Sunday, June 17, 2007

Will the Baby-Boom Retirement Era Bring on a Reritualization of Retirement?

Why should a senior of retirement age want to stay engaged with their existing organization?

Let us consider that question divorced from the financial necessity that may give the individual no choice but to stay engaged. Furthermore, let's consider the question simply from the employee's point of view and not the corporation's. The answer is quite simple. It is because adults continue to develop throughout their lifetime.

Erikson’s & Adult Development

It was Erikson who was one of the first theorists to examine adult development (Hoare, 2002). He is primarily noted for life stage development theory that envisioned eight stages of human development ranging from infancy in the first stage to maturity in the eighth stage.

Prior to Erikson’s focus on the various stages of adult life, theorists whose writing was directed at human development ended their treatment of development as the individual entered adulthood (Hoare, 2002). Erikson’s first work in which he noted the various partitions of adult life was published in 1950 entitled Childhood and Society. Just nine years after that publication, psychological reference lists began to distinguish the various stages of adult life. By the end of the twentieth-century there were so many distinctions of adult stages of development it was impossible to categorize them (Hoare, 2002).

While Erikson may have defined the life cycle in terms of a sequence of stages with reference to age especially in the early stages of development, he did not specify age as the defining point at which one era succeeds a previous one. The defining characteristic of each stage, for Erikson, was the fundamental crises that arise at a given point in one’s development. Each stage deals with its own fundamental crisis that must be resolved before the individual’s development proceeds to the next stage. The chart below depicts Erikson’s eight stages of human development (Erikson, 1980, Fig. III, p. 129).

Stage I Infancy: Trust vs. Mistrust
Stage II Early: Childhood Autonomy vs. Shame & Doubt
Stage III Play: Age Initiative vs. Guilt
Stage IV School Age: Industry vs. Inferiority
Stage V Adolescence: Identity vs. Identity Diffusion
Stage VI Young Adult: Intimacy vs. Isolation
Stage VII Adulthood: Generativity vs. Self-Absorption
Stage VIII Mature Adulthood: Wisdom vs. Disgust/Despair

Stage VII & VIII

The basic conflict for the middle adult stage (Stage VII) age 45 to 65 is generativity/stagnation. Erikson (1959, 1980) identifies generativity as one’s establishment and guidance of the following generation. It follows that stagnation is the reverse of establishing and guiding the next generation. The conflict between generativity and stagnation must be resolved before the adult can move to the final stage, maturity (Stage VIII) age 65 to death, which has as its fundamental conflict integrity/despair, disgust.

Once an individual reaches maturity s/he accepts the responsibility of adulthood and therefore possesses integrity/wisdom in that the individual is able to stand up for their lifestyle against all questions and threats. The conflict is between integrity and a feeling that time is running out. In later writing Erikson (1982) identifies the conflict as between wisdom and despair. At that time he wrote about the changing meaning of old age. He held that individuals in Stage VII interpret old age differently as they approach Stage VIII. But he also included a social interpretation of old age that was changing as individuals are living longer lives, and able to anticipate the ripeness of old age. Consider Erikson’s (1982) thoughts that have some significance, “No doubt, the role of old age needs to be reobserved, rethought… Thus a historical change like the lengthening of the average life span calls for viable reritualizations …” (p. 62).

The Reritualization of Retirement

Retirement, one might say, is in the process of being reritualized. We are living longer and with much more vitality than our parents did at the same age. Moreover the workforce may very well be in need of the generativity that adults approaching stage VIII might bring to the table. So why should we want to retire? Is it time for reritualization of the manner in which organizations deal with retirement aged senior employees? The answer, I argue, should be yes. But like everything else in our society our eyes may be closed until there is no choice. The baby-boom retirement scenario may just be the vehicle to usher in that reritualization. When employers have trouble filling positions with younger people, perhaps they will have no choice but to hang on to their senior employees. Then employer and employee will both benefit.

References
Erikson, E. H. (1963/1950). Childhood and society (2nd. ed.). New York: W. W. Norton & Company, Inc.
Erikson, E. H. (1959). Identity and the life cycle. New York: International Universities Press, Inc.
Erikson, E. H. (1980). Identity and the life cycle: A reissue. New York: W. W. Norton & Company.
Erikson, E. H. (1982). The life cycle completed (1st. ed.). New York: W. W. Norton & Company.
Hoare, C. H. (2002). Erikson on development in adulthood: New insights from the unpublished papers. New York: Oxford University Press.

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Thursday, June 14, 2007

Retirement: not as easy as I thought it would be

According to Robert C. Atchely, a noted sociologist/gerontologist, “Retirement is a condition in which an individual is forced or allowed to be and is employed less than full-time (whatever that may mean in his particular job) and in which his income is derived at least in part from a retirement pension earned through prior years of service as a job holder” {p. 1}. [1]

According to that definition I am retired; having left a previous employer of 37 years two years ago to begin my own consulting firm. I left before the typical retirement age due to a relatively blessed pension that could afford me the time to either succeed or fail at my intended endeavors, which in addition to beginning my own business, was to finish a doctoral degree that began a few years before retirement.

To tell the truth, I was thrilled to begin something that I thought about for a long time. And now, two years later I can tell you that I would not change a thing, even if my current endeavors fail. The interesting thing is that something did change, but I did not consciously realize it until recently.

For the last two years, as I attempted to build my consulting business, I worked in an office by myself. It was torture for me, as I am a person who not only loves, but also needs to be around others; engaged with them in a common endeavor. For the first two years I could not get excited about what I was doing. There was no motivation at all. It was dumbfounding for me until I realized that I had gone through a major life transformation. It is interesting that it did not happen on a conscious level. Consciously, although feeling guilty that I was not motivated, I was pretty happy being in charge of my life. But something was missing. I was not the same person, although I really did not know why.

I have since learned that my experience is not unique. The founder of the Career Coach Institute, and master certified career coach; Marcia Bench predicted my experience in her 2004 Retire Your Way training manual. In quoting from R. P. Johnson's The New Retirement: Discovering Your Dream (2001), she wrote that “Most (people) will retire for the first time, unsuccessfully, at age 57. Why ‘unsuccessfully’? Because…almost none of them invest time and energy planning the non financial aspects of retiring” {p. 9}. [2]

Would an adequate planning of the non-financial aspects of my retirement have aided my situation? We will never know, but it certainly could not have hurt. What did help was what some call a disorienting dilemma (more on that later), and the fact that my youngest daughter has joined my firm.

The lesson for those of you who plan to retire soon, think about your non-financial wellbeing before your life transforms from the collective context of the working world to the non-collective context of retirement. You have a lot of life left, live it well, especially in retirement.

Here’s where a retirement coach can really be an asset.

If you are interested in finding a retirement coach, please contact us.

Whether your experiences of retirement are similar, or completely different, please share them with us.


[1] Atchley, R. C. (1976). The sociology of retirement. Cambridge, MA: Schenkman Publishing Company Inc.

[2] Johnson, R. P. (2001). The new retirement: Discovering your dream. St. Louis, MO: World Press, cited in Bench, M. (2004). Retire your way. Lake Havasu City, AZ: High Flight Press.

Glenn J. Forte, President
Collective Knowledge Advisors, LLC
517 E. Lancaster Avenue, Suite 402
Downingtown, PA 19335
phone: 610.269.7851
mobile: 484.880.8862
fax: 610.269.7852
email: gjforte@ckallc.com
http://www.collectiveknowledgeadvisors.com
http://www.ckallc.com

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Saturday, June 9, 2007

Baby-boomer retirement: Demographic crisis or not

Introduction
This blog will be devoted to all four areas of our consulting practice, human resources, coaching, executive search, and plastics packaging manufacturing. You can obtain more detail regarding those functions by visiting our website at www.collectiveknowledgeadvisors.com or more simply, www.ckallc.com.

The topics will be diverse in substance. Many of our upcoming blogs will focus on what some are calling the demographic crisis associated with the baby-boomer retirement wave, which has already begun. We will be discussing such topics as how and why employers should recruit more senior employees, what binds employees to their organization, and what employers can do to obtain their employees' commitment. We will also discuss the fundamentals of coaching and career development, and to a lesser extent plastic manufacturing as it relates to pharmaceutical packaging. Guest authors will also be invited to post essays. {Note: in order to give credit to authors who have been referenced, footnotes will be added in the following manner [1]. All cited references will be listed at the end of the blog}.

Demographic Facts
The current U.S. baby-boomer population, those born between the years 1946 and 1964, is estimated to be between 76 and 78 million[1]. In the year 2000 the baby-boomer population represented 55 % of people between the ages of 25 and 54 in the U.S. At that time the oldest of the baby-boomers was 54 years of age. The 2000 U.S. census reported “a 28-percent increase in the number (of people) aged 35 to 64. As the large generation of baby boomers began passing their 45th. birthday, the population aged 45 to 54 swelled 49 percent during the decade (1990 – 1999), (p. 3)[2].” While the civilian labor force is projected to increase 10% between 2004 and 2014 to approximately 160 million workers, workers in the 55 and over age group is projected to grow by five times the overall growth[3].

According to a 2004 AARP/SHRM survey, approximately 80 percent of the baby-boomer population expects to work after quitting their current full time job at age 66. That statistic is essentially unchanged from a prior survey completed in 1998. According to the 2004 survey, half of the boomer population is over 47 years of age, but a full two-thirds of those surveyed feel younger. That is a 13% swing in the positive direction from the 1998 survey[4].

Will the Role of Older Workers be Reinvented?
The question I pose to our readers is why do the baby-boomers feel the need to quit their current full time job? The next question is will employers let them go without a fight, since according to some researchers virtually all sectors of the economy are on the verge of a serious labor shortage that presents an opportunity for organizations to “reinvent the role of older workers” (p. 243)[5]. They warned that the old age dependency ratio, the ratio of individuals 65 years of age and older to individuals of conventional working age, 18 to 64 years of age would double from 20:100 in 1985 to 41:100 in 2035. They wrote, “just over the horizon looms a demographic time bomb for the nation’s employers and no one has figured out yet how to defuse it"(p. 243) [5]. That notwithstanding, has anyone even thought about diffusing it?

The U.S. economy is not immune to business decision makers ignoring reality until they are literally at death's door as the U.S. automakers were when they did not respond to the threat of higher quality, and more efficient automobiles brought to this country from abroad. Will a similar situation develop when talented and experienced senior employees are permitted to walk away from their organization and into retirement or to another employer whose business, culture and history are unknown to them? In what is certain to be a tight labor market, why would any business executive run the risk of losing decades of talent by not responding to the possible demographic problem posed by the potential retirement of their baby-boomer employees? A subject we will discuss in our next blog.

Glenn J. Forte, President
Collective Knowledge Advisors, LLC
517 E. Lancaster Avenue, Suite 402
Downingtown, PA 19335
phone: 610.269.7851
mobile: 484.880.8862
fax: 610.269.7852
email: gjforte@ckallc.com
http://www.collectiveknowledgeadvisors.com
http://www.ckallc.com

Footnotes
[1] Cramton, S., Hodge, J., & Mishra, J. (1996). Transition - ready or not: The aging of America's work force. Public Personnel Management, 25(2), 243-253.
Quigley, M., & Kaufman, L. E. (2005). Hire calling. Retrieved August 31, 2005, from www.aarp.com.
Shactman, D. I., & Altman, S. H. (2002). Overview: Issues and options for an aging population. In S. H. Altman & D. L. Shactman (Eds.), Policies for an aging society. Baltimore: The Johns Hopkins University Press.

[2] Census Bureau, U. S. (2000, March 2005). All across the USA: Population distribution and composition 2000. Retrieved Dec. 31, 2005, from
www.census.gov/population/pop-profile/2000/profile2000.pdf.

[3] Department of Labor, U. S. (2005). BLS release: 2004-14 employment projections. Retrieved Dec. 31, 2005, from http://www.bls.gov/bls/newsrels.htm
Roper-ASW. (2004). Baby boomers envision retirement ii: Survey of baby boomers' expectations for retirement. Washington, DC: AARP Knowledge Management.
Staff. (1998). Older workers survey (Survey). Alexandria, VA: Society for Human Resource Management.

[4] Quigley, M., & Kaufman, L. E. (2005). Hire calling. Retrieved August 31, 2005, from www.aarp.com.

[5] Cramton, S., Hodge, J., & Mishra, J. (1996). Transition - ready or not: The aging of America's work force. Public Personnel Management, 25(2), 243-253.
p. 243.

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Friday, June 8, 2007

Welcome to Collective Knowledge Advisors Blog

We offer a diverse advisory service that includes:

- Virtual Human Resources (VHR) - a service designed for small companies that do not have the ability to support their own Human Resource department or personnel

- Career Coaching, Executive Coaching & Retirement Coaching services for individuals & corporations

- Executive Search Consulting

- Plastics Manufacturing Consulting

Stay tuned for information, articles and tips in these areas.

Glenn