Robin Chase & Mohan Samwaru

Topic

Strategies for Responding to an Ageing Workforce

Overview of Presentation

• 1) Defining Ageing Workforce in context of this paper.

• 2) Ageing Workforce in the world.

• 3) Ageing Workforce in the Caribbean.

• 4) Ageing Workforce at the BOG.

• 5) Reasons for an increase Ageing Workforce.

• 6) Challenges of Ageing Workforce.

• 7) Benefits of having an Ageing Workforce.

• 8) At the Crossroad

• 9) Strategies for Responding to an Ageing Workforce.

• 10) Questions & Answers

Area 1

Definition of Ageing Workforce in

context of this paper.

Definition

• The Age Discrimination in Employment Act (ADEA) of 1967 defines the “Ageing Workforce" as working individuals who are 40 years of age or older.

• In the context of this paper, age 50 + will be considered as Ageing Workforce.

Area 2

Ageing Workforce in the World

World: Population 50-59 years is increasing in the world

1970: 7% 2015: 11% 2060: 14%

Ageing Workforce in the World1,750,000,000 people

15-24 25-49 50-65

Area 3

Ageing Workforce in the Caribbean

Selected Caribbean CountriesFlags Countries Population Ageing Workforce(11 % of Pop)

The Bahamas 394,734 43,420

Barbados 285,337 31,387

Belize 368,429 40,527

Curacao 158,635 17,450

Guyana 770,290 84,731

Jamaica 2,805,543 308,609

Suriname 548, 926 60,381

St. Maarten 33,609 3,697

Trinidad & Tobago 1,364,973 150,147

Area 4

Ageing Workforce in Guyana

Ageing in Guyana

Ageing Staff at BOG

0

5

10

15

20

25

30

35

40

45

Below 20 yrs 20-29 yrs 30-39 yrs 40-49 yrs 50-59 yrs

Males

Females

Ageing of Staff at BoGAge

Category Total % Retire With

Below 20 yrs 3 1% 2057 and later

20-29 yrs 67 25% 2047-2056

30-39 yrs 73 26% 2037-2046

40-49 yrs 61 22% 2027-2036

50-59 yrs 66 25% 2017-2026

60-65 3 1% On contract

Area 5

Reasons for an increase in Ageing Workforce

Reasons for an increase in Ageing Workforce

a) People are more informed how to prolong their

lives.

Life Expectancy has increased

Median Age Worldwide

20-24 yrs for Caribbean

Region

30-44 yrs for Caribbean

Region

Reasons for an increase in Ageing Workforce

b) become more health conscious, learn from print, electronic and social media…. exercise more, take recommended vaccines, eating balanced diets, reading, dietary labels before buying food, know the risk of smoking etc.

c) advanced in technology-screening and diagnosis have become more simple and easy

d) started to practice the use of preventative medicine

Reasons for an increase in Ageing Workforce

e) People are delaying retirement due to financial necessity which come about due to:

i) their lifestyle (supplement), too highly engaged in work, committed to organization….

ii) started to plan retirement too late = insufficient retirement savings

iii) health care cost

Why is the Ageing Workforce Increasing?

f) The continuous decline of birth rates over the last half century due to:

• Fertility decline

• Birth control

• Proper Family Planning

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwjTgIqH5tXOAhWHmx4KHfKmCNMQjRwIBw&url=http://www.rickety.us/2009/10/world-total-fertility-rate-declines/&bvm=bv.129759880,d.dmo&psig=AFQjCNEA_EYiZj1G1VDjoEz7BsulO_AmEg&ust=1471981896226443

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwiAuPK8tNbOAhVDSiYKHUOpBCUQjRwIBw&url=http://www.pewforum.org/2015/04/02/main-factors-driving-population-growth/&bvm=bv.129759880,d.eWE&psig=AFQjCNEKY-LhaK3bDeNtVFF1_IPlmj7oXQ&ust=1472002934988980

https://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwi5pafstdbOAhUKKyYKHVTBBUcQjRwIBw&url=https://en.wikipedia.org/wiki/List_of_sovereign_states_and_dependent_territories_by_fertility_rate&bvm=bv.129759880,d.eWE&psig=AFQjCNEKY-LhaK3bDeNtVFF1_IPlmj7oXQ&ust=1472002934988980

Area 6

Challenges of an Ageing Workforce

Challenges of an Ageing Workforce

• Study conducted at University of Wisconsin revealed that:

• 9.5% of workers 18-24 years get sick per year• 20% of workers 45-54 years get sick per year• 42% of workers 65+ years get sick per year

There is a correlation between aging and disability. Older people more likely

to have multiple disabling conditions (Kamfe & Schonburg, 2011).

Challenges of an Ageing Workforce

• Negative perception of some Managers against Ageing Workforce include:

Unwillingness to flex

Inability to adapt to new technology

Resistance to change

Increase cost of salary and health insurance

Are not capable as younger employees

Do less work but take home lots of money

Area 7

Benefits of having an Ageing Workforce

Have Well Established Profile

• Already have the skills and experience to do the job.

• Have highly developed institutional and industry knowledge. (took decades to get there)

• Have existing relationship with customers and clients.

• Have networking connections.

Committed• More mature- take their work more seriously.

• Have good work habits, respect for authority, attendance, punctuality, pride in quantity and quality of work

• Are loyal to the workplace; lower rate of turnover.

• Have higher levels of engagement.

• (Matz-Costa, 2009). Engaged employees use less health care, take fewer sick days, are more productive, have longer tenure, and create stronger customer relationships

• (White, 2007) Older workers are more productive and resourceful than younger ones.

Less Baggage

• Ageing workers are more emotionally stable. Less relationship problems, fewer negative emotions, much better at handling tense situations, have fewer conflict with younger counterparts……

• All of the above play a big role in performance at the workplace.

• Ageing workers may be more productive.

Area 8

At the Crossroads

At the Crossroad• A large number of Generation X (1970-1979) and Millennials (1980-

2000) lack experience, want quick promotions and heavy pay cheques.

• 12,809 Guyanese students wrote CXC, 2016• English A = pass rate of 59.3% = 7,595• Mathematics 38.37% = 4,914

• Sick often• Not regular/ punctual• Job hopping• Migrating

• Gen Y (15- to 29-years-old) will change jobs every one to two years• Gen X’s (30- to 45-years-old) will have 10 to 12 jobs over their working life.• (46- to 64-years-old) will have four to six jobs over their working life

At the Crossroad

• Large numbers of ageing workers (baby boomers)(1946-1964) =(70-52 yrs) retiring.

• Retirees are ageing chronologically ( calendar) but not biologically. (successful, resourceful, healthy, positive aging).

• Michael Armstrong, HR Mngt 2008, Pg. 804. ‘Age is a poor predictor of job performance. It is misleading to equate physical and mental ability with age. People are simply not old at 60 any more’. Today’s older people are ‘younger than yesterday’s older people.

• Willing to work but are forced to leave due to mandatory policy.

At the Crossroad

• Large percentage of baby boomers retiring + not

prepared, stable and serious enough youths =

significant labour shortage.

• High rates of turnover = serious concern among businesses = profits significantly ( Hold Me Loose Me)

“Recognizing the Value of Older Workers” November 2011 issue of the AARP Bulletin

At the Crossroad

\MillennialGeneration X

Ageing Workforce

Area 9

Strategies for Responding to an Ageing Workforce.

1. Understand• Have a thorough understanding of your Bank’s

mission, vision.

• Be a key player in the strategic plan.

• Understand the goals well. Positioning (Wheel of Balance/ Balanced Score Card).

• Where is the organization now? Nature?• Where does it want to go? Same path? or U turn?• What sort of workforce is needed to get there?

Size? Quality? Characteristics? Cost?

2. Analyse

Analyze the Demographics of Workforce

Age- Millennials, Generation X, Baby BoomersEthnic Group

Gender

Geriatric Workforce

.

Very Youthful Workforce

Multi-Generational

All of one Ethnicity

Multi-Ethnic Workforce

All Male Workforce

All female workforce

Gender Balanced Workforce

Analyze your Workforce

• Do retirement schedule (at the beginning of every year).

• Consult with key players. (Managers/ HODs).

• Let them tell of the void that will be left due to retirement of key staff members within the next five to ten years. (knowledge, expertise, attitude, commitment productivity) .

• Identify successor. Suitable? Unsuitable?

Analyze your Workforce• Measure: Lagging (past) Leading (future) Strategic

Alignment(Balanced score card/ wheel of balance)

• Use your rear view mirrors to see what’s behind (what happened in the past).

• Contemplate: how strong is the fleet? What to do next? Preserve? Make? Buy?.

Analyze your Workforce

• Look at the potential loses of those scheduled to depart.

• Contemplate of the cost of rehiring• Contemplate of the cost of retraining• Contemplate of buying the skills

• Do a cost benefit analysis. Use your morale judgment.

• Choose your gear; use your windscreen; begin to moving.

Analyze your Workforce

• Have talks with those that are identified for retention. Figure out their future.

(intentions)

3. Plan

• Create exit, retention and succession plans.

• Share with top management.

(They have the final say)

( HR just a link between Emp. & Mngt).

• Inform key players on outcome: Managers/ HOD, employee.

Exit Plan

Plan (Exit) • Do not let Ageing employees feel as though they have

gotten old and senile, mentally bankrupt or unwanted.

• Redefine, reimagine off ramping in a positive way.

• Create graceful exit. Psychologically prepare the ageingto go.

• Set the tone for knowledge sharing. Use ageing employees as: heads of projects, coaches, mentors, trainers, internal consultant…. Build talent pipelines(understudy).

Plan (Exit)

• Have sessions on retirement (counseling).Pansy, Rebecca..

• Talk to them about their plans after retirement.Help them to get there. Help them to plan forthe next stage of their lives. (Shoe maker) loan,put them on to somebody…

• Treatment of older workers sends strong messageto early and mid career workers.

Review Policies- Retention

BOG (1965= 51 yrs old.. Building, employees, policies, operations, ideology….).

It worked well then. It is still working but needs upgrading.

The world has moved on.Where are you?Where is your Central Bank?Not because it is broken, it doesn’t need fixing

Clap (3000 BC) of hands to guitar (900)

Radiogram 1950s

A-Track 1960s

Vinyl Records-1970s

TDK Cassettes-1980’s

CD-1990’s

Flash drive-2000s

Memory Card 2000’s

“Every Organism changes; what about your, your style, your

work?”

Maya Mathias

Where are you?

Where are you?

Review Your Policy-Retirement age

Persons should not be shoved out of the workforce at 60. Lifeexpectancy has increased in Caribbean.

Benefits to be derived from this are:

Still can contribute academically, economically, socially..

a) Spending power will increase.b) Contribute to sustaining schemes such as pensions etc –c) Shrinking pool of funds.

E.g. NIS Guyana; more claims, less contribution,investment, Govt. input

Review Policies-Phased Retirement

• Create a variety of paths to retirement.

• Early retirement-Persons should get full benefits if he/ shechooses to retire 5 years before official retirement age.

• Phased retirement: allow full-time employees to workpart-time schedules while beginning to draw retirementbenefits.

• Full retirement- come off at 60.

Review Policies-Job Title

Change job title of retirees.

If not, this can create ‘choke points’ that prevent employees at mid career level from moving up the ladder.

It is necessary to unblock those choke points to grow talents.

Policy Change-Contract

• Make shorter contracts. Renew steady. (monthly,quarterly).

• Do not go for long contracts. Within months, employeecan deteriorate.

• Long contract secures employment (positive) but it alsopunishes the employee (negative) Mangar, Rahaman….

• Short term projects, part time employment, seasonalemployment

Review Policies- Flexibility • Young, energetic people find it hard to get to

work for 07:45h. Why would ageing not find ithard?

• Flex hours, time• Location- mine ours, yours, physical, virtual.

• 8 hour shift can be 08:00-3:30/ 09:00- 4:30 …..

• What about shorter shifts? 5 hours?

Policy Change- Leave • Annual, sick, vacation, maternity?• What about sabbatical plan? Not a year but 8 weeks,

12……

• Why would ageing not find it hard?

• 8 hour shift can be 08:00-3:30/ 09:00- 4:30 …..

• Do not go for long contracts. Within months, employeecan deteriorate.

• Long contract secures employment (positive) but it alsopunishes the employee (negative) Mangar, Rahaman..

Review Policies-Redesign Job Description

• Make ergonomic adjustments: what are they very efficient in; put them there.

• Less tedious assignments, challenging but also flexible….more supervisory/ oversight engaging roles.

• “ Put people in places where they would feel

happy” Maya Mathias

Review Policies- Compensation

• Banks can’t double salary of a junior employee for ageing employees to do the same work. Young will scream and disappear.

• Can’t get pension + salary + annual increases. This will widen the gap.

• Fix salary for retirees, no increases.

• Find other ways to give you a dollar here/there

• Long service….

Review Policies- Compensation

• Do not go for long contracts. Within months,employee can deteriorate.

• Long contract secures employment (positive) butit also punishes the employee (negative)Governor Williams, Mangar, Rahaman, Usuf…..

• Comprehensive medical coverage – beyondworking life.

Review Policies- Retention

• Set the tone for knowledge sharing: use ageing as coaches, mentors, trainers…

• Reverse mentoring, snow bird programmes, collaborative assignments.

Policy Change-Retiree Network.

Help retirees to develop networking-social networking to share info.

Invite them to anniversaries, specialdinners etc.

Create an Retiree Alumni

• Have a pool. Call on some to return when you are in a squeeze and need someone to fill in.

• Eg maternity leave- 3months, GoG considering 6 months.

Wellness Programme

• Enrichment talks- health, eating right…..

• Make stair way more attractive to encourage walking. Most are dark and scary. Steps at the Renaissance lighted, attractive ….

• Age friendly gym

• Make environment more conducive.

Dalai Lama