tapping talent aging workforce
DESCRIPTION
Presentation to HR professionals at TCHRA on June 1, 2012. - Tracy Godfrey and Kate Schaefers.TRANSCRIPT
Tapping the Talent of
an Aging Workforce
Tracy Godfrey
Kate Schaefers
TCHRA June 1, 2012
Godfrey & Schaefers June, 2012 1
Session Overview:
• Changing Demographics
• New Models of Retirement
• Boomer Motivation
• Value Of Older Workers for Organizations
• Finding the Sweet Spot: Win-Win for
Employees and Organizations
Godfrey & Schaefers June, 2012 2
Changing Demographics
Bringing It
Home:
Workplace
Profile
Godfrey & Schaefers June, 2012 3
“A Change Is Gonna Come”
Aging Population • Boomers are approaching retirement and people
are living longer
Aging Workforce • The workforce is older & people are working longer
Work Itself Is Changing • More Knowledge Economy – vs. Manufacturing
Loosening the Employer/Employee Bond • From lifetime employment to “free agents”
Godfrey & Schaefers June, 2012 4
Population Workforce
Work Bond
Workforce Trends, 1990 - 2020
Godfrey & Schaefers June, 2012 5
17.9% 15.8% 13.6% 12.5%
70.2% 71.1% 66.9%
62.9%
11.9% 13.1% 19.5%
24.6%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
1990 2000 2010 2020
55 and older
25 to 54
16 to 24
The percent over age 55 more than doubles; The percent age 16 – 24 declines
U.S . BLS, Mar., 2012
Industries impacted by Age
Godfrey & Schaefers June, 2012 6
42.1
47.1
41.0 41.6
44.1 43.7
38.0
45.8 46.2
41.3
42.4
46.5
43.0
40.7
44.5
43.0
31.2
43.3
44.9
30
32
34
36
38
40
42
44
46
48
Median Age of Employees by Industry Sector in the U.S.
U.S . BLS, as of 2011
Age Is More a Factor for Some Fields Farmers & Ranchers 55.9
Architects 46.7
Electrical Engineers 45.0
Engineering Techs 46.5
Lawyers 47.2
Education
• Librarians 52.0
• Postsec. Teachers 45.7
• Teacher Assistants 44.9
Aircraft pilots 49.0
Bus Drivers 52.6
Const/Bldg Inspector 50.7
Hwy. Mntnc Worker 45.3
Boiler Operator 51.5
Healthcare
• Physicians 46.3
• Nurse Practicioners 46.9
• Med. Transcript. 50.7
• Health Srv. Mgrs 49.6
Cleaning & Maintenance
• Janitors & Cleaners 46.4
• Maids & Hskeeping 45.2
Mail carriers 49.9
Computer operators 48.9
Millwrights 49.3
Prec. Instr. Repairers 47.9
Tool & Die Makers 51.0
Godfrey & Schaefers •June, 2012 7
U.S . BLS, as of 2011
Business Trends - Surveys
• SHRM-AARP 2012 Study – 430 randomly selected SHRM members
• Manpower 2006 Study – 28,000 employers from 25 countries & territories
• Sloan Center on Aging & Work, BC
2009 Talent Management Survey – 696 US organizations representing 10 leading sectors
of the economy, data from HR directors or CEO’s.
Godfrey & Schaefers June, 2012 8
How Concerned are Companies?
• Sloan Study: 40% of employers projected that the aging of
their workforce would have a detrimental impact on their
business.
• SHRM/AARP survey: 72% saw loss of talent due to older
workers leaving/retiring as a “problem” or “potential
problem”
• Manpower Conclusion:
“The potential loss of productivity and intellectual capital
could have a devastating impact on many businesses
that are currently unprepared to adapt to the new
realities of the aging workforce.”
Godfrey & Schaefers June, 2012 9
What are Companies Doing?
• Demographic Analysis
– Just starting to look at fundamental age information
about their employees
– Most haven’t analyzed projected retirement rates
• Knowledge of Workforce Skills
– About half had NOT assessed anticipated skills needed,
or assessed competency sets of employees (Sloan).
~ Sloan Center of Aging & Work (2009) Talent Management Study
Godfrey & Schaefers June, 2012 10
Corporate Spotlight:
Godfrey & Schaefers June, 2012 11
Created modeling tool for anticipating workforce needs • Workforce segmentation (5 age & 10 job level) • Calculates future head count by segment & level
for each business
Allows Dow to: • Staff up key growth areas • Identify knowledge management risks for retiring
employees
Harvard Business Review, 2010
Bringing It Home: Workplace Profile
• Analyze demographics of your workforce: – Age distribution
– Turnover and retention rates, by age ranges
• Develop a “talent bank” of skills and expertise
• Conduct a Gap and Risk Analysis – Where are vulnerabilities for losing talent?
– Segment risks: function, skill set, department, etc.
• Anticipate changes in HOW work is done – Impacts of technology, Telecommuting, working virtually
• Forecast Future Talent Needs
Godfrey & Schaefers June, 2012 12
New Models of Retirement
Bringing It
Home:
Expanding the
Talent Pool
Godfrey & Schaefers June, 2012 13
What does “Retired” look like?
Godfrey & Schaefers June, 2012 14
History of Retirement
Godfrey & Schaefers June, 2012 15
1900’s 1930’s 1960’s TODAY
Soci
al S
ecu
rity
Act
of
19
35
Sun
Cit
y -
19
60
Vo
n B
ism
arc
k –
Ger
ma
ny
- 1
88
3
Longer Lives, More Years in Middle
• On average, people live 18 years beyond 65
• Frail elder stage pushed out a decade or more
• People age 60-75 remain active, healthy
Godfrey & Schaefers June, 2012 16 16 16
40 - 55 20 - 40 55 - 70 70 – 85+
Now
1900 1900
A “New Stage” Has Emerged
Retirement – New Realities
• 20% of those “retired” are
working, some full-time
• Retirement is no longer a
stopping point.
• People see work as part of
active retirement
Godfrey & Schaefers June, 2012 17
Work continues– but probably in a different
way
Opportunity for Organizations
• Huge potential talent base
• Fit well with “talent on demand” way of staffing
• Significant opportunity for meeting current and future talent needs
– Get beyond case by case approach
– Link with engagement strategies
– Examine policies that support and interfere
– Go beyond retention – need recruitment too
Godfrey & Schaefers June, 2012 18 18 18
Spotlight: Lexington, KY
Godfrey & Schaefers June, 2012 19
Flexibility & Career Coaching Program - Mid and late career nurses - Assessed skills & career needs - Identified career direction - Connected with existing resources Improvements in retention, employee engagement,
succession planning & re-careering
Sloan Center, Case report, March, 2012
Bringing It Home:
Expanding the Talent Pool
• Help Employees Navigate the “New” Retirement:
Extend career assistance to “pre-retirement” phase. Talk
with employees about their plans.
• Educate recruitment specialists about older workers:
Ensure recruiters know how to engage older workers.
• Explore Ways to Translate Employee Needs into
Workforce Priorities
– Shift from “Job” to “Work” mentality
– Job redesign to expand options
– Assistance in transitioning in & out of the organization
Godfrey & Schaefers June, 2012 20
Boomer Motivation
Bringing It
Home:
Boomers in a
Multi-generational
Workplace
Godfrey & Schaefers June, 2012 21
Midlife – A time of New Perspective
June, 2012
“The real voyage of discovery consists
not in seeking new landscapes but
in having new eyes.”
~ Marcel Proust
Godfrey & Schaefers 22
Boomers’ View of Work
• Competitive
• Experimental
• Personal fulfillment
• Challenge status quo
• Put one’s own stamp on
things
• Optimism, idealism
• Desire to make a
positive difference
• Global awareness
• Acceptance of diversity
and differences
• Environmental
stewardship
Godfrey & Schaefers June, 2012 23
Shaped by key shared life experiences at an “impressionable age”
Keys to Your “Ideal Job”
1. Personal & Professional Development – Use talents & skills, give back and learn new things
2. Workplace Culture – Friendly environment, relationships, respect
3. Flexibility – Control - Flexibility on how to do work
– Options for part-time, time off, seasonal work
4. Finances – Fair pay; Benefits; Pension; 401(k)
Godfrey & Schaefers June, 2012 24 24 24
AARP Survey of Workers over 50
Motivating Boomers: Strategies
Link Work with Corporate Mission
• Focus on Task significance
• Identify ways to give back
• Promote mentoring
Godfrey & Schaefers June, 2012 25 25 25
Connect Work with Purpose
Spotlight: Armonk, NY
Godfrey & Schaefers June, 2012 26
Transition to Teaching Program - Assistance in teacher certification for IBM
mature workers - Financial support & flexibility - Restructured existing HR benefits
Promoted goodwill with employees, clients, & community Higher morale, rates of retention, market positioning
Similar Examples: Intel, HP introduction of Encore Fellows Program to transition into nonprofit careers
Motivating Boomers: Strategies
Commit to Developing Boomers
• Career Development
• Use Talents & Skills
• Life Long Learning
• Upgrade Skills
Godfrey & Schaefers June, 2012 27 27 27
Offer Career & Professional Development
Spotlight:
Godfrey & Schaefers June, 2012 28
Career Lattice Program - Employees can customize careers - Dial up or down, multidirectional career
paths
- Flexibility in Ways to work - When, where, and how to work
- Many ways to Participate - Flatter organization with more collaboration
& transparency
Motivating Boomers: Strategies
Build Strong Multigenerational
Cultures
• Friendly environment
• Relationships
• Respectful culture
• Meaningful teamwork
• Affinity groups for older workers
Godfrey & Schaefers June, 2012 29 29 29
Strengthen Culture & Social Relationships
Corporate Spotlight:
Wells Fargo Boomer Connection
Mission To address the challenges of the team members of the
vast Baby Boomer generation in order to retain team
members, transfer knowledge and experience at work,
prepare for better lifestyles after retirement and help Wells
Fargo succeed in the Baby Boomer market.
Goals: 1. Inclusive workplace and team member engagement
2. Talent development and professional growth
3. Community outreach
4. Business development and customer insight Godfrey & Schaefers June, 2012 30
One of Wells Fargo’s Employee Resource Groups In its Diversity & Inclusion program
Motivating Boomers: Strategies
Shift from “job” to “work”
• Flexible Appointments
• Sabbaticals to recharge
• Contracting
• Consulting
• Downshifting
• Telecommuting
• Part time, seasonal
Godfrey & Schaefers June, 2012 31 31 31
Flexibility & Work-Life Balance
Corporate Spotlight:
Godfrey & Schaefers June, 2012 32
• Flexible Work Schedules - Compressed work weeks - Flexible hours - Part time work
• Ways to Work - When, where, and how to work
Motivating Boomers: Strategies
Compensation tied to Work
• Fair Pay over Promotions
• Access to Benefits • Health care
• Retirement
• Choice of Benefits • Elder care assistance
Godfrey & Schaefers June, 2012 33 33 33
Targeted Benefits & Fair Pay
Spotlight:
AARP list of ‘Best Employer for Workers over 50
Benefits offered to all employees, but appeal to
workers 50+
• On-site medical center
• Wellness, fitness & recreation programs
• On-site education program
• Paid sabbaticals to experienced employees
• Comprehensive financial benefits
• Retirement planning tools
Godfrey & Schaefers June, 2012 34
Bringing It Home – Boomers in a
Multi-Generational Workplace
• Find out what your mature workers want – Surveys, focus groups, one-on-one discussions, incorporated into
individual development plans
– Personal vision: where do you see yourself in 5 years?
• Align with factors of the “ideal job” – Meaningful work, continued learning, welcoming, part of a nimble
workforce, rewards for the work that is done
• Create an age-friendly environment – Redefine career paths, working relationships
– Cross-generational teams, mentoring, knowledge-sharing
– Re-examine policies for unintended consequences
Godfrey & Schaefers June, 2012 35
Value of Older Workers
Bringing It
Home:
Maximizing
Contributions &
Knowledge
Transfer
Godfrey & Schaefers June, 2012 36
Source: FreeDigitalPhotos.net
Value of Mature Workers –
Edge in Basic Skills (SHRM/AARP)
• Communications: Writing and Speaking in
English, Reading Comprehension, Foreign
languages
• Technical skills: computer, engineering,
mechanical
• Math and Science
• Social science connections: Government,
economics, history, geography, arts, humanities
Godfrey & Schaefers June, 2012 37
Value of Mature Workers –
Edge in Applied Skills (SHRM/AARP)
• Professionalism: Work ethic, responsibility,
social responsibility
• Thinking ability: critical thinking, problem-
solving, judgment, creativity/innovation,
information technology application
• Working in Teams: Teamwork, collaboration,
leadership
• Learning: commitment to lifelong learning, self
direction
Godfrey & Schaefers June, 2012 38
Older Worker: Overcoming Myths
Myths
• Not committed
• Less productive
• Unable to learn
new approaches
• Inflexible
• Not vigorous
Godfrey & Schaefers June, 2012 39
Reality
• Loyal, reliable
• Work smarter
• Deal with
complexity
• Able to compromise
• Conscientious,
engaged
Older Worker: Real Challenges
• Marginalized in work discussions
• Passed over for training and new assignments
• Trivialized - Given routine or menial tasks
• Unemployment – difficulty getting back to work
• Age discrimination in employment & on the job
• Unintended consequences of HR policies
established for equitable and consistent practices
• “Age-ism” - Stereotypes, assumptions, attitudes
• “Boomer Backlash” – tensions and
misperceptions among generations
Godfrey & Schaefers June, 2012 40
What are Companies Doing?
• Planning for Talent Transfer
– Developing succession plans (38%)
– Developing processes to capture institutional
memory/organizational knowledge (17%)
– Create new roles specifically designed to bridge a skill or
knowledge gap (9%)
• Making the Workplace Climate Age Friendly
– Adapt workplace to accommodate older workers (9%)
SHRM/AARP 2012 Survey
Godfrey & Schaefers June, 2012 41
Spotlight:
Apprenticeship Program
Wayne, NJ Plant
• Manufactured surgical grafts & fabrics
• Highly skilled workforce, lack of succession plans
• Identified critical jobs
• Developed apprentice program training new staff
alongside experienced workers
Godfrey & Schaefers June, 2012 42
Bringing It Home –Maximizing
Contribution & Knowledge
Transfer • What would you miss if they were gone?
– Skills? Relationships with clients?
• What are skills gaps between your older and younger
workers?
• How can knowledge be transferred and wisdom shared – Mentorships? Projects?
• HR policies and practices: Where barriers and hurdles,
even unintentional, exist that disadvantage older workers?
• What assumptions made about older limit opportunities?
Godfrey & Schaefers June, 2012 43
Finding the Sweet Spot
Bringing It Home:
Win-Win for Employees
& Organizations
Get Ready for Success
Godfrey & Schaefers June, 2012 44
Choose TWO Image Cards
1) Imagine your organization in
5 years. What would it look
like if it was truly
multigenerational, engaged,
and productive?
1) What barrier(s) might get in
the way of this being a
reality?
Godfrey & Schaefers June, 2012 45
Reflection Questions
1. Describe the scene – what is going
on?
2. Why do you think you were drawn to
this particular image?
3. What thoughts do you have for how
to connect the image to the original
question?
Godfrey & Schaefers June, 2012 46
Implications for HR Professionals
1. Changing Demographics – Workplace profile
2. Changing Thinking - Work, Retirement; “New
Stage” of Life
3. Understand Boomers and Generations in the
Workforce
4. Value Mature Workers in the Organization
5. Finding the Sweet Spot for Both Employees
and the Organization
Godfrey & Schaefers June, 2012 47
About Us
Tracy Godfrey is a seasoned HR
professional with more
than 25 years
experience, leading
teams & consulting on
recruiting and selection
for major Twin Cities corporations.
Tracy holds an MBA and Senior
Professional, Human Resources
(SPHR) certification. He is a member
of the Leadership Group of the Vital
Aging Network (VAN)
Kate Schaefers Ph.D. LP, is owner of
Encore Life Planning.
She is a licensed
psychologist & certified
retirement coach. She
offers coaching and
consultation to individuals and
organizations on issues related to
work in the second half of life. She is
an adjunct faculty member at the
University of St. Thomas Dept. of
Organization Learning and
Development and Graduate School
of Professional Psychology
Godfrey & Schaefers June, 2012 48
Link to Today’s Presentation
on SlideShare
http://www.slideshare.net/TracyGodfrey/
tapping-talent-aging-workforce/
Godfrey & Schaefers June, 2012 49
Appendix
Godfrey & Schaefers June, 2012 50
Examples from “Early Adapters” • “Prime Time” – First Horizon – flexible work option of 20 to 32 hours/week - prorated pay
- retain full benefits, including health insurance (A)
• Fewer Hours – Fidelity – Recruits 55+ for part-time in peak hours (B)
▪ Flexible work schedules – General Mills R&D – Accommodations include compressed
work weeks, flexible hours, as well as part-time work (A)
• Flexible Location – Boston College – Telecommuting options for IT (B)
▪ “Retiree Casual” – The Aerospace Corporation – Re-hire retirees to work part-time to
1000 hr. pension limits–as consultants, proj. mgrs, indiv. contributors, etc. (A)
▪ “QUEST: Qualified Employees Seeking Transfer” – Cornell University (C)
▪ Special assignments/Job Rotation – for mobility & skill-building–Deere & Co
▪ Phased Retirement – Pitney Bowes Engr. Dept. – variety of shapes, including
condensed workweeks, telecommuting & reduced workweeks (B)
▪ Apprenticeship Program – Boston Scientific – Pair up highly-skilled veteran craftsmen
& apprentices for knowledge transfer and succession planning. (A)
▪ Retirement Planning Seminars – Weyerhaeuser – Paid time away for workers over
50 for a 3 day retirement planning workshop, with partners (e.g. spouses)(A)
• Cross-Generational Networking Circle – MITRE – for knowledge-sharing
• “Encore Fellows” – Civic Ventures pilot in S.F. Bay Area – Executives from For-Profit
sector working in Non-Profit assignments
• Boomer Connection – Wells Fargo resource group
Godfrey & Schaefers June, 2012 51 51 51
A: MetLife; B: Sloan Center, Boston College; C: AARP Top 50 Employers
Resources Civic Venture: www.civicventures.org Information on “encore careers”
SHiFT: www.shiftonline.org Local network supporting people in mid-life who seek greater meaning in life and work
The Sloan Center for Aging and Work, Boston College: http://www.bc.edu/research/agingandwork/
MN Governor’s Workforce Development Council – Older Workers Workgroup: http://www.gwdc.org/committees/older_workers_workgroup/
MN career, education & job resource: http://www.iseek.org/ - Collaboration between government (MN DEED) & education (MN SCU)
MetLife Mature Market Institute: www.metlife.com/mmi/
AARP Foundation – Worksearch site: http://foundation.aarp.org/WorkSearch/
“Encore: Finding Work That Matters in the Second Half of Life,” Marc Freedman (Public Affairs Paperbacks, 2008)
“The Big Shift: Navigating the New Stage Beyond Midlife,” Marc Freedman (Public Affairs Paperbacks, 2011)
“Working Identity: Unconventional Strategies for Re-inventing Your Career,” Herminia Ibarra (Harvard Business School Press, 2003)
PBS: “Retirement Revolution”: http://www.pbs.org/wttw/retirementrevolution/watch/ (Sep., 2009, 2 hr. program)
Godfrey & Schaefers June, 2012 52 52 52
Talkin’ Bout My Generation
Key Experiences Shaped Boomers
• Movements for civil rights,
women’s liberation, gay
rights – inclusion of new
groups in society & work
• Vietnam, Watergate,
Questioning authority
• Quest for personal
fulfillment
Godfrey & Schaefers June, 2012 53
Basically: “Sex, Drugs & Rock ‘N’ Roll” Note: some of this is mythical. For some, it didn’t happen
• Greater awareness of
environment and nature –
“Earth Day” & more
• Experimentation
• A sense of optimism &
desire to change the
World
• Striving to stand out
among a large cohort
Key events at an “impressionable age”:
Popular Views of Generations
in the Workforce Generation Seen As Seeking
Traditionalist
(1922 – 1945)
Dedicated
Duty and service
Faith in institutions
Work with substance
Chance to pass on what
they know
Baby Boomer
(1946 – 1964)
Competitive, Optimistic
Hard-working
Personal fulfillment focus
Work with purpose
Make a difference
Flexibility
Gen X
(1965 – 1980)
Resourceful
Self-reliant, independent
Skeptical
Opportunity to lead
Career flexibility for work-life
fit
Millenial
(aka Gen Y)
(1981 – 2000)
Pragmatic, realistic
Mobile, connected
Collaborative
Experiences for growth
Fluidity in work-life
Ability to work anytime,
anywhere
Godfrey & Schaefers June, 2012 54
Tolbize, “Generational Differences in the Workplace”, 2008