©SHRM 2014 Workforce Planning: Aging and Employment Module 7: Motivation and Performance: Assessment, Relationships and Training 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 Module 7: Overview This module addresses three areas for managing productivity: Performance assessment. Managing relationships: the emerging multigenerational workforce. Training and retraining.

©SHRM 2014 Productivity Assessment: Expectations/Reality Is the aging workforce less productive? Evidence (current population survey data): >There has been a steady improvement in the earnings of older workers. >Today’s older adults are unusually well educated. >More productive workers stay in the workforce longer than less productive workers (earnings and education partially explain this). >Workers ages are more productive than average of younger workers (using standard measure of worker productivity—hourly wages). >Pay premium is currently between 10 and 20 percent of the average wage earned by younger workers. “There is little evidence that the aging workforce has hurt productivity” (Burtless, 2013). 3

©SHRM 2014 Assessing Individual Productivity Formal assessment = performance appraisal. Informal assessment = continuous feedback. Factors contributing to change in job/person fit: Organization-based:  Evolving organizational/job design—expanding demands and responsibilities.  Changing technologies. Interpersonal relationship-based (team dynamics). Individual-based:  Health.  Changes in work/leisure mix preferences.  Perceived changes in superior/co-worker relations. 4

©SHRM 2014 Productivity Change: Organization-Based Reasons Possible reasons: Changing job design and expectations. Expanding demands and responsibilities. Changing technologies. Possible remedies: Include employees in organization change efforts. Jointly redefine job description. Shift to different job/department. Discuss abilities and work/life balance. Train/retrain in new technologies. 5

©SHRM 2014 Productivity and Interpersonal Relationships Co-worker relationships: >Valued by older workers. >Trust. Teamwork: >Shared understanding. >Ability to communicate and be heard. >Mutual respect. >Experience, maturity and emotional intelligence. Possible remedies: Collaborative new staff orientation programs. Team development interventions and exercises. Multigenerational training. 6

©SHRM Multigenerational Workforce Drivers Labor shortages (not surplus). Knowledge-based work (not physical labor). Team dynamics (not hierarchy). Technology. Globalization.

©SHRM What Do We Know About Multigenerational Interactions? Interaction research literature: >Family-based. Parenting. Grand-parenting. >Relationship-based. Supervising and counseling children, young adults. Teaching (expert). Mentoring (sharing). >Work-based. Reporting structures. Nonpersonal goals and expectations.

©SHRM Stereotyping: A Caveat Stereotyping is the process of assigning traits to people based on their membership in a social category. There is wider variation within cohorts than among cohorts. Generalizations, however, offer insight, awareness and empathy. Stereotyping is important because of social cognition. The way we think about others is significant in how we see ourselves and our roles.

©SHRM Cohort Characteristics: All Valued, All Needed Veterans ( ) Outlook: practical. Work ethic: dedicated. View of authority: respectful. Leadership by hierarchy. Relationships: personal sacrifice. Perspective: civic. Baby Boomers ( ) Outlook: optimistic. Work ethic: driven. View of authority: love/hate. Leadership by consensus. Relationships: personal gratification. Perspective: team. Source: Raines, C. (2003). Connecting generations. Menlo Park, CA.: Crisp Publications.

©SHRM Generation X ( ) >Outlook: skeptical. >Work ethic: balanced. >View of authority: unimpressed. >Leadership by competence. >Relationships: reluctant to commit. >Perspective: self. Generation Y/Millennial (1986- ) >Outlook: hopeful. >Work ethic: ambitious. >View of authority: relaxed, polite. >Leadership by achievers. >Relationships: loyal. >Perspective: civic. Source: Raines, C. (2003). Connecting generations. Menlo Park, CA.: Crisp Publications.. Cohort Characteristics: All Valued, All Needed (continued)

©SHRM Messages that Shaped Them Veterans ( ) Make do or do without. Stay in line. Sacrifice. Be heroic. Consider the common good. Baby Boomers ( ) >Be anything you want to be. >Change the world. >Work well with others. >Live up to expectations. >Duck and cover.

©SHRM Messages that Shaped Them (continued) Generation X ( ) Don’t count on it. Being a hero does not count Get real. Survive—staying alive. Ask why. Generation Y/Millennial (1986- ) Be smart—you are special. Leave no one behind. Connect 24/7. Achieve now. Serve your community. Source: Raines, C. (2003). Connecting generations. Menlo Park, CA.: Crisp Publications.

©SHRM Social Identity Theory How we see ourselves as unique individuals defines, in part, our identity. Identity also comes from membership in different social groups (our social identity). For example: “I am a mother, wife and teacher. My family lives in California, and I am a skier.” Each of these groups carries different connotations.

©SHRM Multigenerational Workforce: Management Implications Manage organization culture: Respect all forms of diversity. Value others people’s contributions to the team. Show sensitivity to other perspectives. Be open to change. Monitor policies and practices regarding the treatment of others. Ensure top management is vocal in its support.

©SHRM Generational Awareness Complete an audit. Conduct training: Develop a value proposition for each generation. Review policies and practices in terms of preferences. Ensure transparency. Review makeup of the board of directors.

©SHRM Six Principles for Mixing Generations (C. Raines) 1.Initiate conversations about generations. 2.Ask people about their needs and preferences. 3.Offer options. 4.Personalize your style. 5.Build on strengths. 6.Pursue different perspectives.

©SHRM Generations Friendly? There is not just one type of person who is successful here. We form teams to consciously involve multiple perspectives. Employees are treated as customers. We talk about different viewpoints.

©SHRM Generations Friendly? (continued) We talk openly about what we want from our jobs. We have a minimum of bureaucracy. Our work atmosphere is relaxed and informal. We have a lot of fun together. We are known for being straightforward with each other.

©SHRM Generations Friendly? (continued) We expect the best from everyone. We treat them as if they have great things to offer and are motivated to do their best. We focus on retention every day. Our work assignments are broad, provide variety, and challenge and allow each employee to develop a range of skills. Adapted from Zemke, R., Raines, C., & Filipczak, B. (2000). Generations at work: Managing the clash of veterans, Boomers, Xers and Nexters in your workplace. New York, NY: Amacom.

©SHRM 2014 Assessing Individual Productivity Factors contributing to change in job/person fit: Organization-based:  Evolving organization/job design—expanding demands and responsibilities.  Changing technologies. Interpersonal relationship-based (team dynamics). Individual-based:  Health.  Changes in work/leisure mix preferences.  Access to new challenges, training and development. 21

©SHRM 2014 Individual Productivity Individual-based: Health. Changes in work/leisure mix preferences. Access to new challenges. Training/retraining. Development opportunities. 22

©SHRM Attitudes → Productivity → Training 1.Is there a culture of respect, support and cooperation across generations? 2.Are individuals—regardless of age—held accountable (meaningful performance appraisals)? 3.Do stereotypes unintentionally create barriers for older workers’ training and development? 4.Do older workers fail to take advantage of training and development opportunities because of social cognition and social identity?

©SHRM Productivity: Training and Development Upgrading and developing new skills is essential in all organizations. Training is a necessity, not a luxury. Older workers are not poor investments for training. Employers cannot make assumptions about retention and return on investment (ROI). Older workers provide value in institutional knowledge that employers frequently fail to consider when thinking only about external costs. “New challenges” is a primary determinant of employees’ intention to stay in an organization. The opportunity for new challenges is a retention tool.

©SHRM Motivation Drives Training

©SHRM Purpose and Outcome of Training Clarify the reason for training. >Remedial? >Refresher? >New skills? Set goals. >Organization’s objectives? >Value of performance increases compared with the cost of training. >Contribution to performance? >Measuring outcomes?

©SHRM 2014 Types of Training Provided in

©SHRM 2014 Training: Changing Focus 28

©SHRM Employers’ Perception of Selected Attributes by Career Stage

©SHRM Learning/Training Differences Well-learned procedures are maintained into old age, and there is little evidence to suggest that older workers are less productive than younger workers (Charness & Czaja, 2006; Czaja, 2001; Fisk et al., 2004). Acquiring new skills: Older adults take longer to complete training and demonstrated less mastery of the training material (Kubeck, 1996).

©SHRM Learning/Training Differences (continued) Older adults take longer to perform new tasks. Older adults require more help and hands-on practice. Training techniques do not vary much with age in large meta-analysis. Bottom line: Not enough research has been done in this area.

©SHRM 2014 Limited Access? The number of hours of employer-sponsored training received declines with age, with employees older than age 55 participating in nine hours of training per year, in contrast to 37 hours per year for employees ages 25 to 34 (USDOL, 2008). Other research has found that employers are more likely to provide training and cross-training for younger workers than for later-career employees, which may reflect employer age biases (Dobbs, Healey, Kane, Mak, & McNamara, 2007). 32

©SHRM Employer Investment Considerations Investing in training older workers: >Con: Older workers may be close to retirement, reducing the return on investment. >Pro: A key way to retain an aging worker is to provide growth and challenge. Other investment considerations that support additional training: >Experiential capital. >Social capital: professional and client/customer networks.

©SHRM 2014 Savvy Employers Include Training in Bridging the Knowledge and Experience Gap 34

©SHRM Managing Productivity Summary This module addressed three areas for managing productivity: 1.Performance assessment. 2.Managing relationships: The emerging multigenerational workforce. 3. Training and retraining. Each area offers multiple opportunities for HR to address older worker issues.