Archive for category Research

prepared for what?

The recent Mercer Superannuation Sentiment Index indicates a dip in retirement confidence given the impact of the GFC on funds. But it is this statement that really interests me:

Only 11% of working Australians feel they are thoroughly prepared for retirement.

This figure correlates with the research that SageCo has conducted over the last five years. Over 5000 employees have been through organisationally sponsored ‘retirement preparedness’ programs with us. While financial reasons weigh heavy on decisions about retirement, we think there are fundamental questions which need examining before you can adequately address the financial concerns.

  1. What does retirement look like for me?
  2. Do I really want to retire?
  3. What do I really want to do?
  4. How much money do I really need to do what I want to do?
  5. How could I continue working in some way?
  6. What are the (often unspoken) expectations of my family and friends about my retirement?
  7. How could I improve my health?

These are tough enough questions at any age. Even when ‘retirement’ may seem a long way off, having a plan in mind while you have earning capacity is so important. Not having a plan weighs heavily on mature employees.

Organisations who support their ‘late-career’ employees in retirement preparedness will reduce the risk of retirement loss and increase productivity.

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New age, different stage

Welcome to 2010! As we round the corner on a brand new year, social commentator and futurist Mark McCrindle has released what he sees as the Top Ten Trends that will define this decade. Many of these have a significant impact on Australia’s demographics and our favourite topic – mature age workers.

By 2020 our population will hit 27M with 1 in 5 aged 60+. An acceleration in baby boomer exits from the workforce will see the beginning of the ‘age wave hitting Australia’ says McCrindle.

The stage on which organisations perform is changing radically. When the closing curtain comes down on this decade, how many will have thrived rather than simply survived? According to McCrindle, this will require a return to skill development, training, longer job training and stability.

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Graying workforce requires a different approach

This from Pew Research. American statistics – but we are seeing the same in Australia.

Our take: your workforce of the future is actually working with you today; they just want to work differently. What are you doing about it?

The American work force is graying — and not just because the American population itself is graying. Older adults are staying in the labor force longer, and younger adults are staying out of it longer. Both trends took shape about two decades ago. Both have intensified during the current recession. Both are expected to continue after the economy recovers. One reason, according to a Pew Research survey, is that older workers value not just the economics benefits of work, but the psychic and social rewards.

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The Generation Myth

Some interesting research from AIM SA regarding the Generation Gap Myth. I’ve never felt comfortable with ‘generation gap’ as a reason for team or workplace dysfunction;  it’s more a conversation gap than a generation gap. The finding that ‘similar work ethics are at the core of a strong workplace’ particuarly resonates with me.

What are the key messages for employers?

1. Not all employees are the same, yet it’s not about age
The generation gap does not exist in the workplace as far as this research is concerned. Many respondents were even angry at an insinuation of an age difference. There are four unique segments of employees, yet age and other demographics are of little, if any, relevance. While the four segments revealed are very interesting in terms of unique psychographics and attitudes, they are compiled of people with diverse demographics. Similar work ethics are at the core of a strong workplace.
2. Management should stop shifting the blame
The 2007 research (of Gen X / GenY) concluded that “management needs to take a long hard look at themselves” and that “attempting to shift the blame is viewed as unacceptable”. A consistent response emerged in 2009. While other factors may come in to play, the single biggest reason for staff departures from an employer was poor management. Universally across all segments, a respectful and trustworthy management were demanded in addition to a reasonable standard of output and workload.
3. Communication with staff is a weakness
Only second to strong management was the need for good staff communication. This was viewed as essential across all employees, yet typically a weakness across the research. Even the happy and loyal staff often viewed communication with staff as a weakness. At times they were not kept informed of what was occurring and other times considered the lack of
communication linked to disrespect.
4. Job satisfaction does not equal loyalty
Even the happiest staff are not necessarily loyal. There is little difference between age groups and segments of employees with regard to loyalty. While 87% of employees are happy, 64% are likely to be with the same employer in three years. Consistent with the 2007 research amongst Gen X and Y staff, the 2009 research of all employees revealed only around 5-10% of employees as extremely happy and extremely likely to be with the same employer in three years. In saying this, it does appear that staff aged 40-59 are slightly more loyal. Staff aged 60+ appear to be the least loyal, although this could at least partly be attributed to a lower level of perceived job security and retirement plans.
5. Older staff are not that different
Staff aged 60+ appear to be the least loyal, although this could at least partly be attributed to a lower level of perceived job security. Most have an enthusiastic attitude to work and are
not dissimilar to younger employees. They are often seeking professional development and challenges as are other employees. For many, they now have an invigorated relationship to work and may be seeking a second, third or subsequent career change. There is generally an eagerness to work within a team of differing ages. They prefer managers aged 38-60.

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Different strokes for different folks

I was up with the sparrows this morning to attend the SA CEDA trustees breakfast to look at the findings of the latest Hudson 2020 report entitled: Talent Tightrope – managing the workplace through the downturn. I suspect that for most, this report confirms much of what we already know. There was one alarming stat for me:

“Fewer than one in five employers report that they are tailoring their approaches by generation (19%), and only a third indicated that ideally they would tailor their approaches, though they currently lack the resources to do so.”

My co-director Alison often says, “Conversations come free!”. A starting point for all employers is to have individual conversations with employees from all generations to work out the drivers for retention and attraction. Focus on your critical resource areas. Focus on employees who hold core business knowledge that you can’t afford to lose. Tailoring doesn’t need to cost an arm and a leg; and it’s far less costly than losing the arms and legs of your organisation.

Top tip from SageCo:

Your window of opportunity for conversations with your baby boomer workforce is even shorter than with other generations due to retirement options. If you want key individuals to extend their working life with you, use some of these questions in your conversation:

  • How do you see your career evolving over the next ten years with us?
  • What would your ideal role look like?
  • What knowledge, skills and rules of thumb do you think we need to retain in our business?

Help your baby boomer employees create a positive and productive future.

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