Trends & Challenges in Aging Workforce Strategies

1. Trends & ChallengesinAging Workforce Strategies Focus: Workforce Transitions

2. AGENDA Word on the Street. Current Actions. Challenges.

3. THE VALUE of the MATURE WORKER Invoice One chalk mark -- $ 1Knowing where to put it -- $49,999 Total $50,000

4. 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 …

5. 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

6. 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

7. 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

8. 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

9. 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

10. EXAMPLE: Utility Industry Discussion MGALLC Scorecard 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. 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. *Utility Trends 2008: An Ongoing View

11. 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 need Number of Employees (tens of thousands) Essential new hires that were not added Employment after attrition Time 2015 2007 2010 This aging utility workforce problem will become increasingly serious as today’s utility workers approach retirement together. *Utility Trends 2008: An Ongoing View

12. CURRENT ACTIONS So what are organizations doing now to address the mass exodus of Baby Boomers in the not too distant future?

13. CURRENT ACTIONS Not So Much… • Flexible Work Arrangements • PT Schedules • Telecommuting • Restructured jobs • Mentoring (Private Sector) • Consulting • Retention Strategies • Assessments to ID Critical Skills & Relationships Hearing About… Succession Planning Mentoring (Public Sector) Leadership Development Building Pipelines Knowledge Management Phased Retirement Contracting

14. 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

15. OPPORTUNITIES "We are continuously faced by great opportunities brilliantly disguised as insoluble problems." Lee Iacoca

16. OPPORTUNITIES We shouldn’t talk about the challenges without also discussing the opportunities. Your Turn!