Workforce Development - A Good Investment?

The Job They Want May Not Be The One You're Offering

Todays younger generation, and the current Baby Boomers are looking at the job market quite differently than you might imagine.

Observed from two ends of the career spectrum, a signifcant percentage of young adults entering the workforce are looking at how they can make a difference in peoples lives and the community.  Not surprisingly, many Baby Boomers are feeling the same way, after many long and arduous years, asking the question "Is this all there is?"

There are two factors that guide most career decisions: salary and personal satisfaction. At the end of the day, you have to bring home a paycheck big enough to pay the bills and put food on the table. But most young people also want a work environment that satisfies them on a personal level. For some people, that kind of job satisfaction comes from collaborating with like-minded coworkers, or creating a quality product.

Sometimes that can be found in the commercial or governmental workforce, often it cannot.

For those that are self-directed, have a strong work ethic and a passion for making a positive difference in peoples lives, working in a non-profit setting can be a perfect setting for career growth, contribution to society and self-expression.

I have been working with non-profits for over 30 years job in a variety of worker and leader capacities and am surrounded by happy people who describe job satisfaction meaning going home after a long and often challenging day knowing your work has helped improve someone else's quality of life.

My experience with non-profits has also shown me young professional who are willing to atartt at the bottom and give it your all. If you are smart, work hard and honestly care, you will rise to the top very quickly. There are lots of opportunities for advancement for the right individuals.  These workers tell me that they find great satisfaction from engaging with all levels of the organization, and often in a relatively short time can be working shoulder to shoulder with the CEO, attending board meetings, and interact with other agencies, boards, as well as clients.  

Unfortunately more and more workers are being thrown out like yesterday's trash, and the loyal customers, once viewed as the cornerstone of any company, are being silenced by the short-term -- and often shortsighted -- financial demands of the bottom line.

The cost of these savings, however, come at the expense of dedicated workers who once loved their jobs and enjoyed making their businesses successful.  

Baby Boomers nearing retirement express a desire to make a difference.  So it is not surprising to find that an increasing number are saying "thanks but no thanks" when being encouraged to stick around past retirement, take on new assignments, or come back from retirement to backfill a knowledge or skillset shortage.  Several of these Boomers are finding that a non-profit gig is very personally rewarding.

It's not all rosy of course.  Non-profits struggle to attract and maintain a quality workforce to staff programs, usuually because of the low wages offered for such demanding work.  Additionally bureaucracy often associated with government, or private funding agencies and programs can be a bit stifling at times. Paperwork, paperwork, and paperwork never seems to go away. For some it often can feel meaningless, but keeping it at bay allows non-profit workers to maintain the real "bottom line": providing quality support to your clients.

Is Letting Them Go a Wise Strategy?

Leslie Levine is a seasoned author who writes great stuff about what's happening in toe workforce.  One of the articles she wrote about developing your employees, entitled "Let Em Go" struck a nerve with me.

She cites how some businesses view the anticipated departure of Baby Boomer s as an exodus, which is a fairly dramatic term. Is that what you see happening at your company? Even if you don´t know when your older employees plan to leave it still behooves you to have some idea. Clearly, you don´t want to be caught off guard, especially if your competition has been planning all along. Here are some points to consider:

She presents in this article a series of probing questions that aren't intended to put you into a panic but rather to remind you that the future is here.

She refers to David Delong, author of the book, "Lost Knowledge: Confronting the Threat of an Aging Workforce", and a management consultant and researcher at MIT´s AgeLab, stated on NPR that Leaving workforce with knowledge that didn't exist 20 years ago.

He also said that between 2003 and 2013 the age group of 50-64 will grow 40 percent while the age group 35-49 will shrink 10 percent. Those are numbers that no business can afford to ignore. What will you do?

I'll also suggest a alternative view that I hope evokes some discussion...

What of the "knowledge" held by baby boomers is worth passing along to the younger generations?

I throw out this question, because, depending upon which industry you are in, the "entrenched" thinking of these workers may be viewed as a factor in prohibiting new ideas from being developed.

So, is it always valid to assume that the "boomer knowledge bank" should be passed on?  Readers, care to share your experiences?

Myths about Gen X in the Workforce - They don't want to grow up

The Reality:

They really don't know how.

The youngest generations in today's workforce are facing a delayed adulthood. They are getting married later, having children later and just generally facing the "real world" later. This isn't the result of a mutated maturity gene, it just is. And if we are being completely honest, Boomers had a lot to do with why it's happening.

First, as parents, Boomers had a tendency to coddle their children and use their own good fortune to make sure their children didn't experience adversity. Second, as career models, Boomers demonstrated the toll of working long hours and "paying one's dues" in a way that made their children less likely to follow in their footsteps. Millenials today look at the corporate ladder and think, "there must be another way."

My advice to you—don't waste time wishing they were different. Don't spend your energy comparing today's youth to the desires and drive you had at age 18. These employees are not a reflection of you, nor are they an earlier version of you. And again, that is okay. Your task is to take this new understanding and use it to reposition how you interact with, motivate and reward your staff.

Take attire for instance. Your 18-year-old self would have gladly donned whatever uniform was necessary to fit the company mold. Be it pressed khakis and a tie or a specific corporate uniform, fitting in was part of the package. Today's youth wants to stand out. They want their individuality to shine through even when required to provide a consistent standard of service and performance. Balancing corporate needs with individual desires takes some creative thinking.

Home Depot is one company that has addressed this dilemma at a very basic level—company uniforms. They simply require that all employees wear a standard Home Depot apron. Be yourself underneath (within reason) and show the customer that you are on the Home Depot team with this bright orange apron. Is there a standard that you can adopt to accommodate individual preferences? Something to think about.

Thanks to Cam Marsten for research cited in this article

Mining "silver" becoming increasingly popular

Looking for work in Japan? Shigeo Hirano  says you may have an edge if you are older than 60.  Hirano, president of staffing agency Mystar 60 Corp., says so-called "silver" workers are in growing demand as Japan's population ages.

"Japan's best engineers and technicians are leaving factories and offices for retirement," said Hirano, who heads the employment company which specializes in finding jobs for those aged 60 and over.  "Companies are realizing that hiring the elderly is the only way to retain high levels of skills and expertise," added Hirano, himself a sprightly 63.

A decline in young workers globally is exacerbating the concern as  the population ages at an unprecedented pace. The proportion of people over the age of 65 to total population is already the world's highest at 20 percent of Japan's population of 127 million people. The figure is forecast to hit 40 percent by 2055.

This and other information characterizing the worsening labor crunch were chronicled in a Reuters article published in the Boston Globe entitled "Greying workers wanted for hire in aging Japan"

Recruitment of "silver workers" is projected to play an increasing role in the quest for competent, experienced staff.  It is just one of many strategies to ensure the workforce needed for the 21st century.

Companies May Lose Older Workers with Shortsighted Policies

A recent survey by Manpower revealed that only 21 percent have implemented retention strategies to keep them participating in the workforce.  Since senior employees are not enticed solely by money, using personality assessment and progressive retention strategies are part of a successful formula for retaining skilled talents. 

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Factors Shaping Our Future Workforce - Part 1 - Impact of an Aging Population

Aging of the population is currently the single most important trend affecting the workforce in the USA.

Personal lifestyle changes and medical advances are keeping people viable and active longer.

Additionally, financial pressure and personal desire are keeping them working beyond traditional retirement age.  This is evidenced by the projection that by 2025, workers aged 55 and older will be more than 20% of the work force in the USA

The concept of "old" and "senior" are also changing.  By 2050, individuals aged 75 – 78 will be considered to be "middle age."  Mortality tables are being changed to reflect this: maximum life expectancy is increasing from 99 (tables created in 1980) to 120.5 years (new tables published in 2003)

Finally, we are and will continue to experience a lack of younger replacement workers due to a "baby bust" which started with Generation X

One of the most anticipated workplace trends of the 21st Century is the huge retirement wave that will hit most industrialized countries, including the United States, in the next few years. But surveys consistently report that most companies are unprepared to respond to the seismic shifts that are expected to appear in the workforce.

What implications does this have?

Searching for the Silver Bullet: Leading Edge Solutions for Leveraging an Aging Workforce, the latest study from the MetLife Mature Market Institute, which was developed in collaboration with David DeLong & Associates, explores what proactive organizations are doing to creatively meet the challenges posed by an aging workforce.

The study includes in-depth case studies about four companies that have successfully implemented programs to address the changing workforce demographics: Boston Scientific, First Horizon Corporation, The Aerospace Corporation and Weyerhaeuser.

Drawing on the experiences of employers that have put innovative initiatives in place to address the changing demographics, the study provides insights for HR managers on such topics as: implementing effective flexible work arrangements, helping older workers successfully transfer knowledge and devising creative solutions for rehiring retirees.

The U.S. Bureau of Labor Statistics indicates that between 2004 and 2014 the growth in the percentage of older workers will far outpace that of younger workers.

In that period, the percentage of individuals in the workforce ages 55-64 is expected to grow 42%, compared to a 5% increase in workers age 45-54 and an 8% decline in workers age 35-44. At the same time, the percentage of workers 65+ is expected to grow 74%.

“As the wave of baby boomers approach retirement, companies are searching for a silver bullet – a one size fits all approach for addressing the needs of an aging workforce,” said Sandra Timmermann, Ed.D., director of the MetLife Mature Market Institute. “However, what we learned from this new study is that there is no panacea for addressing the needs of a mature workforce.

What’s needed, instead, is a portfolio of strategies and solutions that balance the need to retain older workers while also transferring knowledge to younger workers, so that business performance can be sustained.”

“By learning from others and putting practices in place now, employers will be better able to navigate the dramatic changes coming in the workforce,” added Timmermann. “Organizations that haven’t prepared properly will have fewer options to minimize the impact of retiring baby boomers in order to sustain business performance.”

Valuable lessons learned from the study include:

• The need to think of phased retirement or flexible work options as a program, not a policy;
• How to create effective knowledge sharing relationships between older mentors and younger workers;
• How company-sponsored benefits and retirement planning workshops that focus on the economic consequences of leaving the workforce will encourage some employees to remain in the workforce past age 65;
• The need to make knowledge transfer an explicit part of any job when rehiring a retiree; and
• Why companies must stop searching for the “silver bullet” and recognize that there is no quick fix to these workforce challenges. The solution is a portfolio of integrated programs that will accommodate the changing labor market.

The study also provides specific tips to help employers:

1. Create and leverage a network of former employees;
2. Rehire retirees indirectly on a project basis when pension restrictions prevent direct re-employment;
3. Hire retirees with special expertise to innovate on critical projects; and
4. Tap the expanding pool of older people seeking employment.

“When it comes to solving the problems of an aging workforce, the glass is both half empty and half full,” said Dr. David DeLong, president of David DeLong & Associates, Inc. “Organizations can focus on the barriers or the opportunities. Most executives today recognize that their workforce is going to change dramatically in the next decade. They can maximize the contributions of employees and the assets they bring to the workplace.”

The MetLife Aging Workforce study was conducted during the first half of 2007. While this research focuses on four specific case studies, more than 75 interviews were conducted with managers in 28 organizations identified as leading edge in dealing with the changing workforce. To enhance the findings, more than a dozen experts on aging workforce issues were also interviewed.

The Organizations That Continue To Win The “War For Talent” Will Be Based On Many Factors…

The demographics of the global workforce aren’t going to stand still while businesses try to catch up.

This makes having a transparent, consistent and strong employer "brand" essential, because it allows employers to align their talent acquisition and retention strategies to their corporate values. It also allows companies to project into the market a clear image of themselves, which a potential employee can buy-in to.

Whether its encouraging the aging workforce to remain motivated and continue working, whether its making the differentiation between themselves and the competition clearer to the smaller pool of Human Capital that do have the skills and abilities needed, or whether its continuing to drive a volume of employees into specific market sectors - strong recruitment campaigns, imaginative retention strategies, employee engagement initiatives, flexible benefits and work/life balance can be key ingredients in attracting and retaining talent now and into the future.

The Fastest Growing Top 10 Middle Class Jobs

As a person about to enter the workforce or someone who is simply trying to hang onto your job, the middle class has become a worrisome place for many. If you aren’t laid off you might soon become outdated.

If you are going to work you might as well work for the most money you can. You might not be aware of the highest paying middle class jobs and

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Why is aging of the workforce significant to employers?

Demographers have presented a compelling case: the 21 st century workforce is – and increasingly will be – different from the workforce of the last century. One important change is the aging of the workforce, a trend expected to continue for several decades. Labor force economists expect significant increases in the percentages of workers 55 and older who will be in the labor force by 2012.

The National Study Report,a research product of The National Study of Business Strategy and Workforce Development authored by Marcie Pitt-Catsouphes, Ph.D., Michael A. Smyer, Ph.D., Christina Matz-Costa, and Katherine Kane, looks deeply into the internal dynamics of workforce analysis and planning, and provides a rich and current set of options for employers to refer to when trying to make sense of today's dynamic workforce.

Employers increasingly understand that the success of their businesses often reflect the adaptations they make to new trends and changes occurring both inside and outside of their organizations. The reports shows conclusively how the “right” adaptations made “just-in-time” may produce competitive advantages; adaptations that are “not enough” or that occur “too late” could result in unanticipated vulnerabilities.

When will we see the Worker Shortage called a crisis?

“This is not something that tomorrow, all of a sudden, will show up in the headlines. This is a slow effect of changing demographics that is absolutely predictable but with profound implications… "

Consider these comments by David Ellwood, Dean of Harvard University’s Kennedy School of Government.  Citing an article by J. Barrett, “An impending work crisis.” that first appeared in Newsweek. September 20, 2002.

What becomes increasingly apparent is that there are not enough workers to backfill the expected number of baby-boomers that will be retiring over the next 5-10 years.

This affects all workers at every level of the US workforce.  For example - 19% of the entire American workforce holding executive, administrative and managerial positions will retire in the next five years.

It's not just the US - the aging workforce also affects the global workforce in major ways:

• In the year 2000, there were more people receiving pensions in Italy (22 million) than people working (21 million)
• Within the next seven  years, over 33 million individuals in Japan (26% of the population) are expected to be over 65 years old.
• In Autstrlia , by 2016, the number of individuals aged 60-64 in Australia is expected to almost double
• In the EU Over the next two decades the number of older workers (50-64 years) will increase by 25%, while the younger workers (20-29 years) will decrease by 20%
• While only 11 percent of the Chinese population today is over 60, the United Nations projects that this segment will increase to 28 percent by 2040.  At that time, China is expected to have 397 million people over 65, which is more than the total current population of France, Germany, Italy, Japan and the United Kingdom combined.

Thus, we have a "perfect storm" developing.  If we pay attention to what's happening.  Accordingly, we can expect the "war for talent" to worsen, not get easier.

Here are some ideas that will help businesses survive thhe difficult period ahead:

1. Provide opportunities for workers to continually update their skills
2. Preserve critical knowledge before it walks out the door
3. Retain valued employees through developing alternative work arrangements
4. Facilitate the productive coexistence of a multi-generational workforce
5. Ensure that mature workers are able to use technology effectively in the workplace
6. Redirect recruiting and sourcing efforts to include mature workers

Because this is not something that tomorrow, all of a sudden, will show up in the headlines, but an ongoing threat that becomes more ominous over time, we must be prepared in advance. 
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Sources: Beazley, et. al, Continuity Management, Mackay, Alan. “Mature Age Workers: Sustaining Out Future Labor Force.” An Ageless Workforce - Opportunities for Business' Symposium Conference Paper. August 27, 2003. www.ageing.health.gov.au/ofoa/wllplan/aawpapers.htm, Time to act quickly on aging.” The Japan Times Online. August 23, 2002 www.japantimes.co.jp/cgi-bin/getarticle.pl5?ed20020823a1.htm, A. Paulli, “Pension systems and gradual retirement in Italy”, September 2000, p.17

US businesses not prepared for aging workforce

Walter Derzko a noted strategist and futurist has made some significant contributions in the area of Workforce Development.  His Smart Economy blog recently published a piece entitled US businesses not prepared for aging workforce 07-089

His article cites "Despite reports that the U.S. faces a shortage of millions of workers within the coming decade as baby boomers retire-taking with them years of experience, talent and expertise and leaving fewer new workers available to take their place-The National Study of Business Strategy and Workforce Development, conducted by the Boston College Center on Aging and Work, (previously cited in my blog) found that many U.S. businesses are unprepared for changing workforce demographics."

This is really an insightful piece that shows a great deal of depth.  Check it out.  It's well written and concise.  If this area is of interest to you, you'll find Mr Derzko's piece enlightening.

Web Seminar Announcement

Aging Workforce News has an upcoming tomorrow (Feb 14th) that you won't want to miss:
Entitled "Retaining the Energy and Expertise of Experienced Employees" it will explore proven techniques for developing, motivating, and managing an aging workforce with highly valuable skills and experience.
    William C. Byham, Ph.D., will present "70 Is the New 50: Retaining the Energy and Expertise of Experienced Employees," addressing the elements of a retirement management system, how retirement fits into a broader talent management system, and how to effectively implement a successful retirement management program.

Opportunity Cost Associated With Most Job Appraisals - not sure I agree

Dave Bogg's wrote a recent article in his The Boggs e-Learning Chronicle blog    In this article , "Opportunity Cost Associated With Most Job Appraisals"  he's put forward the idea proposed by James Adonis who wrote a recent article that bashes 6 month or 12 month standard performance review handed out by most HR departments in his article, "Appraisals Lack One Thing: Performance".

Adonis advocates continuous feedback recommending short, monthly reviews, and other techniques as an alternative to the 6 month or 12 month standard performance review.

While that idea seems innocent enough, it unfortunately, is hardly that simple. 

You see, we must talk about performance feedback systems in the context of the "generation" that you're dealing with.  As you know, we have four very distinct generations in todays workforce, and each have far different life experiences, perspectives, work habits and values.  They also have far different expectations regarding how and what type of feedback they seek. 

Here's some basics about Feedback in todays more complex workforce.

If you are in Management or HR you must also recognize and change the way you communicate expectations and provide feedback across generations. For example, for a traditionalist: “no news is good news.” is acceptable feedback. A baby-boomer generation worker expects feedback once a year and lots of documentation. X'ers may drop by and say “sorry to interrupt but how am i doing?”, while Millenials are thinking “I expect performance feedback whenever I want it at the push of a button.”

To add to this, you may also experience cultural variations on feedback expectations.  We'll save that for a future post.

Sheds a slightly different light on things, does it not?

Are you stuck in middle management hell?

A generation of workers can't get ahead - because aging boomers above them won't budge. Generation X, it would seem, is in danger of turning into the Prince Charles of the American workforce: perpetual heirs apparent awaiting the keys to the kingdom.

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