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Transcript of SHRM Survey Findings: The Aging Workforce— Recruitment and Retention Funded by the Alfred P. Sloan...
SHRM Survey Findings: The Aging Workforce—Recruitment and Retention
Funded by the Alfred P. Sloan Foundation
January 12, 2015
The Aging Workforce—Recruitment and Retention ©SHRM 2014 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.
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.
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• Changes in retention, recruiting and general management policy practices in response to aging workforces: Two-fifths of responding organizations indicated the increasing age of their workforce has not prompted changes in retention (42%), recruiting (42%) or general management policy practices (41%).
• Recruiting methods to directly target older workers: Of responding organizations that indicated the increasing age of their organization’s workforce has prompted changes in their recruiting practices, the most commonly reported recruiting method to directly target older workers was through employee referrals (33%); one-quarter (24%) indicated they relied on networking.
Over one-half (54%) indicated they do not actively recruit older workers.
• Use of social media to target older workers: Of responding organizations that indicated they used social media to target older workers, three-quarters (74%) indicated they used LinkedIn, and one-half (49%) indicated they used Facebook.
• Level of difficulty in recruiting older workers: About one-fifth to one-quarter of HR professionals indicated it is easy/extremely easy to recruit exempt and nonexempt older workers (21% and 24%, respectively).
• Level of difficulty in retaining older workers: About two-fifths of HR professionals indicated it is easy/extremely easy to retain exempt and nonexempt older workers (45% and 42%, respectively).
Key Findings
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• Factors contributing to difficulty in retaining older workers: Of HR professionals who indicated it is “difficult” or “very difficult” for their organization to retain older workers compared to other workers, the three most challenging factors cited included:
Inability to offer flexibility in work location (e.g., working from home, satellite offices) (47%).
Inability to offer career flexibility (e.g., reduced responsibilities, job change/occupation shift) (45%).
Inability to offer work hour flexibility (e.g., reduced hours, job-sharing, phased retirement, part-year employment) (44%).
• Level of difficulty in recruiting older workers by employee type: About one-quarter of HR professionals indicated it is difficult or extremely difficult to recruit older workers qualified for labor, skilled (25%), executive (25%), salaried individual contributor/professional (22%) and management (22%) positions compared to other workers.
Regardless of the type of position, a lack of or few applications from older workers for eligible positions was the most cited difficulty in filling positions with older workers who are qualified compared to other workers (46%-60%).
Key Findings (continued)
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Key Findings (continued)
• Older workers who were formerly retirees: Two-thirds (66%) of responding organizations indicated their organization employs older workers who retired from other organizations or careers before joining their organization.
However, the vast majority (90%) indicated just 1%-20% of their organization’s older workers were retirees before joining their organization.
Of responding organizations that indicated they employ older workers who were formerly retirees, about two-fifths (43%) indicated all of these employees were in full-time positions, and just 11% indicated they were all in part-time positions; almost one-half (46%) indicated they were mixed between full-time and part-time positions.
• Factors in former retirees returning to work: Almost three-quarters (72%) of HR professionals indicated money was a factor in former retirees returning to work; almost three-fifths (58%) indicated enjoyment/occupying time was a factor, and about two-fifths indicated health care benefits (45%) and social interaction (42%) contributed to the decision to return to work.
• Capitalizing on and incorporating the experience of older workers: Over three-fifths (61%) of HR professionals indicated their organization attempts to capitalize on and incorporate the experience of older workers to “some” or a “great extent.”
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Key Findings (continued)
• Formal strategies for retaining or recruiting older workers: Very few responding organizations indicated they have a formal strategy for retaining (4%) or recruiting (3%) older workers. Of responding organizations that indicated they have a formal strategy to recruit or retain older workers:
About one-half (48%) indicated they offered reduced hours or part-time positions to older workers, two-fifths hired retired employees as consultants or temporary workers (40%) and/or started flexible scheduling (37%), and about one-third created positions/redesigned positions that allow bridge employment (30%) and/or offered phased/gradual retirement (30%).
• Steps taken to recruit or retain older workers: Of HR professionals who indicated their organization has taken a specific step(s) to recruit or retain older workers, the majority indicated hiring retired employees as consultants or temporary workers (67%), offering reduced hours or part-time positions to older workers (57%) and starting flexible scheduling (63%) were very effective in recruiting or retaining older workers.
• Use of steps/methods implemented to recruit or retain older workers: Of responding organizations that indicated they have taken a specific step(s) to recruit or retain older workers, less than one-quarter indicated that more than one-half of their eligible employees actually used reduced hours or part-time positions (21%), flexible scheduling (24%) or phased/gradual retirement (16%) programs for older workers.
The Aging Workforce—Recruitment and Retention ©SHRM 2014
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Implications for HR
• As the workforce continues to age, the percentage of organizations prompted to make changes in general management policy/practices, retention practices or recruiting practices is likely to increase. Even HR professionals in industries and sectors that currently skew toward younger employees will need to consider how the aging population will affect them.
• The more highly skilled positions are likely to continue to be the most challenging for organizations to fill and are thus the jobs for which the greatest efforts to locate qualified older workers will be made.
• Currently, recruiting and retaining older workers are not seen as particularly difficult. However, this could change if skills shortages ramp up demand.
• Because employee referrals and networking are currently the most common ways organizations are targeting older workers, employees themselves are a central part of the recruitment of older workers.
• The recruitment of older workers is likely to become more integrated into overall diversity initiatives.
• The use of social media to target older workers could become more prevalent, especially if generational differences in the use of these kinds of technologies start to fade.
The Aging Workforce—Recruitment and Retention ©SHRM 2014
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Implications for HR (continued)
• Organizations that currently indicate that it is “difficult” or “very difficult” to retain older workers compared to other workers provided a sense of what factors play the biggest role in meeting the needs of this demographic: offering flexibility in work location, career structure, work hours and scheduling, and type of employment and benefits attractive to older workers.
• Although most organizations do employ older workers who retired from other organizations or careers before joining their organization, it remains a fairly small percentage of their overall workforce.
• As the workforce ages and especially if skills shortages intensify, learning the best ways to incorporate the experience of older workers will be considered a competitive edge. Thus, HR professionals will likely be increasingly focused on recruiting and retaining the best older workers. This could influence all aspects of the employment from the type of flexible work arrangements organizations offer to employee benefits.
The Aging Workforce—Recruitment and Retention ©SHRM 2014
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Extent Increasing Age of Organization’s Workforce Has Prompted Changes in . . .
Note: n = 1,832-1,843. Respondents who indicated “Not applicable” were excluded from this analysis. Percentages may not equal 100% due to rounding.
Recruiting practices
Retention practices
General management policy/practices
8%
7%
4%
27%
26%
24%
24%
26%
31%
41%
42%
41%
To a great extent To some extent To a small extent Not at all
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Employee referrals
Internet (e.g., websites geared toward older audience)
Use of current older workers as recruiters
Temporary firms
Specify older workers are welcomed & encouraged to apply
Churches
Older workers’ job fairs
Retirement communities
We do not actively recruit older workers
33%
24%
14%
13%
13%
12%
11%
8%
7%
6%
4%
3%
2%
1%
1%
3%
54%
Recruiting Methods Used by Organizations to Directly Target Older Workers
Note: n = 1,074. Only respondents who indicated the increasing age of their organization’s workforce has prompted changes in their recruiting practices were asked this question. Percentages do not equal100% due to multiple response options.
The Aging Workforce—Recruitment and Retention ©SHRM 2014
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Social Media Resources Used by Organizations to Directly Target Older Workers in Their Recruiting Efforts
Note: n = 115. Only respondents who indicated their organization uses social media to target older workers were asked this question. Percentages do not equal 100% due to multiple response options.1 Other than SHRM Connect
Professional or association social networking site
YouTube
SHRM Connect
Google+
Foursquare
MySpace
Second Life
Other
74%
49%
28%
28%
10%
9%
8%
3%
3%
2%
1%
11%
1
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Exempt older workers
Nonexempt older workers
9%
10%
46%
48%
45%
42%
Extremely difficult/Difficult Neither easy nor difficult Easy/Extremely easy
Recruit
Retain
Exempt older workers
Non-exempt older workers
0.17
0.17
0.61
0.59
0.21
0.24
Extremely difficult/Difficult Neither easy nor difficult Easy/Extremely easy
Note: Percentages may not equal 100% due to rounding.
Exempt older workers
Nonexempt older workers
Difficulty Level to Recruit and Retain Qualified Older Workers Compared with Other Workers, by Exempt Status
The Aging Workforce—Recruitment and Retention ©SHRM 2014
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Executive (e.g., CEO, CFO, VP)
Management (e.g., director, manager, supervisor)
Salaried individual contributor/professional (e.g., analyst, nurse, engineer)
Administrative/secretarial
Labor, skilled (e.g., technician, mechanic, foreman)
Labor, low-skilled
25%
22%
22%
7%
25%
17%
46%
44%
47%
45%
46%
41%
29%
34%
31%
48%
30%
41%
Extremely difficult/Difficult Neither easy nor difficult
Note: Respondents who indicated “Not applicable” were excluded from this analysis.
n = 1,064
n = 1,123
n = 1,549
n = 1,464
n = 1,601
n = 1,300
Difficulty Level to Recruit Qualified Older Workers Compared with Other Workers, by Job Category
The Aging Workforce—Recruitment and Retention ©SHRM 2014
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Note: n = 242. Only respondents who indicated it is “Difficult” or “Very difficult” for their organization to retain older workers compared to other workers were asked this question. Percentages do not equal 100% due to multiple response options.
Factors That Contribute to Difficulties in Retaining Older Workers
My organization is unable to offer . . .
Flexibility in work location (e.g., working from home, satellite offices) 47%
Career flexibility (e.g., reduced responsibilities, job change/occupation shift) 45%
Work hour flexibility (e.g., reduced hours, job-sharing, phased retirement, part-year employment) 44%
Work schedule flexibility (e.g., changing starting and ending times periodically, compressed workweek )
43%
Flexibility in type of employment (e.g., consultant work, temporary work) 38%
Benefits attractive to older workers (e.g., different health care benefits, wellness plans) 34%
Other 15%
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Factors That Contribute to Difficulties in Recruiting Qualified Older Workers Compared with Other Workers, by Job Category
Note: Only respondents who indicated it is “Difficult” or “Very difficult” for their organization to recruit older workers compared to other workers were asked this question. Percentages do not equal 100% due to multiple response options.
Labor, low-skilled
Labor, skilled
Administrative/secretarial
Salaried individual contributor/professional
Management
Executive
25%
22%
33%
23%
24%
19%
17%
19%
17%
22%
25%
21%
36%
35%
30%
24%
24%
20%
(n = 177)
(n = 270)
(n = 103)
(n = 316)
(n = 340)
(n = 310)
Bias toward older workers in the hiring process
Unable to offer benefits
attractive to older workers
Unable to offer work schedule flexibility
The Aging Workforce—Recruitment and Retention ©SHRM 2014
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Unable to offer flexibility in
work location
Unable to offer work hour flexibility
Unable to offer career
flexibility
Labor, low-skilled
Labor, skilled
Administrative/secretarial
Salaried individual contributor/professional
Management
Executive
34%
39%
33%
28%
28%
23%
34%
37%
34%
31%
31%
23%
27%
30%
27%
25%
28%
20%
(n = 177)
(n = 270)
(n = 103)
(n = 316)
(n = 340)
(n = 310)
Note: Only respondents who indicated it is “Difficult” or “Very difficult” for their organization to recruit older workers compared to other workers were asked this question. Percentages do not equal 100% due to multiple response options.
The Aging Workforce—Recruitment and Retention ©SHRM 2014
Factors That Contribute to Difficulties in Recruiting Qualified Older Workers Compared with Other Workers, by Job Category (continued)
18
Unable to offer flexibility in type of employment
Lack of or few applications from older
workers for eligible positions
Other
Labor, low-skilled
Labor, skilled
Administrative/secretarial
Salaried individual contributor/professional
Management
Executive
31%
24%
28%
23%
21%
17%
60%
56%
48%
54%
47%
46%
15%
13%
20%
17%
17%
17%
(n = 177)
(n = 270)
(n = 103)
(n = 316)
(n = 340)
(n = 310)
Note: Only respondents who indicated it is “Difficult” or “Very difficult” for their organization to recruit older workers compared to other workers were asked this question. Percentages do not equal 100% due to multiple response options.
The Aging Workforce—Recruitment and Retention ©SHRM 2014
Factors That Contribute to Difficulties in Recruiting Qualified Older Workers Compared with Other Workers, by Job Category (continued)
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Older Workers Retiring from Other Organizations or Careers Prior to Joining Current Organization
To your knowledge, in your organization, are there older workers who retired from other organizations or careers before joining your organization?
Note: n = 1,528. Respondents who indicated “Don’t know” were excluded from this analysis.
What percentage of older workers at your organization previously retired from other organizations or careers before joining your organization?
Note: n = 925. Only respondents who indicated their organization has older workers who retired from other organizations or careers before joining their organization were asked this question. Respondents who indicated “Don’t know” were excluded from this analysis.
Series166%
34%
No
Yes
The Aging Workforce—Recruitment and Retention ©SHRM 2014
Are the older workers in your organization who retired from other organizations or careers working in full-time, part-time or a mix of full-time and part-time positions at your organization?
Note: n = 984. Only respondents who indicated their organization has older workers who retired from other organizations or careers before joining their organization were asked this question.
0%1-20%
21-40%41-60%61-80%
81-100%
1%90%
5%2%1%1% Part-time
Full-time
A mix
11%
43%
46%
20
Money
Enjoyment/occupying their time
Health care benefits
Social interaction
Challenge
Retirement benefits
Alternative career tracks for older workers
Wellness programs attractive to older workers
Other
72%
58%
45%
42%
28%
16%
13%
3%
8%
Reasons Retirees Return to Work1
Note: n = 994. Only respondents who indicated their organization has older workers who retired from other organizations or careers before joining their organization were asked this question. Percentages do not equal 100% due to multiple response options.1 Survey question: “In your view, why have these former retirees returned to work? (Check all that apply.)”
The Aging Workforce—Recruitment and Retention ©SHRM 2014
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Note: n = 1,737.
Extent Organization Attempts to Capitalize on and Incorporate the Experience of Older Workers
To a great extent
To some extent
To a small extent
Not at all
22%
39%
24%
15%
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Organizations That Have a Formal Strategy for Retaining and Recruiting Older Workers
RecruitRetain
Yes; 4%
No; 96%
Yes; 3%
No; 97%
Note: n = 1,739 Note: n = 1,740
The Aging Workforce—Recruitment and Retention ©SHRM 2014
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Steps Taken to Recruit or Retain Older Workers
Note: n = 99. Only respondents whose organizations have a formal strategy to recruit or retain older workers were asked this question. Percentages do not equal 100% due to multiple response options. 1 Opportunities that allow near retirees to ease into retirement while allowing the organization to retain good employees.
Percentage
Offered reduced hours or part-time positions to older workers 48%
Hired retired employees as consultants or temporary workers 40%
Started flexible scheduling (e.g., telework, alternative work schedules) 37%
Created positions/redesigned positions that allow bridge employment1 30%
Offered phased/gradual retirement 30%
Provided training to upgrade skills of older workers 29%
Provided opportunities for older workers to transfer to jobs with reduced pay and responsibilities
27%
Increased training and cross-training efforts to induce older workers to stay with or join the organization
24%
Increased recruiting efforts aimed at older workers who have the skills being lost due to retiring employees
23%
Offered wellness programs to attract and retain older workers 23%
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Note: n = 99. Only respondents whose organizations have a formal strategy to recruit or retain older workers were asked this question. Percentages do not equal 100% due to multiple response options.2 E.g., at home, “snowbird” employees who work in different locations at different times of the year. 3 E.g., offering deferred retirement option plans (DROPS), which allow workers who reach retirement age to continue working while receiving contributions to a retirement fund equal to the pension benefit they would receive if they were retired.
Percentage
Asked older workers for feedback via survey or other mechanism about what would encourage them to join or stay with the organization
23%
Started remote location programs to enable workers to work at the location most convenient for them2 14%
Started job-sharing 13%
Changed health care benefits to attract and retain older workers 10%
Established alternative career tracks for older workers 9%
Have not done/do not plan to do anything 8%
Changed retirement benefits to attract and retain older workers3 7%
Created new benefits to induce older workers to stay with or join the organization 6%
Put it on the radar screen, but essentially have done nothing else 3%
Other 5%
Steps Taken to Recruit or Retain Older Workers (continued)
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Started flexible scheduling (e.g., telework, alternative work schedules)
Offered reduced hours or part-time positions to older workers*
Hired retired employees as consultants or temporary workers*
63%
57%
67%
34%
43%
33%
0.03
Very effective Somewhat effective Not at all effective
Effectiveness of Various Steps Taken to Recruit or Retain Older Workers
* 0% indicated “Not at all effective.”Note: Only respondents who indicated their organization has taken a specific step(s) to recruit and/or retain 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.
n = 39
n = 44
n = 32
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Note: Only respondents who indicated their organization has taken a specific step(s) to recruit or retain older workers were asked to evaluate the step(s) taken. Percentages may not equal 100% due to rounding. Response options with n < 30 are not reportable (NR).
Percentage of Eligible Employees Using Each Option/Program Implemented by Organization
Offered phased/gradual retirement
Started flexible scheduling (e.g., telework, alternative work schedules)
Offered reduced hours or part-time positions to older workers
7%
4%
63%
46%
45%
13%
30%
30%
13%
19%
19%
3%
5%
2%
None 1% to 25% 26% to 50% 51% to 75% 76% or more
n = 47
n = 37
n = 30
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Demographics
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Demographics: Organization Industry
The Aging Workforce—Recruitment and Retention ©SHRM 2014
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.
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Demographics: Organization Industry (continued)
The Aging Workforce—Recruitment and Retention ©SHRM 2014
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.
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Demographics: Organization Sector
Note: n = 1,696
Publicly owned for-profit
Privately owned for-profit
Nonprofit organization
Government agency
Other
15%
49%
17%
17%
2%
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Demographics: Organization Staff Size
Note: n = 1,011
1 to 99 employees
100 to 499 employees
500 to 2,499 employees
2,500 to 24,999 employees
25,000 or more employees
16%
35%
24%
20%
6%
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n = 1,717
U.S.-based operations only 77%
Multinational operations 23%
Single-unit organization: An organization in which the location and the organization are one and the same.
39%
Multi-unit organization: An organization that has more than one location.
61%
Is your organization a single-unit organization or a multi-unit organization?
Does your organization have U.S.-based operations (business units) only, or does it operate multinationally?
n = 1,722
Demographics: Other
Multi-unit headquarters determines HR policies and practices
53%
Each work location determines HR policies and practices
4%
A combination of both the work location and the multi-unit headquarters determines HR policies and practices
43%
For multi-unit organizations, are HR policies and practices determined by the multi-unit headquarters, by each work location or by both?
n = 1,102
Corporate (companywide) 69%
Business unit/division 15%
Facility/location 16%
n = 1,101
What is the HR department/function for which you responded throughout this survey?
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SHRM Survey Findings: 2014 Older Workers Survey—Recruitment and Retention
The Aging Workforce—Recruitment and Retention ©SHRM 2014
• 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
Survey Methodology
Funded by the Alfred P. Sloan Foundation
34
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 Twitter @SHRM_Research
About SHRM Research
Project lead:Karen Wessels, researcher, SHRM Research
Project contributors:Evren Esen, SPHR, director, Survey Programs, SHRM ResearchJennifer Schramm, GPHR, manager, Workforce Trends and Forecasting, SHRM ResearchYan Dong, intern, SHRM Research
Copy editor:Katya Scanlan, SHRM Knowledge Center
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