No retiring early for the baby boomers…is 65 the new 40?
18 Wednesday Dec 2013
18 Wednesday Dec 2013
04 Saturday Aug 2012
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aged care, aging, baby boomer, dianapowney, employment, housing, lifestyle, living, money, older australians, over 55, pension, property, real estate, retire, retirement, retirement living, savings, superannuation, wilson agents
Westpac today released the findings of a national survey which says more than half Gen Y women are delaying marriage and children until they are financially prepared.
The survey of 900 Australian women across three generations contained in the Westpac Report on Women’s Finances by Generation has revealed that Gen Ys are more financially focused than previous generations, with Gen X and Baby Boomers showing signs that they wished they had done things differently.
Westpac Director of Women’s Markets, Larke Riemer, said it is positive to see that so many Gen Y women are conscious of the financial and career implications of having children and getting married.
“It is interesting to see that Gen Y women place such a large emphasis on the monetary side of marriage and starting a family.
“Our report has revealed that 53% of Gen Y women feel to some extent they need to delay starting a family due to financial pressures, compared to Gen X (30%) and the Baby Boomers (15%). Gen Y are financially focused and preparing for the future,” Ms Riemer said. “That said, young women should arm themselves with as much information as possible to make their money work harder for them from day one.”
KEY FINDINGS
Finances ahead of family
• 53% of Gen Y women feel to some extent they need to delay starting a family due to financial pressures
Compared to:
o Gen X (30%)
o Baby Boomers (15%)
• Over half of Gen Y women (56%) said that the financial security of their partner is an important factor when deciding to get married
Compared to:
o Gen X (40%)
o Baby Boomers (24%)
• 53% of Gen Y women said they would go back to work following the birth of a child to maintain career progression
Compared to:
o Gen X 27%
o Baby Boomers 15%
• 36% of Gen Y women would not get married until they had enough money to afford the wedding they want
Compared to
o Gen X (14%)
o Baby Boomers (4%).
Savvy savers and conscientious career women
• Gen Y are the biggest savers, with 18% of Gen Y saving more than 20% of their income per month
Compared to
o Gen X (8%)
o Baby Boomers (9%).
• 29% of Gen Y’s already own their own home
• 58% of Gen Y said they would like to make it to the top in their career
Compared to
o Gen X (34%)
o Baby Boomers (24%)
Ms Riemer said, “It is important that women feel empowered to make the best financial decisions at each stage in their lives. Our research shows that 49% of Gen Ys seek financial advice from friends and family first, which means they may not take the important step of seeking professional financial advice. In some cases, women may find they don’t need to delay marriage and family for as long as they think, simply by tweaking their financial plans slightly,” said Ms. Riemer.
The report also indicates Gen Y women are placing significant importance on the financial security of their partner. 56% of Gen Y women responded that their partner’s financial security is an important factor when deciding to get married, which was less than Gen X (40%) and significantly less than the Baby Boomers (24%).
“While they are still building their wealth, the research suggests Gen Y women understand they need to be financially prepared before they get married and start families, but the priority they place on the financial security of their partner worries me. They need to know a man is not a financial plan”, said Ms Riemer.
Interestingly, the results highlighted that Gen Y are the biggest savers, with 35% of Gen Y women saving 11% or more of their take home income compared to 23% of Gen X and 24% of Baby Boomers. Impressively almost one-third of Gen Y’s have already entered the property market.
In contrast to Gen Y’s focus on finances, over 61% of Gen X said they wish they had started saving earlier for a new home. Interestingly, being able to afford children wasn’t a top of mind concern for Gen X women when they were preparing to have them, with only 26% noting finance as a consideration. However, with over half (50.3%) Gen X respondents revealing they thought they were in a worse position financially than they expected – indicating financial planning is an issue for this generation. This continues to flow onto their concerns about retirement, with 44% of Gen X saying they wished they had done something different with their superannuation.
“For Gen X I want to reinforce that it is never too late to start getting your finances into better shape by setting realistic financial goals, which can be met. Women just need to arm themselves with as much information as possible to help them to get to where they want to go,” said Ms Riemer.
Ms Riemer belongs to the Baby Boomer generation and understands her generation’s financial concerns now focus on retirement and guiding their children.
“I find it very interesting that 35% of Baby Boomers are somewhat disappointed with their children’s choice in partner, and furthermore, over 20% were disappointed with their children’s decisions about starting a family. The most important thing to Baby Boomers is to ensure our children are financially independent in order to take up as many opportunities as possible, even if we do wish that giving us grandchildren was more of a priority.”
Westpac’s top three financial tip’s for Gen Y women:
1. Time is your best friend when it comes to your financial future, start thinking about it now.
2. Put aside at least 10% of your income for long term wealth accumulation.
3. Invest in your education.
Westpac’s top three financial tip’s for Gen X women:
1. If you have a mortgage, focus on repaying it.
2. Get good advice on insurance and estate planning. In particular consider trauma and income protection insurance – only 5% of Australian families are adequately insured.
3. Know where your super is and consider your long term retirement plan now.
Westpac’s top three financial tip’s for Baby Boomer women:
1. Make sure you are salary sacrificing and building up your superannuation.
2. See an adviser about your retirement plan and ensure you have a plan in place.
3. Focus on transitioning your wealth into super by age 60.
These findings come as Westpac celebrates International Women’s Day. For the second year running, Westpac is a major partner with UN Women on International Women’s Day.
Survey results sourced from: Westpac Report on Women’s Finances by Generation, February 2012, powered by Coredata.
14 Saturday Jul 2012
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0ver 55, aged care, aging, baby boomer, dianapowney, employment, housing, living, pension, property, real estate, retire, retirement, savings, superannuation, wilson agents
I have to say my mother is not a baby boomer. My mother thinks that a microwave can totally harm you (she has no idea how it works however being a depression baby everything is useful) so it is easier for her to use it as a modernized Bread Basket ad hock. No ants can enter, and being dark inside the bread seems fresher! (according to my mother).
Being a self taught computer wanna be ( ok so I can email, and I have been learning as I go……believe me I am determined!) I cannot believe how many websites out there that just frustrate me with gibberish ill prepared useless bits n bobs. When I read this I had true understanding of just not the baby boomer generation, but my generation as well. (hey I remember having the milk delivered on the front veranda…..and yes I have no idea that my iPhone 4 does things that my totally wonderful Blackberry could and still can do). Lots of baby boomers want to start an online business but don’t know how to get started. Here are 3 tips that will remove the fears of building a business on the internet. Dennis Hopper is right…”Dreams are powerful…Dreams are what make you say ‘when I’m 64, I want to start a new business’.” Are you a baby boomer approaching retirement? Have you realized that you need to start a new business now instead of when you turn 64? Do you see the potential of an online business to build your dream of financial independence but you’re afraid of the technology? Or worse, getting ripped off? You are smart enough to learn how to get the internet to make money for you after you’ve “retired” from your career. Building a business online after you’ve “retired” will also add quality of life to your remaining years because you’ll be engaged in building a successful business online instead of just playing leisure sports and watchingJeopardy on TV. The technology is not that hard to learn. If you know how to write an email, surf the web and compose a Word document, then you’ve got all the skills you need to have a successful online business. There are plenty of resources and programs that can do all that hard technology work for you. As you build your business, you will learn by doing so there’s no need to be afraid of the technology. There are lot of internet business ideas that can be profitable for you . You’ll have lots of choices, from selling products from an online storefront to creating informational products like ebooks, DVD’s and CD’s that are based on the knowledge you’ve gathered over the years in your career. Or you can sell other people’s informational products as their affiliate and get a commission from selling their ebooks, DVD’s and CD’s. Whatever you decide to do, devote some time to learning how to do it. Find all the free sources of information you can to educate yourself about how to make money being online. There are lots of ebooks that you can download that will help you understand how business on the internet works. Be careful what you spend your money on and avoid “Get Rich Quick” scams. You can find classes at your local community college that will help you find out more about building an online business. The baby boomers have been the generation that brought change into the world in so many different ways. You can expect they will reinvent retirement as well. |
first posted by internet marketing.com.au
10 Tuesday Jul 2012
Tags
0ver 55, aged care, baby boomer, dianapowney, employment, housing, pension, property, real estate, retirement living, savings, superannuation, wilson agents
As the first of the Baby Boomers turn 65 this year, RaboDirect has found that of the 4 million or so people in this generation, one in five will retire with an outstanding debt on their homes.
Worryingly, of those retiring with a mortgage, over a quarter intend to pay off the loan with their super. And all this against a backdrop of extreme share-market volatility and economic uncertainty, continuing to put increased pressure on Boomers’ superannuation funds.
While not all bad, the financial picture for Baby Boomers is less than rosy. According to the latest RaboDirect National Savings and Debt Barometer (NSDB), Boomers feel economically worse off and more concerned about their financial future than their Generation Y counterparts.
Key findings:
Greg McAweeney, Executive General Manager of RaboDirect Australia & New Zealand said, “It’s clear that, as a nation, we need to address our debt issues and set in place some common sense strategies to help us all build the kind of future we hope for. It’s the role of all of us – government, banks, the community and individuals – to ensure that Australians of all ages are educated about the financial basics, are guided by conscionable lending practices and have access to reliable, inexpensive financial advice.”
“We say it’s time we put the boom back into the Baby Boomers. And there is no time to waste. As the first of this generation head into retirement, some of the big issues are coming home hard and likely to affect us all. Almost 25% of baby boomers have little or no savings. So out of our boomer population pool of four million, 1 million have no money in the bank. Which begs the question, will Australia’s aging population be relying on taxpayer assistance to survive in retirement? We need to stand up and take note of this situation and get all generations to think about their financial future. Without proper planning we will never be able to break this cycle of debt.”
first published by rabodirect.
09 Monday Jul 2012
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0ver 55, aged care, aging, baby boomer, dianapowney, housing, living, over 55, pension, retire, retirement living, superannuation, wilson agents
This is the second of two articles that explores the evolving demographic composition of our society while noting potential opportunities and pitfalls that could impact hearing health care professionals in meeting both the needs of our aging society. Please refer to yesterdays Blog for part one.
Part one of this article discussed the various “age boom” demographics comprising our population and the need for hearing health care professionals to recognize baby boomers as a target market and perhaps change their focus in service provision.
There is an essential need for competent succession planning within our industry. Ken Dychtwald, who has studied the anticipated impact of baby boomers on our current and future workforce, stated, “To prepare for the coming shortage of skills and talents, organizations must learn how to use the skills and energy of mature workers – retraining them, revitalizing them, and even attracting new ones to the organization. As individuals, we must plan for a long period (often 20-plus years) of active, healthy live post ‘traditional’ retirement. How individuals choose to spend those years and how corporations create conditions for productive employment will seriously affect corporate success and overall economic health.”1
These comments characterize the issues impacting many industries, including hearing health care, as a whole and most specifically within the hearing instrument specialist side of our industry. Boomers desire to continue employability, and we need to explore a consideration of perhaps a second or even third career track within our industry. By their mere presence and established work ethic, boomers and near-boomers are positively influencing societal mores regarding employment and employability. It is imperative that hearing health care professionals be creative in their hiring and retention practices.More than 32 million Americans have some type of hearing impairment, yet only around 6.5 million have obtained assistance or properly addressed these deficits. The number of individuals who will be impacted by hearing loss is expected to increase dramatically for a myriad of reasons, including lifestyle choices, medical or health conditions, environmental and pharmacological impacts, and a rapidly ascending aging of our overall population.
Over the last 20 years the audiology realm of the hearing industry has established some succession planning efforts by establishing AuD programs. However, the number of graduates from these programs is not expected to even come close to meeting the aging audiologist population anticipated to retire in the next 10 to 15 years. Currently, there are only a handful of established programs to try to increase the numbers of non-audiologist hearing health care professionals. However, this loose alignment remains somewhat fragmented, and the graduation of viable practitioners remains small. There are not enough to replace the current level or practitioners and certainly not enough to address the needs of the growing U.S. population with some type of compensable hearing impairment. A look at the demographic cross-section of the national population shows that it is comprised of Gen Y/millenials (28 percent), baby boomers (26 percent), Gen X (20 percent), post-millenials (17 percent), and traditionalists (9 percent), who were born before 1945. While more than half (52 percent) of baby boomers work in health care occupations, the numbers are considerably less for the other groups: Gen X (23 percent), Gen Y (17 percent), and traditionalists (8 percent). An analysis of these statistics reveals several patterns and trends. More than half of all health care workers are baby boomers. Most traditionalists currently are working in upper-level health care positions or are clinicians rapidly approaching retirement status. While nearly three out of 10 Americans belong to the Gen Y group, barely one-sixth of that group currently work in a health care occupation. These statistics foreshadow some potential serious concerns about how we will effectively provide health care services for our aging population, which is increasing in size dramatically. Many baby boomers are choosing to retire or opt out of active employment in the health care arena, while there is a dramatic reduction in the percentage of Gen Y members choosing to enter the field. These trends present a two-fold problem in succession planning:
Clearly, turbulent waters lie ahead. Creative measures are necessary to stem the tide in the next several years. Since the establishment of formal scholastic programs to “grow our own” are few in numbers for non-audiology hearing health care practitioners and are likely well down the road, other options must be considered to maintain and grow practitioner numbers. The route that makes the most sense at this time, given the fluctuating economic conditions, is to follow Dychtwald’s methodology of retraining and revitalization. There are many competent and highly motivated baby boomers and older Gen Xers who have been displaced in prior careers or are looking to change their career path. Many may be in their 40s and 50s – not the stereotypic job candidate. This is where we must shift our paradigm from a traditional succession planning mindset of bringing in employees with intentions of perhaps decades-long career tracts and instead be willing to consider an available and multi-experienced population for shorter time frames, such as five, 10 or 15 years. These individuals generally are highly motivated, with great work ethics and remarkable adaptive qualities. According to Dychtwald, organizations view a number of actions as essential for responding to the evolving demographic trends. Of those, hearing health practitioners should focus on the following actions in an effort to change their paradigm and consider hiring the mature worker:
Other actions all industries should consider implementing are as follows:
In changing this paradigm, how should hearing health care practices approach modifying their hiring practices? They must be sure to fully address these questions in their hiring considerations:
Many organizations already are considering the merits of hiring more mature workers not only for entry-level positions but with the goal of developing them to assume greater roles and responsibilities. They need to ask and answer not only the tough questions but the right questions of both their applicants and their own organizational practices. To survive in the long term, the hearing health care field must adopt many of these practices and create their own “future scope” that can be enhanced through the practice of “boomers hiring boomers” where feasible. These philosophical changes throw much of the conventional wisdom out the door because of the lack of an established ‘”farm system” to grow our own. This change is only the first in a number of steps our industry must take to adequately grow and perpetuate our field and be able to meet the increasing needs of our impending and rapidly advancing “age boom.” References
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08 Sunday Jul 2012
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0ver 55, aged care, baby boomer, dianapowney, employment, housing, over 55, real estate, retire, retirement living, savings, superannuation, wilson agents
Increasingly we are bombarded with articles, speakers and conferences aiming to explain the problem of generational change. As a Baby Boomer I admit to having been pretty sceptical about this whole business. Aren’t people all the same? Doesn’t it just depend on the stage at which they are in their life: 0-17 learning, 18-30 taking opportunities, 31-44 consolidating, 45- 55 maximising and 55+ reaping benefit?
But then I began to consider how much our time, our generational culture and the economic and technological environment coloured these phases of life. For example my life and career between 1979 and 1990 was heavily influenced by the industrial and educational policies of the Thatcher Government in the UK. So I finally decided I had to investigate the basis for all this hype to determine:
We see clear evidence of a range of organisational performance impacts including rising staff turnover and falling recruitment, Baby Boomers retiring and knowledge leaving the building, a fall in school leavers and new recruits who are more demanding and selective about their work and workplaces.
So let us first look at the facts.
A Baby Boomer is a person born between 1946 and 1964 in Australia, United Kingdom, Canada and the United States. After WW II, these countries experienced a spike in birth rates, known as the baby boom. The term is now used for that generation even in countries that did not have the ‘boom’.
In Australia, 1950s migration brought many Boomers and significantly impacted demographics and political thinking. In 2006 there were 5.3 million Boomers in Australia (26% of the population). Boomers were in their formative years (teens and early twenties) in the 60s and 70s which made them radical thinkers, consumers and travellers. Baby Boomers spending habits and lifestyles therefore have a powerful influence on the economy. Over the next 16 years this huge generation will all sail past 60 and ease out of the workforce potentially leaving a very significant labour and management void.
However, in a US survey 76% of Baby Boomers said they intended to keep working and earning in retirement but will alternate periods of work and leisure. In developed countries, Baby Boomers are eating better and exercising more than ever to achieve a healthier lifestyle. 37% of those US Baby Boomers will continue to work for earnings, 67% seek continued mental stimulation and challenge.
4.4 million Australians are in Generation X which is 21% of the population, born between 1965-1979. Surveys show two-thirds want to be thinner, 57 per cent live from week to week financially and 40 per cent worry about their families. They are sandwiched between the Baby Boomers who refuse to let go, and the younger, cooler more tech-savvy Gen Ys who are already snapping at their heels. They are ageing and feeling the pinch financially but also have a young family, which can be very stressful. And they are the mainstay of our present workforce, consolidating their position, worth and families, having grown beyond their opportunistic years.
There are 4.2 million Gen Ys making up 20% of Australian population, and born between 1980-1994. Greater sophistication is needed when engaging with Generation Y. We are dealing with the most formally educated generation ever. High school retention rates have risen and almost half of Gen Ys have gone to University and many of the rest studied at TAFE. So hype and superficiality don’t persuade this educated generation.
Generation Y don’t seek a job as much as they seek an opportunity. They have multiple expectations of an organisation – it isn’t just the job description but the workplace culture, the variety, fun, training, management style, and flexibility that drives them. However, on-line psychometric testing of 300,000 respondents by Army Recruiting in the UK showed a clear distinction between Gen Y types:
While these obviously suggest sub-sets of the kind of people to whom the Army might appeal, it does give the lie to the view that Gen Y is self-centred and entirely uninspired by traditional values. Generation Ys are inundated with job ads, though, so in this competitive labour market employers need to offer a compelling Employee Value Proposition. The Gen Y’s want a clear reason to join an organisation – and one that resonates with their workplace priorities. A survey of UK firms adopting Green Policies showed that a significant motivator to do so was to appeal to Gen Y!
Australia, like most developed nations, is experiencing a rapid ageing of the population. The median age of an Australian in 1976 was 28.3 compared to 36.4 today and in a decade it will be 40.1. Nowhere are the implications more significant than in employment. An ageing population leads directly to an ageing workforce. Planning now to deal with this aging workforce is a key role of managers.
This year there will be more 60th birthdays than ever before. The point is that over the next 16 years this huge generation will all sail past 60 and ease out of the workforce creating a significant labour and management challenge. Now is the time to begin the succession planning in businesses of all sizes.
It has never been harder to attract, recruit and retain staff. The unemployment rate is the lowest that it has been for a generation and there are an increased number of options available today when it comes to Gen Ys choosing their future direction. There are more post-compulsory education options than ever for young people, opportunities to travel, to work overseas, or to retrain for yet another career. The statistics bear this out: those aged 20-24 are three times more likely to change jobs in a year than those aged 45-54. In fact nearly 1 in 4 of those aged 20-24 change jobs in any given year. In 1959 the Longitudinal Labour Market Study shows an average retention rate of 15 years. Today average retention per job per employee is just 4 years.
In practical terms, there is already nearly zero unemployment in Canberra and it is falling fast elsewhere. Many organisations are finding it difficult to retain good trained staff and few organisations have systems for retaining and recycling the knowledge that is leaving with the Baby Boomers. Similarly few organisations have structured mentoring systems to pass on knowledge in good times. Even when they do, the trained staff often move on before the investment in them is realised. More frequently young promising staff are being promoted early beyond their experience and either succeed and move on too soon, or fail and get stuck or leave. Only relatively few organisations provide coaching to help young managers grow into their roles.
The generational change is a big issue but not necessarily the disaster it’s made out to be. True, in Australia there are 1.2 million fewer Gen Ys than the Baby Boomers we are losing, but the change is staged over nearly twenty years and clearly manageable with the right planning and strategy. Given the right qualities of leadership and a sound understanding of the way your organisation can mange knowledge and satisfy the needs and wants of your employees – there is not much to fear.
The tools and techniques do exist to manage the problem and maintain your capability and performance and in the next newsletter, I will explore the nature of the strategies that are being used successfully to negotiate this particular generation gap.
06 Friday Jul 2012
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0ver 55, aged care, aging, baby boomer, dianapowney, employment, housing, living, pension, property, real estate, retirement, retirement living, superannuation, wilson agents
Changes to superannuation laws in the 2012 Federal Budget may cause some Baby Boomers to rethink their retirement plans as increased contributions may now lead to cap breaches.
Individuals with an income exceeding $300,000 will have a tax concession on their contributions raised from 15% to 30% as of 1 July 2012.
The tax includes all concessional superannuation contributions, including super guarantee payments.
Last year the Government created higher contribution limits for individuals aged 50 years and over with a superannuation balance of less than $500,000.
This would have allowed these people to make up to $25,000 more in concessional contributions than under general concessional contributions cap.
Concessional contributions include employer contributions for members of defined benefit funds. There will be no changes for people over 50 with an income of less than $300,000 per year. The Government has also announced a deferral of the start date, which means until 1 July 2014, all individuals have a cap of $25,000.
The announcement includes a provision to prevent the new surcharge from applying on top of excess contributions tax. This may be a drawback for those taking advantage of ‘transition to retirement’ strategies.
The changes could result in accidental contribution cap breaches and lead to further contributions tax assessments for clients. Many people planning their retirement may need to assess what these changes mean for them, and individuals over 50 may need to re-assess their salary sacrifice arrangements.
05 Thursday Jul 2012
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0ver 55, aged care, baby boomer, dianapowney, employment, housing, living, money, over 55, pension, property, real estate, retire, retirement, retirement living, savings, superannuation, wilson agents
Few managers claim to fully understand the thought patterns and work attitudes of Generation Y, but most know that the differences in outlook between the generations are significant and can lead to management issues and conflict in the workplace. Many businesses now contain staff from four generations, variously categorised as the Traditionalists (born between 1922 and 1945), Baby Boomers (1946 to 1964), Generation X (1965 to 1980) and Generation Y (1981 to 2000). Human resource professionals admit they are finding that keeping the peace and catering to the expectations of this multigenerational workforce is not easy.
“Few would disagree that human resource initiatives aimed at enhancing employees’ quality of life have universal appeal, but the definition of ‘quality of life’ varies by generation,” wrote Julie Cogin, a management professor at the Australian School of Business in her paper, Are Generational Differences in Work Values Fact or Fiction? Multi-Country Evidence and Implications. “Workplaces are becoming increasingly age diverse and the likelihood that an older employee will report to a younger manager is increasing.” A 2005 study for the Society for Human Resource Management found that in organisations with 500 or more employees, 58% of human resource management (HRM) professionals reported conflict between younger and older workers, largely due to their different perceptions of work ethics and work-life balance requirements.
Not all organisations are having a hard time managing the generations’ differing expectations. One information technology firm in Melbourne openly courts Gen Y staff who may work at the firm for a couple of years then go travelling, Cogin notes. The business owner welcomes such behaviour, and in fact stays in touch with their former charges as they travel. When they land back on home soil the staff are happy to return to work, bringing their new knowledge with them. In an environment where IT talent is hard to find, this particular company enjoys a constant supply of gifted people who are attracted by word of mouth.
Gen Y’s attitudes to work and career are very different to that of Traditionalists and Baby Boomers, who appear to have a much stronger work ethic and less concern about work/life balance. Cogin has been studying these differences in her research, which surveyed employees across five countries – the US, Australia, China, Singapore and Germany. “There are marked differences in the value attached to work across the generations,” Cogin says. “Work is a much greater focus of older staff and less of a focus for younger people for whom it’s just one part of their life. Some of the difficulties come with the assumption that people around you have those same values. This causes a lot of conflict.”
Defining Differences
Dealing with issues in the multi-generational workplace is not just an HR responsibility, Cogin says. It involves working on the culture of the organisation. Like ethnic and gender differences in the workplace, it’s a diversity issue.
“One of the big sources of conflict is that the Baby Boomers and Traditionalists say, ‘I had to work my way to this position. It took me 10 years to work my way to the top. I don’t get flexible leave and Gen Y have to do the same thing.’ They want respect and they want to see the same kind of trajectory for Gen Y. But the labour market then was very different to what it is now – people can pick up jobs more easily,” Cogin says. “The challenge is how to change the mindset of those older workers so that they recognise the company needs to adapt systems and work practices to engage these younger people. It’s also about getting the younger workers to appreciate those with more experience as well.”
A culture of adaptability is required to shift the various assumptions and norms within the organisation, Cogin asserts. “Just as we went through with gender and ethnic differences – what can we learn from that? This is not about assimilating the generations, it’s about adaptability for the people and for the organisation’s initiatives.”
Patrick Clancy, founder and director of Gold Coast manufacturer Clancy’s Pies, knows a thing or two about adaptability. His business has more than 60 employees representing all four generations. One of the company’s greatest strengths is the depth of knowledge, experience and the great variety of outlooks and opinions that results from bringing together the cultures, he argues. A mix of generational workers then, is an advantage rather than a potential problem.
“This company is a mixture of generations and nationalities,” Clancy says. “But there’s no training manual on managing those different generations. For me it’s simply about understanding and respecting them for their strengths. Veterans (Traditionalists) are easy to manage because once they know what to do they just keep on doing it. If something needs more time and effort, such as working weekends, it is not an issue. They have a wealth of experience and knowledge and in many cases they use it without you knowing.” However, their depth of experience means they like to report to the “big boss” or at least a senior manager – best not to ask them to report to a Baby Boomer, suggests Clancy, who adds: “At the same time, they work well with each generation type and will even be a parent figure to those needing one.”
Baby Boomers are getting closer to retirement so their focus is now looking forward to quality of life in retirement rather than being promoted, Clancy observes. “They generally mix well with all generations and will take time to encourage, mentor and work with the younger ones. Managing this group is all about end results, team planning, having guidelines and progress evaluations,” he says.
Gen X probably poses the greatest challenge, according to Clancy. “They generally do not expect job security and are quite cynical. This in turn leads to a less loyal employee. Veterans find it harder to work with this group because of their characteristics differing so much from their own. They are comfortable with technology and like training and development.” He summarises Gen Y as typically “bright, friendly and very social”. “Their computer skills can give them an edge over other generations and make it difficult to evaluate their true worth by others.”
Managing Gen Y poses a few challenges, Clancy has found. “They will not like having to stay longer at work on regular occasions as it will interfere with their social life. They may need mentoring and coaching on a regular basis. This isn’t difficult, as they tend to be easy to work with and learn quickly. In terms of tasks, Gen Y tend to lean towards those that involve computers or social interactions, and they prefer positions that are interactive with both internal and external people.”
Clancy, who started his business with two staff members in the late ’90s, understands the importance of catering to generational differences for business growth. “We must recognise Generation Y as our future leaders and dismiss the many myths surrounding this generation,” he insists. “They are educated, confident and are fast learners. We need to teach all staff to focus on their strengths and empower them. After all, they are our future.”
Is Everybody Happy?
Some best practice organisations are leveraging the generational differences by using staff diversity as a tool to satisfy various customer groups. This makes sense, Cogin says. If the customer groups are diverse then those who are working to meet their needs should be as well. An organisation that employs Traditionalists and Baby Boomers may find it has a poor fit when it comes to serving Gen Y customers. But keeping the mix of staff comfortable in each other’s company can prove challenging.
“The value placed on ‘hard work’ showed a clear pattern of decline with younger generations, which is in line with the popular conception of a declining work ethic among young people,” Cogin notes in the paper. “The most important work value for Traditionalists and Baby Boomers was ‘hard work’, while Generation X’s was asceticism (self-discipline and self-improvement) and Generation Y’s was ‘leisure’.”
The idea of the “flexible workplace” has been around for quite a while, but it suffers an image problem, Cogin says. The flexibility is generally perceived as an exclusive offer for parents in the workforce, but it’s only through these exact types of programs that problems caused by generational differences can be overcome. Such accommodations for Gen Y, Cogin says, could include extended leave for study or travel and variable work schedules to allow for their need to enjoy life as well as work.
Older workers can be encouraged by a reconfiguration of work arrangements, or a relaxation of strict work policies, to allow for a gradual exit from the organisation. “Companies that are able to align work values with management practices are likely to retain the best and the brightest of today’s and tomorrow’s workforce,” Cogin says.
And for the younger workers a certain amount of instant gratification goes a long way. “Unlike previous generations who have in large part grown accustomed to annual performance reviews, the preference among members of the younger generations for asceticism and gratification of immediate needs suggests they may respond more positively to receiving more regular feedback and recognition. Engagement of Generations X and Y should include frequent evaluation of work performance with reasonable, progressive rewards built in,” Cogin says.
Generation X and Y employees appear to be seeking a different psychological contract with employers. In stark contrast with older generations, younger generations do not equate ‘hard work’ to personal or professional success, Cogin’s research confirms. “Attaining work-life balance and flexibility is fundamental to these generations’ definition of career success. Wellbeing programs are not only a means of attracting and engaging the younger generations, but a way HR practitioners may respond to employees’ desire to better balance work targets and personal goals through a blend of accommodating and acculturating strategies, depending on constraints such as labour market conditions, service hours and associated risk issues.”
Rewards programs set specifically for one generation will often be adopted and adapted by another generation for their own purposes. “Some professional services firms tell their staff if they go to the gym three days a week for three months then the company will pay their yearly gym membership. Even though they’re targeting younger staff, older workers probably need this more than anyone else,” Cogin says. “Another crossover policy is ‘gap leave’, where after two years you can leave for a year and be guaranteed a job when you return. Once again this targets younger workers who love to travel, but companies have found a lot of Traditionalists take up this initiative and have a year off to spend time with their grandchildren, for instance. Gap years have given older workers an opportunity to extend their careers, which is a benefit for them and for the company.”
first published by Australian School of Business July 2011
04 Wednesday Jul 2012
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0ver 55, aged care, aging, baby boomer, dianapowney, employment, housing, living, pension, property, real estate, retire, retirement, retirement living, savings, superannuation, wilson agents
LAMBASTED as lazy and narcissistic, Generation Y has struck a blow against its critics with a management survey finding baby boomers are the least popular colleagues among Gen X and Yers.
The survey also found only a handful of the older generation want to work with their peers, with the majority of baby boomers preferring to work with people younger than themselves.
Leadership Management Australasia, a consultant group that commissioned the survey, is citing the figures as a call for baby boomers to “reinvent” themselves so colleagues feel comfortable around them.
Generation Y retail workers Maddi Sharpe and Pelagie Hebert said they often struggled under baby boomer colleagues and bosses.
“They find it hard to work with young people,” said Ms Sharpe. “They presume that Gen Y is lazy, which I guess we are sometimes.”
The study of 774 Australian and New Zealand workers found only 17 per cent of baby boomers preferred to work with their own generation, with 40 per cent preferring to work with Generation X and 27 per cent with Generation Y.
In stark contrast, the majority of Generations X and Y preferred to work with their own-age peers, with only 4 per cent saying they would rather work with the boomers.
An overwhelming 71 per cent of Generation X prefers having a similar-aged worker as their boss, with just 14 per cent happier under an older person.
Among the baby boomers, 33 per cent prefer reporting to a Gen X-er, while a bold 5 per cent are happiest with someone under 30 years old as their boss.
Baby boomers are considered those born between the end of World War II and 1962, with Generation X carrying through the 1960s to 1980.
LMA executive chairman Grant Sexton said the “baby boomer issue” now represented a serious challenge for workplace relations.
“It threatens to undermine stability of the workforce into the future because baby boomers will continue to occupy most leadership and senior management positions in this decade,” he said.
Monash University HR and employment relations lecturer Greg Bamber disagreed, saying it was simplistic to analyse the workplace according to generational gaps.
“It may be misleading to suggest to managers that they manage people on the basis of these sorts of distinctions, because there are so many other distinctions that are important as well,” Professor Bamber said.
“What’s more important is that managers in the workplace try to foster genuine engagement of the workforce by really listening and understanding what’s driving them.”
First published in The Australian May 2011
02 Monday Jul 2012
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0ver 55, aged care, aging, baby boomer, dianapowney, employment, housing, living, over 55, pension, property, real estate, retire, retirement, retirement living, savings, superannuation, wilson agents
THE Federal Government will today reform aged care provisions and promise $350 million to look after sufferers of dementia who are expected to number more than a million by 2050.
Prime Minister Julia Gillard will reveal long-anticipated aged care provisions aimed at allowing the elderly to stay at home as long as they can.
The measures will also prevent forced fire-sales of family homes to pay for the elderly who want to move into care accommodation.
Julia Gillard will make a strong pre-Budget push on aged care, one of the more sensitive policy areas affecting almost all families, and certain to demand more government attention as the population continues to live for longer.
Ms Gillard is expected to underline the importance of the issue in a speech today where she will liken aged care to the universal health scheme.
“Like Medicare, aged care is one of the most fundamental parts of our social compact in this nation,” the Prime Minister is expected to say.
“It’s one of those pillars that bring security and decency to every Australian, no matter what their circumstances or background. For older Australians, who have worked so hard, that is something they have earned many times
over.”
The Government will allocate $268.4m over five years to address the growing instances of dementia cases and the burdens on families.
Of this, $164.3 million will go to a new Dementia Supplement going to people in home care and residential care.
There will be money to produce earlier, more timely diagnosis of dementia with more attention on potential younger victims.
Ms Gillard will also pledge the Government will ensure that tens of thousands of aged Australians will be able to stay in their homes while receiving proper care.
Others will be able to keep the family home rather than be forced to sell it to post a bond for care accommodation elsewhere.
“If you want a nursing home place, we will make it easier to get one. If you want care in the home, we will make it easier to get that care,” Ms Gillard will say.
“More people will get to keep their home – and more people will get to stay in their home.”
The elderly in care accommodation will be able to choose how they cover a bond – which could be as much as $2.6 million, well beyond the value of the tenancy.
The bond could be paid in a lump sum or periodic payments or a combination of the two.
People will have longer to choose their option and the objective will be to prevent the forced sale of a home to cover residential care costs.
And there will be for the first time standard of fairness applied to the ability to pay for accommodation.
The Government wants to end the current situation whereby some pensioners have to pay more than those on private incomes and with extensive assets. And costs will be capped.
“We have tried to recognise that ageing should never be seen as a burden, that the long lives we are now seeing are to be welcomed, and our ageing population in many ways a gift,” Ms Gillard will say.