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SHRM Survey Findings:
SHRM-AARP Strategic Workforce Planning


                                   April 9, 2012
Definitions


 Strategic workforce planning assessment: Evaluating an organization’s current and future critical talent
  needs using workforce modeling and scenario planning to identify potential skills gaps and talent shortages.

 Older workers: Employees at an organization that are age 50 or older.

 Younger workers: Employees at an organization that are age 31 and younger.




                                                                          SHRM-AARP Strategic Workforce Planning ©SHRM 2012   2
Key Findings

 Have organizations conducted strategic workforce planning assessments to evaluate their current and
  future critical talent needs? Two-fifths of organizations (40%) have conducted strategic workforce planning
  assessments to identify their future workforce needs for the next 5 years. About one-third of organizations
  have identified their potential skills gaps for the next 5 years (36%). Twenty-nine percent of organizations
  have analyzed the impact of workers age 50 and over leaving their organizations.

 Are organizations preparing for a potential shortage of talent when older workers begin to retire in
  greater numbers and leave the workforce? Although many organizations are at the initial stages of the
  preparation process, there has been a slight increase in awareness of a potential shortage of younger
  workers with the requisite skills needed to replace older workers who are retiring. More than one-quarter
  (27%) of organizations indicated they are becoming aware of the issue, an increase of nine percentage
  points from 2010 (18%). Thirty-nine percent of organizations are beginning to examine internal policies and
  management practices to address this issue (e.g., succession planning, phased retirement, etc.), showing no
  difference from 2010. Additionally, roughly one-fifth of organizations (18%) indicated that no changes were
  necessary after their evaluation, a decrease of 12 percentage points from 2010 (30%).

 How much of an issue are the potential losses of talent for organizations and industries as older workers
  retire or leave their organizations over the next decade? Approximately one-half (46%) of organizations
  believe that potential loss of talent over the next decade is a potential problem for their organization while
  27% indicated that it is not a concern. As older workers exit the workforce over the next decade, 39% of
  organizations believe that this will cause potential problems for their industry; however, approximately one-
  quarter (24%) do not foresee problems for their industry.



                                                                           SHRM-AARP Strategic Workforce Planning ©SHRM 2012   3
Key Findings


 Which basic and applied skills do older workers have an advantage in compared with younger workers?
  Approximately one-half of organizations (51%) indicated that writing in English (grammar, spelling, etc.) was
  the top basic skill observed among older workers that is not readily seen among younger workers. Fifty-two
  percent of organizations reported professionalism/work ethic as the top applied skill that younger workers
  are less likely to exhibit.

 Which steps are organizations taking to retain and recruit older workers in order to prepare for the
  potential skill gaps that may occur as younger workers enter and older workers exit the workforce? Nearly
  one-half of organizations (45%) have increased training and cross-training efforts. Roughly one-third (38%)
  of organizations have also developed succession plans and/or hired retired employees as consultants or
  temporary workers (30%). Organizations are also offering flexible work arrangements (27%) and offering
  part-time positions to older workers (24%).




                                                                           SHRM-AARP Strategic Workforce Planning ©SHRM 2012   4
Has your organization conducted a strategic workforce planning assessment to…?




        Identify future workforce
          needs over the next 5                                                             40%
                  years?



       Identify potential skills
     gaps over the next 5 years?                                                       36%



          Analyze the impact of
         workers age 50+ leaving                                                29%
           your organization?




Note: n = 421-423. Percentages shown indicate only the respondents who answered “Yes” to this question.

                                                                                                          SHRM-AARP Strategic Workforce Planning ©SHRM 2012   5
Has your organization conducted a strategic workforce planning assessment to…?



Comparisons by organization sector
Publicly owned for-profit organizations are more likely than privately owned for-profit organizations to have conducted a strategic
workforce planning assessment to identify potential skills gaps over the next 5 years.

                                                        Comparisons by Organization Sector

                    Publicly owned for-profit (50%)                        >                 Privately owned for-profit (30%)



 Comparisons by organization staff size
 Organizations with 25,000 or more employees are more likely than organizations with 1 to 2,499 employees to have conducted a
 strategic workforce planning assessment to identify future workforce needs over the next 5 years.

                                                      Comparisons by Organization Staff Size

                                                                                               1 to 99 employees (25%)
                   25,000 or more employees (66%)                         >                100 to 499 employees (36%)
                                                                                          500 to 2,499 employees (36%)




Note: Only statistically significant differences are shown.


                                                                                           SHRM-AARP Strategic Workforce Planning ©SHRM 2012   6
Has your organization conducted a strategic workforce planning assessment to…?



Comparisons by organization staff size (continued)
Organizations with 25,000 or more employees are more likely than organizations with 1 to 2,499 employees to have conducted a
strategic workforce planning assessment to identify potential skills gaps over the next 5 years.

                                                      Comparisons by Organization Staff Size

                                                                                                1 to 99 employees (23%)
                  25,000 or more employees (63%)                          >                100 to 499 employees (33%)
                                                                                          500 to 2,499 employees (33%)



Organizations with 2,500 or more employees are more likely than organizations with 1 to 499 employees to have conducted a
strategic workforce planning assessment to analyze the impact of older workers leaving the organization.

                                                      Comparisons by Organization Staff Size

                 2,500 to 24,999 employees (47%)                                                1 to 99 employees (22%)
                                                                          >
                 25,000 or more employees (49%)                                                100 to 499 employees (22%)




Note: Only statistically significant differences are shown.


                                                                                           SHRM-AARP Strategic Workforce Planning ©SHRM 2012   7
There may be a shortage of younger workers with the skills and qualifications
  necessary to replace the older workers who are preparing to retire. Which of the
  following best describes your organization’s preparation for this change?



          Beginning to examine internal                                                39%
        policies and management practices                                              39%



          Just becoming aware of the issue                                      27%
                                                                         18%

       Have examined our workforce and
                                                                         18%
       determined that no changes in our                                         30%
       policies and practices are necessary

         Have proposed specific policy and                    7%
          management practice changes                       4%


        Have implemented specific policies                                                                     2012 (n = 326)
                                                             5%
           and management practices                          5%                                                2010 (n = 337)


        Have agreed internally on a plan to
                                                            4%
         change policies and management                     4%
                     practices



Note: Respondents who answered “Don’t know” were excluded from this analysis.

                                                                                             SHRM-AARP Strategic Workforce Planning ©SHRM 2012   8
Overall, how would you describe your organization’s and industry’s potential loss
  of talent as a result of the possibility of the older workers retiring, or leaving the
  organization for other reasons, over the next decade?



                                       It is a crisis             It is a problem   It is a potential               It is not a
                                                                                         problem                     problem
    Organization                             1%                           26%             46%                           27%
    (2012; n = 407)
    Organization                             2%                           20%             45%                           33%
    (2010; n = 369)




                                       It is a crisis             It is a problem   It is a potential               It is not a
                                                                                         problem                     problem
    Industry                                 7%                           30%             39%                           24%
    (2012; n = 374)
    Industry                                 3%                           29%             47%                           21%
    (2010; n = 317)




Note: Respondents who answered “Don’t know” were excluded from this analysis.

                                                                                        SHRM-AARP Strategic Workforce Planning ©SHRM 2012   9
In your opinion, what is/are the greatest basic skills gap between older workers
and younger workers?


         Basic skills for which older workers are perceived as having the                                                       Percentage
                                     advantage

  Writing in English (grammar, spelling, etc.)                                                                                       51%
  Technical (computer, engineering, mechanical, etc.)                                                                                33%
  Mathematics (computation)                                                                                                          16%
  Reading comprehension (in English)                                                                                                 13%
  English language (spoken)                                                                                                          12%
  Government/economics                                                                                                               10%
  History/geography                                                                                                                   6%
  Science                                                                                                                             5%
  Foreign languages                                                                                                                   3%
  Humanities/arts                                                                                                                     1%
  Other                                                                                                                               9%
Note: n = 421. Respondents who answered “Don’t know” were excluded from this analysis. Respondents were asked to select their top two choices.
Percentages do not equal 100% due to multiple response options.
                                                                                                      SHRM-AARP Strategic Workforce Planning ©SHRM 2012 10
In your opinion, what is/are the greatest basic skills gap between older workers
 and younger workers?


Comparisons by organization sector
Government agencies are more likely than privately owned and publicly owned for-profit organizations to believe that
government/economics is the greatest basic skills gap that younger workers have when compared with older workers.


                                                        Comparisons by Organization Sector

                                                                                         Privately owned for-profit (8%)
                     Government agencies (23%)                           >
                                                                                         Publicly owned for-profit (5%)




Note: Only statistically significant differences are shown.


                                                                                             SHRM-AARP Strategic Workforce Planning ©SHRM 2012 11
In your opinion, what is/are the greatest applied skills gap between older workers
and younger workers?

     Applied skills for which older workers are perceived as having the                                                       Percentage
                                  advantage
 Professionalism/work ethic                                                                                                         52%
 Critical thinking/problem solving                                                                                                  27%
 Written communications                                                                                                             16%
 Lifelong learning/self-direction                                                                                                   16%
 Leadership                                                                                                                         15%
 Oral communications                                                                                                                12%
 Ethics/social responsibility                                                                                                       12%
 Information technology application                                                                                                 11%
 Teamwork/collaboration                                                                                                             10%
 Creativity/innovation                                                                                                               4%
 Diversity                                                                                                                           2%
 Other                                                                                                                               2%

Note: n = 421. Respondents who answered “Don’t know” were excluded from this analysis. Respondents were asked to select their top two choices.
Percentages do not equal 100% due to multiple response options.
                                                                                                      SHRM-AARP Strategic Workforce Planning ©SHRM 2012 12
Has your organization taken any of the steps below to prepare for potential skill
gaps and/or retain and recruit older workers?


                                                                                    Yes                  No
  Increased training and cross-training efforts                                    45%                  55%
  Developed succession plans                                                       38%                  62%
  Hired retired employees as consultants or temporary workers                      30%                  70%
  Offered flexible work arrangements (e.g., job sharing, telework, etc.)           27%                  73%
  Offered part-time positions to older workers                                     24%                  76%
  Offered retirement planning programs                                             23%                  77%
  Developed processes to capture institutional memory/organizational
                                                                                   17%                  83%
  knowledge from employees close to retirement
  Increased recruiting efforts to replace retiring employees                       17%                  83%
  Offered financial planning programs                                              16%                  84%
  Offered wellness programs that are attractive to older workers                   14%                  86%
  Provided training to upgrade skills of older workers                             13%                  87%
  Encouraged older workers to work past traditional retirement age                 12%                  88%

n = 415
                                                                    SHRM-AARP Strategic Workforce Planning ©SHRM 2012 13
Has your organization taken any of the steps below to prepare for potential skill
gaps and/or retain and recruit older workers? (continued)


                                                                                   Yes                  No
  Tailored benefits offerings to encourage older workers to stay with
                                                                                  11%                  89%
  organization
  Increased automated processes (e.g., use of robotics)                            9%                  91%
  Created new roles within your organization, specifically designed to
                                                                                   9%                  91%
  bridge a skills or knowledge gap
  Provided opportunities for older workers to transfer to jobs with
                                                                                   8%                  92%
  reduced pay and responsibilities
  Asked older workers for feedback via survey or other mechanism
                                                                                   4%                  96%
  about what would encourage them to stay with the organization
  Established alternative career tracks for older workers                          3%                  97%
  Other                                                                            5%                  95%




n = 415
                                                                   SHRM-AARP Strategic Workforce Planning ©SHRM 2012 14
Has your organization taken any of the steps below to prepare for potential skill
 gaps and/or retain and recruit older workers?


Comparisons by organization sector
Publicly owned for-profit organizations are more likely than privately owned for-profit, nonprofit and government organizations to
have developed succession plans in preparation for potential skills gaps that may occur as younger workers enter and older
workers exit the workforce.

                                                        Comparison by Organization Sector

                                                                                            Privately owned for-profit (37%)
                    Publicly owned for-profit (56%)                       >                         Nonprofit (31%)
                                                                                                  Government (26%)

Government agencies are more likely than publicly owned for-profit organizations to have developed processes to capture
institutional memory/organizational knowledge from employees close to retirement to retain and recruit older workers in
preparation for potential skills gaps that may occur as younger workers enter and older workers exit the workforce.
                                                        Comparison by Organization Sector
                           Government (32%)                               >                  Publicly owned for-profit (9%)

Government agencies are more likely than publicly owned for-profit organizations to have encouraged older workers to work past
traditional retirement age in preparation for potential skills gaps that may occur as younger workers enter and older workers exit
the workforce.
.
                                                        Comparison by Organization Sector

                             Government (26%)                             >                  Publicly owned for-profit (7%)
Note: Only statistically significant differences are shown.
                                                                                            SHRM-AARP Strategic Workforce Planning ©SHRM 2012 15
Has your organization taken any of the steps below to prepare for potential skill
gaps and/or retain and recruit older workers?


Comparisons by organization sector (continued)
Government agencies are more likely than publicly owned for-profit or privately owned for-profit organizations to have hired retired
employees as consultants or temporary workers in preparation for potential skills gaps that may occur as younger workers enter
and older workers exit the workforce.
.
                                                       Comparisons by Organization Sector
                                                                                       Publicly owned for-profit (24%)
                           Government (51%)                             >
                                                                                       Privately owned for-profit (22%)




Note: Only statistically significant differences are shown.
                                                                                        SHRM-AARP Strategic Workforce Planning ©SHRM 2012 16
Has your organization taken any of the steps below to prepare for potential skill
 gaps and/or retain and recruit older workers?


Comparisons by organization staff size
Organizations with 25,000 or more employees are more likely than organizations with 1 to 2,499 employees to identify future
workforce needs over the next 5 years in preparation for potential skills gaps that may occur as younger workers enter and older
workers exit the workforce.

                                                    Comparisons by Organization Staff Size
                                                                                              1 to 99 employees (25%)
                25,000 or more employees (66%)                          >                100 to 499 employees (36%)
                                                                                        500 to 2,499 employees (36%)


Organizations with 2,500 or more employees are more likely than organizations with 1 to 499 employees to have developed
succession plans in preparation for potential skills gaps that may occur as younger workers enter and older workers exit the
workforce.

                                                     Comparisons by Organization Staff Size
                2,500 to 24,999 employees (58%)                                                1 to 99 employees (27%)
                                                                        >
                25,000 or more employees (66%)                                               100 to 499 employees (31%)




Note: Only statistically significant differences are shown.
                                                                                         SHRM-AARP Strategic Workforce Planning ©SHRM 2012 17
Has your organization taken any of the steps below to prepare for potential skill
 gaps and/or retain and recruit older workers?


Comparisons by organization size (continued)
Organizations with 25,000 or more employees are more likely than organizations with 1 to 499 employees to have increased
recruiting efforts to replace retiring employees in preparation for potential skills gaps that may occur as younger workers enter
and older workers exit the workforce.

                                                         Comparisons by Organization Size
                                                                                               1 to 99 employees (12%)
                25,000 or more employees (37%)                           >
                                                                                             100 to 499 employees (14%)

Organizations with 500 to 24,999 employees are more likely than organizations with 1 to 99 employees to have hired retired
employees as consultants or temporary workers in preparation for potential skills gaps that may occur as younger workers enter
and older workers exit the workforce.

                                                         Comparisons by Organization Size
                 500 to 2,499 employees (38%)
                                                                         >                     1 to 99 employees (16%)
               2,500 to 24,999 employees (42%)

Organizations with 500 to 2,499 employees are more likely than organizations with 1 to 99 employees to have offered financial
planning programs in preparation for potential skills gaps that may occur as younger workers enter and older workers exit the
workforce.

                                                         Comparisons by Organization Size

                  500 to 2,499 employees (23%)                           >                      1 to 99 employees (7%)

Note: Only statistically significant differences are shown.
                                                                                            SHRM-AARP Strategic Workforce Planning ©SHRM 2012 18
How effective has the step(s) your organization has taken been in preparing for
potential skill gaps and/or retaining and recruiting older workers?



                                                                                    Too soon           Not at all          Somewhat     Very
                                                                                       to              effective            effective effective
                                                                                    evaluate
 Developed succession plans (n = 157)                                                   27%                  3%                 52%                 17%
 Created new roles within your organization, specifically
                                                                                        26%                  6%                 37%                 31%
 designed to bridge a skills or knowledge gap (n = 35)
 Increased training and cross-training efforts (n = 179)                                24%                  1%                 50%                 26%
 Developed processes to capture institutional
 memory/organizational knowledge from employees                                         22%                  1%                 56%                 21%
 close to retirement (n = 68)
 Offered wellness programs that are attractive to older
                                                                                        17%                  5%                 53%                 24%
 workers (n = 58)
 Offered financial planning programs (n = 66)                                           17%                  3%                 52%                 29%
 Increased recruiting efforts to replace retiring
                                                                                        15%                  4%                 62%                 18%
 employees (n = 71)
 Offered part-time positions to older workers (n = 99)                                  15%                  3%                 38%                 43%


Note: Response options were only rated by respondents who indicated that their organization had taken the specified step to prepare for potential skill gaps
and/or retain and recruit older workers. Percentages may not equal 100% due to rounding.
                                                                                                          SHRM-AARP Strategic Workforce Planning ©SHRM 2012 19
How effective has the step(s) your organization has taken been in preparing for
potential skill gaps and/or retaining and recruiting older workers? (continued)


                                                                                    Too soon           Not at all          Somewhat     Very
                                                                                       to              effective            effective effective
                                                                                    evaluate
 Offered flexible work arrangements (e.g., job sharing,
                                                                                        14%                  2%                 50%                 35%
 telework, etc.) (n = 111)
 Tailored benefits offerings to encourage older workers
                                                                                        11%                  7%                 55%                 27%
 to stay with organization (n = 44)
 Increased automated processes (e.g., use of robotics)
                                                                                        11%                  0%                 63%                 26%
 (n = 35)
 Provided training to upgrade skills of older workers
                                                                                        11%                  2%                 64%                 23%
 (n = 53)
 Offered retirement planning programs (n = 95)                                          11%                  7%                 51%                 32%
 Provided opportunities for older workers to transfer to
                                                                                         9%                  9%                 59%                 22%
 jobs with reduced pay and responsibilities (n = 32)
 Encouraged older workers to work past traditional
                                                                                         8%                  6%                 52%                 34%
 retirement age (n = 50)
 Hired retired employees as consultants or temporary
                                                                                         4%                  4%                 49%                 43%
 workers (n = 123)

Note: Response options were only rated by respondents who indicated that their organization had taken the specified step to prepare for potential skill gaps
and/or retain and recruit older workers. Percentages may not equal 100% due to rounding.
                                                                                                          SHRM-AARP Strategic Workforce Planning ©SHRM 2012 20
To the best of your knowledge, what percent of employees, full-time and part-
time, at your work location are age 50 or older?




                    1%
            None
                    1%


                                        27%
        1% to 19%
                                           32%


                                                     44%
       20% to 39%                                      47%


                                      24%
      40 % to 59%
                                17%
                                                                                          2012 (n = 404)
                                                                                          2010 (n = 363)
                       4%
      60% or more     3%




                                                               SHRM-AARP Strategic Workforce Planning ©SHRM 2012 21
To the best of your knowledge, what percent of employees, full-time and part-
 time, at your work location are age 50 or older?


Comparisons by organization sector
Privately owned for-profit organizations are more likely than government agencies to have 1% to 19% of their staff age 50 or older.

                                                       Comparisons by Organization Sector

                  Privately owned for-profit (33%)                       >                        Government (9%)


Government agencies are more likely than privately owned for-profit organizations to have 40% to 59% of their staff age 50 or older.


                                                       Comparisons by Organization Sector

                         Government (40%)                               >                   Privately owned for-profit (19%)



Comparisons by organization staff size
Organizations with 100 to 499 employees are more likely than organizations with 2,500 to 24,999 employees to have 1% to 19% of
their staff age 50 or older.

                                                     Comparisons by Organization Staff Size

                      100 to 499 employees (34%)                         >             2,500 to 24,999 employees (12%)


Note: Only statistically significant differences are shown.
                                                                                         SHRM-AARP Strategic Workforce Planning ©SHRM 2012 22
Demographics: Organization Industry


                                                                                                                  Percentage
Manufacturing                                                                                                         19%
Health care and social assistance                                                                                     18%
Professional, scientific and technical services                                                                       18%
Public administration                                                                                                 12%
Finance and insurance                                                                                                 10%
Education services                                                                                                     8%
Transportation and warehousing                                                                                         8%
Administrative and support and waste management and remediation services                                               6%
Information, publishing industries                                                                                     5%
Utilities                                                                                                              5%
Accommodation and food services                                                                                        4%
Construction                                                                                                           4%


Note: n = 399. Percentages may not equal 100% due to multiple response options.


                                                                                  SHRM-AARP Strategic Workforce Planning ©SHRM 2012 23
Demographics: Organization Industry (continued)


                                                                                                                  Percentage
 Religious, grant-making, civic, professional and similar organizations                                                4%
 Retail trade                                                                                                          4%
 Repair and maintenance                                                                                                3%
 Wholesale trade                                                                                                       3%
 Agriculture, forestry, fishing and hunting                                                                            2%
 Arts, entertainment and recreation                                                                                    2%
 Mining                                                                                                                2%
 Real estate and rental and leasing                                                                                    2%
 Personal and laundry services                                                                                         1%
 Other                                                                                                                 9%




Note: n = 399. Percentages may not equal 100% due to multiple response options.



                                                                                  SHRM-AARP Strategic Workforce Planning ©SHRM 2012 24
Demographics: Organization Sector




 Privately owned for-profit
        organization                                                   46%


  Publicly owned for-profit
                                                                 19%
        organization


     Nonprofit organization                                      20%


           Government sector                               12%



                                Other              4%



 Note: n = 398. Percentages do not equal 100% due to rounding.

                                                                        SHRM-AARP Strategic Workforce Planning ©SHRM 2012 25
Demographics: Organization Staff Size




              1 to 99 employees        19%


     100 to 499 employees                      33%


   500 to 2,499 employees                24%


 2,500 to 24,999 employees         15%


 25,000 or more employees         9%



    n = 390




                                                     SHRM-AARP Strategic Workforce Planning ©SHRM 2012 26
Demographics: Other


Does your organization have U.S.-based           Is your organization a single-unit organization or a multi-
operations (business units) only or does it      unit organization?
operate multinationally?
                                                 Single-unit organization: An organization in
U.S.-based operations only                70%    which the location and the organization are                    32%
                                                 one and the same
Multinational operations                  30%
                                                 Multi-unit organization: An organization that
n = 407                                                                                                         68%
                                                 has more than one location
                                                 n = 404



Which HR department/function was responded      For multi-unit organizations, are HR policies and practices
about throughout this survey?                   determined by the multi-unit headquarters, by each work
                                                location or both?
Corporate (companywide)                   69%
Business unit/division                    17%   Multi-unit headquarters determines HR policies
                                                                                                                50%
                                                and practices
Facility/location                         14%
                                                Each work location determines HR policies and
n = 282                                                                                                          3%
                                                practices

                                                A combination of both the work location and
                                                the multi-unit headquarters determine HR                        48%
                                                policies and practices
                                                Note: n = 282. Percentages do not equal 100% due to rounding.



                                                                            SHRM-AARP Strategic Workforce Planning ©SHRM 2012 27
SHRM-AARP Strategic Workforce Planning

     Methodology

             Response rate = 15%

             Sample composed of 430 randomly selected HR professionals from SHRM’s membership

             Margin of error +/- 5%

             Survey fielded February 13, 2012 – March 12, 2012


                                       For more survey findings, visit www.shrm.org/surveys
                                     Follow us on Twitter: http://twitter.com/SHRM_Research


Project leader:
Christina Lee, SHRM Research
Project contributors:
Jean Setzfand, vice president, Financial Security, AARP
Ed Redfern, Jr., senior Issue specialist, Financial Security, AARP
Mark Schmit, Ph.D., SPHR, vice president, SHRM Research
Fred Emmert, Senior Speechwriter & Speakers Bureau Manager, SHRM
Evren Esen, manager, SHRM Survey Research Center




                                                                                   SHRM-AARP Strategic Workforce Planning ©SHRM 2012 28

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Shrm aarp 2012 strategic wp-final

  • 1. SHRM Survey Findings: SHRM-AARP Strategic Workforce Planning April 9, 2012
  • 2. Definitions  Strategic workforce planning assessment: Evaluating an organization’s current and future critical talent needs using workforce modeling and scenario planning to identify potential skills gaps and talent shortages.  Older workers: Employees at an organization that are age 50 or older.  Younger workers: Employees at an organization that are age 31 and younger. SHRM-AARP Strategic Workforce Planning ©SHRM 2012 2
  • 3. Key Findings  Have organizations conducted strategic workforce planning assessments to evaluate their current and future critical talent needs? Two-fifths of organizations (40%) have conducted strategic workforce planning assessments to identify their future workforce needs for the next 5 years. About one-third of organizations have identified their potential skills gaps for the next 5 years (36%). Twenty-nine percent of organizations have analyzed the impact of workers age 50 and over leaving their organizations.  Are organizations preparing for a potential shortage of talent when older workers begin to retire in greater numbers and leave the workforce? Although many organizations are at the initial stages of the preparation process, there has been a slight increase in awareness of a potential shortage of younger workers with the requisite skills needed to replace older workers who are retiring. More than one-quarter (27%) of organizations indicated they are becoming aware of the issue, an increase of nine percentage points from 2010 (18%). Thirty-nine percent of organizations are beginning to examine internal policies and management practices to address this issue (e.g., succession planning, phased retirement, etc.), showing no difference from 2010. Additionally, roughly one-fifth of organizations (18%) indicated that no changes were necessary after their evaluation, a decrease of 12 percentage points from 2010 (30%).  How much of an issue are the potential losses of talent for organizations and industries as older workers retire or leave their organizations over the next decade? Approximately one-half (46%) of organizations believe that potential loss of talent over the next decade is a potential problem for their organization while 27% indicated that it is not a concern. As older workers exit the workforce over the next decade, 39% of organizations believe that this will cause potential problems for their industry; however, approximately one- quarter (24%) do not foresee problems for their industry. SHRM-AARP Strategic Workforce Planning ©SHRM 2012 3
  • 4. Key Findings  Which basic and applied skills do older workers have an advantage in compared with younger workers? Approximately one-half of organizations (51%) indicated that writing in English (grammar, spelling, etc.) was the top basic skill observed among older workers that is not readily seen among younger workers. Fifty-two percent of organizations reported professionalism/work ethic as the top applied skill that younger workers are less likely to exhibit.  Which steps are organizations taking to retain and recruit older workers in order to prepare for the potential skill gaps that may occur as younger workers enter and older workers exit the workforce? Nearly one-half of organizations (45%) have increased training and cross-training efforts. Roughly one-third (38%) of organizations have also developed succession plans and/or hired retired employees as consultants or temporary workers (30%). Organizations are also offering flexible work arrangements (27%) and offering part-time positions to older workers (24%). SHRM-AARP Strategic Workforce Planning ©SHRM 2012 4
  • 5. Has your organization conducted a strategic workforce planning assessment to…? Identify future workforce needs over the next 5 40% years? Identify potential skills gaps over the next 5 years? 36% Analyze the impact of workers age 50+ leaving 29% your organization? Note: n = 421-423. Percentages shown indicate only the respondents who answered “Yes” to this question. SHRM-AARP Strategic Workforce Planning ©SHRM 2012 5
  • 6. Has your organization conducted a strategic workforce planning assessment to…? Comparisons by organization sector Publicly owned for-profit organizations are more likely than privately owned for-profit organizations to have conducted a strategic workforce planning assessment to identify potential skills gaps over the next 5 years. Comparisons by Organization Sector Publicly owned for-profit (50%) > Privately owned for-profit (30%) Comparisons by organization staff size Organizations with 25,000 or more employees are more likely than organizations with 1 to 2,499 employees to have conducted a strategic workforce planning assessment to identify future workforce needs over the next 5 years. Comparisons by Organization Staff Size 1 to 99 employees (25%) 25,000 or more employees (66%) > 100 to 499 employees (36%) 500 to 2,499 employees (36%) Note: Only statistically significant differences are shown. SHRM-AARP Strategic Workforce Planning ©SHRM 2012 6
  • 7. Has your organization conducted a strategic workforce planning assessment to…? Comparisons by organization staff size (continued) Organizations with 25,000 or more employees are more likely than organizations with 1 to 2,499 employees to have conducted a strategic workforce planning assessment to identify potential skills gaps over the next 5 years. Comparisons by Organization Staff Size 1 to 99 employees (23%) 25,000 or more employees (63%) > 100 to 499 employees (33%) 500 to 2,499 employees (33%) Organizations with 2,500 or more employees are more likely than organizations with 1 to 499 employees to have conducted a strategic workforce planning assessment to analyze the impact of older workers leaving the organization. Comparisons by Organization Staff Size 2,500 to 24,999 employees (47%) 1 to 99 employees (22%) > 25,000 or more employees (49%) 100 to 499 employees (22%) Note: Only statistically significant differences are shown. SHRM-AARP Strategic Workforce Planning ©SHRM 2012 7
  • 8. There may be a shortage of younger workers with the skills and qualifications necessary to replace the older workers who are preparing to retire. Which of the following best describes your organization’s preparation for this change? Beginning to examine internal 39% policies and management practices 39% Just becoming aware of the issue 27% 18% Have examined our workforce and 18% determined that no changes in our 30% policies and practices are necessary Have proposed specific policy and 7% management practice changes 4% Have implemented specific policies 2012 (n = 326) 5% and management practices 5% 2010 (n = 337) Have agreed internally on a plan to 4% change policies and management 4% practices Note: Respondents who answered “Don’t know” were excluded from this analysis. SHRM-AARP Strategic Workforce Planning ©SHRM 2012 8
  • 9. Overall, how would you describe your organization’s and industry’s potential loss of talent as a result of the possibility of the older workers retiring, or leaving the organization for other reasons, over the next decade? It is a crisis It is a problem It is a potential It is not a problem problem Organization 1% 26% 46% 27% (2012; n = 407) Organization 2% 20% 45% 33% (2010; n = 369) It is a crisis It is a problem It is a potential It is not a problem problem Industry 7% 30% 39% 24% (2012; n = 374) Industry 3% 29% 47% 21% (2010; n = 317) Note: Respondents who answered “Don’t know” were excluded from this analysis. SHRM-AARP Strategic Workforce Planning ©SHRM 2012 9
  • 10. In your opinion, what is/are the greatest basic skills gap between older workers and younger workers? Basic skills for which older workers are perceived as having the Percentage advantage Writing in English (grammar, spelling, etc.) 51% Technical (computer, engineering, mechanical, etc.) 33% Mathematics (computation) 16% Reading comprehension (in English) 13% English language (spoken) 12% Government/economics 10% History/geography 6% Science 5% Foreign languages 3% Humanities/arts 1% Other 9% Note: n = 421. Respondents who answered “Don’t know” were excluded from this analysis. Respondents were asked to select their top two choices. Percentages do not equal 100% due to multiple response options. SHRM-AARP Strategic Workforce Planning ©SHRM 2012 10
  • 11. In your opinion, what is/are the greatest basic skills gap between older workers and younger workers? Comparisons by organization sector Government agencies are more likely than privately owned and publicly owned for-profit organizations to believe that government/economics is the greatest basic skills gap that younger workers have when compared with older workers. Comparisons by Organization Sector Privately owned for-profit (8%) Government agencies (23%) > Publicly owned for-profit (5%) Note: Only statistically significant differences are shown. SHRM-AARP Strategic Workforce Planning ©SHRM 2012 11
  • 12. In your opinion, what is/are the greatest applied skills gap between older workers and younger workers? Applied skills for which older workers are perceived as having the Percentage advantage Professionalism/work ethic 52% Critical thinking/problem solving 27% Written communications 16% Lifelong learning/self-direction 16% Leadership 15% Oral communications 12% Ethics/social responsibility 12% Information technology application 11% Teamwork/collaboration 10% Creativity/innovation 4% Diversity 2% Other 2% Note: n = 421. Respondents who answered “Don’t know” were excluded from this analysis. Respondents were asked to select their top two choices. Percentages do not equal 100% due to multiple response options. SHRM-AARP Strategic Workforce Planning ©SHRM 2012 12
  • 13. Has your organization taken any of the steps below to prepare for potential skill gaps and/or retain and recruit older workers? Yes No Increased training and cross-training efforts 45% 55% Developed succession plans 38% 62% Hired retired employees as consultants or temporary workers 30% 70% Offered flexible work arrangements (e.g., job sharing, telework, etc.) 27% 73% Offered part-time positions to older workers 24% 76% Offered retirement planning programs 23% 77% Developed processes to capture institutional memory/organizational 17% 83% knowledge from employees close to retirement Increased recruiting efforts to replace retiring employees 17% 83% Offered financial planning programs 16% 84% Offered wellness programs that are attractive to older workers 14% 86% Provided training to upgrade skills of older workers 13% 87% Encouraged older workers to work past traditional retirement age 12% 88% n = 415 SHRM-AARP Strategic Workforce Planning ©SHRM 2012 13
  • 14. Has your organization taken any of the steps below to prepare for potential skill gaps and/or retain and recruit older workers? (continued) Yes No Tailored benefits offerings to encourage older workers to stay with 11% 89% organization Increased automated processes (e.g., use of robotics) 9% 91% Created new roles within your organization, specifically designed to 9% 91% bridge a skills or knowledge gap Provided opportunities for older workers to transfer to jobs with 8% 92% reduced pay and responsibilities Asked older workers for feedback via survey or other mechanism 4% 96% about what would encourage them to stay with the organization Established alternative career tracks for older workers 3% 97% Other 5% 95% n = 415 SHRM-AARP Strategic Workforce Planning ©SHRM 2012 14
  • 15. Has your organization taken any of the steps below to prepare for potential skill gaps and/or retain and recruit older workers? Comparisons by organization sector Publicly owned for-profit organizations are more likely than privately owned for-profit, nonprofit and government organizations to have developed succession plans in preparation for potential skills gaps that may occur as younger workers enter and older workers exit the workforce. Comparison by Organization Sector Privately owned for-profit (37%) Publicly owned for-profit (56%) > Nonprofit (31%) Government (26%) Government agencies are more likely than publicly owned for-profit organizations to have developed processes to capture institutional memory/organizational knowledge from employees close to retirement to retain and recruit older workers in preparation for potential skills gaps that may occur as younger workers enter and older workers exit the workforce. Comparison by Organization Sector Government (32%) > Publicly owned for-profit (9%) Government agencies are more likely than publicly owned for-profit organizations to have encouraged older workers to work past traditional retirement age in preparation for potential skills gaps that may occur as younger workers enter and older workers exit the workforce. . Comparison by Organization Sector Government (26%) > Publicly owned for-profit (7%) Note: Only statistically significant differences are shown. SHRM-AARP Strategic Workforce Planning ©SHRM 2012 15
  • 16. Has your organization taken any of the steps below to prepare for potential skill gaps and/or retain and recruit older workers? Comparisons by organization sector (continued) Government agencies are more likely than publicly owned for-profit or privately owned for-profit organizations to have hired retired employees as consultants or temporary workers in preparation for potential skills gaps that may occur as younger workers enter and older workers exit the workforce. . Comparisons by Organization Sector Publicly owned for-profit (24%) Government (51%) > Privately owned for-profit (22%) Note: Only statistically significant differences are shown. SHRM-AARP Strategic Workforce Planning ©SHRM 2012 16
  • 17. Has your organization taken any of the steps below to prepare for potential skill gaps and/or retain and recruit older workers? Comparisons by organization staff size Organizations with 25,000 or more employees are more likely than organizations with 1 to 2,499 employees to identify future workforce needs over the next 5 years in preparation for potential skills gaps that may occur as younger workers enter and older workers exit the workforce. Comparisons by Organization Staff Size 1 to 99 employees (25%) 25,000 or more employees (66%) > 100 to 499 employees (36%) 500 to 2,499 employees (36%) Organizations with 2,500 or more employees are more likely than organizations with 1 to 499 employees to have developed succession plans in preparation for potential skills gaps that may occur as younger workers enter and older workers exit the workforce. Comparisons by Organization Staff Size 2,500 to 24,999 employees (58%) 1 to 99 employees (27%) > 25,000 or more employees (66%) 100 to 499 employees (31%) Note: Only statistically significant differences are shown. SHRM-AARP Strategic Workforce Planning ©SHRM 2012 17
  • 18. Has your organization taken any of the steps below to prepare for potential skill gaps and/or retain and recruit older workers? Comparisons by organization size (continued) Organizations with 25,000 or more employees are more likely than organizations with 1 to 499 employees to have increased recruiting efforts to replace retiring employees in preparation for potential skills gaps that may occur as younger workers enter and older workers exit the workforce. Comparisons by Organization Size 1 to 99 employees (12%) 25,000 or more employees (37%) > 100 to 499 employees (14%) Organizations with 500 to 24,999 employees are more likely than organizations with 1 to 99 employees to have hired retired employees as consultants or temporary workers in preparation for potential skills gaps that may occur as younger workers enter and older workers exit the workforce. Comparisons by Organization Size 500 to 2,499 employees (38%) > 1 to 99 employees (16%) 2,500 to 24,999 employees (42%) Organizations with 500 to 2,499 employees are more likely than organizations with 1 to 99 employees to have offered financial planning programs in preparation for potential skills gaps that may occur as younger workers enter and older workers exit the workforce. Comparisons by Organization Size 500 to 2,499 employees (23%) > 1 to 99 employees (7%) Note: Only statistically significant differences are shown. SHRM-AARP Strategic Workforce Planning ©SHRM 2012 18
  • 19. How effective has the step(s) your organization has taken been in preparing for potential skill gaps and/or retaining and recruiting older workers? Too soon Not at all Somewhat Very to effective effective effective evaluate Developed succession plans (n = 157) 27% 3% 52% 17% Created new roles within your organization, specifically 26% 6% 37% 31% designed to bridge a skills or knowledge gap (n = 35) Increased training and cross-training efforts (n = 179) 24% 1% 50% 26% Developed processes to capture institutional memory/organizational knowledge from employees 22% 1% 56% 21% close to retirement (n = 68) Offered wellness programs that are attractive to older 17% 5% 53% 24% workers (n = 58) Offered financial planning programs (n = 66) 17% 3% 52% 29% Increased recruiting efforts to replace retiring 15% 4% 62% 18% employees (n = 71) Offered part-time positions to older workers (n = 99) 15% 3% 38% 43% Note: Response options were only rated by respondents who indicated that their organization had taken the specified step to prepare for potential skill gaps and/or retain and recruit older workers. Percentages may not equal 100% due to rounding. SHRM-AARP Strategic Workforce Planning ©SHRM 2012 19
  • 20. How effective has the step(s) your organization has taken been in preparing for potential skill gaps and/or retaining and recruiting older workers? (continued) Too soon Not at all Somewhat Very to effective effective effective evaluate Offered flexible work arrangements (e.g., job sharing, 14% 2% 50% 35% telework, etc.) (n = 111) Tailored benefits offerings to encourage older workers 11% 7% 55% 27% to stay with organization (n = 44) Increased automated processes (e.g., use of robotics) 11% 0% 63% 26% (n = 35) Provided training to upgrade skills of older workers 11% 2% 64% 23% (n = 53) Offered retirement planning programs (n = 95) 11% 7% 51% 32% Provided opportunities for older workers to transfer to 9% 9% 59% 22% jobs with reduced pay and responsibilities (n = 32) Encouraged older workers to work past traditional 8% 6% 52% 34% retirement age (n = 50) Hired retired employees as consultants or temporary 4% 4% 49% 43% workers (n = 123) Note: Response options were only rated by respondents who indicated that their organization had taken the specified step to prepare for potential skill gaps and/or retain and recruit older workers. Percentages may not equal 100% due to rounding. SHRM-AARP Strategic Workforce Planning ©SHRM 2012 20
  • 21. To the best of your knowledge, what percent of employees, full-time and part- time, at your work location are age 50 or older? 1% None 1% 27% 1% to 19% 32% 44% 20% to 39% 47% 24% 40 % to 59% 17% 2012 (n = 404) 2010 (n = 363) 4% 60% or more 3% SHRM-AARP Strategic Workforce Planning ©SHRM 2012 21
  • 22. To the best of your knowledge, what percent of employees, full-time and part- time, at your work location are age 50 or older? Comparisons by organization sector Privately owned for-profit organizations are more likely than government agencies to have 1% to 19% of their staff age 50 or older. Comparisons by Organization Sector Privately owned for-profit (33%) > Government (9%) Government agencies are more likely than privately owned for-profit organizations to have 40% to 59% of their staff age 50 or older. Comparisons by Organization Sector Government (40%) > Privately owned for-profit (19%) Comparisons by organization staff size Organizations with 100 to 499 employees are more likely than organizations with 2,500 to 24,999 employees to have 1% to 19% of their staff age 50 or older. Comparisons by Organization Staff Size 100 to 499 employees (34%) > 2,500 to 24,999 employees (12%) Note: Only statistically significant differences are shown. SHRM-AARP Strategic Workforce Planning ©SHRM 2012 22
  • 23. Demographics: Organization Industry Percentage Manufacturing 19% Health care and social assistance 18% Professional, scientific and technical services 18% Public administration 12% Finance and insurance 10% Education services 8% Transportation and warehousing 8% Administrative and support and waste management and remediation services 6% Information, publishing industries 5% Utilities 5% Accommodation and food services 4% Construction 4% Note: n = 399. Percentages may not equal 100% due to multiple response options. SHRM-AARP Strategic Workforce Planning ©SHRM 2012 23
  • 24. Demographics: Organization Industry (continued) Percentage Religious, grant-making, civic, professional and similar organizations 4% Retail trade 4% Repair and maintenance 3% Wholesale trade 3% Agriculture, forestry, fishing and hunting 2% Arts, entertainment and recreation 2% Mining 2% Real estate and rental and leasing 2% Personal and laundry services 1% Other 9% Note: n = 399. Percentages may not equal 100% due to multiple response options. SHRM-AARP Strategic Workforce Planning ©SHRM 2012 24
  • 25. Demographics: Organization Sector Privately owned for-profit organization 46% Publicly owned for-profit 19% organization Nonprofit organization 20% Government sector 12% Other 4% Note: n = 398. Percentages do not equal 100% due to rounding. SHRM-AARP Strategic Workforce Planning ©SHRM 2012 25
  • 26. Demographics: Organization Staff Size 1 to 99 employees 19% 100 to 499 employees 33% 500 to 2,499 employees 24% 2,500 to 24,999 employees 15% 25,000 or more employees 9% n = 390 SHRM-AARP Strategic Workforce Planning ©SHRM 2012 26
  • 27. Demographics: Other Does your organization have U.S.-based Is your organization a single-unit organization or a multi- operations (business units) only or does it unit organization? operate multinationally? Single-unit organization: An organization in U.S.-based operations only 70% which the location and the organization are 32% one and the same Multinational operations 30% Multi-unit organization: An organization that n = 407 68% has more than one location n = 404 Which HR department/function was responded For multi-unit organizations, are HR policies and practices about throughout this survey? determined by the multi-unit headquarters, by each work location or both? Corporate (companywide) 69% Business unit/division 17% Multi-unit headquarters determines HR policies 50% and practices Facility/location 14% Each work location determines HR policies and n = 282 3% practices A combination of both the work location and the multi-unit headquarters determine HR 48% policies and practices Note: n = 282. Percentages do not equal 100% due to rounding. SHRM-AARP Strategic Workforce Planning ©SHRM 2012 27
  • 28. SHRM-AARP Strategic Workforce Planning Methodology  Response rate = 15%  Sample composed of 430 randomly selected HR professionals from SHRM’s membership  Margin of error +/- 5%  Survey fielded February 13, 2012 – March 12, 2012 For more survey findings, visit www.shrm.org/surveys Follow us on Twitter: http://twitter.com/SHRM_Research Project leader: Christina Lee, SHRM Research Project contributors: Jean Setzfand, vice president, Financial Security, AARP Ed Redfern, Jr., senior Issue specialist, Financial Security, AARP Mark Schmit, Ph.D., SPHR, vice president, SHRM Research Fred Emmert, Senior Speechwriter & Speakers Bureau Manager, SHRM Evren Esen, manager, SHRM Survey Research Center SHRM-AARP Strategic Workforce Planning ©SHRM 2012 28