Tuesday, May 10, 2011
Tuesday, April 19, 2011
Baby Boomers and Retirement
http://www.redlasso.com/ClipPlayer.aspx?id=cea130e8-977e-40b8-934f-318cde286937
This is an interesting news report about baby boomers, what they are doing about retirement and what their actions are doing to the workforce.
This is an interesting news report about baby boomers, what they are doing about retirement and what their actions are doing to the workforce.
Tuesday, April 12, 2011
Tuesday, April 5, 2011
Baby boomers turning 65 on January 1 will dramatically impact the workplace as they retire
The retirement of the 76 million-member baby boom generation — who begin turning 65 on January 1 — will influence the US workforce for years to come. According to David Reville, Communications Director of AARP Vermont, the state, with one of the oldest populations in the nation, will feel the impact of retiring baby boomers more dramatically than elsewhere. A new poll highlights this effect on the workforce and suggests some ways in which employers will address the changes.
To help organizations meet this challenge, the Society for Human Resource Management (SHRM) and AARP are teaming up to provide resources and strategies.
In a national poll released by SHRM and AARP, a majority of organizations described the loss of boomers and their highly valued talent from the workforce as a potential or serious problem. The impact in Vermont, with some 15 percent of its population already over age 65, will be more dramatic as those number grow each year.
Almost six out of 10 organizations responding to the SHRM-AARP Strategic Workforce Planning Poll implemented or plan to implement programs in preparation for boomer retirement. Training has increased and flexible scheduling has been added at about three-quarters of the organizations that have begun planning. Increased recruiting and succession planning have begun at 60 percent of them, and more than half of these organizations indicated that they have created benefits to entice older workers to stay in the workforce, including pension plans with provisions for older workers and long-term care benefits.
This is welcome news to boomers who, according to AARP’s Staying Ahead of the Curve report, intend to remain working past traditional retirement age.
Whether the baby boom generation retires as planned in the next 10-plus years or boomers remain in the workforce, the workplace will be redefined.
“The next years are critical to addressing the challenges associated with an aging U.S. workforce,” SHRM Interim President and CEO Hank Jackson said. “HR professionals are helping employers stay flexible and competitive and helping knowledgeable older workers stay engaged.”
With a common interest in issues related to workers age 50 and older, AARP and SHRM also are collaborating on education and raising awareness about the implications of an aging U.S. workforce.
“We look forward to working with SHRM on a number of initiatives to help ensure that the value of older workers is recognized,” said Barry Rand, CEO of AARP. “Innovative approaches are needed to retain and engage the age 50 and older employee in an increasingly diverse workforce.”
Rand and Jackson examined “HR and the Aging Workforce” in a special supplement to the October issue of SHRM’s HR Magazine.
The poll of 381 randomly selected HR professionals was conducted in early July by SHRM. It also found that 48 percent of respondents’ organizations have not conducted — and had no plan to conduct — a strategic workforce analysis to identify the impact of their retiring workers or they believed it was not applicable to their organizations.
To respond to this opportunity for education, SHRM is co-sponsoring and promoting among its 250,000 members AARP’s free online Workforce Assessment Tool. (http://www.aarpworkforceassessment.org/us/index.cfm) This unique planning resource, which already has been used by more than 1,500 companies, provides a snapshot of an organization’s workforce and demographics and the programs in place to leverage the talents and experience of its older workers.
AARP and SHRM are considering other initiatives to increasingly engage HR professionals in the campaign to keep older workers in productive workforce roles as long as possible and to plan for the transfer of their knowledge and skills long before they retire.
Thu Nov 18 2010
Thursday, March 17, 2011
An Aging Workforce's Effect On U.S. Employers
The aging workforce creates a challenge for employers seeking to retain top-notch people, and an opportunity for workers who may want to earn a few extra bucks in retirement.
About 76 million baby boomers, or those born between 1946 and 1964, are set to retire in large numbers by the end of the decade. Boomers make up about one-third of the U.S. workforce, and there aren't enough younger workers to replace them. Labor shortages in key industries will force a radical rethinking of recruitment, retention, flexible work schedules and retirement.
"If properly engaged, mature workers will provide significant solutions and cost savings at a time when global competition will exert a force the likes of which has never before been seen," the Conference Board concluded in a recent report. "Failure to investigate or recognize the issues surrounding the maturing workforce will pose a threat to future growth and productivity."
Researchers Lynne Morton, Lorrie Foster and Jeri Sedlar say industries now suffering from a skills shortage include energy and health care. The National Association of Manufacturers says the talent crunch soon will be felt in technical and scientific fields. While some wouldn't see this as a bad thing, half of the federal civilian workforce will be eligible to retire within five years.
The U.S. workforce grew at a rate of 30% in the 1970s, and at 12% in the 1990s through the present. But it's expected to slow to about 3% and to level off by 2010.
By 2010, the number of workers aged 35 to 44--or those typically moving into upper management--will decline by 19%; the number of workers aged 45 to 54 will increase 21%; and the number of workers aged 55 to 64 will increase 52%.
The gray-haired demographics aren't limited to the U.S., either. The number of workers aged 35 to 44 is expected to decline by 27% in Germany, 19% in the U.K. and 9% in Italy. In Japan, that age group is expected to shrink by 10%, and by 8% in China.Many boomers say they plan to balance work and leisure in retirement.
AARP and others report that 79% of baby boomers say they don't plan to stop working at age 65, creating a "working retirement." The reasons are both financial and personal.
Many baby boomers haven't saved enough to kick back full time in retirement and will continue to work to meet basic expenses. But others say they plan to continue working--even if it means cutting back on the hours--because they want to be engaged in their fields.
"Today's linear life plan of distinct years for education, work and leisure is becoming obsolete," the researchers conclude. "In its place is emerging a cyclical and phased life plan in which education, work and leisure exist in different proportions throughout life. Boomers want to work on their terms, doing work customized to their needs."
The researchers found that some corporate policies hinder efforts to adapt to the aging workforce. Still, most companies say they hire for ability and willingness to work. A few employers say they're "hiring wisdom" when hiring older workers. Gray-haired workers are viewed as reliable, settled, compassionate and honest.
Some companies have set up a Casual Worker Program that allows them to hire or reemploy workers who would receive limited benefits and no pension. Others invite grandparents to work in the company child-care center, and some offer special health screenings pitched to older workers, such as bone density tests.
Many companies seek to develop ways for older workers to pass their knowledge and skills on to younger workers. Some make a concerted effort to integrate older and younger workers. Some financial-services companies have discovered that prospective clients often feel more comfortable discussing money with an older representative and, therefore, make an effort to retain and hire those with extensive experience.
"IBM...has long been a leader in such strategic workforce issues as diversity, flexibility and work/life balance," the researchers say. "The company also wants to maintain an on-demand workforce that mirrors its customers. For some, IBM has been concerned about the shortage of IT workers and has focused on how to address potential workforce and knowledge needs."
Employers providing benefit programs must comply with three detailed and complex laws--the Employee Retirement Income Security Act, the Age Discrimination in Employment Act and the Tax Code. Future adjustments may be needed.
"Many pension plans are outdated for today's changing demographics and may need to be restructured," the researchers say.
The New York-based Conference Board is a nonprofit, independent-membership organization that conducts research to assess trends and make forecasts. The study, "Managing the Mature Workforce," was conducted with the assistance of major companies, including IBM (nyse:IBM - news - people ), BP (nyse: BP - news - people ), Chevron (nyse:CVX - news - people ), CVS (nyse: CVS - news - people ), Ford Motor(nyse: F - news - people ), GlaxoSmithKline (nyse: GSK - news -people ) and JP Morgan Chase (nyse: JPM - news - people ).
Tuesday, March 15, 2011
How To Manage Older Workers
The work force is aging as baby boomer move toward retirement. Gen X managers need to learn how to motivate and manage this talent pool of older workers. Both generations have very different views of the other and will need to learn how the other generation operates. It is up to the managers, Gen X or otherwise, to take the lead and create the climate in which older workers will remain engaged and productive.
Here's How:
1. Throw out all your assumptions.
You may think older workers are harder workers or that they are difficult to train. Get rid of your stereotypes. Your older workers are individuals just like everyone else in your group. Treat them as such.
You may think older workers are harder workers or that they are difficult to train. Get rid of your stereotypes. Your older workers are individuals just like everyone else in your group. Treat them as such.
2. Remember the range of ages.
You wouldn't treat a seasoned manager of 35 the same as a 21-year old right out of college. Don't think the 15 year gap is any less in your older workers. A worker at 55 and a worker at 70 have different goals and needs. As a manager, you may need to look at groups getting ready to retire (55-62), retirement age and still working (62-70), and older worker who want to keep active or who need to work (70+). Each group presents different management challenges.
You wouldn't treat a seasoned manager of 35 the same as a 21-year old right out of college. Don't think the 15 year gap is any less in your older workers. A worker at 55 and a worker at 70 have different goals and needs. As a manager, you may need to look at groups getting ready to retire (55-62), retirement age and still working (62-70), and older worker who want to keep active or who need to work (70+). Each group presents different management challenges.
3. Communicate, communicate, communicate
Don't assume that the older worker knows what you expect of them. They don't have the same background as you. Be very clear what you want done and what the measurements of completion and of success will be. "Bill, take care of that for me" is not enough. Try "Bill, I need you to prepare the department's budget for the next fiscal year. Use the numbers from last year and add 10% on everything except training which should go up 15%. I need it by Tuesday".
Don't assume that the older worker knows what you expect of them. They don't have the same background as you. Be very clear what you want done and what the measurements of completion and of success will be. "Bill, take care of that for me" is not enough. Try "Bill, I need you to prepare the department's budget for the next fiscal year. Use the numbers from last year and add 10% on everything except training which should go up 15%. I need it by Tuesday".
4. Value their life experience.
Your older worker have been around. They have seen a lot. They have done a lot. Recognize the value of this experience. Learn from it. Encourage the younger members of your team to learn from it. The lessons from the "school of hard knocks" are invaluable.
Your older worker have been around. They have seen a lot. They have done a lot. Recognize the value of this experience. Learn from it. Encourage the younger members of your team to learn from it. The lessons from the "school of hard knocks" are invaluable.
5. Train them.
Older workers need training as much as younger workers - just as much, just as often. The subject of the training may be different, but the need is the same. And don't believe that older workers can't be trained. They are just as receptive as their younger peers.
Older workers need training as much as younger workers - just as much, just as often. The subject of the training may be different, but the need is the same. And don't believe that older workers can't be trained. They are just as receptive as their younger peers.
6. Meet their security needs.
Older workers probably need benefits more than the younger workers. They need medical coverage, vision care, and financial planning. Make sure your company's benefits plan meets their needs too.
Older workers probably need benefits more than the younger workers. They need medical coverage, vision care, and financial planning. Make sure your company's benefits plan meets their needs too.
7. Motivate them.
Any manager's key job is to motivate their employees. Older workers have different motivational "hot buttons" than their younger counterparts. Opportunity for advancement is probably less important than the recognition of a job well done, but see step #1 above.
Any manager's key job is to motivate their employees. Older workers have different motivational "hot buttons" than their younger counterparts. Opportunity for advancement is probably less important than the recognition of a job well done, but see step #1 above.
8. You don't have to "be the boss".
The older workers grew up in a hierarchical society. They know you are the boss. Most of them were bosses at some point too. Get on with leading the department and don't waste time posturing. It won't impress them anyway. They've seen it all before.
The older workers grew up in a hierarchical society. They know you are the boss. Most of them were bosses at some point too. Get on with leading the department and don't waste time posturing. It won't impress them anyway. They've seen it all before.
9. Be flexible.
Your older workers, depending on age group (see #2 above) may want flexible hours or a shorter work week. For those of them that need that, be willing to be flexible. You need their talent and technical skill so do what you need to to keep it available. Do not, however, assume that all older workers want to go home early. Some may be motivated by working the same long, hard hours that they have always done.
Your older workers, depending on age group (see #2 above) may want flexible hours or a shorter work week. For those of them that need that, be willing to be flexible. You need their talent and technical skill so do what you need to to keep it available. Do not, however, assume that all older workers want to go home early. Some may be motivated by working the same long, hard hours that they have always done.
10. Use them as mentors.
Let them coach and encourage the younger workers. Most older workers have a wealth of knowledge and experience that they would love to pass on. Give them the opportunity to do so and your entire organization will benefit.
Let them coach and encourage the younger workers. Most older workers have a wealth of knowledge and experience that they would love to pass on. Give them the opportunity to do so and your entire organization will benefit.
Tuesday, March 8, 2011
Impact of the Aging Workforce on the Technology Industry
How Retiring Baby Boomers Affect the Job Market
Overview
By the year 2010, a large percentage of the workforce will
be retiring. This is causing what has been referred to as a
"huge knowledge gap". As this generation approaches their
retirement years, companies are starting to change the ways
that they define work. This outflow of competent workers
also opens up many new job opportunities, even during a
time when the economy is not growing.
Changes in the Workplace
One of the interesting ways that the aging workforce is
changing the way we work is by bringing a measure of
flexibility to the office. Companies are finding that
employees in this age group require different work
conditions. They are less interested in working long
hours, less defined by their careers, and much more
interested in part time work. As a result of this trend,
"quality of life" has become a key phrase. Telecommuting,
job sharing, part time work and flex scheduling can be
partially attributed to this generation's influence.
Alliance for an Experienced Workforce
Within the past few years, nearly two dozen industry
associations have grouped together to create a new
organization, the Alliance for an Experienced Workforce.
This group works with employers to find creative ways
to keep the retiring baby boomers working. Some of the
popular options include more training, to keep the skills of
the older workers current and relevant to the changes
in technology. Other suggestions include enticing older
tech workers to stay in the workforce by offering options
like job-sharing, flex-time, and part-time work.
Financial Considerations
The unfortunate reality for many baby boomers is that full
retirement is not financially viable. As a result, many will
need to continue working, at least part time, to support
themselves.
Fewer Workers = More Job Openings
As more baby boomers retire, there are fewer replacement
workers to take over. Even if the economy is in a
downturn, overall, there will still be a need for specialized
workers to take over these new openings. According to
the Bureau of Labor Statistics, during the next decade,
one of highest in-demand fields will be computer services.
When Supply Does Not Equal Demand
In the labor market, and specifically in the technology
job market,when there are jobs available and not enough
workers, wages go up to attract and retain the necessary
workers. This will mean that more people will then
become interested in jobs in technology. Because
companies need workers, and because it can take a
long time for new workers to get the skills needed, tech
companies will put pressure on the US government to
increase the number of new visas approved in a given
year. Most notably, the H-1B visa, since this is the
one most impacted by the tech industry.
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