What future for 50+ workers? Business as usual? Sagacious human capital? War for talent? How can you succeed with 50+ workers? John B. Mahaffie Leading Futurists LLC [email protected]Dr. Katherine LY Green Green Consulting Group LLC [email protected]
An introduction and resource guide for HR staff and organizations to use in exploring, anticipating and tailoring talent management strategies to leverage strengths of an aging workforce.
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This guide offers you a perspective on, and tools for exploring impacts of the 50+ workforce. The guide will help you discover what the aging workforce could mean to your organization and when it will matter. We offer three scenarios for 2020, tools and insights you can use to have a clearer understanding of your strategic options for success now and in the future.
We urge you to explore this topic with an open mind. Be ambitious, and be ready to get out of your comfort zone and get some new thinking going.
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Throughout this guide, you will see the bar above at the top of each page. It is a quick-view table of contents for the guide. The white part of the bar shows where you are in your progress through the guide.
In the struggle for survival, the fittest win out at the expense of their rivals because they succeed in adapting themselves best to their environment.
--Charles Darwin
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The aging workforce: An emerging issue and opportunity
The workforces in North America, Europe, Japan, and elsewhere are aging rapidly. Employers and employees have yet to come to grips with what these changes mean. Workforce expectations and practices are typically based on past realities and past ideas that don’t match the emerging reality. They need to be updated.
The trend will only intensify. More people will live to older ages, and most retirement planning is inadequate to pay for it. The strain on younger workers to support older people is high and rising. More older people will be at work beyond the traditional retirement age, perhaps into their 70s and beyond. Some will want to be working, and many will have to, for financial reasons. Productive aging, in all its manifestations, gives hope that life after 50 is worth harnessing for social and cultural good.
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What if you don’t do anything?Lack of foresight comes at a cost. What is your organization going to do when:
A significant percent of your core workforce retires early – without warning – when federal entitlement programs are part of the deficit reduction plan?
The leadership pipeline, underfunded for years, doesn’t produce savvy leaders who can triumph during difficult economic times?
New business opportunities require expertise gained only through extensive experience?
Clients request that workers are “plug and play” - no on-the-job training for new recruits at the client’s expense?
Contract renewals stipulate that certain workers, or the skill equivalent, are required but those same workers want flexible work arrangements in order to stay?
HR is over budget, retention rates are low for young upwardly mobile workers, recruitment costs are high, hiring bonuses are limited to executives, and key jobs need to be filled
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The Big Question: How do you change today to ensure a future you want for tomorrow?
How do you change
successful organizations’
human capital strategies;
which, if they continue to
use today, will destine them
to unproductive, low-skilled
or workforce shortages in
the future?
What, how, and so what?
• What - create the business necessity for a new view of and different ways to engage the 50+ worker
• How – by using a variety of foresight tools, enabling a thoughtful examination among key stakeholders, and asking the right questions to surface the challenges and opportunities
• So What - you and your organization can anticipate an emerging future, take actions that will facilitate a preferred future, adjust human capital practices to shifting realities, build age-savvy work cultures, and orient the business to harness the opportunities while mitigating the risks of an aging workforce
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50+@Work is not advocating for hiring 50+ workers as a social program
Older workers are a source of talent and experience in a labor market where those things can be in short supply
It is good for people 50+ to be a valued part of the workforce
They have a combination of economic needs to work, and the desire to be engaged, valued, active, and interested
Organizations, and the people who lead them, would benefit from a clear examination of possible futures with a focus on the 50+ workforce
Organizations’ ongoing success will necessitate updating work culture norms to better assimilate and leverage capacities of an aging workforce and 50+ talent
Green Consulting Group LLC and Leading Futurists LLC offer consulting, workshops, and research and analysis to help organization tailor their work and workforce strategies to the emerging reality of workforce aging
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Use foresight to navigate the crossroads when aging workforce issues and opportunities come to a head:
• Facilitate deep thinking among key stakeholders of the inherent opportunities and potential risks poised by an aging workforce
• Assess the business effects of an aging workforce on your organization’s viability and profitability in the short- and long-term
• Create compelling business reasons to adapt human capital practices, policies and working conditions to an age-diverse workforce
• Customize your organization’s response in recruitment, retention, training or separation practices based on your unique challenges, resources and business plan
• Create a talent portfolio with a balanced blend of emerging and experienced skills, knowledge and social networks to fulfill your organization’s strategy
• Create work and work cultures favored by experienced talent with high value-added skills and marketable expertise
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Introduction to scenariosScenarios are groups of stories about at time in the future
Scenarios encourage a wider, more
variable look atalternatives with
multiple outcomes
Planners may be focused on single outcomes; thinking within traditional and
narrow boundaries
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FUTURE
Scenario
Scenario
ScenarioScenario
Using scenarios helps us make sure not to plan around a single outcome—we can’t really predict the future, so we need to be prepared for a range of possibilities
Three Scenarios for the 50+ WorkforceThree scenarios offer contrasting views of what’s possible for the 50+ workforce over the next 10 years:
1. Business as Usual 2020 -- Employers change little in how they approach the 50+ workforce
2. War for Talent 2020 -- While not embracing the 50+ workforce overall, employers compete to hire the most talented older workers
3. Sagacious Human Capital 2020 -- Employers and society have changed their attitudes about older workers, embracing their skills, knowledge, and wisdom
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Scenario 1: Business as Usual 2020Employers change little in how they approach the 50+ workforce
The 2020 Story
Average unemployment rate for older US workers 23% vs. 7.3% for workers under 55
Yet more of the 50+ are underemployed, and working at lower incomes than they did before
More 50+ workers in programs for retraining, exploring job options
More 50+ workers want to and/or must work, especially as people live longer in good health
Continued hiring discrimination, longer gaps between employment, lack of career advancing opportunities, reduced salaries upon finding a job, minimal training and re-training opportunities
More older workers are opting to retire to take advantage of entitlements before they change
Rising entrepreneurship for the 50+ reflects a desire to keep working, earning, and being active
Policymakers have been unable to foster much change in employer attitudes.
With “Business as Usual” older workers often have marginal roles, not using their true talents
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Scenario 2: War for Talent 2020While not embracing the 50+ workforce overall, employers compete to hire the most talented older workers
The 2020 Story
Human asset professionals recognize that there is a war for talent in the employment marketplace
The war for talent means employers compete to attract and keep a cadre of top talent that is 50 and older
This war is an expensive, no-holds-barred struggle to get and keep the high performers, companies willing to pay for that talent win
Organizations customize recruitment and retention strategies for high performers in the 50+ age group
Employers’ priority had been mainly retaining only select workers beyond the typical retirement age
It’s not unusual any more for employers to hire someone who is 60 or 65 years old. But they are highly desirable talent—expensive free agents who have a lot of options in the marketplace
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In the “War for Talent,” the most talented of any age are sought after
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Scenario 3: Sagacious Human Capital 2020Employers and society have changed their attitudes about older workers, embracing their skills, knowledge, and wisdom
A 2020 Story
Older workers are a substantial and growing share of the workforce in the US
Cutting-edge employers recognize older workers as a strategic asset and even compete with employers overseas for talent
One out of every five workers in the US labor force is aged 55+
New performance metrics help account for the value of knowledge/wisdom, judgment, creativity, and problem solving
Older workers raise some costs, but employers can get the costs back in revenue growth, customer retention, and productivity
Employers’ motivation has been recapturing and using talent that just a few years ago was pushed out
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Organizational strength comes from having all generations valued and engaged in the workforce
Identify your rationale – Why your organization needs to change its strategy with and for the 50+ workforce
Explore the issue – Fit this thinking to your situation. Collect ideas about the 50+ workforce, apply to your organization’s human capital strategies, assess impact on the organization, anticipate how conditions may change
Envision your success – Decide where you should go, and want to go in the next 10 years: What should your 50+ workforce strategy be? How will an age-balanced talent portfolio support strategic success?
Plan – With your vision in hand, identify the key strategic moves and particular actions you can take now, and going forward, to reach success
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Explore the issueThe Futures Wheel:Looking for impacts in our organization
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How to Use: Print a copy of this page, or start a Futures Wheel on a notepad or whiteboard. Start with an initial idea, in the middle, and think about its implications (inner ring). Then consider the implications of the inner ring ideas.
Continue to fill in outer circles to gain a deeper understanding of the issue.
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WORKSHEET: The Futures Implications Matrix Issue, trend:NursingWorkforce Now In the next 10 years
Challenges •Middle-aged and aging workforce•Growing difficulty with labor intensive aspects of jobs•Many want to retire•Skilled nursing care shortage
•Younger, less skilled workforce•Larger workforce due to expected growth in health care sector•Different skill needs for nursing care with an older, more ethnically diverse client base• Skilled care likely to occur in non-traditional settings
Opportunities •Make job accommodations to reduce impact of heavy lifting with lifting teams and technical changes to beds•Offer retention bonus to keep some staff on the job•Use veteran nurses as mentors for new hires
•Time to train and develop broader nursing skill set•Utilize alternative delivery systems for health care: community-based para-nurses, mobile medical centers, telemedicine•Use retirees as temps when care needs cycle high
Explore the issueThe futures implications matrix--Example
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What’s it for? Expand thinking into the future, fosters open views of opportunities, encourages connections between current and future state, demonstrates that many things change over time rather than remain constant
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How to Use: Print this page, or draw a matrix for yourself. Select an idea, issue or trend. Consider current challenges and opportunities assuming conditions of today (both positive and negative)
Then look ten years out –What challenges and opportunities may be present? Include those that continued from the prior 10 years, and those that didn’t exist but could emerge in the next ten.
• Age-neutral hiring• Diversity training• Job-sharing• Language use policies
1995 2000 2005 2010 2015 2020 2025
Getting serious
• Ending mandatory retirement• Age-blind hiring• Active recruitment of 50+, 60+• Enter the war for talent
Big Systems
• Transforming retirement finances• Society changes its views of aging and
worklife• Productive aging engages people 70+
Envision your success• How high can you aim?• Can you get beyond the
low-hanging fruit?
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What’s it for?This diagram shows how some actions are smaller, and tactical, some more serious, and impactful. It makes the point, real change means getting beyond the low-hanging fruit
In your organization, what are examples of “low-hanging fruit” (easy-to-implement) actions you have taken or could take for greater success with the 50+ workforce? Try to identify at least three.
Example: Include pictures of workers over age 50 in marketing materials.
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PlanBuilding a base for your success: Key pillars of your strategy
How to use
Identify 3 or 4 areas you can work on that will make a difference. E.g. training, organizational culture, workforce development, human capital strategy, retention policies
Each pillar should be supported by actions you can take now and soon to build towards your goals, and achieve your vision.
Pillar:______________________
___________________________
Pillar:______________________
___________________________
Pillar:______________________
___________________________
Pillar:______________________
___________________________
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Reaching your goals over the next ten years or so means developing plans and action around some key strategies. Those “pillars” of your overall strategy are the critical support on which you can build a strong program and achieve success.
•Benchmark other organizations’ training programs•Train younger managers how to work effectively with older workers•Interview 50+ staff to assess needs
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What’s it for?This is where you get specific about how you would build and use the Pillars of Success you have identified
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Why we need to do things differently:____________________________________________________________________________________________________________
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What’s it for?For an at-a-glance view of your thinking a visual tool for sharing ideas with others
How to useBring together a summary statement of your vision, your pillars of success, and a clarifying statement of why it’s critical to do things differently in this diagram
Workshops – Exploring the Future of the 50+ Workforce ( .5, 1 or 2 days) –facilitated workshop with key stakeholders to collectively explore impacts of an aging workforce, formulate visions of choice for a desired future, craft strategy to address work, work practices and culture barriers to achieve preferred future
Consulting – range of consulting services including foresight work sessions, futures research and analysis, organization culture surveys, change management consulting, collaborating with HR/OD function to identify appropriate responses to specific, unique human capital challenges of an aging workforce
Training Programs
Intergenerational Teaming
Leading a Multi-Generational Workforce
Mentoring as if Knowledge Mattered
Speaking Engagements – Plenary Keynotes, Retreats, Board Meetings, Professional and Civic Meetings, Conferences, Educational Sessions
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What others are doingA starter list British Telecom recruits a diverse
workforce to reflect their customer base; workers 50+ have access to training, can choose to step down to jobs with less responsibility and lower stress including part-time, and can return, post retirement, temporarily to help out during peak work times
New York Teaching Fellows offers a 7-week training program to enable older workers to switch careers to teaching in an urban setting; once teaching, the Fellows receive additional support to complete their teaching education by earning a master’s degree
SelectMind’s is a provider of corporate networking solutions to keep retirees connected to their prior employers for purposes of mentoring, part-time work, consulting, training or acting as a resource
Dow Safety and Industrial Hygiene tracked workers’ musculoskeletal disorders, tasked a multidisciplinary team to identify a standardized process for identifying and prioritizing key risk factors for injuries and illnesses
Center for Creative Leadership surveyed 3200 workers across four generations about work; they share similar values though express them differently, want respect, value integrity and want opportunities for learning
LL Bean, known for its exemplary service, expands its workforce from 1,500 to 6,000 during peak season relying heavily on older workers because they understand what outstanding customer service means.
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Why We Are a Good Fit and ChoiceLeading Futurists LLC
Dr. Katherine Green started Green Consulting Group LLC as a leadership, change management and aging workforce consultancy in 1999.
In prior work, she held influential HR positions internally and as a consultant in various sectors: finance, transportation, technology, non-profit and Capitol Hill. Her interest in aging workforce issues began as a dissertation, broadened into research and publications for the International Labour Office on employment best practices for older workers, and evolved into years of speaking engagements in Japan, UK and US to professional, civic and business audiences.
This new, exciting phase of work is strategic consulting on the 50+workforce: scenario exploration, staff training, management development, change consulting, leadership and human capital strategy.
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Green Consulting Group LLC
John B. Mahaffie is co-founder and partner in Leading Futurists LLC, a consultancy that helps organizations explore the challenges and opportunities they face as society, technology, and the world change.
John has worked as a futurist since 1987, giving keynote talks, researching and analyzing issues and trends, building scenarios, consulting, and authoring books and articles on the future.
John co-authored Future Work: Seven Critical Forces Shaping Work and the Work Force in North America, Jossey Bass, 1990, and numerous reports and articles on the future of work and worklife.
John’s mission, through his work, is to help people think differently, and face the future, prepared.
Background and references This guide is the result of a multi-year
collaborative effort between John Mahaffie and Jennifer Jarratt, Leading Futurists LLC, and Dr. Katherine Green, Green Consulting Group LLC.
The collaboration included educating business leaders, in eight US cities, about the benefits of and possible strategies to engage the 50+ workforce
The subject of the 50+ workforce is significant and compelling. Our two companies bring substantial, long-term experience with the topic from our respective disciplines. We speak, consult, conduct research and publish on the issues and implications of a 50+ workforce from many angles. Separately, and together, we enable organizational leaders and their staff to anticipate, plan and execute fitting and appropriate change
Leading Futurists LLC contributes expertise in foresight, futures, trends analysis, and workplace issues. Green Consulting Group LLC specializes in the interplay of human capital, organizational performance and change leadership. The aging workforce has been a professional interest for over two decades
A few other sources provided content for this guide:
Cappelli, Peter, and Bill Novelli, Managing the Older Worker: How to Prepare for The New Organizational Order, Boston: Harvard Business School Press, 2010.
Critchley, Robert K., Doing Nothing Is Not An Option: Facing the Imminent Labor Crises, Ohio: Thomson Publishing, 2004.
Hedge, Jerry, Walter C. Borman, and Steven E. Lammlein, The Aging Workforce: Realities, Myths, and Implications for Organizations, Washington, DC: American Psychological Association, 2006.
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