Surviving the Workforce Crisis Karen Light, PHR Owner, Strategic People Solutions A Strategic Business Partner with Profil...
Agenda <ul><li>The Aging Workforce / The Workforce Crisis: </li></ul><ul><li>7 Steps to increase attractiveness to young w...
Agenda <ul><li>The Aging Workforce / The Workforce Crisis:  Why all the fuss? </li></ul><ul><li>7 Steps to increase attrac...
Three Years Ago, this Research  Seemed Almost Unnecessary <ul><ul><li></li></ul></ul>“ Spend three years, and millions of ...
Source:  Barrett, J. “An impending work crisis.”  Newsweek.  September 20, 2002. David Ellwood,  Dean of Harvard Universit...
In 2000, A Fairly “Young” World . . .   Source: U.S. Census Bureau Percent of Population Age 60+ 2000 Under 5% 5% to 12.4%...
. . . Rapidly Aging by 2025 Source: U.S. Census Bureau Percent of Population Age 60+ 2025 Under 5% 5% to 12.4% 12.5% to 20...
Reason 1: The “Sudden” Boom in Life Expectancy Source:  U.S. Census Bureau, 2000 Life Expectancy at Birth:  1000 - 2000 Age
Life Expectancy <ul><li>Average age expectancy throughout human history <18 years </li></ul><ul><li>1900: 47 years </li></...
Dramatic Increase in Life Expectancy 1900 1950 1970 1980 1990 2000 1910 1920 1930 1940 1960 75 70 65 60 55 50 45 40 80 Sou...
Reason 2: Dramatic Drop in Birth Rates <ul><li>‘ Replacement Rate’/ ‘Birth Rate’ – Key concepts… </li></ul><ul><li>2.0 (2....
The Baby Boom Pattern <ul><ul><li></li></ul></ul>Source: U.S. Census Bureau International Data Base  4.5 4.0 3.5 3.0 2.5 2...
The Lines Are Crossing: A Growing Shortage of Workers in the U.S . <ul><ul><li></li></ul></ul>Source:  Employment Policy F...
Industrialized nations are currently experiencing the leading edge of these population changes  19%  of the entire America...
Screeching to a Halt: Growth in the Working-Age Population <ul><ul><li></li></ul></ul>Source: Deloitte Research/UN Populat...
Agenda <ul><li>The Aging Workforce / The Workforce Crisis:  Why all the fuss? </li></ul><ul><li>7 Steps to increase attrac...
Young Workers – The Bad News on Engagement Source:  The New Employee/Employer Equation , The Concours Group and Age Wave, ...
Source:  The New Employee/Employer Equation, The Concours Group and Age Wave, 2004 Young Workers – The Bad News on Engagem...
<ul><ul><li></li></ul></ul>Source:  The New Employee/Employer Equation, The Concours Group and Age Wave, 2004 Young Worker...
Average tenure for US workers <35 <ul><li>Average time in a job is 3 years (the “3 year hump”) </li></ul><ul><li>80% stay ...
What Matters to Young Workers <ul><li>Comprehensive benefits package  (19%) </li></ul><ul><li>Workplace that is enjoyable ...
Things to remember about young workers… <ul><li>Independent – many ‘raised themselves’ </li></ul><ul><li>Situational vs. s...
Seven things to do to make your organization more attractive to the declining population of young workers 7 Steps to Attra...
<ul><li>Select candidates who have a strong fit to the job.  In other words, put the right person in the right job – the f...
<ul><li>It’s not experience – or college degrees – or other accepted factors… </li></ul><ul><li>… (it) hinges on fit with ...
“… persons who had been matched outperformed to a statistically significant degree, those who had not been matched…” 14 Mo...
<ul><li>Create opportunities that reduce turnover and increase the retention of top performers. Reduced turnover and incre...
Source: Herbert M. Greenberg and Jeanne Greenberg, “Job Matching for Better Sales Performance,” Harvard Business Review, V...
3.  Maximize productivity and employee engagement through well developed training and coaching strategies and instruments....
4.  Insure against future retention challenges - use succession planning and  job matching  systems to plan individual car...
<ul><li>Use 360° multi-rater feedback systems to consistently monitor ‘the pulse’ of the employee / manager relationship. ...
<ul><li>Provide opportunities for open communication and dialog.  360° multi-rater feedback systems are a great place to s...
<ul><li>Determine the behavioral and working-style relationships of young workers and their managers, and use that informa...
What if I still do not have enough people?
It’s not  ALL  bad news – Many Employees Plan Not to Retire… <ul><ul><li></li></ul></ul>At what age do you plan to retire?...
Cutting Back Has New Meaning:  Cyclic – or Project-Based – Work Preference for working after “retirement”  Source:  The Ne...
What Matters to Mature Workers <ul><li>Comprehensive retirement package  (16%) </li></ul><ul><li>Comprehensive benefits pa...
Mature Workers – The Good News on Engagement Source:  The New Employee/Employer Equation , The Concours Group and Age Wave...
Source:  The New Employee/Employer Equation, The Concours Group and Age Wave, 2004 Mature Workers – The Good News on Engag...
Source:  The New Employee/Employer Equation, The Concours Group and Age Wave, 2004 Mature Workers – The Good News on Engag...
Agenda <ul><li>The Aging Workforce / The Workforce Crisis:  Why all the fuss? </li></ul><ul><li>7 Steps to increase attrac...
Losing a Baby Boomer with all of their experience and knowledge is like watching a library burn to the ground.
<ul><li>‘ Retire Retirement’  – create bell-shaped career curves </li></ul>Six Steps to Become More Attractive to Experien...
Traditional Retirement: Plummeting  from the Peak of Power and Prestige  20s 30s 40s 50s  or  60s
The Shape of Careers to Come: “Down Shifting” for Continued Contribution 20s 30s 40s 50s 60s 70s 80s Career Development Ca...
2.  Use succession, redeployment, and  job matching  systems well in advance to take a wider view of potential assignments...
<ul><li>Align the mature worker with the position, which may include new responsibilities and new management styles You wi...
<ul><li>Tap into the experience and management potential in mature workers. Maturity is invaluable. Be careful not to rely...
5.  Ensure managers are ‘age blind’ – reaching out to all age groups in the new blended workforce Six Steps to Become More...
<ul><li>Use all available resources to understand how to communicate and relate to the future’s highly diverse workforces ...
The question is not,  “ Is my organization facing an aging workforce crisis?” The real question is,  “ Am I ready for it?”
Agenda <ul><li>The Aging Workforce / The Workforce Crisis:  Why all the fuss? </li></ul><ul><li>7 Steps to increase attrac...
Timothy Butler & James Waldroop “ Job Sculpting” Harvard Business Review September-October 1999 “ In these days of Talent ...
There are two ways to do this <ul><li>Observation </li></ul><ul><ul><li>Time Consuming </li></ul></ul><ul><ul><li>Expensiv...
The Profiles Solution <ul><li>The ProfileXT </li></ul><ul><li>CheckPoint 360° </li></ul><ul><li>Profiles Performance Indic...
The Profiles Solution <ul><li>Serving over 40,000 clients, Profiles International has provided assessment-based solutions ...
For more information, <ul><li>Contact: </li></ul>Karen Light, PHR 501-225-7917 [email_address]
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  • I would like to welcome you to this morning’s session , “Surviving the Workforce Crisis”. The fact that you took time out of your busy schedule, confirms you are interested maybe even concerned about the Workforce Crisis. Today I am prepared to shared with you, information that I feel is critical to your company’s ability to survive and thrive in the challenging times that lie ahead. First, a little bit about me…I have over 15 years experience as a HR Generalist and Manager. My experience is with manufacturing, non profit health care, privately owned service companies and publicly traded companies. I have been on your side of the desk so I know how you have to wear many hats which can be very frustrating. I know that HR can be very rewarding professionally and personally. 
  • Workforce Crisis Long Version

    1. 1. Surviving the Workforce Crisis Karen Light, PHR Owner, Strategic People Solutions A Strategic Business Partner with Profiles International
    2. 2. Agenda <ul><li>The Aging Workforce / The Workforce Crisis: </li></ul><ul><li>7 Steps to increase attractiveness to young workers </li></ul><ul><li>6 Steps to become more attractive to experienced mature workers </li></ul><ul><li>Using objective data to understand and manage a highly diverse workforce </li></ul>
    3. 3. Agenda <ul><li>The Aging Workforce / The Workforce Crisis: Why all the fuss? </li></ul><ul><li>7 Steps to increase attractiveness to young workers </li></ul><ul><li>6 Steps to become more attractive to experienced mature workers </li></ul><ul><li>Using objective data to understand and manage a highly diverse workforce </li></ul>
    4. 4. Three Years Ago, this Research Seemed Almost Unnecessary <ul><ul><li></li></ul></ul>“ Spend three years, and millions of dollars, researching the changing workforce? Ridiculous! But, that's what we set out to do. Now, backed by years of research—focus groups, interviews, case studies, and quantitative surveys—we offer a comprehensive view of the looming crisis. Of changing values, talent shortages, and new relationships between employees and corporations. Of creative options—for engaging the talent you need.” — Ken Dychtwald, Tamara J. Erickson, and Robert Morison
    5. 5. Source: Barrett, J. “An impending work crisis.” Newsweek. September 20, 2002. David Ellwood, Dean of Harvard University’s Kennedy School of Government “ This is not something that tomorrow, all of a sudden, will show up in the headlines. This is a slow effect of changing demographics that is absolutely predictable but with profound implications… There will never be a moment where there is a massive crisis to call attention to this. If there is a crisis, it will be too late.” “ Future History”
    6. 6. In 2000, A Fairly “Young” World . . . Source: U.S. Census Bureau Percent of Population Age 60+ 2000 Under 5% 5% to 12.4% 12.5% to 20% Above 20%
    7. 7. . . . Rapidly Aging by 2025 Source: U.S. Census Bureau Percent of Population Age 60+ 2025 Under 5% 5% to 12.4% 12.5% to 20% Above 20%
    8. 8. Reason 1: The “Sudden” Boom in Life Expectancy Source: U.S. Census Bureau, 2000 Life Expectancy at Birth: 1000 - 2000 Age
    9. 9. Life Expectancy <ul><li>Average age expectancy throughout human history <18 years </li></ul><ul><li>1900: 47 years </li></ul><ul><li>Today: 77 years </li></ul><ul><li>US – 100 years ago 4% over 65 </li></ul><ul><li>Today 14% and rising </li></ul><ul><li>Pattern duplicated worldwide </li></ul>
    10. 10. Dramatic Increase in Life Expectancy 1900 1950 1970 1980 1990 2000 1910 1920 1930 1940 1960 75 70 65 60 55 50 45 40 80 Source: U.S. Social Security Administration Average Life Expectancy at Birth in the U.S.
    11. 11. Reason 2: Dramatic Drop in Birth Rates <ul><li>‘ Replacement Rate’/ ‘Birth Rate’ – Key concepts… </li></ul><ul><li>2.0 (2.1) </li></ul><ul><li>US in mid 1950s: 3.7 </li></ul><ul><li>US in 2006: 2.0 </li></ul><ul><li>20% of ‘Baby Boomers’ have no children </li></ul><ul><li>25% have one child </li></ul><ul><li>It’s global… </li></ul><ul><li>Italy: 1.2 </li></ul><ul><li>Germany: 1.3 </li></ul><ul><li>Japan: 1.4 </li></ul>
    12. 12. The Baby Boom Pattern <ul><ul><li></li></ul></ul>Source: U.S. Census Bureau International Data Base 4.5 4.0 3.5 3.0 2.5 2.0 Birth in Millions The Boom Years: 1946-1964 1930 1940 1950 1960 1970 1980 1990
    13. 13. The Lines Are Crossing: A Growing Shortage of Workers in the U.S . <ul><ul><li></li></ul></ul>Source: Employment Policy Foundation analysis and projections of Census/BLS and BEA data. Millions of People Expected Labor Force and Labor Force Demand
    14. 14. Industrialized nations are currently experiencing the leading edge of these population changes 19% of the entire American workforce holding executive, administrative and managerial positions will retire in the next five years Source: Beazley, et. al, Continuity Management, Mackay, Alan. “Mature Age Workers: Sustaining Out Future Labor Force.” An Ageless Workforce - Opportunities for Business' Symposium Conference Paper. August 27, 2003. www.ageing.health.gov.au/ofoa/wllplan/aawpapers.htm , Time to act quickly on aging.” The Japan Times Online. August 23, 2002 www.japantimes.co.jp/cgi-bin/getarticle.pl5?ed20020823a1.htm , A. Paulli, “Pension systems and gradual retirement in Italy”, September 2000, p.17 <ul><li>In the year 2000, there were more people receiving pensions in Italy (22 million) than people working (21 million) </li></ul>Within the next seven years, over 33 million individuals in Japan (26% of the population) are expected to be over 65 years old. By 2016, the number of individuals aged 60-64 in Australia is expected to almost double Just 45% of German 55+ employed - Franz Muenterfering. By 2050 avg age goes from 42 to 50 and workforce shrinks from 50 Million to 39 Million
    15. 15. Screeching to a Halt: Growth in the Working-Age Population <ul><ul><li></li></ul></ul>Source: Deloitte Research/UN Population Division (http://esa.un.org/unpp/) It’s 2008: Do You Know Where Your Talent Is? Why Acquisition and Retention Strategies Don’t Work, p.6 Mexico Brazil India China South Australia Canada US Netherlands Spain France UK Russia Italy Japan Germany Korea 1970-2010 2010-2050
    16. 16. Agenda <ul><li>The Aging Workforce / The Workforce Crisis: Why all the fuss? </li></ul><ul><li>7 Steps to increase attractiveness to young workers </li></ul><ul><li>6 Steps to become more attractive to experienced mature workers </li></ul><ul><li>Using objective data to understand and manage a highly diverse workforce </li></ul>
    17. 17. Young Workers – The Bad News on Engagement Source: The New Employee/Employer Equation , The Concours Group and Age Wave, 2004 %
    18. 18. Source: The New Employee/Employer Equation, The Concours Group and Age Wave, 2004 Young Workers – The Bad News on Engagement %
    19. 19. <ul><ul><li></li></ul></ul>Source: The New Employee/Employer Equation, The Concours Group and Age Wave, 2004 Young Workers – The Bad News on Engagement %
    20. 20. Average tenure for US workers <35 <ul><li>Average time in a job is 3 years (the “3 year hump”) </li></ul><ul><li>80% stay less than five years </li></ul><ul><li>One third of all under 35 year olds are in the first year with their employer </li></ul>Source: The New Employee/Employer Equation Survey
    21. 21. What Matters to Young Workers <ul><li>Comprehensive benefits package (19%) </li></ul><ul><li>Workplace that is enjoyable (13%) </li></ul><ul><li>Work that enables me to learn and grow (12%) </li></ul><ul><li>Comprehensive retirement package (10%) </li></ul><ul><li>Work that is personally stimulating (10%) </li></ul><ul><li>Flexible work schedule (10%) </li></ul><ul><li>10 percent more in total compensation (8%) </li></ul><ul><li>Two additional weeks of paid vacation (7%) </li></ul><ul><li>Work that is worthwhile to society (6%) </li></ul><ul><li>Flexible workplace (5%) </li></ul>Source: The New Employee/Employer Equation Survey
    22. 22. Things to remember about young workers… <ul><li>Independent – many ‘raised themselves’ </li></ul><ul><li>Situational vs. structured – so they feel free to ignore rules, policies and procedures that they find restrictive </li></ul><ul><li>Digital communicators – vs. ‘interpersonal’ </li></ul><ul><li>Comfortable with diversity – unhappy with ‘one size fits all’ policies and management methods </li></ul><ul><li>Differences older counterparts often </li></ul><ul><li>perceive as “poor work ethic” </li></ul>Source: The New Employee/Employer Equation Survey
    23. 23. Seven things to do to make your organization more attractive to the declining population of young workers 7 Steps to Attract and Retain More Young Workers
    24. 24. <ul><li>Select candidates who have a strong fit to the job. In other words, put the right person in the right job – the first time. Remember that statistics show dramatically higher productivity for job-matched workers , and that job fit is a major contributor to employee engagement. </li></ul>7 Steps to Attract and Retain More Young Workers – Step 1
    25. 25. <ul><li>It’s not experience – or college degrees – or other accepted factors… </li></ul><ul><li>… (it) hinges on fit with the job.” </li></ul>Source: Herbert M. Greenberg and Jeanne Greenberg, “Job Matching for Better Sales Performance,” Harvard Business Review, Vol. 58, No. 5.
    26. 26. “… persons who had been matched outperformed to a statistically significant degree, those who had not been matched…” 14 Months After Hire: “Moreover, the differences widened after 14 months” Source: Herbert M. Greenberg and Jeanne Greenberg, “Job Matching for Better Sales Performance,” Harvard Business Review, Vol. 58, No. 5. Six Months After Hire…
    27. 27. <ul><li>Create opportunities that reduce turnover and increase the retention of top performers. Reduced turnover and increased retention are also results of Job Match . </li></ul>7 Steps to Attract and Retain More Young Workers – Step 2
    28. 28. Source: Herbert M. Greenberg and Jeanne Greenberg, “Job Matching for Better Sales Performance,” Harvard Business Review, Vol. 58, No. 5. Without Job Match Job matched candidates stay longer Low Turnover Industry High Turnover Industry % left / fired after 6 months 46% % left / fired after 14 months 57% % left / fired after 6 months 25% % left / fired after 14 months 34% With Job Match 24% 28% 5% 8%
    29. 29. 3. Maximize productivity and employee engagement through well developed training and coaching strategies and instruments. Get the most out of what you’ve got! 7 Steps to Attract and Retain More Young Workers – Step 3
    30. 30. 4. Insure against future retention challenges - use succession planning and job matching systems to plan individual career paths that take people beyond the ‘three year hump’. 7 Steps to Attract and Retain More Young Workers – Step 4
    31. 31. <ul><li>Use 360° multi-rater feedback systems to consistently monitor ‘the pulse’ of the employee / manager relationship. Young workers DEMAND and DESERVE to be managed professionally. </li></ul>7 Steps to Attract and Retain More Young Workers – Step 5
    32. 32. <ul><li>Provide opportunities for open communication and dialog. 360° multi-rater feedback systems are a great place to start. Younger employees EXPECT to have a forum for providing input & feedback. </li></ul>7 Steps to Attract and Retain More Young Workers – Step 6
    33. 33. <ul><li>Determine the behavioral and working-style relationships of young workers and their managers, and use that information to create winning teams. Working styles and team dynamics vary dramatically in today’s diverse workforce. </li></ul>7 Steps to Attract and Retain More Young Workers – Step 7
    34. 34. What if I still do not have enough people?
    35. 35. It’s not ALL bad news – Many Employees Plan Not to Retire… <ul><ul><li></li></ul></ul>At what age do you plan to retire? Source: The New Employee/Employer Equation , The Concours Group and Age Wave, 2004
    36. 36. Cutting Back Has New Meaning: Cyclic – or Project-Based – Work Preference for working after “retirement” Source: The New Employee/Employer Equation , The Concours Group and Age Wave, 2004
    37. 37. What Matters to Mature Workers <ul><li>Comprehensive retirement package (16%) </li></ul><ul><li>Comprehensive benefits package (14%) </li></ul><ul><li>Work that enables me to learn and grow (13%) </li></ul><ul><li>Work that is personally stimulating (12%) </li></ul><ul><li>Workplace that is enjoyable (11%) </li></ul><ul><li>10 percent more in total compensation (8%) </li></ul><ul><li>Flexible work schedule (8%) </li></ul><ul><li>Work that is worthwhile to society (7%) </li></ul><ul><li>Flexible workplace (6%) </li></ul><ul><li>Two additional weeks of paid vacation (5%) </li></ul>Source: The New Employee/Employer Equation Survey
    38. 38. Mature Workers – The Good News on Engagement Source: The New Employee/Employer Equation , The Concours Group and Age Wave, 2004 %
    39. 39. Source: The New Employee/Employer Equation, The Concours Group and Age Wave, 2004 Mature Workers – The Good News on Engagement %
    40. 40. Source: The New Employee/Employer Equation, The Concours Group and Age Wave, 2004 Mature Workers – The Good News on Engagement %
    41. 41. Agenda <ul><li>The Aging Workforce / The Workforce Crisis: Why all the fuss? </li></ul><ul><li>7 Steps to increase attractiveness to young workers </li></ul><ul><li>6 Steps to become more attractive to experienced mature workers </li></ul><ul><li>Using objective data to understand and manage a highly diverse workforce </li></ul>
    42. 42. Losing a Baby Boomer with all of their experience and knowledge is like watching a library burn to the ground.
    43. 43. <ul><li>‘ Retire Retirement’ – create bell-shaped career curves </li></ul>Six Steps to Become More Attractive to Experienced Mature Workers – Step 1
    44. 44. Traditional Retirement: Plummeting from the Peak of Power and Prestige 20s 30s 40s 50s or 60s
    45. 45. The Shape of Careers to Come: “Down Shifting” for Continued Contribution 20s 30s 40s 50s 60s 70s 80s Career Development Career Deceleration Source: Workforce Crisis: How to Beat the Coming Shortage of Skills and Talent by Dychtwald, Erickson, and Morison, April 2006
    46. 46. 2. Use succession, redeployment, and job matching systems well in advance to take a wider view of potential assignments for returning or downshifting workers Six Steps to Become More Attractive to Experienced Mature Workers – Step 2
    47. 47. <ul><li>Align the mature worker with the position, which may include new responsibilities and new management styles You will be exploring placing people in unfamiliar roles – job matching is essential for success. </li></ul>Six Steps to Become More Attractive to Experienced Mature Workers – Step 3
    48. 48. <ul><li>Tap into the experience and management potential in mature workers. Maturity is invaluable. Be careful not to rely on out-dated and subjective practices. </li></ul><ul><li>Source: Beazley, et. al, Continuity Management, Mackay, Alan. “Mature Age Workers: Sustaining Out Future Labor Force.” </li></ul>“ 19% of the entire American workforce holding executive, administrative & managerial positions will retire in the next five years” Six Steps to Become More Attractive to Experienced Mature Workers – Step 4
    49. 49. 5. Ensure managers are ‘age blind’ – reaching out to all age groups in the new blended workforce Six Steps to Become More Attractive to Experienced Mature Workers – Step 5
    50. 50. <ul><li>Use all available resources to understand how to communicate and relate to the future’s highly diverse workforces Mature workers have a strong need to better understand their younger counterparts. Assessments provide much of this needed information. </li></ul>Six Steps to Become More Attractive to Experienced Mature Workers – Step 6
    51. 51. The question is not, “ Is my organization facing an aging workforce crisis?” The real question is, “ Am I ready for it?”
    52. 52. Agenda <ul><li>The Aging Workforce / The Workforce Crisis: Why all the fuss? </li></ul><ul><li>7 Steps to increase attractiveness to young workers </li></ul><ul><li>6 Steps to become more attractive to experienced mature workers </li></ul><ul><li>Using objective data to understand and manage a highly diverse workforce </li></ul>
    53. 53. Timothy Butler & James Waldroop “ Job Sculpting” Harvard Business Review September-October 1999 “ In these days of Talent Wars, the best way to keep your stars is to know them better than they know themselves -and then use that information to customize the career of their dreams”
    54. 54. There are two ways to do this <ul><li>Observation </li></ul><ul><ul><li>Time Consuming </li></ul></ul><ul><ul><li>Expensive </li></ul></ul><ul><ul><li>Highly Subjective </li></ul></ul><ul><li>Assessments </li></ul><ul><ul><li>Quick </li></ul></ul><ul><ul><li>Inexpensive </li></ul></ul><ul><ul><li>Highly Objective </li></ul></ul>
    55. 55. The Profiles Solution <ul><li>The ProfileXT </li></ul><ul><li>CheckPoint 360° </li></ul><ul><li>Profiles Performance Indicator </li></ul><ul><li>Profiles Team Analysis </li></ul>The Profiles Solution uses these assessments to identify your current reality and chart the course for future strategies.
    56. 56. The Profiles Solution <ul><li>Serving over 40,000 clients, Profiles International has provided assessment-based solutions that have proven to reduce the impact of the current workforce crisis. These solutions are critical components to organizations as they strategically plan to not only survive, but to thrive in the near and long-term future. </li></ul>
    57. 57. For more information, <ul><li>Contact: </li></ul>Karen Light, PHR 501-225-7917 [email_address]

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