NOW praises Clinton win
On Jan. 8 Sen. Hillary Clinton defied the media pundit machine and made history as the first woman to win the New Hampshire Democratic primary for U.S. president.

The women of New Hampshire turned out in large numbers, and their votes helped Sen. Clinton break another glass ceiling. NOW PAC is proud to be a part of this history-making campaign. We were one of the first organizations to endorse Clinton because we believe she is the best candidate to move our country forward, and New Hampshire Democrats agreed.

The United States needs strong, experienced and principled leadership to restore faith in our government and repair its credibility at home and abroad, and to end the destructive policies that have eroded women’s rights and civil liberties and increased injustice and inequality in our society.

Sen. Clinton is just such a leader. She has a long history of support for women’s empowerment, and her public record is a testimony to her leadership on issues important to women in the U.S. and around the globe. She has eloquently articulated the need for full economic, political and social equality for women in every institution of society, taking action throughout her career—as a lawyer, community leader, First Lady, senator and candidate for the presidency—to advance the civil and human rights of women and girls.

NOW leaders and activists volunteered in both Iowa and New Hampshire, giving their time and energy to turn out the women’s vote for Hillary Clinton. In her victory speech tonight, Senator Clinton said “We are in it for the long run.” Yes, we are.
Kim Gandy
Chair, National Organization for Women PAC
Washington, D.C.

Advantages of older workers
There are nearly 80 million Baby Boomers nearing retirement, many of whom will choose to work well beyond the traditional retirement age, and these older workers will transform the American workplace. Mature adults are redefining retirement, starting second careers or entering the workforce for the first time, and employers must be ready to respond to this changing workforce demographic

An AARP study, “The Business Case for Workers Age 50+,” found that it is a good investment for businesses to go ahead and jump on the older workers’ bandwagon. It was prepared by the global professional services firm Towers Perrin and analyzed the costs associated with hiring and retaining 50-plus workers. 

The results debunk the perception of many employers that 50-plus workers “cost more” than younger workers. But the AARP/Towers Perrin analysis said that the extra per-employee total compensation cost of retaining or attracting more 50-plus workers ranges from negligible to only 3 percent in key industries. At the same time, the research found that older workers are more motivated to exceed expectations on the job than are younger workers.

Without exception, the 10 major U.S. employers interviewed for the study said that the experience, maturity and positive attitudes of the 50-plus workers provide enormous value to their businesses. These findings are consistent with recent national AARP surveys of human resources managers

As far as retention of 50-plus workers is concerned, offsetting factors are the turnover-related costs of replacing veteran employees with deep institutional knowledge and job-related know-how, compared to the time it takes to select and train new workers.

In the case of hiring 50-plus workers, age-based compensation cost differences are negligible—97 percent of average total compensation costs in large U.S. employers involve four components: Cash compensation, health care benefits, retirement benefits and paid time off.

Since companies typically adjust pay levels to approximate the market median for each position, the costs depend more on individual ability, experience, and performance than on age. On retirement benefit costs, traditional defined benefit plan costs typically are higher for older workers. But with the massive shift away from defined benefit to defined contribution plans, the cost focus becomes directly related to pay. 

Time-off costs are not directly related to age; a newly-hired 50-plus worker’s vacation cost is equal to that of new hires at any age. On healthcare costs, Towers Perrin’s analysis found that employees age 50-65 use on average from 1.4 to 2.2 times as much health care as workers in their 30s and 40s. But specific health risks like obesity and smoking have a greater impact on health, regardless of age. 

Employee “engagement” is increasingly viewed as a key factor in predicting the financial success of a company. Towers Perrin’s research demonstrated that, given the high cost of turnover, the higher engagement levels among workers 50-plus should be an important consideration for companies trying to maximize their workforce investment.

These surveys by no means represent all AARP is doing on behalf of older workers.  We have been and will remain on the frontline in educating employers, policymakers and the media about practices that meet the needs of the maturing workforce.
Bob Gallo
Director, AARP/Illinois
Chicago