The Aging U.S. Workforce: Trends and Challenges June 1, IAJVS Annual Conference, Boston MA Trends and Challenges June 1, IAJVS Annual Conference, Boston MA

The U.S. Population is Aging

As America Ages, So Does the U.S. Workforce 78 million Baby Boomers (born ) Boomers comprise 46% of the U.S. workforce 78 million Baby Boomers (born ) Boomers comprise 46% of the U.S. workforce Source: U.S. Census Bureau, Bureau of Labor Statistics

Change in U.S. Population, by Age Group

Change in U.S. Population, by Age Group

Change in U.S. Population, by Age Group

Change in U.S. Population, by Age Group

Change in U.S. Population, by Age Group

Projected Change in U.S. Population, by Age Group Source: U.S. Census Bureau

Projected Change in U.S. Population, by Age Group Source: U.S. Census Bureau

Oldest Boomers are Turning 60 this Year In 2008, the oldest boomers will be able to get Social Security; in 2011, they will begin to turn 65 “The social and economic implications of an aging population – and of the baby boom in particular – are likely to be profound for both individuals and society” Louis Kincannon, Census Bureau Director

Labor and Talent Shortages and Related Challenges are Predicted in Certain Industries and Occupations

Examples of Critical Workforce Shortages and Challenges Affecting the NonProfit Community Social Work Workforce: 62% of social workers are over 45 years of age as compared with 37% of the civilian labor force, and 29% of social workers are 55 years and older as compared with 14% of the civilian labor force. Major workforce challenges include replacing the large number ready to retire; recruiting new social workers; and retaining the current workforce in an increasingly stressful environment (National Association of Social Workers/Center for Workforce Studies) Behavioral Healthcare Workforce: Workforce problems are evident in every element and dimension of the behavioral health field – from projected shortfalls in skilled behavioral health professionals to difficulties in recruiting and retaining staff to a vacuum of future leaders (The National Action Plan on Behavioral Health Workforce Development/The Annapolis Coalition) Direct Care Workforce: A shortage of direct-care workers in long-term care - workers who provide care and support to persons with chronic diseases or disabilities is predicted to worsen as the baby boomers begin to retire and the number of people needing long-term care grows. Personal and Home Care Aides rank as the 8 th fastest growing occupation from (Institute for the Future of Aging Services; US Bureau of Labor Statistics) Social Work Workforce: 62% of social workers are over 45 years of age as compared with 37% of the civilian labor force, and 29% of social workers are 55 years and older as compared with 14% of the civilian labor force. Major workforce challenges include replacing the large number ready to retire; recruiting new social workers; and retaining the current workforce in an increasingly stressful environment (National Association of Social Workers/Center for Workforce Studies) Behavioral Healthcare Workforce: Workforce problems are evident in every element and dimension of the behavioral health field – from projected shortfalls in skilled behavioral health professionals to difficulties in recruiting and retaining staff to a vacuum of future leaders (The National Action Plan on Behavioral Health Workforce Development/The Annapolis Coalition) Direct Care Workforce: A shortage of direct-care workers in long-term care - workers who provide care and support to persons with chronic diseases or disabilities is predicted to worsen as the baby boomers begin to retire and the number of people needing long-term care grows. Personal and Home Care Aides rank as the 8 th fastest growing occupation from (Institute for the Future of Aging Services; US Bureau of Labor Statistics)

There will be fewer younger workers Generation X, which follows the Boomers, is a smaller group – 26% of the workforce, according to the Census Bureau  Younger generations (X and Y) have different attitudes about careers and job satisfaction Generation X, which follows the Boomers, is a smaller group – 26% of the workforce, according to the Census Bureau  Younger generations (X and Y) have different attitudes about careers and job satisfaction

Many U.S. Employers Face Broad Workforce and Human Resource Challenges “Responding to the personnel tornado on the horizon” - Stateline.org Acute worker shortages in critical jobs, programs, and agencies Anticipated “brain drain” and loss of institutional memory Difficulty in recruiting skilled replacements Lack of resources to replace talent gaps Lack of flexible workplace options Managing a multi-age workplace “Responding to the personnel tornado on the horizon” - Stateline.org Acute worker shortages in critical jobs, programs, and agencies Anticipated “brain drain” and loss of institutional memory Difficulty in recruiting skilled replacements Lack of resources to replace talent gaps Lack of flexible workplace options Managing a multi-age workplace

Challenges for Non Profits Projected Large Scale Executive Turnover ~ Three out of four executive directors plan to leave their jobs by 2011 (Ready to Lead? Next Generation Leaders Speak Out) Competition for Workers in Other (Aging) Industries who offer better pay and benefits ~ Projected labor shortages in federal and state government with nearly one half of federal and state employees eligible to retire at age 55 in Uncertain workforce pipeline that is willing and prepared to work in, and/or lead, nonprofit organizations. Nearly half of young nonprofit professionals responding to a survey say they plan to leave the non profit sector (Stepping Up or Stepping Out: A Report on the Readiness of Next Generation NonProfit Leaders/Young Nonprofit Professionals Network) Projected Large Scale Executive Turnover ~ Three out of four executive directors plan to leave their jobs by 2011 (Ready to Lead? Next Generation Leaders Speak Out) Competition for Workers in Other (Aging) Industries who offer better pay and benefits ~ Projected labor shortages in federal and state government with nearly one half of federal and state employees eligible to retire at age 55 in Uncertain workforce pipeline that is willing and prepared to work in, and/or lead, nonprofit organizations. Nearly half of young nonprofit professionals responding to a survey say they plan to leave the non profit sector (Stepping Up or Stepping Out: A Report on the Readiness of Next Generation NonProfit Leaders/Young Nonprofit Professionals Network)

How are Employers Across the Country Responding? Businesses with shortages (real or predicted) are setting in motion strategies to retain older workers, groom and develop existing workers (talent management), or look at ways to recruit new workers Businesses with no perceived labor/talent shortages –Business as usual Businesses with no clue – no idea, no plans Businesses with shortages (real or predicted) are setting in motion strategies to retain older workers, groom and develop existing workers (talent management), or look at ways to recruit new workers Businesses with no perceived labor/talent shortages –Business as usual Businesses with no clue – no idea, no plans

What Actions are Employers Taking? Expand Their Recruitment Efforts To cope with potential labor shortages, employers are expanding their efforts to recruit and reach: Youth Women Laid-off workers Older workers Welfare recipients Veterans Persons with disabilities Ex-offenders To cope with potential labor shortages, employers are expanding their efforts to recruit and reach: Youth Women Laid-off workers Older workers Welfare recipients Veterans Persons with disabilities Ex-offenders

What Actions Are Employers Taking? Increased Emphasis on Retention In the SHRM Workplace Forecast, retention issues did not appear on HR professionals list of top 10 concerns. In 2006, an emphasis on developing retention strategies for current and future workers was the employment trend rated “most likely to have a major impact on the workplace.” This includes:  Retaining baby boomers  Retaining those likely to replace them In the SHRM Workplace Forecast, retention issues did not appear on HR professionals list of top 10 concerns. In 2006, an emphasis on developing retention strategies for current and future workers was the employment trend rated “most likely to have a major impact on the workplace.” This includes:  Retaining baby boomers  Retaining those likely to replace them

What Actions Are Employers Taking? Succession Plans and Flexible Workplaces 74% of employers said they have already or plan to develop succession plans and replacement charts 62% plan to provide flexible scheduling (job-sharing, tele-work, etc.) 50% of employers said they plan to provide opportunities for workers to transfer to jobs with reduced pay and responsibilities 49% plan to create or redesign positions that allow near-retirees to ease into retirement (phased retirement, bridge employment) (Source: SHRM Workplace Forecast 2006) 74% of employers said they have already or plan to develop succession plans and replacement charts 62% plan to provide flexible scheduling (job-sharing, tele-work, etc.) 50% of employers said they plan to provide opportunities for workers to transfer to jobs with reduced pay and responsibilities 49% plan to create or redesign positions that allow near-retirees to ease into retirement (phased retirement, bridge employment) (Source: SHRM Workplace Forecast 2006)

What Actions Are Employers Taking? Increased Emphasis on Training and Development 83% of employers surveyed by SHRM said they plan to invest more in training and development to boost skill levels of current employees, including both training in basic skills and specialized skills 84% of employers said they plan to provide continuous skills training for incumbent workers (to update workers’ skills and keep workers ahead of the curve) 71% of employers surveyed said they plan to make greater investments and make more use of e-learning 44% of employers surveyed said they plan to increase their involvement in local, state and national workforce readiness and development initiatives (Source: SHRM Workplace Forecast 2006) 83% of employers surveyed by SHRM said they plan to invest more in training and development to boost skill levels of current employees, including both training in basic skills and specialized skills 84% of employers said they plan to provide continuous skills training for incumbent workers (to update workers’ skills and keep workers ahead of the curve) 71% of employers surveyed said they plan to make greater investments and make more use of e-learning 44% of employers surveyed said they plan to increase their involvement in local, state and national workforce readiness and development initiatives (Source: SHRM Workplace Forecast 2006)