Next Generation Next Destination

A NEW CORPORATE TREND? TRANSITIONING CAREER FELLOWSHIPS

Marc Freedman, Founder and CEO, Civic Ventures / Encore Careers, announced that Encore Fellowships have been established as a retirement benefit by the first company to embrace the idea in a big way, Intel.

Encore Fellowships – paid, part-time, yearlong assignments at local nonprofits – provide a new source of experienced talent to organizations solving social problems, while offering those who have finished midlife careers the chance to transition to encore careers in the nonprofit sector. Intel has become the first company to offer Encore Fellowships to all of its retiring employees in the United States.

Intel retirees who become Encore Fellows will get a $25,000 stipend and six months of health insurance coverage, both paid by Intel. “Retirement benefits are no longer just about retiring,” said Freedman. “Instead retirement benefits can help cover the costs of transitioning to a new, encore stage of work for the greater good.”

Forbes columnist Kerry Hannon wrote, “The end of corporate retirement benefits is an old story. The rise of retirement benefits, well that’s worth some hoopla.”

Do you think we will see this idea blossom into a real trend?  Should people be seriously thinking about this when they hit 50 or 55?

Do you have a story to tell to www.encore.org?

Phyllis Weiss Haserot     www.pdcounsel.com 

 

TRADITIONAL RETIREMENT IS AN OBSOLETE CONCEPT

From Alan Weiss’ Monday Morning Memo 6/27/11

Alan Weiss is no relation of mine, but is definitely in tune with the way I feel about the retirement concept. Here is his Monday Morning Memo 6/27/11. http://www.contrarianconsulting.com

This week's focus point: "Retirement" has no real meaning any more. Most productive people, young and old, continually seek out new ways to express their talents and rejoice in life. To foresee an arbitrary age -- when many are at the height of their powers -- as a time to cease being creative and active is merely a form of conscious decline. Producing value and providing happiness are endeavors that should never be "completed."

© Alan Weiss 2011. All rights reserved

Reprinted with permission.

Phyllis Weiss Haserot    www.pdcounsel.com

FREEDMAN’S “THE BIG SHIFT”: MORE THAN BOOMER REINVENTION FANTASY

Marc Freedman, founder of Civic Ventures’ most recent book, “The Big Shift: Navigating the New Stage Beyond Midlife,” deals with the newly defined phase of life between midlife and old age. He calls it the encore phase, rejecting “young old” and “working retired” labels as unsatisfactory and inaccurate.

My side note: Interestingly, another phase of life has been identified in relatively recent years as well between adolescence and adulthood, but it is not referred to in the book. It is known either as emerging adulthood or enduring adolescence. I mention it because together the two phases illustrate how the lifecycle is stretching out not only in years, but also diversifying, presenting complexities, challenges and opportunities we all need to understand. The big shift is even shiftier than Marc Freedman contemplates.

But back to his focus on the post-midlife shift. Freedman does an excellent job of describing the oxymoronic nature of this stage in great detail: “A World Out of Whack,” as one of the chapters is titled…”individuals are thrown into an identity chasm”… “myth of Boomer reinvention.”  Freedman sees the “reinvention fantasy” as part of the problem. He sees the “obsolescence of much of what’s accepted as hard reality by many economists and demographers of today.”

Currently, social entrepreneur Freedman says,” the transition from midlife to this new encore stage is a do-it-yourself project with little guidance, few role models, and scarce resources.” Imagine the windfall of talent that could result, he says, helping carry us toward a new generation of solutions for growing problems in areas like education, the environment and health care.

Freedman advocates for a new map of life and how to navigate it. Boomers will not deal with their 60s and 70s as generations before, both given their fitness and their mindsets. He is optimistic that this encore stage can be characterized by “purpose, contribution, and commitment, particularly to the well being of future generations.” (I am sure the skeptical Gen Xers and Yers will be glad to see that happen.)

Freedman lays out 10 possibilities for translating opportunity to large-scale fruition. The missing piece is where the funding and institutional fortitude to make it a reality will come from. He is hoping his imaginative and inspirational ideas will attract the attention and resources.

Marc Freedman is not only an important and articulate voice, he is a doer. And with a fortunate alignment of the stars and a great deal of effort, it might happen.

Phyllis Weiss Haserot       www.pdcounsel.com

 

 

ARE BOOMERS TAKING AWAY NEXT GENERATIONS’ JOBS BY NOT RETIRING?

By not retiring on the schedule expected, what affect are Boomers having on the younger generations’ careers? I wrote about this issue at the request of Aging Today, a magazine (March/April 2011) of the American Society on Aging.  Here’s my briefer answer.

In a thriving economy, this question would not even be asked. We’d be challenged by what was expected before the severe recession in 2008 – a labor and talent shortage. Forecasts said that the retiring Boomers couldn’t be replaced with the much smaller Gen X cohort – even with the ambitious Gen Y/Millennials vying for quick promotions. Eventually the supply and demand balance will change to reflect those demographic forecasts.

There shouldn’t be an expectation of a mandatory retirement age for people who are productive, energetic, knowledgeable, connected and willing to be team players. While that’s certainly not all the Boomers, it describes a lot of them. If all the Boomers left with their knowledge, skills, judgment and contacts, the workplace and organizations in general would suffer significantly.

 On the other hand, shifts are in order, and younger people need opportunities to grow, prosper and lead. That means that many boomers need to accept a shift in their roles, a transfer of leadership sooner or later and frequently, situations in which they are reporting to and supporting younger managers. For my thoughts on the last, read http://www.secondact.com/2011/04/how-to-survive-a-kid-boss/

Phyllis Weiss Haserot    www.pdcounsel.com

 

 

COMPARING RETIREMENT EXPECTATIONS

Changes in retirement polices in both the public and private sectors are hot issues. Have you thought about how people from various countries and cultures think of retirement?

The HSBC group conducted a study of over 11,000 people around the world to find out how individuals in various cultures perceive what retirement means and how they expect or want to spend it.  The study and analysis is part of HSBC’s “Future of Retirement” series and was reported on in Employee Benefits News (Nov. 2010). The differences and similarities are quite interesting. Here is a summary:

• Americans - a time for new careers and opportunities, spiritual fulfillment. Less focused on health or family than people in other countries, according to the HSBC survey.
• Canadians – a time of reinvention, ambition, and closer relationships with family friends.
• Chinese – older generations want to stop working and relax; the younger generations see retirement as opportunity for a new life but with continued careers.
• Japanese – a time of good health, continued fulfillment from work and family is what they look forward to.
• French – (who are currently fighting to keep a low retirement age) – a time of aspirations and dreams, but they worry about being a burden on their families.
• British – a time of independence, self-sufficiency and personal responsibility. They are counting on neither the government nor family to take care of them.
• Brazilians – expect considerable support from their families as they slow down and relax with family and friends.
• Mexicans -  expect to continue hard work and look forward to hard-earned financial stability.

 The differences probably say a lot about different cultures and political and economic systems. There is a lot to sort out in order to get the nations cooperating to really recover from the world-wide financial crisis we have been experiencing.

 Phyllis Weiss Haserot     www.pdcounsel.com

CFOs OUTLOOK ON RETIREMENT, SUCCESSION PLANNING AND TALENT RETENTION

The 3^rd Quarter CFO Outlook Survey, conducted by Financial Executives International and Baruch College’s Zicklin School of Business, showed optimism on hiring and a desire to delay retirement out of both desire and need. The survey comprised interviews of 249 corporate CFOs electronically from October 6-14 from both public and private companies and from a broad range of industries, revenues and geographic areas, including some off-shore companies. 

The survey also revealed the following priorities coming out of the recession and following the staff reductions experienced by many:

• Retention of remaining talent is a priority for 80 percent of CFOs.
• Training and development ranked as the top tactic for retaining talent (47 percent).
• Compensation followed closely (45 percent).
• Improvements to office atmosphere (35 percent)
• Team building (35 percent), and
• Ensuring opportunities for career advancements (30 percent).

The survey found that many CFOs plan to work beyond the traditional retirement age. Further, they are, in fact, in favor of increasing the retirement age. Forty-one percent anticipate that they will work past age 65 out of desire while 31 percent will do so out of need.  Three percent of them already are working beyond 65. As for an overall increase to the traditional U.S. retirement age, 59 percent favor it, with three years being the average desired increase among those respondents who specified an age.

Succession planning continues to lag despite lip service to its importance. Only 30 percent of responding CFOs currently have a plan in place. While 40 percent of the remaining CFOs believe a plan should be created, another 31 percent do not see the need for one at all.

Full survey results and historical data comparisons are available at www.financialexecutives.org.  The study also is available online at the Financial Executives Research Foundation bookstore and on the Baruch College home page at www.baruch.cuny.edu.

NEW ABA CHAIRS HAVE SUCCESSION PLANNING FOR MEMBER PRACTICES HIGH ON THEIR AGENDAS

From my conversations with future American Bar Association presidents and incoming section chairs at the ABA Annual Meeting, transitioning of practices and continuing careers of senior lawyers (now in midlife) is a big concern and high ranking agenda item. It’s a concern from the standpoint of retaining members and keeping them engaged. It also reflects empathy for their peers who are approaching the time they will be faced with the need to make significant choices. Many members may find themselves panicked and physically and mentally stressed because lack of forethought has led them to a career and personal precipice.

 

Several bar leaders expressed to me a great interest in presenting programs that will nudge and guide

NEW REPORT ON SUCCESSION AND TRANSITIONING PLANNING

I want to alert those of you concerned with these vital issues that Managing Partner Magazine's new report Transition and Succession Planning for Law Firms is now available. I provided much of the background for Part I and an article and two sidebars for Part II – the case study section.

Below is a brief overview. A full executive summary and table of contents can be found here.

Firms are facing a leadership dilemma - Quite simply, the large ‘baby-boomer’ generation is nearing retirement, and many will soon leave their firms. With this demographic phenomenon looming on the horizon, firms are faced with a situation in which much of the next generation is either unwilling or not suitably trained to take over the demanding responsibilities of leading their businesses.

If your firm fails to implement succession strategies now you may well find yourself with a leadership gap in just a few years. And what will start as an internal problem can soon escalate to a business disruption and disadvantage as your firm loses vital knowledge and the means to continue to effectively serve your clients. Rather you want the means to impress your clients with the kind of long-term thinking that protects business interests.

The report considers numerous issues including:
- The impact of generations X and Y on the practice of law in the 21st century. What does senior management need to know to ensure a smooth transition to the next generation?
- The retirement of the baby-boomer generation. What ongoing risks does this pose to a law firm’s business stability?
- The current preparedness of the younger generation to take the reins of their businesses. Do they even want to follow in the retirees’ footsteps?
- To what extent has the recession turned an ongoing succession challenge into a potential crisis, as numbers of lawyers, support staff and resources have been cut?
- What are the potential professional development and human resources solutions?
- What role can technology – and particularly Web 2.0 tools – play in addressing the succession challenge?
- And whose responsibility is succession planning anyway?

This important new report includes highly practical case studies from firms in the U.S and UK who have successfully implemented succession planning, including Weightmans LLP; Mills & Reeve LLP; Eversheds; Optim Legal; Macpherson & Kelley Lawyers; and Borden Ladner Gervais.

For more information, contact  melam@ark-group.com.

Phyllis Weiss Haserot     www.pdcounsel.com

HOW ATTITUDES TOWARD ECONOMIC RECOVERY INFLUENCE BUSINESS TRANSITIONING

A new MetLife survey says the severe economic downturn has revised the retirement mindset for all generations. Better late than never (?) all generations regret their financial behavior pre-crisis. Amassing too much credit card or other debt was most prevalent among Gen Xers (54%); and Boomers more than others (22% to 17% for all Americans) regret insufficient diversification of assets.

Gen Yers expect the economic recovery to come sooner than other generations do. As a group, they expect the economic recovery for the country (29%) as well as for themselves (49%)  to come in less than 2 years, according to the survey. Older Boomers (over age 55) are the most pessimistic about their own financial recovery, probably because they have less time to make up for recent losses. 38% of younger Boomers believe their personal financial recovery will take at least 10 years.

These attitudes haven't translated into much action so far. 44% haven't done anything yet to change their retirement/investment behavior, probably owing to both inertia and confusion. 54% of Gen Yers haven't made any changes, and 45% said the financial crisis had little or no impact on them. Is this undue optimism, since job loss is high, along with salary cut-backs, and not showing signs of turning around soon? Or is it not knowing better, or the influence of an upbringing which told them they would be successful whatever the situation?

In the workplace, will the behavior and attitudes found in the survey mean an increasing divergence in opinion on how a business should make its investments in technology, training, risk management, etc.? Protective strategies vs. future investment at higher risk aiming at higher gains?

Will these differences make it more difficult to achieve smooth transitions of practices and clients from one generation to another? As individuals, according to the study, are increasingly realizing they need and are turning to financial advisers, will firms turn to advisers to help them achieve more harmonious, win-win transitioning that will benefit the firm overall, those who are leaving, and those who continue on?

Your thoughts?

Phyllis Weiss Haserot      www.pdcounsel.com

JUMPSTARTING SUCCESSION PLANNING FOR ECONOMIC SUSTAINABILITY

Faced with the inevitability of a demographic perfect storm (of pending Boomer retirements and a much smaller generation behind them) compounded by an economic one, how can firms address prospective talent development and leadership gaps and economic sustainability? By re-framing and executing an institutionalized succession planning process built on flexibility and transparent criteria and benchmarks.

 

Given the need to re-think succession planning with a greater sense of urgency, we are focusing on economic sustainability in our 4th webcast on succession and transitioning planning. Hosted on the West LegalEdCenter, the webcast will take place live on December 9th at 12:30-2pm Eastern time and will be available on demand for 6 months after that.

 

We hope you will join us. For more information and to register, click here.