AARP Executive Insights

Webinar Series
Talent Management for an Age Diverse Workforce
Webcasted on Wednesday, June 23, 2010
2:00 p.m. to 3:00 p.m. EDT
HRCI Credits

HR Certification Institute Pre-Approved Program:

 This Webinar is pre-approved for one strategic credit hour

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information can be obtained sending an email to
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Learning Objectives

 Update on the economy impact on the changing

demographics of the workplace
 Q3 2010 Hiring projections
 Findings/Implications from the Sloan Center on Aging &
Work research study, The Pressures of Talent
Management
 Strategies and industry practices that have been adopted
by forward thinking organizations
 Thought process for implementing an age diverse talent
management strategy

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 Today’s Presenters

Deborah Russell Kathy Lynch Jill Braceland

Director, Workforce Issues Director, Employer Engagement Diversity & Work Life Specialist
AARP Sloan Center on Aging & Work Mitre Corporation
Boston College

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Economic Uncertainty
Continues
 Unemployment remains near 27 year high
 Jobless claims, consumer spending, and home sales
weak
 Budget cuts in European countries
 Financial Markets are fragile
 Fed expected to leave Policy unchanged
 Slight improvement in hiring outlook

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U.S. Workforce Demographic Trends
Aging of the U.S.
Four generations
workforce: 76m Lower birth rates working side-by-side
Baby Boomers

Workforce 2010

Reversal of High talent

Concerned among the
retirement trends
about stability unemployed

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 Talent Pressures, Economic Pressures,
 Age Pressures

Moving from Awareness to Action



 Wednesday, June 23, 2010

 Kathy Lynch
 Director, Employer Engagement
 Sloan Center on Aging & Work

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Sloan Center on Aging &
Work
• Founded in 2005: Alfred P.
Sloan Foundation Grant
• Rigorous Research
• Evidence for Action
• Quality of Employment
• Prism of Age
Current Areas of Focus
Employer
Learning
Circle

10 Countries – 30 Worksites
2010 Data Collection

Age Diversity + Team Innovation =

Beyond Age Workshops
Competitive Edge
The Center’s
Workplace Impact
Model
Awareness
Older Workers are
Working Longer
Percent of Age Groups in Labor Force

65+

55-64

45-54
2010
Age

35-44 2000

25-34

0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00%
Percent of Population

Toosi, M. (2002, May). A Century of Change: The U.S. labor force, 1950 – 2050. Monthly Labor Review May, 125, 15 – 28.
Bureau of Labor Statistics (BLS). (2010) [Analysis of US Current Population Survey.] Unpublished raw data.
  Research tells us:
1.0%
2.0%
10.1%

 40% of employers anticipate

ageing of the workforce will 37.8% Very Negative
have a “negative/very Negative

negative” impact on their No Impact

business over the next 3 Positive

years.
49.1%
Very Postive

 Almost 40% of employers

report a sense of “age or
age/economic” pressure.

Sweet, S., Pitt-Catsouphes, M., Lynch, K., and Whalley, E. (2009, October) Talent Management Study: The
Pressures of Talent Management
But still a disconnect:

 68% reported not having analyzed their workforce demographics.

 77% stated that they have not analyzed the projected retirement
rates of their employees.

Analyzed projected retirement

rates
46.7% 29.8% 18.9% 4.7%

Assessed employee career

plans
40.0% 37.2% 17.4% 5.4%

Anaylzed demographic
makeup
28.8% 39.5% 25.1% 6.5%

Not at all
Limited extent
Developed succession plans 25.7% 38.1% 25.6% 10.6%
Moderate extent
Great extent
Assessed skills organization
anticipates needing
13.1% 42.7% 33.3% 10.9%

Assessed competency sets

of employees 10.0% 39.7% 36.0% 14.2%

Assessed supervisors' ability

to anticipate/plan for staffing 12.6% 36.6% 36.6% 14.2%
needs

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Sweet, S., Pitt-Catsouphes, M., Lynch, K., and Whalley, E. (2009, October) Talent Management Study: The
Pressures of Talent Management
Why?
Assess the “what”!
1. What is Age?

2. What is the context of the “age” impact on your

organization?
The Prism of Age

Chronological Age

AGE Generational Age

Life Events Age

Organizational Age

Occupational Age

Relative Age

Social Age
Physical Age
What is the context?
 Employer groups by impact of
Pressure economic
Combinations: pressures and aging workforce
N=646
One in four
employers in 2009
reported that age 24.2%
27.9%
and economic
pressures were Age-Economically Pressured

working in tandem Age Pressured

Economically Pressured
to negatively Lower Pressured

impact their
operations. 11.9%

36.0%

Sweet, S., Pitt-Catsouphes, M., Lynch, K., and Whalley, E. (2009, October) Talent Management Study: The
Pressures of Talent Management
 In your opinion, to what extent does your organization
have programs or policies for the engaging of older
workers?
N=669

Age/Economically
2% 53% 44%
Pressured

Age Pressured 1% 66% 33%

Excessive policies/programs

Just the right number of

policies/programs
Too few policies/programs
Economically
0% 69% 31%
Pressured

Lower Pressured 2% 65% 33%

0% 20% 40% 60% 80% 100%

Sweet, S., Pitt-Catsouphes, M., Lynch, K., and Whalley, E. (2009, October) Talent Management Study: The
Pressures of Talent Management
Approximately what portion of your employees (thinking
about both full-time and part-time employees) can do the
following?
N=644

Transfer to Job With

Reduced 7.8% 5.1% 48.2% 38.9%
Pay/Responsibilities

Take Education Leave 7.5% 7.0% 37.0% 48.6%

All/Nearly All
Choose Schedule that Most
9.8% 14.7% 54.1% 21.4%
Varies from Typical Some
None

Request Change in
Start/Quit Time from Time to 11.5% 16.1% 58.5% 13.8%
Time

Extended Caregiving
28.3% 9.0% 40.8% 21.9%
Leaves

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
The Age/Economic Pressure Tool
Where does your
organization fit?
How does your
organization compare?
What does your
quadrant mean?
Quadrant B
Lower Age, Higher Economic Pressure
• Identify other organizational strategies impacted by the economy.
• Consider whether your organization is planning a workforce reduction &
look at demographic projections to support this strategy.
• Has knowledge management been included in discussions? Consider doing
a complete criticality assessment.
• Consider which business areas and positions are most at risk for talent
shortages.
• Identify and target specific risk points that can help you to better allocate
resources.
• Downsizing may offer opportunity to consider traditional staffing and training
models.
• Consider if there are opportunities for employees to re-career within your
organization.
What does your
quadrant mean?
Quadrant D
Higher Age, Lower Economic Pressure
• Identify potential partners within HR and organizational development.
• Consider who else is looking at age demographics.
• Identify how your organization’s age demographics align with your
organizational goals.
• Consider if particular areas or occupations are at high risk; engage partners
outside HR.
Workforce Planning
Strategies by Pressure
Group
Workforce Planning
Strategies by Pressure
Group
Workforce Planning
Strategies by Pressure
Group
MITRE Talent Management

AARP Executive Insight Series

June 23, 2010

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Corporate Mandate

Goal 5: Foster a World-Class

Workforce

We must attract, develop, and retain the best and

the brightest people who are passionately
committed to serving the public interest.

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MITRE Constraints

National shortage of engineering talent

Classified work with Federal government
o Must be US Citizen

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Strategic Development

Workforce Development Briefing to Officers

May 2010

Initiatives:
 Assemble internal/external current and historic
demographic data to better understand where
we’ve been, where we are, and where we want
to go
 Execute “deep dive” analysis into Centers to
capture future human capital priorities

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Steps Taken

Interview Officers
Defining what we want in the future
Analyze current and future demographics

MITRE
Officer Interview
Results
Talent needs for future success include:

 The ability to leverage diversity, especially

balancing newer graduates with senior expertise.
 A culture that fosters innovation, as well as
transferring within and across organizational lines.
 The ability to build consensus across multiple
groups.

MITRE
What we want in the
future

 To place more emphasis on innovation through

an integrated and synthesized approach to work
and leadership.
 To never undercut, but increase the flexibility for
continuous learning.
 To foster and leverage the emerging workforce
with collaboration and knowledge sharing skills

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 Demographics

Average highest-degree level unchanged over 25

years
Increasing proportion of staff reaching typical
retirement age
Attrition among staff of typical retirement age has
been stable or declining
In 2009, over 50% of our hires were from internal
referrals

MITRE
WORK IN PROGRESS

 Extend the dialogue to next level of

management within the Centers
 Re-assess recruiting for diversity and younger
generation
 Focus groups for quiet needs
 Increase STEM activities

MITRE
WORK IN PROGRESS

 Embrace diversity of thought

 Expand mentoring programs, including senior
management with high potential personnel
 Add training in leading diverse and multi-
generational teams

MITRE
Business Case for Mature Workers
 69% of mature workers not retired say they will work
during retirement

 Companies may avoid talent crunch if mature workers

continue working longer than previous generations for
both financial and personal reasons

 Companies may find themselves competing for the

services of older workers, and will need to offer the kind
of rewards that 50+ employees want and expect

 Mature workers are more motivated than others to

exceed expectations on the job
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Business Case for Mature Workers

 Older workers are more motivated to exceed

expectations on the job than their younger counterparts

 High replacement costs equal at least 50% of an

individual’s salary

 Cost benefits of avoiding turnover can exceed

compensation and benefit costs of older workers

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ADDITIONAL RESOURCES:
Download Age/Economic Pressure Map

The Sloan Center on Aging & Work will be

releasing additional reports this month, including:

- Health Care & Social Assistance Sector To continue the conversation:

- Retail Sector
- Accommodations & Food Services Sector
Kathy Lynch
Additional reports, to be released throughout
July 2010, will include the following industry
Sloan Center on Aging & Work
sectors: Construction; Professional, Technical lynchks@bc.edu
& Scientific Services; Finance & Insurance; 617-552-2865
Wholesale; and Transportation & Warehousing.

For more information on the talent management

study and selected findings from our reports,
please visit:

http://www.bc.edu/research/agingandwork/projects/talentMgmt.html
Talent Management
Resources

 Workforce Assessment Tool – A tool to strengthen your

ability to recruit and retain talent
 Workforce Management Training Modules –
Customizable training you can use to increase the
competencies of your staff

 Employer Resource Center – See section on Recruitment

 National Employer Team – A recruiting source targeting

experienced talent

Visit www.AARP.org/erc for these and other resources

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Talent Management
Resources
 AARP SmartBrief – E-newsletter update on changing workforce
issues and recruiting strategies
http://www.smartbrief.com/aarp/

 Online Job Sites – A list of job sites that appeal to experienced

workers
http://bulletin.aarp.org/yourmoney/work/articles/job_search_resources.html

 Recruiting Practices: 2008 AARP Best Employers for Workers Over

50 – Article summarizing the winning recruiting strategies
http://www.aarp.org/money/work/best_employers/articles/recruiting_practices_2008_b
est_employers.html

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