Rethinking Work Mgs 4 29 11 Final For Slide Share

Rethinking Work for a Changing World

Tracy GodfreyKate Schaefers

MN Gerontological Society Conference

April 29, 2011

Godfrey & Schaefers April, 2011 111

Rethinking Work: Session Goals

• Provide information on demographics on the aging population and workforce

• Trends and changes in thinking on work and retirement

• Ideas of what older workers and employers can do• Discuss broader implications of these trends across

other aspects of society


“A Change Is Gonna Come”: Aging Population

• The number of boomers reaching “retirement” age will grow dramatically in the years to come.– 30% more will turn 65 this year than last year

• People are also living longer• Number of Adults age 65+ Will Continue to Grow

– 79% Increase between 2010 and 2030– By 2030, those over 65 will make up 19.3% of population

• In Minnesota, numbers of people aged 65+ is expected to total 1.3 million in 2030


Sources: Administration on Aging, 2009, Ecumen 2007 Age Wave Study

PopulationWorkforce

Work


Age Distribution Has Changed

20-40 40-45 45-50 50-65 65+0

10

20

30

40

50 47.0

7.6 7.2

21.6

16.6

37.8

10.0 10.4

24.5

17.3

1980 2007

% of Population Over Age 20

Source: Gillaspy & Stinston, “The New Normal”, Nov., ‘10

Minnesota1980 vs. 2007

PopulationWorkforce

Work

How old is “Old”? The answer depends...

Age Group• Early Boomers

(1946 – ’51)• Middle Boomers

(1952 – ’58)• Later Boomers

(1959 – ’64)

“Old”78


Survey of Baby Boomers:

75

71

Generally, “Old” seems to be at least 5 years older than you are.

Source: “Boomers in the Middle, MetLife Mature Market Institute, 2010

PopulationWorkforce

Work

“A Change Is Gonna Come”: Aging Workforce

• Workers over 50 are a growing portion of the workforce (now more than 30%)

• Labor force participation of those 55+ is increasing

•More people are working past age 65 (now 18%)

• In the U.S. from 2006 to 2016, workers 65+ will be the fastest growing age group (+84%); ages 55 -64 is next(+37%); workers 16 – 24 will decrease by 7%; Minnesota trends show this same pattern.

• If trends continue, adults age 55 & up will be 25% of the workforce in 2019.Godfrey & Schaefers April, 2011 6

PopulationWorkforce

Work

In Minnesota, 30 Percent MoreWorkers Turned Age 62 in 2008

- Trend Will Continue Until 2022

0

10,000

20,000

30,000

40,000

50,000

60,000

7/05 to7/06

7/06 to7/07

7/07 to7/08

7/08 to7/09

7/09 to7/10

7/10 to7/11

7/11 to7/12

Year Turning Age 62

Wo

rke

d W

ith

in P

as

t 5

ye

ars


2005 ACS Source: Gillaspy & Stinston, “The New Normal”, Nov., ‘10

PopulationWorkforce

Work

“A Change Is Gonna Come”Work is changing

• Move to a Knowledge Economy – from a manufacturing economy

• Global economy• More technology, mobility: Internet, WiFi,

Smart phones, Social media• Networked – closer links across

geography - Virtual


PopulationWorkforce

Work

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


40 - 5520 - 40 55 - 70 70 – 85+

Young Adult

Upper Middle Age? El

derly

Seni

or

Retir

ee

Middle AgeYoung AdultNow

Retir

ee

Seni

or

Elde

rly

Middle Age1900 Young Adult

Retir

ee

Seni

or

Elde

rly

Middle Age1900

A “New Stage” Has Emerged

Defining a New Stage of Life

“The sixty-somethings headed our way will invent an entirely new stage of life—the encore years—between the end of middle adulthood and anything resembling old age and retirement. We brand them the young-old, or the working-retired. Or maybe just the oxymoronic years….”

- Marc Freedman, AARP Bulletin, March, 2011


11

Aging Boomer Population: Burden?

• Inadequate savings for retirement• Burden on healthcare systems,

greater healthcare costs• Drain on Social Security, Medicare,

other Social Service programs – fewer workers paying in to support more recipients

• Strain on families and society in caring for those in dependency

• Eventual shortage of labor and talent

Chinese Character for Crisis

Opportunity + Danger

Godfrey & Schaefers April, 2011

12

Aging Boomer Population: Opportunity?

• Well educated, skilled sector of the labor market.

• Healthy and vital contributors.• Skills well suited to today’s

knowledge based economy.• Desire to give back, contribute,

fits with emerging employment needs (i.e. health care, education, environment, social service).

Chinese Character for Crisis

Opportunity + Danger


Benefits in Extended Work Life

For the individual:

• Money: Increased income, more savings

• Sense of accomplishment, contribution

• Increased social interaction and involvement

• Extended vitality and health - for those who stay engaged



For the Employer:• Alleviate, moderate or postpone

shortage of labor• Retain talent; less brain drain• Succession planning, transfer

of knowledge• Organizational profitability and

competitiveness• Older workers bring qualities

that are needed: engagement, work ethic, efficiency, focus



For Government:• Extend life of Social Security,

Medicare• Lower costs for health care,

welfare and other “entitlement” programs

• Volunteers contributing to non-profit, community & civic efforts

• People pay income taxes as they continue to work



For society:• Improved health; reduced

healthcare cost• Healthier communities – more

engaged, involved and caring• Increased labor utilization,

productivity, economic growth, greater prosperity

• Economy grows faster when more people work longer

• Create “communities for life” – across generations


“Retirement” – Old Myths vs. New realities and vision

The Old Myth:• Retire at age 65 and stop working• The “Golden Years” in “Sun City” – moving away

to live in a retirement community• “Senior Citizens” living in “55+” housing, away

from other age groups• Focus on a life of leisure, without responsibility• “Elderly” - increasing frailty and declining health• “It’s all downhill from here!”


“Retirement” – Old Myths vs. New realities and vision

Working in Retirement • 1 in 5 of those over 50 who are “retired”

are working• More than half of those work full-time; • 1/3 of those working full-time are making

more than before they retired.


“Working in Retirement”, Work and Families Institute, Nov., 2010

In Minnesota• 46% of Boomers plan to work PT or FT in retirement• 73% of those who plan to work say their job will be different

than their current job.The Ecumen “Age Wave” Study, 2007

Why people are working longer

It’s more than Financial: AARP Survey – “Ideal Job”: • Personal & Professional Development factors were most

important, followed by Workplace Culture, and then Flexibility, all ahead of Finances

What older workers are seeking in a job:•Still healthy – want to stay physically & mentally active•Make use of one’s skills and talents•Want to make a difference; have a sense of purpose•One’s contribution is valued; respect•Flexibility and control over one’s work•Learn new things and grow professionally•Social: Stay connected, camaraderie, relationships


Why do you work?

“New Stage” Models include Work

• Engaged Aging

• Giving Back

• Encore Movement

• Work, volunteering, care-giving, lifelong learning

• Erik Erickson’s concept of Generativity, Legacy

• Work provides structure, identity, social interaction, meaningful experience, accomplishment, income


Purpose, meaning, contribution and legacy become more important as we age – and the workplace is an outlet for these

The Second Half of Life –Shifting Vision

• Shifting Inner Vision– Reflection– New Perspective– Seeing the world

with new eyes.

21Godfrey & Schaefers April, 2011

Reality Check: Myths & Hurdles Older Workers Encounter

MythsNot committed; short-timer

Less productive

Reduced intellect; can’t learn

Inflexible, rigid

Too high on the “career ladder”; can’t adjust

Not vigorous and active; risk of health issues


RealityMore Loyal; Reliable

“Experience dividend” – focused, work smarter

“Grown-up brain” – higher order thinking; integrate information; Sage wisdom

See multiple perspectives; allow for compromise

Work differently: “career lattice” - jobs with purpose

Conscientious; lower absenteeism; vital; engaged

Illustration: “Hiring Grandpa”, The Economist, Apr. 9, ‘11

Reality Check: Myths & Hurdles Older Workers Encounter

Hurdles• Marginalized: Pushed to the side in discussions, decisions• Passed over for training and new assignments• Trivialized: Given routine or menial tasks – especially in

volunteer roles• Risk of long-term unemployment• Age discrimination in employment and on the job (either

intentional or unintended consequences of rules and policies)

• “Age-ism”: Negative stereotypes, assumptions, attitudes; jokes and categorization (in the media, advertising, general society)


Rethinking Ways To Work• Career continuity – Keep working where you are

• Recombinant Career – combine skills to use in a new way, in a new setting

• Career changer – back to school, training or apprenticeship or internship to move into a new field

• Encore” career – work that combines meaning, social impact, and a paycheck

• Volunteer or community roles


At this point, much of this is being done by individuals, with few established options

Workers: Pathways to New Work• Formal Education

– Return to school– Obtain a credential

• Informal, On-the-job Learning– Stretch assignments to strengthen skill sets– Crafting Experiments (Ibarra’s concept of Working Identity)– Volunteering, civic engagement– Explore an internship

• Alternative Work Engagements– Project assignments– Temporary, flexible work arrangements

• Rebranding– Understand and build on transferrable skills


Employers: Strategies to Engage & Retain Older Workers (& Others)

• Supportive organizational culture. Effectively using multiple generations Pension, rehire, work rules to allow workers to continue Employee resource groups: for Boomers & across generations

• Flexible work arrangements: Flexibility in When, Where and How to work Flexibility in pay and benefits choices

• Meaningful work – “Lead with purpose”• Ongoing education, training and skill development• Senior Consultant or “Guru” roles• Career transitions; recombinant careers to use skills in

new ways; encore careers; bridge jobs• Pro-rated health benefits.• Recapturing “alumni” and retired workersGodfrey & Schaefers April, 2011 262626

Broader Implications for this new view of work for an aging world

• Housing• Social Services• Public Policy and government regulations• Education – for training and lifelong learning• Civic and community life• Workforce: increasing productivity

(efficiency + innovation)• What does this mean for you and your

sphere of work?


Tapping the Talent of an Aging Workforce Will Take:

• Each person’s awareness, persistence and motivation

• Employers’ receptivity and flexibility• Government promotion and regulatory

structure• Community culture that supports and

encourages lifelong engagement and learning


Image

Identity

Workplace

Governmental

Culture

Self

The Bull’s Eye - When It All Aligns:one’s desire, labor market & societal need

Godfrey & Schaefers 2929

Image

Identity

Workplace

Governmental

Culture

Self

Community Resources

Ways to Connect

29

WorkforceCentersPension

Rules

FlexibleSchedule

WorkRules

JobDesign

EmploymentLaws

PensionLaws

Benefits

EEO

FLSA

OSHA

Environment that values lifelong work

Communities for a Lifetime

Multiple ModelsOf “Retired”

Agencies Community Resources

Social Security

Medicare

EngageMultipleGenerations

CommunityLearning

SupportGroups

Schools

Research/ Innovation Funding&

Support

Networks

Selection

Ways to Connect

Business Development & Career Innovation

Training & Education

April, 2011

Appendix


Percent Change in U.S. Labor Forceby Age, 2006 - 2016

16 to 24

25 to 34

35 to 44

45 to 54

55 to 64

65 and older

Thousands-1,542

4,716

-2,194

-63

7,304

4,582

Source: US Bureau of Labor Statistics, Occupational Outlook Quarterly, Fall, 2007

As the baby-boom generation ages, those 55 – 64 in the labor force will increase by 7 million; 35 to 44 year-olds will shrink

-10% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

-7%

14%

-6%

0%

37%

84%

Godfrey & Schaefers 31April, 2011

The End of Retirement as We Know It

“All of us are now in uncharted territory, a stage of life not seen before in human history. And whether woman or man, whether working-class or professional, we are all wondering how we’ll live, what we’ll do, who we’ll be for the next twenty or thirty years.”

- L.B. Rubin (“The truth about aging in America”, 2007)


From “Engaged as We Age”, Sloan Center for Aging, Boston College, Feb., 2010, p. 13

33

History of Retirement

1900’s 1930’s 1960’s TODAY

Soci

al S

ecur

ity A

ct o

f 193

5


Sun

City

- 19

60

Von

Bism

arck

– G

erm

any

- 188

3

http://www.gorving.com/fun/bigimage8.htm

Dimensions: Workplace Culture(W), Personal & Professional Development (P), Flexible, Convenient Working Arrangements (F), Financial (Fi)

Elements of Older Workers’ Ideal Job

Chance to use your skills and talents

Friendly work environment

Chance to do something worthwhile

Feeling respected by your coworkers

Adequate paid time off

Work allowing you to help others

Competitive pay

Feeling respected by your boss

Opportunity to learn something new

Flexible schedule

Health care benefits or insurance

Short commute

Good pension benefits

Chance to pursue something you’ve always wanted to

A 401(k) retirement plan

On-the-job training

Ethnic and racial diversity

Opportunity for part-time work

Ability to work from home

91%

88%

86%

80%

79%

77%

76%

75%

75%

74%

74%

70%

69%

68%

57%

56%

48%

38%

34%

Godfrey & Schaefers April, 2011 34Source: AARP, 2008

P

W

P

W

F

P

FI

P

P

F

FI

F

FI

P

FI

P

P

F

F

Development & Workplace come first, then Flexibility and Finances

MN Boomers: Why They Work

Dimension % who find important• Keep Physically Active: 86%• Keep Mentally Active: 86%• Income: 86%• Health Insurance: 84%• Sense of Purpose: 82%• Stay Connected with Others: 82%• New Challenges: 79%


Source: The Ecumen “Age Wave” Study, 2007


Transferring Talents to Recombinant / Encore Careers

Career Changer From ToAnn Rosse (A) Registered Nurse Fire Fighter

Vilma Seymour (A) Salon Owner Medical Interpreter

Al Pickett (A) Retail Grocer H.S. Teacher

Brian Lucas (A) Air Traffic Controller E.M.T.

Lynn Dixon (C) Database Management Musician

Susie Cavanaugh (B) Teacher United Way Prog Coord.

Mike McCartan (C) Ad Agency Executive Harbor Master

Alice Williams (B) Computer Programmer

Experience Corps Tutor

Dave Preston (C) English Teacher Motorcycle Club Mgr.

Bill Kurtis (D) Reporter Cattle Rancher

3636A: Wells Fargo 2nd Half Champions; B: Encore Careers; C: Personal Source; D: PBS Retirement Revolution

www.youtube.com/watch?v=agTin2F0JPs&feature=youtube_gdata

www.youtube.com/watch?v=c132deipCeM&feature=channel

http://www.pbs.org/wttw/retirementrevolution/2009/08/04/alice-williams/

https://www.wellsfargoadvisors.com/2hc/second-half-champions.htm

http://www.youtube.com/watch?v=agTin2F0JPs&feature=youtube_gdata

http://www.youtube.com/watch?v=c132deipCeM&feature=channel

http://www.pbs.org/wttw/retirementrevolution/2009/08/04/alice-williams/

https://www.wellsfargoadvisors.com/2hc/second-half-champions.htm

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 April, 2011 373737A: MetLife; B: Sloan Center, Boston College; C: AARP Top 50 Employers

ResourcesCivic 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 workThe 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)


http://www.civicventures.org/

http://www.shiftonline.org/

http://www.bc.edu/research/agingandwork/

http://www.gwdc.org/committees/older_workers_workgroup/

http://www.iseek.org/

http://www.metlife.com/mmi/

http://foundation.aarp.org/WorkSearch/

http://www.pbs.org/wttw/retirementrevolution/watch/

Rethinking Work Mgs 4 29 11 Final For Slide Share

Health & Medicine

dangergodfrey schaefersapril

old age

middlegodfrey schaefersapril

focusgodfrey schaefersapril

workgodfrey schaefersapril

engagedgodfrey schaefersapril

retirement age

age distribution