2007AARPOnline SurveyofEmployers inflorida

Transcription

1 2007AARPOnline SurveyofEmployers inflorida October2007

2 2007 AARP Online Survey of Employers in Florida Report Prepared by Scott Melton, Prantik Baruah, and Terri Guengerich Copyright 2007 AARP Knowledge Management 601 E Street NW Washington, DC Reprinting with Permission

3 AARP is a nonprofit, nonpartisan membership organization that helps people 50+ have independence, choice and control in ways that are beneficial and affordable to them and society as a whole. We produce AARP The Magazine, published bimonthly; AARP Bulletin, our monthly newspaper; AARP Segunda Juventud, our bimonthly magazine in Spanish and English; NRTA Live & Learn, our quarterly newsletter for 50+ educators; and our website, AARP Foundation is our affiliated charity that provides security, protection, and empowerment to older persons in need with support from thousands of volunteers, donors, and sponsors. We have staffed offices in all 50 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands. Acknowledgements Staff from the AARP Florida State Office and AARP Knowledge Management and the Manatee County Chamber of Commerce and the Suncoast Workforce Board contributed to the design and implementation of this study. Special thanks are extended to Bob Bartz, President of the Manatee Chamber of Commerce and to Scott Melton, Kathy Marma, David Bruns, Makeba Huntington-Symons, and Jeff Johnson of the Florida State Office. Thanks also to Knowledge Management staff including Rachelle Cummins, Erica Dinger, Joanne Binette, Jennifer Sauer, Prantik Barauh, and Cheryl Barnes of State Member Research. Thanks are also extended to Michael Schuster, Office of General Counsel, for his legal review of this report, and to Clare Hushbeck of Government Relations and Advocacy for her review of this report. Terri Guengerich co-wrote this report. For more information, contact Terri Guengerich at (202)

4 SUMMARY Beginning in October 2007 and continuing through March 2008, AARP Florida, in cooperation with the Manatee Chamber of Commerce and the Suncoast Workforce Board, has held and will continue to convene a series of luncheons designed to help employers understand the changing demography of Florida s workforce. The series covers such topics as the: assessment of business demography, flexible work arrangements, recruitment of mature workers, how to support employees with caregiving responsibilities, and intergenerational diversity in the workplace. AARP Florida is committed to working with Florida employers to not only help employers attract and retain mature workers, but to develop a work environment that will attract workers of all ages. Highlights of AARP Florida s latest research shows that: A potential shortage of qualified workers is predicted by responding employers. Loss of institutional knowledge does occur and retention of institutional knowledge and skills is important to responding employers. Work options and accommodations are offered to older employees by responding employers. A defined contribution plan is offered by the majority of responding employers AARP Online Survey of Employers in Florida 1

5 BACKGROUND The U.S. workforce is aging rapidly. By 2014, twenty-one percent of workers 1 will be age 55 or older, in contrast to 16 percent in That's a projected increase of more than 11 million 55+ workers in just 10 years. Carrying this projection further shows that in the ten-year period from 2004 to 2014, workers age 55 and older will grow by 49 percent compared to only a three percent growth in workers age 25 to 54 years, and a half a percentage point drop in workers age 16 to 24 years. The effects of these demographic changes are already being felt by Florida employers. The Office of Economic and Demographic Research projects that from 2004 to 2014 the number of Floridians will increase by 22 percent. During this ten-year period, the number of Floridians 55 and older is projected to grow by 38 percent, and the number of Floridians age 45 to 64 is projected to grow by 34 percent. 2 AARP designed an online survey of employers in Florida in cooperation with the Manatee Chamber of Commerce and the Suncoast Workforce Board. The purpose of this survey is to gauge whether or not Florida employers have addressed the issue of changing workforce demography and to identify some of the key areas where Florida employers anticipate shortages in their workforce, as well as ascertain whether or not Florida employers have taken any steps to mitigate the loss of knowledge that may occur when older workers retire. AARP Florida fielded this online survey in June, July, and August, AARP compiled a list of addresses of Florida employers. Because this sample is based upon those AARP self-selected for participation, no estimates of sampling error can be calculated, nor can these results be generalized to all employers in Florida. An annotated questionnaire can be found at the end of this report. 1 (in the civilian labor force) Source: Labor Force Projections to 2014: Retiring Boomers, by Mitra Toossi of the Office of Occupational Statistics and Employment Projections, Bureau of Labor Statistics. Monthly Labor Review, November Source: Florida Total Population by Race, Age, and Gender: April 1, 1970 to 2030, Office of Economic & Demographic Research of the Florida Legislature AARP Online Survey of Employers in Florida 2

6 Summary of Findings Most Responding Employers Predict a Potential Shortage of Qualified Workers Nearly three in four responding employers believe that it is at least somewhat likely that their company or organization will face a shortage of qualified workers in the next five years, and about one in five believes that it is extremely likely. Moreover, about four in ten (38%) estimate that ten percent or more of their current workforce is likely to retire in the next five years. Likelihood of Facing a Shortage of Qualified Workers in the Next 5 Years (n=108) Not sure 3% Extremely 18% Very 28% Not at all 5% Not very 19% Somewhat 28% To prepare for this potential shortage of workers, responding employers are currently improving their technology (86%); increasing training and cross-training opportunities (79%); offering alternative work arrangements to their employees, such as part-time work, job sharing, and telecommuting (64%); and conducting workforce assessments (56%) AARP Online Survey of Employers in Florida 3

7 Retention of Institutional Knowledge and Skills is Important to Responding Employers Over four in five responding employers acknowledge that a loss of knowledge does occur when an employee retires or otherwise leaves their company or organization. In fact, about four in ten identify this loss as major. Knowledge Lost When Employee Retires or Leaves (n=108) Major amount 39% Minor amount 44% No answer 7% Not sure 6% None at all 4% Most responding employers (64%) consider it extremely or very important for their company or organization to retain the institutional knowledge that might be lost when an employee retires or leaves. However, only about three in ten (28%) have a formal process in place that enables their retired or former employees to share their knowledge. Responding employers identify management (20%), marketing (14%), skilled labor (13%), training or instructional skills (12%), and sales (11%) as the skill sets or experience that will be most lacking in their businesses as their workers retire. Responding Employers Offer Work Options and Accommodations to Older Employees Over half of responding employers (56%) provide training to older workers to upgrade their skills and knowledge. Over four in ten also hire retired employees as consultants or temporary employees for project or contract work (44%) and provide older workers with part-time work without benefits (42%). Exactly four in ten allow employees to ease into retirement by reducing their work schedules AARP Online Survey of Employers in Florida 4

8 To further accommodate their older workers, nearly four in ten (38%) provide opportunities for employees to transfer to jobs with reduced pay and responsibilities. In addition to the previous work accommodations for older employees, responding employers also allow all their employees the option of: Working part-time (75%) Performing project or contract work (58%) Telecommuting (46%) Sharing a job with another employee (29%) The Majority of Responding Employers Offer Employees a Defined Contribution Plan Nearly two in three responding employers (64%) offer their employees a defined contribution plan, such as a 401(k) or 403(b), which allows them to set aside tax-deferred income for retirement. However, most of these responding employers (58%) do not automatically enroll their employees into such plan. Nearly three in ten offer a defined benefit plan (28%), and about one in seven offers retiree health insurance (15%) and long-term care insurance (15%). Profile of Responding Employers Over half of responding employers (52%) completing this online survey had 50 or more employees, and over half were either vice presidents, directors, or general managers (26%) or presidents, owners, or CEOs (22%). Methodology AARP Florida fielded an online survey of businesses in Florida in June, July, and August, A list of addresses of employers was compiled by AARP. Respondents received an with a link to the survey, and two subsequent follow-up s urging them to take the survey. Approximately 2,000 s went sent, and 108 employers completed the survey. Because the sample is based upon those who AARP self-selected for participation, no estimates of sampling error can be calculated, nor can these results by generalized to all employers in Florida AARP Online Survey of Employers in Florida 5

9 APPENDIX A Annotated Questionnaire 2007 AARP Online Survey of Employers in Florida 6

10 2007 AARP Florida Employer Online Survey Annotated Questionnaire: Statewide Unweighted results based on 108 respondents. The following percentages may not sum to 100% due to rounding effects. 1. In the next five years, how likely is it that your company or organization will face a shortage of qualified workers? Extremely likely 18% Very likely 28% Somewhat likely 28% Not very likely 19% Not at all likely 5% Not sure 3% 2. About what percentage of your current workforce is likely to retire over the next 5 years? Under 10 percent 53% 10 to 20 percent 23% 21 to 30 percent 12% More than 30 percent 3% Not sure 9% 3. Has your company or organization taken any of the following steps to prepare for the potential shortage of workers as a result of baby boomers retiring? a. Recruit workers 50 to 65 years old 43% b. Recruit workers older than 65 years old 19% c. Increase training and cross-training opportunities for current employees 79% d. Conduct workforce assessment and planning 56% e. Improve technology 86% f. Offer alternative work arrangements such as part-time work, job sharing, or telecommuting 64% 2007 AARP Online Survey of Employers in Florida 7

11 4. Has your company or organization taken any other steps to prepare for the potential shortage of workers? (n=17) Recruiting; high school and college level 47% Education, training and development of current workforce 41% Benefits 29% Flexible work schedules 24% Recruit retired workers 18% 5. Does your company or organization offer any of the following work options for your employees? a. Part-time work 75% b. Job sharing 29% c. Telecommuting 46% d. Project or contract work 58% 6. How much loss of knowledge occurs when an employee retires or otherwise leaves your company or organization? A major amount 39% A minor amount 44% None at all 4% Not sure 6% No answer 7% 7. How important is it for your company or organization to retain the institutional knowledge that might be lost when an employee retires or leaves? Extremely important 24% Very important 40% Somewhat important 22% Not very important 6% Not at all important 1% No answer 7% 8. Does your organization have a formal process that enables employees who retire or otherwise leave to share the knowledge they have obtained on the job? Yes 28% No 43% Not sure 8% No answer 21% 2007 AARP Online Survey of Employers in Florida 8

12 9. Many companies or organizations use different approaches to accommodate older employees. For each of the following strategies, please indicate whether your company or organization is currently using it. a. Enabling employees to ease into retirement by reducing their work schedules 40% b. Shifting employees from one career track to another career track 32% c. Providing training to upgrade skills and knowledge 56% d. Hiring retired employees as consultants or temporary employees for project or contract work 44% e. Providing opportunities for employees to transfer to jobs with reduced pay and responsibilities 38% f. Providing part-time work arrangements without continuation of benefits 42% g. Providing part-time work arrangements with continuation of benefits 30% 10. Does your company or organization use any other approaches to accommodate older employees? (n=7) Some other approaches included flexible scheduling and driving assistance. 11. Which of the following factors, if any, are barriers to your company or organization implementing any of the strategies for older employees described in Question 9? a. Cost 23% b. Lack of information or guidance to implement 17% c. Lack of management commitment 17% d. None of the above 20% e. Not sure 16% f. Other (please specify ) 7% 2007 AARP Online Survey of Employers in Florida 9

13 12. Which of the following industry classifications best describes the primary nature of your company or organization s business in Florida? a. Agriculture; forestry; fishing and hunting; mining 0% b. Construction 3% c. Manufacturing 5% d. Wholesale trade 3% e. Retail trade 1% f. Hotel; restaurant; hospitality 7% g. Transportation and warehousing; utilities 0% h. Finance; insurance; real estate; rental and leasing 11% i. Information 1% j. Professional; scientific; management; administrative; waste management services 14% k. Education 7% l. Health care; social services 7% m. Arts; entertainment; recreation 2% n. Accommodation and food services 1% o. Other services 8% p. Public administration 3% q. Not sure 0% r. Other (please specify ) 16% 13. About how many employees do you currently have in Florida, including parttime, seasonal, or contract employees? Less than 20 15% 20 to 49 11% 50 to 99 14% 100 or more 38% Not sure 1% No answer 21% 2007 AARP Online Survey of Employers in Florida 10

14 14. About what percentage of your workforce is age 45 years or older for all locations of your company or organization in Florida (including part-time, seasonal, or contract workers)? None 2% 1 percent to 25 percent 23% 26 percent to 50 percent 30% 51 percent to 75 percent 12% 76 percent to 100 percent 2% Not sure 7% No answer 24% 15. Which of the following skills sets or experience, if any, will be lacking in your business as workers retire from your organization? a. Sales 11% b. Customer service 7% c. Accounting skills 4% d. Management 20% e. Clerical 6% f. Special certification 9% g. Medical skills 7% h. Training or instructional skills 12% i. Marketing 14% j. Purchasing 1% k. Culinary 6% l. Skilled labor 13% m. Unskilled labor 6% n. Data entry skills 8% o. Proficiency in Microsoft Office or other software programs 7% p. Computer programming skills 7% q. Other (please specify ) 20% 16. Does your company or organization offer employees a defined contribution plan, which allows employees to set aside tax-deferred income for retirement, such as a 401(k) or a 403(b)? Yes 64% No, SKIP TO QUESTION 19 12% No answer 24% 2007 AARP Online Survey of Employers in Florida 11

15 17. Are your employees automatically enrolled into your defined contribution plan? (n=69) Yes, SKIP TO QUESTION 19 39% No 58% Not sure, SKIP TO QUESTION 19 3% 18. Do any of the following barriers prevent your company or organization from automatically enrolling your employees into your defined contribution plan? (n=40) a. Cost 33% b. Lack of information or guidance to implement 3% c. Lack of managment commitment 5% d. Lack of staff to implement and oversee 3% e. None of the above 33% f. Not sure 20% g. Other (please specify ) 28% 19. Which of the following retirement benefits, if any, does your company or organization offer? a. Retiree health insurance 15% b. Defined benefit pension 28% c. Prescription drug coverage 25% d. Long-term care insurance 15% 20. Does your company or organization offer any other retirement benefits? (n=9) Other benefits included: disability insurance, long-term care insurance, and profitsharing 21. Which of the following best describes your position in your company or organization? President, Owner, CEO 22% Vice President, Director, General Manager 26% Manager, Supervisor 16% Professional 8% Other (please specify ) 3% No answer 28% 2007 AARP Online Survey of Employers in Florida 12

16 22. What is your job title? (n=72) Human Resources Vice President, Director, Manager, Representative 22% CEO, Chairman of the Board, Executive Director, President 18% Manager 10% Marketing Vice President, Director 5% Vice President, COO 5% Director 5% CFO 2% Other 1% No answer 33% 23. In what ZIP Code is your company or organization located? % % % % % % % % % % % % % % % % % % % % % % % % % 33309, 33410, 33901, % % % % 2007 AARP Online Survey of Employers in Florida 13

17 % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % Home office 1% Several locations throughout the US 1% No answer 28% 2007 AARP Online Survey of Employers in Florida 14

18 AARP Knowledge Management For more information, contact Terri Guengerich at (202)