Presentation - Older workers in a sustainable society - great needs ...

ploye eesEmObserved and expected retirements1998 - 2014350300250200150100500199820002002200420062008201010122014Total noretiredRetired excldisabilitypensionsExpectedretirementst© Vattenfall AB4

Facing the dilemmea of the combined demographicand life-style changesTime in direct contribution to production of goods and servicesLongertime inschoolsEarlierretirementIncreased lifetime expectancyAgeIncreasing age ofHigher pensionsfirst-birth giving;fewer children bornDependency ratios1967: 3.9 / 12003: 2.6 / 12050: 1,6 / 1Time outside the direct contribution to production of goods and services

Research questions• What was the content and form of the Ageing Workforce ManagementProgram in Vattenfall• How was the program received by the participants and their manager• What were the impacts of the program; and• To what extent can this program be recommended as a means toprolong work careers for older workers?© Vattenfall AB6

Study design and method• Design:– Case study from 2005 to 2009• Methods– Open-ended interviews• Workers in 80-90-100 program: 29• Managers: 19 + 10• Union leaders - 4– Questionnaires• Workers in 80-90-100 program: 303 (=77 % response rate)• Managers: 280 (=40 % response rate)– Company sick leave data– Company work environment survey data– Documents– Participation in meetings© Vattenfall AB7

The initiation of the“Vattenfall Ageing Workforce Management Program”• April 24th 2001 the General Managerannounced 65 years of age as the standardretirement age with rights to full pension in thecompany, with no exceptions but– health issues, and– special agreements previously made for outdoorlinemen• Additional programs added from 2003 andonwards© Vattenfall AB8

ORIENTATION MATRIX- AGE MANAGEMENTPROBLEMS / POSSIBILITIES MEANS / SOLUTIONS RESULTS / AIMSINDIVIDUAL-functional capacity-health-competence-work motivation-work ability-work exhaustion-unemployment-age management-promotion of physical, mental and socialresources-improving healt-developing competence-coping with changes-participating-better functional capacities-better health-better competence-better work ability-less exhaustion-lower unemployment risk-better quality of lifeENTERPRISE-productivity-competitiveness-sicness absence-tolerance for change-work organisation-work environment-recruitment-age management-Individual solutions-co-operation between age groups-age-ergonomics-work-rest schedules-flexible working times-part–time time work-tailored competence-training-better total productivity-better competitiveness-less sick leaves-better management-competent manpower-better image-lower work disability costsSOCIETY-attitudes towardwork and retirement-age- discriminationi i -early retirement-work dissability costs-retirement costs-health care costs-dependency ratios-age management-changing attitudes-preventing age-discrimination-improving age-concious work policy-changing age-concious exit policy-less age-discrimination-later retirement-lower unemployment costs-Lower health care costs-better national economy-higher wellfare© Vattenfall AB9

Program interventionsCafeteria-style benefits planHealthy employeesCareer changeNum mberAge and healthawareness leadership57+ seminarsSenior resource poolYoung professionals80/90/100 scheduleUniversity InfoCompetence transfer / mentoringTrainee”Recent graduates program”30 35 40 45 50 55 60 65Age© Vattenfall AB10

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A good exampleLennart Meister just turned 67He has worked at Vattenfall since 1974”To quit working is unthinkable to me. It’s not in mynature. I think it’s fun to work, I like what I’m doing. But ithas to work at home too, fit in with your family and ofcourse you have to be reasonably healthy. So long as itworks I will continue to work. I have an agreement towork until I am 70. But, I have no plans to quit.I have not thought much about the financial aspects, butfuture retirement income is of course improved bycontinuing to work. That doesn’t affect my plans,however.I have no opinion about what others should do. Everyonehas to feel what is right for them. It depends on yournature, on your own person. There are many possibilities.I feel privileged il to work with something I really like.© Vattenfall AB12

57+ Seminars - Participants(Based on interviews, N = 15 randomly selected participants)• Participants were generally satisfied with theseminars– Reached a large number of the senior workforce, but not all– Vattenfall was now perceived as welcoming also seniorworkforce and in need of their competence:”They need us andwant us”– Several participants wanted to extend their career to 65 whilepreviously planning to retire at 62– The 80/90/100 arrangement was for some a pre-requisite it forprolonging their career, own health was seen as a necessity toprolong the career, and the two were related– Learning and development of wages in senior years was seenas a positive attribute– Work content and satisfaction important for prolonged careers© Vattenfall AB13

57+ Seminars - Managers(Based on interviews, N = 11 randomly selected managers)• Managers– Managers should take part in the seminars astheir attitudes makes a difference– Invitations should be sent directly to the seniorworkers to avoid filtering be negativemanagers acting as bottlenecks and gatekeepers– Knowledge transfer and the generationsrelays were of significant concern to theparticipants© Vattenfall AB14

Reduction in working hours (80-90-100 schedule)• What: new working schedule– 80 % workload (4 days a week or any other schedule)– 90 % of wages paid– 100 % of pension point earnings• Why– Retention of competent senior workforce• Who are entitled– All workforce aged 58+• How– The worker must apply to be enrolled into the 80 / 90 / 100 scheme– Nearest manager decides – depending upon• Type and amount of work to be handled by the unit• The availability of competent workforce– Individual re-evaluation every 6 months– Renewals are possible© Vattenfall AB15

Reduction in working hours (80-90-100 schedule)• All participating workforce satisfied with the 80/90/100 working schedules– Facilitates continued work with chronic health problems– One day less for long distance commuters– Prepares for retirement, practically, socially, emotionally– Feel more motivated and energised for, and alert at work (win/win)– Will continue working to 65 provided a continuation of the schedule– Perceived and valued as recognition for seniority competence at the workplace– Feel uncertain about the continuation as it is re-negotiated every 6th month• Managers observe– More motivated and engaged workforce with more ideas for problem solving– More administrative work– Difficulties on teams due to reduced d manning / increased workload on colleagues– Some instances of unintended use of the benefits– Lacking organisational support for replacing the lost man-hours• Organisational practices regarding the 80/90/100 differ between units– Some demands health reasons as the only valid entrance key to the schedule– Some units are not offering the schedule– Fits well with double manning as part of the “generation relay”© Vattenfall AB16

Reduction in working hours (80-90-100 schedule)(survey 2009, n=237)Jan 2009: 303 (24 % of the 58 + population)• 53 % Same amount of work on shorter time• 58 % Improved achievements• 85 % Improved health• 53 % Higher motivation• 32 % Decreased sick leave rates• 94 % Satisfied with their work• 88 % Willing to work up to 65 years of age• Competence transfer:– 37 % Discussions– 53 % Being asked how to / why / where / with whom– 5 % Organised teaching / mentoring– 5 % Not involved in any competence transfer© Vattenfall AB17

Senior Resource Pool (SRP) - 1(Based on interviews, N= 5 seniors + 3 previous managers + 5 present managers)• Participants– Satisfied with support in finding new engagements– Satisfied with the new work and organisational placement• The most positive comment: felt valued by the organisation• The most negative comment: better than being unemployed– Engagements only in time limited projects creates uncertainties• Organisational culture inconsistent, some managersare macho-oriented– SRP-solution too soft: the effective manager fires the redundantworkforce!– We have for long been shouting “wolf” but done nothing, now it’shere for real© Vattenfall AB18

Senior Resource Pool (SRP) – 2(Based on interviews, N= 5 seniors + 3 previous managers + 5 present managers)• Employing managers– Thrust-worthy and self-managed, bringing managementskills too teams– Knowledgeable about the organisation– Skills and insights in the tasks ahead– Short start period, working effectively from day one– To be preferred compared to externally hired workforce– Brings no hidden agendas to the unit– More reliable as advisors, compared to younger careeraspiringcolleagues– Competing with young workforce about access to themost interesting projects© Vattenfall AB19

Competence Transfer Mentoring - 1(Based on interviews, N = 11 mentors x 11 protégés)• Mentors’ experiences: a successful project, must becontinued– Mentor training program on tools and personal developmentappreciated– Mentoring on work, personal skills, leadership, coaching andprofessional and personal support, and work-life balance– Stimulating, interesting, personal learning and learning about workculture and organisational issues, and communication skillslearning– New networks developed© Vattenfall AB20

Competence Transfer Mentoring - 2(Based on interviews, N = 11 mentors x 11 protégés)• Protégés’ experiences: an extraordinary option fordevelopment– Mentoring mainly on work and leadership issues and supporton leadership role, on personal and career decisions, i onorganisational and personal values, values and relationshipdevelopments, and work-life balance– Mentor asked questions and stimulated reflection anddiscussion– Valuable to develop new self insights and insights into valueissues, work cultures and own organisation, receive adviceand support and access senior experiences on real lifeexamples– Improved professional role performance and improvedmanagement qualifications– New networks developed© Vattenfall AB21

Competence exchange:”The Dialogue Method” 1(Based on two hour group interview with 9 participants)• What:– A Royal Swedish Institute of Technology pilot project 2006 with 9participants, repeated 2008 with 9 particopants• Purpose:– To make visible, analyse and use experience-based knowledge and knowhow– To make knowledge exchange with new employees more effective• Form:– Five one-day seminars for 8 – 10 persons– Reading texts vaguely or even unrelated to the subject– Writing up an essay on own reflections related to the read text– Reading text aloud in class and involve in discussion– Notes are taken by secretary and distributed to the participants fordiscussion in next meeting© Vattenfall AB22

Competence exchange:”The Dialogue Method” 2(Based on two hour group interview with 9 participants• ”The method leans on pattern recognition of principles – searching for relationshipsmore than content”• ”Learning material (various texts and oral inputs) and the writing process wereunfamiliar and frustrating. Writing is a strong practical tool – it forces you into thinking”.• ”It was more like enjoying arts – experiencing make the unconscious more accessible”• “Achieving understanding at one point leads to seeing further unclear issues beyond”• ”Develops profound respect for experiences – own and those of others”• “Enhanced self-esteem by feeling own experiences valued by others – may increaseindividual and team capacities”• “Serves best when searching for solutions to unknown problems”• “Fits best into dynamic and chaotic situations allowing to dive into the problem andaccepting loss of control for a while”• “Limitations include to have no personal prestige in solutions and social roles, andbalanced social interactions where all feel free to participate”• “Requires skills in reading and writing, motivation and careful group design”• “No main teaching / learning strategy, t but valuable as complementary way for some”© Vattenfall AB23

Cooperation with workers’ unions (interview)The Ageing Workforce Management isbuilt upon consent• Support to the initiative• Generally satisfied with outcomes• Have clearly enabled workers toprolonging their careers• Would prefer the 80-90-100 to be anegotiated right for the workforceinstead of a management tool• No possibilities for unions to intervenewhen workers application for 80-90-100is refused• Strong need for management training© Vattenfall AB24

Managers opinion about means to extendworkers’ careers (five highest only, n=280)© Vattenfall AB25

Managers’ perceptions p of discriminatory practicetowards senior workers (Percent). (n= 357)Less wageincreaseNo newtechnologyLess trainingNo promotion0 10 20 30 40 50 60PercentStrongly disagree Disagree Agree Strongly agree© Vattenfall AB26

Managers’ beliefs about senior workforce. (Percent) n= 357.Low interest t intrainingLess flexibleNegative tochangePassive inchange0 10 20 30 40 50 60PercentStrongly disagree Disagree Agree Strongly agree© Vattenfall AB27

Planning to leave Vattenfall80706050

Co-operation with my manager on formulatinggoals for own work8070605040

Company change processes25201510

% of work king days7,00 %600% 6,00 5,00 %4,00 %Vattenfall Sweden - Sick leaves (days lost)Karensdag mänKarensdag Kvinnor2-14 män2-14 Kvinnor3,00 % 15-90 män2,00 %15-90 kvinnor1,00 %0,00 %-19 20- 25- 30- 35- 40- 45- 50- 55-24 29 34 39 44 49 54 5960->90 män>90 kvinnor© Vattenfall AB31

Sick leave: 80-90-100 group and Vattenfalltotal45 4,5435 3,5325 2,5215 1,5105 0,502004 2005 2006 200780-90-100VF total© Vattenfall AB32

Average retirement ages 1998 - 2008646362616059TotalExcl disability pensions585756551998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008© Vattenfall AB33

Media managementPassing on knowledgeand Incentives to stayuntil 65© Vattenfall AB34

Employer ofthe year 2006© Vattenfall AB35

Conclusions• Most managers and workforce appreciated the program• The program has contributed to– Awareness of the senior workforce issue and the challenges of the“generation relays”– Increased retirement ages– Low sick leaves for workforce in the 80-90-100 programs• Perceived working conditions of workforce aged 51+ were generally equalto or better than working conditions for the younger workers, Stress andwork-home overflows are serious exceptions• The program developed into a dynamic process attracting externalattention ti thatt improved the company image and strengthened th the effectsof the program• Attention must be paid to managers and their decision latitudes© Vattenfall AB36

Decision latitude for age management issuesamong Vattenfall’s mangers (Percent) n= 357.60Support from subordinates5040Possibilities to organise30Human resources20Budget resources100StronglyagreeAgree Disagree StronglydisagreeGoes well with increasingdemands© Vattenfall AB37