Boomers How Do We Help Them Stay

Engaged?KVRHA January 2015

Jim Peacock Peak-Careers Consulting

Peak-Careers Consulting• Owner, Peak-Careers Consulting since 2000

• Career Development Facilitator (CDF) course for national certification

• Online seminars for career counselors / practitioners professional development (Boomers / Transitions / Ex-Offenders / Creating Luck)

• Career counseling / coaching Boomers to reinvent themselves

• Expertise is working with and understanding Boomers motivations & issues

Transitioning Boomers Network

• Group of people who work with Boomers

• Health field - physical trainers & nutrition

• Elder Law

• Career coaches

• Financial Consultants

• Health profession

• State level is focused on 80+ year old issues

• National Demographics

• Maine Demographics

• What are the forces driving the issues?

• What the heck are Boomers thinking?

• What are the opportunities for companies?

• Questions and possibly answers

What I think is going to happen today

We are not what “old

people” were.People now have an entire

second adult life time!

This is a new developmental stage.

Is a 20 + year retirement practical?

Affordable? or

desirable?

Demographics

Boomers• 1946-1964 making them 51 - 69 years old

• “Early Boomers” 1946-55 = 60 - 69 y.o.

• Larger than ANY previous age cohort

• 10,000 Boomers per day turning 65 until 2020

• Life expectancy at age 65 is +/-83

• Growth of labor force 2006- 2016 for age 55+. Grows 47% (25 up to 37 million)

• Growth of labor force age 16-54. Grows LESS THAN 1%!

Maine Demographics

The population in their peak years of labor force participation is declining rapidly.

Pro

ject

ed P

opul

atio

n C

hang

e 20

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-30,000

-20,000

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-19

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4

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4

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55-6

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65-6

9

70-7

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Labor Force Participation Rate 2012 (left scale)Labor Force Participation Rate 2000 to 2007 Average (left scale)Projected Population Change (right scale)

MAINE: DATA We can no longer count on a natural increase in population…

Nat

ural

Cha

nge

-2,000

0

2,000

4,000

6,000

8,000

10,000

12,000

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10,000

12,000

14,000

16,000

18,000

20,000

22,000

24,000

1950

1955

1960

1965

1970

1975

1980

1985

1990

1995

2000

2005

2010

Natural Change (right scale)Births (left scale)Deaths (left scale)

…so we will need to increase levels of net in-migration to maintain a stable population and workforce.

AND / OR entice Boomers to stay in the labor market.

Net

Cha

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from

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ear

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Natural ChangeNet Migration

Maine’s total labor force is 700,000 In 2012, there were 411,000 people aged 45-64 and most

of this group will be “leavers” in next 2 decades.

There are 302,000 residents under age 20 “entrants”

GAP: 109,000!

Companies need to find ways to encourage Boomers to stay in the workforce longer.

Maine Workforce Outlook 2012-22

The report projects only one of every seven job openings between 2012 and 2022 will come from growth in an industry. That is, the state will gain about 2,600 jobs from business growth and expansion, compared with 15,200 jobs to replace current workers.

The Nature of Work Work attributes valued in growing and declining occupations

differ.

www.maine.gov/labor/cwri/outlook.html

Converging Forces

Four converging forces• Increased life expectancy, which has produced a retirement that can

last 20 years or more

• Elimination of guaranteed pensions for most workers, shifting the burden for funding retirement from employers to individual retirees

• Recent economic uncertainty, which has been a wake-up call for many people that some additional income can make retirement far more financially sustainable

• Re-envisioning later life, as boomers seek greater purpose, stimulation, social engagement, and fulfillment in retirement

**Merrill Lynch / Age Wave Research

What are these Boomers thinking?

Ted Talk

"Baby boomers are once again redefining a life stage, this time retirement," observed Andy Sieg, Head of Global Wealth & Retirement Solutions for Bank of America Merrill Lynch.

"As we live longer and healthier lives, older Americans are continuing to work at levels not seen since the 1960s--often doing so in new, more flexible and fulfilling ways. This new research shows that people will increasingly be seeking work during this stage of their lives, moving in and out of the workplace well into their 70s and beyond."

• Workers planning to retire after 65 has jumped from 11 to 37%

• In past, expect 3/4 fully retired w/in 4-5 years of 65th birthday

• Expect less than half to actually fully retire

• U.S. residents ages 55 to 70—who are still working or seeking work—the average age at which respondents expect to stop working for pay is about 70, and that goes up to almost 76 for those ages 66 to 70. DeLong & Associates / MetLife

Why do they want to work?• Many are healthier

• More highly educated (white collar jobs)

• 37% college graduates is largest of any age group of men

• if include 2 year degrees 43%

• 2009 1 in 4 Boomer families had 1 or more of their children living with them. (mostly adults)*

• Grandchildren factor ~80% of Early Boomers

*from 2010 MetLife Report on Early Boomers

Why do they want to work? • Economic downturn in 2008 caused:

• loss of jobs

• decline in investments

• psychological legacy (risk averse) = less willing to give up income stream

• **Social Security benefits penalty if retire before 66 y.o.

• They often have financial obligations (want work)

• Only 14% of workers confident will have enough money to retire comfortably (historic low)

Values• Want to help grand children’s education

• 83% of retirees stated working during retirement helps stay more youthful

• 66% stated if they don’t work their physical and mental abilities decline faster

• Traditional Values: Today’s retirees are defining happiness not in terms of dollars but in terms of new experiences, peace of mind, helping family and making a difference.

…yesterday’s retirement had only two phases—decades of work followed by a permanent transition into decades of leisure

--a new generation of working retirees is redrawing the retirement roadmap to include four different phases:

(1) Pre-retirement,

(2) Career Intermission,

(3) Reengagement, and

(4) Leisure.

“Self-employed” may be the new“can’t-find-a-job”

• 42% of respondents ages 66 to 70 report they are self-employed

• Much higher than the 28% of 61- to 65-year-olds

• Even higher than the19% of 55- to 60-year-olds who reported this.

Do you know what I want to be when I am old?

I want to be myself and that may involve work.

• GROUP 1: Look at this from the older persons perspective and identify what does this sentence mean for them and the employer.

• GROUP 2: Look at this from the employers perspective and identify what this means for the company and the older employees.

A Merrill Lynch Retirement Study, conducted in partnership with Age Wave

Caring Contributors (33%)Seek to give back to their communities or worthwhile causes

• Four out of 10 work for a nonprofit

• More than a quarter are unpaid volunteers

• Are highly satisfied with work (75%)

• One out of four volunteered in a related field before retiring

• Actively prepared to work in retirement

• 50% feel financially prepared for retirement

• 53% female, 47% male

• Preferred retirement soundtrack: The Best Is Yet Come (Artist: Frank Sinatra)

What are some things a company could do to retain or attract

“Caring Contributors”?

Caring ContributorsAARP Award Winning Company: Perkins Coie LLP

• Encourages mature workers to pursue employee training and development programs

• Utilizes outside experts to help employees develop a plan

• Mentor / Mentee programs (Huge gap from new hire to institutional knowledge)

• Multi-generations in workplace can be a positive. Mentor new employees to company culture and “soft skills”

• Alumni network (remember many people take time off and then return)

• These folks want to give back

Caring Contributors cont’d

AARP Award Winning Company: Brevard County School Board

• Encourage working on team projects to share / gain knowledge

• Formal mentoring programs

• Accommodations for all (Universal design)

• Offer consulting or contract work

MEI Technologies

• Social events for all ages

• Newsletter

Merrill Lynch / Age WaveWhat pre-retirees expect to miss most

• 38% Reliable income

• 17% Social connections

• 16% Employer Health Insurance

• 16% Having purpose and work goals

• 12% Mental Stimulation

What retirees actually miss the most

• 34% Social connections

• 29% Reliable income

• 19% Having purpose and work goals

• 12% Mental Stimulation

• 7% Employer Health Insurance

Life Balancers 24% Primarily want to keep working for the workplace friendships and social connections

• However, definitely need the extra money

• Seek work that is fun and not stressful, and often work part-time

• Have high levels of work satisfaction (67%)

• Took few steps to prepare for retirement work

• 42% feel financially prepared for retirement

• 50% female, 50% male

• Preferred retirement soundtrack: Take It Easy (Artist: The Eagles)

Merrill Lynch report

Was the “sandwich generation”

i.e. taking care of parents & children

Now the “family cube” generation

supporting side to side as well as up and down. 52% Adult children 35% Grand children 16% Parents (in-law)

10% SiblingMerrill Lynch / Age Wave Report

What are some things a company could do to retain or attract “Life-

Balancer’s”?

Life BalancerCianbro

20 plus hours / week employees: tuition reimbursement, in house classroom training, online training, certification classes and reimbursement of professional membership

dues. Benefits / Health medical coverage.

Flextime, compressed work schedules, job sharing, telecommuting, part-time

Stays in touch with retirees, offers temp work, consulting, contract work, telecommuting.

Lifetime balancers• CMP’s / On Target: Brought back Boomers for short term

training on safety / OSHA

• Summer? Winter? Shorter flexible hours weekly?

• Some of these folks need Dental, Vision, or Prescription benefits. Why not create a special plan for them?

• Phased retirement options (continue working after retirement date on reduced schedule) *Start in Pre-Retirement stage?

• Retirees can fill temporary positions easily

Life Balancer’s

• Allow additional time off for care-giving. Principal Financial Group calls it “Working Caregiver Leave”

• George Mason University provides 32 hours of leave annually for caregiving

Opportunity

Merrill Lynch / Age Wave recommendations

• Help the pre-retirees understand critical issues

• Help them define goals and what is most important to them in retirement

• Knowledge of trade-offs they must consider

• Ability to examine various scenarios and potential outcomes of decisions

• A plan of action that puts all resources to work for them

• Ability to correct course

AARP 2009 Encore Opportunity Awards

3. Moving valued staff members into encore roles is a strategy to retain them.

The National Center for Appropriate Technology created an “adjunct” employee option, through which former employees may return when needed - keeping invaluable expertise available to the organization.

Multigenerational workplace• Millennials - highest level of social concern &

responsibility since 1966 (very similar to Boomers)

• Millennials - have an entrepreneurial spirit that many Boomers are now embracing

• Gen X - willing to work hard but want more work-life balance (again, much like Boomers)

• Boomers - willing to learn technology when done respectfully and in low stress environment

AARP 2009 Encore Opportunity Awards

5. A multigenerational staff enhances the work environment.

Tapping encore talent creates a multigenerational work force in which experienced staff members serve as mentors, role models, and even surrogate family for younger staff and clients alike. At Gwinnett Count Sheriff’s Dept, encore workers coach younger staff and often become parental figures to inmates.

–Dawn Trapp, executive director Civitan (used to hire predominantly college students but turnover

was high).

“Workers over 50 bring compassion, patience, and a real desire to

connect and build lasting relationships.”

Advantages of hiring Boomers / Recent Retirees

• Often already have their own insurance

• They can be flexible

• They may be able to help you fill in on busy times / cycles

• Can serve as mentors / role models

Five things you can do now• Recognize the issues

• Challenge your beliefs & attitudes regarding age

• Help your organization understand the risks and develop practical strategies and action plans

• Ensure your employment practices are age-friendly

• Talk with older workers about the contribution they want to make and what would make your company a great place to continue working.

Geoff Pearman Partners in Change - New Zealand

Questions / Comments?Jim Peacock

Peak-Careers Consulting

JimPeacock@Peak-Careers.com

www.Peak-Careers.com

207-649-9761

Resources• Ted Talks: Jane Fonda http://www.ted.com/talks/jane_fonda_life_s_third_act

• Merrill Lynch Retirement Study, conducted in partnership with Age Wave (Ken Dychtwald) www.wealthmanagement.ml.com

• Life Planning Network www.lifeplanningnetwork.org

• Encore.org See examples of companies here. http://www.encore.org/files/PDFs/CV_EOA.pdf

• Maine Workforce Outlook 2012-22. MDOL Center for Workforce Research and Information http://www.maine.gov/labor/cwri/outlook.html

• David DeLong & Associates & MetLife. "Buddy, Can You Spare a Job." study. It is free for anyone who is interested. http://bit.ly/DeLong-BuddyCanYouSpareAJobStudy

• AARP.org Best employers http://www.aarp.org/work/2013-aarp-best-employers/cianbro-corporation-aarp-best-employers/

• Peak-Careers.com 5 week online seminar focused on working with Boomers

The four pillars of legacy

1. Values and life lessons (74%)

2. Instructions and wishes to be fulfilled (47%)

3. Personal possessions of emotional value (43%)

4. Financial assets or real estate (32%)

Merrill Lynch / Age Wave

Boomers earn certificates “The nature of work increasingly demands higher levels of literacy and more sophisticated

technology competencies,” the report states, noting that 68 of the 100 fastest-growing occupations will require some kind of

degree or credential after high school. Challenge: Are there Boomers out there who would like to re-invent themselves and be

willing to do short term training?

https://www.documentcloud.org/documents/1385960-maine-workforce-outlook-2012-to-2022.html#document/p6

http://www.maine.gov/labor/cwri/outlook.html