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Tapping the Vast Human Capital of Older Workers

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Tapping the Vast Human Capital of Older Workers. America's Aging Workforce ... Volkswagen of America. Recruiting from databases. Centegra Health. Alumni Nurse Program ... – PowerPoint PPT presentation

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Title: Tapping the Vast Human Capital of Older Workers


1
  • Tapping the Vast Human Capital of Older Workers

2
Americas Aging Workforce
  • Significant Demographic Changes in the USA
  • Nearly one in three workers will be 50 by 2012
  • Median age of workers 40
  • Baby Boom generation nearing traditional
    retirement age

3
Projected Change in Labor Force
by Age Group, 2002-2012
4
Workforce Shortages
  • Nurses and other health professions
  • Teachers
  • Public administration
  • Engineers
  • Scientists
  • Highly skilled professionals

5
Employee Perspective
6
Reinventing Retirement
  • Boomers much less likely to associate retirement
    with the traditional retirement age of 65.
  • Nearly 70 of workers who have not retired report
    that they plan to work into their retirement
    years or never retire.
  • Almost half of workers 45-70 indicate that they
    envision working into their 70s or beyond.

7
Primary Reasons for Working
  • Money
  • Health Insurance
  • Retirement benefits
  • Flexible work arrangements

8
Why People Think Theyll Work in
RetirementPre-retirees age 50-70
Source AARP, Staying Ahead of the Curve, 2003
The AARP Working in Retirement Study, 2003
9
Other Key Factors
  • Older workers, particularly the boomers, are
    striving for work/life balance
  • Between 30 and 38 million adults were caregivers
    in 2006
  • Caregiving is a financial hardship

10
Workplace Needs 50 Workers
  • Healthcare/Salary
  • Retirement benefits
  • Flexible work arrangements
  • Worker-friendly environment
  • Work/Life balance
  • Opportunity to learn something new

11
  • Employer Perspective

12
Employers are anxious about the future
  • 2006 BusinessWeek survey of 1,005 executives
  • 79 say lost knowledge can hurt financially
  • 74 Harder to find qualified employees
  • 59 Need to do more to retain workers
  • Only 16 have formal programs to do this

13
Employer Perspective Positive Perceptions of
Older Workers
  • Loyalty and dedication to the company
  • Come to work on time low absenteeism
  • Commitment to doing quality work
  • Someone you can count on in a crisis
  • Solid performance record

14
Employer Perspective Negative Perceptions of
Older Employees
  • Averse to change
  • Lack experience with new technologies
  • Out-of-date job skills
  • Difficulty reporting to younger bosses
  • Too Expensive

15
  • The Business Case for 50 Workers

16
The Business Case for 50 Workers
  • Debunk the myths employers possess regarding
    the costs associated with 50 workers and build a
    business case for utilizing 50 workers as one
    strategy for addressing labor shortages.

17
The Business Case for 50 Workers
  • Costs
  • Cash compensation
  • Health Benefits
  • Pension Benefits
  • Paid Time Off

18
The Business Case for 50 Workers
  • Industry Overlay
  • Energy
  • Financial Services
  • Health care
  • Retail

19
The Business Case for 50 Workers
  • Cash Compensation
  • Tied to market median
  • Cost depends on ability, experience and
    performance
  • Cash compensation not necessarily tied to age

20
The Business Case for 50 Workers
  • Health Benefits
  • Health claims for 50 -64 years and dependents
    equal 1.4-2.2 times the cost of claims for 30
    40 year olds.
  • HR managers are increasingly concerned with
    behavioral issues that lead to health risks
  • 50-64 year olds are less likely to have dependent
    children

21
The Business Case for 50 Workers
  • Pensions
  • Only 21 of private employers offer DB plans vs.
    42 that participate in DC plans
  • DC plans are not age-based

22
The Business Case for 50 Workers
  • Valuepart of the Equation
  • Engagement
  • Turnover

23
The Business Case for 50 Workers
  • Engagement
  • Towers Perrin study shows that 50 workers are
    more engaged as they age.
  • Highly engaged workers correlates with overall
    performance of the company.

24
The Business Case for 50 Workers
  • Turnover
  • The average tenure among workers is 3.7 years.
  • Median job tenure of 55 worker is 3.3 times that
    of 25-34 year old.
  • Employers often dont see ROI until 3rd year.

25
The Business Case for 50 Workers
  • Employer Action
  • Inventory your current talent and define future
    needs
  • Model cost trends to understand the business case
    for investments needed to attract and retain 50
    workers
  • Study available labor pool and define your talent
    strategies
  • Align reward programs
  • Align workplace policies and practices

26
Whats In it For Business?
  • The boomers will reinvent "retirement," working
    longer either because they want to or they need
    to.
  •  
  • Mature workers offer businesses a unique
    combination of experience, loyalty, enthusiasm
    and a strong work ethic.
  •  
  • As the workforce ages, businesses that know how
    to recruit and retain mature workers will gain a
    competitive edge.
  •  

27
  • Employer Best Practices

28
Best Practices - Recruitment
  • Brevard Public Schools
  • Retired Principals
  • Volkswagen of America
  • Recruiting from databases
  • Centegra Health
  • Alumni Nurse Program

29
Best Practices - Benefits
  • Busch Entertainment
  • Annual wellness visit
  • Scottsdale Healthcare
  • Backup elder care at nominal cost
  • Principal Financial
  • Health risk assessment
  • Has seen a 260 cost savings per employee
  • Home Depot
  • Offers health benefits to part-time workers

30
Best Practices Flexible Work
  • Stanley Consultants
  • Phased retirement program
  • CVS Borders Books
  • Snowbird program
  • Mercy Health
  • Part-time, flex-time, seasonal

31
Best Practices Workplace redesign
  • Baptist Health South Florida
  • Hydraulic beds
  • International Trucking
  • Supporting mechanics
  • Pinnacol Assurance
  • Ergonomics program reduced
  • workmans compensation
  • costs by 33

32
  • AARP Workforce Assessment Tool

33
AARP Workforce Assessment Toolhttp//www.aarp.org
/workforceassessment
  • Employee Age Demographic and Skill Shortage
    Projections
  • Knowledge Retention
  • Flexible Work Arrangements
  • Training and Development Benefits
  • Workplace Accommodations
  • Positive Work Environment
  • Recruitment

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  • AARP Resources and Activities 50 Worker Issues

48
  • AARP Real Relief -

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