Older Workers and Retirees as Volunteers: An Untapped Resource

Brgerengagement von Senioren

June 25, 2010 Cologne, Germany
Celina Pagani-Tousignant President, Normisur International Faculty, College Center for Corporate Citizenship, Center for Corporate Citizenship Deutschland Tecnolgico de Monterrey
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Agenda
Time of Transformation Aging Process Retirement Plans Employment Patterns Corporate Volunteer Programs Best Practices: How to Engage Retirees
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Older Workers
Time of Transformation

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What Name?
Older Workers
Experienced Workers Veterans Traditionals Mature Workers Older Adults Baby Boomers Adult Workers Older Citizens Senior Workers

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How Old?
45 and older 50 and older 55+ People in their 60s. 70s. 80s, and 90s 65 and over

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Changes in Society
Percentage of population in U.S. ages 50 and older: 13% in 1900 27% in 2000 Over 35% in 2020
Source: Sloan Center on Aging & Work, How Old Are Todays Older Workers?, 2005
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Labor Force Changes

Past Percentage of older workers had little impact on the age composition of labor force Labor force exit was predictable between ages (62-65) Present Had most significant increases in participation over a 30 year period U.S. older workers (45 and older) comprise 37% of labor force
Half of working adults ages 50-64 may delay retirement 16% may never stop working
Source: Sloan Center on Aging & Work, Older Workers Preferences for Work and Employment, 2009

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Dramatic Changes
Older Workers: Aging process Retirement plans Employment patterns

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Older Workers
Aging Process

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Aging Process
Past Fear of growing old Negative perceptions Old age=role less Checked out Time disengagement Nursing home Depression and anxiety Present Added years longevity and health Well-being and vitality Older workers want to keep learning, working, volunteering and contributing to society Want to live life to fullest Employment is compatible with retired living

Source: Sloan Center on Aging & Work, Engaged as We age, 2010

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Models of Aging: From Disengagement to Engagement

Productive Aging 1950 1960 2000 2005 Meaningful Aging Disengagement Theory Successful Aging 2010

1990

Source: Sloan Center on Aging & Work, Engaged as We age, 2010 Normisur International 2010

Engaged as We Age

Successful Aging
Avoiding Disease & Disability

Successful Aging

Engagement

with Life

High Cognitive & Physical Function

Source: Rowen and Kahn

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Other Models of Aging

Productive Aging
Elaborates on Engagement with life Activities that produce goods and services, whether paid or not Focuses on: work, volunteering and caregiving

Meaningful Aging
Model that endows later life with dignity and value in spite of illness and frailty

Source: Sloan Center on Aging & Work, Engaged as We age, 2010

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Beyond Involvement to Engagement:

Volunteer Activities Educational Activities Engaged as We Age

Care-giving Activities

Paid Employment

Source: Sloan Center on Aging & Work: Engaged as We Age, 2010 Normisur International 2010

Older Workers
Retirement Plans

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Retirement
Past Retirement=subsidized vacation Event To be or not to be in the labor workforce

Present Gradual process Shift gears by reducing work hours, changing jobs to new lines of work, leaving a career job, remaining on the career job, working part-time, phased retirement, going back to school, consulting, volunteering or having a bridge job Stop working altogether

Source: Sloan Center on Aging & Work, Down Shifting: The Role of Bridge Jobs After Career Employment, 2007

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Older Workers
Employment Patterns

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Are Employers Getting Ready for the Demographic Changes?

AARP (American Association of Retired Persons): Best Employers for Workers Over 50 in 2001 45% HR professionals: their workplaces are just becoming aware of these changes SHRM (Society for Human Resource Management) reports 43% members see a problem with loss of talent associated with the retirement of baby boomers

Source: Sloan Center on Aging & Work, Businesses: How Are they Preparing for the Aging Workforce?, 2005

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Why should companies care?

Human Capital & Diversity
Multigenerational teams Knowledge transfer Aging workforce

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New Ways of Working

Global workforce Competition Operations 24/7 High technology Pressure for innovation Four generations at the workplace
Source: Sloan Center for Aging & Work Normisur International 2010

Four Generations at the Workplace

Veterans 1922-1943 (52 million)
Baby Boomers 1943-1960 (73.2 million)

Generation X 1960-1980 (70.1 million)

Generation Y 1980-2000 (69.7 million)

Source: Generations at Work, Zemke, Raines & Filipczak

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Business Case: Older Workers

Low turnover rates Higher performance and productivity More reliable

Higher customer satisfaction rates

Reputation

Stronger work ethic

Serve as mentors Invaluable experience Willing to work different schedules

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Quality of Employment

Source: Sloan Center for Aging & Work, Employers of Choice in Countries of Choice, 2007

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What is His Story?

Married?
Are his kids in college? Middle School? New baby? How is his health?

What is he looking for from his job?

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Age Matters
Chronological
Generation

Career Stage Life Stage

Source: Sloan Center on Aging & Work, Age and Generations Study, 2009 Normisur International 2010

Quality of Employment by Age/Generational Groups

Wellness, Health & Safety Protections Opportunities for Dev elopm ent, Learning & Adv ancem ent
0.4 0.2 0.0 -0.2

Opportunities for Meaningful Work

Fair, Attractiv e and Com petitiv e Com pensation & Benefits

-0.4 -0.6

Prov isions for Em ploy m ent Security & Predictabilities

Prom otion of Constructiv e Relationships at the Workplace

Workplace Flexibility

Culture of Respect, Inclusion & Equality

Succesful Aging

A g e 2 6 or y ou n g er (Gen Y er s/Millen n ia ls) A g e 3 6 t o 4 2 (Older Gen X er s) A g e 5 3 t o 6 1 (Older Boom er s) T ot a l Sa m ple

A g e 2 7 t o 3 5 (Y ou n g er Gen X er s) A g e 4 3 t o 5 2 (Y ou n g er Boom er s) A g e 6 2 or older (T r a dit ion a list s)

Normisur International 2010 Source: Sloan Center bon Aging & Work, Age and Generations Study, 2009

Drivers of Employee Engagement

Characteristics Employees Bring to Work Age (being older) Gender (being female) Elder care status (not having elder acre responsibilities) Household income Mental health (better) Physical health (better) Core self-evaluation (having a better perception of self) Workplace Characteristics Number of hours worked (more hours) Satisfaction with training & development Assessment of culture of flexibility Perception of supervisor support Perceptions of inclusion Perceptions of job security

Source: Sloan Center on Aging & Work, Engaging the 21st Century Multi-Generational Workforce, 2009

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Drivers of Employee Engagement: Older Baby Boomers

Characteristics Employees Bring to Work
Mental health (better) Core self-evaluation (having a better perception of self)

Workplace Characteristics
Number of hours worked (more hours) Perception of supervisor support

Source: Sloan Center on Aging & Work, Engaging the 21st Century MultiGenerational Workforce, 2009

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Older Workers
Corporate Volunteer Programs

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Trends in Volunteerism Among Older Adults

According to 2009 surveys by Hartford and AARP,

50% of older adults over age 50 volunteer/over 40% of older adults expect to increase the amount of time spend in volunteer work in the next 5 years Older adults (55 to 64 years of age) like to provide managerial and professional assistance when they volunteer Collecting food and/or providing office services are volunteer activities preferred by older adults age 65 and over

Source: Sloan Center on Aging & Work, Trends in Volunteerism Among Older Adults, 2010

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Challenges
Insufficient connections between older adults and potential volunteer opportunities Outdated volunteer models and opportunities Transportation Cost barriers
Source: NGA Center for best Practices, Increasing Volunteerism Among Older Adults: Benefits and Strategies for States, Issue Brief, 2008

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Timely Study: 2005

Ranks of retired worker population will grow in the next decades Retirement is being redefined as a transition between paid work and retirement (bridge jobs, phase retirement and post-retirement entry to the workforce) Corporate volunteer programs represent a way through which older workers, retirees and/or alumni can remain engaged and make significant contributions
Source: Boston College Center for Corporate Citizenship (BCCCC), Expanding the Boundaries of Corporate Volunteerism: Retirees as a Valuable Resource, 2005

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Corporate Volunteer Programs

Lack of connection between employee volunteer programs and the changing nature of retirement in the U.S.
Source: Boston College Center for Corporate Citizenship (BCCCC), Expanding the Boundaries of Corporate Volunteerism: Retirees as a Valuable Resource, 2005

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Core Findings
47% of the 22 companies in the study include retirees in their volunteer efforts 44% of 17 companies with Dollars for Doers make it possible for retirees to participate (donations from $300 to $1,000 per retiree) Only a few strategically target retirees (half of managers reported low level interest in retiree volunteerism/few leaders view retirees as an untapped asset)
Source: Boston College Center for Corporate Citizenship (BCCCC), Expanding the Boundaries of Corporate Volunteerism: Retirees as a Valuable Resource, 2005

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Core Findings (continued)

Shorter-term projects Integrate employees and retirees intergenerational exchange Need to publicize volunteer opportunities Important to develop volunteer DNA before retirement Business case for including retirees

Source: Boston College Center for Corporate Citizenship (BCCCC), Expanding the Boundaries of Corporate Volunteerism: Retirees as a Valuable Resource, 2005

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Implications for Companies

A multigenerational workforce can provide a competitive edge in the marketplace Companies that value older workers and offer them flexible arrangements will possess an advantage in recruiting and retaining older workers One way of showing that value is through corporate volunteer programs that support older workers and retirees desire to stay engaged as they age
Source: Boston College Center for Corporate Citizenship (BCCCC), Expanding the Boundaries of Corporate Volunteerism: Retirees as a Valuable Resource, 2005

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Best Practices
Corporate Volunteer Programs That Engage Retirees

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Best Practices
State Street Corporation Verizon Cargill Cargill

Johnson & Johnson

Xcel Energy

IBM

Boeing

Source: Boston College Center for Corporate Citizenship (BCCCC), Expanding the Boundaries of Corporate Volunteerism: Retirees as a Valuable Resource, 2005 Normisur International 2010

Thank You!
Celina Pagani-Tousignant celina@normisur.com

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