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Shrm aarp 2012 strategic wp-final
1.
SHRM Survey Findings: SHRM-AARP
Strategic Workforce Planning April 9, 2012
2.
Definitions Strategic workforce
planning assessment: Evaluating an organization’s current and future critical talent needs using workforce modeling and scenario planning to identify potential skills gaps and talent shortages. Older workers: Employees at an organization that are age 50 or older. Younger workers: Employees at an organization that are age 31 and younger. SHRM-AARP Strategic Workforce Planning ©SHRM 2012 2
3.
Key Findings Have
organizations conducted strategic workforce planning assessments to evaluate their current and future critical talent needs? Two-fifths of organizations (40%) have conducted strategic workforce planning assessments to identify their future workforce needs for the next 5 years. About one-third of organizations have identified their potential skills gaps for the next 5 years (36%). Twenty-nine percent of organizations have analyzed the impact of workers age 50 and over leaving their organizations. Are organizations preparing for a potential shortage of talent when older workers begin to retire in greater numbers and leave the workforce? Although many organizations are at the initial stages of the preparation process, there has been a slight increase in awareness of a potential shortage of younger workers with the requisite skills needed to replace older workers who are retiring. More than one-quarter (27%) of organizations indicated they are becoming aware of the issue, an increase of nine percentage points from 2010 (18%). Thirty-nine percent of organizations are beginning to examine internal policies and management practices to address this issue (e.g., succession planning, phased retirement, etc.), showing no difference from 2010. Additionally, roughly one-fifth of organizations (18%) indicated that no changes were necessary after their evaluation, a decrease of 12 percentage points from 2010 (30%). How much of an issue are the potential losses of talent for organizations and industries as older workers retire or leave their organizations over the next decade? Approximately one-half (46%) of organizations believe that potential loss of talent over the next decade is a potential problem for their organization while 27% indicated that it is not a concern. As older workers exit the workforce over the next decade, 39% of organizations believe that this will cause potential problems for their industry; however, approximately one- quarter (24%) do not foresee problems for their industry. SHRM-AARP Strategic Workforce Planning ©SHRM 2012 3
4.
Key Findings Which
basic and applied skills do older workers have an advantage in compared with younger workers? Approximately one-half of organizations (51%) indicated that writing in English (grammar, spelling, etc.) was the top basic skill observed among older workers that is not readily seen among younger workers. Fifty-two percent of organizations reported professionalism/work ethic as the top applied skill that younger workers are less likely to exhibit. Which steps are organizations taking to retain and recruit older workers in order to prepare for the potential skill gaps that may occur as younger workers enter and older workers exit the workforce? Nearly one-half of organizations (45%) have increased training and cross-training efforts. Roughly one-third (38%) of organizations have also developed succession plans and/or hired retired employees as consultants or temporary workers (30%). Organizations are also offering flexible work arrangements (27%) and offering part-time positions to older workers (24%). SHRM-AARP Strategic Workforce Planning ©SHRM 2012 4
5.
Has your organization
conducted a strategic workforce planning assessment to…? Identify future workforce needs over the next 5 40% years? Identify potential skills gaps over the next 5 years? 36% Analyze the impact of workers age 50+ leaving 29% your organization? Note: n = 421-423. Percentages shown indicate only the respondents who answered “Yes” to this question. SHRM-AARP Strategic Workforce Planning ©SHRM 2012 5
6.
Has your organization
conducted a strategic workforce planning assessment to…? Comparisons by organization sector Publicly owned for-profit organizations are more likely than privately owned for-profit organizations to have conducted a strategic workforce planning assessment to identify potential skills gaps over the next 5 years. Comparisons by Organization Sector Publicly owned for-profit (50%) > Privately owned for-profit (30%) Comparisons by organization staff size Organizations with 25,000 or more employees are more likely than organizations with 1 to 2,499 employees to have conducted a strategic workforce planning assessment to identify future workforce needs over the next 5 years. Comparisons by Organization Staff Size 1 to 99 employees (25%) 25,000 or more employees (66%) > 100 to 499 employees (36%) 500 to 2,499 employees (36%) Note: Only statistically significant differences are shown. SHRM-AARP Strategic Workforce Planning ©SHRM 2012 6
7.
Has your organization
conducted a strategic workforce planning assessment to…? Comparisons by organization staff size (continued) Organizations with 25,000 or more employees are more likely than organizations with 1 to 2,499 employees to have conducted a strategic workforce planning assessment to identify potential skills gaps over the next 5 years. Comparisons by Organization Staff Size 1 to 99 employees (23%) 25,000 or more employees (63%) > 100 to 499 employees (33%) 500 to 2,499 employees (33%) Organizations with 2,500 or more employees are more likely than organizations with 1 to 499 employees to have conducted a strategic workforce planning assessment to analyze the impact of older workers leaving the organization. Comparisons by Organization Staff Size 2,500 to 24,999 employees (47%) 1 to 99 employees (22%) > 25,000 or more employees (49%) 100 to 499 employees (22%) Note: Only statistically significant differences are shown. SHRM-AARP Strategic Workforce Planning ©SHRM 2012 7
8.
There may be
a shortage of younger workers with the skills and qualifications necessary to replace the older workers who are preparing to retire. Which of the following best describes your organization’s preparation for this change? Beginning to examine internal 39% policies and management practices 39% Just becoming aware of the issue 27% 18% Have examined our workforce and 18% determined that no changes in our 30% policies and practices are necessary Have proposed specific policy and 7% management practice changes 4% Have implemented specific policies 2012 (n = 326) 5% and management practices 5% 2010 (n = 337) Have agreed internally on a plan to 4% change policies and management 4% practices Note: Respondents who answered “Don’t know” were excluded from this analysis. SHRM-AARP Strategic Workforce Planning ©SHRM 2012 8
9.
Overall, how would
you describe your organization’s and industry’s potential loss of talent as a result of the possibility of the older workers retiring, or leaving the organization for other reasons, over the next decade? It is a crisis It is a problem It is a potential It is not a problem problem Organization 1% 26% 46% 27% (2012; n = 407) Organization 2% 20% 45% 33% (2010; n = 369) It is a crisis It is a problem It is a potential It is not a problem problem Industry 7% 30% 39% 24% (2012; n = 374) Industry 3% 29% 47% 21% (2010; n = 317) Note: Respondents who answered “Don’t know” were excluded from this analysis. SHRM-AARP Strategic Workforce Planning ©SHRM 2012 9
10.
In your opinion,
what is/are the greatest basic skills gap between older workers and younger workers? Basic skills for which older workers are perceived as having the Percentage advantage Writing in English (grammar, spelling, etc.) 51% Technical (computer, engineering, mechanical, etc.) 33% Mathematics (computation) 16% Reading comprehension (in English) 13% English language (spoken) 12% Government/economics 10% History/geography 6% Science 5% Foreign languages 3% Humanities/arts 1% Other 9% Note: n = 421. Respondents who answered “Don’t know” were excluded from this analysis. Respondents were asked to select their top two choices. Percentages do not equal 100% due to multiple response options. SHRM-AARP Strategic Workforce Planning ©SHRM 2012 10
11.
In your opinion,
what is/are the greatest basic skills gap between older workers and younger workers? Comparisons by organization sector Government agencies are more likely than privately owned and publicly owned for-profit organizations to believe that government/economics is the greatest basic skills gap that younger workers have when compared with older workers. Comparisons by Organization Sector Privately owned for-profit (8%) Government agencies (23%) > Publicly owned for-profit (5%) Note: Only statistically significant differences are shown. SHRM-AARP Strategic Workforce Planning ©SHRM 2012 11
12.
In your opinion,
what is/are the greatest applied skills gap between older workers and younger workers? Applied skills for which older workers are perceived as having the Percentage advantage Professionalism/work ethic 52% Critical thinking/problem solving 27% Written communications 16% Lifelong learning/self-direction 16% Leadership 15% Oral communications 12% Ethics/social responsibility 12% Information technology application 11% Teamwork/collaboration 10% Creativity/innovation 4% Diversity 2% Other 2% Note: n = 421. Respondents who answered “Don’t know” were excluded from this analysis. Respondents were asked to select their top two choices. Percentages do not equal 100% due to multiple response options. SHRM-AARP Strategic Workforce Planning ©SHRM 2012 12
13.
Has your organization
taken any of the steps below to prepare for potential skill gaps and/or retain and recruit older workers? Yes No Increased training and cross-training efforts 45% 55% Developed succession plans 38% 62% Hired retired employees as consultants or temporary workers 30% 70% Offered flexible work arrangements (e.g., job sharing, telework, etc.) 27% 73% Offered part-time positions to older workers 24% 76% Offered retirement planning programs 23% 77% Developed processes to capture institutional memory/organizational 17% 83% knowledge from employees close to retirement Increased recruiting efforts to replace retiring employees 17% 83% Offered financial planning programs 16% 84% Offered wellness programs that are attractive to older workers 14% 86% Provided training to upgrade skills of older workers 13% 87% Encouraged older workers to work past traditional retirement age 12% 88% n = 415 SHRM-AARP Strategic Workforce Planning ©SHRM 2012 13
14.
Has your organization
taken any of the steps below to prepare for potential skill gaps and/or retain and recruit older workers? (continued) Yes No Tailored benefits offerings to encourage older workers to stay with 11% 89% organization Increased automated processes (e.g., use of robotics) 9% 91% Created new roles within your organization, specifically designed to 9% 91% bridge a skills or knowledge gap Provided opportunities for older workers to transfer to jobs with 8% 92% reduced pay and responsibilities Asked older workers for feedback via survey or other mechanism 4% 96% about what would encourage them to stay with the organization Established alternative career tracks for older workers 3% 97% Other 5% 95% n = 415 SHRM-AARP Strategic Workforce Planning ©SHRM 2012 14
15.
Has your organization
taken any of the steps below to prepare for potential skill gaps and/or retain and recruit older workers? Comparisons by organization sector Publicly owned for-profit organizations are more likely than privately owned for-profit, nonprofit and government organizations to have developed succession plans in preparation for potential skills gaps that may occur as younger workers enter and older workers exit the workforce. Comparison by Organization Sector Privately owned for-profit (37%) Publicly owned for-profit (56%) > Nonprofit (31%) Government (26%) Government agencies are more likely than publicly owned for-profit organizations to have developed processes to capture institutional memory/organizational knowledge from employees close to retirement to retain and recruit older workers in preparation for potential skills gaps that may occur as younger workers enter and older workers exit the workforce. Comparison by Organization Sector Government (32%) > Publicly owned for-profit (9%) Government agencies are more likely than publicly owned for-profit organizations to have encouraged older workers to work past traditional retirement age in preparation for potential skills gaps that may occur as younger workers enter and older workers exit the workforce. . Comparison by Organization Sector Government (26%) > Publicly owned for-profit (7%) Note: Only statistically significant differences are shown. SHRM-AARP Strategic Workforce Planning ©SHRM 2012 15
16.
Has your organization
taken any of the steps below to prepare for potential skill gaps and/or retain and recruit older workers? Comparisons by organization sector (continued) Government agencies are more likely than publicly owned for-profit or privately owned for-profit organizations to have hired retired employees as consultants or temporary workers in preparation for potential skills gaps that may occur as younger workers enter and older workers exit the workforce. . Comparisons by Organization Sector Publicly owned for-profit (24%) Government (51%) > Privately owned for-profit (22%) Note: Only statistically significant differences are shown. SHRM-AARP Strategic Workforce Planning ©SHRM 2012 16
17.
Has your organization
taken any of the steps below to prepare for potential skill gaps and/or retain and recruit older workers? Comparisons by organization staff size Organizations with 25,000 or more employees are more likely than organizations with 1 to 2,499 employees to identify future workforce needs over the next 5 years in preparation for potential skills gaps that may occur as younger workers enter and older workers exit the workforce. Comparisons by Organization Staff Size 1 to 99 employees (25%) 25,000 or more employees (66%) > 100 to 499 employees (36%) 500 to 2,499 employees (36%) Organizations with 2,500 or more employees are more likely than organizations with 1 to 499 employees to have developed succession plans in preparation for potential skills gaps that may occur as younger workers enter and older workers exit the workforce. Comparisons by Organization Staff Size 2,500 to 24,999 employees (58%) 1 to 99 employees (27%) > 25,000 or more employees (66%) 100 to 499 employees (31%) Note: Only statistically significant differences are shown. SHRM-AARP Strategic Workforce Planning ©SHRM 2012 17
18.
Has your organization
taken any of the steps below to prepare for potential skill gaps and/or retain and recruit older workers? Comparisons by organization size (continued) Organizations with 25,000 or more employees are more likely than organizations with 1 to 499 employees to have increased recruiting efforts to replace retiring employees in preparation for potential skills gaps that may occur as younger workers enter and older workers exit the workforce. Comparisons by Organization Size 1 to 99 employees (12%) 25,000 or more employees (37%) > 100 to 499 employees (14%) Organizations with 500 to 24,999 employees are more likely than organizations with 1 to 99 employees to have hired retired employees as consultants or temporary workers in preparation for potential skills gaps that may occur as younger workers enter and older workers exit the workforce. Comparisons by Organization Size 500 to 2,499 employees (38%) > 1 to 99 employees (16%) 2,500 to 24,999 employees (42%) Organizations with 500 to 2,499 employees are more likely than organizations with 1 to 99 employees to have offered financial planning programs in preparation for potential skills gaps that may occur as younger workers enter and older workers exit the workforce. Comparisons by Organization Size 500 to 2,499 employees (23%) > 1 to 99 employees (7%) Note: Only statistically significant differences are shown. SHRM-AARP Strategic Workforce Planning ©SHRM 2012 18
19.
How effective has
the step(s) your organization has taken been in preparing for potential skill gaps and/or retaining and recruiting older workers? Too soon Not at all Somewhat Very to effective effective effective evaluate Developed succession plans (n = 157) 27% 3% 52% 17% Created new roles within your organization, specifically 26% 6% 37% 31% designed to bridge a skills or knowledge gap (n = 35) Increased training and cross-training efforts (n = 179) 24% 1% 50% 26% Developed processes to capture institutional memory/organizational knowledge from employees 22% 1% 56% 21% close to retirement (n = 68) Offered wellness programs that are attractive to older 17% 5% 53% 24% workers (n = 58) Offered financial planning programs (n = 66) 17% 3% 52% 29% Increased recruiting efforts to replace retiring 15% 4% 62% 18% employees (n = 71) Offered part-time positions to older workers (n = 99) 15% 3% 38% 43% Note: Response options were only rated by respondents who indicated that their organization had taken the specified step to prepare for potential skill gaps and/or retain and recruit older workers. Percentages may not equal 100% due to rounding. SHRM-AARP Strategic Workforce Planning ©SHRM 2012 19
20.
How effective has
the step(s) your organization has taken been in preparing for potential skill gaps and/or retaining and recruiting older workers? (continued) Too soon Not at all Somewhat Very to effective effective effective evaluate Offered flexible work arrangements (e.g., job sharing, 14% 2% 50% 35% telework, etc.) (n = 111) Tailored benefits offerings to encourage older workers 11% 7% 55% 27% to stay with organization (n = 44) Increased automated processes (e.g., use of robotics) 11% 0% 63% 26% (n = 35) Provided training to upgrade skills of older workers 11% 2% 64% 23% (n = 53) Offered retirement planning programs (n = 95) 11% 7% 51% 32% Provided opportunities for older workers to transfer to 9% 9% 59% 22% jobs with reduced pay and responsibilities (n = 32) Encouraged older workers to work past traditional 8% 6% 52% 34% retirement age (n = 50) Hired retired employees as consultants or temporary 4% 4% 49% 43% workers (n = 123) Note: Response options were only rated by respondents who indicated that their organization had taken the specified step to prepare for potential skill gaps and/or retain and recruit older workers. Percentages may not equal 100% due to rounding. SHRM-AARP Strategic Workforce Planning ©SHRM 2012 20
21.
To the best
of your knowledge, what percent of employees, full-time and part- time, at your work location are age 50 or older? 1% None 1% 27% 1% to 19% 32% 44% 20% to 39% 47% 24% 40 % to 59% 17% 2012 (n = 404) 2010 (n = 363) 4% 60% or more 3% SHRM-AARP Strategic Workforce Planning ©SHRM 2012 21
22.
To the best
of your knowledge, what percent of employees, full-time and part- time, at your work location are age 50 or older? Comparisons by organization sector Privately owned for-profit organizations are more likely than government agencies to have 1% to 19% of their staff age 50 or older. Comparisons by Organization Sector Privately owned for-profit (33%) > Government (9%) Government agencies are more likely than privately owned for-profit organizations to have 40% to 59% of their staff age 50 or older. Comparisons by Organization Sector Government (40%) > Privately owned for-profit (19%) Comparisons by organization staff size Organizations with 100 to 499 employees are more likely than organizations with 2,500 to 24,999 employees to have 1% to 19% of their staff age 50 or older. Comparisons by Organization Staff Size 100 to 499 employees (34%) > 2,500 to 24,999 employees (12%) Note: Only statistically significant differences are shown. SHRM-AARP Strategic Workforce Planning ©SHRM 2012 22
23.
Demographics: Organization Industry
Percentage Manufacturing 19% Health care and social assistance 18% Professional, scientific and technical services 18% Public administration 12% Finance and insurance 10% Education services 8% Transportation and warehousing 8% Administrative and support and waste management and remediation services 6% Information, publishing industries 5% Utilities 5% Accommodation and food services 4% Construction 4% Note: n = 399. Percentages may not equal 100% due to multiple response options. SHRM-AARP Strategic Workforce Planning ©SHRM 2012 23
24.
Demographics: Organization Industry
(continued) Percentage Religious, grant-making, civic, professional and similar organizations 4% Retail trade 4% Repair and maintenance 3% Wholesale trade 3% Agriculture, forestry, fishing and hunting 2% Arts, entertainment and recreation 2% Mining 2% Real estate and rental and leasing 2% Personal and laundry services 1% Other 9% Note: n = 399. Percentages may not equal 100% due to multiple response options. SHRM-AARP Strategic Workforce Planning ©SHRM 2012 24
25.
Demographics: Organization Sector
Privately owned for-profit organization 46% Publicly owned for-profit 19% organization Nonprofit organization 20% Government sector 12% Other 4% Note: n = 398. Percentages do not equal 100% due to rounding. SHRM-AARP Strategic Workforce Planning ©SHRM 2012 25
26.
Demographics: Organization Staff
Size 1 to 99 employees 19% 100 to 499 employees 33% 500 to 2,499 employees 24% 2,500 to 24,999 employees 15% 25,000 or more employees 9% n = 390 SHRM-AARP Strategic Workforce Planning ©SHRM 2012 26
27.
Demographics: Other Does your
organization have U.S.-based Is your organization a single-unit organization or a multi- operations (business units) only or does it unit organization? operate multinationally? Single-unit organization: An organization in U.S.-based operations only 70% which the location and the organization are 32% one and the same Multinational operations 30% Multi-unit organization: An organization that n = 407 68% has more than one location n = 404 Which HR department/function was responded For multi-unit organizations, are HR policies and practices about throughout this survey? determined by the multi-unit headquarters, by each work location or both? Corporate (companywide) 69% Business unit/division 17% Multi-unit headquarters determines HR policies 50% and practices Facility/location 14% Each work location determines HR policies and n = 282 3% practices A combination of both the work location and the multi-unit headquarters determine HR 48% policies and practices Note: n = 282. Percentages do not equal 100% due to rounding. SHRM-AARP Strategic Workforce Planning ©SHRM 2012 27
28.
SHRM-AARP Strategic Workforce
Planning Methodology Response rate = 15% Sample composed of 430 randomly selected HR professionals from SHRM’s membership Margin of error +/- 5% Survey fielded February 13, 2012 – March 12, 2012 For more survey findings, visit www.shrm.org/surveys Follow us on Twitter: http://twitter.com/SHRM_Research Project leader: Christina Lee, SHRM Research Project contributors: Jean Setzfand, vice president, Financial Security, AARP Ed Redfern, Jr., senior Issue specialist, Financial Security, AARP Mark Schmit, Ph.D., SPHR, vice president, SHRM Research Fred Emmert, Senior Speechwriter & Speakers Bureau Manager, SHRM Evren Esen, manager, SHRM Survey Research Center SHRM-AARP Strategic Workforce Planning ©SHRM 2012 28
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