AARP Executive Insights Webinar Series

Talent Management for an Age Diverse Workforce

Webcasted on Wednesday, June 23, 2010 2:00 p.m. to 3:00 p.m. EDT

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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 email to ExecutiveInsights@aarp.org after you finishing reviewing these slides. Be sure to specify the title of this Webinar in your request.

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Learning Objectives
 Update on the economy impact on the changing

demographics of the workplace  Q3 2010 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

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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

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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

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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 High talent among the unemployed

Concerned about stability

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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

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Sloan Center on Aging & Work
• • • •

• Founded in 2005: Alfred P.

Sloan Foundation Grant Rigorous Research Evidence for Action Quality of Employment Prism of Age

Current Areas of Focus
Employer Learning Circle

10 Countries – 30 Worksites 2010 Data Collection

Beyond Age Workshops

Age Diversity + Team Innovation = Competitive Edge

The Center’s Workplace Impact Model

Awareness

Older Workers are Working Longer
Percent of Age Groups in Labor Force
65+ 55-64 45-54 35-44 25-34

Age

2010 2000

0.00%

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, 1950 – 2050. Monthly Labor Review May, 125, 15 – 28. Bureau of Labor Statistics (BLS). (2010) [Analysis of US Current Population Survey.] Unpublished raw data.

 Research tells us:
1.0% 10.1% 2.0%

 40% of employers anticipate

ageing of the workforce will have a “negative/very negative” impact on their business over the next 3 years.  Almost 40% of employers report a sense of “age or age/economic” pressure.

37.8%

Very Negative Negative No Impact Positive

49.1%

Very Postive

Sweet, S., Pitt-Catsouphes, M., Lynch, K., and Whalley, E. (2009, October) Talent Management Study: The Pressures of Talent Management

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 Assessed supervisors' ability to anticipate/plan for staffing needs

10.0%

39.7%

36.0%

14.2%

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

Why?

Assess the “what”!

1. What is Age?

2. What is the context of the “age” impact on your

organization?

The Prism of Age
Chronological Age

AGE

Generational Age Life Events Age Organizational Age Occupational Age Relative Age Social Age Physical Age

What is the context?

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=646

24.2% 27.9%

Age-Economically Pressured Age Pressured Economically Pressured Lower Pressured

11.9%

36.0%

Sweet, S., Pitt-Catsouphes, M., Lynch, K., and Whalley, E. (2009, October) Talent Management Study: The Pressures of Talent Management

In your opinion, to what extent does your organization have programs or policies for the engaging of older workers? N=669
Age/Economically 2% Pressured 53% 44%

Age Pressured 1%

66%

33%

Excessive policies/programs Just the right number of policies/programs Too few policies/programs

Economically 0% Pressured

69%

31%

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

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%

The Age/Economic Pressure Tool

Where does your organization fit?

How does your organization compare?

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.

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.

Workforce Planning Strategies by Pressure Group

Workforce Planning Strategies by Pressure Group

Workforce Planning Strategies by Pressure Group

MITRE Talent Management

AARP Executive Insight Series June 23, 2010

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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.

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

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

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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.

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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

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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

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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

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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

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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
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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

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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. For more information on the talent management study and selected findings from our reports, please visit: http://www.bc.edu/research/agingandwork/projects/talentMgmt.html

To continue the conversation: Kathy Lynch Sloan Center on Aging & Work lynchks@bc.edu 617-552-2865

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 www.AARP.org/erc for these and other resources
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Talent Management Resources
 AARP SmartBrief – E-newsletter update on changing workforce

issues and recruiting strategies
http://www.smartbrief.com/aarp/

 Online Job Sites – A list of job sites that appeal to experienced

workers
http://bulletin.aarp.org/yourmoney/work/articles/job_search_resources.html  Recruiting Practices: 2008 AARP Best Employers for Workers Over

50 – Article summarizing the winning recruiting strategies
http://www.aarp.org/money/work/best_employers/articles/recruiting_practices_2008_b est_employers.html

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