Program Overview I. Introduction to the Multigenerational Workforce From Gray Hair to Flip Flops: Section Is your Divider Total Rewards Title Goes Strategy Here Generational Friendly? Daniel Margolis, MBA PHR Senior Human Resources Consultant II. Workforce Challenges III. Generational Characteristics and Preferences IV. How to Optimize your Total Rewards Strategy V. Summing It Up From Gray Hair to Flip Flops 0 From Gray Hair to Flip Flops From Gray 1 Hair to Flip Flops 1 Multi Generational Workforce More Gen Xers than Millennials have a tattoo? Born 1946-1964 Born 1965-1980 Born Before 1945 Born after 1980 From Gray Hair to Flip Flops 2 From Gray Hair to Flip Flops 3 More Gen Xers than Millennials have a tattoo? While both generations are heavily inked, 40 percent of Gen Xers have tattoos compared to about 36 percent of Millennials. With that said, about 18 percent of Millennials have six or more tats Baby boomers don t embrace technology From Gray Hair to Flip Flops 4 From Gray Hair to Flip Flops 5 1
Baby boomers don t embrace technology Having a successful career is more important to Millennials than being a good parent. Boomers actually represent one third of the 195.3 million internet users in the U.S. In 2012, Baby Boomers spent 27 hours online per week, which is two hours more than the Millennial demographic. Boomers use the internet to access weather and news, shopping, etc. Boomers also have a large presence in online dating services, and enjoy watching videos for entertainment and relaxation. Source: Immersion Active Study of Mature Consumers From Gray Hair to Flip Flops 6 From Gray Hair to Flip Flops 7 Having a successful career is more important to Millennials than being a good parent Millennials are lazy Parenting well ranks tops with Millennialls, with 52 percent saying it's the most important thing in life. They value parenthood (far more than marriage). For the generation under age 35, nearly half of all births are outside marriage. From Gray Hair to Flip Flops 8 From Gray Hair to Flip Flops 9 Millennials are lazy Generation Y believes strongly in job fulfilment, and expect a healthy work-life balance. They actually have a strong work ethic just not in a 9-5 sort of way following a mantra of working smarter, not harder. They are able to work incredibly hard when they are motivated to do so. Intense focus, long hours, across a range of task domains. Traditionalists don t enjoy flexible arrangements From Gray Hair to Flip Flops 10 From Gray Hair to Flip Flops 11 2
Traditionalists don t enjoy flexible arrangements. Like other generations, Traditionalists believes strongly in job fulfilment, and expect a healthy work-life balance. They enjoy flexible arrangements so they can work on their own schedule. WORKFORCE CHALLENGES From Gray Hair to Flip Flops 12 From Gray Hair to Flip Flops 13 Generations in the Workplace Generations in the Workplace Let s hear directly from the Generations what they think! https://vimeo.com/143007189 From Gray Hair to Flip Flops 14 From Gray Hair to Flip Flops 15 Five Generations in the Workplace By 2020, projections indicate those over 55 years of age will represent only 25.2% of the workforce 25.2% Strategic Workforce Planning Analysis 70% Percentage of Organizations That Have Conducted Strategic Workforce Planning to... 60% 58% 52% 50% 44% 40% 39% 35% 31% 30% 20% 21% 20% 10% 17% 0% Identify Workforce Identify Potential Skill Analyze Effects of Age Needs Gaps 50+ Workers Leaving 1-2 years 3-5 years 6-10 years Source: Executive Summary: Preparing for an Aging Workforce (SHRM, 2014) From Gray Hair to Flip Flops 16 From Gray Hair to Flip Flops 17 3
Baby Boomer Exodus Even though many Baby Boomers have delayed retirement, many are beginning to leave the workforce and are taking their knowledge and expertise with them leaving a gap that can only be filled by Millennials. Changing Demographics From Gray Hair to Flip Flops 18 From Gray Hair to Flip Flops 19 Employee Engagement Among Generations Awareness and Understanding 60% 50% 40% 30% 20% 10% 0% 44% 41% 15% 26% 50% 23% 53% 53% 33% 28% 19% 14% State of the Global Workplace Engaged Not Engaged Actively Disengaged Understand that generational balance of your workforce is shifting. Recognize distinct characteristics of each generation. Learn that different strategies are needed to engage, motivate and retain. Understand needs and desires of Millennials they are the future. Educate the masses. Consider an annual workshop on generational awareness, especially for individuals that work as a team. When employees are able to appreciate generational characteristics they and/or their teammates possess, they are better equipped to work effectively together. Source: Gallup, The State of the American Workplace; Employee Engagement Insights for U.S. Business Leaders, 2013 From Gray Hair to Flip Flops 20 From Gray Hair to Flip Flops 21 The Workforce Today and in the Future GENERATIONAL CHARACTERISTICS AND PREFERENCES From Gray Hair to Flip Flops 22 From Gray Hair to Flip Flops 23 4
HOW TO OPTIMIZE YOUR TOTAL REWARDS STRATEGY From Gray Hair to Flip Flops 24 From Gray Hair to Flip Flops 25 Analyze your Total Rewards/Employee Value Proposition through a Generational Lens Benefits Health Retirement Paid Time Off Career Development Training Performance Management Employee Value Proposition Culture Values/Beliefs Reputation Leadership Recognition Generational Reward Preferences What do different generations identify as priorities? Reward/Perk Priorities Traditionals Baby Boomers Gen Xers Millennials Phased Retirement Recognition of long tenure and loyalty to the organization Paid Time Off Work redesign Financial Planning and Education Recognition of long tenure and loyalty to the organization Wellness Initiatives Community Volunteer Programs Career Growth Flexible Work Arrangements Freedom/autonomy related to work and not being micro-managed Diversity/Inclusion Initiatives Access to information networks Participative, casual work culture Training challenges Development opportunities Recognition/praise Access to and integration of new technology Pay Base Variable Premium Work Environment Autonomy Challenge Flexibility Source: WorldatWork - Rewarding a Multi-Generational Workforce From Gray Hair to Flip Flops 26 From Gray Hair to Flip Flops 27 1. Talent Management Create a Talent Pipeline Why is this so important? Assure business continuity Prepare for business growth/expansion Address projected talent shortages Address change effectively Reduce financial and operational cost for external recruitment Manage diversity through systematic development of women and minorities Retain institutional knowledge Talent Management Succession Planning Anticipates talent requirements and fosters ongoing development of high-potential employees Applies at all levels of the organization- not exclusively to senior management Provides employees insight, awareness and experience to make meaningful contributions to the organization Structured training provides knowledge and skills necessary for success and career advancement Aligns with performance management processes to ensure ongoing development From Gray Hair to Flip Flops 28 From Gray Hair to Flip Flops 29 5
Key Components of Succession Management Determine Organizational Needs Questions to ask yourself: 1. Assessing organizational needs 2. Identifying & assessing top talent What roles are critical to the organization? How far should succession planning reach? 4. Measure success 3. Developing talent What competencies are needed for the future? What gaps exist between current and future talent demand and supply? From Gray Hair to Flip Flops 30 From Gray Hair to Flip Flops 31 Identify Positions Based on Impact and Retention Outlook Critical positions significantly affect key performance measures and are critically important to the business strategy Identify Key Competencies and Skills Develop strategies to assess and provide these skills Company s Core Values Innovation Caring Excellence Accountability Integrity Team Work Leadership Core Competencies Innovation/Decision Making Business Acumen Adaptability Emotional Intelligence Influencing Managing Risk Conflict Resolution Drive Revenue Risk If Vacant Customer Relations Critical or Rare Skills Market Competition Equip leaders with a small number of competencies (two to three) that will make a significant difference to performance. From Gray Hair to Flip Flops 32 From Gray Hair to Flip Flops 33 Identify those whom are High Performers with High Potential Low Potential Moderate Potential High Potential Highly valued, High seasoned professional Performers in current role; remain at current level Effective Probably solid performers in current roles. Could progress higher in specialty and become a high performer. Consider Low reassignment, Performers reclassification or exit. Does extremely well at current job with potential to do more, give stretch assignments to help prepare for next position. These individuals should be considered for a bigger job at the same level if they can deliver better results. Tight performance management is crucial, consider helping leader manage time more effectively. Consistently performs well in a variety of assignments, prime targets for recruitment by other companies. Current role may still provide opportunity for growth / development; focus should be on helping them improve performance Maybe job mismatch, new hire with lots of potential, or new assignments. May require coaching to improve performance. 2. Talent Development Provide Career Paths - Employees of all generations want to be able to navigate their careers. 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 55% 78% 88% 85% Traditionalists Baby Boomers Generation X Millennials From Gray Hair to Flip Flops 34 Future Workplace. Multiple Generations @ Work, 2012 From Gray Hair to Flip Flops 35 6
Career Level/Pathing Allows employees to chart a path within your organization; increasing retention and growing talent organically. 3 Keys Elements of Successful Talent Development Dimensions: Individual has to be motivated ( ambitious ) and willing to do what is required to grow and progress Organization needs a process in place to help those who want to grow Managers/Leaders need to take an active role in development (take time, interest and effort) Impact /Scope Knowledge Autonomy/Judgment Problem Complexity Skills/Qualifications Teamwork/Leadership From Gray Hair to Flip Flops 37 Keys to Successful Talent Development Individual has to be motivated ( ambitious ) and willing to do what is required to grow and progress Consider career aspirations (place on growth curve ) Communicate individual ownership and accountability Understand how to leverage strengths Consider individual competencies necessary for success Understand what is personally motivating Keys to Successful Talent Development Organization needs a process in place to help those who want to grow Communicate objectives and employee s role in success Define a method for determining hi-potential employees Define career paths and opportunities Define key competencies Build a culture of learning agility Hold managers/leaders accountable for team development From Gray Hair to Flip Flops 38 From Gray Hair to Flip Flops 39 Keys to Successful Talent Development Managers/Leaders need to take an active role in development The Value of Stretch Assignments Assess Talent (Potentials competency strengths/gaps) Understand career goals/individual motivators Encourage employees to reach their potential Assign mentors for development success Provide assignments and goals that are impactful to key objectives Understand how to use stretch assignments Provide direction and ongoing coaching Company Perspective Tap broader skills of employees Avoid time and cost of hiring and training new staff Helps retention efforts to offer growth opportunities Employees Perspective Broadens skills, increases confidence and provides richer resume Makes them feel more needed and challenged and less inclined to leave From Gray Hair to Flip Flops 40 From Gray Hair to Flip Flops 41 7
Stretch Assignments Delegate key assignments take a key priority that isn t getting done and assign the job Trade tasks and assignments between two direct reports have them do each others work Fix-its/Turnarounds Clean up a mess when it is the last chance Projects/Task Forces - One-time, shortterm events. Diversity Lead a cross cultural, enterprise-wide team Facilitating Change - Manage a new product launch Leading a Critical Business Initiative New system rollout 3. Drive Employee Engagement across the Generations Slipping away Whining and walking Quitting and working Competing and constraining Clashing and complementing From Gray Hair to Flip Flops 42 From Gray Hair to Flip Flops 43 Workforce 2020 Engagement Model Blended Rank Order Traditionalists Baby Boomers Generation X Millennials Strong values 1 1 1 2 2 Develop skills for future 2 7 4 1 1 Flexible benefits & rewards 3 3 2 3 3 Blend work & life 4 2 3 4 5 Good employer brand 5 4 5 6 6 Clear career path 6 8 8 5 4 Reputation for corp. social 7 6 6 7 7 responsibility Allow me to work from any 8 5 7 8 10 location Pay for continuing education 9 9 9 9 9 Has EEs I think I could be friends with 10 10 10 10 6 Create a Culture that is Conducive for all Managers/Leaders need to adapt their leadership style Adapt your attitudes about work styles, communication preferences and motivators to match generational expectations Be open and abandon the one size leadership style works for all Understand what makes each generation tick Make a point to ask employees about their individual needs, views and preferences. Leverage the strengths of each generation Build on strengths and encourage people to become more of who they are rather than pushing them to conform. Build bridges between generations Pursue and encourage a multiplicity of perspectives and ideas. Educate and increase appreciation for generational differences Communicate uniquely with each generation Observe and discover ways to meet the different communication styles of your team. Future Workplace, Multiple Generations @ Work, 2012 From Gray Hair to Flip Flops 44 From Gray Hair to Flip Flops 45 Become a Coach (versus a Manager) Shift from Command and Control to Develop and Empower Establish Trust Create a safe, supportive, blame-free and challenging environment Allow for input and suggestions into solutions, processes/procedures, projects, and self development Listen and get to know your employees in order to energize and motivate them Get to know them on a professional and personal level Understand individual skills, preferences and motivators and align with departmental and organizational goals Create a Culture that is Conducive for all Generations Celebrate individual and team accomplishments Use different means of recognition to appeal to all generations Show openness to employees ideas and innovations Arrange camaraderie-building events Embrace flexible work schedules Coaching is helping another person figure out the best way to achieve his/her goals, build skills sets or expertise and produce the results the organization needs. From Gray Hair to Flip Flops 47 8
Adopt Flexible Work Flex work is appreciated by every generation, make your practices more nimble and employee-friendly Benefit Strategies by Generation Traditional Baby Boomer Generation X Millennial Dental Vision Flexibility Financial Development Office Perks Source: Trends in Workplace Flexibility (WorldatWork, September 2015) From Gray Hair to Flip Flops 48 From Gray Hair to Flip Flops 49 Benefit Strategies by Generation Traditional Baby Boomer Generation X Millennial HDHP - Higher HDHP - Lower Traditional HSA FSA Wellness EAP SUMMING IT UP From Gray Hair to Flip Flops 50 From Gray Hair to Flip Flops 51 Best Practices Perform Workforce Analytics Use this information to guide your HR Strategies Identify generational gaps and commonalties Facilitate regular trainings about generational differences Create work environments where employee opinions are valued Ask and react accordingly to motivate employees Ensure leaders have the knowledge and skills needed to lead and communicate effectively with all Develop multigenerational benefit strategy Develop an effective succession plan Identify ways to transfer knowledge so crucial expertise and resources are not lost Remember that despite generational differences, all employees at their core desire the same things: equal and fair treatment, appreciation for their contributions, open communication with their superiors and advancement opportunities. Make these core components of your Total Rewards Strategy. From Gray Hair to Flip Flops 52 From Gray Hair to Flip Flops 53 9