Future of career and careers of the future Yehuda Baruch Norwich Business School University of East Anglia UK
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.
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. Rousseau; Herriot & Pemberton; +: New psychological contracts; new deals
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 HRM transition
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.
Level Fit Values Individual Aspirations Organizational Philosophy Norms Individual Attitudes Organizational Policies Behaviours Individual Actions Organizational Practices The CAST model (Baruch, 2004)
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.
Career Proactivity 1a Unemployment periods 1b Supportive organizational career systems 2a Time taken to find the first job 2b 2c Positive feelings during the process 5a 5b 3a Support from friends Satisfaction with the transition process 3b External career success 4a 4b Traditional Career approach Support from family 6a 6b 7 Internal career success Protean Career approach Labour Market Perception The Research Model
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 SatisfactionDependent 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 forHierarchy • 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
Control variables 1.Age 2.Education 3.Rank at retirement 4.Service time before the retirement Preparations for Retirement Success in Second Career 1.Career Satisfaction 2.Life Satisfaction 3.Turnover intentions 4. Number of jobs 5.Tenure in new job Social Capital Organizational Commitment Perception of Organizational Politics Work– Family Conflict Model and hypotheses Research Model
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 capitalispositively associated with success in second career, and negatively associated with turnover intentions and number of jobs after retirement H2b: Social capitalis positively associated with organizational commitment during the second career
Hypotheses (Cont.) H3a: Perceptions of organizational politicshave 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 politicshave a negative relationship with OCduring 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)