Rethinking work mgs_4-29-11-final

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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 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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Rethinking work mgs_4-29-11-final

  1. 1. Rethinking Work for a Changing World Tracy Godfrey Kate Schaefers MN Gerontological Society Conference April 29, 2011 Godfrey & Schaefers April, 2011 111
  2. 2. 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
  3. 3. “A Change Is Gonna Come”: Aging Population • 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 Godfrey & Schaefers April, 2011 3 Sources: Administration on Aging, 2009, Ecumen 2007 Age Wave Study Population Workforce Work
  4. 4. Godfrey & Schaefers April, 2011 4 Age Distribution Has Changed 47.0 7.6 7.2 21.6 16.6 37.8 10.0 10.4 24.5 17.3 0 10 20 30 40 50 20-40 40-45 45-50 50-65 65+ 1980 2007 % of Population Over Age 20 Source: Gillaspy & Stinston, “The New Normal”, Nov., ‘10 Minnesota 1980 vs. 2007 Population Workforce Work
  5. 5. How old is “Old”? The answer depends... Age Group • Early Boomers (1946 – ’51) • Middle Boomers (1952 – ’58) • Later Boomers (1959 – ’64) “Old” 78 Godfrey & Schaefers April, 2011 5 Survey of Baby Boomers: 75 71 Generally, “Old” seems to be at least 5 years older than you are. Source: “Boomers in the Middle, MetLife Mature Market Institute, 2010 Population Workforce Work
  6. 6. “A Change Is Gonna Come”: 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 Population Workforce Work
  7. 7. In Minnesota, 30 Percent More Workers Turned Age 62 in 2008 - Trend Will Continue Until 2022 0 10,000 20,000 30,000 40,000 50,000 60,000 7/05 to 7/06 7/06 to 7/07 7/07 to 7/08 7/08 to 7/09 7/09 to 7/10 7/10 to 7/11 7/11 to 7/12 Year Turning Age 62 WorkedWithinPast5years Godfrey & Schaefers April, 2011 7 2005 ACS Source: Gillaspy & Stinston, “The New Normal”, Nov., ‘10 Population Workforce Work
  8. 8. “A Change Is Gonna Come” Work is changing • 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 - Virtual Godfrey & Schaefers April, 2011 8 Population Workforce Work
  9. 9. 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 April, 2011 999 40 - 5520 - 40 55 - 70 70 – 85+ Now 19001900 A “New Stage” Has Emerged
  10. 10. 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, 2011 Godfrey & Schaefers April, 2011 10
  11. 11. 11 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 • Eventual shortage of labor and talent Chinese Character for Crisis Opportunity + Danger Godfrey & Schaefers April, 2011
  12. 12. 12 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, environment, social service). Chinese Character for Crisis Opportunity + Danger Godfrey & Schaefers April, 2011
  13. 13. Benefits in Extended Work Life For 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 1313
  14. 14. Benefits in Extended Work Life For 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 141414
  15. 15. Benefits in Extended Work Life For 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 work Godfrey & Schaefers April, 2011 151515
  16. 16. Benefits in Extended Work Life For 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 generations Godfrey & Schaefers April, 2011 161616
  17. 17. “Retirement” – Old Myths vs. New realities and vision The 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
  18. 18. “Retirement” – Old Myths vs. New realities and vision Working 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. Godfrey & Schaefers April, 2011 18 “Working in Retirement”, Work and Families Institute, Nov., 2010 In 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
  19. 19. Why people are working longer 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 Finances What 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 191919 Why do you work?
  20. 20. “New Stage” Models include Work • Engaged Aging • Giving Back • Encore Movement • Work, volunteering, care- giving, lifelong learning • Erik Erickson’s concept of Generativity, Legacy • Work provides structure, identity, social interaction, meaningful experience, accomplishment, income Godfrey & Schaefers April, 2011 20 Purpose, meaning, contribution and legacy become more important as we age – and the workplace is an outlet for these
  21. 21. The Second Half of Life – Shifting Vision • Shifting Inner Vision – Reflection – New Perspective – Seeing the world with new eyes. 21Godfrey & Schaefers April, 2011
  22. 22. Reality Check: Myths & Hurdles Older Workers Encounter Myths Not committed; short-timer Less productive Reduced intellect; can’t learn Inflexible, rigid Too high on the “career ladder”; can’t adjust Not vigorous and active; risk of health issues Godfrey & Schaefers April, 2011 22 Reality More Loyal; Reliable “Experience dividend” – focused, work smarter “Grown-up brain” – higher order thinking; integrate information; Sage wisdom See multiple perspectives; allow for compromise Work differently: “career lattice” - jobs with purpose Conscientious; lower absenteeism; vital; engaged Illustration: “Hiring Grandpa”, The Economist, Apr. 9, ‘11
  23. 23. Reality Check: Myths & Hurdles Older Workers Encounter Hurdles • 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
  24. 24. 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 Godfrey & Schaefers April, 2011 24 At this point, much of this is being done by individuals, with few established options
  25. 25. 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 252525
  26. 26. 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 262626
  27. 27. 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
  28. 28. 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 learning Godfrey & Schaefers April, 2011 2828
  29. 29. Image Identity Workplace Governmental Culture Self The Bull’s Eye - When It All Aligns: one’s desire, labor market & societal need Godfrey & Schaefers 2929 Image Identity Workplace Governmental Culture Self Community Resources Ways to Connect 29 Workforce CentersPension Rules Flexible Schedule Work Rules Job Design Employment Laws Pension Laws Benefits EEO FLSA OSHA Environment that values lifelong work Communities for a Lifetime Multiple Models Of “Retired” Agencies Community Resources Social Security Medicare Engage Multiple Generations Community Learning Support Groups Schools Research/ Innovation Funding& Support Networks Selection Ways to Connect Business Development & Career Innovation Training & Education April, 2011
  30. 30. Appendix Godfrey & Schaefers April, 2011 30
  31. 31. Percent Change in U.S. Labor Force by Age, 2006 - 2016 16 to 24 25 to 34 35 to 44 45 to 54 55 to 64 65 and older Thousands -1,542 4,716 -2,194 -63 7,304 4,582 Source: US Bureau of Labor Statistics, Occupational Outlook Quarterly, Fall, 2007 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 -7% 14% -6% 0% 37% 84% -10% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Godfrey & Schaefers 31April, 2011
  32. 32. The End of Retirement as We Know It “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.” - L.B. Rubin (“The truth about aging in America”, 2007) Godfrey & Schaefers April, 2011 323232 From “Engaged as We Age”, Sloan Center for Aging, Boston College, Feb., 2010, p. 13
  33. 33. 33 History of Retirement 1900’s 1930’s 1960’s TODAY SocialSecurityActof1935 Godfrey & Schaefers April, 2011 SunCity-1960 VonBismarck–Germany-1883
  34. 34. Dimensions: Workplace Culture(W), Personal & Professional Development (P), Flexible, Convenient Working Arrangements (F), Financial (Fi) Elements of Older Workers’ Ideal Job 91% 88% 86% 80% 79% 77% 76% 75% 75% 74% 74% 70% 69% 68% 57% 56% 48% 38% 34% Chance to use your skills and talents Friendly work environment Chance to do something worthwhile Feeling respected by your coworkers Adequate paid time off Work allowing you to help others Competitive pay Feeling respected by your boss Opportunity to learn something new Flexible schedule Health care benefits or insurance Short commute Good pension benefits Chance to pursue something you’ve always wanted to A 401(k) retirement plan On-the-job training Ethnic and racial diversity Opportunity for part-time work Ability to work from home Godfrey & Schaefers April, 2011 34Source: AARP, 2008 P W P W F P FI P P F FI F FI P FI P P F F Development & Workplace come first, then Flexibility and Finances
  35. 35. MN Boomers: Why They Work Dimension % 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% Godfrey & Schaefers April, 2011 35 Source: The Ecumen “Age Wave” Study, 2007
  36. 36. Godfrey & Schaefers April, 2011 36 Transferring Talents to Recombinant / Encore Careers Career Changer From To Ann Rosse (A) Registered Nurse Fire Fighter Vilma Seymour (A) Salon Owner Medical Interpreter Al Pickett (A) Retail Grocer H.S. Teacher Brian Lucas (A) Air Traffic Controller E.M.T. Lynn Dixon (C) Database Management Musician Susie Cavanaugh (B) Teacher United Way Prog Coord. Mike McCartan (C) Ad Agency Executive Harbor Master Alice Williams (B) Computer Programmer Experience Corps Tutor Dave Preston (C) English Teacher Motorcycle Club Mgr. Bill Kurtis (D) Reporter Cattle Rancher 3636 A: Wells Fargo 2nd Half Champions; B: Encore Careers; C: Personal Source; D: PBS Retirement Revolution www.youtube.com/watch?v=agTin2F0JPs&feature=youtube_gdata www.youtube.com/watch?v=c132deipCeM&feature=channel http://www.pbs.org/wttw/retirementrevolution/2009/08/04/alice-williams/ https://www.wellsfargoadvisors.com/2hc/second-half-champions.htm
  37. 37. 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 Godfrey & Schaefers April, 2011 373737 A: MetLife; B: Sloan Center, Boston College; C: AARP Top 50 Employers
  38. 38. Resources Civic 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 work The 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 383838

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