teach them to make change. Additionally, most of them know what they are doing and will produce more sales in 4 hours than one of the average hotshots will produce in 8 hours.
The real trick here is to attract the very best of the available talent by crafting packages to suit their needs. Some need insurance, some don’t. Some want to work weekends, some don’t. Some have grandkids close and some have grandkids far away.
Packages that deal with second career seniors will provide retailers with employees that produce.
What an interesting assortment of comments. Pity so many are so patronising, starting with the “study” itself. So more older people work in retail than farming and janitoring combined? Que sorpresa. Not all retail jobs are physically taxing; virtually all farming and janitoring jobs are precisely that. Some people “have to work retail because they need the money and no one else will hire them”. Others “want to work retail because they’re bored”. Somehow I don’t think this applies specifically to people past the official retirement age who work retail. I think it applies pretty much across the board.
Nikki’s comment was perfectly true as well; the ability to avoid responsibility by simply dealing with customers may seem very attractive to some. As for David’s comment, well, lucky him never having met a poor older person. There are more than a few of them out there who are not nearly as well off as he believes and a lot of the older people at casinos are playing nickel machines because they just love the fun of winning $5. Trust me, I know quite a few of them.
The village where I live is populated by many who are about to reach, or have recently reached, retirement age. Many of them feel entitled to respect simply because they have managed to live that long irrespective of any other reason why they should be respected. Several of them are waging a campaign to have our curbs lowered to make it more convenient for their motorised transport (not sure what you guys call them over there but I have no doubt you know precisely what I’m talking about).
It saddens me to think that older people want and need special treatment because they are part of a demographic rather than people whose lives may be changing. It also saddens me to think the rest of us have to change because of them (and I am pretty close to retirement age myself although not planning to do it, I am sure you will be delighted to hear).
Certainly I think many older people should be able to apply for, and be hired for, jobs in retail outlets. But that doesn’t mean they should be specifically targeted and recruited. Treat us – and them – as individuals on a case by case basis. Otherwise we may next week be discussing discrimination against young people because seniors have taken all their jobs.
Many people at retirement age still have enthusiasm, knowledge, and expertise. In addition, some are very interested in continuing to work. Companies, not just retailers, need to consider this group of people in terms of the knowledge, expertise, and enthusiasm they can bring to a job, a team, and a company.
Years ago when I was at Bullock’s, I remember that some of the most productive sales associates were over 65. Mrs. Deneen was at Bullock’s Wilshire and had a personal book that approached $700,000 in those days and we did everything we could to help her get to work. There were many examples like her.
I don’t think I have ever met a poor old person. I think aged people tend to work just to keep busy. With a pension, 401k, IRA, Social Security, and personal savings income, the typical elderly person in the US has it pretty good. Go to any casino and you will find elderly people who can’t seem to throw their money away fast enough. The last thing they need is more money. I don’t see any need to develop a human resource strategy for older people. If they want to work to keep busy then by all means recruit them.
Retailers should absolutely consider hiring more aging boomers and seniors in the workplace, particularly in those channels and stores that will increasingly serve this demographic. The wealth of expertise and experiences they can bring to shoppers, and their willingness to engage in real customer service, can be a real differentiator to retailers who are willing to move in this direction. The senior work force may need more flex scheduling to manage health care visits, but I am betting that random absences would be less of a problem among a population of people who are delighted to remain part of the work force to help overcome income loss and prevent many from being lonely.
Retail employers benefit most from a diverse group of employees and that includes all ages. Unfortunately, there is blatant age discrimination in the fashion advertising/retail arena. Time after time, I have seen retail/fashion copywriters in their 50’s struggling because they have been pushed out due to cutbacks and mergers. Many can’t find work as copywriters and end up in sales. You can assume that is not by choice. Luckily, I am working for an employer who embraces diversity and enjoys the benefits of 25+ years of job experience. While I’m still in the retail advertising world, it’s not fashion.
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Retailers hiring retired people is a no-brainer. The labor pool is shrinking as the Baby boomers are retiring. There is a labor shortage at retail to begin with. So why not hire retired people who don’t need medical insurance. Additionally they show up for work on time and require less supervision than teens. What most people miss is 65 is not old today. People are living longer, the latest estimate is 78, so recently retired are not ready for the rocking chair.
Is it really true that retailers are the only ones that are hiring retirees? Or are retirees pursuing retail jobs for a reason? In my own situation, my father-in-law just retired from running a carpet cleaning business and turned around two weeks later to take a retail job–not because no one else would hire him but because he didn’t want the responsibility of a position that would better leverage his experience. He just wants something to do that lets him talk to people. Retail is perfect for that.
In all my years in the field, I have yet to see an ‘old timer’ match the enthusiasm and optimism of a newbie. It is very easy to become jaded in retail as labour budgets shrink and workloads increase.
That said, I think its great that we are hiring older associates. Aside from the money issue, these retirees are probably bored out of their minds and working retail can help them feel like they are still contributing to society while earning a buck. There is this great little old lady who greets at my local Wal-Mart who is absolutely amazing. She performs her duties with laser precision and always has a smile on her face. She is really a class act.
Let’s take a look at the numbers. If you take all retail into consideration BLS reports, more than 15 million people work in retail, so 350,000 is equal to a little over 2.3% of the retail workforce. People over 65 are the fastest growing segment of the populations with over 2.6 million people reaching the early retirement age of 62 starting this year and that number will continue to rise.
It would be interesting to find out if anyone has tracked the number of employees over 65 in retail over the past decade and what type of growth this segment has had as part of the labor force.
As the population continues to age–but age differently–you are going to find more people over the age of 65 involved in the work place in all kinds of positions–not just retail. Those who have the skills, ability, and physical capacity will find all kinds of opportunity as more and more business will need dependable, hard working, educated employees.
As money get tighter and the cost of living edges upward for consumers; as retailers are further pressed by costs and new competition to serve customers better than anyone else could serve them; and as the nerves of many of today’s shoppers climb closer to the edge, there will be a further increase in the value of customer service, in-store courtesies and the need for truly reliable semi-skilled workers not totally forced on advancing wages, work rules, new world grievances or child bearing and rearing responsibilities.
Who best answers the bill for partially adding such ingredients into tomorrow’s complex retail workforce? Socially-concerned seniors who seek or need involvement.
While I am close to reaching retirement age, I never intend to retire. If you are a people person, and really like helping others, finding the right retail opportunity could be a perfect way to continue contributing to society, while still earning a comfortable living. Two things need to happen though.
First, senior citizens, like all employees, need good training on how to work with customers; particularly rude or impatient ones. This may be particularly true in retail situations that have not worked out their ‘bugs’ and continue to make people frustrated.
Secondly, retailers need to consider the physical aspects of their stores and what strenuous activities must take place in working the floor. How can they support these employees with an extra pair of hands, when needed, or giving younger bodies the responsibility of heavy lifting or moving bulky items?
For me, I like seeing an ‘experienced’ face when I go to my local hardware store, pharmacy, or supermarket. But it is also up to each individual person to act young. I have reported here previously in seeing sales staff in stores that act like, and give, the impression they are only on the sales floor in order to qualify for retirement, not that they enjoy being there.
Some retailers like older workers because they allegedly show up more reliably than teenagers and parents with young children. The #1 payroll issue for high staff turnover stores: deliberate overstaffing because management assumes some of the folks simply won’t show up. So 4 people get scheduled because 3 are needed.
On the one side, yes, the spectacle of grandma working at Wal-Mart is not what we tend to think or want for our families. On the other side though is the fact that that generation knew an awful lot about service and treating people well. I don’t think it necessarily is the future of retail but a blending of generations could indeed translate to the bottom line with transference of good customer service skills to a new generation.
Retailers would be fools to ignore this portion of the workforce. For starters, you don’t have to teach them to make change. Additionally, most of them know what they are doing and will produce more sales in 4 hours than one of the average hotshots will produce in 8 hours.
The real trick here is to attract the very best of the available talent by crafting packages to suit their needs. Some need insurance, some don’t. Some want to work weekends, some don’t. Some have grandkids close and some have grandkids far away.
Packages that deal with second career seniors will provide retailers with employees that produce.
What an interesting assortment of comments. Pity so many are so patronising, starting with the “study” itself. So more older people work in retail than farming and janitoring combined? Que sorpresa. Not all retail jobs are physically taxing; virtually all farming and janitoring jobs are precisely that. Some people “have to work retail because they need the money and no one else will hire them”. Others “want to work retail because they’re bored”. Somehow I don’t think this applies specifically to people past the official retirement age who work retail. I think it applies pretty much across the board.
Nikki’s comment was perfectly true as well; the ability to avoid responsibility by simply dealing with customers may seem very attractive to some. As for David’s comment, well, lucky him never having met a poor older person. There are more than a few of them out there who are not nearly as well off as he believes and a lot of the older people at casinos are playing nickel machines because they just love the fun of winning $5. Trust me, I know quite a few of them.
The village where I live is populated by many who are about to reach, or have recently reached, retirement age. Many of them feel entitled to respect simply because they have managed to live that long irrespective of any other reason why they should be respected. Several of them are waging a campaign to have our curbs lowered to make it more convenient for their motorised transport (not sure what you guys call them over there but I have no doubt you know precisely what I’m talking about).
It saddens me to think that older people want and need special treatment because they are part of a demographic rather than people whose lives may be changing. It also saddens me to think the rest of us have to change because of them (and I am pretty close to retirement age myself although not planning to do it, I am sure you will be delighted to hear).
Certainly I think many older people should be able to apply for, and be hired for, jobs in retail outlets. But that doesn’t mean they should be specifically targeted and recruited. Treat us – and them – as individuals on a case by case basis. Otherwise we may next week be discussing discrimination against young people because seniors have taken all their jobs.
Many people at retirement age still have enthusiasm, knowledge, and expertise. In addition, some are very interested in continuing to work. Companies, not just retailers, need to consider this group of people in terms of the knowledge, expertise, and enthusiasm they can bring to a job, a team, and a company.
Years ago when I was at Bullock’s, I remember that some of the most productive sales associates were over 65. Mrs. Deneen was at Bullock’s Wilshire and had a personal book that approached $700,000 in those days and we did everything we could to help her get to work. There were many examples like her.
I don’t think I have ever met a poor old person. I think aged people tend to work just to keep busy. With a pension, 401k, IRA, Social Security, and personal savings income, the typical elderly person in the US has it pretty good. Go to any casino and you will find elderly people who can’t seem to throw their money away fast enough. The last thing they need is more money. I don’t see any need to develop a human resource strategy for older people. If they want to work to keep busy then by all means recruit them.
Retailers should absolutely consider hiring more aging boomers and seniors in the workplace, particularly in those channels and stores that will increasingly serve this demographic. The wealth of expertise and experiences they can bring to shoppers, and their willingness to engage in real customer service, can be a real differentiator to retailers who are willing to move in this direction. The senior work force may need more flex scheduling to manage health care visits, but I am betting that random absences would be less of a problem among a population of people who are delighted to remain part of the work force to help overcome income loss and prevent many from being lonely.
Retail employers benefit most from a diverse group of employees and that includes all ages. Unfortunately, there is blatant age discrimination in the fashion advertising/retail arena. Time after time, I have seen retail/fashion copywriters in their 50’s struggling because they have been pushed out due to cutbacks and mergers. Many can’t find work as copywriters and end up in sales. You can assume that is not by choice. Luckily, I am working for an employer who embraces diversity and enjoys the benefits of 25+ years of job experience. While I’m still in the retail advertising world, it’s not fashion.