Tapping talent aging workforce

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


Changing Demographics

Bringing It

Home:

Workplace

Profile


“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”


Population Workforce

Work Bond

Workforce Trends, 1990 - 2020


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


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.


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.”


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


Corporate Spotlight:


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


New Models of Retirement

Bringing It

Home:

Expanding the

Talent Pool


What does “Retired” look like?


History of Retirement


1900’s 1930’s 1960’s TODAY

Soci

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Act

of

19

35

Sun

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y -

19

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Vo

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

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


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


Spotlight: Lexington, KY


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


Boomer Motivation

Bringing It

Home:

Boomers in a

Multi-generational

Workplace


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


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)


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


Connect Work with Purpose

Spotlight: Armonk, NY


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


Commit to Developing Boomers

• Career Development

• Use Talents & Skills

• Life Long Learning

• Upgrade Skills


Offer Career & Professional Development

Spotlight:


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


Build Strong Multigenerational

Cultures

• Friendly environment

• Relationships

• Respectful culture

• Meaningful teamwork

• Affinity groups for older workers


Strengthen Culture & Social Relationships


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


Shift from “job” to “work”

• Flexible Appointments

• Sabbaticals to recharge

• Contracting

• Consulting

• Downshifting

• Telecommuting

• Part time, seasonal


Flexibility & Work-Life Balance



• Flexible Work Schedules - Compressed work weeks - Flexible hours - Part time work

• Ways to Work - When, where, and how to work


Compensation tied to Work

• Fair Pay over Promotions

• Access to Benefits • Health care

• Retirement

• Choice of Benefits • Elder care assistance


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


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


Value of Older Workers

Bringing It

Home:

Maximizing

Contributions &

Knowledge

Transfer


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


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


Older Worker: Overcoming Myths

Myths

• Not committed

• Less productive

• Unable to learn

new approaches

• Inflexible

• Not vigorous


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


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


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


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?


Finding the Sweet Spot

Bringing It Home:

Win-Win for Employees

& Organizations

Get Ready for Success


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?


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?


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


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)

[email protected]

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

[email protected]


mailto:[email protected]

mailto:[email protected]

Link to Today’s Presentation

on SlideShare

http://www.slideshare.net/TracyGodfrey/

tapping-talent-aging-workforce/


Appendix


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


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)


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/

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


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


Tolbize, “Generational Differences in the Workplace”, 2008