managing the multi-generational workforce exp hr research – q1 2007 toolkit authors: diane berry...

Managing the Multi-Generational Workforce

EXP HR Research – Q1 2007

ToolkitAuthors:

Diane Berry

Lily Mok

Andy Walker

Entire contents © 2007 Gartner, Inc. All rights reserved.

Getting started

This study explored how organizations manage and develop their multi-generational workforce in a manner that blends the attributes of each and maximizes their contributions to the enterprise. The study detailed how to develop a people strategy that builds a highly effective IT organization that draws on the strengths of each generation in the workforce.

This toolkit contains the tools and templates developed during the course of the research study, and are intended to help you apply the research findings in your own organization. The study and the contents of this toolkit assist to address the following questions:

What are the characteristics of a multi-generational workforce?

How do you blend, manage and maximize the contributions of each generation of the workforce?

How do you develop and retain a multi-generational workforce?


This toolkit contains the following tools:

1. Workforce plan

A tool to create a series of snapshots, monthly and quarterly, that provide the basis for planning how to address gaps in workforce supply.

2. Demographic analysis A tool to reflect different views of the workforce supply based on the interest of the organization.

3. Workforce requirements A tool to determine projected skills gaps.

4. Retirement projection A tool to determine the level of vulnerability to non-replacement of retirees.

5. Retirement analysis A tool to forecast who is likely to leave an organization by both time period and area, so that replacements can be determined.

6. Sourcing plan

A tool to determine the appropriate sources for talent based on nature of need and availability of talent.

7. Transfer plan for retiring Baby Boomers

A tool to address key questions resulting in individual Baby Boomers retiring: 1) Who are likely replacement candidates; 2) How is their knowledge transferred; and 3) What is their post-exit role.

8. Human capital management program review

A tool to determine the status of various HCM programs in effectively integrating the multi-generational workforce.

What tools are included?


Creating a blended multi-generational workforce

To create a blended multi-generational workforce first requires assessing the current skills mix against demand, understanding vulnerability to retirement and attrition. Then plan to address the shift in workforce demographics, mitigating the risk of losing critical knowledge.

IT organizations must prepare now for a multi-generational mix. It is likely that, where the workforce is comprised primarily of older workers, IT organizations will find the call for action to be compelling. Use the framework shown on the next slide to assess and plan for a blended multi-generational workforce. Sourcing strategies must be reviewed so that they contribute to building a mixed workforce. Hiring from outside may not be an option, so consideration must be given to reinitiating programs for training and growing the workforce.

Organizations that invest in their people now, are the most likely to be able to retain them later. Once acquired through appropriate sourcing channels, the different generations of workforce can then be integrated by creating an environment that meets the diverse interests of all individuals.


The blended multi-generational workforce framework

Integrate themulti-generational

workforce Understandthe changing demographic

context

Assess and plan for a

multi-generational

mix

Review sourcing

strategies for a mixed

workforce

Blendedmulti-

generationalmix


The workforce planning process

A workforce plan enables IT organizations to manage the supply of skills against demand during times of transition, such as Baby Boomer retirement and introduction of new technology and skills. The plan starts with an assessment of the organization’s workforce demographics and its skills composition.

Based on a skills inventory and attrition analysis per demographic group, make a projection of skills gaps and time frame. Use a retirement scenario plan to then address ways of sourcing and transitioning those vacancies to younger generations.

A sourcing plan identifies the channels and sources to be used to fill specific skill needs. The net result is a series of snapshots, initially on a monthly basis and then later quarterly, that can be used to plan how to address gaps in workforce supply.


Tool: Create a workforce plan

Future supply (options)Retirement scenarios/analysis

Future supply(retirement replacements)

Future supply (overall sourcing mix)

Demand

Demand

Existing supply

Skills gaps and attrition

Skills sourcing plan: Skills hiring plan Skills development plan ESP sourcing plan

Transfer plan

IT workforce forecast/skills

Workforce demographic analysis

Supply or demand? Completed (check)Planning component


Analyze workforce demographics

The demographic analysis can be used to show different views of workforce supply analysis that are of interest to the organization. Most organizations combine internal classification data (job level, department and date of hire) with demographic data (gender, date of birth and retirement eligibility date) as a basis for identifying the impact of retirements on skills required and future workforce diversity.

This report, if sorted by most eligible for retirement, provides an initial overview of the workforce and can be used to identify the numbers likely to retire in any period. It also provides data input to the next stages of workforce planning.


Tool: Conduct demographic analysis 3

AgeSeniority Full retirementGenderJob familyGrade

Age 65+:62-64:59-61:

Totals Service 30+:25+:20+:

2007:2008:2009:

M:F:

Date of birthJob level Date of hire Date eligibleMale/

femaleIT departmentAssociate


Example: Demographic analysis 3

3/2/72

3/5/63

12/27/63

12/15/41

9/17/42

5/22/43

8/13/46

Age

14

19

15

13

21

15

17

Williams. T.

Marks, P.

Lewis, N.

Jackson, A.

Ellesmore, G.

DeGood, R.

Clark, B.

6/18/02

3/17/90

4/12/91

5/18/76

4/3/85

12/8/81

11/1/06

Seniority

3/2/2038FInfrastructure web

3/5/2029

12/27/2029

12/15/2007

9/17/2008

5/22/2009

8/13/2012

Full retirement

MInfrastructure web

FAD web

MAD mainframe

FAD web

MInfra. mainframe

MAD mainframe

GenderJob familyGrade

Date of birthJob levelAssociate Date of hire Date eligibleMale/

femaleIT department

Age 65+: 162-64: 259-61:1

Totals Service 30+: 125+: 120+: 1

2007: 12008: 12009: 1

4M3F

Example:


Assess workforce requirements

A skills inventory is typically conducted to determine what skills are held across the IT workforce. It provides an input to the tool in the next slide. A forecast requirement of headcount per skill is taken from the technology plan. The gap between the forecast and actual shows the variance, which can then be adapted for projected attrition based on current turnover rates including projected retirements.

Surpluses are inevitable as technologies and subsequent skills mature in their respective lifecycles. Those skills that are no longer needed offer opportunities for redeployment if skills retraining can be undertaken successfully. Skills gaps enable redeployment while providing the need for a sourcing strategy.


Tool: Workforce requirements analysis

(Gap)Supply(Projected

gap)Demand

Actual variance

Actual number of staff with

skill

Variance+

Projected attrition

Forecast requirementSkill


Example: Workforce requirements analysis

(3)

(5)

(3)

5

(8)

(13)

(10)

7

35

27

15

17

22

35

(7)10Visual Basic

(7)40UNIX

(5)30Microsoft.NET

210Java

(9)25J2ME

(14)35Cobol

(12)45AS400

(Gap)Supply(Projected

gap)Demand

Actual variance

Actual number of staff with

skill

Variance+

Projected attrition

Forecast requirementSkill

Example:


Retirement projection: Assess exposure to Baby Boomer loss

Use a retirement projection as a basis for managing the risk of losing critical enterprise knowledge. Project the size of the risk in terms of exposure to exits of Baby Boomers against available replacement options. To quantify the assessment, the retirement scenario figures can be added to create an overall exposure level after pre-allocated vacancies are filled.

Percentage comparisons can be made, so that the threat of different timings can be contrasted in the same area. This provides a retirement scenario comparison. Attrition projections also can be added to the projected number of retirements to show overall projected exposure for the job group. This results in an attrition scenario comparison. These two types of scenarios can then be contrasted across the workforce, to show areas of vulnerability.


Tool: Create a retirement projection to assess exposure to Baby Boomer loss

# of retirees – # of replacements = exposure level

EXAMPLE: Worst case scenario: all boomers retire on their earliest eligible dates

40 retirees in 2007 – 14 ready replacements =exposure level of 26 in 2007

Exposure level

Number of retirees= % exposure

EXAMPLE: 26/40 = 65% exposure


Retirement analysis:Assess impact of Baby Boomer loss

A retirement analysis is used to forecast who is likely to leave an organization and what impact it will have on various functions. The purpose is to prepare for direct replacements should a vacancy take place.

This type of analysis is most useful in large IT organizations and functional areas with a large amount of staff, where the size of the problem can easily be overlooked. The analysis should be considered against the priority of the work of the group, not just urgency.

For example, one question to ask is how important is this work to on-time delivery of projects? Another example question might be, how does it impact reliability of services delivered?

Questions that help assess impact are useful when determining where best to deploy scarce resources. The analysis enables decision makers to make an informed selection of sourcing.


Tool: Conduct a retirement analysis

Impact to function 1

Second most likely to retireMost likely to retire

Possible exit date(s)

Impact to function 2


Example: Retirement analysis

-10 to -12-4 to -6Names + jobsNames + jobsQ2 2008

-5 to -9

0 to -2

-1 to -2

-2 to -3 people

Names + jobs

Names + jobs

Names + jobs

P. Callahan (AD Web)N. Mc Neill (AD Mainframe)T. O’Donnell (AD Mainframe)F. Flemming (Infrastructure

Mainframe)I. Sanders (Infrastructure

Mainframe)

Names + jobs

Names + jobs

Names + jobs

B. Smart (AD Web)C. Miller (Infrastructure Web)N. Turner (AD Mainframe)E. Patel (AD Mainframe)G. Stewart (Infrastructure

Mainframe)H. Wilson (Infrastructure

Mainframe)

Q3 2008

Mar. 2008

Feb. 2008

Jan. 2008

-17 to -29

-6 to -8

-5 to - 9

-4 to -8 people

Impact to Web function

Second most likely to retireMost likely to retire

Possible exit date(s)

Impact to mainframe

function

Example:


Plan your sourcing requirements

A sourcing plan allows the workforce planner to compare the merits of different sourcing scenarios.

Build a sourcing plan around the skills gap analysis. The choices typically are to purchase hard-to-get, longer-term, non-core skills from external service providers, and fill short-term critical skills with contract labor.

The less hard-to-fill and the not-so-significant gaps are more likely to be filled through skills training, where internal talent exist, and external hiring when appropriate internal resources are close to depletion.

As circumstances change, the plan can be adapted. Having a plan does not lock the organization in but allows alternative options to be identified and adopted.


Tool: Develop a sourcing plan

FT and PTTraining to

intermediateESP/

offshoringFT and PTVariance +

attrition

Hiring employee

Skills development Outsourcing

Hiring contractors(Projected gap)

Skill


Example: Sourcing plan

2

1

3

1

4

1

5 FT + 2 PT

1

1

2

1

5

3

6

4 (Offshore)

5 (ESP)

0

0

0

8 (ESP)

0

0

0

0

0

0

1FT + 2PT

0

(7)Visual Basic

(7)UNIX

(5)Microsoft.NET

2Java

(9)J2ME

(14)Cobol

(12)AS400

*For the purpose of headcount calculations: 1 PT (part-time employee) = ½ FTE (full-time employee)

FT and PT *Training to

intermediateESP/

offshoringFT and PT *Variance +

attrition

Hiring employee

Skills development Outsourcing

Hiring contractors(Projected gap)

Skill

Example:


Transfer plan for retiring Baby Boomers

A transfer plan is a back-up plan for retiring Baby Boomers. It can be used to determine how to use Baby Boomer resources after retirement, including:

Who to approach to extend their dates of scheduled retirement?

Who to offer an on-call arrangement or work on-site as a contractor?

The plan also can be used to identify opportunities for replacements from other sources, particularly internal new skills development for those interested in working on legacy systems – an inevitable requirement at some point if those systems are to remain in use.


Tool: Create a transfer plan for retiring Baby Boomers

Post-exit role?Knowledge

transfer Replaced by ?

(Date 2)Replaced by ?

(Date 1)Possible exit

date(s)Retiree


Example: Transfer plan for retiring Baby Boomers

NoneJob rotationP. James:8/1/07

Aug. 2007D. PatelAnalyst

On site contractor (1 year)

Project assignmentRecruit;8/1/07

N. Meyers;3/1/07

Mar. 2007- Aug. 2007

T. JonesProject Manager

On call role for 6 months

Formal training + mentoring

S. Parr;3/1/08

G. Forbes;3/1/07

Mar. 2007- Mar. 2008

A. C. Clark AD Mainframe

Post-exit role?Knowledge

transfer Replaced by ?

(Date 2)Replaced by ?

(Date 1)Possible exit

date(s)Retiree

Example:


Assess HCM programs to improve alignment

Creating an integrated culture or work environment for a blended workforce requires that all HCM programs should be well aligned with the organization’s mission, vision, values and behavioral competency standards.

Use a climate survey, together with focus groups made up of members from homogenous age groups, to procure feedback on the programs. Those HCM policies and programs that are not addressing harmony and retention of the workforce should be re-examined and redesigned appropriately with the involvement of employees from the various generational groups.

Work with respected champions from the different age groups to raise proposals for change. In this way, opinions can be heard and applied to prioritize funding when it is insufficient to meet the needs of every group.

For some of the programs, such as leadership development, the IT leadership team should take responsibility for setting direction. This includes ensuring that the direction provided by each member of the senior leadership team is both consistent and communicated in ways that will be fully understood by participants.


Tool: Assess HCM policies & programs(Part 1 of 2)

Private or public as thanks for building high expertise

Refresher in expectations and gain awareness of younger colleagues

Stimulating work that recognizes high expertise

Enables women to create a predictable routine

Competitive current/ retirement medical. Maximum employer contributions to savings.

Recognition

Diversity training

Employee involvement

Work/life benefits

Employee insurance/savings benefits

Public to increase opportunities of advancement

To understand changes in the workforce mix

To be noticed and given better opportunities

Efficient organized work life that balances with family life. More time at home.

Contribution options.Family health coverage.

Public to show contribution

Help to bring age awareness to high level of ethnic/culture diversity

To contribute and be valued and heard

Shorter time at work balanced by working off hours at home

Low contribution.Opt out for cash refunds at time of resignation

*R/Y/G = Red (much work still to do), Yellow (programs can be easily improved), Green (all bases are covered)

Expectations by generation

Baby Boomers

Policy/program Generation X Generation Y

StatusR/Y/G*


Tool: Assess HCM policies & programs(Part 2 of 2)

Interactive. Clear hierarchy. Meet the expectations of others who depend on the work

Fairness is key. Compromise merit pay just to survive

Cynical. Minimize time spent on it.

Classroom/group style. Like to be mentors. Build deep expertise in area of knowledge

Culture

Compensation

Performance management

Training and development

New opportunities, innovation, risk with rewards to match

Competitive and key to retention

To demonstrate successes and negotiate rewards

E-learning that supports breadth and depth with tests to demonstrate ability

On the job learning and open forums to add value. Interesting work with minimal supervision.

Year-on-year high end improvement

Feedback and opportunity to discuss learning opportunities

Low profile with emphasis on self directed learning, breadth of learning and fun, such as video games

*R/Y/G = Red (much work still to do), Yellow (programs can be easily improved), Green (all bases are covered)

Expectations by generation

Baby Boomers

Policy/program Generation X Generation Y

StatusR/Y/G*

managing the multi-generational workforce exp hr research – q1 2007 toolkit authors: diane berry...

Documents

multi generational workforce

workforce supply

workforce requirements

workforce demographics

mixed workforce

multigenerational mix

entire contents

research study