Future of career and careers of the future

Yehuda Baruch

Norwich Business SchoolUniversity of East AngliaUK

A Major shift

From careers that offer secured employment To careers that provide ‘opportunities for

development’

From hierarchy based system To boundaryless career

From either organizational or individual To balancing individual and organizational needs

The broader environment – professional, organizational and cultural - is the reference for career aspirations.

Rousseau; Herriot & Pemberton; +: New psychological contracts; new deals

The old deal was: employee offer: loyalty,

conformity, commitment

employer offer security of employment, career prospects, training and development and care in trouble.

The new deal is: employee offer long

hours, added responsibility, broader skills, and tolerance of change and ambiguity

employer offer high pay, reward for performance, and above all, having a job.

HRM transition

The old system HRM as administration Causal selection Apprenticeship system Deal with unions Individual move with

the stream

The new system Professional HRM Competence based

selection Train, support Deal with individuals Push people or push

them out

Internal career

The self-perception of a person about his or her own career: its development, advancement, and fulfilment

This self-perception involves setting career goals and evaluating own achievement in reaching them

It is subjective, and so is the definition of career success.

External career

The way other people and organizations perceive person’s career – development, advancement, and fulfilment of goals

It is objective, but still depends on the specific observer view-point

Success in external career would be measured mainly in terms of hierarchy level and pace of progress, social status, professional qualifications, and monetary benefits.

The CAST model (Baruch, 2004)

Individual Aspirations

Individual Attitudes

Individual Actions

Organizational Philosophy

Organizational Policies

Organizational PracticesBehaviours

Norms

Values

Level Fit

The Individual three As

Aspirations What you want to fulfill and wish to achieve in

life and in particular in working life Reflected in career goals and aims Needed to be adjusted according to

competence and ability (realistic) Develop under certain cultural, educational,

family influence, and social learning context

The Individual three As

Attitudes Towards work Towards organization Towards career

The Individual three As

Actions Specific behaviours and activities Aimed at reaching career goals and aims Some are short-term, others are long-term

related Subject to proactivity on the individual side May be prompted by the organization

The organizational three P’s

Philosophy and strategy Guides organizations in their development,

growth, and maintenance Provides a direction In career terms

what kind of people we need how do we treat our people

The organizational three P’s

Policies Guidelines to translate the philosophy into

operation Instruct actions In career terms – direct HRM activities

The organizational three P’s

Practice What the organization actually do When managing its resources In career terms

Career practices, techniques and activities performed by the HRM and other managers

Aimed at retaining the right people

Theoretical developments

Traditional vs. current careers Boundaryless Intelligent Protean Kaleidoscope Post-corporate

Theoretical developments Boundaryless

Demolition of old structure Multidirectional paths and system Holistic system Global system

Intelligent Knowing Why – values, attitudes, internal needs, identity Knowing How – competencies: skills, expertise, capabilities; Tacit & explicit

knowledge Knowing Whom – networking, connections, relationships Knowing What – opportunities, threats Knowing Where – entering, training, advancing Knowing When – timing of choices and activities

Protean The individual takes control Decides what is success

Theoretical developments

Kaleidoscope Kaleidoscope Careerists adjusting three life

parameters: Authenticity: a striving to be genuine, to be one’s true

self, to create a healthy alignment between one’s values and outward behaviors

Balance: finding congruence between work and family

Challenge: the need to continuously learn and find stimulating, exciting work.

The Post-corporate CareerPeiperl & Baruch, 1997, Organizational Dynamics

From individual and relationship perspective

To organizational and system perspective

Theoretical developments

Career success Resilience Proactivity Social networking

Labour markets New opportunities More freedom More risk

From Military to Civilian Career

A clear case of change From strong bureaucracy to apparently

dynamic labour market

Two studies

Study 1: Traditional and protean careers of former U.S. Navy admirals Baruch & Quick

Study 2: Second Career of Army retirees Vigoda, Baruch, & Grimland

Career Proactivity

Hypothesis 1a: Proactivity in terms of career search and involvement will be negatively associated with aggregate unemployment periods

Hypothesis 1b: Proactivity in terms of career search and involvement will be positively associated with a shorter time taken to find the first job following early retirement

The Role of the Organization

Hypothesis 2a: Supportive organizational career systems will be positively associated with short time taken to find a job

Hypothesis 2b: Perceived supportive organizational career systems will be positively associated with positive feelings during the transition process

Hypothesis 2c: Perceived supportive organizational career systems will be positively associated with satisfaction with the transition process

Support from friends and networking

Hypothesis 3a: Support from colleagues and networking will be positively associated with higher level of positive feelings during the transition process

Hypothesis 3b: Support from colleagues and networking will be positively associated with satisfaction with the transition process

Support from Family

Hypothesis 4a: Support from family will be positively associated with higher level of positive feelings during the transition process

Hypothesis 4b: Support from family will be positively associated with satisfaction with the transition process

The Transition Process and Career Success

Hypothesis 5a: The feelings during the transition process will be positively associated with both internal and external of career success

Hypothesis 5b: The satisfaction with the transition process will be positively associated with both internal and external of career success

Traditional vs. Protean careers

Hypothesis 6a: The traditional career approach will be positively associated with external career success

Hypothesis 6b: Protean approach to career will be positively associated with internal career success

Labour market

Hypothesis 7: The perception of labor market will be positively associated with internal career success.

The Research Model

Time taken to find the first job

Unemployment periods

Supportive organizational career systems

Career Proactivity

Positive feelings during the process

Satisfaction with the transition process

Support from friends

1a

1b

2b

2a

3a

3b

2c

Traditional Career approach

External career success

Labour Market Perception

5a

5b

6a

6b

7

Support from family

4a4b

Internal career success

Protean Career approach

The Admirals Study

An unusual opportunity to study the career transitions of a very rare sample of senior leaders and executives who moved from a stable, highly structured and bureaucratic system, to the dynamic labour market

Method

Sample of half USA former Navy Admirals Response rate – 47%: 334 out of 712

(high for an executive level population - see Baruch, 1999; Baruch & Holtom, 2008)

Constructs measurement

All of the measures demonstrated good reliability with Cronbach’s Alphas between .70 and .90

To test for common method bias we computed the Harman’s one-factor test (Podsakoff & Organ, 1986). No single factor accounted for the majority of the covariance, suggesting that the common method variance is not solely responsible for our findings.

Results of Regression Analysis for Feeling

During the Process of Retirement

Dependent Variable: Feeling During the Process of Retirement

Constant 2.96 Support from friends 0.26 (.06) Support from family 0.32 (.07) Organizational career treatment 0.25 (.07) Total R square .28 Adjusted R square .27 F (3, 297) = 38.06***

Regression Analysis for Career Satisfaction

Dependent Variable Life Satisfaction

Constant .736 Protean career .63 (.09) Labor market perception .19 (.05) Salary .06 (.03) Total R square .28 Adjusted R square .27 F (3, 242) 27.80*** *** P<.001

Regression Analysis for Life Satisfaction

Dependent Variable Life Satisfaction

Constant 3.64 Protean career .44 (.07) Labor market perception .08 (.03) Hours of work -.05 (.00) Total R square .21 Adjusted R square .20 F (3, 243) 21.78*** *** P<.001

Results of Regression Analysis for Salary

Constant 2.30 Age -.08 (.02) Hours of work .03 (.01) Traditional career .59 (.14) Labor market perception .43 (.12) Total R square .22 Adjusted R square .21 F (4, 231) 22.67*** P<.001

Regression Analysis for Hierarchy

Constant 0.36 Hours of work .06 (.02) Labor market perception .08 (.03) Traditional career .07 (.03) Age .01 (.00) Total R square .16 Adjusted R square .14 F (4, 60) 7.55*** *** P<.001

Structural Equation Modelling

a moderate fit for the part of the model concerned with career satisfaction.

Goodness-of-fit Index (GFI): 0.939 Comparative fit index (CFI): 0.739 RMSEA: .0581 Relative fit index (RFI): 0.560 These findings provide further support for

our hypotheses.

Real findings

They managed, and managed well Most adjusted well Most gain great success in both internal

and external career In the ‘War for Talent’ – they can be a

significant source of future business leaders

Study 2: Second career of military retirees

On wider range of ranks In Israel

Model and hypotheses

Research Model

Preparations for Retirement

Social Capital

Perception ofOrganizational

Politics

Work – FamilyConflict

Control variables1.Age2.Education3.Rank at retirement4.Service time before the retirement

Organizational Commitment

Success in SecondCareer

1.Career Satisfaction2.Life Satisfaction3.Turnover intentions4. Number of jobs5.Tenure in new job

Hypotheses

H1a: Preparations for retirement are positively associated with success in a second career (new career job satisfaction, life satisfaction and tenure in second career), and are negatively related with turnover intentions and with number of jobs experienced after retirement

H1b: Preparations for retirement are positively associated with organizational commitment during the second career

Hypotheses (Cont.)

H2a: Social capital is positively associated with success in second career, and negatively associated with turnover intentions and number of jobs after retirement

H2b: Social capital is positively associated with

organizational commitment during the second career

Hypotheses (Cont.)

H3a: Perceptions of organizational politics have a negative relationship with success in second career; and positively related to turnover intentions and the number of jobs after retirement

H3b: Perceptions of organizational politics have a negative relationship with OC during the second career

Hypotheses (Cont.)

H4a: Work-family conflict has a negative relationship with success in second career and positively related to turnover intentions and number of jobs after retirement

H4b: Work-family conflict has a negative relationship with OC during the second career

H5: Each of the independent variables will have a significant, unique contribution to the explanation of success in second career

Method

The research population included 202 high ranking men and women who retired either from the army or from a civilian body in the Israeli defense set during the last ten years, following a long-term service

Response rate was 33.9%: 202 out of 596, (within the norm for executive population-see Baruch, 1999)

Findings (Career Sat)

Career satisfaction

Variables Step 1 Step 2 Step 3

β(t) β(t) β(t)

1. Age NS NS NS

2. Education .16 (2.27*) .14 (2.12*) .15 (2.58*)

3. Service time before retirement NS NS NS

4. Rank at the retirement NS NS .16 (2.76**)

5. Preparations for Retirement - .15 (2.35*) NS

6. Work-Family-Conflict - NS NS

7. Perception of organizational politics - -.18 (2.85**) NS

8. Social Capital - .29 (4.47***) .19 (3.30***)

9. Organizational Commitment - - .51 (8.39***)

R² .05 .22 .43Adjusted R² .04 .19 .40

F 2.84* 6.84*** 16.10***

Δ R² - .17 .21

F for Δ R² - 10.31*** 70.46***

Findings (Life Sat)

Life satisfaction

Variables Step 1 Step 2 Step 3

β(t) β(t) β(t)

1. Age NS NS NS

2. Education NS NS .14 (2.18*)

3. Service time before retirement NS NS NS

4. Rank at the retirement NS NS .15 (2.43*)

5. Preparations for Retirement - .20 (3.03**) .NS

6. Work-Family-Conflict - -.27 (-4.06***) -.24 (-3.77***)

7.Perception of organizational politics - .22 (3.46***) .17 (2.80**)

8. Social Capital - .20 (3.05**) .14 (2.14*)

9. Organizational Commitment - - .31 (4.63***)

R² .02 .22 .30Adjusted R² 00 .19 .27

F .95 6.92*** 9.18***

Δ R² - .20 .08

F for Δ R² - 12.67*** 21.45***

Contribution to the literature

Examining the nature of transition process for a special group of top leaders, from a stable into a dynamic system

The findings demonstrate the crucial role that the organization career

management system can play in preparing senior leaders for career transition

the distinct nature of two constructs of career success for the second career (i.e., internal and external). Each form of career success stems from a different set of antecedents.

The concept of protean career was evaluated and shown relevant to the present turbulent business environment.

Managerial implications – study 1

The implications for management go beyond the military context

Relevance of career systems employees leaving an organization with positive

opinions do serve as ‘ambassadors’ to the public and potential organizational members to create a positive impression of the company.

Different career models CEO succession

Managerial implications – study 2 Managerial implications span beyond military context The defense industry may be a great source for new

managerial talent, possessing high skills and qualities, and may be instrumental in applying organizational changes

Organizations that hire retired military officers may benefit from the highly skilled people, typically characterized by strong personal integrity

Effective administrative support mechanisms need to be in place, including the career practice of preparation for leaving the organization. Promoting the employability of their high grade managers would yield long-term bonds with employees at all levels

Executives who leave may play a positive role as ‘ambassadors’, helping with good networking for the organization and for future generations of organizational members.

Publications

Baruch Y. & Quick J. C. (2007). Understanding Second Careers: Lessons from a Study of U.S. Navy Admirals Human Resource Management, 46(4), 471-491.

Baruch, Y. & Quick, J. C. (2009). Setting sails in new direction - Admirals’ 2nd career. Personnel Review, 38(3), 270-285.

Vigoda, E. Baruch, Y. & Grimland, S. (2009, in press). Second Career of Army retirees. Public Personnel Management

Thank you

For the opportunity to present to you