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Multi-generational Issues in the Changing Workforce
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Multi-generational Issues in the Changing Workforce
1.
Global Business Services The
Changing Workforce: Urgent Challenges and Strategies Joe Kristy Associate Partner, Human Capital Management Practice © Copyright IBM Corporation 2007
2.
Global Business Services
There is an increasing gap between needs and availability 210 Labor needed 200 Labor available 190 Aerospace (incipient) 180 Chemicals, Mining, Petroleum Millions 170 Engineering (cross-industry) Government 160 Healthcare (cross- profession) Shortage of 8-10 million “critical skill” Selected IT (cross-industry) 150 Workers forecast by end of decade Transportation Utilities 140 130 2002 2006 2010 2014 2018 2022 2026 2030 Years Source: Table: Employment Policy Foundation analysis and projections of Census/BLS and BEA data, American Workplace Report 2002 © Copyright IBM Corporation 2007
3.
Global Business Services
Maturing baby boomers are followed by a much smaller group of generation Xers, making potential replacements increasingly difficult to find and hire U.S. Population Alive Today by Year of Birth In Millions U.S. Population of Working Age 5 in 2003 4.5 4 3.5 U.S. Population 3 Alive Today 2.5 (millions) Baby Boom Generation 2 Generation X 1.5 1 0.5 0 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 Year of Birth Source: Adapted from The Segal Company, based on data from the U.S. Census Bureau, 2000. © Copyright IBM Corporation 2007
4.
Global Business Services Each
generation has different workplace behaviors Traditionalists Boomers Gen X Gen Y (61 – 84) (42 – 60) (26 – 41) (18 – 25) Too much and Continuous and Training The hard way Required to keep me I’ll leave expected Collaborative and Learning style Classroom Facilitated Independent networked Communication style Top-down Guarded Hub and spoke Collaborative Problem-solving Hierarchical Horizontal Independent Collaborative Decision-making Seeks approval Team informed Team included Team decided Command and Leadership style Get out of the way Coach Partner control No news Feedback Once per year Weekly/Daily On Demand is good news Unable to work Unfathomable if Technology use Uncomfortable Unsure without it not provided Part of my Job changing Unwise Sets me back Necessary daily routine Source: Lancaster & Stillman (2003) © Copyright IBM Corporation 2007
5.
Global Business Services
Assessing the Multi-Gen Value Chain offers insight toward solutions Sourcing & Learning & Recognition & Staffing & Career Recruitment Knowledge Benefits Management What are each What is the learning What is the What do leaders, Focus: generation’s most style of each appropriate mix of managers, and Generation pressing concerns generation? benefits and mentors of each Specific with regard to recognition generation need to Questions choosing a new job? mechanisms for know about their each generation? colleagues? How do we attract How can we How can we How do we ensure Focus: the right mix of effectively leverage balance meeting productive Generational employees to meet the experience and the diverse needs collaboration among Mix our skill needs now knowledge of each of our employees employees of different Questions and in the future? generation to benefit in a simple, cost- generations? the whole effective manner? organization? Source: IBM Institute for Business Value analysis © Copyright IBM Corporation 2007
6.
Global Business Services Summing
up the Challenge: The Maturing Workforce The global population and our work force is rapidly aging Significant talent shortages are predicted The workforce now comprises four generations, each with very different needs, drivers and learning styles; and managing intergenerational diversity will become increasingly challenging © Copyright IBM Corporation 2007
7.
Global Business Services What
can be done: “Good Practices” © Copyright IBM Corporation 2007
8.
Global Business Services Addressing
the Changing Workforce: Potential Strategies Recruitment and retention approaches tailored to generational needs and drivers Alternative work arrangements and benefits to accommodate boomers desire to keep working and acknowledging flexibility desired by Gen Y’s. Knowledge management programs to transfer knowledge across generations Revised learning approaches to accommodate the younger workforce © Copyright IBM Corporation 2007
9.
Global Business Services Retention
practices should be tailored to generational needs to accommodate each generation’s workplace behaviors Generational Differences in Workplace Behaviors Traditionalist Boomer Gen X Gen Y Too much and Continuous and Training The hard way Required to keep me I’ll leave expected Collaborative and Learning style Classroom Facilitated Independent networked Communication style Top-down Guarded Hub and spoke Collaborative Problem-solving Hierarchical Horizontal Independent Collaborative Decision-making Seeks approval Team informed Team included Team decided Command and Leadership style Get out of the way Coach Partner control No news Feedback Once per year Weekly/Daily On Demand is good news Unable to work Unfathomable if Technology use Uncomfortable Unsure without it not provided Part of my Job changing Unwise Sets me back Necessary daily routine Source: Lancaster & Stillman (2003) © Copyright IBM Corporation 2007
10.
Global Business Services “Life-Staged”
work arrangements, benefits and rewards can address unique needs of multiple generations 20-Somethings 30-Somethings 40-Somethings 50-Somethings 60-70 Somethings 80+-Somethings Training Mortgage Assistance with College tuition Social interactions Reverse life Career Coaching assistance personal services assistance sponsored by insurance Auto Insurance Career Planning through work Retirement/ work Extra major Flexible hours (elder/child care, Financial planning Flexible hours medical insurance Lease Review dry cleaning, Investment Retirement Living assistance Extra vacation New parent leave house- cleaning, counseling planning Gym plans Reverse mortgage etc.) Infertility/Adoption Time flexibility Less life insurance Driver/Shuttle Social live tied Time & schedule more to work – services Significant time off Less disability service flexibility functions happy Childcare services Healthcare Flexible Retirement hours College savings Extra disability hours/part-time benefits Continuing plans work Savings plan Education Retirement saving education & options Information summarized from The New Workforce by Harriet Hankin © Copyright IBM Corporation 2007
11.
Global Business Services
Web 2.0 Social Networking Software can provide significant benefits to knowledge transfer across generations Increased personal productivity •Find experts, get answers instantly •Share knowledge, new ideas, lessons learned, best practices •Quick customer feedback •Share “who I am and how I can contribute” Individual Team collaboration •Meeting efficiency & effectiveness •Project communications •Quick troubleshooting Community Team •Idea generation Community building •Brainstorms with •Collaborate with others on similar interests geographically distributed •Faster interaction between stakeholders, developers, teams clients, partners •Creating documentation and •Build common body of knowledge deliverables •Decrease time-to-market for product development •Users help with product support, “self serve” © Copyright IBM Corporation 2007
12.
Global Business Services Web
2.0 technologies are quickly filling informal learning gaps Access reference and Interact with media support materials tutorials, drill and practice single books, videos, web pages, player simulations and games web lectures, EPSS Web 2.0 - Second Life, Serious Web 2.0 – Wikis, Content Gaming Tagging, Blogs, Podcasts (Informal) (Formal) (Formal) (Informal) (Informal) (Formal) Interact with others anytime (Formal) (Informal) via network technology virtual classes, e- communications/ Interact with others same Conferencing place, same time Web 2.0 – Blogs, Wikis, team face-to-face classes, collaboration spaces, Jams, seminars, mentoring, coaching expertise location tied to messaging/presence awareness, emeetings © Copyright IBM Corporation 2007
13.
Global Business Services IBM
offers Maturing Workforce Services and Solutions to address the Changing workforce challenges IBM Maturing Workforce Services Alignment Workshop Diagnostic Action Knowledge Transfer MW Detailed attrition projection Mitigation drivers, outlook, impact Value Assessment Overlay Training Strategy & remediate Bus. impact assess, including Transformation options, “Good Practice”, “windows of impact/response” Mentoring review Roadmap (Present/Report) Knowledge Self Eval./Next Steps Supporting action plan capture Selected Indicators of MW Opportunities Retirement programs with high incentives + high median age workforce Heavy reliance on “Hi Value” skills (e.g. engineers, technicians) for core operations Vital, “organization-specific” undocumented business expertise @ risk Succession Management only for top 1-2 levels of workforce; no Talent Management “Fragmented/fragile” work processes & technical/applications infrastructure dependent on experienced and aging users and support cadre Profitable today, willing to invest for future advantage, searching for “burning platform” Unprofitable today, need insight to make hard decisions © Copyright IBM Corporation 2007
14.
Global Business Services It’s
a matter of Addressing “The Basics” Who may leave? Eligibility outlook Attrition projection What is the business risk/impact? Future Context Critical Talent When will this happen? Window of impact Window for response How should we respond? Readiness Response Strategy (ies) Specific Interventions © Copyright IBM Corporation 2007
15.
Global Business Services Employer
Options: Many and varied – IBM services and solutions help our clients choose appropriate actions HCM Policy and HCM Policy and Programs Programs Learning and Learning and Knowledge Management Knowledge Management Development Development Workforce Planning/ Workforce Planning/ Technology Infrastructure Technology Infrastructure Analytics Analytics Multigenerational Integration/Upgrades Integration/Upgrades Workforce Management Unique Technology Solutions Unique Technology Solutions Business Organization/ Business Organization/ (Simulators, Advisory systems, (Simulators, Advisory systems, Process Transformation Process Transformation Accessibility Technology, etc) Accessibility Technology, etc) Industry Specific Industry Specific Alternative Sourcing Alternative Sourcing Solutions Solutions Collaborative Collaborative Innovation Innovation © Copyright IBM Corporation 2007
16.
Global Business Services IBM
Global Business Services has focused on talent management, knowledge, collaboration and “work” for almost a decade, and … IBM GBS has combined the experiences from our client engagements with harvesting from our multi- client Institute for Knowledge-based Organizations to create leading practices, frameworks and methods to address the changing nature of work. © Copyright IBM Corporation 2007
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