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Trends & Challengesin

Aging Workforce Strategies

Focus: Workforce Transitions

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AGENDA

Word on the Street.

Current Actions.

Challenges.

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THE VALUE of the MATURE WORKER

Invoice

One chalk mark -- $ 1Knowing where to put it -- $49,999

Total $50,000

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WORD ON THE STREET

What are people saying?

Who? HR, KM, Senior Managers Awareness of Aging Workforce & Impact:

Everyone is aware Aging workforce highly valued

• Experience and Relationships

• Hard to replace skill-sets …

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WORD ON THE STREET

What are people saying?

Management Perspective of Aging Workforce Implications Human Resources

• Anticipating talent shortages

• Putting age appropriate benefits and flexible work options in place to retain older workers

Knowledge Managers• CKO’s & their programs becoming popular

• Social Media

Senior Managers• Focus is largely on management

• Knowledge Management initiatives growing

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WORD ON THE STREET

What are people saying?

Impact to Organization• Loss of critical knowledge, experience

• Numerous vacancies in near future

• Drain on recruiting resources

• Scarce skill-sets

• Little strategic connection yet… (bottom line, shareholder value, etc.)

Impact to Society• Social Security

• Over abundance of volunteers

• Encore careers

• Not much about the opportunities created

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WORD ON THE STREET

What are people saying? Issues

Economic Influence & Uncertainty – Fold-Over Effect

Internal Resources Multiple Generations in the Workforce Short Supply of Gen X Competing Demands

• At Work – Today vs. Tomorrow

• At Home – “Lions and Tigers and Bears! Oh My!”

Sense of Urgency

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WORD ON THE STREET

What are people saying?

Public Sector All the buzz 50%+ already eligible to retire Knowledge Management Hiring Initiatives for Next 3

Years Retention & Engagement

Challenges

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WORD ON THE STREET

What are people saying?

Private Sector Some Industries More Than Others What a Difference 6 Months Makes Focus on Senior Management Global Implications

Education An Interesting Twist

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EXAMPLE: Utility Industry Discussion

The utility workforce is aging: repair workers, engineers, managers -- people with skills essential to a reliable supply. How will we educate and train the next generation of utility

workers when utility engineering is not considered an attractive career?

Skills necessary to successfully compete in the utility industry are growing increasingly more complex

Retirements and exodus are increasing as the workforce ages.

New workers are not entering the industry fast enough and utility employment has declined steadily since the introduction of deregulation legislation.

Skills in energy trading (power purchasing) ISO rules and markets, forecasting, and mathematical modeling will be critical

Over one-half (50%) of utility workers will be eligible to retire in the next 6-8 years.

It is unclear whether pension reform will accelerate problems or reduce the risks of a departing work force.

The reduction in workforce includes significant numbers of workers with long institutional memory and knowledge who will be difficult and costly to replace.

This issue has been worsening and reached a critical state within the

past two years.

The future includes severe labor shortages made more acute since earlier inefficiencies have already

been reduced.

More outsourcing and technology are needed to mitigate serious labor

shortages and demands.

Risks and complications emerge when labor and services such as

emergency restoration are outsourced. It also creates a new

industry for these services.

*Utility Trends 2008: An Ongoing View

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EXAMPLE: Utility Industry Discussion

Short-term crises are dominating utility management attention and diverting it from other critical issues. Of particular concern is a long-time (and strangely not noticed) loss of

experience and wisdom at utilities through staffing reductions and attrition.

Employment after attrition

Employment need

Essential new hires that were not added

2007 2010Time

Nu

mb

er of Em

ployees

(tens of th

ousan

ds)

2015

This aging utility workforce problem will become increasingly serious as today’s utility workers approach retirement together.

*Utility Trends 2008: An Ongoing View

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CURRENT ACTIONS

So what are organizations doing now to address the mass exodus of Baby Boomers in the

not too distant future?

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CURRENT ACTIONS

Hearing About… Succession Planning Mentoring (Public Sector) Leadership Development Building Pipelines Knowledge Management Phased Retirement Contracting

Not So Much… Flexible Work Arrangements

PT Schedules Telecommuting Restructured jobs

Mentoring (Private Sector) Consulting Retention Strategies Assessments to ID Critical Skills

& Relationships

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CHALLENGES

Challenges with Aging Workforce Strategies

Quantifying Impact of Aging Workforce Identifying Impact of Retirement Waves on

“Shareholder” Value Creating Sense of Urgency Assessing Institutional Knowledge Capturing Critical Knowledge & Relationships Scarcity of Talent and Skills Focus & Resources

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OPPORTUNITIES

"We are continuously faced by great opportunities brilliantly disguised as insoluble problems."

Lee Iacoca

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OPPORTUNITIES

We shouldn’t talk about the challenges without also

discussing the opportunities.

Your Turn!