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Boomers are rethinking work as the workforce ages. People are living longer, and the extra 15 years are being added in the middle, with more active in healthy years. The question is how this "new ...

Boomers are rethinking work as the workforce ages. People are living longer, and the extra 15 years are being added in the middle, with more active in healthy years. The question is how this "new stage" can be lived most fruitfully, and how employers can make most productive use of this pool of talent.
- April, 2011 - Godfrey & Schaefers. For more detail, email tgodfrey4630@msn.com

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  • Very nice presentation. I especially like the use of the Economist article...
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  • Excellent information and ideas. Thanks for sharing this, Kate and Tracy!
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Rethinking work mgs_4-29-11-final Rethinking work mgs_4-29-11-final Presentation Transcript

  • Rethinking Work for a Changing World Tracy Godfrey Kate Schaefers MN Gerontological Society Conference April 29, 2011Godfrey & Schaefers April, 2011 1
  • Rethinking Work: Session Goals• Provide information on demographics on the aging population and workforce• Trends and changes in thinking on work and retirement• Ideas of what older workers and employers can do• Discuss broader implications of these trends across other aspects of society Godfrey & Schaefers April, 2011 2
  • “A Change Is Gonna Come”: Population Workforce Aging Population Work• The number of boomers reaching “retirement” age will grow dramatically in the years to come. – 30% more will turn 65 this year than last year• People are also living longer• Number of Adults age 65+ Will Continue to Grow – 79% Increase between 2010 and 2030 – By 2030, those over 65 will make up 19.3% of population• In Minnesota, numbers of people aged 65+ is expected to total 1.3 million in 2030 Sources: Administration on Aging, 2009, Ecumen 2007 Age Wave Study Godfrey & Schaefers April, 2011 3 View slide
  • Population Age Distribution Has Changed Workforce Work Minnesota% of Population 1980 vs. 2007Over Age 2050 47.040 37.8 1980 200730 24.5 21.620 16.6 17.3 10.0 10.410 7.6 7.2 0 20-40 40-45 45-50 50-65 65+ Source: Gillaspy & Stinston, “The New Normal”, Nov., ‘10 Godfrey & Schaefers April, 2011 4 View slide
  • How old is “Old”? Population Workforce The answer depends... Work Survey of Baby Boomers: Age Group “Old”• Early Boomers 78 (1946 – ’51)• Middle Boomers 75 (1952 – ’58)• Later Boomers 71 (1959 – ’64)Generally, “Old” seems to be at least 5 years older than you are. Source: “Boomers in the Middle, MetLife Mature Market Institute, 2010Godfrey & Schaefers April, 2011 5
  • “A Change Is Gonna Come”: Population Workforce Work Aging Workforce• Workers over 50 are a growing portion of the workforce (now more than 30%)• Labor force participation of those 55+ is increasing• More people are working past age 65 (now 18%)• In the U.S. from 2006 to 2016, workers 65+ will be the fastest growing age group (+84%); ages 55 -64 is next(+37%); workers 16 – 24 will decrease by 7%; Minnesota trends show this same pattern.• If trends continue, adults age 55 & up will be 25% of the workforce in 2019. Godfrey & Schaefers April, 2011 6
  • In Minnesota, 30 Percent More Population WorkforceWorkers Turned Age 62 in 2008 Work - Trend Will Continue Until 2022 60,000 Worked Within Past 5 years 50,000 40,000 30,000 20,000 10,000 0 7/05 to 7/06 to 7/07 to 7/08 to 7/09 to 7/10 to 7/11 to 7/06 7/07 7/08 7/09 7/10 7/11 7/12 Year Turning Age 62 2005 ACS Source: Gillaspy & Stinston, “The New Normal”, Nov., ‘10Godfrey & Schaefers April, 2011 7
  • “A Change Is Gonna Come” Population Workforce Work is changing Work• Move to a Knowledge Economy – from a manufacturing economy• Global economy• More technology, mobility: Internet, WiFi, Smart phones, Social media• Networked – closer links across geography - VirtualGodfrey & Schaefers April, 2011 8
  • Longer Lives, More Years in Middle 1900 Now 20 - 40 40 - 55 55 - 70 70 – 85+ A “New Stage” Has Emerged• On average, people live 18 years beyond 65• Frail elder stage pushed out a decade or more• People age 60-75 remain active, healthyGodfrey & Schaefers April, 2011 9
  • Defining a New Stage of Life“The sixty-somethings headed our way will invent an entirely new stage of life—the encore years—between the end of middle adulthood and anything resembling old age and retirement. We brand them the young-old, or the working-retired. Or maybe just the oxymoronic years….” - Marc Freedman, AARP Bulletin, March, 2011Godfrey & Schaefers April, 2011 10
  • Aging Boomer Population: Burden?• Inadequate savings for retirement• Burden on healthcare systems, greater healthcare costs• Drain on Social Security, Medicare, other Social Service programs – fewer workers paying in to support more recipients• Strain on families and society in caring for those in dependency Chinese Character for Crisis• Eventual shortage of labor and Opportunity + Danger talent Godfrey & Schaefers April, 2011 11
  • Aging Boomer Population: Opportunity?• Well educated, skilled sector of the labor market.• Healthy and vital contributors.• Skills well suited to today’s knowledge based economy.• Desire to give back, contribute, fits with emerging employment needs (i.e. health care, education, Chinese Character for Crisis environment, social service). Opportunity + DangerGodfrey & Schaefers April, 2011 12
  • Benefits in Extended Work LifeFor the individual:• Money: Increased income, more savings• Sense of accomplishment, contribution• Increased social interaction and involvement• Extended vitality and health - for those who stay engaged Godfrey & Schaefers April, 2011 13
  • Benefits in Extended Work LifeFor the Employer:• Alleviate, moderate or postpone shortage of labor• Retain talent; less brain drain• Succession planning, transfer of knowledge• Organizational profitability and competitiveness• Older workers bring qualities that are needed: engagement, work ethic, efficiency, focus Godfrey & Schaefers April, 2011 14
  • Benefits in Extended Work LifeFor Government:• Extend life of Social Security, Medicare• Lower costs for health care, welfare and other “entitlement” programs• Volunteers contributing to non- profit, community & civic efforts• People pay income taxes as they continue to workGodfrey & Schaefers April, 2011 15
  • Benefits in Extended Work LifeFor society:• Improved health; reduced healthcare cost• Healthier communities – more engaged, involved and caring• Increased labor utilization, productivity, economic growth, greater prosperity• Economy grows faster when more people work longer• Create “communities for life” – across generationsGodfrey & Schaefers April, 2011 16
  • “Retirement” – Old Myths vs. New realities and visionThe Old Myth:• Retire at age 65 and stop working• The “Golden Years” in “Sun City” – moving away to live in a retirement community• “Senior Citizens” living in “55+” housing, away from other age groups• Focus on a life of leisure, without responsibility• “Elderly” - increasing frailty and declining health• “It’s all downhill from here!”Godfrey & Schaefers April, 2011 17
  • “Retirement” – Old Myths vs. New realities and visionWorking in Retirement• 1 in 5 of those over 50 who are “retired” are working• More than half of those work full-time;• 1/3 of those working full-time are making more than before they retired. “Working in Retirement”, Work and Families Institute, Nov., 2010In Minnesota• 46% of Boomers plan to work PT or FT in retirement• 73% of those who plan to work say their job will be different than their current job. The Ecumen “Age Wave” Study, 2007 Godfrey & Schaefers April, 2011 18
  • Why people are working longer Why do you work?It’s more than Financial: AARP Survey – “Ideal Job”:• Personal & Professional Development factors were most important, followed by Workplace Culture, and then Flexibility, all ahead of FinancesWhat older workers are seeking in a job:• Still healthy – want to stay physically & mentally active• Make use of one’s skills and talents• Want to make a difference; have a sense of purpose• One’s contribution is valued; respect• Flexibility and control over one’s work• Learn new things and grow professionally• Social: Stay connected, camaraderie, relationships Godfrey & Schaefers April, 2011 19
  • “New Stage” Models include Work • Work, volunteering, care- • Engaged Aging giving, lifelong learning • Erik Erickson’s concept of • Giving Back Generativity, Legacy • Work provides structure, • Encore Movement identity, social interaction, meaningful experience, accomplishment, income Purpose, meaning, contribution and legacy become more important as we age – and the workplace is an outlet for these Godfrey & Schaefers April, 2011 20
  • The Second Half of Life –Shifting Vision • Shifting Inner Vision – Reflection – New Perspective – Seeing the world with new eyes.Godfrey & Schaefers April, 2011 21
  • Reality Check: Myths & Hurdles Older Workers Encounter Myths RealityNot committed; short-timer More Loyal; ReliableLess productive “Experience dividend” – focused, work smarterReduced intellect; can’t “Grown-up brain” – higherlearn order thinking; integrate information; Sage wisdomInflexible, rigid See multiple perspectives; allow for compromiseToo high on the “career Work differently: “careerladder”; can’t adjust lattice” - jobs with purposeNot vigorous and active; Conscientious; lowerrisk of health issues absenteeism; vital; engaged Illustration: “Hiring Grandpa”, The Economist, Apr. 9, ‘11 Godfrey & Schaefers April, 2011 22
  • Reality Check: Myths & Hurdles Older Workers EncounterHurdles• Marginalized: Pushed to the side in discussions, decisions• Passed over for training and new assignments• Trivialized: Given routine or menial tasks – especially in volunteer roles• Risk of long-term unemployment• Age discrimination in employment and on the job (either intentional or unintended consequences of rules and policies)• “Age-ism”: Negative stereotypes, assumptions, attitudes; jokes and categorization (in the media, advertising, general society) Godfrey & Schaefers April, 2011 23
  • 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 April, 2011 24
  • 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 April, 2011 25
  • Employers: Strategies to Engage & Retain Older Workers (& Others) • Supportive organizational culture.  Effectively using multiple generations  Pension, rehire, work rules to allow workers to continue  Employee resource groups: for Boomers & across generations • Flexible work arrangements:  Flexibility in When, Where and How to work  Flexibility in pay and benefits choices • Meaningful work – “Lead with purpose” • Ongoing education, training and skill development • Senior Consultant or “Guru” roles • Career transitions; recombinant careers to use skills in new ways; encore careers; bridge jobs • Pro-rated health benefits. • Recapturing “alumni” and retired workers Godfrey & Schaefers April, 2011 26
  • Broader Implications for this new view of work for an aging world• Housing• Social Services• Public Policy and government regulations• Education – for training and lifelong learning• Civic and community life• Workforce: increasing productivity (efficiency + innovation)• What does this mean for you and your sphere of work?Godfrey & Schaefers April, 2011 27
  • Tapping the Talent of an Aging Workforce Will Take:• Each person’s awareness, persistence and motivation• Employers’ receptivity and flexibility• Government promotion and regulatory structure• Community culture that supports and encourages lifelong engagement and learningGodfrey & Schaefers April, 2011 28
  • The Bull’s Eye - When It All Aligns: one’s desire, labor market & societal need Communities Culture Engage for a Lifetime Multiple Generations Agencies Governmental Community Support Resources OSHA Pension Groups Laws Workplace Workforce Networks Pension Work Centers Schools Rules Image Rules Training & Business Development Research/ Education Self & Career Innovation Innovation Identity Funding& Benefits Job Support Selection FlexibleDesign Social EEO Security Schedule Ways to Community Medicare FLSA Connect Learning Employment Laws Environment that values Multiple Models lifelong work Of “Retired”Godfrey & Schaefers April, 2011 29
  • AppendixGodfrey & Schaefers April, 2011 30
  • Percent Change in U.S. Labor Force by Age, 2006 - 2016 Thousands16 to 24 -7% -1,54225 to 34 14% 4,71635 to 44 -6% -2,19445 to 54 0% -6355 to 64 37% 7,30465 and older 84% 4,582 -10% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% As the baby-boom generation ages, those 55 – 64 in the labor force will increase by 7 million; 35 to 44 year-olds will shrink Source: US Bureau of Labor Statistics, Occupational Outlook Quarterly, Fall, 2007 Godfrey & Schaefers April, 2011 31
  • 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 April, 2011 32
  • History of RetirementVon Bismarck – Germany - 1883 Social Security Act of 1935 Sun City - 1960 1900’s 1930’s 1960’s TODAY Godfrey & Schaefers April, 2011 33
  • Elements of Older Workers’ Ideal Job Dimensions: Workplace Culture(W), Personal & Professional Development (P), Flexible, Convenient Working Arrangements (F), Financial (Fi) Chance to use your skills and talents 91% P Friendly work environment 88% W Chance to do something worthwhile 86% P Feeling respected by your coworkers 80% W Adequate paid time off 79% F Work allowing you to help others 77% P Competitive pay 76% FI Feeling respected by your boss 75% P Opportunity to learn something new 75% P Flexible schedule 74% F Health care benefits or insurance 74% FI Short commute 70% F Good pension benefits 69% FIChance to pursue something you’ve always wanted to 68% P A 401(k) retirement plan 57% FI On-the-job training 56% P Ethnic and racial diversity 48% P Opportunity for part-time work 38% F Ability to work from home 34% F Development & Workplace come first, then Flexibility and Finances Source: AARP, 2008 Godfrey & Schaefers April, 2011 34
  • MN Boomers: Why They WorkDimension % who find important• Keep Physically Active: 86%• Keep Mentally Active: 86%• Income: 86%• Health Insurance: 84%• Sense of Purpose: 82%• Stay Connected with Others: 82%• New Challenges: 79% Source: The Ecumen “Age Wave” Study, 2007Godfrey & Schaefers April, 2011 35
  • Transferring Talents to Recombinant / Encore Careers Career Changer From ToAnn Rosse (A) Registered Nurse Fire Fighter https://www.wellsfargoadvisors.com/2hc/second-half-champions.htmVilma Seymour (A) Salon Owner Medical InterpreterAl Pickett (A) Retail Grocer H.S. TeacherBrian Lucas (A) Air Traffic Controller E.M.T.Lynn Dixon (C) Database Management MusicianSusie Cavanaugh (B) Teacher United Way Prog Coord.Mike McCartan (C) Ad Agency Executive Harbor MasterAlice Williams (B) Computer Programmer Experience Corps Tutorhttp://www.pbs.org/wttw/retirementrevolution/2009/08/04/alice-williams/Dave Preston (C) English Teacher Motorcycle Club Mgr.www.youtube.com/watch?v=agTin2F0JPs&feature=youtube_gdataBill Kurtis (D) Reporter Cattle Rancherwww.youtube.com/watch?v=c132deipCeM&feature=channel A: Wells Fargo 2nd Half Champions; B: Encore Careers; C: Personal Source; D: PBS Retirement Revolution Godfrey & Schaefers April, 2011 36
  • 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 April, 2011 37
  • 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 April, 2011 38