Category 5 Services. Agenda. Welcome to. Baby Boomer Tsunami. Introduction & Expectations Who are the Boomers Case study Recommendations

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1 Category 5 Services Welcome to Surviving i the Baby Boomer Tsunami March, 09 Glen Curole, CBCP, CPM President Category 5 Services Agenda Introduction & Expectations Who are the Boomers Case study Recommendations 2

2 Introductions An expert is a person who has made all the mistakes that can be made in a very narrow field. Neils Bohr 3 Expectations Purpose of this session is to: Learn how the retirement of baby boomers can adversely impact your company s future. Examine how to gather data and assess the risk. Discuss strategies to retain them.

3 Agenda Introduction & Expectations Who are the Boomers Case study Recommendations 5 Where Do the Boomers Fit In? Silent Generation Baby Boomers Generation X Millennials

4 Who are the boomers? Those born between 196 & 1965 Political boomers George Bush Bill Clinton Al Gore Prince Charles Vladimir Putin Tony Blair Barak Obama 7 Famous Boomers Steven Spielberg Sylvester Stallone David Bowie Elton John Billy Joel Jay Leno Jerry Seinfeld Oprah Winfrey John Travolta Denzel Washington Bruce Willis Steve Jobs Bill Gates Bruce Springsteen Robin Williams Tom Hanks Spike Lee George Clooney 8

5 Boomer # 1 Kathleen Casey Kirschling Generally recognized as the nation's first boomer Born in Philadelphia Jan. 1, 196 at 12:00:01 a.m. 9 Birth Fertility Rates * Births per 1,000 population Birth rate Births per 1,000 women age 15 Fertility rate * Demographic Trends in the US by Ben Wattenberg, 9/17/07

6 Other Facts 78.2 million boomers born 7,900 turn 60 each day Most popular names: James & Mary Cases of baby food sold in: million million 57.8 million boomers alive in workers for each retiree in Bureau of Labor Statistics* * August 31, 00 12

7 Impact on states 7% of Tennessee state government employees will be eligible for retirement in 5 years and the state doesn t have a plan to fill those positions. Memphis Commercial Appeal 1/31/05 13 Impact on federal government Sixty percent of the government s 1.6 million white collar employees and 90 percent of about 6,000 federal executives will be eligible for retirement over the next years, OPM director Linda Springer February, 06 1

8 Impact on business 2/3 of companies surveyed expect boomer retirements to have a measurable impact on their organizations. 6% Severe talent shortage 18% Big Impact 0% Moderate Impact 32% Minor Impact % No Impact 3/ have not yet started planning to deal with this issue. ClearRock /23/06 15 Agenda Introduction & Expectations Who are the Boomers Case study Recommendations 16

9 Step 1 AGE D.O.B. EDITED TITLE 1/ 01/ 19 GAS SUPPLY & MKT REP-SUPERIOR 89 9/ 09/ 1936 TRUCK DRIVER-CASPER 72 / 29/ 1936 DRLG SUPT-ROCKY MOUNTAIN DIV 72 11/ / 1937 GAS SUPPLY CLERK-SUPERIOR 71 1/ 29/ 1938 LANDMAN-EAST 70 / 18/ 1938 RIG MANAGER-MID CONTINENT 70 12/ 30/ 190 BOOKKEEPER 67 7/ 30/ 191 VP-LAND/ PROD ADMINISTRATION 67 8/ 21/ 191 RIG MANAGER-ARKOMA 67 1/ 30/ 192 FIXED ASSETS ACCOUNTANT 66 / 23/ 192 MECHANIC-PAMPA DIVISION 66 / 02/ 192 TRUCK DRIVER-CASPER 66 / 13/ 193 RIG MANAGER-ANADARKO 65 6/03/193 ADMIN ASST-(NOTEX/ROCKY) 65 6/ 12/ 193 RIG MANAGER-ARKOMA 65 12/ / 193 RIG MANAGER-WOODWARD 65 3/01/19 RIG MANAGER-WOODWARD 6 / 06/ 19 RIG MANAGER-ARKOMA 6 / 1/ 19 ADMIN ASSISTANT-ACCOUNTING 6 / 28/ 19 ADMINISTRATIVE ASSISTANT-HUMBL 6 11/ 01/ 19 DIVISION MANAGER-PAMPA 6 11/ 17/ 19 LAND SECRETARY-LAND ADMIN 6 1/ 11/ 195 ACCOUNTS PAYABLE CLERK / 27/ 195 RIG MANAGER-GULF COAST 63 2/ 07/ 195 DIST PRODUCTION ENGINEER-CENTR 63 3/ 11/ 195 PAYROLL CLERK / 05/ 195 EXECUTIVE SECRETARY 63 5/ 05/ 195 PAYROLL CLERK 63 7/ 25/ 195 RIG MANAGER-PANHANDLE 63 8/ 23/ 195 RIG MANAGER-ARKOMA 63 11/ 25/ 195 YARD SUPERVISOR-OKC 63 11/ 30/ 195 GEOPHYSICIST-WEST (HOUSTON) 63 / 06/ 196 VP-EXPLORATION COORDINATOR 62 7/ 11/ 196 REVENUE ACCOUNTANT- 62 7/ 27/ 196 DRLG SUPT-ARKOMA DIVISION 62 9/ 03/ 196 PILOT 62 12/ 06/ 196 DIVISION ORDER ANALYST 62 12/ 15/ 196 DIVISION SAFETY MANAGER-ROCKY Step 2 Age Distribution Among Semi-Monthly Population Nu umber of Employees Age as of 6/11/08 18

10 Step Age Distribution Among Semi-Monthly Population Nu umber of Employees Age as of 6/11/08 19 Step Year or Less Potential Retiree Population 11, 1% 26, 3% 76, % , 17% 1-5 yrs 519, 69% 6- yrs 11+ yrs

11 Ranked by total in department Key Groups Needing Replacements # of Employees Landmen Drlg Supts Truck Drivers Geologists Accountants Exec Admins Executivess Dist Engrs Rev Accts Safety Mgrs Mechanics Order Analysts Prod Foremen Payroll Dept AP Clerks Resevior Engrs < Ranked by # to be replaced Key Groups by # of Employee to be Replaced # of Employees Drlg Supts Landmen Geologists Exec Admins Executivess Truck Drivers Rev Accts AP Clerks Payroll Dept Order Analysts Prod Foremen Mechanics Dist Engrs Accountants Resevior Engrs Safety Mgrs <

12 Ranked by # to be replaced Key Groups to be Replaced as a % of the Total 0% 90% 80% 70% 60% 50% 0% < % % % 0% Drlg Supts Landmen Geologists Exec Admins Executivess Truck Drivers Rev Accts AP Clerks Payroll Dept Order Analysts Prod Foremen Mechanics Dist Engrs Accountants Resevior Engrs Safety Mgrs 23 Ranked by % to be replaced Replacements Needed as a % of Key Groups 0% 90% 80% 70% 60% 50% 0% 30% % % 0% 0% 80% 75% 55% 55% 50% 50% 50% 50% 7% 5% 2% 30% 30% % % AP Clerks Payroll Dept Drlg Supts Executives Exec Assists Order Analysts Resevior Engrs Prod Foremen Geologists Landmen Mechanics Rev Accts Truck Drivers Dist Engrs Safety Mgrs Accountants < 52 2

13 Potential # to be replaced Key Groups ranked by % of People to be Replaced # of Employees in Group * < % 80% 75% 55% 55% 50% 50% 50% 50% 7% 5% 2% 30% 30% % % AP Clerks Payroll Dept Drlg Supts Executives Exec Assists Order Analysts Resevior Engrs Prod Foremen Geologists Landmen Mechanics Rev Accts Truck Drivers Dist Engrs Safety Mgrs Accountants * # of people to be replaced 25 Retention Strategies 79% Flexible hours & schedules 67% Part time positions 53% Telecommuting 18% Have boomers mentor 5% Stay bonuses 5% Enhance pension formulas 26

14 Agenda Introduction & Expectations Who are the Boomers Case study Recommendations 27 Recommendations Gather the data Assess the risks Discuss the implications Query retirees for plans Develop retention strategies Track retirements Add to Key Results Area (KRAs) Add to quarterly executive agenda 28

15 Wrap up While the stakes are high and the issues complex, those companies that think through the data, come up with the right questions and craft a long term comprehensive strategy not only will survive this historic wave, but will also have the potential to ride its crest. James L Allier & Kenneth Kolosh in Preparing for Baby Boomer Retirement 29 Questions? Thank you! Glen Curole, CBCP, CPM President, Category 5 Services