11.2Training Implications of an Aging Workforce
Both the average age of the population and the average age of the workforce are increasing rapidly in the United States where the leading edge of the baby boom generation—77 million strong, born between 1946 and 1964—reached the normal retirement age of 65 in 2011. The last boomer group will turn 65 in 2029 and the majority of them will be retired. Following in its demographic footsteps is the much smaller baby bust generation, born 1965 to 1983 when birth rates declined to a median of 15.9 per thousand (compared to the baby boom median of 24.5 per thousand).1 Work organizations face growing potential talent management problems as the number of employees retiring increases, and as many of those retirees take with them tacit knowledge that is difficult to transfer to the next generation. Certain key industries such as healthcare, education, administrative services, and professional and technical services, face critical potential shortages in the foreseeable future as skilled workers retire and there are relatively few qualified replacements. These shortages will happen despite the recent reversal of a long-standing trend toward earlier and earlier retirements.2
The data supporting these general conclusions are compelling. According to the Bureau of Labor Statistics, the overall US labor force grew from 154 million in 2008 to 162 million in 2018. But because of the aging baby boomers, the entirety of that growth was in workers 55 and older. Younger sections of the labor force actually shrunk in size during this period. Fortunately, BLS projections for 2018 to 2028 predict an increase in labor force of about 9 million workers to 171 million total, with about half of this increase accounted for by those in prime working years of 25 to 54.3 The other half of the increase will be in workers 55 and older. This will moderate the trend toward an older workforce over the next decade, but not reverse it.
A partial resolution to this impending labor shortage/talent management problem would be to encourage qualified older workers to remain in the workforce longer than they had planned, and perhaps longer than they need to in order to adequately fund their retirements. And, at least part of this encouragement would come from appropriately targeted training and development programs. As we noted in an earlier topic, older workers sometimes report that they are not offered the same developmental opportunities as younger workers. So, perhaps training offerings need to be reexamined to make sure the opportunities are available to everyone, regardless of age. And, if employees stay in the workforce longer, it means that in some organizations there may be the equivalent of three generations working together. This may create some interesting management challenges that lend themselves to training solutions.
Generational Differences in Learning
As humans age, there are observable changes in physical and mental processes. Short-term memory and speed at which information is processed degrade with age. However, increasing experience and acquired knowledge can often compensate for this loss in memory and mental quickness. Some trainers believe that these changes create changes in learning styles and preferences that are to some degree predictable based on age. A common way to discuss these differences is by grouping ages together into cohorts, as shown in Table 11.1 below.
Table 11.1
Generational Differences in Learning Styles4
Generation
Age
Description
Training Preferences
Traditionalists
Born prior to 1946
Patriotic and loyal, possess a lot of organizational knowledge
A traditional training room with a stable, orderly learning environment
Do not like to be put on the spot in front of others
Value presentation of information and training materials that are logically organized
Appreciate it when the trainer asks for their experiences and perspectives
Baby Boomers
Born 1946 to 1964
Competitive, hardworking, and concerned that all employees are being treated fairly
Respond well to interactive training activities such as group exercises
Like well-organized training materials with an overview of the information and an easy way to access more detail
Especially motivated to learn if they see personal advantage in the training
Gen Xers
Born 1965 to 1980
Need feedback and flexibility, work-life balance, and dislike close supervision
Prefer a self-directed learning environment
Respond well to training methods that allow them to work at their own pace, such as videos, internet-based training, or CDs
Highly motivated to learn if they see the training as increasing their employability
Like to learn by doing, through experimentation, and feedback
Respond well to training materials that are more visual and less wordy
Millennials or Gen Yers
Born after 1980
Optimistic, willing to work and learn, tech savvy
Like to learn by working alone and through helping others
Prefer blended learning approaches with self-paced online learning for basic concepts and knowledge followed by group activities and hands-on practice working with others
Motivated to learn if they see that the training will reduce their work stress and make them more employable
Place a high value on money
Prefer training that is entertaining and involves music, games, and art
Clearly, training programs need to be designed with generational preferences in mind. Part of the needs assessment process should be devoted to determining which age groups are likely targets for any training program and how learning objectives might be varied based on participant age. For instance, UPS was experiencing higher-than-anticipated failure rates in their new driver training program wherein most participants were millennials. The original plan was to use video games and simulations to train the drivers, but trainers quickly found that trainees wanted and needed hands-on driving training as well. The revised training curriculum now includes classroom training, online learning, podcasts and videos, along with realistic simulations driving delivery trucks and delivering packages.
On the other end of the generational spectrum, it is important for older worker training that there be a logical progression from basic to more advanced material. Self-confidence around the ability to learn may be low, so early initial successes are important. Training needs to proceed at a pace that allows each individual learner to master the easier material before moving on to the more complex. For instance, the London Underground (subway) system found that older train guards were more likely to stay on the job than younger ones, but were also more likely to wash out of training prior to being placed on the job. Therefore, the training plan was redesigned so that smaller bits of the job were presented at a time in the classroom setting (e.g., the first topic was basic operations of the railway, the signaling system, and emergency procedures) followed immediately by several days spent out on the actual jobsite seeing the operations in person. By alternating between small doses of classroom learning followed by immediate reinforcement with hands-on application, the turnover rate of older trainees was reduced.5
Knowledge Management and the Aging Workforce
With the impending retirement of so many workers, organizations are paying more attention to how to capture the acquired wisdom, knowledge, and know-how of older workers before they retire. One of the characteristics of a learning organization, as discussed in the last topic, is the ability to develop organizational capabilities based on know-how of employees (their intellectual and human capital). Sharing individual knowledge and contributing to the organization’s stock of social capital is on the increase, aided by new social networking technologies. The rise of intelligent tutors and on-demand learning technologies will make connections and sharing of knowledge even faster. Given this rapid increase in technological capability, it is not surprising that many companies are now creating jobs such as knowledge manager or chief information officer.
One area where knowledge managers have been busy is in developing expert systems based on the wisdom of older workers and making sure this wisdom does not leave the organization when an older employee retires. For instance, it is not uncommon in manufacturing firms to have a few highly experienced workers who know how to fix difficult problems with machined parts or repair expensive subassemblies that would otherwise have to be scrapped. Many times, these types of jobs rely on feel or on what is called tacit knowledge. The latter is distinct from declarative knowledge, which can be written down and communicated through procedures or handbooks. Tacit knowledge can generally only be learned by experience. However, savvy knowledge managers can develop expert systems that tap this know-how and save it for future generations, if they are interested. Too often, organizations are not all that interested. The author knows a senior manager at an Australian computer firm who was retired early in a downsizing program to reduce costs. Many other senior managers left at the same time and the organization discovered they didn’t have the intellectual capital they needed to move forward. As a result, they quickly offered the senior manager a very lucrative consulting contract to come back on a part-time basis to help the organization stay afloat. Amazingly, the part-time consulting contract cost the company more than the senior manager’s salary when he was full-time.
A positive example of older worker knowledge capture comes from the Tennessee Valley Authority (TVA) located in Knoxville.6 They have a highly skilled and knowledgeable workforce, but the average employee age is 47 and almost one-third of them plan to retire in the next five years. The TVA is naturally concerned that retirees will take with them the knowledge that is critical for the organization to be successful in the future. Therefore, the TVA has developed a process to identify and retain the critical knowledge these older workers possess. To identify this critical knowledge, HR staff interview line managers each year to identify probable retirements in their areas of responsibility and assess what critical knowledge will be lost with these retirements. They also ask for line managers’ ideas on how to retain that knowledge. One common response is that prior to retirement, employees with critical skills stop doing their jobs and become internal consultants, instructors, and mentors as a way to pass on their acquired wisdom and knowledge to other, younger employees. In other cases, it may simply be a matter of asking the retiring employee to produce a standard operating procedure that captures what he or she knows in writing. Finally, if the retiring employee’s knowledge and experience is based on operating equipment that is now becoming out-of-date, the impending retirement is viewed as an opportunity to consider an upgrade of technology.
Career Challenges for Older Workers
In Topic 3 of this book we discussed career management and career development. The aging of the workforce and the potential for senior-level talent shortages when the baby boomers retire en masse have created special challenges in this area. Obviously, organizations need to be focused on career management issues such as succession planning (long-term) and replacement planning (short-term). Also, if aging workers can be encouraged to stay in the workforce longer to forestall the labor shortage problems, then we have the additional problem of more people experiencing career plateaus.
More and more organizations are discovering the actual advantages of an aging workforce: lower absenteeism and turnover, greater loyalty and commitment, higher job satisfaction, greater customer orientation, and so forth. On the other hand, if older workers are to stay on the job longer they will need additional training and skill upgrading like everyone else. Companies need to ensure that older employees receive the training they need to avoid obsolescence and to become skilled with new technology. As noted previously, this means that training programs must be designed and developed with a greater array of learning styles and learning preferences in mind.
Also, if organizations are to meet the career needs of older workers, it is useful to understand what they want and need that might be different from what younger workers want and need. Several studies focusing on this question have been conducted recently.7 One thing that crops up consistently in these studies is that older workers want flexibility in their jobs. They seek opportunities to travel, spend more time with family, or even work fewer hours. Home Depot, for example, allows some older employees in cold northern states to relocate temporarily to stores based in Florida during winter months. Older employees also want autonomy on the job and are averse to close supervision, particularly if the supervisor is younger and less experienced. This suggests training opportunities in intergenerational dynamics, where younger supervisors learn how to interact more effectively with older subordinates and vice versa. Finally, older employees seem to value social interaction on the job, along with corresponding opportunities to serve as mentors to younger employees. Some creative organizations have set up two-way mentoring programs where baby boomers mentor Gen Xers or millennials on how to get ahead in the organization, while the younger generations mentor the baby boomers on the use of new technology.
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