"An Aging Workforce: Shifting from Problem to Potential" - breakout session at the MN Career Development Association 2012 Spring Conference - with Kate Schaefers

1. An Aging Workforce:
Shifting from
Problem to Potential
Kate Schaefers
Tracy Godfrey
April, 2012
Schaefers & Godfrey 1

2. Session Topics
• Demographic shifts in the workplace
• New models for work and retirement
• Importance of work to individual &
society
• Career paths/runways
• Possibilities for what’s ahead in this new
environment
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3. What Do We Mean By
“Retired”
….what words
and images
come to mind?
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4. What does 60 look like?
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5. Population
“A Change Is Gonna Come” Workforce
Work
Bond
Aging Population
• Boomers are approaching retirement and people
are living longer
Aging Workforce
• The workforce is older & people are working longer
Work Itself Is Changing
• More Knowledge Economy – vs. Manufacturing
Loosening the Employer/Employee Bond
• From lifetime employment to “free agents”
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6. Workforce Trends, 1990 - 2020
The percent over age 55 more than doubles;
100.0%
The percent age 16 – 24 declines
11.9% 13.1%
90.0% 19.5%
24.6%
80.0%
70.0%
60.0%
70.2% 71.1% 55 and older
50.0%
66.9% 25 to 54
62.9%
40.0%
16 to 24
30.0%
20.0%
10.0%
17.9% 15.8% 13.6% 12.5%
0.0%
1990 2000 2010 2020
Source: US Bureau of Labor Statistics
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7. Population
Aging Workforce Workforce
Work
• Workers over 50 are a growing portion of the
workforce (now more than 30%)
• Labor force participation of those 55+ is increasing
• More people are working past age 65 (now 18%)
• In the U.S. from 2006 to 2016, workers 65+ will be
the fastest growing age group (+84%); ages 55 -64
is next(+37%); workers 16 – 24 will decrease by 7%;
Minnesota trends show this same pattern.
• If trends continue, adults age 55 & up will be
25% of the workforce in 2019.
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8. “Retirement” – New Realities
• One in five “retired” are
working, some full-time
• No longer a stopping point
• People WANT and often
NEED to work
Most people expect to work in retirement –
but probably in a different way
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9. History of Retirement
Von Bismarck – Germany - 1883
Social Security Act of 1935
Sun City - 1960
1900’s 1930’s 1960’s TODAY
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10. What are the Rewards Of Working?
Love and work
are the
cornerstones of
our humanness.
~ Sigmund Freud
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11. Working – More than Financial
11
• Promotions less important
• Want Work that:
– Is Aligned with Talents
& Values
– Continued Learning
– Flexibility and
Autonomy
Source: Erdogen et all (2011). Industrial & Organizational Psychology
Schaefers & Godfrey April, 2012

12. Keys to “Ideal Job”
1. Personal & Professional Development
– Use talents & skills, give back, learn new things
2. Workplace Culture
– Friendly environment, relationships, respect
3. Flexibility
– Control - Flexibility on how to do work
– Options for part-time, time off, seasonal work
4. Finances
– Fair pay; Benefits; Pension; 401(k)
AARP Survey of Workers over 50
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13. A “New Stage” Has Emerged
1900
Now
20 - 40 40 - 55 55 - 70 70 – 85+
Longer Lives, More Years in Middle
• On average, people live 18 years beyond 65
• Frail elder stage pushed out a decade or more
• People age 60-75 remain active, healthy
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14. “New Stage” Models include Work
• Engaged Aging
• Giving Back
• Impact & Meaning
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15. An Aging Population - Crisis?
• Finances - Lack of Financial Security
for Boomers
• Labor Shortages – Brain Drain
• Burden - on healthcare systems
• Drain- Social Security, Medicare, other
Social Service programs
• Strain - families & society caregiving
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16. Aging Workforce – Opportunity?
Person – improved finances, health, well-
being when engaged
Employer – alleviate labor shortages,
retain talent, transfer of knowledge
Government – extend life of social
security, medicare, lower health care costs
Society– improved health, communities,
utilization of labor, productivity, economic
growth
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17. Encore Career Movement
Purpose Driven Work in
the Second Half of Life.
• Combines Income, Meaningful
Work, and Social Impact
• Employment in social service,
education, government, health,
environment
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18. The
Numbers
• Estimated 9 million people have already
moved from midlife careers to “Encore”
careers.
• This represents 9% of the 44-70 age
population in the U.S.
• Additional 31 million people were interested
in Encore Careers.
Source: Encore Career Choices 2011
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19. Projected Labor Market Growth in
Social Sector by 2018
• Health Care & Social
Assistance (3.9 million)
• Educational Services
(806,000)
• Nonprofit Community &
Religious Organizations
(379,000)
• Performing Arts (9,000)
• Museums (29,000)
• Government (1.6 million)
http://www.encore.org/files/research/JobsBluestonePaper3-5-10.pdf
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20. Are Organizations Ready?
• Organizations have not focused
adequately on:
– Analysis of workforce demographics
– Planning for aging workforce
– Training for generational diversity
– Developing strategy for recruitment
& retention
National Study of Business Strategy and Workforce
Development (2007)
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21. Career Ladder vs. Career Lattice
Defined Steps – Moving Up Multidirectional – In & out of fields
Another turning point, a fork stuck in the road. Time grabs you by the wrist, directs you where to go.
So make the best of this test, and don't ask why. It's not a question, but a lesson learned in time.
It's something unpredictable, but in the end it's right. I hope you had the time of your life.
- Green Day
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22. Rethinking Ways To Work
• Career continuity – Keep working where you are
• Recombinant Career – combine skills to use in a
new way, in a new setting
• Career changer – back to school, training or
apprenticeship or internship to move into a new field
• “Encore” career – work that combines meaning,
social impact, and a paycheck
• Entrepreneurial – start a new business or nonprofit
• Volunteer or community roles – unpaid but
meaningful work
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23. Workers: Pathways to New Work
• Formal Education
– Return to school
– Obtain a credential
• Informal, On-the-job Learning
– Stretch assignments to strengthen skill sets
– Crafting Experiments (Ibarra’s concept of Working Identity)
– Volunteering, civic engagement
– Explore an internship
• Alternative Work Engagements
– Project assignments
– Temporary, flexible work arrangements
• Rebranding
– Understand and build on transferrable skills
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24. Need More ON-RAMPS to
Career Transition
• Targeted Training
Programs
• Flexibility in
Structure of Work
• Creative HR
Approaches
• Experiential Learning
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25. Second Half of Life
A Coaching Process
• Clarify Identity
• Develop Vision
• Create Plan
• Take Action
© Schaefers 2012
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26. Clarify Identity
• Who am I at this point
in my life?
• What are my TALENTS?
• What are my
INTERESTS?
• What kind of work
INSPIRES and
ENGAGES me?
© Schaefers 2012
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27. Develop Vision
• What life do I want to
live at this point?
• What are my
PRIORITIES?
• What are my NEEDS?
• What kind of work “The Japanese Bridge”
IS POSSIBLE for me? By Claude Monet
© Schaefers 2012
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28. Create Plan
• How do I get there?
• What are my GOALS?
• What PATHS will get
me there?
• What EXPERIMENTS
might help?
• What do I need to GET
STARTED?
© Schaefers 2012
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29. Take Action
• How do I make change
happen?
• What RESOURCES do I
need?
• What SUPPORTS can I
develop?
• Where are BARRIERS?
• How can I MAINTAIN
momentum? © Schaefers 2012
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30. Hurdles for Older Workers
• Marginalized
• Perception of being “overqualified”
• Passed over for training & assignments
• Challenges in reemployment
• Age discrimination, ageism
• Unintended consequences of policies
• “Boomer Backlash” – tensions and
misperceptions among generations
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31. Advice for Employers to
Attract & Retain Older Workers
• Structure Work for Meaning
• Build Supportive Cultures
• Focus on Nimble Workforce
(“talent on demand”)
• Embrace Career Lattices,
Redefined Roles
• Shape Rewards for the Work
that is Done
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32. About Us
Tracy Godfrey Kate Schaefers
is a seasoned HR Ph.D. LP, is owner of
professional with more Encore Life Planning.
than 25 years She is a licensed
experience, leading psychologist & certified
teams & consulting on retirement coach. She
recruiting and selection offers coaching and
for major Twin Cities corporations. consultation to individuals and
Tracy holds an MBA and Senior organizations on issues related to
Professional, Human Resources work in the second half of life. She is
(SPHR) certification. He is a member an adjunct faculty member at the
of the Leadership Group of the Vital University of St. Thomas Dept. of
Aging Network (VAN) Organization Learning and
Development and Graduate School
of Professional Psychology
tgodfrey4630@msn.com encorelife@earthlink.net
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