Global Business Services
The Changing Workforce:
Urgent Challenges and Strategies
Joe Kristy
Associate Partner, Human Capital Management Practice
© Copyright IBM Corporation 2007

Global Business Services
There is an increasing gap between needs and availability
210
Labor needed
200 Labor available
190
Aerospace (incipient)
180
Chemicals, Mining, Petroleum
Millions
170 Engineering (cross-industry)
Government
160 Healthcare (cross- profession)
Shortage of 8-10 million “critical skill”
Selected IT (cross-industry)
150
Workers forecast by end of decade
Transportation
Utilities
140
130
2002 2006 2010 2014 2018 2022 2026 2030
Years
Source: Table: Employment Policy Foundation analysis and projections of Census/BLS and BEA data, American Workplace Report 2002
© Copyright IBM Corporation 2007

Global Business Services
Maturing baby boomers are followed by a much smaller
group of generation Xers, making potential replacements
increasingly difficult to find and hire
U.S. Population Alive Today by Year of Birth
In Millions
U.S. Population
of Working Age
5 in 2003
4.5
4
3.5
U.S.
Population 3
Alive Today 2.5
(millions) Baby Boom Generation
2 Generation X
1.5
1
0.5
0
1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000
Year of Birth
Source: Adapted from The Segal Company, based on data from the U.S. Census Bureau, 2000.
© Copyright IBM Corporation 2007

Global Business Services
Each generation has different workplace behaviors
Traditionalists Boomers Gen X Gen Y
(61 – 84) (42 – 60) (26 – 41) (18 – 25)
Too much and Continuous and
Training The hard way Required to keep me
I’ll leave expected
Collaborative and
Learning style Classroom Facilitated Independent
networked
Communication style Top-down Guarded Hub and spoke Collaborative
Problem-solving Hierarchical Horizontal Independent Collaborative
Decision-making Seeks approval Team informed Team included Team decided
Command and
Leadership style Get out of the way Coach Partner
control
No news
Feedback Once per year Weekly/Daily On Demand
is good news
Unable to work Unfathomable if
Technology use Uncomfortable Unsure
without it not provided
Part of my
Job changing Unwise Sets me back Necessary
daily routine
Source: Lancaster & Stillman (2003)
© Copyright IBM Corporation 2007

Global Business Services
Assessing the Multi-Gen Value Chain offers insight
toward solutions
Sourcing & Learning & Recognition & Staffing & Career
Recruitment Knowledge Benefits Management
What are each What is the learning What is the What do leaders,
Focus: generation’s most style of each appropriate mix of managers, and
Generation pressing concerns generation? benefits and mentors of each
Specific with regard to recognition generation need to
Questions choosing a new job? mechanisms for know about their
each generation? colleagues?
How do we attract How can we How can we How do we ensure
Focus: the right mix of effectively leverage balance meeting productive
Generational employees to meet the experience and the diverse needs collaboration among
Mix our skill needs now knowledge of each of our employees employees of different
Questions and in the future? generation to benefit in a simple, cost- generations?
the whole effective manner?
organization?
Source: IBM Institute for Business Value analysis
© Copyright IBM Corporation 2007

Global Business Services
Summing up the Challenge: The Maturing Workforce
The global population and our work force is rapidly aging
Significant talent shortages are predicted
The workforce now comprises four generations, each with very different
needs, drivers and learning styles; and managing intergenerational diversity
will become increasingly challenging
© Copyright IBM Corporation 2007

Global Business Services
What can be done:
“Good Practices”
© Copyright IBM Corporation 2007

Global Business Services
Addressing the Changing Workforce: Potential Strategies
Recruitment and retention approaches tailored to generational needs and
drivers
Alternative work arrangements and benefits to accommodate boomers desire
to keep working and acknowledging flexibility desired by Gen Y’s.
Knowledge management programs to transfer knowledge across generations
Revised learning approaches to accommodate the younger workforce
© Copyright IBM Corporation 2007

Global Business Services
Retention practices should be tailored to generational needs to
accommodate each generation’s workplace behaviors
Generational Differences in Workplace Behaviors
Traditionalist Boomer Gen X Gen Y
Too much and Continuous and
Training The hard way Required to keep me
I’ll leave expected
Collaborative and
Learning style Classroom Facilitated Independent
networked
Communication style Top-down Guarded Hub and spoke Collaborative
Problem-solving Hierarchical Horizontal Independent Collaborative
Decision-making Seeks approval Team informed Team included Team decided
Command and
Leadership style Get out of the way Coach Partner
control
No news
Feedback Once per year Weekly/Daily On Demand
is good news
Unable to work Unfathomable if
Technology use Uncomfortable Unsure
without it not provided
Part of my
Job changing Unwise Sets me back Necessary
daily routine
Source: Lancaster & Stillman (2003)
© Copyright IBM Corporation 2007

Global Business Services
“Life-Staged” work arrangements, benefits and rewards can
address unique needs of multiple generations
20-Somethings 30-Somethings 40-Somethings 50-Somethings 60-70 Somethings 80+-Somethings
Training Mortgage Assistance with College tuition Social interactions Reverse life
Career Coaching assistance personal services assistance sponsored by insurance
Auto Insurance Career Planning through work Retirement/ work Extra major
Flexible hours (elder/child care, Financial planning Flexible hours medical insurance
Lease Review
dry cleaning, Investment Retirement Living assistance
Extra vacation New parent leave
house- cleaning, counseling planning
Gym plans Reverse mortgage
etc.)
Infertility/Adoption Time flexibility Less life insurance Driver/Shuttle
Social live tied Time & schedule
more to work – services Significant time off Less disability service
flexibility
functions happy Childcare services Healthcare Flexible
Retirement
hours College savings Extra disability hours/part-time
benefits
Continuing plans work
Savings plan
Education Retirement saving
education &
options
Information summarized from The New Workforce by Harriet Hankin
© Copyright IBM Corporation 2007

Global Business Services
Web 2.0 Social Networking Software can provide significant
benefits to knowledge transfer across generations
Increased personal productivity
•Find experts, get answers instantly
•Share knowledge, new ideas, lessons learned, best practices
•Quick customer feedback
•Share “who I am and how I can contribute”
Individual
Team collaboration
•Meeting efficiency &
effectiveness
•Project communications
•Quick troubleshooting
Community Team
•Idea generation
Community building •Brainstorms with
•Collaborate with others on similar interests geographically distributed
•Faster interaction between stakeholders, developers, teams
clients, partners •Creating documentation and
•Build common body of knowledge deliverables
•Decrease time-to-market for product development
•Users help with product support, “self serve”
© Copyright IBM Corporation 2007

Global Business Services
Web 2.0 technologies are quickly filling informal learning
gaps
Access reference and Interact with media
support materials tutorials, drill and practice single
books, videos, web pages, player simulations and games
web lectures, EPSS Web 2.0 - Second Life, Serious
Web 2.0 – Wikis, Content Gaming
Tagging, Blogs, Podcasts
(Informal) (Formal)
(Formal) (Informal)
(Informal) (Formal)
Interact with others anytime
(Formal) (Informal) via network technology
virtual classes, e-
communications/
Interact with others same Conferencing
place, same time Web 2.0 – Blogs, Wikis, team
face-to-face classes, collaboration spaces, Jams,
seminars, mentoring, coaching expertise location tied to
messaging/presence
awareness, emeetings
© Copyright IBM Corporation 2007

Global Business Services
IBM offers Maturing Workforce Services and Solutions to
address the Changing workforce challenges
IBM Maturing Workforce Services
Alignment Workshop Diagnostic Action
Knowledge Transfer MW Detailed attrition projection Mitigation
drivers, outlook, impact Value Assessment Overlay Training
Strategy & remediate Bus. impact assess, including Transformation
options, “Good Practice”, “windows of impact/response” Mentoring
review Roadmap (Present/Report)
Knowledge
Self Eval./Next Steps Supporting action plan
capture
Selected Indicators of MW Opportunities
Retirement programs with high incentives + high median age workforce
Heavy reliance on “Hi Value” skills (e.g. engineers, technicians) for core operations
Vital, “organization-specific” undocumented business expertise @ risk
Succession Management only for top 1-2 levels of workforce; no Talent Management
“Fragmented/fragile” work processes & technical/applications infrastructure dependent on experienced and
aging users and support cadre
Profitable today, willing to invest for future advantage, searching for “burning platform”
Unprofitable today, need insight to make hard decisions
© Copyright IBM Corporation 2007

Global Business Services
It’s a matter of Addressing “The Basics”
Who may leave?
Eligibility outlook
Attrition projection
What is the business risk/impact?
Future Context
Critical Talent
When will this happen?
Window of impact
Window for response
How should we respond?
Readiness
Response Strategy (ies)
Specific Interventions
© Copyright IBM Corporation 2007

Global Business Services
Employer Options: Many and varied – IBM services and
solutions help our clients choose appropriate actions
HCM Policy and
HCM Policy and
Programs
Programs
Learning and
Learning and Knowledge Management
Knowledge Management
Development
Development
Workforce Planning/
Workforce Planning/ Technology Infrastructure
Technology Infrastructure
Analytics
Analytics Multigenerational Integration/Upgrades
Integration/Upgrades
Workforce
Management
Unique Technology Solutions
Unique Technology Solutions
Business Organization/
Business Organization/ (Simulators, Advisory systems,
(Simulators, Advisory systems,
Process Transformation
Process Transformation Accessibility Technology, etc)
Accessibility Technology, etc)
Industry Specific
Industry Specific
Alternative Sourcing
Alternative Sourcing Solutions
Solutions
Collaborative
Collaborative
Innovation
Innovation
© Copyright IBM Corporation 2007

Global Business Services
IBM Global Business Services has focused on talent management,
knowledge, collaboration and “work” for almost a decade, and …
IBM GBS has combined the experiences from our
client engagements with harvesting from our multi-
client Institute for Knowledge-based Organizations to
create leading practices, frameworks and methods to
address the changing nature of work.
© Copyright IBM Corporation 2007