As a manager, you must consider the outcome that this government legislative move will cause. If retirement age is extended out passed the current age of sixty seven to the age of seventy this will keep older works on the job longer. That has an advantage in keeping strong job skills, but is a heavy disadvantage to cost and the bottom line. As the work force ages, their level of productive output will be reduced. This is also the time in an employee's career there an employee's salary is at the highest level as the employees is ending their career. Their amount of vacation time off is at its highest and as the employee ages, their time away from the job increase due the heath concerns. As a manager budgeting the cost of your department, the older work force will reduce the available funds that could be used to complete projects. The ability of a company to retire employees will take those older employees and move them from the companies direct labor costs and transfer them to the retirement accounts and off the books. This also allows the manger to bring in younger and less costly employees, at a lower salary. The new employee will have a willingness and hunger to work longer hours and work with less health care costs," Younger workers were also preferred because they could be paid lower wages, and because prior work experience was considered more of a hindrance". There will be a loss of skills and knowledge with a younger work force, but there will still be a number of experienced employees to keep the company strong. This is why raising the retirement age is not an effective way of helping our businesses prosper.
ROTHENBERG, JESSICA Z.,GARDNER, DANIEL S. (Mar2011), Journal of Sociology & Social Welfare; Vol. 38 Issue 1, 9-30, 22, 2 Graphs