April 7, 2011

Transcription

1 / / / with Sally Hass sallychass@yahoo.com April 7, 2011

2 Life Planning At every life stage, our task is to peer out into our own future and deliberately choose to invest in those thing today what will maximize both our options, and positive outcomes for our next life stage.

3 Result Boomers are ill prepared to fund a 30+ yr. lifespan in retirement t Surprised by likely longevity Expected Social Security to replace paycheck Underestimated health care costs Planning to save more after Unprepared for Widowhood Job loss Elder care needs Health issue or disability

4 The Gift Education Work Leisure Birth Youth Mid-Life Old Age Education Work Leisure Birth Youth Mid-Life Old Age Mid-Life has Expanded

5 Work The new dimension in planning for retirement Savings Work Social Security Pension

6 Concerns in Retirement 1. Health 2. Finances/Living Standard 3. Boredom 4. Loss of Work Relationships 5. Feeling of Worthlessness 6. Marital Relationship 7. Loneliness 8. Death and Bereavement 9. Living Arrangements 10. Legal Papers not Updated

7 Goal of Workplace Education To provide the tools, resources and motivation to enable employees to take care of the planning for the rest of their lives

8 My Agenda Workforce Trends Role of Human Resources The Weyerhaeuser Story Myths & Realities with Mature Workers What Mature Workers Want How to Move Forward Summary Remarks

9 The Next 10 Years

10 50% 50% of current workforce forecast to retire over the next 10 years

11 Workforce Trends The workplace is becoming older Available young, educated workers are drying up Immigration is not predictable Workers over age 55 will double by 2015, growing four times faster than the rest of the workforce Growing number of older working women 70% of boomer women work 10% more entering the workforce in the last 10 years Sandwich generation Grandchildren Eldercare

12 Workforce Trends Shortages Chemists Utility workers Engineers Truck drivers Differential by business and skill level Home health care Nursing Air traffic controllers Cashiers

13 Role of H uman Resources Human capital management: The competitiveness of a company depends on its ability to both attract and retain the best talent Trying to grow the most talented workforce for today and tomorrow Mature workers want it both ways Trying to create staffing flexibility

14 Workforce Strategies To address talent shortages Goal = Expand Supply and/or Reduce Demand Raise productivity Automate & redesign Export work Outsource Import workers Amplify skill levels Expand capabilities of existing talent Expand labor pool New recruiting channels Improve branding & recruiting --Dychtwald: Workforce Crisis

15 50% 50% of current workforce forecast to retire over the next 10 years!

16 Current Economic Sandwich Oversupply/high rates of available workers Uncertainty regarding business survival/growth Taken attention away from the age wave Cracks in the nest egg reducing the rate of retirements

17 Strategic Insights, June June 2007 Employers have been busy thinking of fresh ways to appeal to the new generation of workers, but as populations age, companies will also need to consider ways they can attract, retain, engage and reward older workers. Nearly one-third (31%) of surveyed employers, however, admitted that the issue of Baby Boomer retirements was not high on their radar screen, according to the 2006 Merrill Lynch New Retirement Study, which polled a combination of 1,000 U.S. clients and randomly selected companies.

18 Strategic Insights, June June 2007 Analysts say such staffing issues are less a concern than are business competition and economic factors and until personnel shortages hit the bottom line, there is little impetus for action The problem is that this leaves precious little time for planning. Employers st that want to avoid potential talent shortages will need to look into their bag of tricks for ways to appeal to an aging workforce. --Merrill Lynch, Pierce, Fenner & Smith, Inc., 2006, pg. 13

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20 Weyerhaeuser Company Background Founded 1900 Forest products based/diversified business , 40-60,000 employees U.S. & Canada, locations Older workforce/male/3 rd generation Pension/401k/pre- post-65 health care/etc. Long standing life & pre retirement educational Long-standing life & pre-retirement educational programs

21 The Problem Arises 2005 VP of Timberlands Research & Development HELP What can be done to stall or elongate careers of critical talent t due to pending massive retirements? I can t replace what s going out with new talent or through training of existing talent

22 The Investigation Launched a serious demographic study Interviewed HR about the volume of retention deals and talent shortages 200 employees over age 55 to learn what it would take for them to work longer Recruiting and staffing Employees who had provided long notice periods of retirement

23 The Investigation Gathered documentation Labor law Pension regulations Benefit rules Age discrimination Flexible work rules Disability laws

24 The Findings from 200+ Employees Over 73% said they had strong interest in working longer if: Flexible work arrangements (schedule, place) No significant negative financial impact No decline in health care benefit Meaningful work/change in the work We ask them months in advance

25 Some of What We Did Head count variance to cover longer overlaps New FTE formula for payroll loading Re-defined benefits eligibility Introduced a group long-term care insurance plan Enhanced our EAP services for eldercare Documented a retiree rehire process Launched a pilot life planning seminar for mid Launched a pilot life planning seminar for midcareer

26 Some of What We Did Launched a company wide knowledge management tinitiativeiti Manager training Long notice periods Career discussions 52+ Career extension options

27 Gray Matters Toolbox Knowledge Management Late Career Options Tools for Managers Tools for Employees Tools for Managers Tools for Employees Gray Matters Navigation Tree for Managers Gray Matters Navigation Tree for Employees Gray Matters Navigation Tree for Managers Gray Matters Navigation Tree for Employees Knowledge transfer Career discussioni Tlki Talking with ihyour strategy Knowledge transfer best practices guidelines manager about retirement Knowledge transfer process and checklist Short term knowledge checklist Knowledge transfer checklist Short term knowledge transfer checklist Coaching mid- to latecareer employee workshop Work-Life Planning workshop Knowledge management- Suggested monitoring measures Knowledge archiving system Knowledge archiving system Users Guide Telework guidelines Telework Proposal Form Retire or not Financial Analysis support document

28 Gray Matters Toolbox Knowledge Management Late Career Options Tools for Managers Tools for Employees Tools for Managers Tools for Employees Knowledge management PMP goal samples Knowledge management PMP goal samples Career phase down process description Career phase down process description Career phase down appropriateness checklist for managers Career phase down appropriateness checklist for employers Career phase down benefits impact summary Career phase down benefits impact summary Talent bank program description Talent bank program description Access talent bank Access talent bank Contingent workers guidelines Contingent workers guidelines Retiree rehire guidelines

29 Gray Matters Toolbox Knowledge Management Late Career Options Tools for Managers Tools for Employees Tools for Managers Tools for Employees Work force planning - team level: Process description Roles/skills table Mentoring guidelines Training i for mentees Training for mentors Deciding when to retire Knowledge/skills assessment checklist Action plan Sample PMP goals Expert locator Expert locator Career extension options Special classes Expert locator users guide Expert locator users guide

30 Financial Life Planning Options THREE SCENARIOS TO CONSIDER Scenario #1: Take pension at 55 No further employment Retirement assets are assumed to be spent down to age 95 Scenario #2 Post-Retirement Phase Down: Take pension at 55 Separation of service for one year Work ¾ time at Weyerhaeuser from age No further work after age 59 Scenario #3 Pre-Retirement Phase Down: Work ¾ time at Weyerhaeuser from age Take pension at 58 No further work after age 58 ASSUMPTIONS REQUIRED FOR THIS GRAPH Assumptions for all scenarios retiring at age 55: Retire from full time work at age 55 Take Social Security at age 62 15% average tax rate Total after-tax, after savings expenses: $54,0001 annual standard of living before and after retirement Total qualified assets required at retirement to sustain standard of living is $1,180,000 Inflation rate: 3% No income prior to employment Example: Retiring at Age 55 WORK LIFE FINANCIAL OUTLOOK OTHER KEY ASSUMPTIONS Weyerhaeuser employee is single Weyerhaeuser pension is taken as an annuity, not a lump sum (but the choice is yours to make - this is only an example) All retirement assets are assumed to be tax qualified, i.e., 401(k), IRA No 401(k) savings while working ¾ time 5% retirement investment rate of return Full time salary prior to age 55 = $75,000. Income inflation rate = 3% per year Retirement projection to life expectancy of age Total expenses, including taxes, 7% 401(k) savings and all other living expenses, equal income. RESULTS Social Security benefits are approximately 14% higher her in Scenarios #2 and #3 due to the additional work. Pension benefits in the third Scenario are approximately 34% higher than Scenarios #1 and #2 due to the additional work and the delay in receiving it. In the second and third Scenarios, beginning retirement assets are the same as in the first Scenario ($1,180,000). However, the additional income after age 55 allows for a lower withdrawal rate of these assets. Annual spending that leads to age 95: Scenario #1 = $54,000/yr; Scenario #2 = $60,600/yr; Scenario #3 = $61,700/yr.

31 The Results, The Wins Improved our workforce planning process Greater awareness of critical skills and talent Standardized retention options both pre- and post- retirement t Able to elongate careers of selected talent Gained a better understanding of the retirement plans of our employees Created more staffing flexibility to add or contract as business needs dictated Strengthened knowledge management in an effort to Strengthened knowledge management in an effort to reduce risk of lost knowledge

32 The Results, The Wins By focusing on the needs of older workers, we made improvements for our entire workforce, and are Better positioned for what s next

33 Myths & Realities with Mature Workers A discussion: Age Bias Know how, know who, know why Ability to learn Absenteeism Health care costs On-job injuries Turn-over Age at different rates Loyalty Too experienced Would not take direction well from younger person

34 What Mature Workers Want Personal economics and situation will drive the priorities iti Key drivers: Income Challenge Personal meaning Social interaction If you want to attract and retain, consider: Schedule flexibility Location flexibility Benefits flexibility

35 What Mature Workers Want Benefits: Health care/vision/dental/rx LTC Eldercare services Financial and estate planning services Retirement education and planning services Supplemental life insurance Workplace/job redesign

36 But In retrospect, a workforce plan focused on mature workers may be misguided

37 The Path Forward 3+ Age Cohorts Y X Boomers Each has different wants and needs Each presents its own sort of management challenges New metrics to measure and reward contribution

38 The Path Forward Goal: Ensure a highly-competitive workforce for today and dtomorrow Workforce Planning Recruiting & Staffing Benefits & Compensation X Y Boomers Key Talent Management Training & Development Work Systems HR Practices

39 Returning Full Circle Demographics is your destiny Those that understand this, who plan and take action will be in the best position This planning takes time and can be perceived as out-of-step with today s business priorities Remember: Objects in mirror are closer than they appear

40 Summary Employee Working longer may be the key to improved quality of life for the rest of their life Employer Attracting and retaining mature workers may be the key to your own competitiveness Nation Lesson the burden on Social Systems Contribute to our economic well-being

41 Recommended Reading 70: The New 50 William C. Bynam Lost Knowledge David DeLong Shock of Gray Ted Fishman What Color is Your Parachute for Retirement? Dick Boles/John Nelson The Workforce Crisis The Workforce Crisis Ken Dychtwald