RECRUITING MILLENNIALS. Has Collective Bargaining Hurt Us in the New Labor Market?

Transcription

1 RECRUITING MILLENNIALS Has Collective Bargaining Hurt Us in the New Labor Market?

2 WHAT S THE PROBLEM?

3 Working Definitions Gen Z, igen or Centennials Born 1996 and later, Ages 22 and younger Millennials or Gen Y Born 1977 to 1995, Ages 23 to 41 Generation X Born 1965 to 1976, Ages 42 to 53 Baby Boomers Born 1946 to 1964, Ages 54 to 72 Millennials have just recently surpassed Generation X as the largest generation in the workplace.

4 Your Kids Hate You!

5 Why Do They Hate Us? As Explained to Me by My Daughter Baby Boomers Broke Everything Medicare's Trust Fund is Set to Run Out in 8 Years. Social Security, 16 NYT Headline (June 12, 2018) We raised the first generation to believe they will NOT do as well as their parents We made college unaffordable and made them pay for it We underfunded employee pensions

6 What do Millennials value? Similar to Gen X, this generation is not impressed by job status or titles and believe respect should be earned through performance. They are not naturally loyal to an organization. If better opportunities present themselves, they will seek out another job. Millennials are more likely to accept a job that fits their lifestyle over one that pays more. Their LIFE/WORK balance is centered on the idea that employment is a means to an end.

7 What do Millennials value? Millennials experienced the development of modern technology at a young age and are very techy and adaptable individuals. These individuals are focused on self-improvement and determined to grow in their particular fields. They need constant communication with their peers and managers. Millennials expect feedback about their work as well as opportunities for training. They prefer working for organizations that are active in the community and offer volunteering during office hours.

8 Millennials and Work 21% of Millennials Report Changing Jobs in the Last Year* 88% Wish They Could Start and Finish Work at the Times They Chose** 75% Would Like to Work More Frequently From Home** Work/Life Balance Comes Before Career Progression When Evaluating Job Opportunities (But Salary is Still Number One)** *Gallup Survey **Deloitte The 2106 Deloitte Millennial Survey

9 HOW DO WE MAKE JOBS IN K-12 PUBLIC EDUCATION THE JOBS OF CHOICE FOR THIS GENERATION?

10 We Can t Change the Big Stuff Social Security Medicare Pension Crisis Denigration of Public Service In Addition to Everything Else, We Also Broke: Congress The Press Every Other Civil Institution

11 .BUT Maybe we can change our benefits to meet the needs of our current and future workforce Millennials Want to do Good, But They Need to Pay the Bills THEY ARE PERFECT RECRUITS FOR PUBLIC EDUCATION

12 Rethinking the CBA Tier Benefits for New Hires to Meet Their Needs The Purpose is NOT to Save Money The Purpose is to Meet the Actual Needs of the Teachers You Want Employ Areas to Target Health Insurance Leave Time Hours of Work Retirement

13 HEALTH INSURANCE

14 Baby Boomers Comprehensive benefits with little flexibility No portability Work 20 years to earn in retirement Employee pays minimal amounts toward premiums and services

15 Millennials Marry later in life Have children later or not at all Plan on working for current employer five or fewer years Do not trust that benefits will be there when they retire

16 Thoughts for Restructuring An HSA Tied to a High Deductible Plan Portability Control Why Do Benefit Packages Provide More Value to Employees with Families? Structure to allow employees to bank money in an HSA, 403(b) or IRS 125 Plan at an amount equivalent to payment of part or all of family coverage.

17 Individual Family Difference Traditional Plan with 15/20/30 Drug Card $8, $19, $11, Gold Level Plan $6, $15, $8, Savings $1, $4,431.60

18 LEAVE TIME

19 Baby Boomers Large Number of Days Personal Sick Leave Family Illness Leave Personal Leave Bereavement, Union, Jury Duty Banking of Days In lieu of disability Payout at retirement

20 Millennials Millennials are more likely to accept a job that fits their lifestyle over one that pays more. Their LIFE/WORK balance is centered on the idea that employment is a means to an end.

21 Thoughts for Restructuring Cash-in days at the end of the year, not at the end of a career Offer fewer days, but allow more flexibility for use

22 RETIREMENT

23 Baby Boomers 30 Years and Out Defined Benefit Programs Little to No Cost to the Employee

24 Millennials Most Millennials in education fall between Tier 4 and Tier 6.

25 Tier 4 Tier 6 < 20 years 1.67% x years of service 1.67% x years of service 20 years+ 2% x years of service up to 30 (60%) plus 1.5% for each year of NYS service beyond 30 years (30 years = 60%) 1.75% x years of service up to 20 (35%) plus 2% per year beyond 20 years of service (30 years = 55%) Early Retirement Prorated reduction of up to 27% when retirement occurs before age 62 with less than 30 years of NYS service. Prorated reduction of up to 52% when retirement occurs before age 63 regardless of your total service. No reductions if the member is age 62, or if credit totals 30 years or more.

26 Millennials We are diminishing the retirement benefit in a way that is designed to turn away Millennials. Diminish flexibility Push out the retirement age Punish people for making choices that meet life style needs

27 Thoughts for Restructuring Teacher Retirement System Allow for 403(b) options Allow for true value cash outs District Level Plow Health Savings into 403(b) options Support loan forgiveness options or develop district plan for loan payback

28 HOURS OF WORK

29 Baby Boomers We negotiate over the number of minutes per day We fight for time for teachers to collaborate Then we don t trust them to use the time effectively We run our schools based on our distrust of 15% of our staff

30 Millennials How can we rethink our schools in order to allow for Collaboration Flexibility Greater communication and feedback

31 Thoughts for Restructuring We have employees who are online and in contact with peers, colleagues and friends 24/7 How do we use that to improve education?

32 If it ain t broke, don t fix it.but if it is, what do we do next? Focus on Three Contract Rounds Take Advantage of the Pressures Caused By Janus Communicate and Ask For Feedback From Your Staff Be Public About What You Want to Accomplish Place the Pressure on the Union for Change

33 Moving Forward Be Strategic Be Thoughtful Be Consistent in Your Focus

34 DISCUSSION

35 Contact Information Mark Pettitt Director of Labor Relations OCM BOCES