Environments of Compensation and Benefits Administration

Workers and the Social Environment

Now let's review the social environment of work as it impacts, and is impacted by, workers.

Worker choice

To a considerable extent, the economic system provides a basis for determining if a job is worth doing. Employers decide what they are willing to pay, and workers decide what they are willing to accept. However, it is the worker's ability to choose to accept a particular job or career path that is having increasing influence on jobs. Indeed, the work that society chooses to accomplish will be determined increasingly by what workers want to do, as well as by what tasks society wants done.

Workers' expectations are rising, and they now look for:

• higher income levels
• greater challenges on the job
• increased skill requirements
• more attractive benefit packages
• more development and career opportunities
• a better work-life relationship including workplace flexibility, childcare services, and health and wellness support.

Demographic Changes

In recent years, projected changes in the U.S. labor force have received even more attention than changes in work. Much of this attention has focused on demographic changes and their impact.

As the U.S. population has increased, greater numbers of workers have entered the labor force. Each new generation of workers has higher expectations and an interest in real income gains. We will now look at three groups that are having a big impact on the labor force:

• Generations
• Ethnic minorities
• Women

Generations

The baby boomers greatly changed the age structure of the labor force in North America. From 1975 to 1990, the baby boom workforce group increased by over 20 million persons, or 55%. This not only led to a more rapid rate of economic growth, but also fierce competition for promotions. Today, baby boomers no longer dominate the workforce as they are retiring in large numbers. However, many baby boomers lack the financial resources to retire and have elected to delay their retirement.

Generation X now provide the experienced leadership in most businesses. Millennials are right behind. These two generations now dominate the workforce and have influenced changes in the labor market. Generation X are very effective managers and excellent problem solvers. They value workplace flexibility. Millennials are tech savvy, enthusiastic about their jobs, and want to be developed, but are not as strong team players as prior generations. Both Generation X and Millennials “work to live” but don’t “live to work”. Generation Z has begun to enter the workforce as the most educated and technologically savvy generation ever. However, they are faced with a difficult environment for advancement in the workplace and many have instead chosen to focus on work-life balance or start their own business.

Ethnic Diversity

The ethnic diversity of the labor force will continue to grow over the next several decades. Hispanics, Asians, and Blacks continue to increase in the labor force. Hispanics are expected to increase in the labor force more than any other demographic group due to their overall population growth. They will have an offsetting influence over the declining birth rates of other groups.

Women

Perhaps an even more important demographic change in America's labor force was the extraordinary increase in female participation over the last 77 years. More than three-fifths of the growth in the total workforce from 1947 to 1996 was the result of increased female participation. Today, there are almost as many women employed in the U.S. as men and married women have accounted for much of this growth. In more than 60% of all marriages today, the husband is not the sole breadwinner.

The table shows the historical increase in the participation rate of women in the labor force.