The importance of creating a strategy to attract and retain mature workers

Today’s business world has three major problems facing it; the cost of doing business, the lack of employee loyalty, and the fact that baby boomers are retiring which will create a talent and knowledge vacuum. In this blog entry I’m going address this problem and cite some great points from hours and hours of research and a conversation with one of the nation’s leading experts on “mature workers”, Dr. Henry Holstege. I am most grateful to have learned from him and for the fact that his acquaintance was made.

In April of 2010 we’re still in the midst of a recession. But at some point the demand for professional know-how is going to soar. Companies have several ways to address this problem. They can hire the best of the best recruiters, they can invest in technology to find talent, or they can work existing staff to the bone. The problem is that there are pretty hefty price tags associated with these tactics. My suggestion is to put together a strategy to hire mature workers. From my experience talking with companies, HR leaders and executives, this is not being carried out or even thought of for that matter. Let me share with you some of the advantages of doing so.

High work ethic. This is something from an earlier generation that you can leverage. Mature workers come from a generation where working hard was the norm. I take pride in my work ethic (I’m a “gen x” member). I learned it from my parents and grandparents. Finding someone who can get a lot done quickly is a huge advantage. And mature workers will do this for you. The bad news is that over 65% of employers are leery when it comes to hiring them.

As I mentioned earlier sitting down with Dr. Henry Holstege was a vital part of my research (click here to check out the Older Learner Center at Grand Rapids Community College). I asked him, “What are the advantages of hiring a mature worker?” And here’s what he told me besides the high work ethic I just noted…

- Virtually no drug abuse.
- Better absenteeism.
- They’re not looking for advancement; upward mobility is not a factor.
- They have better personal skills. Won't give the supervisor a hard time.
- The older worker has more experience. Knowledge of booms and busts in the economy for instance.
- Office workers don't have tough physical requirements. So why not employ mature workers?

Besides the benefits that are associated with mature workers we need to explore the reality of the situation. Economically it makes sense for our aging population to work until age 65 and beyond. Per Dr. Holstege, “Those nearing retirement earn an additional 8% - 9% of income for each year they work after age 65." That’s incredible! I found it equally noteworthy that 70% to 80% of baby boomers would continue to work, to phase into retirement, if they had adequate training.

I have an interesting but not unique opinion of experience. You learn by trying things and failing until you get it right. Wisdom comes with age. And mature workers bring experience, knowledge, and know-how that our younger generation can learn from. A great analogy is when NFL teams pay big bucks for the fifteen year veteran whose physical skills have declined but their leadership and mentoring skills make them worth their weight in gold. Especially with respect to the rookies. Think of our gen-y workers. The manager that is going to stand apart from the rest is the one who can manage multiple generations with style and great success. That means we must understand the value that each generation (and each individual for that matter) brings and how to harness it to drive business success.

Loyalty is another reason to recruit mature workers. Some say that more mature workers are more loyal to the company whereas younger workers are loyal to the work itself. After fifteen years in the workforce it is my professional opinion that companies that can instill a heightened sense of loyalty to their company, to their “brand”, are going to be the businesses that survive and in many cases flourish in the next decade. It is abundantly clear when you look at facebook and social media in general that companies embrace their fans. Their biggest supporters. Those people are also their best customers, advertisers, and connectors. If there’s a truism that I’ve latched onto as much as any other it’s this… “The more people that sell your product that aren’t on the payroll the better!” (Thank you to Jeff Green, my long time friend and mentor).

Companies need to leverage the people that work for them that are advocates for what they do, make, and provide for the employees themselves. No one can recruit better than a person who works for a company who really loves being an employee! Why do you think companies appreciate employee referrals so much? Why do you think that great companies do an outstanding job of recruiting from within? Mature workers who are loyal to their employers will be this resource and help you recruit people of all ages and all skill-sets.

Here are some myths and truths I learned from Dr. Holstege. I encourage you to check out a most interesting video that goes into great detail on the subject: Successful Aging hosted by Henry Holstege and written by Klaas Kwant, Mike Colby, and Henry Holstege.

http://real.grcc.edu/asxgen/GRCCTV3/MaturePersonsInTheWorkplace.wmv

MYTH
Training older workers is a lost investment because they will not stay on the job.

TRUTH
The work life of an employee over 50 usually exceeds the life of a new technology for which the workers are trained.

MYTH
Older workers are not as productive as younger workers.

TRUTH
Productivity can actually rise due to greater worker accuracy, dependability, and capacity to make better on-the-spot judgments.

MYTH
Older workers are less flexible and adaptable.

TRUTH
Older workers are more likely to ask ‘Why’, because they have often seen past changes in processes and procedures abandoned in mid-stream when they didn’t bring expected rewards quickly enough.

MYTH
Benefit and accident costs are higher for older workers.

TRUTH
Older workers have fewer acute illnesses, sporadic sick days, and fewer dependents. Older workers take fewer risks in accident prone situations and statistically have lower accident rates than other age groups.

MYTH
Older workers are not as creative or innovative.

TRUTH
80% of the most workable and worthwhile new production ideas are produced by employees over forty years old.

Here is some interesting information about and for mature workers…

http://www.grcc.edu/ShowPage.cfm?PageID=14283

(Use the above link to view page where you can click on active hyperlinks with “source” info below)

Fast Facts On & For Mature Workers

1. The term “Older Worker” is not consistently defined; sources consider people as young as age 40 (who are covered by the 1967 Age Discrimination in Employment Act). (Source)
2. “By 2010, middle and older age groups in the labor force will outnumber younger workers.” (Source)
3. The Age Discrimination in Employment Act offers older workers some protections against age discrimination. (Source)
4. In addition, older workers are also protected by the Older Workers Benefit Protection Act (an amendment to the Age Discrimination in Employment Act of 1967) – this law is protected by the Equal Employment Opportunity Commission (EEOC) (Source)
5. Older workers offer characteristics that employers value. (Source)
6. Older workers with disabilities face additional challenges when age-related conditions affect limitations associated with their disabilities.
7. "Older workers are busy, healthy and happy. In 2000, the Small Business Survival Center report concluded that workers older than age 55 have better attendance records, averaging only 3.1 sick days a year, and they account for only 9.7 percent of workplace injuries.’’ (Source)
8. "Older workers are not uncomfortable about being supervised by younger employees’’ (Source)
9. Older workers often work because they need to do so. “In the past year, as the economy has weakened and unemployment has risen, the labor force participation rate for older workers (age 55 - 64) has jumped 2 percentage points” (Source)
10. Research demonstrates that older workers can and do master new technology. (Source)

I’d like to share this interesting point made in Current Strategies to Employ and Retain Older Workers written by Lauren Eyster, Richard W. Johnson, and Eric Toder of the Urban Institute, Washington D.C. in January of 2008…

“Many states, local workforce agencies, community colleges, and advocates for older adults have begun campaigns to educate employers and industry associations about the benefits of hiring and retaining older workers. States working to educate employers and develop partnerships to improve employment opportunities include Arizona, Arkansas, and Iowa. Arizona, for example, developed the Mature Workforce Initiative. It features a “seal of approval” to identify businesses that are friendly to older workers and a pilot program to connect businesses with older workers through all One-Stop Career Centers in the state.”


There are seven things you need to incorporate to have a successful strategy to recruit mature workers…

1. Allow “flex schedules”.
2. Offer part time positions or job sharing opportunities.
3. Training programs to empower mature workers with necessary job skills.
4. A corporate culture that values diversity and respects the older and incredibly valuable members of our society.
5. An HR staff that is on-board and on the same page with respect to this strategy and this mind-set.
6. Manager training on how to manage the multi-generational workforce (I can help you with this).
7. Get the word out that you embrace the idea of having more mature workers join your team! Use facebook, Twitter, LinkedIn, and lean on the amazing power of word-of-mouth heavily.

In summary there are several reasons to consider hiring mature workers; the upcoming labor shortage, the need for experience and wisdom in the workplace, the cost savings, and the fact that there are many people over 50 in America who want and need to work. But I say the best reason to hire them is that they are those whom we love; our fathers, our mothers, our grandparents, our uncles and aunts, our veterans, and our neighbors. Like everyone they need a sense of purpose in their lives. They need to be social. They need to contribute. And, boy, do they have a lot to offer. Think about how attracting mature workers can be a successful part of your overall recruitment strategy and how this could create a labor advantage chasm between you and your competitors.

One more resource for you to consider…

How Nonprofits Can Attract Mature Employees

http://nonprofit.about.com/od/nonprofitmanagement/a/olderworkers.htm

LinkedIn Strategy & Tactics: Keys to effectively using this social media tool as either a job seeker or a business development professional

Kevin McDonnell will be speaking at Wazata Community Church.

The details...

http://wayzatacommunitychurch.org/pages/page.asp?page_id=62332

The topic...

There's a buzz these days about LinkedIn and other social media out there. Several opportunities exist to learn how to create a profile and get through the basics. But what is really hard to come by is information that explains how to effectively use LinkedIn as a job seeker tool. My presentation will provide the insight regarding how LinkedIn can give you a true advantage over the competition. Or at least it will serve as a significant upgrade your current job identification and acquisition strategy. My personal trade secrets will be revealed which will result in more face to face meetings, interviews, and subsequently job offers. Use this proven formula for success so that doors will be opened and exciting career moves will present themselves. Learn how to take control over your occupational destiny and brand yourself easily and like never before with this social media tool that's evolving and growing in popularity each and every day.

Failing to develop & retain high performers is far too common

More than half of the CFO’s I talk with don’t have a robust strategy in play to keep and progress the career paths of key finance talent within their departments. Furthermore, the vast majority of finance pro’s I meet that are currently working say that they don’t feel like upper management is doing much to retain them and provide structure and tactics with respect to their career path. Especially gen Y staffers. This is the technology generation. But it’s also a group that likes to stretch themselves and find work challenging in order for it to be rewarding.

So what? Well… financial leaders need to find out how to make the finance roles more interesting. They need to mix collaboration with reconciliation. Perhaps you have them manage a project to improve a process. To find inefficiencies. The key is exercising their brains before some other employer does.

Perhaps you don’t have time to manage this. Perhaps it’s just not your priority right now. Then you have to direct the department heads to frame things better. As I progressed through my career I wasn’t always preoccupied with the tasks I was performing, but rather, what I was learning. This is huge. The bigger picture. The things going on around me. How the business works. If a gen y employee can’t be given a promotion right away, show them the knowledge that they're taking in and how it can prepare them for success. Put together some perspective that will resonate with their worldview. Part of this might be a strong self esteem and a desire to be challenged.

Setting goals and identifying gaps is mission critical for your staff’s career success and their contribution to your organization. How often do you discuss your report’s career? Every six months? If so, that isn’t going to cut it. Uncertainty will result in questioning their career status and in many cases this means looking at opportunities outside your company. Life’s about relationships and business is a big part of life. Make sure that you are coaching often. And that your timing for giving career guidance is impeccable.

You’re still wondering if you should really do this. Well, think about how much fun it is to back fill folks. How thrilling it is to have a new analyst on board when the data shows that it takes at least one year to get up to speed and to become and a strong contributor. Or think about how annoying it is that the young talent will work for one of your competitors and take along some of the best practices you’ve painstakingly developed over the past five years. And here’s the kicker… What if you replace that person with someone who’s nowhere near as sharp as the person who just exited because you failed to challenge them and talk about their career?

My next post will shed some light on the value of creating a strategy to attract and hire "mature workers", the baby boomers who aren't ready to call it quits.

Networking: Not an activity, it’s a mindset.

Often times people say with a sigh, “I have to get out and do some networking.” The reality is that networking can’t be something you do occasionally or feverishly for one month, it has to be the way you operate. Like any successful part of peoples’ lives you have put time and thought into it. For example, social networking tools like LinkedIn are only powerful when you invest a significant amount of effort. Your daily goal should be to make new connections that will drive business and to use the network to learn and to convey how you can help others. People respond in kind. It’s better to give than receive. But if you don’t agree with that, just follow the “seed principle”. You reap what you sow, so… sow frequently. And thoughtfully.

Avoid taking on too many social networking tools at once. Dive into one. And then, live in it. Learn from experts on how to best utilize it. Ask the question, “Who’s benefiting most from this?” And then, “How do they use it?” Then figure out how to use multiple tools and how they complement one another.

Many folks think that networking groups are the way to go. Truly they can be helpful but they can’t be the “end all, be all” of your networking repertoire. Don’t bite off more than you can chew. You need to choose your groups wisely. Shop around. And focus on the quality of the participation instead of numbers of people you’ll meet. After all, you’re not playing the game “whoever collects the most business cards wins”. You’re trying to establish mutually beneficial relationships that will drive personal fulfillment and business success.

When you are doing business (over the phone, or out and about) each person you meet is a potential lead or someone that could be the other member of a win/win business relationship. However, introductions without taking the next steps, forging relationships, won’t get you very far. Ask people questions to learn what they do (remember that people will respond in kind) and be ready to share what you do and how knowing each other will be advantageous. Follow up is paramount and defining the next step and executing it is key. This is your opportunity to start a relationship, to figure out why knowing each other and staying connected makes sense, to begin the most important part of any business partnership, trust.

Networking is an art really. And it’s a skill. That you shape and tweak. Examine how well the things you do work. When they work, repeat them. Write down whom you’d like to meet. Think outside the proverbial box. Consider how important it would be to meet people other than you’re next customer. For instance, referral sources have to be diverse and abundant. Perhaps you want to meet people like; potential mentors, competitors, business development contacts in a non-competing industry (that you can share contacts with), professionals for informational interviews (to guide you on your career path), potential clients (to conduct market research)… the list goes on. Networking isn’t something for the “to do” list. But rather, it should be on your “you do” list.

Looking for jobs that pay what you're worth: Pitfalls of doing otherwise

Working as a manager for a professional division of a global, best-in-class, leader in the staffing and HR solutions business I meet a lot of candidates that are getting so desperate that they are willing to make a whole lot less than they did in their last position. There are some potential negative consequences to that. Let's take a look a them...

First of all, you have a much lower chance of landing a position where the pay grade is a notch or two lower. Think of it this way. Managers don't want to hire you and then get a knock on the door two months later to learn that you're quitting for a better opportunity now that the economy has improved. You have to realize that managers are often looking for long term fits to their organizations and departments. When I managed over a dozen people training and ramp up was something that I initially enjoyed but eventually began to dread. Stability is so important. Intellectual capital is hard to replace. And training and development time and dollars end up a waste. So, think twice when applying for that job 20k to 30k less than your last salary.

Another thing to consider is how do you recover? Can you simply explain to your next prospective employer that you "just had to take something"? You might find yourself fighting to get something slightly under that job you loved and retained for five years. Watch out for this too... if you take a job at a lower pay rate how long are you going to stay there? Short assignments could mean you receive the stigma of being a job hopper. Are you able to spin it in an interview to make sure the impression is favorable? Think about it. Especially if you don't have a poker face.

Consider this. Riding it out. If you have the financial wherewithal you can come off as someone who's looking for the right opportunity. Wanting to use joblessness as an opportunity to improve your career path and status. This can be a pitfall too. You must be mindful of how it looks to have gaps in your resume. Once again, it's all about how you spin it. How you explain the course you took is crucial. And how that choice has prepared you to forge ahead, on a career path you determined, that you planned ahead for!

Here are some helpful options to consider when jobless for an extended period of time and the stress levels and frustration levels are rising...

• Contemplate working for yourself. Working as an independent consultant. You might find that you can solve a business problem that's not being addressed and love it. You could learn that the lifestyle of being your own boss is gratifying and liberating. And the challenge is what motivates you each day to do better than before.
• Use social networking tools to stay connected with the people that care about you and to meet new people who can help you in a unique and irreplaceable way. Ask for informational interviews with the people who work for the ideal companies to land that next position. Learn who you know knows someone at those companies (people that you think highly of and vice versa) and drop their name. You can't underestimate how powerful this can be.
• Connect yourselves with good, quality recruiters. If you need help spotting what the good ones look like, contact me. Or reconnect with the recruiters you are working with. Express a sense of urgency. A candidate did that with me lately and it drove me to act in his behalf!
• Find someone to talk about career options. Alternatives that you maybe never thought of. You need to find the anti-environmentalists. These are not people who are against renewable energy sources... it is the kind of person that can step outside of something in order to see it objectively in order to notice what is otherwise unnoticeable.
• Give up salary but get something else that's justifies the decision! Many folks will take a lower salary for a more flexible work schedule. Or more vacation, down time. Or perhaps a five minute commute at twenty-five miles an hour. You decide. You don't put salary on your resume but if the subject comes up with a future employer you can spin it by saying that you "successfully and purposefully negotiated benefits-in-lieu of a higher paying salary."
• Take out a piece of paper. Draw a bulls-eye. Think of the jobs that are in the center of the bulls-eye. And all the things make them the essence of what you're searching for. Fifty points! Figure out what positions you are willing to take that are not perfect but will meet most of your needs and will advance your career somewhat. Twenty-five points. Lastly, define what you are willing to do if the above two situations don't pan out. Ten points (sigh). Place a time-line on when you look for jobs in each section of the target. Know what these jobs or careers are. And whatever you do... don't settle for something that outside of that circle.

Consult the right recruiting organization early - be careful & proactive!

The mistake I see a lot managers making is not setting aside time in their busy schedules to recruit or strategize proactively regarding staffing their accounting and finance departments. "A" talent is becoming increasingly tough to find with baby boomers changing their lifestyles and altogether exiting the workforce. Ask yourself these tough questions...

• Do I have a pipeline of talent in the wings, a slate of people, ready to approach when your department grows quickly or when the team's star performer decides to vacate for an offer you can't match?
• Being totally honest, does my team consist of "A's" and "B"'s whom I am mentoring and molding or do I have personnel on my team that are barely pulling their weight?
• Are their folks on my staff that don't fit in with the corporate culture and with the majority of those they work with?
• Have I hired people that don't quite have the critical skill sets they need (and now I am paying for it)?
• Am I or my corporate recruiters (HR departments in many cases) networked well enough to bring in talent for positions we don't even have right now? (for instance: Your company is in serious growth mode.)
• Do I have the expertise to recruit successfully or do I even have the time to do it right?

If you answered "no" to any of the questions it's time to get proactive. Enough introspection... I'll share with you what you have to look for when selecting a firm to assist you with your staffing needs...

1. You need a source that's going to communicate effectively; that's going to be responsive to your requests, questions, and concerns. What are the signs to look for before you commit to much into a relationship with a company? How soon do they call you back when you call them? Are they on-time/early when you schedule a meeting? When you write them an email do you get a reply promptly with thoughtfully composed message? Did they take the time to thank you (email, note, etc) and are they able to repeat to you what's important to you?
2. Here's a must... how do the staffing agencies find the talent? Job fairs? If so ask how they operate them and how successful they are. Do they use job boards? (monster, careerbuilder, etc) How effective is this? They are looking at the same talent as everyone else in the biz. Are they networking? This is key because they will meet people who are working (passive candidates) and build relationships so that they hear when great talent starts to look elsewhere before anyone else.
3. Are they stable? Dependable? There are several small local companies that do an excellent job. But be careful. It's best to partner with a company that has a history. That has a track record of success. And that has the financial resources and wherewithal to be there over time for you. Not just there for your needs today, but also for around the corner. I don't like having to retell my story to a fly-by-night outfit over, and over, and over, and over and then learn that they're out of business or their time is being monopolized by a single "larger" account. Consistency and continuity is so valuable.
4. Quality of the recruiters. This might be the hugest factor. Recruiting isn't a science. It's an art. If you don't get a vibe after talking to one of the agency's recruiters that they've "been there, done that" and can't wait to do it again... keep looking. Look for energy... enthusiasm... attention to detail... a strong desire to please/get results... and people are really doing things wrong if they don't ask you lots of questions. If you haven't spilled your guts as to what you're looking for guess what? You ain't gonna get it. If they can't repeat back off the tip of their tongues to you what you told them is important and you aren't seeing it in the first wave of candidates then... "Houston, we have a problem."
5. You've heard of "dine & dash"? Well what you don't want to see is "place & dash". This is when companies place a temp employee or direct hire with your organization and it becomes harder to get them on the phone than getting G.W. Bush on the horn. A question or concern arises and they better be as accessible as a Starbucks at O'Hare airport (there were actually sixty-one of them last time I checked).
6. A guarantee. If something doesn't work out with the staffer the agency got you what's next? Do they replace the person? What does it cost you? Do you have some awfully few number of days or hours to get back to them before you're stuck with someone? Is there a track record of making things right with customers? Any doubts stick a fork in them because they're done.
7. Skills assessment/skills training. If you are in the interview and the candidate tells you that a pivot table has something to do with college basketball then you've just experienced surgery on a Disney cartoon character (a Mickey Mouse operation). Time to upgrade. Ask this question on the front end (How do you assess hard skills?).
8. Quality, quality, quality. I don't know about you, but I sure appreciate when stores, restaurants, or any business for that matter, does things the right way each and every time. Look for companies, for instance, that are ISO 9001:2000 certified. And always enlist help from companies that have a clearly defined quality policy.
9. Build a partnership with a company that truly values your business. If a staffing company doesn't treat you like you matter or convey that they are thankful for the fact that they earned your business... that's a problem. When things get tough and you need to find talent that's not so easy to identify, attract, and secure would someone who's a little flaky from the get-go be a good option. Not so much.
10. Breadth of service. The last on the list (for this blog entry) but not the least important! Can the company you're going to work with do it all? Can they help you with payroll servicing? Can they help you retain part time talent? Can they help you with temp-to-hire and direct hire scenarios? Can they help your organization outside accounting and finance so that the volume of business you do can help you leverage better pricing? And most importantly, do they have answers to the things that concern you? Notice how quick they respond to you when you ask for help with something they don't "charge you for".

Another thing to look out for is turnover. If recruiters are burnt out or perennially dissatisfied they can't do a top notch job for you.