1. SHRM Survey Findings:SHRM-AARP Strategic Workforce Planning April 9, 2012

2. Definitions Strategic workforce planning assessment: Evaluating an organizations current and future critical talentneeds using workforce modeling and scenario planning to identify potential skills gaps and talent shortages. Older workers: Employees at an organization that are age 50 or older. Younger workers: Employees at an organization that are age 31 and younger.SHRM-AARP Strategic Workforce Planning SHRM 2012 2 3. Key Findings Have organizations conducted strategic workforce planning assessments to evaluate their current andfuture critical talent needs? Two-fifths of organizations (40%) have conducted strategic workforce planningassessments to identify their future workforce needs for the next 5 years. About one-third of organizationshave identified their potential skills gaps for the next 5 years (36%). Twenty-nine percent of organizationshave analyzed the impact of workers age 50 and over leaving their organizations. Are organizations preparing for a potential shortage of talent when older workers begin to retire ingreater numbers and leave the workforce? Although many organizations are at the initial stages of thepreparation process, there has been a slight increase in awareness of a potential shortage of youngerworkers with the requisite skills needed to replace older workers who are retiring. More than one-quarter(27%) of organizations indicated they are becoming aware of the issue, an increase of nine percentagepoints from 2010 (18%). Thirty-nine percent of organizations are beginning to examine internal policies andmanagement practices to address this issue (e.g., succession planning, phased retirement, etc.), showing nodifference from 2010. Additionally, roughly one-fifth of organizations (18%) indicated that no changes werenecessary after their evaluation, a decrease of 12 percentage points from 2010 (30%). How much of an issue are the potential losses of talent for organizations and industries as older workersretire or leave their organizations over the next decade? Approximately one-half (46%) of organizationsbelieve that potential loss of talent over the next decade is a potential problem for their organization while27% indicated that it is not a concern. As older workers exit the workforce over the next decade, 39% oforganizations believe that this will cause potential problems for their industry; however, approximately one-quarter (24%) do not foresee problems for their industry. SHRM-AARP Strategic Workforce Planning SHRM 2012 3 4. Key Findings Which basic and applied skills do older workers have an advantage in compared with younger workers?Approximately one-half of organizations (51%) indicated that writing in English (grammar, spelling, etc.) wasthe top basic skill observed among older workers that is not readily seen among younger workers. Fifty-twopercent of organizations reported professionalism/work ethic as the top applied skill that younger workersare less likely to exhibit. Which steps are organizations taking to retain and recruit older workers in order to prepare for thepotential skill gaps that may occur as younger workers enter and older workers exit the workforce? Nearlyone-half of organizations (45%) have increased training and cross-training efforts. Roughly one-third (38%)of organizations have also developed succession plans and/or hired retired employees as consultants ortemporary workers (30%). Organizations are also offering flexible work arrangements (27%) and offeringpart-time positions to older workers (24%). SHRM-AARP Strategic Workforce Planning SHRM 2012 4 5. Has your organization conducted a strategic workforce planning assessment to?Identify future workforceneeds over the next 5 40%years? Identify potential skills gaps over the next 5 years? 36%Analyze the impact of workers age 50+ leaving29% your organization?Note: n = 421-423. Percentages shown indicate only the respondents who answered Yes to this question.SHRM-AARP Strategic Workforce Planning SHRM 2012 5 6. Has your organization conducted a strategic workforce planning assessment to?Comparisons by organization sectorPublicly owned for-profit organizations are more likely than privately owned for-profit organizations to have conducted a strategicworkforce planning assessment to identify potential skills gaps over the next 5 years.Comparisons by Organization SectorPublicly owned for-profit (50%)> Privately owned for-profit (30%) Comparisons by organization staff size Organizations with 25,000 or more employees are more likely than organizations with 1 to 2,499 employees to have conducted a strategic workforce planning assessment to identify future workforce needs over the next 5 years.Comparisons by Organization Staff Size 1 to 99 employees (25%) 25,000 or more employees (66%) >100 to 499 employees (36%)500 to 2,499 employees (36%)Note: Only statistically significant differences are shown. SHRM-AARP Strategic Workforce Planning SHRM 2012 6 7. Has your organization conducted a strategic workforce planning assessment to?Comparisons by organization staff size (continued)Organizations with 25,000 or more employees are more likely than organizations with 1 to 2,499 employees to have conducted astrategic workforce planning assessment to identify potential skills gaps over the next 5 years.Comparisons by Organization Staff Size1 to 99 employees (23%)25,000 or more employees (63%)>100 to 499 employees (33%)500 to 2,499 employees (33%)Organizations with 2,500 or more employees are more likely than organizations with 1 to 499 employees to have conducted astrategic workforce planning assessment to analyze the impact of older workers leaving the organization.Comparisons by Organization Staff Size 2,500 to 24,999 employees (47%)1 to 99 employees (22%)> 25,000 or more employees (49%)100 to 499 employees (22%)Note: Only statistically significant differences are shown. SHRM-AARP Strategic Workforce Planning SHRM 2012 7 8. There may be a shortage of younger workers with the skills and qualificationsnecessary to replace the older workers who are preparing to retire. Which of thefollowing best describes your organizations preparation for this change?Beginning to examine internal39%policies and management practices39%Just becoming aware of the issue27% 18% Have examined our workforce and 18% determined that no changes in our 30% policies and practices are necessary Have proposed specific policy and7%management practice changes 4%Have implemented specific policies 2012 (n = 326) 5% and management practices5%2010 (n = 337)Have agreed internally on a plan to4% change policies and management 4% practicesNote: Respondents who answered Dont know were excluded from this analysis. SHRM-AARP Strategic Workforce Planning SHRM 2012 8 9. Overall, how would you describe your organizations and industrys potential lossof talent as a result of the possibility of the older workers retiring, or leaving theorganization for other reasons, over the next decade? It is a crisis It is a problem It is a potential It is not a problem problemOrganization 1% 26% 46% 27%(2012; n = 407)Organization 2% 20% 45% 33%(2010; n = 369) It is a crisis It is a problem It is a potential It is not a problem problemIndustry 7% 30% 39% 24%(2012; n = 374)Industry 3% 29% 47% 21%(2010; n = 317)Note: Respondents who answered Dont know were excluded from this analysis.SHRM-AARP Strategic Workforce Planning SHRM 2012 9 10. In your opinion, what is/are the greatest basic skills gap between older workersand younger workers? Basic skills for which older workers are perceived as having the Percentage advantageWriting in English (grammar, spelling, etc.) 51%Technical (computer, engineering, mechanical, etc.)33%Mathematics (computation)16%Reading comprehension (in English) 13%English language (spoken)12%Government/economics 10%History/geography 6%Science 5%Foreign languages 3%Humanities/arts 1%Other 9%Note: n = 421. Respondents who answered Dont know were excluded from this analysis. Respondents were asked to select their top two choices.Percentages do not equal 100% due to multiple response options.SHRM-AARP Strategic Workforce Planning SHRM 2012 10 11. In your opinion, what is/are the greatest basic skills gap between older workers and younger workers?Comparisons by organization sectorGovernment agencies are more likely than privately owned and publicly owned for-profit organizations to believe thatgovernment/economics is the greatest basic skills gap that younger workers have when compared with older workers.Comparisons by Organization Sector Privately owned for-profit (8%) Government agencies (23%) > Publicly owned for-profit (5%)Note: Only statistically significant differences are shown. SHRM-AARP Strategic Workforce Planning SHRM 2012 11 12. In your opinion, what is/are the greatest applied skills gap between older workersand younger workers? Applied skills for which older workers are perceived as having the Percentageadvantage Professionalism/work ethic 52% Critical thinking/problem solving27% Written communications 16% Lifelong learning/self-direction 16% Leadership 15% Oral communications12% Ethics/social responsibility 12% Information technology application 11% Teamwork/collaboration 10% Creativity/innovation 4% Diversity 2% Other 2%Note: n = 421. Respondents who answered Dont know were excluded from this analysis. Respondents were asked to select their top two choices.Percentages do not equal 100% due to multiple response options.SHRM-AARP Strategic Workforce Planning SHRM 2012 12 13. Has your organization taken any of the steps below to prepare for potential skillgaps and/or retain and recruit older workers?YesNoIncreased training and cross-training efforts45%55%Developed succession plans 38%62%Hired retired employees as consultants or temporary workers30%70%Offered flexible work arrangements (e.g., job sharing, telework, etc.) 27%73%Offered part-time positions to older workers 24%76%Offered retirement planning programs 23%77%Developed processes to capture institutional memory/organizational 17%83%knowledge from employees close to retirementIncreased recruiting efforts to replace retiring employees 17%83%Offered financial planning programs16%84%Offered wellness programs that are attractive to older workers 14%86%Provided training to upgrade skills of older workers 13%87%Encouraged older workers to work past traditional retirement age 12%88%n = 415SHRM-AARP Strategic Workforce Planning SHRM 2012 13 14. Has your organization taken any of the steps below to prepare for potential skillgaps and/or retain and recruit older workers? (continued) YesNoTailored benefits offerings to encourage older workers to stay with11%89%organizationIncreased automated processes (e.g., use of robotics)9%91%Created new roles within your organization, specifically designed to 9%91%bridge a skills or knowledge gapProvided opportunities for older workers to transfer to jobs with 8%92%reduced pay and responsibilitiesAsked older workers for feedback via survey or other mechanism 4%96%about what would encourage them to stay with the organizationEstablished alternative career tracks for older workers3%97%Other5%95%n = 415 SHRM-AARP Strategic Workforce Planning SHRM 2012 14 15. Has your organization taken any of the steps below to prepare for potential skill gaps and/or retain and recruit older workers?Comparisons by organization sectorPublicly owned for-profit organizations are more likely than privately owned for-profit, nonprofit and government organizations tohave developed succession plans in preparation for potential skills gaps that may occur as younger workers enter and olderworkers exit the workforce.Comparison by Organization SectorPrivately owned for-profit (37%)Publicly owned for-profit (56%) > Nonprofit (31%)Government (26%)Government agencies are more likely than publicly owned for-profit organizations to have developed processes to captureinstitutional memory/organizational knowledge from employees close to retirement to retain and recruit older workers inpreparation for potential skills gaps that may occur as younger workers enter and older workers exit the workforce.Comparison by Organization Sector Government (32%) >Publicly owned for-profit (9%)Government agencies are more likely than publicly owned for-profit organizations to have encouraged older workers to work pasttraditional retirement age in preparation for potential skills gaps that may occur as younger workers enter and older workers exitthe workforce..Comparison by Organization Sector Government (26%) >Publicly owned for-profit (7%)Note: Only statistically significant differences are shown.SHRM-AARP Strategic Workforce Planning SHRM 2012 15 16. Has your organization taken any of the steps below to prepare for potential skillgaps and/or retain and recruit older workers?Comparisons by organization sector (continued)Government agencies are more likely than publicly owned for-profit or privately owned for-profit organizations to have hired retiredemployees as consultants or temporary workers in preparation for potential skills gaps that may occur as younger workers enterand older workers exit the workforce.. Comparisons by Organization Sector Publicly owned for-profit (24%) Government (51%) > Privately owned for-profit (22%)Note: Only statistically significant differences are shown.SHRM-AARP Strategic Workforce Planning SHRM 2012 16 17. Has your organization taken any of the steps below to prepare for potential skill gaps and/or retain and recruit older workers?Comparisons by organization staff sizeOrganizations with 25,000 or more employees are more likely than organizations with 1 to 2,499 employees to identify futureworkforce needs over the next 5 years in preparation for potential skills gaps that may occur as younger workers enter and olderworkers exit the workforce.Comparisons by Organization Staff Size1 to 99 employees (25%)25,000 or more employees (66%)>100 to 499 employees (36%)500 to 2,499 employees (36%)Organizations with 2,500 or more employees are more likely than organizations with 1 to 499 employees to have developedsuccession plans in preparation for potential skills gaps that may occur as younger workers enter and older workers exit theworkforce. Comparisons by Organization Staff Size2,500 to 24,999 employees (58%)1 to 99 employees (27%)>25,000 or more employees (66%) 100 to 499 employees (31%)Note: Only statistically significant differences are shown. SHRM-AARP Strategic Workforce Planning SHRM 2012 17 18. Has your organization taken any of the steps below to prepare for potential skill gaps and/or retain and recruit older workers?Comparisons by organization size (continued)Organizations with 25,000 or more employees are more likely than organizations with 1 to 499 employees to have increasedrecruiting efforts to replace retiring employees in preparation for potential skills gaps that may occur as younger workers enterand older workers exit the workforce. Comparisons by Organization Size 1 to 99 employees (12%)25,000 or more employees (37%) > 100 to 499 employees (14%)Organizations with 500 to 24,999 employees are more likely than organizations with 1 to 99 employees to have hired retiredemployees as consultants or temporary workers in preparation for potential skills gaps that may occur as younger workers enterand older workers exit the workforce. Comparisons by Organization Size 500 to 2,499 employees (38%) > 1 to 99 employees (16%) 2,500 to 24,999 employees (42%)Organizations with 500 to 2,499 employees are more likely than organizations with 1 to 99 employees to have offered financialplanning programs in preparation for potential skills gaps that may occur as younger workers enter and older workers exit theworkforce. Comparisons by Organization Size500 to 2,499 employees (23%) >1 to 99 employees (7%)Note: Only statistically significant differences are shown.SHRM-AARP Strategic Workforce Planning SHRM 2012 18 19. How effective has the step(s) your organization has taken been in preparing forpotential skill gaps and/or retaining and recruiting older workers?Too soon Not at allSomewhat Very toeffectiveeffective effectiveevaluate Developed succession plans (n = 157) 27%3% 52% 17% Created new roles within your organization, specifically26%6% 37% 31% designed to bridge a skills or knowledge gap (n = 35) Increased training and cross-training efforts (n = 179)24%1% 50% 26% Developed processes to capture institutional memory/organizational knowledge from employees 22%1% 56% 21% close to retirement (n = 68) Offered wellness programs that are attractive to older17%5% 53% 24% workers (n = 58) Offered financial planning programs (n = 66) 17%3% 52% 29% Increased recruiting efforts to replace retiring15%4% 62% 18% employees (n = 71) Offered part-time positions to older workers (n = 99)15%3% 38% 43%Note: Response options were only rated by respondents who indicated that their organization had taken the specified step to prepare for potential skill gapsand/or retain and recruit older workers. Percentages may not equal 100% due to rounding.SHRM-AARP Strategic Workforce Planning SHRM 2012 19 20. How effective has the step(s) your organization has taken been in preparing forpotential skill gaps and/or retaining and recruiting older workers? (continued)Too soon Not at allSomewhat Very toeffectiveeffective effectiveevaluate Offered flexible work arrangements (e.g., job sharing,14%2% 50% 35% telework, etc.) (n = 111) Tailored benefits offerings to encourage older workers11%7% 55% 27% to stay with organization (n = 44) Increased automated processes (e.g., use of robotics)11%0% 63% 26% (n = 35) Provided training to upgrade skills of older workers11%2% 64% 23% (n = 53) Offered retirement planning programs (n = 95)11%7% 51% 32% Provided opportunities for older workers to transfer to 9%9% 59% 22% jobs with reduced pay and responsibilities (n = 32) Encouraged older workers to work past traditional 8%6% 52% 34% retirement age (n = 50) Hired retired employees as consultants or temporary 4%4% 49% 43% workers (n = 123)Note: Response options were only rated by respondents who indicated that their organization had taken the specified step to prepare for potential skill gapsand/or retain and recruit older workers. Percentages may not equal 100% due to rounding.SHRM-AARP Strategic Workforce Planning SHRM 2012 20 21. To the best of your knowledge, what percent of employees, full-time and part-time, at your work location are age 50 or older?1%None1%27%1% to 19% 32% 44% 20% to 39%47%24%40 % to 59%17%2012 (n = 404)2010 (n = 363) 4%60% or more 3% SHRM-AARP Strategic Workforce Planning SHRM 2012 21 22. To the best of your knowledge, what percent of employees, full-time and part- time, at your work location are age 50 or older?Comparisons by organization sectorPrivately owned for-profit organizations are more likely than government agencies to have 1% to 19% of their staff age 50 or older. Comparisons by Organization SectorPrivately owned for-profit (33%) >Government (9%)Government agencies are more likely than privately owned for-profit organizations to have 40% to 59% of their staff age 50 or older. Comparisons by Organization Sector Government (40%) > Privately owned for-profit (19%)Comparisons by organization staff sizeOrganizations with 100 to 499 employees are more likely than organizations with 2,500 to 24,999 employees to have 1% to 19% oftheir staff age 50 or older. Comparisons by Organization Staff Size100 to 499 employees (34%) > 2,500 to 24,999 employees (12%)Note: Only statistically significant differences are shown. SHRM-AARP Strategic Workforce Planning SHRM 2012 22 23. Demographics: Organization IndustryPercentageManufacturing 19%Health care and social assistance 18%Professional, scientific and technical services 18%Public administration 12%Finance and insurance 10%Education services 8%Transportation and warehousing 8%Administrative and support and waste management and remediation services 6%Information, publishing industries 5%Utilities5%Accommodation and food services4%Construction 4%Note: n = 399. Percentages may not equal 100% due to multiple response options.SHRM-AARP Strategic Workforce Planning SHRM 2012 23 24. Demographics: Organization Industry (continued)Percentage Religious, grant-making, civic, professional and similar organizations4% Retail trade4% Repair and maintenance3% Wholesale trade 3% Agriculture, forestry, fishing and hunting2% Arts, entertainment and recreation2% Mining2% Real estate and rental and leasing2% Personal and laundry services 1% Other 9%Note: n = 399. Percentages may not equal 100% due to multiple response options.SHRM-AARP Strategic Workforce Planning SHRM 2012 24 25. Demographics: Organization Sector Privately owned for-profitorganization 46%Publicly owned for-profit 19%organization Nonprofit organization20% Government sector 12%Other4% Note: n = 398. Percentages do not equal 100% due to rounding.SHRM-AARP Strategic Workforce Planning SHRM 2012 25 26. Demographics: Organization Staff Size1 to 99 employees19% 100 to 499 employees33% 500 to 2,499 employees24% 2,500 to 24,999 employees 15% 25,000 or more employees 9%n = 390 SHRM-AARP Strategic Workforce Planning SHRM 2012 26 27. Demographics: OtherDoes your organization have U.S.-based Is your organization a single-unit organization or a multi-operations (business units) only or does itunit organization?operate multinationally? Single-unit organization: An organization inU.S.-based operations only70%which the location and the organization are32% one and the sameMultinational operations30% Multi-unit organization: An organization thatn = 407 68% has more than one location n = 404Which HR department/function was respondedFor multi-unit organizations, are HR policies and practicesabout throughout this survey? determined by the multi-unit headquarters, by each worklocation or both?Corporate (companywide) 69%Business unit/division17% Multi-unit headquarters determines HR policies50%and practicesFacility/location 14%Each work location determines HR policies andn = 2823%practicesA combination of both the work location andthe multi-unit headquarters determine HR48%policies and practicesNote: n = 282. Percentages do not equal 100% due to rounding.SHRM-AARP Strategic Workforce Planning SHRM 2012 27 28. SHRM-AARP Strategic Workforce Planning Methodology Response rate = 15% Sample composed of 430 randomly selected HR professionals from SHRMs membership Margin of error +/- 5% Survey fielded February 13, 2012 March 12, 2012 For more survey findings, visit www.shrm.org/surveys Follow us on Twitter: http://twitter.com/SHRM_ResearchProject leader:Christina Lee, SHRM ResearchProject contributors:Jean Setzfand, vice president, Financial Security, AARPEd Redfern, Jr., senior Issue specialist, Financial Security, AARPMark Schmit, Ph.D., SPHR, vice president, SHRM ResearchFred Emmert, Senior Speechwriter & Speakers Bureau Manager, SHRMEvren Esen, manager, SHRM Survey Research Center SHRM-AARP Strategic Workforce Planning SHRM 2012 28