An Aging Workforce:
Shifting from
Problem to Potential
Kate Schaefers
Tracy Godfrey
April, 2012
Schaefers & Godfrey 1
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
Schaefers & Godfrey April, 2012 2
What Do We Mean By
“Retired”
….what words
and images
come to mind?
Schaefers & Godfrey April, 2012 3
What does 60 look like?
Schaefers & Godfrey April, 2012 4
“A Change Is Gonna Come”
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”
Schaefers & Godfrey April, 2012 5
Population Workforce
Work Bond
Workforce Trends, 1990 - 2020
Schaefers & Godfrey April, 2012 6
17.9% 15.8% 13.6% 12.5%
70.2% 71.1% 66.9%
62.9%
11.9% 13.1% 19.5%
24.6%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
1990 2000 2010 2020
55 and older
25 to 54
16 to 24
The percent over age 55 more than doubles; The percent age 16 – 24 declines
Source: US Bureau of Labor Statistics
Aging Workforce
• 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.
Schaefers & Godfrey April, 2012 7
Population Workforce
Work
“Retirement” – New Realities
• One in five “retired” are
working, some full-time
• No longer a stopping point
• People WANT and often
NEED to work
Schaefers & Godfrey April, 2012 8
Most people expect to work in retirement –
but probably in a different way
History of Retirement
Schaefers & Godfrey April, 2012 9
1900’s 1930’s 1960’s TODAY
Soci
al S
ecu
rity
Act
of
19
35
Sun
Cit
y -
19
60
Vo
n B
ism
arc
k –
Ger
ma
ny
- 1
88
3
What are the Rewards Of Working?
Love and work
are the
cornerstones of
our humanness.
~ Sigmund Freud
Schaefers & Godfrey April, 2012 10
Working – More than Financial
Source: Erdogen et all (2011). Industrial & Organizational Psychology
11
April, 2012
• Promotions less important
• Want Work that:
– Is Aligned with Talents
& Values
– Continued Learning
– Flexibility and
Autonomy
Schaefers & Godfrey
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)
Schaefers & Godfrey April, 2012 12 12 12
AARP Survey of Workers over 50
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
Schaefers & Godfrey April, 2012 13 13 13
40 - 55 20 - 40 55 - 70 70 – 85+
Now
1900 1900
A “New Stage” Has Emerged
“New Stage” Models include Work
• Engaged Aging
• Giving Back
• Impact & Meaning
Schaefers & Godfrey April, 2012 14
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
Schaefers & Godfrey April, 2012 15 15 15
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
Schaefers & Godfrey April, 2012 16 16 16
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
April, 2012 17 Schaefers & Godfrey
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.
April, 2012 18
Source: Encore Career Choices 2011
Schaefers & Godfrey
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)
April, 2012 19
http://www.encore.org/files/research/JobsBluestonePaper3-5-10.pdf Schaefers & Godfrey
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)
April, 2012 20 Schaefers & Godfrey
Career Ladder vs. Career Lattice Defined Steps – Moving Up Multidirectional – In & out of fields
Godfrey & Schaefers April, 2012 21
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
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
Schaefers & Godfrey April, 2012 22
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
Schaefers & Godfrey April, 2012 23 23 23
Need More ON-RAMPS to
Career Transition
• Targeted Training
Programs
• Flexibility in
Structure of Work
• Creative HR
Approaches
• Experiential Learning
Schaefers & Godfrey April, 2012 24
Second Half of Life A Coaching Process
• Clarify Identity
• Develop Vision
• Create Plan
• Take Action
Schaefers & Godfrey April, 2012 25
© Schaefers 2012
• 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?
April, 2012 26
Clarify Identity
© Schaefers 2012
Schaefers & Godfrey
• What life do I want to
live at this point?
• What are my
PRIORITIES?
• What are my NEEDS?
• What kind of work
IS POSSIBLE for me?
April, 2012 27
Develop Vision
“The Japanese Bridge”
By Claude Monet
Schaefers & Godfrey
© Schaefers 2012
April, 2012 28
Create Plan
Schaefers & Godfrey
• 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
April, 2012 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 & Godfrey
© Schaefers 2012
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
Schaefers & Godfrey April, 2012 30
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
Schaefers & Godfrey April, 2012 31
About Us
Tracy Godfrey is a seasoned HR
professional with more
than 25 years
experience, leading
teams & consulting on
recruiting and selection
for major Twin Cities corporations.
Tracy holds an MBA and Senior
Professional, Human Resources
(SPHR) certification. He is a member
of the Leadership Group of the Vital
Aging Network (VAN)
Kate Schaefers Ph.D. LP, is owner of
Encore Life Planning.
She is a licensed
psychologist & certified
retirement coach. She
offers coaching and
consultation to individuals and
organizations on issues related to
work in the second half of life. She is
an adjunct faculty member at the
University of St. Thomas Dept. of
Organization Learning and
Development and Graduate School
of Professional Psychology
Schaefers & Godfrey April, 2012 32
Top Related