IPMA-HR Bulletin
February 3, 2006
AARP Study Debunks Myths, Shows 50+ Workers as a Solid Investment A landmark new report that challenges myths about workers 50 and older shows that those employees often have productive advantages that make them far more cost-effective than is generally believed. The report, "The Business Case for Workers Age 50+", prepared by global professional services firm Towers Perrin for AARP, noted that there is a common business perception that 50+ workers "cost more" than younger workers. The AARP/Towers Perrin analysis said that the extra per-employee total compensation cost of retaining or attracting more 50+ workers ranges from negligible to three percent in key industries. At the same time, the research found that older workers are more motivated to exceed expectations on the job than younger workers. Earlier Towers Perrin research found that motivation is highly correlated with engagement, making it clear that both engagement and motivation increase with age. Moreover, this research found a strong relationship between employee engagement and financial performance, showing that companies with higher levels of employee engagement tend to outperform those with lower levels of engagement. "These findings are especially important because the workforce is aging, labor shortages are projected in a number of sectors, and many employees intend to continue to work beyond the retirement age," said AARP CEO Bill Novelli in releasing the study today."Keeping people in the workforce longer benefits the employee, the employer and society as a whole," Novelli said. "The report concludes that enhancing retention or hiring of older workers can result in marginal differences in total cost for the talent pools studied, while experienced people can offer a distinct performance advantage in many key roles," said Towers Perrin Principal Roselyn Feinsod. The AARP study comes at a time when projections show that by 2012, nearly 20 percent of the workforce will be age 55 or older, a jump from under 13 percent in 2000. This pattern is expected to continue well into the future, given that AARP surveys have shown that more than two-thirds (68 percent) of 50 to 70 year old workers say that they plan to work into their retirement years or never retire. "The aging of the population may put employers in a tight situation," said Alicia Munnell, director of the Center for Retirement Research at Boston College, in responding to the study. "They will no longer be able to rely on a rapidly growing group of younger workers in the future. Increased employment of older workers seems like a natural solution, but employers will have to change their hiring and retention policies if they want to attract these highly productive older individuals," Munnell added. AARP commissioned the study in order to assess the strength of the business case for investing an employer's resources to retain and attract workers 50+. Towers Perrin developed the analysis based on a comprehensive review of proprietary Towers Perrin sources, AARP research, and public sources, as well as other third party sources. These included demographic data, benefit program data on over 700 companies, and research with workers and employers. The report highlights four industriesâ?"energy, financial services, health care and retailâ?"but the findings apply to companies in other sectors as well. Among the major points of the report are these:
Without exception, the 10 major employers interviewed for the study said that age 50 plus workers have experience and other desirable traits that translate into a tremendous plus for their businesses. AARP is a nonprofit, nonpartisan membership organization that helps people 50+ have independence, choice and control in ways that are beneficial and affordable to them and society as a whole. Business Wire Article Reports "Retirement Only a Breather" According to recently released research sponsored by Putnam Investments, about seven million Americans who had been retired at one time have returned to work for pay. The average sabbatical taken by once retired individuals is one-and-a-half years. Most are in a job requiring at least the same skill and experience levels as their prior position. This was reported in an article titled "Retirement Only a Breather: 7 Million Go Back to Work", Putnam Study Says; Most Return by Choice; But Large Gap Separates "Wanted To" and "Had To" published by Business Wire Dec. 8, 2005. The Putnam-sponsored study, "The Working Retired," offers a view of workers who have reentered the workforce and it highlights vivid economic and emotional contrasts within this population. Putnam's research was based on a national survey of 1,726 retirees who are working; they have an average age of 61. "A closer look at the working retired population reveals a dichotomy: two-thirds of working retired survey respondents returned to the workforce because they 'wanted to' but the remaining one-third went back out of economic necessity," Business Wire reported. "They 'had to.'" Average household investable assets for these 'wanted to' workers are almost $550,000, compared to average investable assets of $140,000 for the'had to' worker." Founded in 1937, Putnam Investments is one of the nationâ?Ts oldest and largest money management firms. Putnam has headquarters in Boston and offices in London and Tokyo. For more information, go to www.putnaminvestments.com. To read the above Business Wire article in its entirety, click here. Federal Government Employs 1.84 Million In a FedNews Online article dated Feb. 1, the average federal employee ha quite a bit of experience, according to an Office of Personnel Management report released earlier this week. "The typical fulltime federal employee has served an average of 16.5 years in the federal sector and is 46.8 years old, according to OPM's 2004 Demographic Profile of the Federal Workforce," the article said. The OPM report updates the Central Personnel Data File by collecting agency submitted employee information. The File is updated every two years. According to the report:
The report included all federal executive department employees except employees of the:
To read the article in its entirety, click here. Congress returned to Washington this week to begin work in earnest. Beginning with the confirmation of Justice Samuel Alito to the Supreme Court and moving on to budget issues, lawmakers have been busy during the first week of the second session of the 109th Congress. One of the most important issues this week has been the budget. The House of Representatives passed a budget package that had been approved by the Senate prior to adjournment. The bill, S. 1932, reauthorizes the welfare reform legislation, Temporary Assistance to Needy Families (TANF), through the end of 2010. The final bill requires states to increase the percentage of TANF participants that are working but does not increase the number of hours individual participants must work in order to receive benefits. An earlier version of the House bill required participants to work 40-hour workweeks but was heavily opposed. The president's 2007 budget is expected to be delivered to Congress on February 6, 2006. According to the Feb. 2 CQ Today Midday Update the budget will assume the approval of a $90 billion supplemental spending bill to fund the war in Iraq, as well as to fund hurricane recovery and a potential bird flu outbreak. The full budget includes the spending priorities for fiscal year 2007, but it is not law. Members of Congress are also expected to address pension reform relatively quickly. The Bureau of National Affairs Inc. reports that Senator Chuck Grassley (R-Iowa), chair of the Senate Finance Committee, said that final passage of the pension legislation could come as soon as March. A conference committee has not yet been scheduled to work out the differences between the House (H.R. 2830) and Senate (S. 1783) bills, but both versions contain important public sector provisions, including the elimination of the 10 percent for early withdrawals from DROP plans and clarifications of the purchase of service credits. Another provision would allow, for the first time, public safety officers to use up to $5,000 per year of their pension benefit for healthcare or long-term care insurance. Pension issues, like other workforce issues, may receive more attention this year now that Representative John Boehner (R-Ohio), current chair of the House Education and Workforce Committee, has been selected as House Majority| Leader, bringing his experience in employment and labor law with him to the leadership position. February 9 Webinar "The Overtime Regulations: Their Impact on Public Employers a Year and a Half Later Brian P. Walter, a partner with the California-based Liebert Cassidy Whitmore who has represented clients in all aspects of employment and labor law, including counseling on employment and labor relations matters, labor negotiations, training and presentations, employee discipline matters, administrative hearings, investigations and litigation, will present information for an IPMA-HR webinar, "The Overtime Regulations: Their Impact Public Employers a Year and a Half Later," to be held Feb. 9 from 1 p.m. until 2:30 p.m. Eastern Time. The webinar will examine the practical impact of the new Department of Labor regulations upon public employers, including:
The webinar will include a discussion of the practical issues faced by public agencies that were required to reclassify employees as exempt or non-exempt after the new regulations were implemented. The price to participate in the Feb. 9 webinar is $150 for non-members and $99 for members. Or save by registering for any combination of four sessions of webinars! IPMA-HR members can purchase any four webinars for the low price of just $345, and non-members pay just $550 for any four calls. Pricing is based on the line purchased, not by number of participants on the call, so be sure to include your entire HR staff. Click here to register online, or to register by phone call Premiere Global directly at (800) 289-0579 and reference event code 5536846. Once registered, you will receive a confirmation e-mail with a toll-free number and simple instructions to access the audio portion of the seminar. The Web link, instructions on how to participate in the visual portion of the seminar and any available session reference materials will be emailed to you approximately three business days prior to the webinar. Deadline/Cancellations: Registration deadline is Feb. 8, 2006 at 12:00 p.m. (Eastern Time). Refund requests must be made in writing and received by IPMA-HR no later than Feb. 3, 2006 to receive a full refund. Requests received after Feb. 3, 2006 will receive a 50 percent refund. Substitutions will be allowed or a credit will be given towards a future webinar/audio conference. For more information, contact IPMA-HR at (703) 549-7100, or e-mail meetings@ipma-hr.org. IPMA-HR Exclusive Member Discount on Job Postings at Monster.com IPMA-HR'Ts partnership with Monster Government Solutions provides you with a highly effective method of reaching qualified public sector human resource professionals. Monster, the 11th most visited site on the Internet and the leading global online career network, serves more than 30 million job seekers worldwide. Your IPMA-HR membership entitles you to receive an exclusive member discount of 25 percent off the Monster list price for a single online job posting. IPMA-HR members pay only $300! Post your jobs through IPMA-HR's Career Center and your position listing will instantly be posted on Monster.com for 60 consecutive days. Start receiving resumes today! To post your positions on IPMA-HRâ?Ts Career Center, visit the IPMA-HR Web site at www.ipma-hr.org and click on "Advertising and Job Posting." The International Public Management Association for Human Resources (IPMA-HR) has issued its certification designation, IPMA Certified Professional (IPMA-CP) to more than 1,400 people in seven countries that include: Canada, China, Korea, Kuwait, the Philippines, Sri Lanka, and the United States. The purposes of the certification program are to encourage continuous learning and help to develop the next generation of human resource professionals. The certification program contains a behavioral component based on the 22 competencies contained in the IPMA-HR competency model and a human resource technical component that is determined by an assessment of the technical experience of the applicants. Applicants need to pass a multiple-choice examination based on the competencies in order to be certified. The certification program can be tailored to ensure its global relevance. For additional information about the certification program, click here, or contact Neil Reichenberg, IPMA-HR executive director, at nreichenberg@ipma-hr.org. Lancaster and Stillman Confirmed as Keynote Speakers for Oct. 7-11, 2006 IPMA-HR International Training Conference, "Solving the Generational Puzzle" It's confirmed! The 2006 IPMA-HR International Training Conference, set for Oct. 7-11 at the Flamingo Resort in Las Vegas, will feature keynote speakers Lynne Lancaster "a classic Baby Boomer"and David Stillman "an entrepreneurial Generation Xer" who have built a national reputation by exposing the sometimes frustrating, often hilarious, and always thought-provoking pitfalls created by generation gaps in the workplace and marketplace. This year's theme is "Solving the Generational Puzzle: Making the Pieces Fit." Lancaster and Stillman, the authors of When Generations Collide: Who They Are. Why They Clash. How to Solve the Generational Puzzle at Work (HarperCollins 2002), speak and write about the generations in humorous, entertaining ways, and at the same time give sound, practical advice on how to bridge the gaps and build a productive and effective work force. Their Boomer/Xer camaraderie is contagious, and the passion and practicality they bring to the topic are memorable. Conference highlights include:
For more information visit www.ipma-hr.org or call (703) 549-7100. Make Plans Now to Attend the 30th Annual IPMAAC Conference this June in Las Vegas Celebrate the 30th anniversary of the International Public Management Association - Assessment Council (IPMAAC) June 25-28 this year at the 30th Annual IPMAAC Conference, which will be held at the Riviera Hotel in Las Vegas. This year's theme is "Winning thru Assessment: 30 Years of Adding Value to Organizations." The annual IPMAAC conference offers professionals the opportunity to obtain critical knowledge and experience needed to thrive in today's challenging personnel assessment environment. Also, conference goers will get the chance to share their experiences, the latest research initiatives and ideas with like-minded colleagues. IPMAAC is an organization for assessment professionals in public and private sector organizations. Its membership includes more than 300 persons actively engaged in practice, research, and training in personnel assessment. For more information about the IPMAAC conference, contact Carrie Hoover at choover@ipma-hr.org. February 9 March 9 March 10 |March 30-31 April 13 April 30-May 3 May 3-6 May 11 June 8
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