Workforce Planning: Aging and Employment

Module 5: Managing Productivity

Barbara McIntosh, Ph.D., SPHR 2010

©SHRM 2010

2

Module 5: Overview

1. Ability and health.

2. Managing multi-generational teams.

3. Productivity: Training, retraining and organizational learning.

©SHRM 2010

3

Ability and Physical Health

Some older workers may have health problems, disabilities or physical limitations.

• The likelihood of having a disability increases with age; reported rates double from 19.4 percent for ages 45-54 to 38.4 percent for ages 65-69.¹

• Ergonomic changes in the workplace can address some of these issues.²

Sources: 1. Steinmetz, E. (2006). Americans with Disabilities: 2000. U.S. Census Bureau. 2.OSHA Ergonomic Guidelines. Retrieved November 9, 2009, from www.osha.gov/SLTC/ergonomics/index.html.

©SHRM 2010

4

Self-Reported Health Status

• Attitudes about health status more readily correlate with workforce participation;

• And workforce participation positively affects attitude and cognitive status.

• Between 2000 and 2002, 73 percent of people age 65 and older rated their health as good or better.

Source: Federal Interagency Forum on Aging Related Statistics. (2004). Older Americans 2004; Key Indicators of Well-Being. Washington, D.C., xv.

©SHRM 2010

5

Mental Health Status and Work

• Mental illness in the United States costs $79 billion annually, including the cost of lost productivity.¹

• The National Study of the Changing Workforce found that among those working, mental health improves with age.²> Only 16.6 percent of those age 50 and older reported

poor mental health, compared to 31.2 percent of those 18-30 years of age.

> 32.4 percent of those age 50 and older reported good mental health, compared to 19.4 percent of those 18-30 years of age.

1. President’s New Freedom Commission on Mental Health. (2003). Achieving the Promise: Transforming Mental Health Care in America. Rockville, MD: Department of Health and Human Services.

2. Shen, C., Pitt-Catsouphes, M., & Smyer, M. (2007). Today’s Multi-Generational Workforce: A Proposition of Value. Issue Brief 10. Chestnut Hill, MA: Center on Aging and Work, Boston College.

©SHRM 2010

6

Cost Concerns

• Wide variation in the provision of health-related benefits.> Smaller, private organizations are generally

less likely than medium to larger organizations or government entities to offer these benefits.

• Fear about the need to make “reasonable accommodations” for older workers.> In actuality, one-fifth of job accommodations

cost nothing and 50 percent cost less than $500.

> Further, employers reported an average return of $28.69 in benefits for every dollar invested in accommodations.

Source: The Job Accommodation Network, U.S. Department of Labor’s Office of Disability Employment Policy.

©SHRM 2010

7

Multigenerational Workforce: Necessity, Not Nicety

• By 2012, 40 percent of the U.S. workforce will be age 40 and older.

• By 2012, 36 percent of the Senior Executive Service (the corps of civil service leaders) and 27 percent of federal supervisors are projected to retire.

• The federal government--the nation's largest employer-- is now older than the overall U.S. workforce.

• Federal government: 58 percent are age 45 and older.• Private sector: 41 percent are age 45 and older .

• Already multigenerational in some sectors.

Sources:Partnership for Public Service. (2008). A Golden Opportunity: Recruiting Baby

Boomers Into Government. Washington, DC: Partnership for Public Service.Bureau of Labor Statistics. (September, 2005). The Employment Situation: September

2007, September 2006 and the Central Personnel Data File. Washington, DC: U.S. Office of Personnel Management.

©SHRM 2010

8

Multigenerational Workforces Are Driven By:

• Labor shortages (not surplus).• Knowledge base (not physical labor).• Team dynamics (not hierarchy).• Technology.• Globalization.

©SHRM 2010

9

What Do We Know About Multiple-Generation Interactions?

Interaction research literature> Family-based:

• Parenting.• Grandparenting.

> Relationship-based:• Supervising and counseling children,

young adults.• Teaching (expert).• Mentoring (sharing).

> Work-based:• Reporting structures.• Non-personal goals and expectations.

©SHRM 2010

10

Cohort Characteristics: All Valued, All Needed

• Veterans (1909-1945):> Outlook: practical.> Work ethic: dedicated.> View of authority: respectful.> Leadership by hierarchy.> Relationships: personal sacrifice.> Perspective: civic.

• Baby Boomers (1946-1964):> Outlook: optimistic.> Work ethic: driven.> View of authority: love/hate.> Leadership by consensus.> Relationships: personal gratification.> Perspective: team.

©SHRM 2010

11

• Generation X (1965-1985):> Outlook: skeptical.> Work ethic: balanced.> View of authority: unimpressed.> Leadership by competence.> Relationships: reluctant to commit.> Perspective: self.

• Generation Y/Millennial (1986- ):> Outlook: hopeful.> Work ethic: ambitious.> View of authority: relaxed, polite.> Leadership by achievers.> Relationships: loyal.> Perspective: civic.

Raines, C. (2003). Connecting Generations. Menlo Park, CA.: Crisp Publications.

.

Cohort Characteristics: All Valued, All Needed

©SHRM 2010

12

Messages That Shaped Them

• Veterans (1909-1945):> Make do or do without.> Stay in line.> Sacrifice.> Be heroic.> Consider the common good.

• Baby Boomers (1946-1964):> Be anything you want to be.> Change the world.> Work well with others.> Live up to expectations.> Duck and cover.

©SHRM 2010

13

Messages That Shaped Them

• Generation X (1965-1985):> Don’t count on it.> Remember--heroes…aren’t.> Get real.> Survive—staying alive.> Ask why.

• Generation Y/Millennial (1986- ):> Be smart—you are special.> Leave no one behind.> Connect 24/7.> Achieve now!> Serve your community.

Raines, C. (2003). Connecting Generations. Menlo Park, CA.: Crisp Publications.

©SHRM 2010

14

Stereotyping

• Stereotyping is the process of assigning traits to people based on their membership in a social category.

• There is wider variation within cohorts than between cohorts.

• Generalizations, however, offer insight, awareness and empathy.

• Social cognition – self-ascribed characterizations.

©SHRM 2010

15

Social Identity Theory

• How we see ourselves as unique individuals defines, in part, our identity.

• Identity also comes from membership in different social groups (our social identity).

For example: “I am a mother, wife and teacher. My family lives in California, and I am a skier.”

Each of these groups carries different connotations.

©SHRM 2010

16

Management Implications

Manage organization culture!> Respect all forms of diversity.> Value others people’s contributions to the

team.> Show sensitivity to other perspectives.> Be open to change.> Monitor policies and practices regarding the

treatment of others.> Top management – voice.

©SHRM 2010

17

Generational Awareness

• Audit.• Training: Develop a value proposition for each

generation.• Review policies and practices in terms of

preferences.• Review makeup of the board of directors.

©SHRM 2010

18

Six Principles for Mixing Generations (C. Raines)

1. Initiate conversations about generations.2. Ask people about their needs and preferences.3. Offer options.4. Personalize your style.5. Build on strengths.6. Pursue different perspectives.

©SHRM 2010

19

Generations-Friendly?

• There’s not just one type of person who is successful here.

• We form teams to consciously involve multiple perspectives.

• Employees are treated as customers.• We talk about different viewpoints.

©SHRM 2010

20

Generations-Friendly?

• We talk openly about what we want from our jobs.

• We have a minimum of bureaucracy.• Our work atmosphere is relaxed and informal.• We have a lot of fun together.• We are known for being straightforward with

each other.

©SHRM 2010

21

Generations-Friendly?

• We expect the best from everyone. We treat them as if they have great things to offer and are motivated to do their best.

• We focus on retention every day.• Our work assignments are broad, provide variety

and challenge and allow each employee to develop a range of skills.

Adapted from Zemke, R., Raines, C., & Filipczak, B. (2000). Generations at Work: Managing the Clash of Veterans, Boomers, Xers and Nexters in Your Workplace. New York: Amacom.

©SHRM 2010

22

Attitudes→Productivity→Training

1. Is there cooperation across generations?

2. Are individuals--regardless of age--held accountable (meaningful performance appraisals)?

3. Do stereotypes unintentionally create barriers for older workers’ training and development?

4. Do older workers fail to take advantage of training and development opportunities because of social cognition and social identity?

©SHRM 2010

23

Productivity: Training and Development

• Upgrading and developing new skills is essential in all organizations. Training is a necessity, not a luxury.

• Older workers are not poor investments for training. Employers cannot make assumptions about retention and ROI.

• Older workers provide value in institutional knowledge that employers frequently fail to consider when thinking only about external costs. (Committee for Economic Development, 1999, 35-36)

• “New challenges” is a primary determinant of employees’ intention to stay in an organization. The opportunity for new challenges is a retention tool.

©SHRM 2010

24

Motivation Drives Training

©SHRM 2010

25

Purpose and Outcome of Training

• Be clear about the reason for training:> Remedial? > Refresher? > New skills?

• Goals/assessment: > Organization’s objectives?> Value of performance increases compared

with the cost of training.> Contribution to performance?

©SHRM 2010

26

Employers’ Perception of Selected Attributes by Career Stage

©SHRM 2010

27

Learning/Training Differences

• Well-learned procedures are maintained into old age, and there is little evidence to suggest that older workers are less productive than younger workers (Czaja, 2001; Fisk et al., 2004).

• Acquiring new skills: Older adults take longer to complete training and demonstrated less mastery of the training material (Kubeck, 1996).

©SHRM 2010

28

Learning/Training Differences

• Older adults take longer to perform new tasks. • Older adults require more help and hands-on

practice. • Training techniques do not vary much with age in

large meta-analysis.

BOTTOM-LINE: Not enough research has been done in this area.

©SHRM 2010

29

Productivity: Training and Retraining

Acquiring or maintaining computer skills is key.• In 2003:

56 percent of 30-to 49-year-olds were online.36 percent of 50-to 64-year-olds were online.Only 25 percent of Americans age 65 and older were online.

• Internet use among seniors, however, is rising dramatically. According to InsideFacebook.com, between Sept. 2008 and March 2009, the number of users between the ages of 55 and 65 grew by more than 500 percent.

Sources: Czaja, S.J., Charness, N., Fisk, A.D., Hertzog. C., Nair, S.N., Rogers, W., & Sharit, J. (June, 2006). Factors Predicting the Use of Technology: Findings From the Center for Research and Education on Aging and Technology Enhancement (CREATE). Psychological Aging, 2, 333-352.Pew Internet and American Life Project. (2004). Older Americans and the Internet. Washington, DC: Pew.

©SHRM 2010

30

Employer Investment Considerations

• Investing in training older workers:> Con: Older workers may be close to

retirement, reducing the return on investment.

> Pro: A key way to retain an aging worker is to provide growth and challenge.

• Other investment considerations that support additional training:> Experiential capital.> Social capital: professional and

client/customer networks.

©SHRM 2010

31

Managing Productivity Summary

This module has addressed three areas for HR attention:

1. Ability and health.

2. Managing a multi-generational workforce.

3. Productivity: > Training.> Retraining.> Investment considerations.

Each area offers multiple opportunities for HR to address older worker issues.