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97thAnnualConventionandTradeShowSeptember25th,2003SUCCESSIONPLANNINGANDWHYITMATTERSNOW!PresentedByDarylJohnson,B.Ed,CCP,CHRP2SettingtheStage…1.WhatisImpactingAttractionandRetentioninYourOrganizationToday?2.WhataretheAttractionandRetentionStrategiesYourOrganizationisConsidering?3.What“Alternative”WorkforceManagementStrategieshasYourOrganizationConsideredand/orImplemented?By2010,Canadamaylackasmanyas1.5millionskilledworkers,withunemploymentat4%.-COMPASInc.CanadianSurvey,Dec.20023DefiningSuccessionPlanningAdynamic,on-goingprocessofsystematicallyidentifying,assessinganddevelopingleadershipandmanagementtalent;andassessing,developingandrecognizing“keycontributors”tomeetfuturetheorganization’sstrategicandoperationalneeds.40%ofCanadiancompaniesdonothaveanemployeeretentionstrategyofanykind-COMPASInc.CanadianSurvey,Dec.20024WhatIsYourStrategyforSuccession?Doesyourorganizationhaveaneffectiveplanforexecutivesuccession?Tosecureyourorganization'sfuturesuccess,youshouldanswersomechallengingquestions:Leadersareresponsibleforfutureleadership.Theyneedtoidentify,developandnurturefutureleaders-MaxDePree,LeadershipisanArt1.Doesyourcompanyhaveaplanforleadershipgrowthtokeeppacewithbusinessgrowth?Whoisbeingdevelopedandgroomed?2.Doyouhaveaplaninplacetofillthegapsanddotheyhaveplansforcurrentemployeesto“stepuptotheplate”tofillthosepositions?3.Doyouhaveanobjectiveplaninplacetoidentifyanddevelopthefutureleadership?4.Doyouhavethebenchstrengthforfutureleadershipneeds?YesNoHowcananorganizationmaximizethehumanassetpotentialandallocationforthebestalignmentwithstrategicobjectives?5DriversofSuccessionPlanning:Demographics“Demographicallydrivenchangesareaffectingworkplacesglobally,primarilybythebabyboomgenerationwhoarecitedasthelargestsinglesustainedgrowthpopulation.”-BNACReport,November2001BABYBOOMERS,1946-1963GENERATIONX,1963-1978GENERATIONY,1979-19946BabyBoomers,1946–1963Population72million(USA)“80%ofboomerssaytheyexpecttoworkafterretirement.”-AARPSurvey,2001BabyBoomerDiversity25%30%9%23%13%Today'sTraditionalistsSelf-ReliantsStrugglersAnxiousEnthusiasts7BabyBoomers,1946–1963Population72million(USA)Today’sTraditionalists–Confidentinsocialsecurityandhealthcareaccessfollowingretirement,stillplantoworkduringretirement.TheSelf-Reliant–Aggressivesavers,confidentinretirementsavings,plantoworkpart-timeforthesakeofenjoymentmainly.TheStrugglers–Notsavinganymoneyforretirement,notsatisfiedwithcurrentsavings,concernedaboutsocialsecurityandhealthcareaccess,willneedtoworkduringretirement.TheAnxious–Notoptimisticaboutretirement,notsatisfiedwithcurrentsavings,concernedaboutsocialsecurityandhealthcareaccess,willneedtoworkduringretirement.TheEnthusiasts–Optimisticaboutretirement,donotplantoworkwhenretired,can’twaittoretire.“Thebabyboomerpopulation,totaling49%ofthecurrentworkforce,willcloseinonretirementinthenext10to12years.Atthesametime,GenXersmakeupjust23%ofthetotalworkforceandaretoofewinnumbertoadequatelyfillthepotentiallabourgap.”-workspan,March20038RealityGenX’ersthinkaboutworkdifferentlythanearliergenerations…ArecautiousaboutinvestinginrelationshipswithorganizationsandemployersFearofunreliabilityInvestemotionallyinthemselvesandthinklikeentrepreneursAreindependentandcreativeproblemsolversSeekeffectivemanagersThriveonfeedbacksotheycanadjusttobecomemoresuccessfulComfortablewithcomputerTechnologyandinformationoverloadGenerationX,1964–1978Population62million(USA)MythsGenX’ershaveabadreputationas…DisinterestedintheorganizationSelf-absorbedDisloyalViewtheorganizationwithdisdain“ProblemSolving–OneoftheMostDesiredSkillsEmployersareLookingFor–ISaTalentManyX’ersPossess”-GCM,January20019…ThesearethesonsanddaughtersoftheboomersGenY’erswanttoworkwithahighlymotivatedteamofcommittedpeople.Thisgrouphasperfectedmulti-tasking.Jobsatisfactionisdrivenbyplayingameaningfulrolethathelpsothers.“Paidvolunteers”mentality.FiercelyindependentlikeGenX’ers,butmorecomfortablewiththeirself-reliance.“OfcourseIcanfendformyself”versus“I’dbetterbeabletofendformyself.Nowgetoutofmyway.”Havetypicallybeenmicromanagedbyparents,teachers,counselorsthattheyareeagertomanagetheirowntime.Willnotwanttobemicro-managedatwork.Haveneverexperiencedlifewithoutcomputers–infact,werelearningcomputersatnurseryschoolage.BusinessWeek,Sept.2001&Jan.2002KennedySchoolofGovernment,HarvardUniversity,Jan.2002GenerationY,1979–1994Population60million(USA)“GenerationYisPartofaGenerationthatRivalsTheBabyBoominSize”-BusinessWeek,January200210CanadianAgeDemographics49%ofCanadiansare45&older11AlbertaPopulationPyramid,1991versus200135,00025,00015,0005,0005,00015,00025,00035,000051015202530354045505560657075808590+AgeMales91Females91Males01Females0112LabourForceAge&Sex,Alberta2000–2011(%)Source:StatisticsCanada,RAL86420246815-1920-2425-2930-3435-3940-4445-4950-5455-5960-6465-6970-74MaleFemale13WesternCanadianMunicipality–ARealDemographicAssessmentAgeDistributionofAllManagement111225599142162451810204060801001201401601802000-2425-2930-3435-3940-4445-4950-5455-5960-6465+AgeCategoriesTotalEmployees=556Aged45-54=304or55%Aged45+=36