{"id":2619,"date":"2018-04-20T04:46:16","date_gmt":"2018-04-20T04:46:16","guid":{"rendered":"https:\/\/dev.airportscouncil.org\/?p=2619"},"modified":"2018-09-20T04:47:42","modified_gmt":"2018-09-20T04:47:42","slug":"silver-tsunami-will-your-airport-sink-or-swim","status":"publish","type":"post","link":"https:\/\/airportscouncil.org\/2018\/04\/20\/silver-tsunami-will-your-airport-sink-or-swim\/","title":{"rendered":"Silver Tsunami: Will Your Airport Sink or Swim?"},"content":{"rendered":"

By Sandy Smith<\/em><\/p>\n

All it takes is one look around anywhere employees are gathered to see it: the unmistakable sea of silver hair. The workforce in airports \u2013 as in every industry \u2013 is graying. Some call it a \u201csilver tsunami\u201d and the wave of retirements coming could sink many an enterprise.<\/p>\n

The youngest Baby Boomers turn 54 in 2018 \u2013 meaning we\u2019re only about a third of the way through this large generation hitting the typical retirement age of 65.<\/p>\n

For some airports, that is creating something of a talent drain. However, others have been preparing for this moment and have already come up with a plan \u2013 such as WCAA, the authority which manages Detroit Metropolitan Airport (DTW) and Willow Run Airport (YIP).<\/p>\n

\u201cWe expected this and have been working toward being prepared as much as we can,\u201d said Mary Mullally, deputy director of HR Organizational Development. That has led to a multiyear<\/p>\n

refocusing on learning, leadership and, ultimately, succession plans throughout the organization.<\/p>\n

The same issue is hitting consultants, too, said Brian Conlee of Conlee Consulting. And the retirements come at a time when airport development is growing significantly, causing a \u201cshortage of mid-level candidates. When the economic conditions took a downturn, it scared a lot of the talent away from the industry.\u201d<\/p>\n

For those in all aspects of the industry, a succession plan can help combat one of the reasons people leave. \u201cIn most cases, people will leave an organization at the second tier for two reasons,\u201d said Timothy McNamara, managing partner at Odgers Berndtson, LLC, an international executive search firm. \u201cOne is economic. The other is promotional opportunity. What\u2019s my future going to be? What\u2019s going to be my level of responsibilities? What is the likelihood of me being considered when there is a next C-level role opening up?\u201d<\/p>\n

GENERATION GAP<\/h4>\n

One of the biggest hurdles in succession plans comes due to significant demographic issues. As Baby Boomers plan to retire, the next generation \u2013 Gen X \u2013 is significantly smaller and can\u2019t fill all the roles. Many of those standing in line ready to move up are Millennials \u2013 those born between 1981 and 1997.<\/p>\n

While Millennials are often knocked as challenging in the workforce \u2013 they want constant feedback and responsibility well beyond their experience, most studies show \u2013 Mario Rodriguez, executive director of the Indianapolis Airport Authority, sees it differently. \u201cThey are, bar none, the most talented and influential generation that this country has ever had,\u201d he said. \u201cIf they get really excited about something, things happen.<\/p>\n

Millennials are more likely to question the status quo and move the needle.\u201d<\/p>\n

At IAA, that has meant creating an ascension plan. \u201cIt boils down to having our Baby Boomers provide the sort of wisdom that they\u2019ve gathered over the years,\u201d Rodriguez said.<\/p>\n

That is paying off at IAA, where a leadership development program starts early, before the talent has been hired.<\/p>\n

\u201cWe\u2019re recruiting for drive and talent, not experience anymore,\u201d Rodriguez said. \u201cI can train.\u201d<\/p>\n

Seeing a career path is paramount to keeping them. IAA\u2019s leadership development program moves Millennials into different careers where \u201cthey get a chance to have their voices heard. They get to work on things they wouldn\u2019t normally get to work on.<\/p>\n

Instead of molding Millennials to what to them and modeled this organization in response.\u201d<\/p>\n

That has meant offering free and fast WiFi for travelers, something the Millennial staff insisted was necessary. It also has meant allowing rideshares and electric vehicles. IAA also has a large electric bus fleet and significant solar panel array \u2013 both designed to boost bona fides among environmentally conscious Millennials. \u201cIn a place that you wouldn\u2019t think would be very focused on the environment, we focus on sustainability because we have a large group of Millennial employees who feel very deeply about it.\u201d<\/p>\n

So if IAA is being transformed by its young workers, won\u2019t it just be prime recruiting ground? Rodriguez sees that it can work regardless. On the one hand, creating the right work environment is likely to build loyalty. On the other, \u201cif we\u2019re able to build that entity that people recruit from instead of us recruiting from other people, we\u2019ve actually done our job and created an immense value for our community at large. If we retain talent here in Indianapolis, or if we bring in organization in Indianapolis, we\u2019re still building public value.\u201d<\/p>\n

SIZING UP THE NEED<\/h4>\n

If you\u2019re not looking at your current roster to assess who is ready to move up, understand that others probably are.<\/p>\n

\u201cI have quite a few clients who are more than willing to look at talent ready for the next move, where maybe at their current firm, there\u2019s a logjam at the positions and not much room for upward mobility,\u201d Conlee said.<\/p>\n

Of course, as a public entity, airports don\u2019t usually have the luxury of creating positions that allow people to step up while waiting for that logjam to break. And they likely can\u2019t create a position for a strong outside candidate.<\/p>\n

\u201cBarring a major reorg, airports have a chartered structure to live with,\u201d said Grice Whiteley, principal at Grice Group, LLC. \u201cDue to budgets and risk aversion they don\u2019t just spontaneously hire people permanently \u2013 no matter how great of a talent they may be \u2013 without some political and professional consequences for everyone. Having good recruiting tools and good networking certainly gives airports a competitive edge, which they all desperately need.\u201d<\/p>\n

Whiteley\u2019s clients are most often in the private sector where \u201cthey can be a little more flexible and adaptable and scoop people up and find a position for them.\u201d<\/p>\n

No succession plan is perfect and, yes, there will be times when training is invested in someone who takes another job.<\/p>\n

\u201cPeople tend to move out to move up,\u201d Whiteley said. \u201cThe machinery chugs along and the person you were grooming is leaving to go to another airport, even if you hired them specifically to groom them. It\u2019s an unavoidable process. There are some airports that are more agile to adapt and hang on to people.\u201d<\/p>\n

Even those who get succession planning right still have to endure those times when the next best leader chooses to leave. \u201cCareer moving is going to happen because of life,\u201d Whiteley said. \u201cThey have kids or get married or need to move closer to parents. It\u2019s not anything you can predict. I don\u2019t know if there\u2019s anybody who has a perfect model.\u201d<\/p>\n

But there are issues that the industry must address \u2013 and one is a lack of ability to move to the CEO role internally, McNamara said. \u201cA huge percentage of CEO roles are filled by external candidates, by searches that are required to be conducted because the CEO leaves. Very few are based on internal promotions. You have to ask yourself why. For the most part, CEO and other C-level changes are event driven.<\/p>\n

It\u2019s not based on a strategy.\u201d<\/p>\n

A STRATEGIC DECISION<\/h4>\n

Strategy is absolutely the place to start with succession planning, says Mario Diaz, Aviation Director for the Houston Airport System. \u201cIt\u2019s not about moving people, but setting a strategy.<\/p>\n

What does the airport need to do to be successful? Once you have your strategy down, then you start looking at people who are able to deliver on that strategy.\u201d<\/p>\n

He believes that every manager should identify one or two individuals who have the potential to replace that manager. \u201cAnd yes, it is \u2018replace you.\u2019<\/p>\n

Someone needs to replace me. I know that I could walk out of here tomorrow and could say, \u2018Any one of these two or three people could do the job.\u2019 You have to expect that at every level of the organization.\u201d<\/p>\n

The names submitted for consideration should go to an executive team that includes a human resources representative and other chief officers. \u201cYou bring those managers in and review the individuals that they\u2019ve recommended. You look at resumes and performance, the things they have accomplished and why that manager thinks they are a good candidate.\u201d<\/p>\n

If the successors are chosen, then it is up to the executive team to make sure that \u201cthey get the development and attention they need to move forward and be successful,\u201d Diaz said. \u201cOnce you identify those people, you make good on the promise that these would be the individuals to move up. It\u2019s easy in the formulation. It\u2019s in the execution where it gets difficult.\u201d<\/p>\n

In Houston, Diaz oversees two international airports\u2014George Bush Intercontinental and William P. Hobby\u2014 as well as the much smaller Ellington.<\/p>\n

\u201cI\u2019ve worked in airports of all sizes and this strategy can be used at any size organization,\u201d he said. \u201cIf you\u2019re in a smaller airport, the strategy is probably less complicated.\u201d<\/p>\n

And this is where it comes back to knowing the long-range plan.<\/p>\n

People identified for leadership\u2014 particularly those groomed for senior level positions\u2014should be trained in all aspects of the operation.<\/p>\n

\u201cEveryone understands operations, the international rules and regulations, and border protection. But how many people really know how the business makes money? How to go out and call on an airline to land a new route? What capital development is all about? If<\/p>\n

there\u2019s an opportunity to move up, you have to make sure they\u2019re ready.\u201d<\/p>\n

He believes the role of CEO includes training those next leaders. \u201cYou can\u2019t just call in a consultant and say, \u2018Put in a succession plan.\u2019 You have to think it through.\u201d<\/p>\n

Leaders also have to \u201cmake tough calls about individuals,\u201d Diaz said.<\/p>\n

\u201cSometimes one of the hardest things is to recognize that you\u2019re looking at the resume of an individual who doesn\u2019t have a lot of opportunity to move up.<\/p>\n

That\u2019s going to be a tough conversation to say, \u2018You don\u2019t seem to have the skillsets. You may want to go back to school.\u2019 Even in those circumstances, you have to realize that everyone has value. Help them with what they want to accomplish to the extent that you can.\u201d<\/p>\n

TRAINING: AN IMPORTANT STEP<\/h4>\n

Succession planning is about far more than simply putting a name next to a position. It\u2019s about making sure the person identified as a likely successor is ready when the role opens up. And it<\/p>\n

means being honest about their hard and soft skills.<\/p>\n

\u201cYou have to assess the management assets that you have,\u201d McNamara said.<\/p>\n

\u201cYou\u2019ll have to make the tough decisions about people who fit your strategy and those that don\u2019t. Then you have to also provide the resources to the CEO and management team to provide training and coaching to those individuals that you want to bring along. At the end of the day, these investments are still going to cost a lot of money. If you don\u2019t invest in assessment and training and leadership development, ultimately, you\u2019ll have to pay for that anyhow through additional hiring and the cost associated with organizational turmoil and instability.\u201d<\/p>\n

Investing in a new educational platform isn\u2019t always the obvious first step in succession planning. But Mullally said the WCAA saw it as necessary, but just the first step. Collective bargaining agreements had to incorporate a pay-for-performance model.<\/p>\n

\u201cThe notion of doing development training with the benefit of a bonus has been really successful,\u201d Mullally said.<\/p>\n

\u201cWe\u2019ve seen an increase in engagement in our program every year.\u201d<\/p>\n

With the performance piece of the puzzle in place, it was time to build in the succession plan. And at WCAA, it\u2019s a two-way street. The tool allows employees to post their resumes and to express interest in jobs that are opening or future jobs that may come along. \u201cThey can see where they match and where they don\u2019t match,\u201d Mullally said. \u201cThey can fill the gap with their development plan and pursue their bonus.\u201d<\/p>\n

Managers evaluated employees on succession metrics, including career preferences and what development is needed in the next one to two or three to five years. \u201cThe manager is able to rate each employee on their interest in advancement, their interest and capabilities and their succession readiness timeline,\u201d Mullally said.<\/p>\n

\u201cWe also have them identify the team\u2019s impact of loss and probability of loss.\u201d That latter aspect touches on identifying those who are planning to retire. \u201cWe\u2019re able to identify critical roles throughout the organization, not just for our leadership team. We wanted this to be enterprise-wide, to really prepare for succession at all levels.\u201d<\/p>\n

And it is paying off. In 2014, when the program launched, 28.6 percent of employees were identified as ready for the next level in a year or two, while 71.4 percent expressed interest. By 2017, 48.9 percent were deemed ready for promotion in the next one to two years, while 82 percent expressed interest.<\/p>\n

\u201cThis was not intended to pre-select someone for another job,\u201d Mullally said. \u201cIt was to focus on where we want to develop employees based on their interest and their current capabilities.<\/p>\n

This data is helping to close the gap.\u201d<\/p>\n

It also helps that managers are more proactively expressing interest in their careers, she said. \u201cIt was unheard of before, for a manager to say, \u2018What do you want to do next?\u2019 Now, it opens the conversation. The fact that we are backing this up with the pay-for-performance program provides reinforcement that this is important to the organization, that we want to see them develop and be interested in their own careers.\u201d<\/p>\n

While the program was intended to be used throughout the organization, early on it revealed a high probability of loss in senior leadership. That meant a need to develop leaders quickly. A Leadership Academy was launched. Those who participate in the academy network throughout the organization and produce a Capstone team project.<\/p>\n

It has allowed the authority to test the talents in tackling issues such as what to do with surplus food. The Leadership Academy\u2019s proposal was so innovative, it earned a state grant.<\/p>\n

A related program, a Supervisor Institute, also was launched. It works similarly, but is more streamlined. The robust training program is key to succession planning, Mullally believes.<\/p>\n

\u201cThat was our vision from the beginning. When we started to implement the learning platform, we knew it had to support succession planning. We had that as our end game, but knew we couldn\u2019t do it without the foundation of learning and performance.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

By Sandy Smith All it takes is one look around anywhere employees are gathered to see it: the unmistakable sea of silver hair. The workforce in airports \u2013 as in […]<\/p>\n","protected":false},"author":9,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[24,48,28,29,51,30,32,50],"tags":[],"class_list":["post-2619","post","type-post","status-publish","format-standard","hentry","category-business-diversity","category-committee-news","category-finance","category-human-resources","category-large-airports","category-legal","category-operations","category-small-airports"],"acf":[],"yoast_head":"\nSilver Tsunami: Will Your Airport Sink or Swim? - Airports Council International - North America<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/airportscouncil.org\/2018\/04\/20\/silver-tsunami-will-your-airport-sink-or-swim\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Silver Tsunami: Will Your Airport Sink or Swim? - Airports Council International - North America\" \/>\n<meta property=\"og:description\" content=\"By Sandy Smith All it takes is one look around anywhere employees are gathered to see it: the unmistakable sea of silver hair. 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