Sarah Jennings MACE 2016 presentation

PART 1: DO YOU KNOW AARP?PART 2: THE VALUE OF OLDER WORKERS AARP Sarah Jennings – Vice PresidentAARP Central Region (AR, IA, KS, MN, NE, ND, OK, SD, WI)May 6, 2016

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WELCOME

In your state…

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We’re active in federal advocacy.

YOU PROBABLY KNOW...

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We’re just as active at the state and local level.

YOU MAY NOT KNOW...

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We do educational workshops.

YOU PROBABLY KNOW...

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We also do fun, social events.

YOU MAY NOT KNOW...

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AARP can help you save money.

YOU PROBABLY KNOW...

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We’re in the neighborhood.

YOU MAY NOT KNOW...

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We have the ability to send you a lot of mail.

YOU PROBABLY KNOW...

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We can send targeted updates about things happening in your state and community.

YOU MAY NOT KNOW...

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We have information on what you can do in retirement.

YOU PROBABLY KNOW...

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We have information that’s useful well before retirement.

YOU MAY NOT KNOW...

What do you think?

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The Changing Landscape of Work

For the first time in modern history, workplace demographics now span four generations.

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The Generations

Traditionalists: Before Traditionalists: Before 19451945

Boomers: 1946-Boomers: 1946-19641964

Gen X: 1965-1980Gen X: 1965-1980Gen Y: 1980-Gen Y: 1980-

20002000

2013 Workforce % - 4%2013 Workforce % - 4% 2013 Workforce % - 31%2013 Workforce % - 31%

2013 Workforce % - 32%2013 Workforce % - 32% 2013 Workforce % - 33%2013 Workforce % - 33%

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Helping You Harness the Power of Experience

Equip workers 50+ with skills and resources that will help them leverage their competitive advantage in the job market.

Engage in ongoing dialogue with employers to understand their critical business challenges and workforce needs.

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The Business Case for Workers 50+

Experienced Workers Help Employers Maintain a Competitive Edge

By 2022, the number of workers age 50+ will constitute 35% of the workforce.

Demand, Say Hello to Supply

Sources: Aon Hewitt analysis of Bureau of Labor Statistics data, and ManpowerGroup 2014 Talent Shortage Survey

Value

•Workers age 50+ add value to organizations due to their high levels of engagement, stability, productivity, and experience.1

•50+ workers are a critical component of a multigenerational workforce.2

The Costs Are Less Than You Think

1Source: Establishing the Positive Contributory Value of Older Workers: A Positive Psychology Perspective 2005.2Source: Wall Street Journal article, “There’s No Age Requirement for Innovation” 3Source: Aon Hewitt’s Benefit SpecSelect™ database and Aon Hewitt analysis of Truven Health Analytics data4Source: Aon Hewitt analysis of Truven Health Analytics data

Cost

•Recent trends in compensation and benefits have diminished the relationship between age and labor costs to the point that age is no longer a significant factor.3

•Employer-paid health care costs are growing more slowly for 50+ workers. From 2003 to 2011, employer claims costs rose by 8.0% for workers ages 35-39, compared to 5.7% for workers ages 55-59.4

Turns Out, Age ISN’T Just a Number

Source: Transamerica. Baby Boomers Are Revolutionizing Retirement: Are They And Their Employers Ready?” December 2014.

A 2014 survey of more than 700 employers revealed the following beliefs regarding the value of older workers:

(it’s a lot more than that…….)

Every Day is “Bring Your Commitment to Work” Day

1Source: Aon Hewitt Engagement Database 2009-20132Source: Aon Hewitt Engagement Database 2009-20133Source: Engagement at Work: Its Effect on Performance Continues in Tough Economic Times, Gallup Inc. 2013

• 65% of employees age 55+ in large companies are engaged, compared to 58-60% of employees under age 55.1

• 81% of workers age 55+ are “motivated”— meaning they say that they exert extra effort and contribute more than is normally required in their job—compared to 77% of workers 25-54.2

• Business or work units that scored in the top quartile on employee engagement are 21% more productive, have 22% higher profitability, and experience 37% less absenteeism when compared to those in the bottom quartile.3

Staying Power – the 50+ Are Sticking Around

1Source: Employee Benefit Research Institute and Greenwald & Associates, 2004 and 2014 Retirement Confidence Surveys2Source: Staying Ahead of the Curve 2013: The AARP Work and Career Study3Source: Aon Hewitt estimates4Source: Aon Hewitt Engagement Database 2009-2013; 2014 analysis by Aon Hewitt

• 45% of workers 45+ expect to retire at 65 or younger, compared to 62% in 2004.1

• 71% of workers 45+ report “enjoying the job” as a major factor in their decision to work, second only to financial reasons.2

• Retaining older workers reduces the one-time costs of turnover that can go as high as $31,700 or more per employee — in fact, unexpected turnover may cost 1.5 to 2 times more than expected turnover.3

(and not just for financial reasons…….)

Staying Ahead of the Curve 2013: AARP Multicultural Work and Career Study

What’s Important to Older Workers?

Age 50-64 Age 65+Want a flexible workplace 70% 70%

Need the money 96% 88%

Say a 401(k) is essential 56% 31%

Work to support their families 74% 51%

Have taken time off for caregiving 19% 14%

Leveraging an Aging Workforce

• Recruit mature workers intentionally• Create a culture that is

multigenerational friendly

• Offer flexible work options

Leveraging an Aging Workforce

• Invest in training, Career paths, New roles

• Facilitate knowledge transfer

• Foster Social Networks

Employer Action Steps

• Share “A Business Case for Workers Age 50+” with management and colleagues

• Use a mentor program (two-way)

• Establish a process for knowledge transfer between generations

• Consider using retired employees as a “just in time” workforce

• Hire the long-term unemployed

• Sign the AARP Employer Pledgewww.aarp.org/employerpledge

Employer Action Steps

Long-Term Unemployed

33 million long-term unemployed

27%27% have college degrees

43%43% are age 55+

300 300 employers pledge to hire

Ready to Rethink Your Hiring Strategies?

While you are rethinking… here’s some more food for thought…

https://www.youtube.com/watch?v=UYCxAIqjyCA

Aging.

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Disrupt Aging

Disrupt aging challenges challenges outdated beliefsoutdated beliefs and sparks and sparks

new solutions new solutions so more people can choose how they

live and age.

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What outdated beliefs can we What outdated beliefs can we challenge?challenge?

From…From… To…To…Aging is only about decline. Aging is about growth.

Aging presents only challenges. Aging creates new opportunities.

Older people are burdens. Older people are contributors.

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What new solutions could we spark?What new solutions could we spark?

For Health…For Health…

For Finance… For Finance…

For Work…For Work…

For Communities…For Communities…

Check this out…

https://www.youtube.com/watch?v=lYdNjrUs4NM

Thank youThank youSarah JenningsSarah Jennings

Vice President - AARPVice President - AARPCentral Region Central Region (AR, IA, KS, MN, NE, ND, OK, SD, WI)(AR, IA, KS, MN, NE, ND, OK, SD, WI)

sdjennings@aarp.orgsdjennings@aarp.org@sdjennings@sdjennings