Next Generation Next Destination

FORECAST: TAKING SUCCESSION PLANNING SERIOUSLY

I have made it an annual rite for several years to review and give my take on the forecasts most relevant to my readers fron the Herman Trend Alert for each upcoming year. So here goes the first of four I have selected for 2010.

n      The  forecast that I hope the most becomes reality, the sooner the better because it is vital, is Increasing Attention to Succession Planning and its sidekick “succession preparation.” The longer firms put off serious preparation for the next generation to step into the big Boomer shoes the greater the danger. As  huge numbers of Boomers near the exit in their current workplace (not necessarily out of the workforce as such), the more behind the eight-ball and the less competitive firms will be as the economy picks up and competitors’ innovation accelerates. The current breather many organizations have allowed themselves during the recession will leave them gasping for air. Succession planning and preparation is needed at all times. Anyone whose expertise and contacts will be missed can cause a serious business disruption and loss of clients if quality transitions are not in the works. Remember, talented personnel can leave for numerous reasons besides retirement.

 

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

TRANSITIONING OUT IN RECESSION TIMES

The severe recessionary economy has led to creation of a variety of working arrangements as people consider every opportunity to keep working. Some recently laid off people find project work with their former full-time employer, providing a source of income and a way to keep involved, while the employer benefits from the services without having to increase  full-time headcount.

For individuals on the older end of the spectrum it is not exactly phased retirement, but it shares some of the characteristics. The individual is no longer a partner or executive in a senior position, but in addition to performing services directly may be transferring knowledge that otherwise would have been lost to the next generation.

While this has the potential for a win-win, the transition can be tricky, especially for the individual assuming the new, usually reduced, status. Expectations need to be clarified. The working agreement probably should be reveiwed by an employment lawyer for protection and clarification. Emotional discomfort through a readjustment period can be expected. Relationships with former colleagues are likely to change and the office politics may appear different. Others may resent that they didn't get the work.

In this situation, expect to have to prove yourself and the value of your work, especially if the responsibilities are different from the former ones. You need to show you are a team player and put in extra effort. But be careful not to feel you are taken advantage of (or let that happen).

On the positive side, these phasing out or project work arrangements can provide desirable flexibility to individuals who have worked intensely for many years. They enable a person to stay gainfully employed, still engaged in work that may be challenging and personally meaningful and connected to colleagues.

Can you share experiences from your own organization?

Phyllis Weiss Haserot   www.pdcounsel.com

TRANSITIONING AND THE "CAREER BUCKET"

Periodically I like to post about surveys and other happenings from the Encore Careers blog of Civic Ventures. The latest newsletter and blog features the results of their latest survey on ageism and career opportunities for Boomers. It found some surprising things about what Boomers are and are not willing to do to make themselves attractive for new positions and some unsurprising results as well. Take a look.

Check out some other interesting items there on the psychology of midlife transitions (whatever "midlife" is), where the jobs are, and what interesting and legacy-building jobs and activities members of the Boomer generation are undertaking for reinvention, fulfillment and giving back.

Phyllis Weiss Haserot     www.pdcounsel.com

A GENERATION LATER

I am an avid and frequent theatergoer and supporter, and I have tickets for this coming weekend to see "Vanities, A New Musical," part of my subscription to Second Stage in New York. It is a musical version of a long-running play off-Broadway. The publicity says it "spans the turbulent '60s through the late '80s and explores how important friends are as one faces life's defining moments." It follows three women over a 30 year period.

In an interview, the book writer (and playwright of the original play, Jack Heifner) and the songwriter, both men (the director is a woman) were asked if the problems the women faced would resonate with our world. David Kirshenbaum, who wrote the music and lyrics, said," We're living once again in a time of incremental but incredible revolution - politically, technically, economically, culturally - and even though the battles being waged are different, one hopes from those that were fought in the ''60s and '70s, on a certain level I think social changes are ultimately going to be just as seismic."

Do you agree? With change accelerating geometrically, especially from a technological standpoint, will the changes be even greater?

I am eager to see if I think that had the characters been texting and tweeting instead of communicating in person those bonds of friendship would be as strong. 

In any case, studies continue to be released confirming that people with a solid base of social relationships are the happiest and most able to withstand hardships. Or is it that the happiest people attract the most valuable friendships?

Phyllis Weiss Haserot     www.pdcounsel.com

REFLECTIONS ON BOOMER RETIREMENT & RECESSION

The question came up in planning a program I am presenting to a group of human resources professionals: How much has the severe recession affected Boomers' attitudes and plans for retirement? Based on national (U.S.) surveys and interviews and interviews by various generational experts (including me),  the majority of Boomers (75% in several surveys) wanted to keep working past the age of 65 when asked in and around 2005 (boom years). This is reflected in surveys sponsored by Merrill Lynch, AARP and others. 

Much of the Boomers' desire to keep working was based on non-economic grounds - and still is. They want the intellectual stimulation, social aspects, opportunity to make a difference and to continue learning. For many, it is closely tied up with their identity. Those are strong motivations,

Their resolve to keep working has only strengthened given the subsequent losses in their retirement funds. But it is not an attitudinal  turnaround, though the time frame may have changed. And the leadership tensions between Boomers and Generation X following them have heightened because of economic constraints. The problem is that the pie has shrunken both organizationally and personally, at least temporarily, under current economic conditions - which are, overall, worse than either of the generations has ever seen. While times were good, the fear was of a dangerous skill and leadership gap as Boomers eventually stopped their current careers for encore careers or retirement. And they weren't moving out fast enough for Gen Xers to take the reins. Now the two generations are competing for fewer jobs with less opportunity to hold on or to move up.

Phyllis Weiss Haserot   www.pdcounsel.com

BOOMERS LEADING: WHO'S ON THE NEW WEB?

Generation Y/Millennials may have "practically invented" social media as Ryan Healy said in his recent Employee Evolution blog with their use of the original versions of Facebook and My Space, but it's older people who are modifying and using the new web in droves. What is appealing to the older adopters is the hyper-connectivity, real-time updates, and even spending time online.

Statistics from Comscore reveal that:

*  The average age of a Linkedin user is 40. Since deep profiles are a great asset on Linkedin, and Gen Y has not had time to compile a great deal of experience, that site is not so appealing to them. Also, connecting with people in your own industry is not so compelling to Gen Yers who may not think in industry contact terms.

*   The majority of Twitter users are age 35 or more; the age 45-54 cohort is 36% more likely than average to visit Twitter.

*   The groups that are fueling the tremendous growth of Facebook are older: From October '08 to April '09  the 35-54 year old group grew at a 276% rate, and new Facebook members over age 55 grew more than 194%.

According to a recent Accenture survey, Baby Boomers (people over 45) are latching on to consumer technologies about 20 times faster than the younger generations. There has been a 67% increase of Boomers listening to podcasts and reading blogs.

What explains Gen Yers' reticence to embrace the new web technologies given that they are much more tech savvy than the older generations and consider their electronic gadgets to be an extension of themselves? Healy wonders if it's that they see too much connectivity and time online as unproductive and not getting them where they want to go. Or, he suggests, maybe they just don't view what comes from Silicon Valley as cool.

So my message for Boomers who have been holding out as adopters of the new web and are still thinking that web 2.0 and online social networking is for Gen Y/Millennials is that the numbers indicate otherwise. The business focus is clearly on the use of social networking sites for referrals, reputation building, recruiting and job search. And in tight economic times, online is by far the less expensive alternative. Now is the time to jump in if you haven't already.

Phyllis Weiss Haserot   www.pdcounsel.com

BROADER HORIZONS: SUCCESS ON YOUR OWN TERMS

Though my generational challenges work focuses on the workplace, the parent-child dynamic surfaces there in so many ways and goes beyond the "helicopter parent" phenomenon. The choice of careers is one, and it is being highlighted as high achieving students from elite colleges as well as others confront the fact that in today's economy they are being shut out of highly sought, lucrative financial and business services careers they thought were theirs for the asking.

In a New York Times article (4/18/09) titled "Looking Beyond Wall Street," Steven Greenhouse interviewed Wharton students. Many of them have had to switch their goals of landing finance/Wall Street- type jobs given severely limited opportunities - and several feel liberated!

Here are some examples of change in direction:

*  After a JPMorgan Chase internship with no offer,  pursuing a teaching job in Dubai or working for a wine importer

*  From pursuit of jobs in finance to thinking about becoming a rabbi

*  A finance major (music minor) thinking of opening a jazz club

*  After an internship at Goldman Sachs with no offer, pursuing her entrepreneurial dreams by starting a specialty shoe company

Several of the students cited the pressure to go into investment banking from parents and peer pressure. Now directions that a few years ago would have been nixed by parents who thought an expensive education should bring high financial returns are acceptable. One director of career services said students are looking at a wider array of brass rings and are less caught up in brand recognition.

Interestingly, many Baby Boomers experienced the same parental pressure to be a doctor, lawyer or engineer (or some such career) because parents thought those to be prestigious and highly respected. And many are sorry they didn't follow stronger, often more creative interests.

As they think about their encore careers - their next career/life destinations, I hope they will re-surface those dreams or new ones and go for the joy of it (as long as they can be financially self-sustaining).

It's time for new definitions of success - on our own terms! Perhaps the Gen Y/Millennials will abandon the brand names and desire for the highest paying jobs and discover the "meaningful work" they have been seeking is elsewhere. And the same for the Boomers.

Phyllis Weiss Haserot    www.pdcounsel.com

OPTIMISM ON RESTRUCTURING THE WORKPLACE

I am delighted to see that anecdotal observations about younger men have been documented. For the 10 years I have been involved in work/life flexibility through my inter-generational relations work starting with several events I organized in 1999, I have been saying that we won't see marked change until the young men in the workplace speak up about their desire to have the same flexibility for family time as many women have been expressing and acting on for years. (In my role as a consultant - non-threatening to them - male Gen Xers and younger Boomers have been admitting this desire to me for many years.)

Now a new study, entitled “Times Are Changing: Gender and Generation at Work and At Home,”  released (March 26, 2009) by the non-profit Families & Work Institute (New York) finds that the gap between men and women as far as both desire for increased responsibility in their work as well as resolution of work/life conflict has closed. In fact, the study indicated that men of all ages report work-family conflicts at a great rate than women, up 11% since 1977. The ambition of women under age 29, the Gen Y/Millennials, is at least equal whether they are mothers or not. As recently as 2002 only 48% of young working mothers wanted to climb high on the career ladder. Now the study found that 69% of them do, indicating a generational shift in attitudes from Generation X. It also indicated that prejudice against working mothers is easing among both men and women.

The study was a rigorous one, last carried out in 2008 but asking the same questions periodically since 1977. Those people whose own mothers had worked most strongly agreed that working mothers can do just as good a job with their children as those who stay home - proof in the pudding, it seems. And Millennial/Gen Y men spend significantly more time with their children than the generations before them and have taken on more domestic responsibilities.

These data suggest that - at last - there will be more pressure on employers to make career paths more flexible - for all genders and ages.

Of course, the current severe economic pressures are already (temporarily) putting a damper on vocal expression of demands from both Gen Yers and Boomers and may put a lid on accelerated change until things reach a new normal. Optimist that I am, I believe the turmoil we are experiencing will bring opportunities for real change - for example, finally a move away from the broken billable hour model to a results-oriented work evaluations system that is fairer, more efficient and works better for people and their clients.

Please share your thoughts.

Phyllis Weiss Haserot   www.pdcounsel.com

HOW HAVE YOUR PRIORITIES CHANGED?

Whatever generational cohort you fall into, there has been virtually no escaping the current worldwide economic crisis. Those lucky enough not to have lost their jobs or lucky enough to have gotten jobs to start their careers still are likely to face increased tension and greater pressure to produce in the workplace. People who might have been planning to retire in the next five years are re-thinking that decision. Younger people who thought they had limitless options and could jump from place to place if things were not to their liking are learning what older generations have seen before in economic downturns - but in spades!

As  a congenital optimist (but one who doesn't like being disappointed), I am staying upbeat and believing that there are opportunities, albeit probably different ones. I've even started the Optimists' Tribe which has attracted an overwhelming response.

But, not being delusionary, I am re-thinking my priorities. What about you? Given the current economic crisis:

*   How have your priorities changed? Or have they not changed?

*   How has your life changed? Or not?

*   What positive changes do you see (e.g., in people's values, opportunity for workplace restructuring, more authenticity, transparency, whatever....)?

Please comment and share your thoughts. Thanks!!

Phyllis Weiss Haserot      www.pdcounsel.com