Building Tomorrow's Senior Living Workforce in Today's Economy: A Framework for Action by Argentum

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Building Tomorrow’s Senior Living Workforce in Today’s Economy: A Framework for Action by Dr. David DeLong Argentum Workforce Development Symposium Washington, DC October 25, 2016

Smart Workforce Strategies david@SmartWorkforceStrategies.com (978) 369-5083 www.SmartWorkforceStrategies.com © D.W. DeLong 2015

Would You Like To: §  Learn more productive ways to think about your industry’s workforce challenges? §  Identify leading edge solutions for recruiting, development & retention of critical staff? §  Take more productive steps in leadership development? §  Better align your company’s culture with your workforce & leadership development needs?

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What Are Your Assumptions About Tomorrow’s Workforce?

My Premise

Every senior living executive can enhance their company’s workforce strategy by taking any of six steps.

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Agenda

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Where Do You Fit in This Drama?

•  6 Critical Success Factors for Building an Effective Senior Living Workforce •  What Will You Do Differently?

•

Size matters – Brookdale, national, regional, smaller operators

•

Number of employees: 80,000+ to 100s

•  Geography is factor in recruiting & retention, Las Vegas, rural Minnesota, Cleveland •

Focus & offerings vary: independent living, assisted living, memory care

•  High-end boutiques, mid-market, lower end •  Level & strategy for growth varies

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Themes I Heard From You! How to: •

Improve recruiting & retention of front line caregivers?

•

Develop a workforce & leadership development strategy that realistically supports our business strategy?

•

Find more diverse pool of senior mgt talent to draw from?

•  Build a culture for developing & retaining talent? •  Make our industry “sexier”?

Why Senior Living Industry Will Conquer Workforce Problem §  Senior living jobs & career opportunities are not going away. It’s a growth industry! §  Industry offers relatively low-skilled jobs for grads who lack resources & networks to compete for higher skill professional jobs. §  It’s meaningful, mission-driven work that can attract millennials & younger boomers §  Challenging careers offer work/life balance §  Flexibility in designing solutions: no govt security clearances, can use part-timers, ages 18-80 © D.W. DeLong 2016

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EXERCISE: Why Will Senior Living Meet Challenges of Changing Workforce? •  Turn to colleague and answer: What gives you hope that the senior living industry will meet the challenges of an aging, changing workforce? •  Offer examples of initiatives or changes that have made a significant difference in addressing workforce & leadership development problems. •  Share your ideas with others. Notice similarities & differences between them.

Macro Trends Change Strategic Importance of Workforce §  Aging demographics §  Work more technical, complex §  Recruiting/hiring process §  Changing values §  Competitors investing

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Percentage Change in U.S. Labor Force Participation by Age: Projected 2012-22

In the United States, the percentage of workers 55+ is expected to increase by 29% between 2012 and 2022, whereas the percentage of workers ages 25-‐54 will grow by only 2 percent. The forecasted percentage of growth for workers age 65+ is much higher (74%) than for any other age category.

Source: Horrigan, M.W. (2014, June). Labor force parAcipaAon: Trends and projecAons, a focus on older workers. © D.W. DeLong 2016

Industries Struggling to Find Qualified Workers §  Trucking §  Health Care §  Logistics §  Tool & Die §  Public utilities §  Religious workers §  Rail transportation §  Construction

•  •  •  •  •  •  •  •

Financial services State & federal govt Sign industry Funeral industry Rural states – Maine Boiler manufacturers Hydraulics industry Manufacturing distribution •  Accounting © D.W. DeLong 2016

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Albert Einstein Said:

“The problems that exist in the world today cannot be solved by the level of thinking that created them.”

How Will You Develop Human Capital to Drive Business Strategy? 6 Keys to Building Tomorrow’s Workforce

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#1: Watch Your Language!

Step #1: Define “Talent Management” For Your Organization Human Capital An umbrella term for “people” and all ac3vi3es to improve the value of workforce & leadership capabili3es

“Strategic Workforce Planning” Front-‐end diagnosAc & forecasAng process to idenAfy speciﬁc capabiliAes needed

“Talent Management”

(strategy, systems, processes, pracAces)

Investments & ac3vi3es to enhance recrui3ngà developmentà performanceà reten3on of high performing employees

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Talent Management “Lifecycle” Knowledge Retention Leadership Development

Recruiting

Retention of HiPos

Hiring

Performance Management

Onboarding Employee Development © D.W. DeLong 2016

Integrating the 3Rs Retirements

Future Workforce & Leadership Capabilities Recruiting Talent

Retention/ Development of Mid-Career Employees

Is Your Organization Pursuing an Integrated Approach to Developing Tomorrow’s Workforce? © D.W. DeLong 2016

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#2: Prioritize Talent-Related Risks

Clarify Specific Capabilities at Risk & Prioritize Focus §  You’re not going to retain everyone! §  How do you set your priorities now? §  Not all high-potentials are created equal §  Some can be replaced more easily or you have more depth in role §  Who is most critical to sustaining future performance?

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Identifying Capabilities at Risk With Knowledge Silo Matrix (KSM) §  Losing wrong people creates serious quality, reputational & financial risks §  Knowledge Solo Matrix: structured capabilities assessment tool to evaluate talent risks §  Makes current skill base explicit, identifies emerging skills gaps & retention risks

Characteristics of Knowledge Silo Matrix (KSM) §  Silos: specific knowledge domains: tools, processes… §  Rows identify each employee’s level of knowledge by domain §  KSM identifies where knowledge transfer & retention initiatives most needed

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Knowledge Silo Matrix Silos are areas of expertise such as: •  Tools •  Platforms •  Products •  Customers •  Processes •  Regulations •  History •  Physical Locs. •  Job Functions 23

KSM Allows Management to Ask: §  Demographic profile of each employee who is expert/ mentor level? §  How many emps needed in each silo in 2-5 yrs & how many do we have now? §  Cost of training in silo X over time vs. in time crunch? §  Enables frank discussion of acceptable vs. unacceptable risks of turnover & succession planning §  Email me: david@DavidDeLongAssociates.com for copy of spreadsheet

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#3. Question Assumptions Underlying Your Workforce Development Strategy

Turn Workforce Development Problems Upside Down §  Need fresh perspectives on talent problems §  Artists turn canvas upside down & step back

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Turn Workforce Development Problems Upside Down §  Need fresh perspectives on talent problems §  Artists turn canvas upside down & step back

Turn Workforce Problems Upside Down By Questioning Your Assumptions §  Exercise: What assumptions are you making about recruiting & retention solutions? §  What if you turned those assumptions upside down or reversed them? §  Consider solutions & a process for creating them in new light.

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#4: Relentlessly Experiment With New Tactics For Recruiting, Developing & Retaining Talent

Technical vs. Adaptive Problems Technical – solvable by experts applying existing know-how, SOPs Adaptive – require experiments, new discoveries, new values/behaviors; can’t see end result; people expect leaders to know what to do IV

III

Adaptive

Focus Here

Type of Workforce Problems You Are Facing Technical

Inside Organization See Leadership on the Line, Heifetz/Linsky

Solution Resources

Must Draw On External Experts Or Argentum

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Some Solutions Your Competitors Are Trying §  Initiatives to address talent challenges •  12-month ED training program – shadow, 90-day rotations, promote to assistant ED •  Establish dedicated recruiter for line staff, constantly watching job boards •  Pay retention bonuses to reward tenure: 5% after 1st year, 10% per Q after 5 years.

More Solutions Your Competitors Are Trying (cont.) §  Initiatives to address talent challenges •  Collaborate on Argentum’s efforts to develop talent mgt system, combines online and FTF training & links to college programs – USC, Geo Mason, Cornell •  Partner with non-profit agencies training caregivers, e.g., JVS-Boston CNA program. •  Analyze workforce in region before investing in or taking on properties

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Solutions For Talent Challenges From Other Industries §  Conduct “stay interviews”…engage staff in more in-depth career conversations

•  Invest in mentoring skills

Solutions For Talent Challenges From Other Industries (2) §  Millennials want mobile/ leading edge technologies

•  Sodexo Health Care – COO spent 90% of mgt forums telling stories of their impact on people’s lives

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#5. Improve Your Team’s Talent Management

Improve Leadership’s Talent Management IQ §  Do your managers believe developing & retaining staff is central to their job? §  Innovators, champions, conformers, & laggards §  How would you evaluate your leadership team? §  What are you doing to improve laggards & conformers? e.g, teaching managers to have ‘honest’ conversations with staff about careers §  Are you still promoting laggards?

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#6. Confront Cultural Barriers to Development & Retention

Cultural Practices That Enhance Workforce Strategies §  Identify where the espoused employee-friendly practices & norms in your firm clash with what actually happens? E.g. Is over time expected? §  Act as if ideas from external environment are starting point – not end – of innovation. •  Trial & error is key! •  Enhance practices, don’t just absorb them.

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Cultural Practices That Enhance Workforce Strategies (2) §  Engage employees at all levels in talent solutions. E.g. Buckman Labs expects 80% of emps to engage customers §  Find ways to challenge existing assumptions & beliefs about staffing & leadership that shaped company’s earlier successes.

Cultural Practices That Enhance Workforce Strategies (3) §  Break free of dangerous beliefs & norms around workforce & leadership development §  “Being a senior living company doesn’t hold us back, but thinking like one does. Our challenge is getting leaders to stop thinking like the old days and to understand the changing workforce means staffing will be done in fundamentally different ways.”

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Investments in Leveraging Your Workforce is Defined By Future Goals Performance Goals drive WF investments

Capabilities Needed Capability Gap? Org’s Current Capabilities

Envisioned Future Performance

Future Capabilities

QUESTIONS? Risk

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10 Years From Now What Will They Be Saying About Your Company?

They once could do incredible things....

Or, they developed & retained key staff & capabilities in a changing environment...

Your Challenge: 6 Keys to Improving Your Workforce §  Develop shared understanding of “talent management” §  Identify capabilities at risk with knowledge silo matrix §  Get fresh perspective by turning problem upside down. Question your assumptions §  Continually explore creative tactics for recruiting, developing & retaining talent

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Your Challenge: Moving the Needle to Improve Your Workforce §  Improve leadership’s talent management IQ §  Enhance cultural alignment with workforce needs §  By the way, manage these organizational changes effectively!!

For More Information See: www.SmartWorkforceStrategies.com

david@DavidDeLongAssociates.com 978-‐369-‐5083 Sign up for my newsle[er or blog at: h[p://www.smartworkforcestrategies.com/Contact/SubscribeTo.aspx