Longevity’s Impact on Workforce Education
Is an organization responsible for educating its workforce? CHCI recently conducted a roundtable conversation to answer this question, discussing the “Three Stages of Work” model and current job requirements.
First, let’s review the “Three Stages of Work” model:
- Education
- Work
- Retirement
This model states that in general, humans get an education until their 20’s, work for approximately 40 years, and then retire at age 65. This made sense when Bismarck introduced the concept of the old age pension, because half of the European population died by the age of 45. Yet, due to advances in healthcare, our lifespan is much longer than 45 years now; if you want to extrapolate numbers, state pension ages in high-income countries should now be 103.
With increasing costs and pensions becoming unsustainable, many people need to continue working to support their lifestyle. A third of seniors will work well past the retirement age of 65 or won’t retire at all. Therefore, people will likely work into their 70’s. If that’s the case, then will an education received at 20 years old serve for 50 years? Likely not, especially with the rapid pace of technology advances.
Therefore, we will move from the three-stage model to a five-stage model of work:
- Education
- Work
- Education
- Work
- Retire
To support this five-stage model of life, federal and state governments are incentivizing education for seniors. States such as Alabama, Arkansas, Connecticut, Kentucky, Massachusetts, Maryland, Rhode Island, Pennsylvania, South Caroline, and Wyoming are offering free college tuition for those over 60 years old. If US states are preparing for this shift in workforce education, what is the responsibility of organizations?
In addition to the five-stage work model, there is another issue that organizations have to consider. Less than two-thirds of U.S. college students graduate within six years. Since the beginning of the Covid pandemic, job postings for entry-level positions that require a bachelor’s degree have fallen by 45% — pointing to employers who want candidates with more skills and experience. So current job descriptions need to be reconsidered. Does every job candidate need a two or four year college degree? Or is it time to redesign job descriptions in a way that reflects the five-stage work model?
How organizations are changing the mold
Many technical roles required by organizations demand specialized technical and soft skills, not four-year degrees. They fall into the category of “new collar” jobs.
To keep up with these changes, organizations are looking at new ways to attract top talent by offering technology apprenticeships as a way for entry level talent to jumpstart their careers post high school. For example, HCL Technologies is offering a unique program that mirrors best practices in technology apprenticeships, including the benefit of debt-free education. It provides full pay and benefits, with careers in software development and testing, digital and cloud services, infrastructure delivery, and engineering.
An increasing number of young people simply don’t have the financial means to go to college, with the divide growing even more during COVID. If they do have a college degree, they often don’t have the means to re-educate themselves in the middle of their career. An apprenticeship program offers equitable access and deepens corporate relationships within a community. Apprenticeships are opening doors to people who have been previously underrepresented in hiring; they represent an area of untapped growth for businesses that bring them onboard.
What role is your organization playing to support the five-stage model of work? What apprenticeship challenges and opportunities exist in your organization?
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