Boomers How Do We Help Them Stay Engaged? KVRHA January 2015 Jim Peacock Peak-Careers Consulting

Transcription

1 Boomers How Do We Help Them Stay Engaged? KVRHA January 2015 Jim Peacock Peak-Careers Consulting

2 Peak-Careers Consulting Owner, Peak-Careers Consulting since 2000 Career Development Facilitator (CDF) course for national certification Online seminars for career counselors / practitioners professional development (Boomers / Transitions / Ex- Offenders / Creating Luck) Career counseling / coaching Boomers to reinvent themselves Expertise is working with and understanding Boomers motivations & issues

3 Transitioning Boomers Network Group of people who work with Boomers Health field - physical trainers & nutrition Elder Law Career coaches Financial Consultants Health profession State level is focused on 80+ year old issues

4 What I think is going to happen today National Demographics Maine Demographics What are the forces driving the issues? What the heck are Boomers thinking? What are the opportunities for companies? Questions and possibly answers

5 We are not what old people were. People now have an entire second adult life time! This is a new developmental stage. Is a 20 + year retirement practical? Affordable? or desirable?

6 Demographics

7 Boomers making them years old Early Boomers = y.o. Larger than ANY previous age cohort 10,000 Boomers per day turning 65 until 2020 Life expectancy at age 65 is +/-83 Growth of labor force for age 55+. Grows 47% (25 up to 37 million) Growth of labor force age Grows LESS THAN 1%!

8 Maine Demographics

9 The population in their peak years of labor force participation is declining rapidly. 100% 20,000 Labor Force Participation Rates 80% 60% 40% 20% 0% 10, ,000-20,000-30,000 Projected Population Labor Force Participation Rate 2012 (left scale) Labor Force Participation Rate 2000 to 2007 Average (left scale) Projected Population Change (right scale)

10 MAINE: DATA We can no longer count on a natural increase in population Births and Deaths 24,000 22,000 20,000 18,000 16,000 14,000 12,000 Natural Change (right scale) Births (left scale) Deaths (left scale) 14,000 12,000 10,000 8,000 6,000 4,000 2,000 Natural Change 10, ,000-2,

11 so we will need to increase levels of net in-migration to maintain a stable population and workforce. AND / OR entice Boomers to stay in the labor market. Net Change from Prior Year 15,000 11,200 7,400 3, Natural Change Net Migration -4,

12 Maine s total labor force is 700,000 In 2012, there were 411,000 people aged and most of this group will be leavers in next 2 decades. There are 302,000 residents under age 20 entrants GAP: 109,000! Companies need to find ways to encourage Boomers to stay in the workforce longer.

13 Maine Workforce Outlook The report projects only one of every seven job openings between 2012 and 2022 will come from growth in an industry. That is, the state will gain about 2,600 jobs from business growth and expansion, compared with 15,200 jobs to replace current workers.

14 The Nature of Work Work attributes valued in growing and declining occupations differ.

15 Converging Forces

16 Four converging forces Increased life expectancy, which has produced a retirement that can last 20 years or more Elimination of guaranteed pensions for most workers, shifting the burden for funding retirement from employers to individual retirees Recent economic uncertainty, which has been a wake-up call for many people that some additional income can make retirement far more financially sustainable Re-envisioning later life, as boomers seek greater purpose, stimulation, social engagement, and fulfillment in retirement **Merrill Lynch / Age Wave Research

17 What are these Boomers thinking?

18 Ted Talk

19 "Baby boomers are once again redefining a life stage, this time retirement," observed Andy Sieg, Head of Global Wealth & Retirement Solutions for Bank of America Merrill Lynch. "As we live longer and healthier lives, older Americans are continuing to work at levels not seen since the 1960s-- often doing so in new, more flexible and fulfilling ways. This new research shows that people will increasingly be seeking work during this stage of their lives, moving in and out of the workplace well into their 70s and beyond."

20 Workers planning to retire after 65 has jumped from 11 to 37% In past, expect 3/4 fully retired w/in 4-5 years of 65th birthday Expect less than half to actually fully retire U.S. residents ages 55 to 70 who are still working or seeking work the average age at which respondents expect to stop working for pay is about 70, and that goes up to almost 76 for those ages 66 to 70. DeLong & Associates / MetLife

21 Why do they want to work? Many are healthier More highly educated (white collar jobs) 37% college graduates is largest of any age group of men if include 2 year degrees 43% in 4 Boomer families had 1 or more of their children living with them. (mostly adults)* Grandchildren factor ~80% of Early Boomers *from 2010 MetLife Report on Early Boomers

22 Why do they want to work? Economic downturn in 2008 caused: loss of jobs decline in investments psychological legacy (risk averse) = less willing to give up income stream **Social Security benefits penalty if retire before 66 y.o. They often have financial obligations (want work) Only 14% of workers confident will have enough money to retire comfortably (historic low)

23 Values Want to help grand children s education 83% of retirees stated working during retirement helps stay more youthful 66% stated if they don t work their physical and mental abilities decline faster Traditional Values: Today s retirees are defining happiness not in terms of dollars but in terms of new experiences, peace of mind, helping family and making a difference.

24 yesterday s retirement had only two phases decades of work followed by a permanent transition into decades of leisure --a new generation of working retirees is redrawing the retirement roadmap to include four different phases: (1) Pre-retirement, (2) Career Intermission, (3) Reengagement, and (4) Leisure.

25 Self-employed may be the new can t-find-a-job 42% of respondents ages 66 to 70 report they are self-employed Much higher than the 28% of 61- to 65-yearolds Even higher than the19% of 55- to 60-yearolds who reported this.

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29 Do you know what I want to be when I am old? I want to be myself and that may involve work. GROUP 1: Look at this from the older persons perspective and identify what does this sentence mean for them and the employer. GROUP 2: Look at this from the employers perspective and identify what this means for the company and the older employees.

30 A Merrill Lynch Retirement Study, conducted in partnership with Age Wave

31 Caring Contributors (33%) Seek to give back to their communities or worthwhile causes Four out of 10 work for a nonprofit More than a quarter are unpaid volunteers Are highly satisfied with work (75%) One out of four volunteered in a related field before retiring Actively prepared to work in retirement 50% feel financially prepared for retirement 53% female, 47% male Preferred retirement soundtrack: The Best Is Yet Come (Artist: Frank Sinatra)

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33 What are some things a company could do to retain or attract Caring Contributors?

34 Caring Contributors AARP Award Winning Company: Perkins Coie LLP Encourages mature workers to pursue employee training and development programs Utilizes outside experts to help employees develop a plan Mentor / Mentee programs (Huge gap from new hire to institutional knowledge) Multi-generations in workplace can be a positive. Mentor new employees to company culture and soft skills Alumni network (remember many people take time off and then return) These folks want to give back

35 Caring Contributors cont d AARP Award Winning Company: Brevard County School Board Encourage working on team projects to share / gain knowledge Formal mentoring programs Accommodations for all (Universal design) Offer consulting or contract work MEI Technologies Social events for all ages Newsletter

36 Merrill Lynch / Age Wave What pre-retirees expect to miss most 38% Reliable income 17% Social connections 16% Employer Health Insurance 16% Having purpose and work goals 12% Mental Stimulation What retirees actually miss the most 34% Social connections 29% Reliable income 19% Having purpose and work goals 12% Mental Stimulation 7% Employer Health Insurance

37 Life Balancers 24% Primarily want to keep working for the workplace friendships and social connections However, definitely need the extra money Seek work that is fun and not stressful, and often work part-time Have high levels of work satisfaction (67%) Took few steps to prepare for retirement work 42% feel financially prepared for retirement 50% female, 50% male Preferred retirement soundtrack: Take It Easy (Artist: The Eagles) Merrill Lynch report

38 Was the sandwich generation i.e. taking care of parents & children Now the family cube generation supporting side to side as well as up and down. 52% Adult children 35% Grand children 16% Parents (in-law) 10% Sibling Merrill Lynch / Age Wave Report

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40 What are some things a company could do to retain or attract Life- Balancer s?

41 Life Balancer Cianbro 20 plus hours / week employees: tuition reimbursement, in house classroom training, online training, certification classes and reimbursement of professional membership dues. Benefits / Health medical coverage. Flextime, compressed work schedules, job sharing, telecommuting, part-time Stays in touch with retirees, offers temp work, consulting, contract work, telecommuting.

42 Lifetime balancers CMP s / On Target: Brought back Boomers for short term training on safety / OSHA Summer? Winter? Shorter flexible hours weekly? Some of these folks need Dental, Vision, or Prescription benefits. Why not create a special plan for them? Phased retirement options (continue working after retirement date on reduced schedule) *Start in Pre- Retirement stage? Retirees can fill temporary positions easily

43 Life Balancer s Allow additional time off for care-giving. Principal Financial Group calls it Working Caregiver Leave George Mason University provides 32 hours of leave annually for caregiving

44 Opportunity

45 Merrill Lynch / Age Wave recommendations Help the pre-retirees understand critical issues Help them define goals and what is most important to them in retirement Knowledge of trade-offs they must consider Ability to examine various scenarios and potential outcomes of decisions A plan of action that puts all resources to work for them Ability to correct course

46 AARP 2009 Encore Opportunity Awards 3. Moving valued staff members into encore roles is a strategy to retain them. The National Center for Appropriate Technology created an adjunct employee option, through which former employees may return when needed - keeping invaluable expertise available to the organization.

47 Multigenerational workplace Millennials - highest level of social concern & responsibility since 1966 (very similar to Boomers) Millennials - have an entrepreneurial spirit that many Boomers are now embracing Gen X - willing to work hard but want more worklife balance (again, much like Boomers) Boomers - willing to learn technology when done respectfully and in low stress environment

48 AARP 2009 Encore Opportunity Awards 5. A multigenerational staff enhances the work environment. Tapping encore talent creates a multigenerational work force in which experienced staff members serve as mentors, role models, and even surrogate family for younger staff and clients alike. At Gwinnett Count Sheriff s Dept, encore workers coach younger staff and often become parental figures to inmates.

49 Workers over 50 bring compassion, patience, and a real desire to connect and build lasting relationships. Dawn Trapp, executive director Civitan (used to hire predominantly college students but turnover was high).

50 Advantages of hiring Boomers / Recent Retirees Often already have their own insurance They can be flexible They may be able to help you fill in on busy times / cycles Can serve as mentors / role models

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52 Five things you can do now Recognize the issues Challenge your beliefs & attitudes regarding age Help your organization understand the risks and develop practical strategies and action plans Ensure your employment practices are age-friendly Talk with older workers about the contribution they want to make and what would make your company a great place to continue working. Geoff Pearman Partners in Change - New Zealand

53 Questions / Comments? Jim Peacock Peak-Careers Consulting JimPeacock@Peak-Careers.com

54 Resources Ted Talks: Jane Fonda Merrill Lynch Retirement Study, conducted in partnership with Age Wave (Ken Dychtwald) Life Planning Network Encore.org See examples of companies here. PDFs/CV_EOA.pdf Maine Workforce Outlook MDOL Center for Workforce Research and Information David DeLong & Associates & MetLife. "Buddy, Can You Spare a Job." study. It is free for anyone who is interested. BuddyCanYouSpareAJobStudy AARP.org Best employers Peak-Careers.com 5 week online seminar focused on working with Boomers

55 The four pillars of legacy 1. Values and life lessons (74%) 2. Instructions and wishes to be fulfilled (47%) 3. Personal possessions of emotional value (43%) 4. Financial assets or real estate (32%) Merrill Lynch / Age Wave

56 Boomers earn certificates The nature of work increasingly demands higher levels of literacy and more sophisticated technology competencies, the report states, noting that 68 of the 100 fastest-growing occupations will require some kind of degree or credential after high school. Challenge: Are there Boomers out there who would like to re-invent themselves and be willing to do short term training? to-2022.html#document/p6