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Dr Rovel Shackleford on Managing an Aging Workforce presentation sirf 0906
Dr Rovel Shackleford on Managing an Aging Workforce presentation sirf 0906
Dr Rovel Shackleford on Managing an Aging Workforce presentation sirf 0906
Dr Rovel Shackleford on Managing an Aging Workforce presentation sirf 0906
Dr Rovel Shackleford on Managing an Aging Workforce presentation sirf 0906
Dr Rovel Shackleford on Managing an Aging Workforce presentation sirf 0906
Dr Rovel Shackleford on Managing an Aging Workforce presentation sirf 0906
Dr Rovel Shackleford on Managing an Aging Workforce presentation sirf 0906
Dr Rovel Shackleford on Managing an Aging Workforce presentation sirf 0906
Dr Rovel Shackleford on Managing an Aging Workforce presentation sirf 0906
Dr Rovel Shackleford on Managing an Aging Workforce presentation sirf 0906
Dr Rovel Shackleford on Managing an Aging Workforce presentation sirf 0906
Dr Rovel Shackleford on Managing an Aging Workforce presentation sirf 0906
Dr Rovel Shackleford on Managing an Aging Workforce presentation sirf 0906
Dr Rovel Shackleford on Managing an Aging Workforce presentation sirf 0906
Dr Rovel Shackleford on Managing an Aging Workforce presentation sirf 0906
Dr Rovel Shackleford on Managing an Aging Workforce presentation sirf 0906
Dr Rovel Shackleford on Managing an Aging Workforce presentation sirf 0906
Dr Rovel Shackleford on Managing an Aging Workforce presentation sirf 0906
Dr Rovel Shackleford on Managing an Aging Workforce presentation sirf 0906
Dr Rovel Shackleford on Managing an Aging Workforce presentation sirf 0906
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Dr Rovel Shackleford on Managing an Aging Workforce presentation sirf 0906

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Optec presentation at SIRF Round Tables power and utilities sectors Dr Rovel Shackleford on Managing an Aging Workforce

Optec presentation at SIRF Round Tables power and utilities sectors Dr Rovel Shackleford on Managing an Aging Workforce

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  • 1. How to Manage an Ageing Workforce SIRF National Forum onElectrical Maintenance & Safety September 2006 Dr Rovel Shackleford 1
  • 2. In the next seven years the number of Australians hitting 100 will double. scientists predict that a lifespan of 130 is not far away.Dr Rovel Bulletin August 29,2006 2Shackleford
  • 3. Bulletin August 29,2006Dr Rovel 3Shackleford
  • 4. Introduction • The Current Position • Trends • Proportion of Older to Younger Workers • Solutions • Trends Affecting Older Workers • Older Workers and Ageism • Question of ProductivityDr Rovel 4Shackleford
  • 5. The Current Position WORKFORCE SUSTAINABILITY Retirements 1,000 Transfers Terminations 800 Current supply Demand 600 400 200 0 Year 2 Year 4 Year 6 Year 8 Year 10 Assumptions: Retirement avg. age 60. Transfers at 1% year Terminations at 2% year. Workforce growth 5% year.Dr Rovel 5Shackleford
  • 6. MANAGING THE CORPORATE KNOWLEDGE SUSTAINABILITY GAP A small and slowly growing number of managers are working with human resources to project human capital needs into the next decade. DEMAND Example shows MATHEMATICAL MODEL flat demand for EXAMPLE MANAGED 5 years then SUPPLY a new project Planned development 5000 of 4500 competencies to meet demand taking into 4000 account losses due to terminations 3500 3000 Competency Units 2500 UNMANAGED 2000 SUPPLY 1500 No replacement of competency losses 1000 due to terminations 500 Co mp et ency Demand Comp et ency Sup ply (af t er spread ) ASSUMPTIONS If Fut ure Co mp et encies Not Supp lied 0 about supply and Recruit ment Compet encies+Current (unspread) y2003 y2004 Recruit ment Co mpet encies+Current (spread) demand y2005 y2006 W orkf orce Growt h (Unit s) y2007 y2008 y2009 y2010 Terminat ions (Loss of Unit s) Ye ar y2011 y2012 y2013 People who hold our core competencies can goDr Rovel and leave us incapable of competing. Fitz-enz 6Shackleford
  • 7. The Big Picture CORPORATE STRATEGIC OBJECTIVES KNOWLEDGE HUMAN CAPITAL PERFORMANCE MANAGEMENT SYSTEM MANAGEMENT SYSTEM MANAGEMENT SYSTEM WORKFORCE SUSTAINABILITY LEARNING MANAGEMENT SYSTEM MANAGEMENT SYSTEM TECHNICAL FUNCTIONAL STRATEGIC WORKFORCE RELEVANT KPIs INFORMATION MANAGEMENT OBJECTIVES PLANNING LEARNING SYSTEMS PERFORMANCE PERFORMANCE CORPORATE MEASUREMENT REVIEW KNOWLEDGE SUSTAINABILITY ELECTRONIC BEST LEARNING LIBRARY PRACTICES VERIFICATION JOB CORRECTIVE & PERFORMANCE PROACTIVE BEHAVIOUR ACTION CORPORATE GOVERNANCE SYSTEMDr Rovel 7Shackleford
  • 8. Statistical Data Fertility Rates within Australia 1921 to 2051: Source: ABS Cat No 3301.0Dr Rovel 8Shackleford
  • 9. Impact The Impact • By 2010 serious labour shortages could exist • Some shortages have already appeared in varied industries • TAS, SA, NSW and VIC will be first to feel impact • WA and QLD will be affected slightly later • Marginally employed currently filling the gaps This decline in growth will result in – • Reduced labour supply • Reduced skills availability • Potential negative impact on all industries in AustraliaDr Rovel 9Shackleford
  • 10. Trends Affecting Older Workers Three key trends affecting older workers • Aging Workforces - Higher proportions of older workers • Globalization • Proliferation of employment in knowledge based jobsDr Rovel 10Shackleford
  • 11. Sweet Spot ProductiveDr Rovel 11Shackleford Age
  • 12. Myths About Older Workers • You can’t teach an old dog new tricks • The lights may be on, but the voltage is low • Learning takes place only in the classroom • They don’t like change • Older workers do not have the skills for today’s economy • Most older workers don’t need to work and don’t want to workDr Rovel 12Shackleford
  • 13. The Truth About Older Workers: Making the Business Case 80% have less turnover 75% have higher levels of commitment 74% are more reliable, focused, and dedicated 71% have equal ability to acquire new skills 62% are more creative and innovative 49% are more motivated/engaged Harris Interactive (2003); AARP (2006) American Association of Retired PersonsDr Rovel 13Shackleford
  • 14. ROI of Older Workers • Older workers have higher Contributory Value than younger workers (Eurostat 2005 EU). • Contributory Value is the combination of: • P = Psychological Capital ( Positivity) • I = Intellectual Capital (what you know) • E = Emotional Capital (self-awareness, self- regulation) • S =Social Capital (who you know) “PIES”Dr Rovel 14Shackleford
  • 15. A Note on the Cost Side • But do older workers cost more? • Cash compensation • Healthcare costs • Retirement costs • Paid time off • One time costs • Cost of retaining older workers • Costs of attracting older workersDr Rovel 15Shackleford
  • 16. Strategies for Managing Older Workers • Assuming we believe older workers produce high contributory value, how do we keep them? • What do older workers want? • What do organizations want? • FINDING THE OVERLAP IS KEY Older Organizations’ Worker Needs NeedsDr Rovel 16Shackleford
  • 17. What Do Organization Leaders Need to Do? • Assess your vulnerability to knowledge loss through retirement. • Incorporate the demographics into your strategic planning process. • Identify the skills and knowledge required to meet your strategic business plans. • Assess your vulnerability to knowledge loss through retirement. • Incorporate the demographics into your strategic planning process. • Identify the skills and knowledge required to meet your strategic business plans. • Re-think cost-cutting initiatives that encourage early retirement. • Implement knowledge transfer and capture programs.Dr Rovel • Develop retention strategies and customized work arrangements for 17Shackleford experienced workers
  • 18. Retention Choices Incentives That Retain Older Workers: Monetary Incentives Unique development Stock options opportunities Incentive compensation Training opportunities Retention bonuses Increased job scope Purchase discounts Skills development Mentoring Benefits Incentives Flexibility Improved medical benefits Phased retirement Improved retirement plans Flexible work schedules Sabbaticals Bridge employment Part-time workDr Rovel Consultants 18Shackleford
  • 19. Admired Leader tips surrounding the management of older workers • Behaviors lead to beliefs, not vice versa • Never label change “change” • Put positive labels on people • Old and young learn something new together • Micromanage or ignore resisters • Encourage older workers to trade in competency currency for constraint currently • Ask older workers to re-recruit themselves • Only resources that matter are the ones valued by the organizationsDr Rovel 19Shackleford
  • 20. “People are the only element with the inherent power to generate value. All other variables - cash and its cousin credit, materials, plant and equipment, and energy — offer nothing but inert potentials. By their nature, they add nothing, and they cannot add anything until some human being, be it the lowest level laborer, the most ingenious professional, or the loftiest executive, leverages that potential by putting it into play”. The ROI of Human Capital Jac Fitz-enzDr Rovel American Management Association 2000 20Shackleford
  • 21. Thank You! Questions?Dr Rovel 21Shackleford

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