(Tracy and Kate) We want to share information with you on what we see to be trends in the workforce and views on work and retirement; and at the end hear your thoughts on what impacts this might have for your work.
(Tracy) “A change is gonna come” – there are big shifts happening in population, the workforce, and in work itself. These changes may not be as dramatic as Sam Cooke hoped for in civil rights in his 1963 song – but these changes will be significant; and in a parallel to the ‘60’s, from early pain and burden, there may come hope and new opportunity. First let’s look at population:A huge wave of an aging population is going to hit us very soon. The first of the Baby Boom generation – born in 1946, is turning 65 this year – 30% more will turn 65 this year than last year. And this trend will continue until the last of the Baby Boomers – born in 1964, turn 65 in 2029. Until then, and beyond, our society will be getting older.Just as the population is aging, the workforce is aging – sometimes dramatically. “Early retirement” seems to have bottomed out in 1985 – since then the average age of retirement has been increasing, and the percent of those who are still working is increasing. The percent increase of those over 65 is increasing most dramatically, while those in the 18 – 24 age group is actually decreasing. By 2019, 25% of the workforce will be 55 or greater.50+ portion of the workforce: 1985 = 20% 2010 = 31% 2012 = 37% (Kelly)Workforce participation 55+: 1993 = 12% 2009 = 19%People working past 65: 1985 = 10.8% 2010 = 17.7%In the ten years from 2006 to 2016, the fastest growing part of the workforce will be those 65+, with an 84% increase. Workers in the 18 to 24 age span will actually decrease by 7%.Not only is the workforce changing, the nature of the kind of work we do is changing as well. We have moved from an agrarian economy to a manufacturing economy to now a knowledge-based economy. For many jobs, the rapid changes in technology means that “brains” beats “braun.”Improved health and declines in physical job demands leave older people better able to work today thanin the past (National Center for Health Statistics, 2010; Johnson, Mermin, and Resseger, forthcoming; Steuerle, Spiro, and Johnson, 1999). Two thirds of adults age 65-79 are able to work if they choose to (Grafona, McGonagle, & Stafford, 2007). Functioning and well-being in the third age.The rapid changes in technology mean people are more connected, have more flexibility in how they work, and sometimes are doing their jobs in radically different ways. If anything, this trend will accelerate in the years ahead.Meanwhile, the relationship between employer and employee has changed radically from the “old days” when someone expected to work for the same employer for their whole career. It started with mass layoffs at prestigious employers in the ’70s and ‘80s that were previously staid and stable. Jilted, employees began to think of building their career by moving from employer to employer. Now people are more likely to view themselves as free agents, and employee loyalty has to be earned.
Tracy:“Retirement” has become muddled term – It used to mean stopping work and starting leisure, but that has changed. A recent study by the Work and Families Institute(Nov., 2010)showed that 1 in 5 over 50 who are “retired” are working Half of those who are retired are working full-time One third of those who are working full-time are making more in “retirement” than before they “retired”! Clearly the meaning of the term retirement, and the reality, has changed.
Do these changes and the aging of population have to weigh on society and represent an increasing burden? Or could there be opportunity in this trend as well.The impending crisis is often painted starkly: an increased “dependency ratio”; not enough workers to do the work and pay taxes; the looming bankruptcy of social security; the total collapse of civilization as we know it!All possible. But perhaps there are a few silver linings in these dark clouds that are forecast on the horizon.There is real opportunity to tap the talent of a maturing workforce. The Boomer generation is the most skilled and educated group to come along. They are living longer and healthier lives. Many want to keep working, albeit sometimes in different ways than they were working before. The move to a knowledge economy and advances in technology make it possible to tap into a rich store of human capital – for those who think a bit creatively and have a new vision for the future. A change is gonna come – and it could be good!Economist Edward P. Glaeser describes the “silver lining” to older workers working longer this way: “While I feel sorry for every American who… wants to retire but can’t, there is a lot to like about this surge of experienced workers. Longer work lives mean more tax dollars, and that helps with America’s fiscal problems. Older workers also bring a diversity of perspectives and experience to the work force.” (NY Times, 11/20/2011)
In the second half of life there is a change in our internal vision. Realization that we are getting older. Realization that life isn’t infinite.Start thinking in terms of “time left” instead of just “time.” Reflect on where we are in life right now, what we have accomplished, what we hope to accomplish in life, what is important to us. Can be time of angst if we are not where we hope to be, but can also be a time of great hope and possibility.Engagement model of aging:Building on all three frameworks of successful aging, productive aging, and meaningful aging, our revised model focuses on engagement with four specific activities including work, volunteering, caregiving, and education or lifelong learning. While work, volunteering, and caregiving are central to the productive aging framework, we view education, in the form of lifelong learning, as key to engagement in these activities. Continued learning and education also serve to better both the individual and his/her social world.- “Engaged as We Age”, Boston College Sloan Center on Aging and Work, Feb., 2010 (p.10)Giving back and leaving a legacy become priorities for many. (Erikson’s “Generativity” stage…)An “Encore Movement” has been growing – led by Marc Freedman’s exploration of “encore careers”, where those who had worked in the for-profit sector could use their skills in new ways in jobs in non-profit and service. The approach has evolved to thinking more broadly about how one can use skills and build on them in new ways in a range of endeavors.The end of retirement as we know it:The disengagement paradigm has been resoundingly refuted. Engagement is important for the well-being of older citizens as well as for society. Are we witnessing the end of retirement as we know it? We think so. As Lillian Rubin (2007) said:All of us are now in uncharted territory, a stage of life not seen before in human history. And whether woman or man, whether working-class or professional, we are all wondering how we’ll live, what we’ll do, who we’ll be for the next twenty or thirty years.Rubin, L. B. (2007). 60 on up: The truth about aging in america. Boston, MA: Beacon Press.“Engaged as We Age”, Boston College Sloan Center on Aging and Work, Feb., 2010 (p.13)Sources: “Engaged as We Age”, Sloan Center, Boston College, Feb., 2010 Original typology provided by Friedmann & Havighurst (195
Kate –Career continuity: stay in place, but explore alternate ways of working. AARP found 38% of older workers want to phase into retirement gradually instead of leave the labor force altogether (AARP, 2005). These arrangements include part-time employment and flexible schedules. They often require changes in work assignments to accommodate new work schedules.Recombinant Career: builds on existing skills, but puts them together in a new way to create new opportunities. For example, sales person to fundraising role. Build on past experience, but apply skills to a new field. Career Changer: Merrill Lynch study found 76% plan to work in retirement.56% are interested in going into a completely new career.13% plan to start a new business.Encore Careers: combine meaning with social impact and a paycheck. Encore Careers survey (2008) found 5.3 million to 8.4 million people have moved from midlife careers to “Encore” careers. This represents 9.5% of the 44-70 age population. Additional 44.7% were interested in Encore Careers.Experiment through volunteering: In addition, popularity of books like Hermania Ibarra’s Working Identity stress the need to try out new things, through crafting experiments, developing new networks, experiential learning.
KateMuch of this process is Do it yourself. Some movement towards formal programs that promote these moves. Midternship program at SHIFT, programs like Teach for America, ExperienceCorps, Experienced Resources….other examples from the “Early adapters” slides
Tracy:There are myths that dominate thinking about older workers that can hold them back – But the reality is different: List the myths: short-timer, reduced intellect, inflexible, too high on the career ladder, not vigorous, health risk Realities: Older workers are more loyal, reliable, stick to the task Thinking: although older workers ability to solve problems quickly – on a timed test, goes down; Older workers have better higher-order thinking to solve complex problems, see connections and can integrate information – they can draw from experience Technical skills: You can “teach an old dog new tricks” if you give them the training – Technology has come of age during Boomers’ lifetimes, and they are comfortable with it – Much of technology has changed even in the last five years, so in some ways all generations of workers need to learn new things. Inflexible: Older workers are more likely to see multiple perspectives, stay calm in a crisis, and allow for compromise. One thing that sometimes can give a perception of lack of flexibility is that they tend to be less tolerant of office politics and are more likely to speak their mind. Career ladder – Many older workers are looking are work and their careers differently, and are more interested in jobs where they can use their skills and be appreciated than career advancement Health risk, sick too much: Older workers have lower absenteeism and are more conscientious on the job. Although health care costs do tend to rise with age, as a cost factor, these workers tend to have fewer dependents, so medical costs to the organization are lower.“today’s oldies are in far better shape than those of earlier generations. If Mick Jagger and Keith Richards can go on touring into their late 60s, their contemporaries can at least be trusted with a desk and a computer. People’s muscles do weaken with age. But few jobs require brawn these days: in America 46% of jobs make almost no physical demands on workers, reckons the Urban Institute, a think-tank. Some older workers are reluctant to embrace new technology (though that surely does not apply to Bill Gates and Steve Jobs, both in their mid-50s). But they make up for this in different ways. Studies suggest that older workers are better at jobs that require personal skills, a growing proportion of the total. Employers may be mistaken if they assume that older workers lack the animal spirits to make a go of new ventures. A recent study by the Kauffman Foundation, a research body, found that Americans aged 55-64 have launched more businesses than those aged 20-34 in every year since 1996. Conscientiousness also tends to rise with age: older workers have lower levels of absenteeism than younger colleagues.” – The Economist, Apr.7,’11
Tracy:There are some myths about older workers where the reality is different. But there are some real barriers and hurdles that older workers face that must be dealt with. There are perceptions in society that hold back older workers from being selected for jobs or going back to work. Marginalized – pushed aside in discussions, since they won’t be here long Passed over for training – not investing in the skills of older workers and keeping them current Trivialized – particularly in volunteer assignments – being given menial tasks that do not use the skills of older workers. Risk of long-term unemployment: In this recession, while the unemployment rate of older workers has been somewhat lower than other groups, nearly half of those who lose their jobs are long-term unemployed, far more than younger workers. Age discrimination in employment – Illegal, but often practiced in how a job is defined and how selection decisions are made Age-ism: Negative stereotypes throughout society – Sometimes older workers are their own worst enemy in this: “Senior moments”, “Old” jokes, categorizations and references – perpetuating images of old age and retirement: “golden years”, “out to pasture”, etc.
Tracy – Employers can match up what older employees are looking for in an ideal job with workplace practices that can attract and retain older workers and make the most of the maturing workforce. Many of strategies aimed at older workers can be of benefit to everyone and build a stronger workforce more broadly: Personal & professional development Meaningful work; opportunity for ongoing training and development Positive workplace culture Contribution valued; appreciation; camaraderie; chance for socialization Flexibility Build a nimble workforce – flexible assignments, time off, seasonal or variable schedules, etc.Workplace flexibility that gives older workers more control and helps them shape their career and find balance in their life is also an asset. Things like: Flex-time, Results-Only Work Environment (ROWE) Reduced time (part-time, part-year, on call) Flexible leave (to help meet care giving obligations) Flex careers (leaves, sabbaticals, phased retirement) Flex place (telecommuting, virtual teams, snow-bird programs)Companies can take advantage of older workers who can jump in to fill the gaps, provide special expertise or pass on knowledge. Some examples: Rehiring retirees to come in to work during peak periods, subject to pension limitations – The “retiree casual” program at The Aerospace Corporation in CA Bringing back former employees as consultants – usually after a break in service of 6 months or more. Doing targeted hiring of older workers to work part-time for peak hours (Fidelity) or for peak seasons (LL Bean) Using outside firms that specialize in providing experienced workers for project or interim assignments – particularly for specialized skills or knowledge of the industry – in the Twin Cities are Experienced Resources - in healthcare, and Vallon – now Talencio – for the life sciences industry. John Deere has set up a program of special assignments and job rotation for older workers – both to build skills, and also transfer knowledge. U.S. Bank has reached out to its alumni, both to build positive relations in the industry and community at large, and also as a source of potential talent. Wells Fargo has formed the Boomer Connection in the Twin Cities, an employee resource group to raise awareness, provide support and development and help build business for this segment.
Kate“The late 20th Century pattern of working until about age 65 and then spendingone’s remaining years in the leisure pursuits is very likely over. It’s been forecastedfor many years that if the huge Baby Boom generation retired like theirpredecessor generations there would not be enough workers to support thatlarge a number of retirees. In light of new data about Early Boomers’ plans,perhaps that dire forecast needs to be revised.Early Boomers are going to be the first cohort of older Americans to find thatmost of them can’t retire at 65 or even 66 when full Social Security benefits apply.Many will keep working for compelling personal financial reasons and some formore altruistic reasons such as supporting their adult children or grandchildren.Others will want to continue in the workforce simply for the intrinsic value andsatisfaction of their work. Similarly, the satisfaction of working for a worthygoal, such as educating their grandchildren, may bring a new sense of purposeto many Early Boomers. That may have the secondary effect of keeping themhealthier and adding years to their lives. But the net effect of those additionalworkers and their consequent additional spending will surely be a benefit tosociety in terms of boosting future economic growth.” -MetLife Mature Market Institute, “The Early Boomers” , Sep., 2010
Encore years rethinking work hcl
The Encore Years: Rethinking Work for a Changing World Tracy Godfrey Kate Schaefers Hennepin County Library Fall, 2011Godfrey & Schaefers October, 2011 1
Rethinking Work: Session Topics• Changes: in population, workforce and work itself• New ideas on work and retirement• Ideas and resources for your work and career• How employers can make the most of the maturing workforce• Possibilities for what’s ahead in this new environment Godfrey & Schaefers October, 2011 2
Population“A Change Is Gonna Come” Workforce Work BondAging Population• Boomers are approaching retirement and people are living longerAging Workforce• The workforce is older & people are working longerWork Itself Is Changing• More Knowledge Economy – vs. ManufacturingLoosening the Employer/Employee Bond• From lifetime employment to “free agents” Godfrey & Schaefers October, 2011 3
The end of retirement as we know it “Retired”• What words and images come to mind?There are strong images of “retired” in the media,entertainment, humor and general society –sometimes idealized, and not always positiveOld, elderly, leisure, without a care, idle busyness, relaxed,golfing, card-playing, traveling, rocking chair, forgetful, senile,inactive, fragile, health concerns, technologically challenged,inattentive, disengaged Godfrey & Schaefers October, 2011 4
History of RetirementVon Bismarck – Germany - 1883 Social Security Act of 1935 Sun City - 1960 1900’s 1930’s 1960’s TODAY Godfrey & Schaefers October, 2011 5
“Retirement” – Old Myths vs. New realities and visionWorking in Retirement• 1 in 5 who are “retired” are working, some full-time• Retirement is no longer a stopping point.• People see work as part of what they continue to want to doMost people expect to work in retirement – but probably in a different way Godfrey & Schaefers October, 2011 6
A “New Stage” Has Emerged 1900 Now 20 - 40 40 - 55 55 - 70 70 – 85+Longer Lives, More Years in Middle • On average, people live 18 years beyond 65 • Frail elder stage pushed out a decade or more • People age 60-75 remain active, healthy Godfrey & Schaefers October, 2011 7
Shift to this new reality: Positive or Negative? – Maybe Both Crisis OpportunityMore old people could People who are healthyput a strain on and vital can continueresources, with fewer to work, stay engaged,people available to do earn more, contributethe work that needs to to society and not be abe done. drain on the systemGodfrey & Schaefers October, 2011 8
What Are The Rewards Of Working? Love and work are the cornerstones of our humanness ~ Sigmund FreudGodfrey & Schaefers October, 2011 9
What Are The Rewards Of Working? • Income • Identity • Benefits • Power & Influence • Status • Structure & Routine • Direction & Meaning • Visibility • Utility • Sense of Identity • Intellectual Stimulation • Creative Outlet • Challenge • Social Interaction • Excitement • Recognition • Relationships10Godfrey & Schaefers October, 2011 10
Keys to Your “Ideal Job” AARP Survey of Workers over 501. Personal & Professional Development – Use talents & skills, give back and learn new things2. Workplace Culture – Friendly environment, relationships, respect3. Flexibility – Control - Flexibility on how to do work – Options for part-time, time off, seasonal work4. Finances – Fair pay; Benefits; Pension; 401(k) Godfrey & Schaefers October, 2011 11
“New Stage” Models include Work Shifting vision in the second half of life: Reflecting and seeing the world with new eyes Models: • Engaged Aging • Giving Back • Encore Movement Purpose, meaning, contribution and legacy become more important as we age – and the workplace is an outlet for these Godfrey & Schaefers October, 2011 12
Picture Yourself Choose an image card that represents where you are right now. Choose another image card that represents where you’d like to be in 5 years.Godfrey & Schaefers October, 2011 13
Images Five Years From Now: Reflection Questions1. Describe the scene – what is going on?2. Why do you think you were drawn to this particular image?3. What thoughts do you have for how to connect the image to the original question?Godfrey & Schaefers October, 2011 14
Building on Your Peak ExperiencesExercise:Remember a peak experience – a time you were really engaged – when you did something well and were proud of it• Write it down• Tell the story to others• Listen for what skills and abilities you usedGodfrey & Schaefers October, 2011 15
Career Ladder vs Career Lattice Defined Steps – Moving laterally, not just Moving Up up – In & out of fieldsGodfrey & Schaefers October, 2011 16
Rethinking Ways To Work• Career continuity – Keep working where you are• Recombinant Career – combine skills to use in a new way, in a new setting• Career changer – back to school, training or apprenticeship or internship to move into a new field• Encore” career – work that combines meaning, social impact, and a paycheck• Volunteer or community roles At this point, much of this is being done by individuals, with few established optionsGodfrey & Schaefers October, 2011 17
Workers: Pathways to New Work• Formal Education – Return to school – Obtain a credential• Informal, On-the-job Learning – Stretch assignments to strengthen skill sets – Crafting Experiments (Ibarra’s concept of Working Identity) – Volunteering, civic engagement – Explore an internship• Alternative Work Engagements – Project assignments – Temporary, flexible work arrangements• Rebranding – Understand and build on transferrable skills Godfrey & Schaefers October, 2011 18
Reality Check: Myths & Hurdles Older Workers Encounter Myths RealitySeen as: Shown to be:Not committed Loyal, reliableLess productive Work smarterUnable to learn Deal with complexityInflexible Able to compromiseNot vigorous Conscientious, engagedGodfrey & Schaefers October, 2011 19
Reality Check: Myths & Hurdles Older Workers EncounterReal hurdles embedded in society must be confronted and overcome:• Marginalized in work discussions• Passed over for training and new assignments• Trivialized: Given routine or menial tasks• Risk of long-term unemployment• Age discrimination in employment and on the job• “Age-ism”: Stereotypes, assumptions, attitudes, humor Godfrey & Schaefers October, 2011 20
Strategies for employers to attract & retain older workers Older Workers Want: Employer Strategies1. Personal & 1.Meaningful work that professional keeps people engaged development2. Positive workplace 2.Supportive culture organizational culture3. Flexibility 3.Build a nimble workforce4. Financial Fairness 4.Shape rewards for the work that is done Godfrey & Schaefers October, 2011 21
Moving Forward - Mapping Your Own Path• Imagine the future you want• Build on your peak experiences• Plot out how you want to proceed• Acknowledge the challenges• Know you are not alone – gather community and friends along the way• Find support and resourcesGodfrey & Schaefers October, 2011 22
The End of Retirement as We Know It“All of us are now in uncharted territory, astage of life not seen before in humanhistory. And whether woman or man,whether working-class or professional, weare all wondering how we’ll live, what we’lldo, who we’ll be for the next twenty orthirty years.” - L.B. Rubin (“The truth about aging in America”, 2007)From “Engaged as We Age”, Sloan Center for Aging, Boston College, Feb., 2010, p. 13Godfrey & Schaefers October, 2011 23
About Us Tracy Godfrey Kate Schaefers is a seasoned HR Ph.D. LP, is owner of professional with more Encore Life Planning. than 25 years She is a licensed experience, leading psychologist & certified teams & consulting on retirement coach. She recruiting and selection offers coaching andfor major Twin Cities corporations. consultation to individuals andTracy holds an MBA and Senior organizations on issues related toProfessional, Human Resources work in the second half of life. She is(SPHR) certification. He is a member an adjunct faculty member at theof the Leadership Group of the Vital University of St. Thomas Dept. ofAging Network (VAN) Organization Learning and Development and Graduate School of Professional Psychology firstname.lastname@example.org email@example.com Godfrey & Schaefers October, 2011 24
Link to Today’s Presentation on SlideShare http://www.slideshare.net/TracyGodfrey/ encore-years-rethinking-work-hclGodfrey & Schaefers October, 2011 25
The Encore Years: Rethinking Work for a Changing World Tracy Godfrey Kate Schaefers Hennepin County Library Fall, 2011Godfrey & Schaefers October, 2011 26
Examples from “Early Adapters”• “Prime Time” – First Horizon – flexible work option of 20 to 32 hours/week - prorated pay - retain full benefits, including health insurance (A)• Fewer Hours – Fidelity – Recruits 55+ for part-time in peak hours (B)▪ Flexible work schedules – General Mills R&D – Accommodations include compressed work weeks, flexible hours, as well as part-time work (A)• Flexible Location – Boston College – Telecommuting options for IT (B)▪ “Retiree Casual” – The Aerospace Corporation – Re-hire retirees to work part-time to 1000 hr. pension limits–as consultants, proj. mgrs, indiv. contributors, etc. (A)▪ “QUEST: Qualified Employees Seeking Transfer” – Cornell University (C)▪ Special assignments/Job Rotation – for mobility & skill-building–Deere & Co▪ Phased Retirement – Pitney Bowes Engr. Dept. – variety of shapes, including condensed workweeks, telecommuting & reduced workweeks (B)▪ Apprenticeship Program – Boston Scientific – Pair up highly-skilled veteran craftsmen & apprentices for knowledge transfer and succession planning. (A)▪ Retirement Planning Seminars – Weyerhaeuser – Paid time away for workers over 50 for a 3 day retirement planning workshop, with partners (e.g. spouses)(A)• Cross-Generational Networking Circle – MITRE – for knowledge-sharing• “Encore Fellows” – Civic Ventures pilot in S.F. Bay Area – Executives from For-Profit sector working in Non-Profit assignments• Boomer Connection – Wells Fargo resource group A: MetLife; B: Sloan Center, Boston College; C: AARP Top 50 Employers Godfrey & Schaefers October, 2011 28
ResourcesCivic Venture: www.civicventures.org Information on “encore careers”SHiFT: www.shiftonline.org Local network supporting people in mid-life who seek greater meaning in life and workThe Sloan Center for Aging and Work, Boston College: http://www.bc.edu/research/agingandwork/MN Governor’s Workforce Development Council – Older Workers Workgroup: http://www.gwdc.org/committees/older_workers_workgroup/MN career, education & job resource: http://www.iseek.org/ - Collaboration between government (MN DEED) & education (MN SCU)MetLife Mature Market Institute: www.metlife.com/mmi/AARP Foundation – Worksearch site: http://foundation.aarp.org/WorkSearch/“Encore: Finding Work That Matters in the Second Half of Life,” Marc Freedman (Public Affairs Paperbacks, 2008)“The Big Shift: Navigating the New Stage Beyond Midlife,” Marc Freedman (Public Affairs Paperbacks, 2011)“Working Identity: Unconventional Strategies for Re-inventing Your Career,” Herminia Ibarra (Harvard Business School Press, 2003)PBS: “Retirement Revolution”: http://www.pbs.org/wttw/retirementrevolution/watch/ (Sep., 2009, 2 hr. program) Godfrey & Schaefers October, 2011 29