Archive for the ‘Retirement’ Category

The more things change, the more different generations of workers become the same, suggests a new study about generational views on careers from Robert Half. The research shows that workers of all ages have a new appreciation for company stability when making career decisions. Yet, four out of 10 professionals polled said they are more inclined to look for new opportunities outside their firms as a result of the recession.

Cross-generational teams bring challenges and rewards. Nearly three-quarters (72 percent) of hiring managers said managing multigenerational work teams poses a challenge. But more than one-third of workers polled felt having a group of employees at different experience levels increases productivity.

What are the most significant generational differences when it comes to workforce planning?

• Generational views on next career steps differ. For Gen Y, looking for a new job is the most common post-recession career plan, whereas Gen Xers polled said they are more inclined to update their skills. For baby boomers surveyed, staying put at their companies was the most commonly cited post-recession career plan.
• More Gen Yers (36 percent) than Gen Xers (30 percent) and baby boomers (24 percent) planned to look for new job opportunities.
• Gen Xers polled were more inclined to enhance their skills sets (38 percent) and build tenure with their companies (33 percent) in the aftermath of the recession than other generations.
• A greater percentage of baby boomers (54 percent) than Gen X (46 percent) or Gen Y (39 percent) respondents said they will work past the traditional retirement age.
• More Gen Xers (34 percent) than baby boomers (27 percent) said they had increased their retirement savings since the recession began.
• More baby boomers (54 percent) than Gen X (45 percent) or Gen Y (35 percent) employees identified the greatest challenge when working with multiple generations as having differing work ethics and approaches to work/life balance; more Gen Yers attributed difficulties to differing communication styles (29 percent for Gen Y versus 16 percent for both Gen X respondents and baby boomers).

But different generations don’t always see the world differently? Many generation similarities do exist.

“Understanding the values shared by nearly all employees, particularly in light of changing economic conditions, can help companies enhance their recruitment and retention efforts,” said Max Messmer, chairman and CEO of Robert Half International and author of “Human Resources Kit For Dummies,” second edition (John Wiley & Sons, Inc.).

• For all generations surveyed, working for a stable company and having job security were two of the most important aspects of the work environment, beating out having a short commute or working for a socially responsible company.
• When evaluating employment offers, salary, company stability and benefits were the most important factors for all three generations.
• Health care coverage, dental coverage, vacation time and 401(k) matching were the highest valued benefits for all generations surveyed.
• The most commonly cited benefit of being part of multigenerational work teams was bringing together various experience levels to provide knowledge in specific areas.

“Many employees, particularly Gen Y professionals, are biding their time in their current employment situations and plan to make a move when they feel the economy is on firmer footing,” said Brett Good, a Robert Half International district president. “Now is the time for employers to take action and outline career paths within their company for strong performers. “

For nearly four decades Baby Boomers have been in the driver’s seat of politics, consumer trends, lifestyle decisions, and jobs.

But 2010 was supposed to be the turning point when Baby Boomers left the workforce en masse, retired off into the sunset, and turned the workforce over to heir apparent Generation X and the up-and-coming Millennials.

But thanks in part to the recession, for the first time on record there are more seniors than teenagers in the American labor force.

The orange line in the chart refers to the number of teenagers — workers aged 16-19 — who are in the labor force, meaning they either have jobs or are actively looking for jobs. The blue line shows the number of workers over age 65 who are in the labor force.

As you can see, starting last fall the number of older workers surpassed the number of teenage workers for the first time since at least 1948, when the Labor Department first began collecting statistics. If you look at just the employment of older workers versus teenagers — that is, how many workers actually have jobs — you will also find that older people surpassed teenagers for the first time recently, in mid-2008.

A recent New York Times article cited three primary reasons for the flip?

1.   There was always a certain percentage of Baby Boomers and the oldest generation, the Veterans, who would continue to work.

2. Older people are having to work longer.

3. The shift away from defined-benefit pensions toward defined-contribution pension plans, plus the sharp declines in equities since the financial crisis have all conspired to make it more difficult for older people to retire.

4. A weak economy plus a higher minimum wage might be discouraging employers from hiring teenage workers.

Regardless of the cause, joblessness in the Gen Y (aka Millennial) Generation is beginning to make history. According to a recent Pew Research Center  survey, a smaller share of 16- to 24-year-olds are currently employed — 46.1% — than at any time since the government began collecting such data in 1948.At best long-term implications of low unemployment for young workers include young adults living at home longer, higher college enrollment, and more internships. But a deep concern is growing how delayed entry into the workforce will translate into employee preparedness, not to mention the loss of lifetime earnings.

More older people needing work + more younger people giving up on work = grandparents surpassing grandchildren in the labor force. But that’s only a short-term statistic? Are we prepared for the long term consequences?

 Read More Sobering thoughts on the U.S. Labor Market

Every day I read through dozens of Google Alerts, RSS feeds, emails and newsletters but don’t know what to do with all the information.  So in the first of a series of posts, here are few random, yet sobering, thoughts on the U.S. Labor Market  in 140 characters or less -  Twitter-style.

There is a finite pool of talent worldwide. Support for our technological and physical infrastructure is in short supply.

Technology has increased its pace whereas educational advancement and talent creation have slowed down.

An obsolete 20^th century education-to-employment system can no longer cope with the realities of a 21^st century global labor market.

40% of workers in the United States and Canada have basic workforce education skill deficiencies.

Only 25% of America’s current eligible workers comfortably meet the new job criteria.

About 95 million adults are reading at or below the 8^th grade level of comprehension, disqualifying them for most well-paying jobs.

More than 90 million U.S. workers currently lack the reading, writing and math skills to do their jobs properly.

Compare this to Brazil, where 88% of adults and 97% of youth are literate and 70% of students complete high school.

Although 64% of high schools graduating seniors enter some form of post-secondary education, only 25% graduate with a college degree.

15% of U.S. high schools produce 50% of all the dropouts.

Young people are eager consumers of technology, but not interested in working in technology careers.

Recruiting, retaining and developing skilled people will become so challenging that many businesses will be forced out of existence.

Computers did not cause mass unemployment, but they did create a major upheaval in the nature of work.

75% of U.S. jobs will require both a good liberal-arts-based general education plus post secondary technical training.

The current education-to-employment bureaucracy chokes the innovation and change we need.

Forget Frederick Taylor’s stopwatch management. Start treating people like “brain workers.”

… it seems that the world will end, not with an explosion, but with a slow grinding halt as everything just stops working. A. Brown

We live in a moment in history when change is so speeded up that we begin to see the present only when it is already disappearing. R.D. Laing

Most of these random throughts were highlights from “Winning The Global Talent Showdown“ by Edward Gordon. Ed will be my guest on my radio show, Workforce Trends, on June 16 at 11AM EDT. Tune in!

Based on my random thoughts for this week, I must ask: Are employers underestimating the complexity and pace of change? What do you think?

Worried about your next generation of leaders?

You’re not alone. According to a new survey about leadership skills from Pearson and Executive Development Associates Inc. (EDA), 57% of business executives said their leadership talent pipeline was the same or weaker today than it was two years ago. Seventy-five percent said increasing bench strength will be their top business priority for the next two to three years. Is this too little too effort? 

When asked what skills were needed to assume executive positions within the next three to five years, respondents cited strategic thinking, leading change, the ability to create a vision and engage others around it, the ability to inspire, and the ability to understand how the total enterprise works. But the respondents also agreed these were the very skills lacking in their current talent pool.

The right successor must have just the right blend of personality, time and experience. And with a more complex and faster changing marketplace destined to be our future, the ability to deal with ambiguity and paradox is paramount. This combination requires innate talent plus development.  Creating this competency can take years and many people just are not equipped to ascend to the role. And others who have the skills and experience aren’t willing to give up their personal and family lives in exchange for a promotion and title. What motivated the Baby Boomers doesn’t motivate Gen X and Gen Y.

In addition to lack of skills, a leadership shortage is all but a done deal. When the Baby Boomers finally decide to slow down or retire, pure demographics will stall the succession. Gen X, the succeeding generation, is little more than half the size of the Boomers. And many Gen X and Gen Y are putting family before careers. 

One more glitch: while three to five years may not be enough time to develop the next generation of leaders, it might also be too long in a competitive market. Many talented Gen X are tired of waiting for the Boomers to get out of the way. As the economy is rebounding, job  offers will start coming in. It is already happening. Competitors and emerging companies are scouring the job market for talent and your next leader could be their target.