By now you have probably heard it can cost employers substantial money when their employees cannot afford to retire and instead stay on the job. But most likely you have not figured out what that means for your company’s future bottom line—and you should.
“The more cutting-edge companies are not only listening to the industry talk about the impact of an aging work force but actually assessing their own work force,” says Bill Kline, national practice leader, retirement plan consulting at Arthur J. Gallagher & Co. in Itasca, Illinois. “It’s one thing to hear people talking about this trend. It’s a completely different thing to measure the impact for your company and address the issues with delayed retirement. If the HR [human resources] side of a company can actually quantify the financial impact of an aging work force, it can get a very receptive audience for addressing those issues in the CFO [chief financial officer] and other members of the ‘C-suite.’ That’s what is starting to happen now.”
More employers have begun using data analysis to connect the dots between employee pay and benefits, employee productivity and engagement, and between all of them and bottom-line business outcomes, says Betsy Dill, a senior partner at consultant Mercer in Los Angeles. “HR is increasingly under pressure to produce a return on investment [ROI] for programs they have put into place,” she says. “With the sheer amount of data now available to them, HR leaders are considering how to take advantage of ‘big data’ analytics to quantify the impact of their programs.”Story Continued Below