Managing the Demographic Shift: Retention and Recruitment of the Public Servant Melony Forster Project Submitted in Partial Fulfillment of The Requirements for the Degree of Master of Business Administration VNIVERSITY of NORTHERN BRITISH COLUMBIA LffiRARy The University ofNorthem British Columbia May 2009 ©Melony Forster, 2009 Prince George, B.c. 2 TABLE OF CONTENTS Table of Contents 2 Acknowledgement 3 Abstract 4 Introduction 5 Literature Review Determinants of Job Satisfaction Connecting Job Satisfaction and Turnover Motivating & Hygiene Factors as they relate to Job Satisfaction 9 9 12 12 Motivators and Job Satisfaction Achievement Recognition of Achievement Work Itself Responsibility Advancement or Promotion Growth 13 13 13 14 15 16 17 Hygiene: Job Dissatisfaction 17 Organization Policies and Administration Supervision Interpersonal Relations Working Conditions Salary Security 17 18 19 19 20 21 Methodology 22 Results 30 Discussion 38 Conclusion 50 References 52 3 Acknowledgment I would like to thank all of my family, friends and instructors for their support during this chapter of my life. Most importantly I would like to dedicate this to my grandma Leona Hiebert for everything she has done for me. You will never know unless you try. 4 Abstract The Public Service will be experiencing a shortage of workers with the demographic shift as baby boomers leave the workforce over the over the next 5-l 0 years. This study has been conducted to investigate the determinants of job satisfaction and establish the importance of job satisfaction in determining retention and recruitment of Public Servants. Hertzberg's two factor theory will be used. According to Hertzberg's two factor theory, long term motivation determinants of job satisfaction include achievement, recognition of achievement, the work itself, responsibility, advancement or promotion and growth. Short-term factors or hygiene factors include organization policies and administration, supervision, interpersonal relations, working conditions, salary, status and security. The purpose of the study is to review whether the Federal Government is meeting the satisfaction needs of its current employees and new hires in order to retain and recruit them. The results of the data confirm that on average the Public Servant employees are satisfied but there is significant room for improvement. Key Words Retention Recruitment Federal Public Servants Job Satisfaction Job Dissatisfaction 5 Introduction The cradle to grave concept of employment has generally disappeared in the modem workforce; there is an evolving social contract between employers and employees that will test companies' human resources strategies against each other. The presence of a free agent mindset available to the workforce has raised an interesting question as to why people would choose to work in a specific environment and for how long. The value of the question for the Canadian government has never been more important than now with the large demographic shift that will change the historical trend of labor availability, labor composition and the tools that managers will need to utilize to ensure retention and recruitment in the future "War for Talent". According to Statistics Canada, in 2006 25.5 %of senior government managers and officials were 55 years or older. There is a need for the Canadian Government to recruit new talent and retain the talent it has within the organization in order for it to be in a position to fill the vacancies caused by the retirement of current staff (Naczk 2007). The demographic shift will take place when the largest age demographic, individuals born between 1946 and 1964, begin to retire and leave the workforce. This age demographic is the largest portion of employees in the workforce today and there is not the same amount of new employees available to replace them when they retire. Please see Graph 1. This shifting of available employees, for the purpose of this paper will be referred to as the demographic shift and will have be a negative effect on retention and recruitment of employees as employees will have more choices in his or her career paths as more jobs will be available to them. 6 Graph 1 Source: Luigi Zanasi, Demographics of Canada October 2005 0 0 1. U1 ~ ..... ?..... l> ..... \}1 ..... \}1 0 U1 1. ? ~ 0> U1 0,