AARP Executive Insights Webinar Series

Webcasted on Wednesday, June 23, 20102:00 p.m. to 3:00 p.m. EDT

Talent Management for an Age Diverse Workforce

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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 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 workplaceQ3 2010 Hiring projectionsFindings/Implications from the Sloan Center on Aging &

Work research study, The Pressures of Talent ManagementStrategies and industry practices that have been adopted

by forward thinking organizationsThought process for implementing an age diverse talent

management strategy

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Today’s Presenters

Deborah RussellDirector, Workforce IssuesAARP

Kathy LynchDirector, Employer EngagementSloan Center on Aging & WorkBoston College

Jill BracelandDiversity & Work Life SpecialistMitre Corporation

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Economic Uncertainty Continues

Unemployment remains near 27 year highJobless claims, consumer spending, and home sales

weakBudget cuts in European countriesFinancial Markets are fragileFed expected to leave Policy unchangedSlight improvement in hiring outlook

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U.S. Workforce Demographic Trends

Aging of the U.S. workforce: 76m Baby Boomers

Lower birth ratesFour generations

working side-by-side

High talent among the

unemployedConcerned

about stabilityReversal of

retirement trends

Workforce 2010

AARP

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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

Sloan Center on Aging & Work

• Founded in 2005: Alfred P. Sloan Foundation Grant

• Rigorous Research• Evidence for Action• Quality of Employment• Prism of Age

10 Countries – 30 Worksites

2010 Data Collection

Employer

Learning

Circle

Beyond Age Workshops Age Diversity + Team Innovation = Competitive Edge

Current Areas of Focus

The Center’s Workplace Impact Model

Awareness

Older Workers are Working Longer

Percent of Age Groups in Labor Force

0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00%

25-34

35-44

45-54

55-64

65+

Age

Percent of Population

20102000

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:

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.

2.0%

37.8%

49.1%

10.1%

1.0%

Very Negative

Negative

No Impact

Positive

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.

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

12.6%

10.0%

13.1%

25.7%

28.8%

40.0%

46.7%

36.6%

39.7%

42.7%

38.1%

39.5%

37.2%

29.8%

36.6%

36.0%

33.3%

25.6%

25.1%

17.4%

18.9%

14.2%

14.2%

10.9%

10.6%

6.5%

5.4%

4.7%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Assessed supervisors' abilityto anticipate/plan for staff ing

needs

Assessed competency setsof employees

Assessed skills organizationanticipates needing

Developed succession plans

Anaylzed demographicmakeup

Assessed employee careerplans

Analyzed projected retirementrates

Not at allLimited extentModerate extentGreat extent

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

Generational Age

Life Events Age

Organizational Age

Occupational Age

Relative Age

Social Age

Physical Age

AGE

What is the context?

Employer groups by impact of economicpressures and aging workforceN=646

27.9%

11.9%

36.0%

24.2%

Age-Economically PressuredAge PressuredEconomically PressuredLower Pressured

Pressure Combinations:

One in four employers in 2009 reported that age and economic pressures were working in tandem to negatively impact their operations.

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 organizationhave programs or policies for the engaging of older workers?N=669

2%

0%

1%

2%

65%

69%

66%

53%

33%

31%

33%

44%

0% 20% 40% 60% 80% 100%

Lower Pressured

EconomicallyPressured

Age Pressured

Age/EconomicallyPressured

Excessive policies/programs

Just the right number ofpolicies/programsToo few policies/programs

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 (thinkingabout both full-time and part-time employees) can do the following?N=644

28.3%

11.5%

9.8%

7.5%

7.8%

9.0%

16.1%

14.7%

7.0%

40.8%

58.5%

54.1%

37.0%

48.2%

21.9%

13.8%

21.4%

48.6%

38.9%5.1%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Extended CaregivingLeaves

Request Change inStart/Quit Time from Time to

Time

Choose Schedule thatVaries from Typical

Take Education Leave

Transfer to Job WithReduced

Pay/Responsibilities

All/Nearly All

Most

Some

None

The Age/Economic Pressure Tool

Where does your organization fit?

How does your organization compare?

What does your quadrant mean?

Quadrant BLower 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 DHigher 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 SeriesJune 23, 2010

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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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Corporate Mandate

National shortage of engineering talentClassified work with Federal government

o Must be US Citizen

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MITRE Constraints

Workforce Development Briefing to OfficersMay 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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Strategic Development

Interview OfficersDefining what we want in the futureAnalyze current and future demographics

MITRE

Steps Taken

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

Officer Interview Results

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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What we want in the future

Average highest-degree level unchanged over 25 yearsIncreasing proportion of staff reaching typical

retirement ageAttrition among staff of typical retirement age has

been stable or decliningIn 2009, over 50% of our hires were from internal

referrals

MITRE

Demographics

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

WORK IN PROGRESS

Embrace diversity of thought Expand mentoring programs, including senior

management with high potential personnel Add training in leading diverse and multi-

generational teams

MITRE

WORK IN PROGRESS

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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

To continue the conversation:

Kathy LynchSloan Center on Aging & Work

lynchks@bc.edu617-552-2865

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 managementstudy and selected findings from our reports, please visit:

http://www.bc.edu/research/agingandwork/projects/talentMgmt.html

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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 ManagementResources AARP SmartBrief – E-newsletter update on changing workforce

issues and recruiting strategieshttp://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 strategieshttp://www.aarp.org/money/work/best_employers/articles/recruiting_practices_2008_best_employers.html