Workforce Planning: Aging and Employment Module 4: The Employer Perspective

1. Workforce Planning: Aging and EmploymentModule 4: The Employer Perspective Barbara McIntosh, Ph.D., SPHR 2010

2. �SHRM 2010 2 Module 4: Overview of the Employer Perspective Labor supply issues. Business case for older workers. Best practices models. Review organizational strategy. Implications for HR policies and practices: HR audit/cost assessment. Retention and recruiting issues. This slide outlines the topics covered in this learning module. In this module, only HR audit and staffing issues are covered under HR policies and practices because this is a large topic area. Additional topics like performance appraisals, ability and health, managing multigenerational teams, and training and development are covered in subsequent modules. Assignment for Module 5 This assignment can be made at the beginning or end of class. Let students know that the next session will be on the employer perspective and they will report their research findings in class. If the class is large, this can be a team project or done in pairs. Assignment: The following organizations were chosen by AARP in 2009 as the �Best Employers for Workers 50+.� Have students collect information about these organizations from their web sites and through annual reports. All of these organizations were recognized as having innovative programming for older workers. This should be an oral report in class with a summary submitted for grading. Cornell University First Horizon National Corporation National Institutes of Health The YMCA of Greater Rochester National Rural Electric Cooperative Association S.C. Johnson & Son, Inc. Massachusetts Institute of Technology Stanley Consultants Brevard Public Schools George Mason University How are these organizations distinguishing themselves? Are they receiving awards? What innovative programs have they implemented? Is there any evidence of �age washing� (the organization reports to be age-friendly but is not doing anything exceptional)? This slide outlines the topics covered in this learning module. In this module, only HR audit and staffing issues are covered under HR policies and practices because this is a large topic area. Additional topics like performance appraisals, ability and health, managing multigenerational teams, and training and development are covered in subsequent modules. Assignment for Module 5 This assignment can be made at the beginning or end of class. Let students know that the next session will be on the employer perspective and they will report their research findings in class. If the class is large, this can be a team project or done in pairs. Assignment: The following organizations were chosen by AARP in 2009 as the �Best Employers for Workers 50+.� Have students collect information about these organizations from their web sites and through annual reports. All of these organizations were recognized as having innovative programming for older workers. This should be an oral report in class with a summary submitted for grading. Cornell University First Horizon National Corporation National Institutes of Health The YMCA of Greater Rochester National Rural Electric Cooperative Association S.C. Johnson & Son, Inc. Massachusetts Institute of Technology Stanley Consultants Brevard Public Schools George Mason University How are these organizations distinguishing themselves? Are they receiving awards? What innovative programs have they implemented? Is there any evidence of �age washing� (the organization reports to be age-friendly but is not doing anything exceptional)?

3. �SHRM 2010 3 Employer Perspective:Demographics and Labor Supply More workers are age 55 and older. This increases employer receptivity to older workers. In 2000, 13 percent of workers were age 55 and older. Those between the ages of 55 and 64 are the fastest-growing segment. By 2015, 20 percent of workers will be age 55 and older. Smaller number of cohorts are entering the labor force. Critical labor shortages were predicted in dominant, growing, skill-specific service sectors: *Aerospace *Transportation *Nursing and health care *Energy The demographics were discussed earlier, but this is a good place to ask students what changes they think will happen in the workplace because of this shift. Smaller cohorts entering the labor force means that the proportion of young people entering the workforce is not as large as it use to be, and there are insufficient numbers to replace those leaving the labor force. Because we were predicting significant shortages, it is important to reconsider the role of work in later years from the employer�s perspective. Will employers shape change or will employees? Will the large number of Baby Boomers seeking continued employment shape the change, or will both employers and employees contribute to the change? What changes are happening because of the recession? See: U.S. Department of Labor Interagency Taskforce. (2008). Report of the Taskforce on the Aging of the American Workforce. U.S. Government Accounting Office. (November 2001). Older workers: Demographic trends pose challenges for employers and workers. Report to the Ranking Minority Member, Subcommittee on Employer-Employee Relations, Committee on Education and the Workforce, U.S. House of Representatives, GAO-02-85. Copies can be obtained through the GAO web site (www.gao.gov). The demographics were discussed earlier, but this is a good place to ask students what changes they think will happen in the workplace because of this shift. Smaller cohorts entering the labor force means that the proportion of young people entering the workforce is not as large as it use to be, and there are insufficient numbers to replace those leaving the labor force. Because we were predicting significant shortages, it is important to reconsider the role of work in later years from the employer�s perspective. Will employers shape change or will employees? Will the large number of Baby Boomers seeking continued employment shape the change, or will both employers and employees contribute to the change? What changes are happening because of the recession? See: U.S. Department of Labor Interagency Taskforce. (2008). Report of the Taskforce on the Aging of the American Workforce. U.S. Government Accounting Office. (November 2001). Older workers: Demographic trends pose challenges for employers and workers. Report to the Ranking Minority Member, Subcommittee on Employer-Employee Relations, Committee on Education and the Workforce, U.S. House of Representatives, GAO-02-85. Copies can be obtained through the GAO web site (www.gao.gov).

4. �SHRM 2010 4 Demand and Aging Workers Assignment for Modules 4 and 5 [Note: This assignment was made in Module 3, so students should be prepared to make comments and suggestions about the industries listed on this slide.] Assignment: Look at the effects of the large number of workers age 45 and older in the following high-growth industries (in order): aerospace, energy, transportation, advanced manufacturing, health care, automotive, financial services, construction, retail, information technology and hospitality. How have these industries been affected by the recession? Note to students that automotive industry is sixth on the slide. What are the issues (knowledge transfer, higher wages for retention, etc.)? What are some alternative solutions (technology, global outsourcing, changing lifestyle, etc.)? Are there public policy issues? For example, health care delivery is an essential service. Where are the nurses, pharmacists, lab technicians, etc., going to come from? This discussion will help instructors transition to the next module on managing productivity, which includes a section on learning and knowledge transfer, two critical pressure points. Students can further report their findings then.Assignment for Modules 4 and 5 [Note: This assignment was made in Module 3, so students should be prepared to make comments and suggestions about the industries listed on this slide.] Assignment: Look at the effects of the large number of workers age 45 and older in the following high-growth industries (in order): aerospace, energy, transportation, advanced manufacturing, health care, automotive, financial services, construction, retail, information technology and hospitality. How have these industries been affected by the recession? Note to students that automotive industry is sixth on the slide. What are the issues (knowledge transfer, higher wages for retention, etc.)? What are some alternative solutions (technology, global outsourcing, changing lifestyle, etc.)? Are there public policy issues? For example, health care delivery is an essential service. Where are the nurses, pharmacists, lab technicians, etc., going to come from? This discussion will help instructors transition to the next module on managing productivity, which includes a section on learning and knowledge transfer, two critical pressure points. Students can further report their findings then.

5. �SHRM 2010 5 Employer View: Surplus or Shortage? Labor surplus: Recession means layoffs. Are there implications for age distribution? Changing markets means shift in required skills mix. Labor shortage alternatives: Other labor market segments. Immigration: H-1B visas, set at 195,000 during tech boom, were reduced to 65,000 for FY 2005; they were gone on the first day of availability. Reduced flow of foreign students. Technology. Current aging workers and retirees. Labor surplus Discuss the implications of the recession on an employer�s supply of labor in the short run and long run. What are the implications of not having the right mix? Is age an issue here? Labor shortage In the past, we looked to expand the labor market to include segments of the population that we had historically excluded (e.g., women and minorities). We also managed existing sources of labor differently (i.e., importing additional labor from overseas). H1-B visas are work permits for non-U.S. citizens to work in the U.S. These are more restricted. There are also fewer foreign students studying and remaining in the United States. Immigration: All industrialized countries are facing the same demographic trends, so skilled labor may not be as readily available from these sources. Technology: We have moved into robotics, telemedicine, etc. Students should discuss the limitations of technology in the service economy. Do they believe there are limitations? Untapped source: Aging workers and retirees not being fully utilized, usually because of stereotypes held by employers, employees and retirees. Stereotypes include the perception that older workers are sick more often; cannot handle technology; cannot learn new ways of doing a job; are resistant to change; are less productive, etc. These stereotypes have all been proven wrong. Barrier to managing surplus or shortage: Perceived and real age discrimination. This is an increasingly visible issue that must be addressed in the U.S. workplace from the perspectives of all concerned. Labor surplus Discuss the implications of the recession on an employer�s supply of labor in the short run and long run. What are the implications of not having the right mix? Is age an issue here? Labor shortage In the past, we looked to expand the labor market to include segments of the population that we had historically excluded (e.g., women and minorities). We also managed existing sources of labor differently (i.e., importing additional labor from overseas). H1-B visas are work permits for non-U.S. citizens to work in the U.S. These are more restricted. There are also fewer foreign students studying and remaining in the United States. Immigration: All industrialized countries are facing the same demographic trends, so skilled labor may not be as readily available from these sources. Technology: We have moved into robotics, telemedicine, etc. Students should discuss the limitations of technology in the service economy. Do they believe there are limitations? Untapped source: Aging workers and retirees not being fully utilized, usually because of stereotypes held by employers, employees and retirees. Stereotypes include the perception that older workers are sick more often; cannot handle technology; cannot learn new ways of doing a job; are resistant to change; are less productive, etc. These stereotypes have all been proven wrong. Barrier to managing surplus or shortage: Perceived and real age discrimination. This is an increasingly visible issue that must be addressed in the U.S. workplace from the perspectives of all concerned.

6. �SHRM 2010 6 Business Case for Older Workers Experienced contributors. Knowledge retention. Reduced costs in retention vs. recruitment. New product and service markets. Customer sensitivity. Employer of choice (competitive in labor market). More attractive to investors if stable. Greater efficiency. Experienced contributors: Older workers have more years in the workplace, and this experience can provide perspective with respect to new ventures. These workers know how to do their jobs. Knowledge retention: Older workers have explicit and implicit job knowledge that employers do not want to lose. Reduced cost: Employers will save money if they reduce turnover (as shown in the notes on Slides 12-14). Costs include direct costs of hiring a replacement; lower productivity during transition periods; and lost organizational learning. New product and service markets: Aging employees may recognize new business opportunities that are driven by new demographics. For example, 70-year-olds were the big hope for Japan�s motorcycle market at the Tokyo auto show in October 2009. At the auto show, Yamaha unveiled its first motorcycle designed entirely with the elderly rider in mind (TimesOnLine, Oct. 10, 2009). www.timesonline.co.uk/tol/news/world/asia/article6868855.ece Customer sensitivity: Customers tend to trust more mature, experienced employees because of assumptions about their knowledge of the product or service. Customers or clients may also relate better to an individual who is from the same age cohort. Employer of choice: Some employers are already working to become �age-friendly.� This is similar to employers being identified as being women- or-family friendly. This designation means that these employers should be more attractive when recruiting older workers, and they will have a better image with the aging populations looking to purchase their products or services. Stability is important! Greater efficiency: If aging employees are retained, less time is spent searching the labor market and bringing new employees up to speed.Experienced contributors: Older workers have more years in the workplace, and this experience can provide perspective with respect to new ventures. These workers know how to do their jobs. Knowledge retention: Older workers have explicit and implicit job knowledge that employers do not want to lose. Reduced cost: Employers will save money if they reduce turnover (as shown in the notes on Slides 12-14). Costs include direct costs of hiring a replacement; lower productivity during transition periods; and lost organizational learning. New product and service markets: Aging employees may recognize new business opportunities that are driven by new demographics. For example, 70-year-olds were the big hope for Japan�s motorcycle market at the Tokyo auto show in October 2009. At the auto show, Yamaha unveiled its first motorcycle designed entirely with the elderly rider in mind (TimesOnLine, Oct. 10, 2009). www.timesonline.co.uk/tol/news/world/asia/article6868855.ece Customer sensitivity: Customers tend to trust more mature, experienced employees because of assumptions about their knowledge of the product or service. Customers or clients may also relate better to an individual who is from the same age cohort. Employer of choice: Some employers are already working to become �age-friendly.� This is similar to employers being identified as being women- or-family friendly. This designation means that these employers should be more attractive when recruiting older workers, and they will have a better image with the aging populations looking to purchase their products or services. Stability is important! Greater efficiency: If aging employees are retained, less time is spent searching the labor market and bringing new employees up to speed.

7. �SHRM 2010 7 Award-Winning Companies The top 10 2009 AARP Best Employers for Workers age 50 and older are: 1. Cornell University (Ithaca, NY) 2. First Horizon National Corporation (Memphis, TN) 3. National Institutes of Health (Bethesda, MD) 4. The YMCA of Greater Rochester (Rochester, NY) 5. National Rural Electric Cooperative Association (Arlington, VA) 6. S. C. Johnson & Son, Inc. (Racine, WI) 7. Massachusetts Institute of Technology (Boston, MA) 8. Stanley Consultants (Muscatine, IA) 9. Brevard Public Schools (Viera, Fla.) 10. George Mason University (Fairfax, VA) Assignment: Students were asked to collect information about these organizations through their web sites and annual reports. Class discussion: How are these organizations distinguishing themselves? What innovative programming have they implemented? Is there any evidence of �age washing� (this means that lip service is given to aging issue but nothing substantive is taking place)? Instructor�s note: The next slide shows some of the programs have been recognized by AARP in the past. Assignment: Students were asked to collect information about these organizations through their web sites and annual reports. Class discussion: How are these organizations distinguishing themselves? What innovative programming have they implemented? Is there any evidence of �age washing� (this means that lip service is given to aging issue but nothing substantive is taking place)? Instructor�s note: The next slide shows some of the programs have been recognized by AARP in the past.

8. �SHRM 2010 8 Why Are They Winners? For all the recognized organizations, the policies for recruiting and retaining a mature workforce set high standards for the workplace. Types of programs that win recognition: Flexible work arrangements to help workers balance their professional and personal lives. On-site medical centers. On-site education programs that provide college credits. Ask students to report on the organizations they researched before showing this slide.Ask students to report on the organizations they researched before showing this slide.

9. �SHRM 2010 9 Strategy Review: Start at the Top Organizational age audit (profile organization). Mission, vision; diversity with clout. Organizational culture. Bottom line: cost assessment model. Audit all HR policies and practices regarding the effects of age. The previous slide highlighted organizations that are age-friendly. How does an HR professional assess his or her own organization in terms of the aging workforce and older workers? One needs to look at the organization�s strategy: What does the organization currently look like? Is it multigenerational or lopsided in either direction in terms of age? Provide a snapshot of the organization. How does the organization position itself within the community and relevant labor market? Is the current organizational climate (culture) supportive of employees? Are there escalating labor costs that need to be addressed, and can these be managed through employee retention? How can existing HR policies and practices be changed to make the organization more responsive to a multigenerational workforce? These topics will be discussed in detail on the next slides.The previous slide highlighted organizations that are age-friendly. How does an HR professional assess his or her own organization in terms of the aging workforce and older workers? One needs to look at the organization�s strategy: What does the organization currently look like? Is it multigenerational or lopsided in either direction in terms of age? Provide a snapshot of the organization. How does the organization position itself within the community and relevant labor market? Is the current organizational climate (culture) supportive of employees? Are there escalating labor costs that need to be addressed, and can these be managed through employee retention? How can existing HR policies and practices be changed to make the organization more responsive to a multigenerational workforce? These topics will be discussed in detail on the next slides.

10. �SHRM 2010 10 Human Resource Age Audit  Most employers are unaware of the age distribution in their organization except in general estimates. Strategically, the organization should review: Age distribution by department and relative expenditures. Cross tabulations: Age by turnover. Age by accident rate. Age by absenteeism. � It is important to point out that this type of data collection should be produced on an annual basis (or semi-annually, if the organization is changing rapidly). This is the snapshot of the organization. This is not difficult to do. Most HRIS (Human Resource Information Systems) include employee age and work history (tenure). This audit is important because organizations must plan their recruiting and retention efforts. Finding replacements takes time if employees do not plan to stay past retirement age/Social Security eligibility. HR professionals also need to identify if an exceptionally high percentage of workers in one department plans to retire in the near future because this has implications for a smooth transition and knowledge transfer. Change should be plotted over time. As detailed on Slides 12-16, cost estimates can be placed on turnover, accident rates and absenteeism. Accurate accident and absenteeism data go a long way to show upper management that older workers are not the primary contributors to these costs. Turnover, in particular, should be discussed in detail in the context of retirement. This is a voluntary exit from the organization and can be controlled to some extent.It is important to point out that this type of data collection should be produced on an annual basis (or semi-annually, if the organization is changing rapidly). This is the snapshot of the organization. This is not difficult to do. Most HRIS (Human Resource Information Systems) include employee age and work history (tenure). This audit is important because organizations must plan their recruiting and retention efforts. Finding replacements takes time if employees do not plan to stay past retirement age/Social Security eligibility. HR professionals also need to identify if an exceptionally high percentage of workers in one department plans to retire in the near future because this has implications for a smooth transition and knowledge transfer. Change should be plotted over time. As detailed on Slides 12-16, cost estimates can be placed on turnover, accident rates and absenteeism. Accurate accident and absenteeism data go a long way to show upper management that older workers are not the primary contributors to these costs. Turnover, in particular, should be discussed in detail in the context of retirement. This is a voluntary exit from the organization and can be controlled to some extent.

11. �SHRM 2010 11 Organization Culture: Mission, Vision and Diversity An organization�s culture is a set of shared assumptions, values and norms that identifies what that organization considers important and how employees and managers should behave (Becker, 1982; Schein, 1985). Assessing the organization by the numbers and cost data is not sufficient. It is important to assess the organization�s culture or climate. Are employees treated with respect? Are co-worker relations valued? Culture reflects and shapes personal work values, ethics, attitudes, assumptions and expectations (Tice and Beyer, 1993). While mission and vision statements are written documents, they tend to reflect or create the organization�s culture. Where are the employees in the organization�s mission statement? Are they valued, or is the focus on the product or service delivered? Is diversity--including age--embraced in the organization�s vision statement? HR must work with top-level managers to ensure that the organization embraces aging (and all diversity) and that this is reflected in the organization�s strategy. Does the organization reinforce retirement, or continue to value aging employees with new opportunities and recognition? These are examples of areas where HR can work with top managers to integrate or interpret how employees fit with the organization�s strategy. One way to advance any organization is to take a close look at costs. The following slides review the measurement of human resource costs with respect to turnover, accidents and absenteeism. Assessing the organization by the numbers and cost data is not sufficient. It is important to assess the organization�s culture or climate. Are employees treated with respect? Are co-worker relations valued? Culture reflects and shapes personal work values, ethics, attitudes, assumptions and expectations (Tice and Beyer, 1993). While mission and vision statements are written documents, they tend to reflect or create the organization�s culture. Where are the employees in the organization�s mission statement? Are they valued, or is the focus on the product or service delivered? Is diversity--including age--embraced in the organization�s vision statement? HR must work with top-level managers to ensure that the organization embraces aging (and all diversity) and that this is reflected in the organization�s strategy. Does the organization reinforce retirement, or continue to value aging employees with new opportunities and recognition? These are examples of areas where HR can work with top managers to integrate or interpret how employees fit with the organization�s strategy. One way to advance any organization is to take a close look at costs. The following slides review the measurement of human resource costs with respect to turnover, accidents and absenteeism.

12. �SHRM 2010 12 Bottom Line: Replacement Cost Assessment Projected costs by department can be estimated based on expected turnover/organization exit. Examine the "green money," or actual costs of turnover, and the "blue money," or indirect (softer) costs of turnover (Alrichs, 2003). Replacing older workers who leave the organization must include direct and indirect costs. After conducting an audit of the organization�s human resources and reviewing the role of employees in the organization�s mission and vision, it is important to make the business case by focusing on cost issues related to the aging workforce. In particular, the audit can be expanded to include projected costs incurred by pending retirements. Actual turnover costs are more apparent than the indirect costs, but both should be assessed to get a true measure of the effect of turnover on the organization. The next slides detail these costs. Should the aging worker be retained? As always, performance is the first and primary consideration. An HR manager should not retain a poor performing worker simply because it is cheaper to do so, regardless of age! Assuming the older worker is a valuable employee, HR professionals should document the cost effectiveness of retention efforts. Turnover of good, experienced employees has direct and indirect costs as illustrated in the next five slides.After conducting an audit of the organization�s human resources and reviewing the role of employees in the organization�s mission and vision, it is important to make the business case by focusing on cost issues related to the aging workforce. In particular, the audit can be expanded to include projected costs incurred by pending retirements. Actual turnover costs are more apparent than the indirect costs, but both should be assessed to get a true measure of the effect of turnover on the organization. The next slides detail these costs. Should the aging worker be retained? As always, performance is the first and primary consideration. An HR manager should not retain a poor performing worker simply because it is cheaper to do so, regardless of age! Assuming the older worker is a valuable employee, HR professionals should document the cost effectiveness of retention efforts. Turnover of good, experienced employees has direct and indirect costs as illustrated in the next five slides.

13. �SHRM 2010 13 Actual and Soft Turnover Costs Notice Period + Vacancy Period + Hiring and Orientation Period + Hidden _____________________________ Total Replacement Cost This slide breaks down the major subcategories covered in subsequent slides.This slide breaks down the major subcategories covered in subsequent slides.

14. �SHRM 2010 14 Turnover Costs: Notice Period Green money (actual) costs 1. Last paycheck, accrued vacation, separation pay. 2. Increased unemployment tax. 3. Continued benefits. Blue money costs (appropriate salary/hour x time spent on each activity) 1. Administrative costs to process the separation: process benefits; contact unemployment office, payroll and IS departments; schedule exit interview; etc. 2. Lower productivity of employee, peers, supervisor, subordinates. 3. Exit interview, transition meetings. Discussion Before showing this slide, ask students to identify the items listed under each type of cost. This can also be done for the next three slides. Notice Period Green money (actual) costs: 1. Last paycheck, accrued vacation, separation pay. 2. Increased unemployment tax. 3. Continued benefits. Blue money costs (appropriate salary/hour x time spent on each activity):� 1. Administrative costs to process the separation: process benefits; contact unemployment office, payroll and IS departments; schedule exit interview; etc. 2. Lower productivity of employee, peers, supervisor, subordinates. 3. Exit interview, transition meetings. Discussion Before showing this slide, ask students to identify the items listed under each type of cost. This can also be done for the next three slides. Notice Period Green money (actual) costs: 1. Last paycheck, accrued vacation, separation pay. 2. Increased unemployment tax. 3. Continued benefits. Blue money costs (appropriate salary/hour x time spent on each activity):� 1. Administrative costs to process the separation: process benefits; contact unemployment office, payroll and IS departments; schedule exit interview; etc. 2. Lower productivity of employee, peers, supervisor, subordinates. 3. Exit interview, transition meetings.

15. �SHRM 2010 15 Turnover Costs: Vacancy Period Green money costs 1. Advertising and recruiter fees. 2. Interview expenses (meals, mileage or other). 3. Printing costs for marketing materials. 4. Assessments. 5. Criminal, reference and credit checks, etc. 6. Medical exams and drug tests. 7. Temporary/contract employee costs. 8. Overtime costs. 9. Relocation expenses and salary.

16. Turnover Costs: Vacancy Period Blue money costs 1. Lost productivity of peers, supervisor, subordinates. 2. Advertising creation and placement. 3. Recruiter selection. 4. Administrative costs such as ordering forms and copies of annual reports, scheduling and scoring assessments, coordinating with hiring manager and others, etc. 5. Resume screening. 6. Interviews: first, second, third. �SHRM 2010 16

17. �SHRM 2010 17 Turnover Costs: Hiring and Orientation Green money costs 1. Orientation materials (handbook, video, handouts, etc.). 2. Formal training programs (materials, course fees). 3. Informal one-on-one training (materials, if any). Blue money costs 1. Orientation participants� salaries. 2. Lost productivity of peers, supervisor, subordinates. 3. Administrative costs such as orientation setup, ordering materials, etc. 4. Informal training and one-on-ones.

18. �SHRM 2010 18 Turnover Costs: Hidden Costs 1. Missed deadlines and shipments. 2. Loss of organizational knowledge. 3. Lower morale due to overwork. 4. Learning curve. 5. Client issues due to turnover. 6. Loss of client relationships. 7. Disrupted department operations. 8. Chain reaction turnover. �

19. �SHRM 2010 19 HR-Specific Review and Strategies Staffing strategies Reduction-in-force (RIFs). Retention. Recruitment. To be discussed in Module 5: Training and development. Organizational learning and knowledge transfer. Continuous training for all employees. Stem brain-drain. Mentoring (non-age specific). Stimulating creativity. Career development (reinventing careers). This is an overview slide that reviews HR costs and suggests that HR practices be examined in terms of : Staffing. Training and development. Organizational learning and knowledge transfer. Career development and transition assistance. Turnover costs were examined on the previous slides, but this is only one component of HR efforts. Aging workforce and older worker issues can and will influence all HR activities. This is an overview slide that reviews HR costs and suggests that HR practices be examined in terms of : Staffing. Training and development. Organizational learning and knowledge transfer. Career development and transition assistance. Turnover costs were examined on the previous slides, but this is only one component of HR efforts. Aging workforce and older worker issues can and will influence all HR activities.

20. �SHRM 2010 20 Staffing: RIFs Recession and downsizing: Age profile implications? Are older workers disproportionately affected? Is layoff pattern legally defensible? What is the effect on the organization�s culture? Do older workers leave with valuable tacit knowledge? Are there knowledge transfer programs in place? Can older workers be kept active through consulting relationships? This slide reviews the types of age-related questions an employer should ask when going through a RIF.This slide reviews the types of age-related questions an employer should ask when going through a RIF.

21. �SHRM 2010 21 Staffing: Retention Tools Supportive organizational culture. Flexible work arrangements: Flextime. Reduced time (part time, part year). Flexible leave (to help meet care-giving obligations). Flex-careers (leaves, sabbaticals, rehearsal retirement). Flex-place (telecommuting, snow-bird programs). To retain productive older workers, it is important to review HR policies and practices that this cohort has reported in surveys as being important in their decision to stay with their current employer. Is there a supportive culture? Are there friendly, helpful co-workers? Is there respect for all employees throughout the organization? What is the general work environment? Older workers have repeatedly indicated that they want to work, but they want to work part time. What is the organization doing to create flexible work arrangements? (Some of these approaches will be highlighted in the top organizations recognized by AARP.)To retain productive older workers, it is important to review HR policies and practices that this cohort has reported in surveys as being important in their decision to stay with their current employer. Is there a supportive culture? Are there friendly, helpful co-workers? Is there respect for all employees throughout the organization? What is the general work environment? Older workers have repeatedly indicated that they want to work, but they want to work part time. What is the organization doing to create flexible work arrangements? (Some of these approaches will be highlighted in the top organizations recognized by AARP.)

22. �SHRM 2010 22 Retention Tools Continued Challenging work. Career transitions. Prorated health benefits. Older workers say the three issues listed on this slide are important in their decision to keep working. Ask students to discuss in more detail how this can be done. Challenging work includes: Job enrichment. Job rotation. New skill training. Creation of �champion� roles in specialty areas so the worker is known as the expert in that area, and then ensuring the �champions� have the appropriate training. Career transitions: Are older workers interested in moving into another role, position or department within the organization? What training is needed to facilitate this move? Is the organization proactive in helping older workers move into other careers? This may be with a supplier, a nonprofit or the government. IBM makes the business case that this is good business for them! Prorated health benefits: Examine how these can be structured to help older workers. Older workers say the three issues listed on this slide are important in their decision to keep working. Ask students to discuss in more detail how this can be done. Challenging work includes: Job enrichment. Job rotation. New skill training. Creation of �champion� roles in specialty areas so the worker is known as the expert in that area, and then ensuring the �champions� have the appropriate training. Career transitions: Are older workers interested in moving into another role, position or department within the organization? What training is needed to facilitate this move? Is the organization proactive in helping older workers move into other careers? This may be with a supplier, a nonprofit or the government. IBM makes the business case that this is good business for them! Prorated health benefits: Examine how these can be structured to help older workers.

23. �SHRM 2010 23 Recruiting Older Workers How does an employer establish hiring criteria? Is a detailed job description used as a yardstick to measure job candidates, or is it a �gut feeling�? Do recruiting efforts include sources aimed at more experienced workers? Do sources include college campuses and professional associations? Are interviewers trained to avoid age bias? Are multiple interviewers used to avoid age bias? Recruitment is the second topic under staffing, and the next three slides discuss recruiting from the older worker�s perspective compared with how it has been done traditionally. The assumption is made in this portion of the module that students are familiar with basic HR practices. If not, the instructor needs to assign a supplementary text that covers the basics. The primary reason to review these issues is to get students to see that recruitment and other HR practices must be reassessed and broadened in light of changing demographics. Recruitment is the second topic under staffing, and the next three slides discuss recruiting from the older worker�s perspective compared with how it has been done traditionally. The assumption is made in this portion of the module that students are familiar with basic HR practices. If not, the instructor needs to assign a supplementary text that covers the basics. The primary reason to review these issues is to get students to see that recruitment and other HR practices must be reassessed and broadened in light of changing demographics.

24. �SHRM 2010 24 Recruiting Sources Do recruiting efforts include sources aimed at more experienced workers? Are experienced workers asked to refer friends? Do sources include college campuses and professional associations? Are non-traditional sources tapped? Churches. Golf courses. Alumni associations. Ask students where they would find retirees or older individuals who left the organization within the last five years. What do they see as barriers to recruiting older workers? Location of job postings? Appeal of job notices? External perceptions of the organization? Other? (Non-overlapping networks; current employees not connected with retirees; type of work, hours of employment, etc.) Ask students where they would find retirees or older individuals who left the organization within the last five years. What do they see as barriers to recruiting older workers? Location of job postings? Appeal of job notices? External perceptions of the organization? Other? (Non-overlapping networks; current employees not connected with retirees; type of work, hours of employment, etc.)

25. �SHRM 2010 25 Selection: Screening and Interviewing Are gatekeepers (receptionists, assistants, recruiters) trained to treat applicants equally? Are there issues with the application form? Readability: 12 pt. type or larger. Adequate space for recording experience. Are interviewers trained to avoid age bias? Are multiple interviewers used to avoid age bias? Education versus experience (tradeoffs?) This is a continuation of the previous slide(s).This is a continuation of the previous slide(s).

26. �SHRM 2010 26 Employer Perspective Part 1 Summary We have covered the following topics in this module: Labor supply and demand pressures. The �business case� for recruiting and retaining older workers. Models of best practices. Organizational strategy and valuing employees. Implications for HR policies and practices: HR audits. Cost assessment of turnover. Staffing: RIFs, retention and recruiting tactics. This is the summary slide for the module. Ask students to report what they have received lately from SmartBrief. This e-mail is part of their reading assignment. Assignment Remind students that their industry (completed for this module) and best practices research (described on Slide 2 of this module) will be discussed in the next module.This is the summary slide for the module. Ask students to report what they have received lately from SmartBrief. This e-mail is part of their reading assignment. Assignment Remind students that their industry (completed for this module) and best practices research (described on Slide 2 of this module) will be discussed in the next module.