Choosing Alternatives to Layoffs

This week I was featured in a Los Angeles Times article, Choosing Alternatives to Layoffs, for helping a client navigate alternatives to layoffs. In this particular situation my client, faced with the challenge of needing to cut expenses, chose to move the workforce to a 4-day work week. Despite the reduction in pay, employees overwhelmingly supported the decision. Morale has stayed positive, productivity has increased, and loyalty to the company is stronger than ever. The 4-day work week may not be right for every organization and circumstance, but it is worth considering. Other options to consider include:

• Temporary unpaid leave of absences - Encourage employees to take time off from work while maintaining their employment status
• Job sharing - Decrease immediate headcount by allowing 2 people to share 1 job and retain benefits
• Reduced hours & pay cuts in exchange for stock - Avoid layoffs and increase loyalty by trading a percentage of an employee's salary for company stock
• Telecommuting - Reduce overhead by eliminating the need for office space
  
• Layoffs with hire back bonuses - When layoffs are unavoidable, position yourself for a quick turnaround by offering hire-back bonuses to anyone willing to be rehired within an 18-24 month period

What innovative actions are you or your companies taking to avoid layoffs now and retain workers for the imminent labor shortage that is looming on the horizon?

Millennials in a Global Context

Information about generational differences in America abounds, but today’s talent marketplace is global. To provide this critical perspective, the Interchange Group has partnered with Kairos Future, an international think tank and consulting firm dedicated to research on emerging workforce and consumer trends around the world. In their Global Youth study, Kairos explores national differences in generational attitudes toward employment across 17 countries. Their findings about American Millennials (born 1981-2000) in a global context have significant implications for U.S. and multinational companies alike.

• Education: American Millennials place a lower value on having a university degree than young people in China, Russian, Taiwan and Poland.
• Entrepreneurialism: American youth rank below Chinese, Russian, Polish, Estonian, Indian, Spanish, Swedish and Taiwanese youth in their interest in starting a company in the next 15 years.
• Job Security: Employment security is among the 3 highest career priorities for young Americans and Europeans, but not for young Russians, Chinese and Indians, who place a higher value on good career opportunities.
• Career Orientation: Childcare, healthcare, and education are among the 4 most popular industries for Millennials in the U.S. - Nowhere else except in France is this the case.
• Willingness to Work Abroad: 21% of American youth state that they would like to live abroad for a period of time, compared with 53% of Chinese, 44% of Indians and 32% of Swedes.
  

Comparisons of American Millennials to their international peers will have a profound impact on the way employers plan for and manage their talent in the next decade. How prepared is your organization for this shift?

For more information on this research and for insight into recruiting and managing the different generations in your workplace, contact us at www.interchange-group.com.

April 24 Webinar: Generational Differences in Volunteerism

Many nonprofits have seen their volunteer and charitable giving rates decrease in recent times. The current economic crisis only magnifies the impact of this trend. The shortage of support, however, is not due to a lack of money, energy, or passion. Rather, it stems from fundamental differences in the way that each generation sees the role of nonprofits in society. To sustain and thrive nonprofit organizations must understand and capitalize on the unique skills and motivations of each generation. The future of their programs and services will depend on it.

In honor of National Volunteer Week (April 19-25) the Interchange Group is hosting its popular webinar, "Generational Differences in Volunteerism - Recruitment & Retention Strategies for Nonprofits." The 45-minute session is designed to equip nonprofit executives and boards with new insight and techniques for recruiting, retaining and engaging top quality board members and volunteers. Key learning includes:

• Tap into the unique values and motivations for volunteering that each generation possesses
• Optimize the skills, experience and resources of older generations to increase participation and effectiveness
• Harness the energy of younger generations and the power of social online networking in nonprofit fundraising and advocacy
• Identify the best communication channels and messages for each generation to maximize recruitment impact and to increase volunteer engagement
  
  Details and registration

Traditionalists Return To Work (Originally published February 2009)

Decreased retirement portfolios and increased longevity are bringing Traditionalists (born ca. 1925-1943) out of retirement. Recent Bureau of Labor statistics indicate a dramatic spike among job seekers over 75 years. Traditionalists are looking for jobs that satisfy their financial, health and social needs. Part time work, accommodations for physical disabilities and access to healthcare are priorities. In many cases, Traditionalists will compete against younger candidates who may appear more flexible in their employment needs. As a result, employers will need to be extra mindful of actions that could be perceived as age discrimination. Consider the following:

• Do your job descriptions clearly outline the activities and qualifications required?
• Will you need to provide training on technology or other skills for older candidates to succeed?
• How will you handle situations in which older applicants appear overqualified? Have your recruiters and hiring managers received age discrimination training?
• Are you equipped to handle requests for Americans with Disabilities Act workplace accommodations?
• Do your supervisors have the skills to manage intergenerational teams?

In the coming decade the percentage of older workers will rise as the U.S. population ages. How employers manage the needs and priorities of Traditionalists will be a good indication of future workforce challenges and opportunities. Are you ready?

Want more insight and tips for managing the different generations in your workplace? Contact us at www.interchange-group.com.

Generational Differences in Volunteerism (Originally published November 2008)

The 2008 U.S. presidential campaigns demonstrated that volunteerism and charitable giving are alive and well in America. So why are so many nonprofits seeing their volunteer rates and fundraising decrease? Generational shifts in values and attitudes toward the role of nonprofit organizations give us a clue:

• Traditionalists grew up in the wake of the Great Depression, leaving them with a sense of duty to give back to society and make a lasting contribution.
• Baby Boomers came of age during the political upheaval of the 1960's and 1970's and believe in the power of advocacy to impact social change.
• Generation Xers witnessed the decrease in government funding for social needs during the 1980's and emerged as independent minded social entrepreneurs.
• Millennials are used to team-based learning and volunteer requirements at school and are looking to grassroots activism to solve the world's problems as they mature.

The shortage of volunteer leaders that many nonprofits and their boards bemoan is not due to lack of interest, but due to fundamental differences in the way each generation sees the role of the nonprofit in society. To bridge the divide nonprofits will need to recognize and capitalize on the unique skills and motivations of each generation. The future of the nonprofit world depends on it.

For details on any of these solutions or insight into managing the different generations contact us at www.interchange-group.com.

Alternatives to Layoffs (Originally published October 2008)

The economic crisis is causing many organizations to consider reductions in force as necessary cost cutting measures. Mounting research shows that companies that terminate a significant portion of their workforce fail to outperform their competition. Most often, the long-term costs of layoffs outweigh any initial savings. What's more, layoffs increase an enterprise's vulnerability to lawsuits, acts of retribution, and drops in productivity and morale.

But a bigger problem is looming on the horizon. Layoffs will cut off talent pipelines during a time when employers face unprecedented demographic shifts in the labor market. Drops in 401K values will only stave off the retirement of Baby Boomers temporarily. When they do begin to exit organizations the subsequent labor shortage will result in a talent vacuum. Reductions in force now will put organizations at a serious disadvantage in retaining top talent and transferring knowledge in the future. Many companies will never recover. To weather the storm, consider the following alternatives to layoffs:

• Temporary unpaid leave of absences - Encourage employees to take time off from work while maintaining their employment status
• Job sharing - Decrease immediate headcount by allowing 2 people to share 1 job and retain benefits
• Reduced hours & pay cuts in exchange for stock - Avoid layoffs and increase loyalty by trading a percentage of an employee's salary for company stock
• Telecommuting - Reduce overhead by eliminating the need for office space
  
• Layoffs with hire back bonuses - When layoffs are unavoidable, position yourself for a quick turnaround by offering hire-back bonuses to anyone willing to be rehired within an 18-24 month period

For details on any of these solutions or insight into managing the different generations in your workplace contact us at www.interchange-group.com.

Millennials & the 2008 Election (Originally published September 2008)

Please join us in welcoming Morley Winograd and Michael D. Hais, co-authors of Millennial Makeover: My Space, You Tube and the Future of American Politics as guest editors of this months Generational Interchanges edition!

Since the establishment of the U.S. two-party system, American politics have been characterized by a persistent pattern of stable electoral results lasting about 40 years interspersed with realignments or makeovers that turn things upside down. Two underlying forces produce all realignments: the coming-of-age of a sizable dynamic generation of young Americans and a major advance in communication technology. While the Baby Boomers (born 1944-1962) and their love of television produced America's last political makeover in 1968, this year's election will result in a realignment driven by the political emergence of America's largest generation, the Millennials (born after 1981), and their internet-based social networking technologies.

Almost 40 million Millennials will be eligible to vote in November. They currently favor Obama by about a 2:1 margin according to recent national surveys conducted by Research 2000 and the Pew Research Center. The majority of Millennials identify as Democrats because, on the whole, they favor policies associated with that party, such as efforts to reduce economic inequality and tolerance on social issues. But McCain's emphasis on national security could sway their vote since Millennials are also concerned about this issue. Should Millennial support for Obama hold until Election Day, the generation's size would provide him with more than an eight million vote margin among young voters, a pickup of more than six million votes over the level of support John Kerry received in 2004 from this same age group.

Just as Millennials in the workplace will completely transform how our private sector institutions are managed in the years to come, Millennials in the electorate will completely transform how our government is run, and by whom, in this year's election and for 40 more years thereafter.

Note: The above transmission is not a political endorsement of any kind nor it is intended to represent the political beliefs or affiliations of any representatives of the Interchange Group or its partners.