multi-generational issues in the changing workforce

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Global Business Services © Copyright IBM Corporation 2007 The Changing Workforce: Urgent Challenges and Strategies Joe Kristy Associate Partner, Human Capital Management Practice

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Challenges and solutions dealing with the multi-generational workforce

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Page 1: Multi-generational Issues in the Changing Workforce

Global Business Services

© Copyright IBM Corporation 2007

The Changing Workforce:Urgent Challenges and Strategies

Joe KristyAssociate Partner, Human Capital Management Practice

Page 2: Multi-generational Issues in the Changing Workforce

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

Page 3: Multi-generational Issues in the Changing Workforce

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)

Page 4: Multi-generational Issues in the Changing Workforce

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)

Page 5: Multi-generational Issues in the Changing Workforce

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?

Page 6: Multi-generational Issues in the Changing Workforce

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

Page 7: Multi-generational Issues in the Changing Workforce

Global Business Services

© Copyright IBM Corporation 2007

What can be done:“Good Practices”

Page 8: Multi-generational Issues in the Changing Workforce

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

Page 9: Multi-generational Issues in the Changing 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)

Page 10: Multi-generational Issues in the Changing Workforce

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

Page 11: Multi-generational Issues in the Changing Workforce

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”

Page 12: Multi-generational Issues in the Changing Workforce

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)

Page 13: Multi-generational Issues in the Changing Workforce

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

Page 14: Multi-generational Issues in the Changing Workforce

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

Page 15: Multi-generational Issues in the Changing Workforce

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

Page 16: Multi-generational Issues in the Changing Workforce

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.