multi-generational issues in the changing workforce
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Challenges and solutions dealing with the multi-generational workforceTRANSCRIPT
Global Business Services
© Copyright IBM Corporation 2007
The Changing Workforce:Urgent Challenges and Strategies
Joe KristyAssociate Partner, Human Capital Management Practice
Global Business Services
© Copyright IBM Corporation 2007
Source: Table: Employment Policy Foundation analysis and projections of Census/BLS and BEA data, American Workplace Report 2002
2002 2006 2010 2014 2018 2022 2026 2030
210
200
190
180
170
160
150
140
130
Labor neededLabor available
Shortage of 8-10 million “critical skill”Workers forecast by end of decade
Milli
ons
Years
There is an increasing gap between needs and availability
Aerospace (incipient)Chemicals, Mining, PetroleumEngineering (cross-industry)GovernmentHealthcare (cross- profession)Selected IT (cross-industry)TransportationUtilities
Global Business Services
© Copyright IBM Corporation 2007
Maturing baby boomers are followed by a much smaller group of generation Xers, making potential replacements increasingly difficult to find and hire
U.S. Population Alive Today by Year of Birth
Source: Adapted from The Segal Company, based on data from the U.S. Census Bureau, 2000.
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000
U.S. Populationof Working Age
in 2003
In Millions
Baby BoomGeneration
GenerationX
Year of Birth
U.S.PopulationAlive Today
(millions)
Global Business Services
© Copyright IBM Corporation 2007
Each generation has different workplace behaviors
Traditionalists(61 – 84)
Boomers(42 – 60)
Gen X(26 – 41)
Gen Y(18 – 25)
Learning style Classroom Facilitated Independent Collaborative and networked
Training The hard wayToo much and
I’ll leaveRequired to keep me Continuous and
expected
Communication style Top-down Guarded Hub and spoke Collaborative
Problem-solving Hierarchical Horizontal Independent Collaborative
Decision-making Seeks approval Team informed Team included Team decided
Leadership style Command and control Get out of the way Coach Partner
Feedback No news is good news Once per year Weekly/Daily On Demand
Technology use Uncomfortable Unsure Unable to work without it
Unfathomable if not provided
Job changing Unwise Sets me back Necessary Part of my daily routine
Source: Lancaster & Stillman (2003)
Global Business Services
© Copyright IBM Corporation 2007
Assessing the Multi-Gen Value Chain offers insight toward solutions
Source: IBM Institute for Business Value analysis
How do we attract the right mix of employees to meet our skill needs now and in the future?
Sourcing & Recruitment
Learning & Knowledge
Recognition & Benefits
Staffing & Career Management
How can we effectively leverage the experience and knowledge of each generation to benefit the whole organization?
How can we balance meeting the diverse needs of our employees in a simple, cost-effective manner?
How do we ensure productive collaboration among employees of different generations?
Focus:Generational
MixQuestions
Focus: Generation
SpecificQuestions
What are each generation’s most pressing concerns with regard to choosing a new job?
What is the learning style of each generation?
What do leaders, managers, and mentors of each generation need to know about their colleagues?
What is the appropriate mix of benefits and recognition mechanisms for each generation?
Global Business Services
© Copyright IBM Corporation 2007
Summing up the Challenge: The Maturing Workforce
The global population and our work force is rapidly aging
Significant talent shortages are predicted
The workforce now comprises four generations, each with very different needs, drivers and learning styles; and managing intergenerational diversity will become increasingly challenging
Global Business Services
© Copyright IBM Corporation 2007
What can be done:“Good Practices”
Global Business Services
© Copyright IBM Corporation 2007
Addressing the Changing Workforce: Potential Strategies
Recruitment and retention approaches tailored to generational needs and drivers
Alternative work arrangements and benefits to accommodate boomers desire to keep working and acknowledging flexibility desired by Gen Y’s.
Knowledge management programs to transfer knowledge across generations
Revised learning approaches to accommodate the younger workforce
Global Business Services
© Copyright IBM Corporation 2007
Retention practices should be tailored to generational needs to accommodate each generation’s workplace behaviors
Traditionalist Boomer Gen X Gen Y
Learning style Classroom Facilitated Independent Collaborative and networked
Training The hard wayToo much and
I’ll leaveRequired to keep me Continuous and
expected
Communication style Top-down Guarded Hub and spoke Collaborative
Problem-solving Hierarchical Horizontal Independent Collaborative
Decision-making Seeks approval Team informed Team included Team decided
Leadership style Command and control Get out of the way Coach Partner
Feedback No news is good news Once per year Weekly/Daily On Demand
Technology use Uncomfortable Unsure Unable to work without it
Unfathomable if not provided
Job changing Unwise Sets me back Necessary Part of my daily routine
Generational Differences in Workplace Behaviors
Source: Lancaster & Stillman (2003)
Global Business Services
© Copyright IBM Corporation 2007
20-Somethings 30-Somethings 40-Somethings 50-Somethings 60-70 Somethings 80+-Somethings
TrainingCareer CoachingAuto InsuranceLease ReviewExtra vacationGymSocial live tied more to work –functions happy hoursContinuing Education
Mortgage assistanceCareer PlanningFlexible hoursNew parent leave plansInfertility/Adoption servicesChildcare servicesCollege savings plansRetirement saving education & options
Assistance with personal services through work (elder/child care, dry cleaning, house- cleaning, etc.)Time & schedule flexibilityRetirement benefitsSavings plan
College tuition assistanceRetirement/ Financial planningInvestment counselingTime flexibilitySignificant time offHealthcareExtra disability
Social interactions sponsored by workFlexible hoursRetirement planningLess life insuranceLess disability
Reverse life insuranceExtra major medical insuranceLiving assistanceReverse mortgageDriver/Shuttle serviceFlexible hours/part-time work
“Life-Staged” work arrangements, benefits and rewards can address unique needs of multiple generations
Information summarized from The New Workforce by Harriet Hankin
Global Business Services
© Copyright IBM Corporation 2007
Web 2.0 Social Networking Software can provide significant benefits to knowledge transfer across generations
Individual
Community Team
Increased personal productivity•Find experts, get answers instantly •Share knowledge, new ideas, lessons learned, best practices •Quick customer feedback •Share “who I am and how I can contribute”
Team collaboration •Meeting efficiency & effectiveness•Project communications•Quick troubleshooting•Idea generation•Brainstorms with geographically distributed teams•Creating documentation and deliverables
Community building•Collaborate with others on similar interests•Faster interaction between stakeholders, developers, clients, partners•Build common body of knowledge•Decrease time-to-market for product development•Users help with product support, “self serve”
Global Business Services
© Copyright IBM Corporation 2007
Web 2.0 technologies are quickly filling informal learning gaps
Interact with mediatutorials, drill and practice single player simulations and gamesWeb 2.0 - Second Life, Serious Gaming
Interact with others anytime via network technologyvirtual classes, e-communications/ConferencingWeb 2.0 – Blogs, Wikis, team collaboration spaces, Jams, expertise location tied to messaging/presence awareness, emeetings
Access reference and support materials
books, videos, web pages, web lectures, EPSS
Web 2.0 – Wikis, Content Tagging, Blogs, Podcasts
Interact with others same place, same time
face-to-face classes, seminars, mentoring, coaching
(Informal)
(Formal)
(Formal)
(Informal)
(Informal)
(Formal)
(Informal)
(Formal)
Global Business Services
© Copyright IBM Corporation 2007
IBM Maturing Workforce Services
Alignment WorkshopKnowledge Transfer MW drivers, outlook, impactStrategy & remediate
options, “Good Practice”, reviewSelf Eval./Next Steps
Selected Indicators of MW Opportunities
DiagnosticDetailed attrition projectionValue Assessment OverlayBus. impact assess, including
“windows of impact/response”Roadmap (Present/Report)Supporting action plan
IBM offers Maturing Workforce Services and Solutions to address the Changing workforce challenges
ActionMitigationTrainingTransformationMentoringKnowledge
capture
Retirement programs with high incentives + high median age workforceHeavy reliance on “Hi Value” skills (e.g. engineers, technicians) for core operationsVital, “organization-specific” undocumented business expertise @ risk Succession Management only for top 1-2 levels of workforce; no Talent Management“Fragmented/fragile” work processes & technical/applications infrastructure dependent on experienced and aging users and support cadreProfitable today, willing to invest for future advantage, searching for “burning platform”Unprofitable today, need insight to make hard decisions
Global Business Services
© Copyright IBM Corporation 2007
It’s a matter of Addressing “The Basics”
Who may leave?Eligibility outlookAttrition projection
What is the business risk/impact?Future ContextCritical Talent
When will this happen?Window of impactWindow for response
How should we respond?ReadinessResponse Strategy (ies)Specific Interventions
Global Business Services
© Copyright IBM Corporation 2007
Employer Options: Many and varied – IBM services and solutions help our clients choose appropriate actions
HCM Policy and Programs
HCM Policy and Programs
Knowledge ManagementKnowledge Management
Alternative SourcingAlternative Sourcing
Business Organization/Process TransformationBusiness Organization/Process Transformation
Workforce Planning/Analytics
Workforce Planning/Analytics
Unique Technology Solutions(Simulators, Advisory systems, Accessibility Technology, etc)
Unique Technology Solutions(Simulators, Advisory systems, Accessibility Technology, etc)
Learning and Development
Learning and Development
Technology InfrastructureIntegration/Upgrades
Technology InfrastructureIntegration/Upgrades
Collaborative Innovation
Collaborative Innovation
MultigenerationalWorkforce
Management
Industry SpecificSolutions
Industry SpecificSolutions
Global Business Services
© Copyright IBM Corporation 2007
IBM Global Business Services has focused on talent management, knowledge, collaboration and “work” for almost a decade, and …
IBM GBS has combined the experiences from our client engagements with harvesting from our multi-client Institute for Knowledge-based Organizations to create leading practices, frameworks and methods to address the changing nature of work.