Presentation is loading. Please wait.

Presentation is loading. Please wait.

How the Public Sector Can Beat the Upcoming Talent Crisis: Understanding the Multi-Generational Workforce Tim Phoenix NSAA/NASC Joint Middle Management.

Similar presentations


Presentation on theme: "How the Public Sector Can Beat the Upcoming Talent Crisis: Understanding the Multi-Generational Workforce Tim Phoenix NSAA/NASC Joint Middle Management."— Presentation transcript:

1 How the Public Sector Can Beat the Upcoming Talent Crisis: Understanding the Multi-Generational Workforce Tim Phoenix NSAA/NASC Joint Middle Management Conference Deloitte Consulting April 15, 2008

2 2 Copyright © 2008 Deloitte Development LLC. All rights reserved. Which Are You? VeteransBoomers Gen X Gen Y Birth years 1945 and prior Birth years 1945 and prior Birth Years 1946 through 1964 Birth Years 1965 through 1978 Birth Years 1979 through 1993

3 3 Copyright © 2008 Deloitte Development LLC. All rights reserved. Five Facts That Frame the Situation Fact #1: The impact of the aging workforce is one of the premier issues in the eyes of State government leadership Fact #2: Most States/Agencies are aware of the depth of the problem and many have even conducted detailed analysis and forecasts in this area Fact #3: Most States/Agencies are relatively frozen regarding how to attack and manage the problem Fact #4: Most States/States are likely still viewing this as an HR problem and solution Fact #5: Those who maintain the status quo framing of the situation will likely be outperformed by others in the attraction of organization required talent The impact of the aging workforce on State governments will pose dramatic challenges to serving the citizen over the next 25 years

4 4 Copyright © 2008 Deloitte Development LLC. All rights reserved. Being Conversant With Macro Labor Trends

5 5 Copyright © 2008 Deloitte Development LLC. All rights reserved. Quantity Related Workforce Statistics Corporate Leadership Council State of the Workforce 2004: United States For the first time in American history, the number of younger workers entering the labor market will not replace those who are leaving Every day 10,000 Baby Boomers turn 55 years old One in six workers are age 55 For every two experience workers leaving the workforce, one will enter Workers age 25 to 34 shrank by almost 9% over the last decade By 2010, American businesses will face a labor shortage of more the 10 million workers By 2030, the gap will grow to 35 million Key Demographic Trends

6 6 Copyright © 2008 Deloitte Development LLC. All rights reserved. Not only will there be fewer available workers during the trough, but new workers are not bringing with them the skills or education necessary to perform jobs being vacated by the retirement boom Quality Related Workforce Statistics Corporate Leadership Council State of the Workforce 2004: United States Today, 85 % of jobs require education beyond high school, compared to 61% in 1991 Graduation rates at public universities has fallen from 48% in 1998 to 41% in 2002 Only 38% of the US labor force holds at least a 2-year degree It is estimated that 60% of future jobs will require training that only 20% of the current workforce possesses By 2012, the American labor force will experience a 33% shortage of four- year degree candidates (a shortfall of 6 million graduates) Even with unemployment at a relatively high level in the recent recession, unemployment rates were deceptive because of the lack of qualified candidates in many professions

7 7 Copyright © 2008 Deloitte Development LLC. All rights reserved. A Representative Example of What State Governments Face

8 8 Copyright © 2008 Deloitte Development LLC. All rights reserved. A Real Life Example… Age Distribution 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 < Age Range Employee Count In this organizations case the average employee age is 43 years old, the average tenure with the organization is years and roughly 7% of the workforce is retirement eligible right now. Tenure Distribution 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 < Service Range Employee Count

9 9 Copyright © 2008 Deloitte Development LLC. All rights reserved. Anticipating the Talent Gap Likely Scenario (21.9%) (-22.5%) Status Quo Staffing Demand Conservative Scenario (-22.5%) When considering the effect of retirement, coupled with a conservative level of turnover (15% per annum), this agency will have to attract, select and place between the equivalent of 2-3 full employee cycles over the next decade. Many organizations have even more extreme circumstances than this scenario. When considering current Age and Tenure data, it is predicted that this client will face a workforce deficit of 22.5% in ten years due to the affect of retirement alone…40% in 15 years

10 10 Copyright © 2008 Deloitte Development LLC. All rights reserved. Many government organizations are quantifying the impact of the aging workforce and anticipating dramatic competition for qualified talent driving the immediate development of strategies and programs to bend the curves and close the gap Managing the Gap Between Supply & Demand Closing the Gap through Bending the Curves Example Gap Scenario (21.9%) (-22.5%)

11 11 Copyright © 2008 Deloitte Development LLC. All rights reserved. The anticipated gap between supply and demand is so large that closing the gap will also require aggressive efforts to reduce demand for employees Bending the Demand Curve Down The primary levers in bending the demand curve down include: Productivity Enhancement Develop aggressive productivity programs to enhance overall organizational performance through business process reengineering, organizational consolidations, etc. Automation Raising the bar in terms of systems-based automation, workflow management, decision support/management, work elimination and shifting, etc. Sourcing Evaluate and implement beneficial sourcing alternatives such as outsourcing, co- sourcing, shared service operations, etc. Self-Service Redesign product and service programs to capitalize on customer self-service, etc.

12 12 Copyright © 2008 Deloitte Development LLC. All rights reserved. Influencing the Supply Curve requires a comprehensive, multi-faceted approach requiring a talent portfolio perspective Bending the Supply Curve Up The primary levers in bending the supply curve up include: Attraction and Selection Develop aggressive programs that capture a disproportionate share of available and qualified talent Talent Retention/Extension Redesign retirement and rewards programs, increase training and internal mobility, promote extended lengths of service and increase competitiveness for talent External Talent Development Develop programs and alliances to train talent that does not bring requisite skills Alternative Work Programs Develop programs to reach new and emerging talent pools and accommodate existing worker preferences Capability Transfer Develop programs to retain knowledge as talent leaves and share knowledge to aid in performance of junior staff

13 13 Copyright © 2008 Deloitte Development LLC. All rights reserved. Bending the Supply Curve Motivation and Rewards

14 14 Copyright © 2008 Deloitte Development LLC. All rights reserved. Total Rewards are All transactions between an employee and employer, plus personal workplace experience, that influence the employee to contribute effort on the employers behalf- i.e. The Value of the Work Experience Compensation Benefits Work Environment Base Pay Annual bonuses Long-term incentives Other Financial and Non-Financial Rewards Career Opportunities Culture Physical Environment Nature of Work Interactions With Others Flexibility Leadership Quality Communication / Decision-Making Employee Empowerment Reputation of Organization Career Planning Mentoring Programs Competency Development Training Programs Work Experience Health Dental Vision Care Paid Time Off Life Insurance Short / Long-Term Disability Retirement Plans Spending Accounts Other Benefits Key Concept for Governments

15 15 Copyright © 2008 Deloitte Development LLC. All rights reserved. The rewards of employment is a potentially complex picture. Focus around just one portion of rewards (e.g. current compensation and incentives) may give a biased picture It clear that employees are motivated by non-financial aspects of their employment – these may all be viewed as Consumer Driven and Career Driven rewards. Satisfaction with a career itself is a critical reward – both for its potential consumer rewards, and also as an end in itself Consumer-Driven Financial Career Driven Learning Growth assignments Personal connection Quality organization environment Innovation and growth Today Pay Benefits Stock Future Promotion Sharing rewards of growth / success Non-Financial Environment Enjoyable work Work / life balance Fulfilment The Rewards Spectrum Total Rewards

16 16 Copyright © 2008 Deloitte Development LLC. All rights reserved. Generational Motivation

17 17 Copyright © 2008 Deloitte Development LLC. All rights reserved VeteransBoomers Gen X Gen Y Over 50 percent of the men of the Veteran generation served in the armed forces. Veterans tend to be dedicated, respecting of authority and willing to delay reward. Most of our traditional benefit plans were designed to meet the needs of this group. A 35-year time horizon for a defined benefit pension plan didnt seem overwhelming to a Veteran who expected to work an entire career with one employer. This generation also trusted their companys ability to fund their benefit plans and the governments ability to secure and guarantee their benefits. Bending the Curves – Understanding Veterans Motivators Your experience is valued here. We want to hear what has and hasnt worked in the past. Your hard work and service will be rewarded. Most-Valued Rewards Respect for experience Flexibility: part-time hours, temporary employment Leah Reynolds, Deloitte Consulting, Communicating Total Rewards to the Generations, Benefits Quarterly, Second Quarter 2005

18 18 Copyright © 2008 Deloitte Development LLC. All rights reserved VeteransBoomers Gen X Gen Y Bending the Curves – Understanding Boomers There are over 80 million people in the Baby Boomer, or me generation. Boomers have competed for everything all their lives the sandbox, the little league team, college admission and theyre still at it in their respective organizations. Boomers tend to be optimistic, value affiliation and are driven to succeed. Theyre also devoted to (or at least interested in) personal growth, gratification and health and wellness. Boomers inherited the work world as the Veterans created it. They have accepted the way it is, including its traditional approach to benefit and reward plans. Motivators Your contribution is important and unique We need you Youre one of us Most-Valued Rewards Retirement planning assistance Flexible retirement options Training Politically acceptable time off Sabbaticals

19 19 Copyright © 2008 Deloitte Development LLC. All rights reserved VeteransBoomers Gen X Gen Y Bending the Curves – Understanding Gen Xers When the significantly smaller (40 million or so) group of Gen Xers entered corporate America, times had changed, and not necessarily for the better. This is the group that saw their 49 ½-year-old father (or neighbor or uncle) laid off six months before his pension They also experienced non-traditional family settings single parent homes and blended familiesat a rate never before seen in America. A key characteristic of Xers is adaptability. Roll with the punches. Deal with what life hands you. This has resulted in their generation being characterized as pragmatic, informal and balanced, as well as cynical The Xers created Me, Inc. the belief that everyone should take charge of their career and not place their employment fate in the hands of an employer. Motivators We look at your results, not how many hours youre in the office You do particularly well at this and we want to give you an opportunity to learn and grow We dont take ourselves too seriously and try to have some fun along the way Most-Valued Rewards Skill development and real-time performance feedback Immediate, tangible recognition Flexible work arrangements and positive work environments

20 20 Copyright © 2008 Deloitte Development LLC. All rights reserved VeteransBoomers Gen X Gen Y Bending the Curves – Understanding Gen Yers Get ready for this group They match the Boomer generation in size and currently range in age from recent college graduates to middle school students. They are optimistic (having been raised, in large part, by the optimistic Boomers), self-confident, achievement-oriented and sociable. They seamlessly interact with technology, multi-task effortlessly and expect to work in a place that values their contributions and allows them to make a significant impact. They also view work/life balance as a given and do not see it as incongruent with a successful career. The Yers inherited Me, Inc. and its predicted they will take it to levels never before seen in the world of work. Motivators You can make a valuable contribution here We want to get you up-to- speed quickly You can work with bright, creative people and mentors Most-Valued Rewards Learning and development opportunities Credible and positive role models Work/life balance

21 21 Copyright © 2008 Deloitte Development LLC. All rights reserved. Attracting and Engaging Generation Y? The following framework presents some specific strategies employers can use to understand, appreciate, and meet the Gen Y needs identified Employ online recruiting, offer flexibility around media choice, offer gaming simulations as a learning tool Tech-savvy work environment Solicit employee input, create flexible work- spaces/arrangements Work/life flexibility Create organizational agility, enable networking, mentoring, offer channels for feedback Open social networks that embrace honest communication Enable individual goal development and pursuit, communicate corporate vision, focus on strengths Sense of purpose/meaning in the work Flexibility Balance Respect Accessibility Enable career planning and mobility, train talent, foster mentoring, cultivate networks Long-term career development and multiple experiences Gen Y ValuesStrategies for EmployersGen Y Workplace Needs

22 22 Copyright © 2008 Deloitte Development LLC. All rights reserved.... But, There Are Also Many Generational Similarities Notice any similarities? While the generations are markedly different, their expectations regarding their value of the work experience are surprisingly similar The greatest value all generations recognize isnt necessarily hard dollar items -many are soft costs. At a time when all organizations have a finite amount of money to put toward total rewards, discovering soft dollar ways to win with all age groups is a real coup First Step The first step is to make an honest assessment of where your organization is today relative to what the generations value most Review your work environment The qualitynot quantityof communication within the organization is the biggest indicator of the health of the work environment Healthy work environments thrive on meaningful communication, where the information people share is honest and useful People talk openly about their opinions and needs Both leadership and employees know their ideas are heard

23 23 Copyright © 2008 Deloitte Development LLC. All rights reserved. What Can Your Organization Do…Now?

24 24 Copyright © 2008 Deloitte Development LLC. All rights reserved. What You Can Do? Review leadership effectiveness and HR policies and programs. Examine all the people practices that are driven by the organizations people philosophy HR policies and programs are a reflection of the organizations beliefs about its people These beliefs play a tremendous role in creating the work environment Invest in leadership development Leaders set the tone Leaders demonstrate the values of the organization How leaders spend their time, who they spend time with, how they behave and what they reward and recognize sends a clear message to the organization Create multi-generational work teams to spearhead change initiatives Bring members of each generation together to develop proposals for flexible work arrangements or brainstorm ways to re-create work to allow for increased autonomy, challenge and variety Create project teams that combine generation members Look beyond traditional coaching and mentoring programs to find ways to mix up the generations in out-of-the-ordinary ways Communicate reality Be careful not to oversell, particularly with the younger generations. If a Gen Yer joins your workforce and then discovers his or her experience doesnt match what they were told, at the push of an button, that employees entire network will know the truth

25 25 Copyright © 2008 Deloitte Development LLC. All rights reserved. In Closing - Four Key Views… This is more than just an HR issue. When quantifying the impact of retirement and recruiting challenges on your organizations, its likely evident that the gap between talent supply and demand cannot be managed by HR programs alone. It will take productivity, automation and sourcing solutions as well as HR program tuning to manage the problem This is a trough, not a cliff. When looking at Boomer and GenY demographics, there is about a 25 year period where there will be more demand for talent than available supply. Managing your organization through this trough will have significant benefits after the crisis Dont boil the ocean. When formulating an action plan many look at the organization as a whole. Focus first on scarce skills and high demand positions first, then tend to the more commodity skills Develop an effective approach to developing a solution. Start with a low- disruption, low-cost, quick-time-to-results approach for developing a prioritized set of strategic and tactical actions to manage the gap between talent supply and demand

26 26 Copyright © 2008 Deloitte Development LLC. All rights reserved. Contact Information… Tim Phoenix Deloitte Consulting LLP Tele: +1 (512)

27 27 Copyright © 2008 Deloitte Development LLC. All rights reserved. About Deloitte Deloitte refers to one or more of Deloitte Touche Tohmatsu, a Swiss Verein, its member firms and their respective subsidiaries and affiliates. Deloitte Touche Tohmatsu is an organization of member firms around the world devoted to excellence in providing professional services and advice, focused on client service through a global strategy executed locally in nearly 150 countries. With access to the deep intellectual capital of approximately 135,000 people worldwide, Deloitte delivers services in four professional areas, audit, tax, consulting and financial advisory services, and serves more than one-half of the worlds largest companies, as well as large national enterprises, public institutions, locally important clients, and successful, fast- growing global growth companies. Services are not provided by the Deloitte Touche Tohmatsu Verein and, for regulatory and other reasons, certain member firms do not provide services in all four professional areas. As a Swiss Verein (association), neither Deloitte Touche Tohmatsu nor any of its member firms has any liability for each others acts or omissions. Each of the member firms is a separate and independent legal entity operating under the names Deloitte, Deloitte & Touche, Deloitte Touche Tohmatsu or other related names. In the United States, Deloitte & Touche USA LLP is the U.S. member firm of Deloitte Touche Tohmatsu and services are provided by the subsidiaries of Deloitte & Touche USA LLP (Deloitte & Touche LLP, Deloitte Consulting LLP, Deloitte Financial Advisory Services LLP, Deloitte Tax LLP, and their subsidiaries), and not by Deloitte & Touche USA LLP. The subsidiaries of the U.S. member firm are among the nations leading professional services firms, providing audit, tax, consulting, and financial advisory services through nearly 40,000 people in more than 90 cities. Known as employers of choice for innovative human resources programs, they are dedicated to helping their clients and their people excel. For more information, please visit the U.S. member firms Web site at Copyright © 2008 Deloitte Development LLC. All rights reserved.


Download ppt "How the Public Sector Can Beat the Upcoming Talent Crisis: Understanding the Multi-Generational Workforce Tim Phoenix NSAA/NASC Joint Middle Management."

Similar presentations


Ads by Google