Human Resources in a Changing Workforce Demographics and Diversity 22

The US Labor Force is Changing Dramatically: By age The workforce is becoming older There are fewer younger workers entering the workforce The age group of those over 55 is one of the fastest growing of all demographic groups 23

The US Labor Force is Changing Dramatically: By ethnicity The workforce is becoming more ethnically and racially diverse African-American, Latino and Asian-American labor forces will increase dramatically The immigrant workforce is also increasing 24

The US Labor Force is Changing Dramatically: By Gender The influx of women into the workforce will continue, but at a somewhat slower pace 25

The US Labor Force is Changing Dramatically: Total Labor Force 26

Work and Organizations in the US are Changing Dramatically Global and national competition demand new strategies Shift from manufacturing to service economy Dramatically growing technology requires higher and higher skill levels American education is not providing skills and competencies required 27

Dramatic Labor Force Changes: What are Implications for HR? More diverse, older workforce Increased competition and need for customer focus, flexibility, new management strategies Crises in education; graduates’ skills do not match workplace needs Growing underclass What should HR do to react to these trends? 28

Implications for HR Aging workforce often requires retraining Increasing racial and cultural diversity of workplace requires understanding of others and sensitivity to cultural differences Women entering workplaces requires enhanced family-friendly policies A strategic, planned approach to managing diversity is essential 29

Implications for HR Global competition: HR must develop international perspective and strategic approach Service v. manufacturing: Careful job design and career development can enhance jobs 30

Implications for HR Growing technology: Training and development function must effectively convey critical skills and competencies Crisis in education: Companies responding with school-to-work programs, literacy training 31

NO! Managing Diversity What is “managing diversity? Managing racial and ethnic minorities and women? NO! Managing diversity is Managing the organization’s culture and systems to ensure that all people are given the opportunity to contribute to the business goals of the company 32

Managing Diversity Means managing individuals according to their own special talents Requires the creation of an environment where both the individual and the organization work together to develop a mutually beneficial relationship Is not a “warmed over” version of EEO or affirmative action 33

Managing Diversity To effectively manage diversity, organizations must integrate different approaches and perspectives that are present in the employee population, rather than focus on categorizing people in order to explain behavior 34

Managing Diversity Good diversity management De-emphasizes assimilation Values and seeks each individual’s unique perspective and experience Understands that cultural change is necessary Has strong top management support Is seen as a bottom-line issue Uses a variety of programs, not just training Understands that a workforce that reflects its customers is good business 35

How to Make Diversity Programs Effective Step one: Determine what is needed Step two: Develop goals and action plans Step three: Establish accountability and monitor program content carefully Step four: Measure the impact of the program 36