Academic journal article Journal of Accountancy

Small Business Thrives on Hiring Older Workers

Academic journal article Journal of Accountancy

Small Business Thrives on Hiring Older Workers

Article excerpt

Small business and older workers have a mutual attraction, according to a 1991 Small Business Administration study. In 1988, companies with fewer than 25 employees hired more than two-thirds of newly hired workers aged 65 and over. In that year workers who were at least 65 and over represented 4.4% of all new hires in companies with up to 25 employees but only 1.4% of all new hires in companies with 100 or more employees.

There are several reasons for the attraction between older workers and small businesses.

* Many older workers prefer part-time employment, and small companies tend to offer more such opportunities than larger corporations. In 1988, over two-thirds of workers 65 and over were working part-time.

* Older workers are usually paid less than younger workers, making them well-suited to small businesses that need to hold down costs. In 1988, the average worker earned $9.51 per hour. However, workers who were 65 to 69 earned, on average, $8.27 per hour, with new hires in that age group earrang only $5.22 per hour.

* Health insurance coverage does not appear to be much of a factor in choosing a job. …

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