Our Workplaces: Challenges & Opportunities The Demographic Factor February 13, 2007.

transcript

Our Workplaces:

Challenges & Opportunities

The Demographic Factor

February 13, 2007

Today’s OutlineToday’s Outline• Demographics

• Current Labour Market

• Labour Market Crystal Ball

• Generations at Work

• The way forward

I.I. Demographics: Demographics:

Demographics Importance:Demographics Importance:

Demographics has been Demographics has been driving significant change driving significant change across a broad spectrum of across a broad spectrum of society in Canada and society in Canada and Manitoba.Manitoba.

Demographic “Truths”Demographic “Truths”

• Every year we get a year olderEvery year we get a year older

• Individuals tend to act their ageIndividuals tend to act their age

““Acting our Age” impacts:Acting our Age” impacts:

• ConsumersConsumers

• EmployeesEmployees

• ParticipantsParticipants

• VolunteersVolunteers

• CustomersCustomers

• EmployersEmployers

• PensionersPensioners

• VotersVoters

Labour Market Questions:Labour Market Questions:• Labour force composition?Labour force composition?

• Workers from where? Workers from where?

• Skill shortages? Blue versus White collar?Skill shortages? Blue versus White collar?

• Enough young workers?Enough young workers?

• Enough entrepreneurs?Enough entrepreneurs?

Winnipeg Free PressWinnipeg Free PressNovember 28, 2006November 28, 2006

Business Leader Survey: The labour shortage Business Leader Survey: The labour shortage in Manitoba has reached a crisis, with almost in Manitoba has reached a crisis, with almost three of four businesses having trouble finding three of four businesses having trouble finding enough skilled workersenough skilled workers

What is the greatest challenge facing your What is the greatest challenge facing your company for the next 12 months?company for the next 12 months?

Labour Shortages 41%Labour Shortages 41%Slow economy 11%Slow economy 11%Competition 9%Competition 9%Cash flow 9%Cash flow 9%

II.II. Current Labour Market: Current Labour Market:

Canada Labour Force Canada Labour Force 1976 To 20061976 To 2006

1976 1981 1986 1991 1996 2001 2006

Highest level in 31 years

Canada Participation RateCanada Participation Rate1976 To 20061976 To 2006

1976 1981 1986 1991 1996 2001 2006

Labour Force

Participation Rate

AgeAge

Canada OccupationsCanada OccupationsMedian Age - 2005Median Age - 2005

44.044.024.024.024.024.0Food & BeverageFood & Beverage24.024.027.027.026.026.0RetailRetail45.045.031.031.033.033.0Sales & ServiceSales & Service50.050.039.039.039.039.0Protective ServicesProtective Services42.042.035.035.037.037.0Construction TradesConstruction Trades46.046.037.037.042.042.0Health ProfessionalsHealth Professionals49.049.043.043.043.043.0Nurse Supervisors & R.N.’sNurse Supervisors & R.N.’s50.050.029.029.043.043.0AgricultureAgriculture52.052.048.048.048.048.0Senior ManagementSenior Management46.046.038.038.039.039.0All OccupationsAll Occupations

S-EmpS-EmpEmplEmplAllAllOccupationOccupation

Median Retirement Age: CanadaMedian Retirement Age: Canada

Private SectorPublic Sector

Self-Employed

Delay Retirement Trend

1976 1980 1984 1988 1992 1996 2000 2004

Canada Labour Force 55+Canada Labour Force 55+Percent Share – 1976 To 2006Percent Share – 1976 To 2006

1976 1981 1986 1991 1996 2001 2006

Highest level in 31 years

Canada Labour Force - RatioCanada Labour Force - Ratio15-24 to 55+ – 1976 to 200615-24 to 55+ – 1976 to 2006

1976 1981 1986 1991 1996 2001 2006

Females

Lowest ratio since 1976

““Crystal Crystal Ball”: Ball”:

Implications Implications ffor or

organizations organizations regarding regarding

future labour future labour market?market?

Labour Force : Crystal Ball (1)Labour Force : Crystal Ball (1)

• Labour Shortages will get worse without Labour Shortages will get worse without planning and strategy implementationplanning and strategy implementation

• Technology replaces workers Technology replaces workers

• More use of the InternetMore use of the Internet

Labour Force : Crystal Ball (3)Labour Force : Crystal Ball (3)

• Increased use of “temporary” foreign Increased use of “temporary” foreign workers workers

• More out-sourcing to off-shore More out-sourcing to off-shore companiescompanies

• More out-sourcing of systemsMore out-sourcing of systems

Labour Force : Crystal Ball (4)Labour Force : Crystal Ball (4)• Increased RetirementsIncreased Retirements

• Older workers will be urged to stay Older workers will be urged to stay longer longer

• Older workers will stay but often on their Older workers will stay but often on their termsterms

• More “ One-more-career” situationsMore “ One-more-career” situations

• Increased participation of Aboriginals Increased participation of Aboriginals and Immigrants in labour marketand Immigrants in labour market

Labour Force : Crystal Ball (5)Labour Force : Crystal Ball (5)• It will be a “Sellers Market” It will be a “Sellers Market”

“What youcan do for us”

“What wewill do

for you”

The New MessageThe New Message

Increased promotion by companies as a good place to workIncreased promotion by companies as a good place to work

Labour Force: Crystal Ball (7)Labour Force: Crystal Ball (7)

HR policies regarding the workplace will HR policies regarding the workplace will be critical:be critical:

– Working EnvironmentWorking Environment

– RecruitmentRecruitment

– RetentionRetention

The ability to attract and retain The ability to attract and retain younger people will be a younger people will be a competitive advantage.competitive advantage.

Immediate supervisors: most important people in workplaceImmediate supervisors: most important people in workplace

IV.IV. Generations at Work Generations at Work

The “Four GenerationsThe “Four Generations””

Now four different generations Now four different generations working side-by-side in the working side-by-side in the workplace.workplace.

Various ways to define Various ways to define generations – no consistencygenerations – no consistency

Who are the four generations?Who are the four generations?(sung to “Talkin’ ‘bout My Generation”)(sung to “Talkin’ ‘bout My Generation”)

MaturesMatures (Silent Generation) (Silent Generation)

BoomersBoomers (Me Generation) (Me Generation)

Older Boomer KidsOlder Boomer Kids (Generation X) (Generation X)

Younger Boomer KidsYounger Boomer Kids (Generation Y)(Generation Y)

• 60 and over60 and over

• 40 to 5940 to 59

• 27 to 3927 to 39

• 11 to 2611 to 26

Canada Canada Generations at Work - 2006Generations at Work - 2006

0 5 10 15 20 25 30 35 40 45 50

Percent Share

Y.B.K. (15 to 26)

O.B.K. (27 to 39)

Boomers (40 to 59)

Matures (60 and Over)

Boomers firmly in control

Generational differences:Generational differences:

Generations have different views, Generations have different views, expectations, attitudes, experiences and expectations, attitudes, experiences and upbringing. Have been shaped by unique upbringing. Have been shaped by unique set of historical events and influences.set of historical events and influences.

There are learnings for organizations.There are learnings for organizations.

Need to be cautious as generations Need to be cautious as generations overlap; based on mainstream individuals; overlap; based on mainstream individuals; and there is the danger of stereotyping.and there is the danger of stereotyping.

Goals versus ExecutionGoals versus Execution

Generational Spending Styles:Generational Spending Styles: (sung to Pink Floyd’s Money)(sung to Pink Floyd’s Money)

Adapted from: Generations at Work by Zemeke, Raines, Filipczak

Boomers

Buy now, pay later - with Buy now, pay later - with plasticplastic

Matures

Save and pay cash

Older Boomer Kids

Cautious, conservativeCautious, conservative

Younger Boomer Kids

Spend your parents’ money Spend your parents’ money as fast as you can.as fast as you can.

Have you heard Have you heard comments like these …comments like these …

“The kid wants a promotion after 6 months on the job.”

“So I told my boss, if you want

loyalty, buy a dog.”

“We have a problem. Pass the torch to this cohort and it will be doused in a day.”

I told her she could email me. She

responded, “Don’t you know about IM? Email

is for old people.”

“I will not attend a meeting after 5 p.m.

I have a life”

Generations at Work: Motivational Messages

Boomers

“You’re an important member of our team.”

“Your contribution is unique and important.”

Matures

“Your experience is respected here.”

“It’s valuable to the rest of us to hear what has and hasn’t worked in the past.”

Older Boomer Kids

“Do it your way.”

“There aren’t a lot of rules here.”

Younger Boomer Kids

“You’ll be working with other bright, creative people.”

“You can be a hero.”

Generations at Work: Training Beliefs

Baby Boomers

“Train’em too much and they’ll leave.”

Matures

“I learned it the hard way; you can too!”

Older Boomer Kids

“The more they learn, the more they stay.”

Younger Boomer Kids

“Continuous learning is a way of life.”

Generational Research: Randstad Generational Research: Randstad

Based on 2,900 U.S. interviews Based on 2,900 U.S. interviews conducted on-line in March 2006conducted on-line in March 2006

1,300 employers and 1,600 employees1,300 employers and 1,600 employees

Career DevelopmentCareer DevelopmentAspectsAspects

24% of Younger Boomer Kids’ say 24% of Younger Boomer Kids’ say PayPay IncreasesIncreases are extremely or very important are extremely or very important

Older Boomer Kids’ 31%; Boomers’ 33%; Older Boomer Kids’ 31%; Boomers’ 33%; Matures’ 40%Matures’ 40%

The Workplace:The Workplace:

24% of Younger Boomer Kids’ 24% of Younger Boomer Kids’ Socialize Socialize often with work mates. often with work mates.

Happiness in the WorkplaceHappiness in the Workplace::

21% of Younger Boomer Kids’ say it is 21% of Younger Boomer Kids’ say it is important to have important to have Collective commitment Collective commitment to objectives.to objectives.

The “Sick” Workplace:The “Sick” Workplace:

37% of Younger Boomer Kids’ 37% of Younger Boomer Kids’ TTake 4+ ake 4+ days off sick. days off sick.

The “Sick” Workplace:The “Sick” Workplace:

57% of Younger Boomer Kids’ take 57% of Younger Boomer Kids’ take Non-Non-sick absences because of Stress. sick absences because of Stress.

SurveySurvey MessagesMessages

• Younger generations need help Younger generations need help learning how to manage stresslearning how to manage stress

• They desire Work/Life balanceThey desire Work/Life balance

• May attempt to change workplace May attempt to change workplace polices and practicespolices and practices

Why do the younger workers Why do the younger workers matter?matter?

Manitoba Manitoba Generations at Work - 2017Generations at Work - 2017

0 5 10 15 20 25 30 35 40

Boomers (51 to 70)

O. B. K. (38 to 50)

Y. B. K. (22 to 37)

Millenniums (15 to 21)

Percent Share

Boomers will no longer be in control

Look who is the largest group!

VV. The way forward:. The way forward:

Change , Change

and more Change

Lew Platt*Lew Platt*

“Whatever made you successful in the past won’t necessarily make

you successful in the future.”

* former CEO of Hewlett Packard

Eric Hoffer*Eric Hoffer*“In times of drastic change, it is the

learners who inherit the future”.

“Those who have finished learning find themselves equipped to live in

a world that no longer exists”.

* U.S. social writer

The Future – Paradigm:The Future – Paradigm:

Partnerships and Working Partnerships and Working togethertogether

Key Take-AwaysKey Take-AwaysChallenges not insurmountableChallenges not insurmountable

Responsive to changeResponsive to change

Manage changeManage change

Spirit of innovationSpirit of innovation

Keep learningKeep learning

Transform learning environmentsTransform learning environments

Work togetherWork together

Another Key Take-Away :Another Key Take-Away :

Results of strategy?

Compensation & Training

Strategy: Hire unqualified employees with unstructured training initiatives

The AftermathThe Aftermath

Strategy – complete failure

Wilf FalkWilf FalkChief Statistician of ManitobaChief Statistician of ManitobaManitoba Bureau of StatisticsManitoba Bureau of Statistics

824 - 155 Carlton Street824 - 155 Carlton Street

Phone: 945-2988Phone: 945-2988Fax: 945-0695Fax: 945-0695

e-mail: wfalk@mbs.gov.mb.cae-mail: wfalk@mbs.gov.mb.ca

Thank You!

Our Workplaces: Challenges & Opportunities The Demographic Factor February 13, 2007.

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