AARP Executive Insights Webinar Series Talent Management for an Age Diverse Workforce

Transcription

1 AARP Executive Insights Webinar Series Talent Management for an Age Diverse Workforce Webcasted on Wednesday, June 23, :00 p.m. to 3:00 p.m. EDT

2 HRCI Credits HR Certification Institute Pre-Approved Program: This Webinar is pre-approved for one strategic credit hour for PHR, SPHR, and GPHR recertification. Program ID information can be obtained sending an to after you finishing reviewing these slides. Be sure to specify the title of this Webinar in your request. AARP 2

3 Learning Objectives Update on the economy impact on the changing demographics of the workplace Q Hiring projections Findings/Implications from the Sloan Center on Aging & Work research study, The Pressures of Talent Management Strategies and industry practices that have been adopted by forward thinking organizations Thought process for implementing an age diverse talent management strategy AARP 3

4 Today s Presenters Deborah Russell Director, Workforce Issues AARP Kathy Lynch Director, Employer Engagement Sloan Center on Aging & Work Boston College Jill Braceland Diversity & Work Life Specialist Mitre Corporation AARP 4

5 Economic Uncertainty Continues Unemployment remains near 27 year high Jobless claims, consumer spending, and home sales weak Budget cuts in European countries Financial Markets are fragile Fed expected to leave Policy unchanged Slight improvement in hiring outlook AARP 5

6 U.S. Workforce Demographic Trends Aging of the U.S. workforce: 76m Baby Boomers Lower birth rates Four generations working side-by-side Workforce 2010 Reversal of retirement trends Concerned about stability High talent among the unemployed AARP 6

7 Talent Pressures, Economic Pressures, Age Pressures Moving from Awareness to Action Wednesday, June 23, 2010 Kathy Lynch Director, Employer Engagement Sloan Center on Aging & Work AARP 7

8 Sloan Center on Aging & Work Founded in 2005: Alfred P. Sloan Foundation Grant Rigorous Research Evidence for Action Quality of Employment Prism of Age

9 Current Areas of Focus Employer Learning Circle 10 Countries 30 Worksites 2010 Data Collection Beyond Age Workshops Age Diversity + Team Innovation = Competitive Edge

10 The Center s Workplace Impact Model

11 Awareness

12 Older Workers are Working Longer Percent of Age Groups in Labor Force Age % 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00% Percent of Population Toosi, M. (2002, May). A Century of Change: The U.S. labor force, Monthly Labor Review May, 125, Bureau of Labor Statistics (BLS). (2010) [Analysis of US Current Population Survey.] Unpublished raw data.

13 Research tells us: 40% of employers anticipate ageing of the workforce will have a negative/very negative impact on their business over the next 3 years. 49.1% 10.1% 1.0% 2.0% 37.8% Very Negative Negative No Impact Positive Very Postive Almost 40% of employers report a sense of age or age/economic pressure. Sweet, S., Pitt-Catsouphes, M., Lynch, K., and Whalley, E. (2009, October) Talent Management Study: The Pressures of Talent Management

14 But still a disconnect: 68% reported not having analyzed their workforce demographics. 77% stated that they have not analyzed the projected retirement rates of their employees. Analyzed projected retirement rates 46.7% 29.8% 18.9% 4.7% Assessed employee career plans 40.0% 37.2% 17.4% 5.4% Anaylzed demographic makeup 28.8% 39.5% 25.1% 6.5% Not at all Developed succession plans 25.7% 38.1% 25.6% 10.6% Limited extent Moderate extent Great extent Assessed skills organization anticipates needing 13.1% 42.7% 33.3% 10.9% Assessed competency sets of employees 10.0% 39.7% 36.0% 14.2% Assessed supervisors' ability to anticipate/plan for staffing needs 12.6% 36.6% 36.6% 14.2% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Sweet, S., Pitt-Catsouphes, M., Lynch, K., and Whalley, E. (2009, October) Talent Management Study: The Pressures of Talent Management

15 Why?

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17 Assess the what!

18 1. What is Age? 2. What is the context of the age impact on your organization?

19 The Prism of Age AGE Chronological Age Generational Age Life Events Age Organizational Age Occupational Age Relative Age Social Age Physical Age

20 What is the context?

21 Pressure Combinations: One in four employers in 2009 reported that age and economic pressures were working in tandem to negatively impact their operations. Employer groups by impact of economic pressures and aging workforce N= % 27.9% 11.9% Age-Economically Pressured Age Pressured Economically Pressured Lower Pressured 36.0% Sweet, S., Pitt-Catsouphes, M., Lynch, K., and Whalley, E. (2009, October) Talent Management Study: The Pressures of Talent Management

22 In your opinion, to what extent does your organization have programs or policies for the engaging of older workers? N=669 Age/Economically Pressured 2% 53% 44% Age Pressured 1% 66% 33% Excessive policies/programs Just the right number of policies/programs Economically Pressured 0% 69% 31% Too few policies/programs Lower Pressured 2% 65% 33% 0% 20% 40% 60% 80% 100% Sweet, S., Pitt-Catsouphes, M., Lynch, K., and Whalley, E. (2009, October) Talent Management Study: The Pressures of Talent Management

23 Approximately what portion of your employees (thinking about both full-time and part-time employees) can do the following? N=644 Transfer to Job With Reduced Pay/Responsibilities 7.8% 5.1% 48.2% 38.9% Take Education Leave 7.5% 7.0% 37.0% 48.6% All/Nearly All Choose Schedule that Varies from Typical 9.8% 14.7% 54.1% 21.4% Most Some None Request Change in Start/Quit Time from Time to Time 11.5% 16.1% 58.5% 13.8% Extended Caregiving Leaves 28.3% 9.0% 40.8% 21.9% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

24 The Age/Economic Pressure Tool

25 Where does your organization fit?

26 How does your organization compare?

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28 What does your quadrant mean? Quadrant B Lower Age, Higher Economic Pressure Identify other organizational strategies impacted by the economy. Consider whether your organization is planning a workforce reduction & look at demographic projections to support this strategy. Has knowledge management been included in discussions? Consider doing a complete criticality assessment. Consider which business areas and positions are most at risk for talent shortages. Identify and target specific risk points that can help you to better allocate resources. Downsizing may offer opportunity to consider traditional staffing and training models. Consider if there are opportunities for employees to re-career within your organization.

29 What does your quadrant mean? Quadrant D Higher Age, Lower Economic Pressure Identify potential partners within HR and organizational development. Consider who else is looking at age demographics. Identify how your organization s age demographics align with your organizational goals. Consider if particular areas or occupations are at high risk; engage partners outside HR.

30 Workforce Planning Strategies by Pressure Group

31 Workforce Planning Strategies by Pressure Group

32 Workforce Planning Strategies by Pressure Group

33 MITRE 3 3 MITRE Talent Management AARP Executive Insight Series June 23, 2010

34 MITRE 3 4 Corporate Mandate Goal 5: Foster a World-Class Workforce We must attract, develop, and retain the best and the brightest people who are passionately committed to serving the public interest.

35 MITRE 3 5 MITRE Constraints National shortage of engineering talent Classified work with Federal government o Must be US Citizen

36 MITRE 3 6 Strategic Development Workforce Development Briefing to Officers May 2010 Initiatives: Assemble internal/external current and historic demographic data to better understand where we ve been, where we are, and where we want to go Execute deep dive analysis into Centers to capture future human capital priorities

37 Steps Taken Interview Officers Defining what we want in the future Analyze current and future demographics MITRE

38 Officer Interview Results Talent needs for future success include: The ability to leverage diversity, especially balancing newer graduates with senior expertise. A culture that fosters innovation, as well as transferring within and across organizational lines. The ability to build consensus across multiple groups. MITRE

39 MITRE 3 9 What we want in the future To place more emphasis on innovation through an integrated and synthesized approach to work and leadership. To never undercut, but increase the flexibility for continuous learning. To foster and leverage the emerging workforce with collaboration and knowledge sharing skills

40 Demographics Average highest-degree level unchanged over 25 years Increasing proportion of staff reaching typical retirement age Attrition among staff of typical retirement age has been stable or declining In 2009, over 50% of our hires were from internal referrals MITRE

41 WORK IN PROGRESS Extend the dialogue to next level of management within the Centers Re-assess recruiting for diversity and younger generation Focus groups for quiet needs Increase STEM activities MITRE

42 WORK IN PROGRESS Embrace diversity of thought Expand mentoring programs, including senior management with high potential personnel Add training in leading diverse and multigenerational teams MITRE

43 Business Case for Mature Workers 69% of mature workers not retired say they will work during retirement Companies may avoid talent crunch if mature workers continue working longer than previous generations for both financial and personal reasons Companies may find themselves competing for the services of older workers, and will need to offer the kind of rewards that 50+ employees want and expect Mature workers are more motivated than others to exceed expectations on the job AARP 43

44 Business Case for Mature Workers Older workers are more motivated to exceed expectations on the job than their younger counterparts High replacement costs equal at least 50% of an individual s salary Cost benefits of avoiding turnover can exceed compensation and benefit costs of older workers AARP 44

45 ADDITIONAL RESOURCES: Download Age/Economic Pressure Map The Sloan Center on Aging & Work will be releasing additional reports this month, including: - Health Care & Social Assistance Sector - Retail Sector - Accommodations & Food Services Sector Additional reports, to be released throughout July 2010, will include the following industry sectors: Construction; Professional, Technical & Scientific Services; Finance & Insurance; Wholesale; and Transportation & Warehousing. To continue the conversation: Kathy Lynch Sloan Center on Aging & Work lynchks@bc.edu For more information on the talent management study and selected findings from our reports, please visit:

46 Talent Management Resources Workforce Assessment Tool A tool to strengthen your ability to recruit and retain talent Workforce Management Training Modules Customizable training you can use to increase the competencies of your staff Employer Resource Center See section on Recruitment National Employer Team A recruiting source targeting experienced talent Visit for these and other resources AARP 46

47 Talent Management Resources AARP SmartBrief E-newsletter update on changing workforce issues and recruiting strategies Online Job Sites A list of job sites that appeal to experienced workers Recruiting Practices: 2008 AARP Best Employers for Workers Over 50 Article summarizing the winning recruiting strategies est_employers.html AARP 47