Managing the Risks of a
Graying Workforce
TAL 005
Recording of this session via any media type is strictly prohibited.

What to Expect
After attending this session, you should be able to:
• Identify key risk issues associated with the march of the Baby Boom generation toward retirement
• Formulate options for workplace accommodation, knowledge transfer, and employee recruitment/retention to address aging workforce exposures
Recording of this session via any media type is strictly prohibited.
Page 2

Your Presenters
:
• Jerry Johnson
Risk Manager, BMW North America
• Dan McGarvey, CPCU, ARM
Managing Director, Marsh
• Philip Tenenbaum
Senior Partner, Mercer
Recording of this session via any media type is strictly prohibited.
Page 3

BMW North America
• Manufacturing hub in Spartanburg, SC
• Five million ft 2 /8,000 jobs – and growing
• 1,250 cars per day – 70% for export
Recording of this session via any media type is strictly prohibited.
Page 4

Building the Ultimate Driving Machines
Recording of this session via any media type is strictly prohibited.
Page 5

Our Seasoned Workforce
• BMW began operations in SC in 1994
• Our workforce has been very stable
• The gradual aging of our workforce requires that we continually refine our processes and workplace, but also take assertive steps to address their changing needs
Recording of this session via any media type is strictly prohibited.
Page 6

There’s No Use Denying It…
• Personal anecdotes
• Client experiences
• By 2016, one third of the US workforce will be over 50
• In the past 30 years, the average age of the US worker has risen by seven years
• The economic downturn has delayed retirement for many
Recording of this session via any media type is strictly prohibited.
Page 7

Accommodating Older Workers –
A Business Imperative
“With their departure, we will lose some of the characteristics that define the Baby Boomer generation ambitious, idealistic, competitive, results-driven, optimistic, and teamwork oriented – Unless companies creatively develop strategies to retain older workers and transition their knowledge to younger workers.”
NTAR Report – March 2012
Recording of this session via any media type is strictly prohibited.
Page 8

The Attitude Advantage
Workers > 60 All Workers
Job satisfaction ranked “High”
Loyalty to employer ranked “High”
67%
75%
44%
46%
Source: Met Life
Recording of this session via any media type is strictly prohibited.
9
Page 9

Older Worker Myths
• They are more likely to have injuries
• They have failing memories
• They are less productive
• The are irascible
• They relate poorly to customers
• They will be late more often due to health issues
• They bring outdated skills
Recording of this session via any media type is strictly prohibited.
Page 10

Older Workers in Fact…
• Bring a variety of valuable experiences
• Are more reliable
• Have higher retention rates
• Are more productive
• Are more flexible on scheduling
• Serve as mentors to younger colleagues
• Generally bring less “drama” to the workplace
Recording of this session via any media type is strictly prohibited.
Page 11

Older Worker Advantages
Older workers have consistently higher levels of engagement, which may be defined as a “positive, enthusiastic, and affective connection with the work that motivates an employee to invest in getting the job done – not just ‘well’ – but with excellence”.
Engaged employees use fewer sick days, are more productive, and create stronger customer relationships.
Catsouphes and Costa, 2009
Recording of this session via any media type is strictly prohibited.
Page 12

Do You Espouse a Diverse Workforce?
Recording of this session via any media type is strictly prohibited.
Page 13

Do You Espouse a Diverse Workforce?
“Less than one third of employers surveyed have adopted strategies and practices to recruit employees of diverse ages…
We believe it is essential to retain workers of all generations in the recognition of the strength of a multi-generational workforce and its associated dynamics.”
Sloan Center on Aging - 2011
Recording of this session via any media type is strictly prohibited.
Page 14

Workplace Accommodations
• Vision/lighting
• Hearing
• Flexibility/mobility
• Learning Style
Recording of this session via any media type is strictly prohibited.
Page 15

Retaining Older Workers
• Adopt the workplace to account for slowly eroding physical abilities
• Recognize that older workers learn differently
• Show respect in their treatment
• Formalize a knowledge transfer and mentoring program
• Consider a phased retirement option, project work, and/or sabbaticals
Recording of this session via any media type is strictly prohibited.
Page 16

What to Expect
• Appreciate what is inside employees’ minds
(what attracts and retains them)
• Recognize the key advantages of older workers in the workplace
• Maximize the ROI on human capital investment (the Talent Management
Continuum)
Recording of this session via any media type is strictly prohibited.
.
Page 17

Inside Employees’ Minds
• Older Americans’ Attitudes on Work and
Retirement
• Younger Americans’ Attitudes on Work
Recording of this session via any media type is strictly prohibited.
Page 18

Older Americans’ Attitudes on
Work and Retirement
• The line between working and retirement is shifting
• Changing attitudes on work and retirement
• Feelings about Social Security
Source: Associated Press-NORC Center for Public Affairs Research, 2013
Survey
Recording of this session via any media type is strictly prohibited.
Page 19

Younger Americans’ Attitudes on Work
• A challenging contradiction for employers


Job satisfaction
Recommend as a good place to work
 More likely to leave
• More in common across borders (than older workers)
 “Age” effect
 “Cultural” effect
Source: Inside Employees’ Minds, 2011 Mercer Survey
Recording of this session via any media type is strictly prohibited.
Page 20

Benefits of Older Workers in the
Workplace
• Experience
• Loyalty
• Knowledge transfer
Recording of this session via any media type is strictly prohibited.
Page 21

Identifying the Risk: A Case in Point –
The Oil & Gas Industry Talent Outlook
• Age as a Proxy for Experience
• Buying vs. Building
• Current and Planned Sourcing Strategies
• Addressing Talent Shortages
• Expected ROI If Talent Challenges Are
Addressed
Recording of this session via any media type is strictly prohibited.
Page 22

Age as a Proxy for Experience
Scarce and
Critical
Talent
23
Source: Mercer’s global energy vertical labor database as of 1/1/2012. Projection to
2017 is based on actuarial assumptions of retirement, attrition and mortality, and no new hires are assumed to enter the population .
Today’s bi-modal workforce; 33% of the population within 5 years of retirement age
In 5 years, this population is expected to drop 50%-80%
Recording of this session via any media type is strictly prohibited.
Page 23

Buying Versus Building
Source: Oil and Gas Talent Outlook and Workforce Practices, 2013 Mercer Survey
24 Recording of this session via any media type is strictly prohibited.
Page 24

Current and Planned Sourcing Strategies
Source: Oil and Gas Talent Outlook and Workforce Practices, 2013 Mercer Survey
1 Directional indication of change in reliance reflects planned strategy indicated by the majority of respondents to the item.
2 Half (50%) of the respondents anticipate an increase, while 47% foresee no change in their reliance on this source for external hires.
25 Recording of this session via any media type is strictly prohibited.
Page 25

Addressing Talent Shortages
Source: Oil and Gas Talent Outlook and Workforce Practices, 2013 Mercer Survey
26 Recording of this session via any media type is strictly prohibited.
Page 26

Expected ROI If Talent Challenges Are Properly Addressed
Source: Oil and Gas Talent Outlook and Workforce Practices, 2013 Mercer Survey
27 Recording of this session via any media type is strictly prohibited.
Page 27

28
Addressing the Risk: Talent Management
Context and Continuum
Capacity Capability
TALENT ACQUISITION
(“buy” strategy)
WORKFORCE PLANNING
(supply & demand)
TALENT DEVELOPMENT
(“build” strategy)
CONTINGENT & MOBILE
WORKFORCE
(“borrow” strategy)
ATTRACTION, RETENTION, &
ENGAGEMENT
TALENT DEPLOYMENT
(“transform” strategy)
Contribution
Recording of this session via any media type is strictly prohibited.
Cost
Page 28

29
Mitigating Retirement Risk
• Review of current retirement programs to ensure alignment with broader strategies
• “Stay bonus” tied to succession planning as well and as productivity/performance...
• Nonqualified pension benefits offered to targeted employees or groups
• Other possible benefits:
• Caregiver support
• Flexible work arrangements/sabbaticals
Recording of this session via any media type is strictly prohibited.
April 12,
2020

BMW – A Multifaceted Approach
• Pre-placement activities
• Ever-expanding use of technology, robotics, and mechanical assist devices
• Evaluation of each work station with continuous focus on ergonomic solutions
• Job rotation several times per shift
• On-site physical therapists
•
• Body mechanics and work conditioning
Physical therapy and work hardening
Recording of this session via any media type is strictly prohibited.
Page 30

Pre-Placement Activities
All personnel are required to satisfy preplacement activities, including:
•
•
• Physical evaluation
Essential functions testing
Drug screening
Recording of this session via any media type is strictly prohibited.
Page 31

BMW – The Wellness Edge
• Condition management programs
•
•
•
• Weight management
High blood pressure management
Cholesterol level management
Diabetes management
• On-site EAP counselor
• Vision services
• Rehabilitation support
Recording of this session via any media type is strictly prohibited.
Page 32

Wellness – A Year-Round Focus
• Employee wellness focus
•
•
•
•
•
• Comprehensive annual health assessments
Healthy diet meal station
Discounts at local fitness centers
Smoking cessation assistance
Free vaccines
Quarterly health newsletter
Recording of this session via any media type is strictly prohibited.
Page 33

BMW Manufacturing – Associate and
Family Health Center
• 25,000 square foot facility opened last year
• A $5 million dollar investment in employee health
• Available to employees and their families
• Doctors, RNs, and physical therapists on-site
• General family health and primary care
• Vision and dental care
• Physical therapy
Recording of this session via any media type is strictly prohibited.
Adapted from Source: ©Teacher & Educational Development, University of New Mexico School of Medicine, 2005
Page 34

BMW Manufacturing – Associate and
Family Health Center
Recording of this session via any media type is strictly prohibited.
Adapted from Source: ©Teacher & Educational Development, University of New Mexico School of Medicine, 2005
Page 35

Questions
Recording of this session via any media type is strictly prohibited.
Page 36