SHRM Survey Findings: The Aging Workforce Basic and Applied Skills. Funded by the Alfred P. Sloan Foundation

Transcription

1 SHRM Survey Findings: The Aging Workforce Basic and Applied Skills Funded by the Alfred P. Sloan Foundation January 12, 2015

2 Introduction and Definition Introduction SHRM and the SHRM Foundation have launched a national initiative highlighting the value of older workers and identifying through original research the best practices for employing an aging workforce. This three-year initiative is generously underwritten by a grant from the Alfred P. Sloan Foundation. The purpose of this research is to: Investigate the current demographics of organizations and their views on how the demographic breakdown of their workforces is likely to change in the future in both their organizations and industries. Determine what, if any, actions organizations are taking to prepare for an aging workforce, including recruiting and retention strategies to specifically target older workers. Identify the skills and experience HR professionals most value in older workers. The Aging Workforce Basic and Applied Skills SHRM

3 Introduction and Definition (continued) The following topics are included in the three-part series titled 2014 Older Workers Survey: Part 1: State of Older Workers in U.S. Organizations Part 2: Recruitment and Retention Part 3: Basic and Applied Skills Definition For the purpose of this survey, older workers were defined as employees age 55 or older. The Aging Workforce Basic and Applied Skills SHRM

4 Key Findings Top three advantages of older workers: HR professionals indicated the top three advantages of older workers compared with other workers were: More work experience (i.e., more knowledge or skills) 77%. More mature/professional 71%. Stronger work ethic 70%. Top three strongest basic skills held by older workers: HR professionals indicated the top three strongest basic skills held by older workers compared with other workers were: Writing in English (grammar, spelling, etc.) 45%. Reading comprehension (in English) 20%. English language (spoken) 20%. The Aging Workforce Basic and Applied Skills SHRM

5 Key Findings (continued) Top three strongest applied skills held by older workers: HR professionals indicated the top three strongest applied skills held by older workers compared with other workers were: Professionalism/work ethic 58%. Critical thinking/problem-solving 28%. Lifelong learning/self-direction 23%. Steps taken to prepare for potential skills gaps resulting from the loss of older workers: Responding organizations indicated the top two steps taken to prepare for potential skills gaps included: Increased training or cross-training efforts 42%. Succession plan development 33%. One-third (34%) of responding organizations indicated their organization had not taken any steps to prepare for potential skills gaps as a result of the loss of older workers. The Aging Workforce Basic and Applied Skills SHRM

6 Key Findings (continued) Of responding organizations that indicated they had taken a specific step(s) to prepare for potential skills gaps as a result of the loss of older workers, about one-half (47%) indicated that offering flexible work arrangements to attract a broader range of applicants (e.g., job sharing, telework) was very effective. One-third indicated increasing automated processes (e.g., use of robotics), increasing training and cross-training efforts, and creating new roles within the organization, specifically designed to bridge a skills or knowledge gap, were very effective (37%, 33% and 31%, respectively). More than one-half (54%) of responding organizations indicated their organization has implemented training or cross-training programs to transfer knowledge from older workers to younger workers; onethird (33%) implemented mentoring programs, and one-quarter (26%) implemented job shadowing. The vast majority of HR professionals indicated employees in their organization are receptive to working with older workers (92%), learning from older workers (91%) and being mentored by older workers (86%) to some or a great extent. The Aging Workforce Basic and Applied Skills SHRM

7 Implications for HR Although 42% of responding organizations indicated they are increasing training or cross-training efforts to address potential skills gaps resulting from the loss of older workers, data from a 2014 SHRM employee benefits survey indicate that many training and development benefits are in decline. This disconnect could lead to problems with skills shortages in the years ahead. HR professionals will need to make the case to their organizational leaders that preparing for an aging workforce is a priority; one-third of organizations had not taken any steps to prepare for potential skills gaps. Employers identified several key advantages older workers bring to their jobs more experience, maturity, a stronger work ethic and reliability creating a strong incentive for companies to attract and retain older workers. Older workers seem to be particularly prized by employers for their English language and communication skills, especially writing in English, reading comprehension and spoken English. Fields where communication is central may therefore be the most focused on recruiting and retaining older workers. Professionalism and work ethic are the applied skills most associated with older workers compared with other age groups. Acting as mentors may be one way organizations ask older workers to pass on these skills to the generations that follow. The Aging Workforce Basic and Applied Skills SHRM

8 Implications for HR (continued) Many of the steps organizations are taking to prepare for an aging workforce will appeal to workers of all ages, such as offering flexible work arrangements, increasing training and cross-training efforts and creating new roles within the organization, specifically designed to bridge skills or knowledge gaps. Implementing training or cross-training programs to transfer knowledge from older workers to younger workers and mentoring programs may become increasingly popular forms of knowledge transfer. The Aging Workforce Basic and Applied Skills SHRM

9 Main Advantages of Older Workers Compared with Other Workers* Main Advantages Percentage More work experience (i.e., more knowledge or skills) 77% More mature/professional 71% Stronger work ethic 70% Ability to serve as mentors for younger workers 63% More reliable 59% More loyalty 52% Lower turnover 52% Tacit knowledge (knowledge that is not easily recorded or disseminated) 51% Commitment/engagement 51% Stronger applied skills (critical thinking/problem-solving, professionalism) 48% Institutional knowledge of long-term workers at your organization 47% Established networks of contacts and clients 39% Add to diversity of thought/approach to team projects 38% Stronger basic skills (reading comprehension, writing, math) 31% More productive 23% Other 1% None There are no advantages 1% Note: n = 1,736. Percentages do not equal 100% due to multiple response options. * Survey question was worded as follows: In your professional opinion, what are the main advantages workers age 55 and older bring to your organization compared with other workers? (Check all that apply) The Aging Workforce Basic and Applied Skills SHRM

10 Strongest Basic Skills Held by Workers Age 55 and Older Compared with Other Workers* Writing in English (grammar, spelling, etc.) 45% Reading comprehension (in English) English language (spoken) 20% 20% Mathematics (computation) Government/economics Technical (computer, engineering, mechanical, etc.) 13% 13% 13% History/geography 8% Science Humanities/arts Foreign languages Other 3% 3% 0% 6% Note: n = 1,736. Percentages do not sum to 100% due to multiple response options. * Survey question was worded as follows: In your professional opinion, what are the strongest basic skills held by workers age 55 and older compared with other workers? (Check the top two choices) The Aging Workforce Basic and Applied Skills SHRM

11 Strongest Applied Skills Held by Workers Age 55 and Older Compared with Other Workers* Professionalism/work ethic Critical thinking/problem-solving Lifelong learning/self-direction Leadership Ethics/social responsibility Written communications Add diversity to thought/approach to team projects Teamwork/collaboration Oral communications Information technology application Creativity/innovation Other 1% 1% 1% 10% 9% 8% 5% 28% 23% 21% 19% 58% Note: n = 1,736. Percentages do not equal 100% due to multiple response options. * Survey question was worded as follows: In your professional opinion, what are the strongest applied skills held by workers age 55 and older compared with other workers? (Check the top two choices) The Aging Workforce Basic and Applied Skills SHRM

12 Steps Taken to Prepare for Potential Skills Gaps as a Result of the Loss of Older Workers Increased training and cross-training efforts 42% Developed succession plans 33% Developed processes to capture institutional memory/organizational knowledge Increased recruiting efforts to replace retiring employees Created new roles within organization, specifically designed to bridge a skills or knowledge gap Offered flexible work arrangements to attract a broader range of applicants (e.g., job sharing, telework) 17% 15% 15% 13% Increased automated processes (e.g., use of robotics) 7% Other 2% None; no steps taken 34% Note: n = 1,731. Percentages do not equal 100% due to multiple response options. The Aging Workforce Basic and Applied Skills SHRM

13 Effectiveness of Steps Taken to Prepare for Potential Skills Gaps as a Result of the Loss of Older Workers Offered flexible work arrangements to attract a broader range of applicants (e.g., job sharing, telework) 47% 51% 3% n = 202 Increased automated processes (e.g., use of robotics) 37% 60% 3% n = 106 Increased training and cross-training efforts 33% 67% 1% n = 594 Created new roles within the organization, specifically designed to bridge a skills or knowledge gap 31% 67% 2% n = 198 Developed succession plans 23% 73% 5% n = 405 Developed processes to capture institutional memory/ knowledge from those close to retirement 19% 79% 2% n = 232 Increased recruiting efforts to replace retiring employees 16% 81% 2% n = 207 Very effective Somewhat effective Not at all effective Note: Only respondents who indicated their organization has taken a specific step(s) to prepare for potential skills gaps as a result of the loss of older workers were asked to evaluate the step(s) taken. Response options (i.e., steps taken) with n < 30 are not reportable (NR). Respondents who indicated Too soon to evaluate were excluded from this analysis. The Aging Workforce Basic and Applied Skills SHRM

14 Strategies Used to Transfer Knowledge from Older Workers to Younger Workers Training and/or cross-training programs 54% Mentoring programs 33% Job shadowing 26% Organizing multigenerational work teams 17% Development of a knowledge database Development of skill transition plans to facilitate transfer of knowledge from older workers to younger workers 14% 14% Apprenticeship programs 8% N/A; organization does not use any strategies to transfer knowledge from older workers to younger workers 19% Note: n = 1,729. Percentages do not equal 100% due to multiple response options. The Aging Workforce Basic and Applied Skills SHRM

15 Extent to Which Employees in the Organization Are Receptive to... Working with older workers 53% 39% 7% 1% Learning from older workers 47% 44% 7% 2% Being mentored by older workers 43% 43% 11% 2% To a great extent To some extent To a small extent Not at all Note: n = 1,698-1,709. Percentages may not equal 100% due to rounding. The Aging Workforce Basic and Applied Skills SHRM

16 Demographics The Aging Workforce Basic and Applied Skills SHRM

17 Demographics: Organization Industry Percentage Professional, scientific, technical and information services 21% Manufacturing 20% Government agencies 17% Health care and social assistance 10% Retail and wholesale trade, and accommodation and food services 10% Educational services 8% Real estate and leasing, and finance and insurance 8% Transportation and warehousing 6% Construction 5% Administrative and support, and waste management and remediation services 4% Utilities 4% Note: n = 1,784. Percentages do not equal 100% due to multiple response options. The Aging Workforce Basic and Applied Skills SHRM

18 Demographics: Organization Industry (continued) Percentage Arts, entertainment and recreation 3% Mining, quarrying, and oil and gas extraction 3% Religious, grant-making, civic, professional and similar organizations 3% Repair and maintenance 3% Agriculture, forestry, fishing and hunting 2% Personal and laundry services 1% Other industry 10% Note: n = 1,784. Percentages do not equal 100% due to multiple response options. The Aging Workforce Basic and Applied Skills SHRM

19 Demographics: Organization Sector Publicly owned for-profit 15% Privately owned for-profit 49% Nonprofit organization 17% Government agency 17% Other 2% Note: n = 1,696 The Aging Workforce Basic and Applied Skills SHRM

20 Demographics: Organization Staff Size 1 to 99 employees 16% 100 to 499 employees 35% 500 to 2,499 employees 24% 2,500 to 24,999 employees 20% 25,000 or more employees 6% Note: n = 1,011. Percentages do not equal 100% due to rounding. The Aging Workforce Basic and Applied Skills SHRM

21 Demographics: Other Does your organization have U.S.-based operations (business units) only, or does it operate multinationally? U.S.-based operations only 77% Multinational operations 23% n = 1,717 What is the HR department/function for which you responded throughout this survey? Is your organization a single-unit organization or a multi-unit organization? Single-unit organization: An organization in which the location and the organization are one and the same. Multi-unit organization: An organization that has more than one location. n = 1,722 39% 61% For multi-unit organizations, are HR policies and practices determined by the multi-unit headquarters, by each work location or by both? Corporate (companywide) 69% Business unit/division 15% Facility/location 16% n = 1,101 Multi-unit headquarters determines HR policies and practices Each work location determines HR policies and practices A combination of both the work location and the multi-unit headquarters determines HR policies and practices n = 1,102 53% 4% 43% The Aging Workforce Basic and Applied Skills SHRM

22 SHRM Survey Findings: 2014 Older Workers Survey Basic and Applied Skills Funded by the Alfred P. Sloan Foundation Survey Methodology Response rate = 9.9% 1,913 HR professionals from a randomly selected sample of SHRM s membership participated in this survey Margin of error +/-2% Survey fielded May-July 2014 The Aging Workforce Basic and Applied Skills SHRM

23 About SHRM Research For more survey/poll findings, visit shrm.org/surveys For more information about SHRM s Customized Research Services, visit shrm.org/customizedresearch Follow us on Project lead: Karen Wessels, researcher, SHRM Research Project contributors: Evren Esen, SPHR, director, Survey Programs, SHRM Research Jennifer Schramm, GPHR, manager, Workforce Trends and Forecasting, SHRM Research Yan Dong, intern, SHRM Research Copy editor: Katya Scanlan, SHRM Knowledge Center The Aging Workforce Basic and Applied Skills SHRM

24 About SHRM Founded in 1948, the Society for Human Resource Management (SHRM) is the world s largest HR membership organization devoted to human resource management. Representing more than 275,000 members in over 160 countries, the Society is the leading provider of resources to serve the needs of HR professionals and advance the professional practice of human resource management. SHRM has more than 575 affiliated chapters within the United States and subsidiary offices in China, India and United Arab Emirates. Visit us at shrm.org. The Aging Workforce Basic and Applied Skills SHRM

25 About the Sloan Foundation The Alfred P. Sloan Foundation believes that a carefully reasoned and systematic understanding of the forces of nature and society, when applied inventively and wisely, can lead to a better world for all. The Foundation makes grants to support original research and broad-based education related to science, technology, and economic performance; and to improve the quality of American life. Though founded in 1934 by Alfred P. Sloan Jr., then-president and CEO of General Motors, the Foundation is an independent entity and has no formal relationship with the General Motors Corporation. The Foundation is unique in its focus on science, technology, and economic institutions. It believes the scholars and practitioners who work in these fields are chief drivers of the nation s health and prosperity. In each grant program, the Foundation seeks proposals for original projects led by outstanding individuals or teams. The Aging Workforce Basic and Applied Skills SHRM