Workforce Planning: Aging and Employment Module 5: Managing Productivity

1. Workforce Planning: Aging and EmploymentModule 5: Managing Productivity Barbara McIntosh, Ph.D., SPHR 2010

2. Module 5: Overview ©SHRM 2010 • Ability and health. • Managing multi-generational teams. • Productivity: Training, retraining and organizational learning.

3. Ability and Physical Health ©SHRM 2010 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.

4. Self-Reported Health Status ©SHRM 2010 • 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.

5. Mental Health Status and Work ©SHRM 2010 • 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.

6. Cost Concerns ©SHRM 2010 • 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.

7. Multigenerational Workforce: Necessity, Not Nicety ©SHRM 2010 • 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.

8. Multigenerational Workforces Are Driven By: ©SHRM 2010 Labor shortages (not surplus). Knowledge base (not physical labor). Team dynamics (not hierarchy). Technology. Globalization.

9. What Do We Know About Multiple-Generation Interactions? ©SHRM 2010 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.

10. Cohort Characteristics: All Valued, All Needed ©SHRM 2010 • 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.

11. Cohort Characteristics: All Valued, All Needed • 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. . ©SHRM 2010

12. Messages That Shaped Them ©SHRM 2010 • 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.

13. Messages That Shaped Them ©SHRM 2010 • 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.

14. Stereotyping ©SHRM 2010 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.

15. Social Identity Theory ©SHRM 2010 • 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.

16. Management Implications ©SHRM 2010 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.

17. Generational Awareness ©SHRM 2010 Audit. Training: Develop a value proposition for each generation. Review policies and practices in terms of preferences. Review makeup of the board of directors.

18. Six Principles for Mixing Generations (C. Raines) ©SHRM 2010 Initiate conversations about generations. Ask people about their needs and preferences. Offer options. Personalize your style. Build on strengths. Pursue different perspectives.

19. Generations-Friendly? ©SHRM 2010 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.

20. Generations-Friendly? ©SHRM 2010 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.

21. Generations-Friendly? ©SHRM 2010 • 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.

22. Attitudes→Productivity→Training ©SHRM 2010 • Is there cooperation across generations? • Are individuals--regardless of age--held accountable (meaningful performance appraisals)? • Do stereotypes unintentionally create barriers for older workers’ training and development? • Do older workers fail to take advantage of training and development opportunities because of social cognition and social identity?

23. Productivity: Training and Development ©SHRM 2010 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.

24. Motivation Drives Training ©SHRM 2010

25. Purpose and Outcome of Training ©SHRM 2010 • 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?

26. Employers’ Perception of Selected Attributes by Career Stage ©SHRM 2010

27. Learning/Training Differences ©SHRM 2010 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).

28. Learning/Training Differences ©SHRM 2010 • 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.

29. Productivity: Training and Retraining ©SHRM 2010 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.

30. Employer Investment Considerations ©SHRM 2010 • 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.

31. Managing Productivity Summary ©SHRM 2010 This module has addressed three areas for HR attention: • Ability and health. • Managing a multi-generational workforce. • Productivity: • Training. • Retraining. • Investment considerations. Each area offers multiple opportunities for HR to address older worker issues.