Workforce Planning: Aging and Employment Module 1: Overview Barbara McIntosh, Ph.D., SPHR 2014 The development of this content was made possible through the support from a grant from the Alfred P. Sloan Foundation.

©SHRM 2014 Modules Overview I. Background 1.Overview: Age and Productive Activity 2.Discrimination, the Legal Environment and Social Policy 3.Labor Markets: Theory and Labor Force Participation Rates (LFPR) II. Employment 4.Employee Perspective 5.Employer Perspective 6.Staffing/Job Search Issues 7.Motivation and Performance 8.Productivity: Ability and Performance Management 9.HR Workplace Strategies and the Aging Workforce 2

©SHRM 2014 Modules Overview (continued) III. Financial Environment 10.Economic Considerations: Incentives and Disincentives to Work 11.The Federal Government Interface IV. Global Environment 12. International examples: Pressures and Lessons 3

©SHRM Texts Czaja, S. J., & Sharit, J. (Eds.). (2009). Aging and work: Issues and implications in a changing landscape. Baltimore, MD: Johns Hopkins Univer­sity Press. Shultz, K., & Adams, G. (2009). Aging and work in the 21st century. New York, NY: Psychology Press. Optional Cappelli, P., & Novelli, B. (2010). Managing the older worker. Boston, MA: Harvard Business Press. Rothwell, W. J., Sterns, H. L., Spokus, D., & Reaser, J. (2008). Working longer. New York, NY: AMACOM.

©SHRM Essential Resources Society for Human Resource Management (SHRM), AARP, Sloan Center on Aging & Work at Boston College, agingandwork.bc.edu agingandwork.bc.edu Gerontological Society of America, American Society on Aging (Business Forum on Aging), Association for Gerontology in Higher Education (AGHE), National Council on the Aging (NCOA), Chamber of Commerce, Institute for a Competitive Workforce, Urban Institute,

©SHRM The Current Pulse Government sources U.S. Department of Labor ( Women’s Bureau ( and the Bureau of Labor Statistics ( Governmental Accountability Office ( Administration on Aging ( etc. Clipping service Daily clipping service of where aging issues appear in the worldwide press: Current Awareness in Aging Research E-Clippings (

©SHRM Module 1: Learning Objectives At the end of this background module students will be able to: Frame strategic workforce planning in the context of age. Discuss the meaning of “age” and “older.” Understand the population demographics driving the U.S. economy. Explain the economic incentives and disincentives to work confronting aging Americans. Place paid work in the context of alternative forms of productive activity.

©SHRM 2014 Module 1: Background Define “age” and “older.” Why are we concerned? Overview of demographics/context. Forces extending work life. Forces restraining work/life extensions. Alternative types of productive activity. 8

©SHRM 2014 Definitions and Understandings What is “age”, “older”? >Perception. >Legal definition. >Behavior. >Cohorts. What is work? >Productive activity. 9

©SHRM 2014 Aging and Employment: Why Is HR Concerned? Shifting demographics. Predicted labor shortages (even with the economic downturn; industry-specific). Brain drain and organizational learning. Improvements in life expectancy mean more workers are productive in later life. The recession highlighted economic security; people are working longer and delaying retirement. Pensions and health care financing are of concern to both individuals and businesses. A multigenerational workplace means intergenerational issues and HR policies and practices must be examined. 10

©SHRM Demographics In 2000, there were 35 million Americans age 65 and older in the U.S., representing 1 in 8 Americans. By 2030, 1 in 5 (20%) will be 65 and older. The increase is due to the Baby Boom Generation; 76 million Americans were born between 1946 and The “old-old” (85 and older) is the fastest-growing cohort. Decreasing fertility: The “baby bust.” Diversity: In 2000, among those 65 and older, 5.7 million (16.3%) were part of racial or ethnic minority populations. This is projected to increase to 20.2 million (28%) by 2030.

©SHRM 2014 Number of Older Americans 12

©SHRM 2014 Percentage of Persons 65+ by State in

©SHRM 2014 Life Expectancy by Gender and Race in

©SHRM 2014 Life Expectancy by Gender and Race/Ethnicity 15

©SHRM Projected Demographic Shift Ratio of population ages 20 to 64 compared to age 65 and older. (Those working to those traditionally not working.) Source: Congressional Budget Office Based on Social Security Administration Data

©SHRM 2014 Old-Age Dependency Ratio: UN Projections

©SHRM Life Expectancy of 65-Year-Olds Over Time

©SHRM 2014 Population and Labor Force,

©SHRM 2014 Population and Labor Force,

©SHRM 2014 Population and Labor Force, Projected

©SHRM 2014 Labor Force by Age, 2000, 2010 and Projected

©SHRM 2014 Forces Extending Work Life Economic necessity (older employees). Psychosocial needs (older employees). Better jobs (older knowledge workers). HR policies (employers). >Flexibility (hours) availability (employers). >Increased work/life balance emphasis (older employees and employers). >Emerging health care plans dovetailed with Medicare. Government policy. >No mandatory retirement age. >Social Security. 23

©SHRM Forces Restraining an Extension of Work Life High unemployment. Slow-growth economy. Changing skill mix in demand. Youth culture. Hiring and retention practices. Increased labor costs. Labor union policy (in some cases). Intergenerational conflict. Negative stereotypes about older workers.

©SHRM Motivation for Productive Activity Habit. Physical needs (income). Psychosocial needs. Other?

©SHRM Productive Activity Domains There are multiple alternatives regarding time use; it is still productive activity. Domains: Paid work. Unpaid work at home. Unpaid work outside home. Source: Danigelis, N. L., & McIntosh, B. R. (1993). Resources and the productive activity of elders: Race and gender as contexts. Journal of Gerontology: Social Sciences, 48, S192-S203.

©SHRM Volunteering (Formal Unpaid Work Outside the Home) in the U.S. in million volunteered in % of Americans volunteer (24% of those 65+). 50 hours (median) per volunteer (86 hours for those 65+). Gender? Employment status? Education level? Types of organizations? Hours? Source: U.S. Department of Labor, Bureau of Labor Statistics. (2014, February 25). Volunteering in the United States, Economic News Release. Retrieved from

©SHRM Volunteering in the U.S. in 2013 (continued) Age group most likely to volunteer? Age group least likely to volunteer? Parental status? Education level? Persons age 65 and older?

©SHRM Volunteering in the U.S.: Types of Activities in 2013 Collecting, preparing, distributing food: 10.9% Fundraising: 10%. Tutoring or teaching: 9.8%. These activities vary by gender, age, ethnicity and marital status.

©SHRM The Bottom Line Demographics demand strategic workforce planning. Expectations about work in later life are changing. Aging Americans are engaged in many alternative forms of productive activity. The business environment must change in response to the aging workforce and changing needs.