Puerto Rico companies could do more for older workers, and themselves
The island is undergoing a demographic shift.
Nearly 60% of employers in Puerto Rico fail to provide adequate support to older workers and caregivers compared with countries that are proactive at keeping older adults employed.
A recent study showed that 12.1% of the island’s elderly population participates in the workforce, but not even half (43%) of employers collect data on these employees, and fewer offer targeted benefits and services.
Only 1% of the companies offer coordination or navigation services for eldercare; 6% provide training for leaders on supporting older and caregiver workers; and 7% offer financial planning sessions related to eldercare, according to the study, “Puerto Rico HR Trends 2024: Older Adults in the Workplace,” commissioned by the Society for Human Resource Management Puerto Rico Chapter (SHRM-PR) and conducted by consulting firm Aon.
Puerto Rico is experiencing a demographic shift toward accelerated aging, driven by longer life expectancy, an exodus of young people and a declining birthrate. The study projects the local elderly population will make up 39.8% of the island’s population by 2050, up 11.3% from 2020.
Older workers in other countries
According to multiple reports, countries such as Japan, Germany and Singapore have adjusted their governmental policies to attract and retain older workers.
Germany has reformed its pension system to raise the retirement age and has a program called Initiative 50 Plus designed to allow older adults to continue working. It offers training, flexible work arrangements, and health and well-being programs.
The Japanese government requires companies to offer continued employment through age 65. However, workers still “retire” at 60, then return to work at a salary that is about 25% lower.
In Singapore, employers must offer re-employment contracts to eligible employees at age 62, and the contracts must be renewable annually until age 67. If a company cannot offer a position to an eligible employee, it must transfer the obligation to another employer or offer a one-time assistance payment.
South Korea supports workers over 60 years old through flexible work arrangements and opportunities for continued employment beyond traditional retirement ages through its Senior Employment Program.
In Norway, the Norwegian Labour and Welfare Administration has established a flexible retirement system, public health care, sick leave policies and age-discrimination protections in the workplace.
Sweden offers flexible work arrangements, adjustments to the pension system to encourage extended working lives, antidiscrimination policies, lifelong learning and training, and health and well-being programs.
In the U.S., the Age Discrimination in Employment Act prohibits workplace discrimination against individuals aged 40 or older, and the Senior Community Service Employment Program provides subsidized work-based training and community service jobs for unemployed, low-income individuals aged 55 and older.
Older workers in Puerto Rico
“In our society, when you reach a certain age, people start asking you, ‘When are you going to retire? What are you going to do with your life?’ and so forth, not understanding that many older adults want to continue working — not only for financial reasons, but also to have a purpose and be productive,” Ilia Rodríguez, president of SHRM-PR, told News is my Business.
“Older workers offer many advantages to employers, among them adaptability, resiliency, foresight, perspective, experience in decision-making, and the ability to manage people from diverse backgrounds,” Rodríguez said. “These are qualities and skills they can pass on to the younger generation.”
Puerto Rico’s high life expectancy of 79 years means that older workers are already taking care of aging parents, said Bárbara Carbonell, well-being manager for Aon in Puerto Rico.
“We see people in their 60s working and also taking care of their parents, so in addition to the normal personal challenges that come with aging, they have additional problems and needs,” Carbonell said,
Many are working, taking care of the kids and taking care of aging parents, Rodríguez added. “Sometimes they have to leave work to take care of other people, so we’re seeing higher levels of stress, worry and anxiety.”
According to the SHRM-Aon study, 23% of human resources leaders have received requests for compensation increases from employees who are facing financial issues stemming from having to care for an elderly parent.
But despite the aging population, current talent shortage and benefits of having older adults in the workplace, most local companies are not acting.
Organizations in Puerto Rico are not specifically addressing the aging workforce in their employee attraction and retention efforts, said Manuel Antonio Bermúdez, talent consultant for Aon.
“Older adults and caregivers are part of the workforce. That’s a reality that affects all organizations,” Bermúdez said. Companies should consider older workers in their talent strategies “because they possess knowledge and experience that is not necessarily found in recent college graduates,” he said.
To develop effective talent strategies, organizations must know their workforce and understand the needs of each demographic group, Carbonell said. “They must first gather and analyze data about their workforce, something very few do.”
Companies should also review their benefits to identify what older workers need. “Given their age, they are more likely to value health care and well-being programs than retirement plans,” Carbonell added.
SHRM-PR wants to motivate HR professionals to raise awareness about these issues, especially among leaders who make decisions about talent management and organizational culture, Rodríguez said.
“Organizations need to manage this talent differently. They shouldn’t apply the same rules, programs and solutions to workers of different generations,” she said.
