Leadership: Laying the Foundation for a Better Workforce

1. Leadership: Laying the Foundation for a Better Workforce David E. Keller, Assistant City Manager/CFO City of Weston, Florida FGFOA Annual Conference

2. Agenda This session will cover: • Issues for governments: Demographic data/the “generation gap” • What is a “Leader”? • Developing the next generation and identifying “rising stars”

3. Issues for governments: Demographic Data/the Generation Gap

4. Baby Boomers Baby Boomers are generally defined as that group of persons born between 1946 and 1964. Approximately 76 million people were born during that period.

5. Baby Boomers In 1964, boomers represented about 40% of the US population.

6. Baby Boomers Birth Rate per 1,000: 1909 - 2009

7. Baby Boomers Births per year 1930 - 1990

8. Boomer Status As of January, 2011, an average of 10,000 Boomers will turn 65, every day.

9. Boomer Status For the next 19 years

10. Boomer Status That is roughly 69.4 million people turning 65 during the 19 year period.

11. Long Term Financial Planning Boomers represent 27% of the population today. By 2030, boomers will be between the ages of 66 and 84, and make up about 20% of the population. Over 50% of boomers live in only 9 states, of which Florida is one.

12. Boomer Status The Census Bureau reports 3.12 million persons working in public administration.

13. Issues for government workforce The following chart shows the government sector to have a significantly older workforce. In particular, where private sector workforce had only 48.0% older than 40 in 2006, local government had 63.5% older than 40.

14. Characteristics of Workforce

15. Issues for government workforce On average, public sector employees are five to seven years older than the private sector counterparts.

16. Issues for government workforce The following chart shows the government sector to have a significantly more educated workforce. In particular, where private sector workforce had 45.9% with no more than a high school degree, local government had only 27.0% who had not advanced further in education.

17. Issues for government workforce Furthermore, 47.0% of local government employees have a bachelor’s degree or higher. Only 24.9% of the private sector can claim that accomplishment.

18. Characteristics of Workforce

19. Issues for government workforce The chart shows that better educated federal, state and local government sector employees will be retiring, and equally educated replacements are not available in the private sector pool.

20. Issues for government workforce As the economy has transitioned from manufacturing to service oriented, the nature of work requires different skills. “Knowledge” workers require specialized education, training and skills. Examples are educators, health care workers, legal professionals, engineers and managers.

21. Issues for government workforce The following chart shows that while only 32.2% of workers in the private sector are classified as “Knowledge” workers, in local government 67.5% are so classified. There are not enough young government sector Knowledge employees to replace those who are leaving. And the private sector does not have them at any age.

22. Issues for government workforce Also, more public sector knowledge workers are older. In the private sector, approximately 25% are over 55 years of age. In the public sector, it is over 33%.

23. Characteristics of Workforce

24. Issues for government workforce The projected slowing in the growth of the labor force, coupled with the loss of skills and talent as boomers retire, means the public sector must develop an effective ingress strategy. The strategy should: • Attract new workers • Retain younger workers • Energize and prolong careers

25. Issues for government workforce About 60% of public sector workforce is over 40. More than half will retire within ten years. It will be critical to reach out to minorities, the groups that will account for the greatest growth. Currently, Hispanics account for 13.2% of the workforce, but more than 20% of population under 15 years of age.

26. Issues for government workforce The 90,740 state and local governments across the country had 16.6 million full-time equivalent employees in 2010. Of that, 12.2 million are in local government. The 2010 amount is 203,321 lower than the 2009 total.

27. Characteristics of Workforce

28. Issues for government workforce Apparently morale for senior level staff is tanking under the strain of having so much more to do with so much less. Between May 2010 and May 2011, 25% of retirement-eligible state and local government employees moved up their retirement dates, a rate more than double the previous year.

29. Issues for government workforce A report by Mary Willett of Willett Consulting reported that 77 million Americans will reach age 55 between 2007 and 2020.

30. Issues for government workforce States and Local governments will feel the impact of aging workforce before private sector employers. The public sector has a higher percentage of boomers than the private sector, and many public sector employees, particularly police and fire personnel, retire earlier.

31. Issues for government workforce In 2000, the Department of Labor listed the employment categories that would be hardest hit by boomer retirements as: • Registered nurses • Administrators in education • Public administration officials • Police and fire personnel • Lawyers • Social workers • Plumbers, pipe fitters and steamfitters

32. Issues for government workforce Local governments have minimal bench strength.

33. Issues for government workforce For decades, surveys showed the vast majority of college students viewed government work as full of inflexible red tape, a dead end, inefficient, and bureaucratic.

34. Some good news A 2010 Gallup poll found that 37% of Americans aged 18 to 30 expressed affirmative interest in government jobs. This group reports that doing good for society is as important to them as doing well financially.

35. Gen X, Y, Millennials Younger workers want more than just a paycheck. They want to: • Be part of innovative, creative, and challenging working environments; • Quickly assume leadership roles; • Collaborate as partners with equally bright peers and mentors These are all traits that our younger workers prize highly.

37. Hey old guys!

38. What is a Leader?

39. Leaders vs Managers One good way to find out the characteristics of a leader is to compare and contrast those of a leader with those of a manager. Both are essential to public service and are responsible for the health of the organizations they work for.

40. Long Term Financial Planning

41. Managers Managers have subordinates. Their authority is vested in them by the organization. Management style is transactional. Managers have a work focus. Managers seek comfort.

42. Leaders Leaders have followers. Their authority comes from their charisma and their ability to inspire people to follow them. Leadership style is transformational. Managers have a people focus. Managers are more comfortable with risk.

43. Leaders vs. Managers

44. Leaders and Managers Webster dictionary defines the two as follows. Lead: to guide on a way especially by going in advance; to direct on a course or in a direction. Manage: to handle or direct with a degree of skill; to make and keep compliant.

45. Leaders and Managers: Core differences Leadership is Synthesis; Management is Analysis.

46. Leaders and Managers: Core differences Leadership has long term impact, management has shorter term goals.

47. Leaders and Managers: Core differences Leadership is an intention of climbing to some next level, management is the process of efficiently executing the plan.

48. Leaders and Managers: Core differences With all of those differences, it is important to note that most leaders are also managers, and many managers are also leaders. Both leadership and management exist at every level of management

49. Leaders and Managers: Core differences

50. Leaders and Managers: Core differences Leaders optimize the upside; Managers minimize the downside.