The Talent Gap, 2004


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The Talent Gap, 2004

  1. 1. Minding the Talent Gap Getting people to work in the 21 st Century Anna Pollock, Co-founder 2003
  2. 2. Key Business Challenges <ul><li>Recruiting and retaining the right people - The Talent Gap </li></ul><ul><li>Standing out from the crowd - Differentiation </li></ul><ul><li>Retaining a margin - Commoditisation </li></ul><ul><li>Coping with constant, accelerating change and volatility </li></ul><ul><li>Global competition – notably India and China </li></ul><ul><li>Environmental concerns - resource degradation and depletion </li></ul><ul><li>Accountablity - governance and politics </li></ul>
  3. 3. The Talent Gap <ul><li>Finding people with the skills, experience and attitude you need </li></ul><ul><ul><li>The Skills Gap </li></ul></ul><ul><li>Motivating them to make the contribution needed </li></ul><ul><ul><li>The Leadership Gap </li></ul></ul><ul><li>Retaining their services </li></ul><ul><ul><li>The Satisfaction Gap </li></ul></ul>
  4. 4. The Talent Gap <ul><li>“ We are about to face a demographically driven shortfall that will make the late 1990s seem like a minor irritation” </li></ul><ul><li>“ There’s only a two year window for individual employers to prepare for the coming crisis” </li></ul><ul><li>“ If employers do not respond to the coming shortage, the consequences will be corporately life-threatening” </li></ul>
  5. 5. How Big is the Problem? <ul><li>THE SKILLS GAP </li></ul><ul><li>Deloitte asked CEOs of global companies “what’s the greatest threat over next three years?” </li></ul><ul><ul><li>inadequate skills within incoming work force (70%) </li></ul></ul><ul><ul><li>baby boomer retirement (64%) </li></ul></ul><ul><ul><li>inability to retain key talent (50%) </li></ul></ul><ul><li>McKinsey survey of large companies found that: </li></ul><ul><ul><li>40% cannot exploit growth potential because of talent shortage </li></ul></ul><ul><ul><li>Only 10-20% are improving the talent pool as a top priority </li></ul></ul><ul><li> </li></ul>
  6. 6. How Big is the Problem? <ul><li>THE LEADERSHIP GAP </li></ul><ul><ul><li>Potential leaders “re-engineered” out of the work force </li></ul></ul><ul><ul><li>70% of CEOs considered only fair to weak as leaders </li></ul></ul><ul><ul><li>Only 50% of employees have trust and confidence in their senior leaders </li></ul></ul><ul><li>YET: companies that enjoy high trust and confidence within their workforce are worth 9-10 times more </li></ul><ul><li>66% of multinational company executives believe leadership development programs to be inadequate. </li></ul>
  7. 7. How Big is the Problem? <ul><li>THE SATISFACTION GAP </li></ul><ul><ul><li>80% of men and 71% of women are unhappy with the number of hours they work. Economic and Social Research Council, 2001 </li></ul></ul><ul><ul><li>72% of managers are criticised by family and friends for overwork. Institute of Management </li></ul></ul>
  8. 8. How Big is the Problem? <ul><li>THE SATISFACTION GAP </li></ul><ul><li>Letter to an HR “agony aunt” </li></ul><ul><li>“ I just received yet another mandate from my senior leaders. In addition to producing more with less, I’m now supposed to be a coach to my employees. I’m expected to develop, engage and retain them. How do I do that when I have so much more to do already?” </li></ul><ul><li>I love my work, except for: </li></ul><ul><ul><li>the pressure to produce, conform, innovate </li></ul></ul><ul><ul><li>the jerk I work with (or report to) </li></ul></ul><ul><ul><li>the lack of time for family, health, fun </li></ul></ul><ul><ul><li>the boredom, repetition, bureaucracy, lack of opportunity.... </li></ul></ul>
  9. 9. What are the Causes? <ul><li>Aging Baby Boomers </li></ul><ul><li>Failure of Education and Training </li></ul><ul><li>Changing Immigration </li></ul><ul><li>Global Competition </li></ul><ul><li>Re-engineering </li></ul><ul><li>Downward pressure on prices, commoditisation, cost cutting </li></ul><ul><li>Politics, governance, litigation </li></ul>
  10. 10. What About the Workers! <ul><li>Apparently the young (under 25) are not prepared for the world they will be living in.. </li></ul><ul><li>Soon the older members (55+) will be cashing in their equity and dropping out, leaving.. </li></ul><ul><li>The 25-55 year olds will have to do even more with less in a global economy in which they have less and less influence.... </li></ul>
  11. 11. Traditional Responses <ul><li>Increase pay </li></ul><ul><li>Share options </li></ul><ul><li>Perks </li></ul><ul><li>Pensions </li></ul><ul><li>Holidays </li></ul><ul><li>Training </li></ul><ul><li>Personal development </li></ul>
  12. 12. Traditional Responses <ul><li>In short..... </li></ul><ul><li>BRIBERY! </li></ul>
  13. 13. Why has Bribery Been an Option? <ul><li>Freud - you are an object to me and I'm an object to you, and we can never meet each other. </li></ul><ul><li>Taylor – Workers are to be viewed as passive units of production and the system or the workplace is like a machine </li></ul><ul><li>Darwin – survival of the fittest, I win, you lose </li></ul><ul><li>Adam Smith – an invisible guiding hand will take care of it </li></ul><ul><li>Newton – universe like a machine, obeying laws, running down, comprising “hard” objects that react like billiard balls </li></ul>
  14. 14. The MESSY OLD Paradigm <ul><li>M achines </li></ul><ul><li>E conomically driven EGOs </li></ul><ul><li>S eparate </li></ul><ul><li>S carce </li></ul><ul><li>All Scientifically justified! </li></ul><ul><li>But the science is well past its sell by date! </li></ul><ul><li>Later, I’ll tell you why </li></ul>
  15. 15. QUESTION <ul><li>What do the Following Have in Common? </li></ul><ul><ul><li>Consumers </li></ul></ul><ul><ul><li>Employees </li></ul></ul><ul><ul><li>Shareholders </li></ul></ul><ul><ul><li>Investors </li></ul></ul><ul><ul><li>Regulators </li></ul></ul><ul><ul><li>Stakeholders </li></ul></ul><ul><ul><li>Lawyers </li></ul></ul><ul><ul><li>Tax inspectors? </li></ul></ul>
  16. 16. ANSWER <ul><li>We’re all Human BEINGS.... </li></ul><ul><li>as opposed to </li></ul><ul><li>Human DOINGS </li></ul><ul><li>WE are changing. You and Me. </li></ul><ul><li>WE are FED UP! </li></ul><ul><li>“ We’re mad as hell and we’re not going to take it any more!” – Network </li></ul>
  17. 17. Here’s the ROOT Cause <ul><li>Gallup 2001 surveyed 1.4 million workers via 100,000 divisions in North America and Europe: </li></ul><ul><li>17% found work satisfying </li></ul><ul><li>63% were productive but not committed and actively looking elsewhere </li></ul><ul><li>20% were disenchanted, disaffected and often militant in expressing dissatisfaction </li></ul><ul><li>Think of the consequences when we also know that X% of consumers form their opinion of a brand via ... </li></ul>
  18. 18. You’ve heard of Road Rage <ul><li>Your customers have a one in five chance of being a victim of “work” rage! </li></ul><ul><li>Who suffers, then </li></ul><ul><li>,,.....importance of customer interaction... </li></ul>
  19. 19. Why are WE fed up? <ul><li>Brand Bombardment </li></ul><ul><li>Managerial Fads and Fashions </li></ul><ul><li>Exhaustion & Bewilderment </li></ul><ul><li>Sense of helplessness, being out of control and not heard </li></ul><ul><li>Disillusioned with authority </li></ul><ul><li>Aging – a nation of grumpy old men and women </li></ul><ul><li>Our souls are shaking us up – not just one but many mid life crises! </li></ul>
  20. 20. What do we Know About Ourselves? <ul><li>We don’t want to die </li></ul><ul><li>We prefer security – a sense that our physical needs will be met </li></ul><ul><li>We prefer pain over pleasure </li></ul><ul><li>We don’t like being alone </li></ul><ul><li>We don’t like being ignored (ADD) </li></ul><ul><li>We need to be needed </li></ul><ul><li>We like to make a contribution </li></ul><ul><li>We’d like more time to be creative </li></ul><ul><li>We’d like more time to enjoy what we’ve got, to play, to BE. </li></ul>
  21. 21. A Question of Identity <ul><li>Who Are We? </li></ul>
  22. 22. Who Are We? <ul><li>According to Madonna, “We’re material beings living in a material world” </li></ul><ul><li>According to Taylor, we’re units of production </li></ul><ul><li>According to Freud, we’re objects to be manipulated </li></ul><ul><li>Motivated by greed and fear </li></ul><ul><li>Focused on acquisition – “he who has the most toys wins!” </li></ul><ul><li>Focused on status, power, celebrity </li></ul><ul><li>Wealth = material capital </li></ul><ul><li>Focused on STUFF and being able to measure it. </li></ul><ul><li>How much have you got? </li></ul>
  23. 23. Who Are We? <ul><li>According to Descartes, we’re mental beings capable of learning, analysis, creating new concepts and throwing out old ones </li></ul><ul><li>Cogito, ergo sum </li></ul><ul><li>Identification with our minds, our thoughts </li></ul><ul><li>Importance of being rational and objective </li></ul><ul><li>Reduce a problem to its parts </li></ul><ul><li>If you can’t measure it, you can’t manage it </li></ul><ul><li>Use our rational intelligence to be more efficient </li></ul><ul><li>Transaction economics and Homo Economicus </li></ul>
  24. 24. Who Are We? <ul><li>1990s – radical notion: consumers are having experiences that evoke emotional responses! </li></ul><ul><li>Daniel Goleman et alia : We’re also emotional beings trying to relate to one another, Emotional Intelligence (EQ) </li></ul><ul><li>Connectivity lead to networks; 360 views of the customer; inter-disciplinary teams </li></ul><ul><li>The focus on relationships and managing them – rise and fall of CRM </li></ul><ul><li>Emergence of social software; online communities; virtual companies </li></ul><ul><li>Critical importance of trust, reputation, transparency </li></ul><ul><li>Maybe, people are motivated by things other than money </li></ul>
  25. 25. Which aspect influences our behaviour? <ul><li>Each aspect of ourselves causes us to ask a different set of questions </li></ul><ul><li>Physical Bodies – What? How much? Where? </li></ul><ul><li>Mental Bodies – How does it work? How can we improve efficiency, anticipate, control? </li></ul><ul><li>Emotional Bodies – Who do we involve? How do we relate? Do we belong? Are we OK? </li></ul><ul><li>This begs the nagging set of questions </li></ul><ul><ul><li>WHY? What are we doing this for? What Purpose does it serve? </li></ul></ul>
  26. 26. Who Are We? <ul><li>We’re also spiritual beings seeking meaning and purpose </li></ul><ul><li>This is the new frontier in the western world </li></ul><ul><li>Not to be confused with religious affiliation </li></ul><ul><li>Deeply personal </li></ul><ul><li>Not about beliefs (mental) or belonging (emotional) </li></ul><ul><li>But about BEING </li></ul><ul><li>Who am I? Why am I here? What’s my purpose? </li></ul><ul><li>It’s a journey – inward </li></ul><ul><li>Closing the gap between Personality and Soul. </li></ul>
  27. 27. According to Shakespeare <ul><li>All the world's a stage, And all the men and women merely players; They have their exits and their entrances, And one man in his time plays many parts, His acts being seven ages. … </li></ul><ul><li>infant , whining schoolboy lover , soldier , the justice , lean and slippered pantaloon second childishness and mere oblivion ! </li></ul>
  28. 28. According to Maslow Biological and Physiological needs basic life needs - air, food, drink, shelter, warmth, sex, sleep, etc. Safety needs protection, security, order, law, limits, stability, etc Esteem needs achievement, status, responsibility, reputation Belongingness and Love needs family, affection, relationships, work group, etc Self-actualisation personal growth and fulfilment
  29. 29. According to Chopra <ul><li>The Seven Stages of Growth </li></ul><ul><ul><li>Innocent </li></ul></ul><ul><ul><li>Ego </li></ul></ul><ul><ul><li>Achiever </li></ul></ul><ul><ul><li>Giver </li></ul></ul><ul><ul><li>Seeker </li></ul></ul><ul><ul><li>Seer </li></ul></ul><ul><ul><li>Spirit </li></ul></ul>
  30. 30. Evidence <ul><li>More Givers </li></ul><ul><ul><li>Response to Asian Tsunami </li></ul></ul><ul><ul><li>Liveaid, Comic relief </li></ul></ul><ul><li>More Volunteers </li></ul><ul><ul><li>60% of the US workforce also work for nothing </li></ul></ul><ul><ul><li>Time invested, equivalent to 12% of national budget </li></ul></ul>
  31. 31. Evidence <ul><li>More Seekers </li></ul><ul><ul><li>The ‘Soul of Britain' project found that 76% of people in the UK admitted to having had a religious or spiritual experience. </li></ul></ul><ul><ul><li>A large majority of today's college students describe themselves as spiritual beings (77%), and place a high value on &quot;integrating spirituality&quot; into their lives (58%) </li></ul></ul><ul><ul><li>54%of British people in the AB Social Group want “fulfillment” rather than more stuff (24%) </li></ul></ul>
  32. 32. Evidence <ul><li>“ In our kind of society there’s a loss of meaning, a loss of sense of purpose, of what we’re here for. </li></ul><ul><li>It’s as though that struggle against material need kept us all going through the generations, gave us a purpose and a focus for our lives, and when that has been satisfied we’re rather bereft. </li></ul><ul><li>What’s the point? What’s the purpose? What’re we here for? And yet material greed goes on being dominant, and politicians promise more and more economic growth when actually we’re spiritually and in many other ways bereft. </li></ul><ul><li>At the same time, we’ve got a degradation of sexuality, excessive consumption of alcohol and the problem of criminality and drug-addiction - the problem that explains most of the crime and fear in our communities up and down this land” </li></ul>
  33. 33. Beyond Achievement <ul><li>A nation of Givers, Seekers and Seers will </li></ul><ul><li>Perceive, </li></ul><ul><li>Think, </li></ul><ul><li>Aspire, </li></ul><ul><li>Behave, </li></ul><ul><li>Consume, </li></ul><ul><li>Invest, </li></ul><ul><li>Work, </li></ul><ul><li>Judge, and </li></ul><ul><li>Recommend </li></ul><ul><li>very differently than a nation of ego-gratifying achievers! </li></ul>
  34. 34. Givers, Seekers & Seers <ul><li>Are on a journey inward </li></ul><ul><li>They have enough stuff </li></ul><ul><li>First, they seek experience </li></ul><ul><li>Then, they seek authenticity </li></ul><ul><li>Then the hard questions start: </li></ul><ul><li>Who am I? why am I here? what are my values? Do I belong here? What’s my calling? What do I really love doing? How can I find peace of mind? Why are my relationships in a mess? What really matters? What can I do to make the world a better place? </li></ul>
  35. 35. Givers, Seekers & Seers <ul><li>Make the best employees, investors, partners, customers! </li></ul><ul><li>WHY? </li></ul><ul><ul><ul><li>These are the future leaders </li></ul></ul></ul><ul><ul><ul><li>More self-directed, self-aware, curious, adaptable, non-conforming </li></ul></ul></ul><ul><ul><ul><li>Willing to align themselves to a higher cause, want to serve </li></ul></ul></ul><ul><ul><ul><li>Able to tap into sources of creativity, insight, empathy </li></ul></ul></ul><ul><ul><ul><li>More likely to be trustworthy, reliable, authentic, and transparent – watch the walkers not the talkers </li></ul></ul></ul>
  36. 36. Your Challenge <ul><li>To close the Soul Gap </li></ul><ul><li>To make your company a place where the givers and seekers will feel at home </li></ul><ul><li>To close the gap between what talented people are seeking and what your company supports by... </li></ul><ul><li>Cleaning Up the MESS! </li></ul><ul><li>Showing you CARE! </li></ul><ul><li>Not just leading but inspiring! </li></ul>
  37. 37. Clean Up the MESS! <ul><li>A MAJOR shift in thinking – a change of mind and change of heart is required </li></ul><ul><li>Your company is not a profit making machine but a living, breathing organism made up of interdependent, self-organising agents called human beings. </li></ul><ul><li>Your company is not a BRAND but a community </li></ul><ul><li>It’s a complex and adaptive network and obeys the rules of networks. </li></ul><ul><li>Any form of command and control; the application of levers, incentives and disincentives are counter productive </li></ul>
  38. 38. A Change of Paradigm <ul><li>M achine </li></ul><ul><li>E go </li></ul><ul><li>S carce </li></ul><ul><li>S urviving </li></ul><ul><li>Based on Newtonian science </li></ul><ul><li>C ommunity </li></ul><ul><li>A live </li></ul><ul><li>R esponsible </li></ul><ul><li>E volving </li></ul><ul><li>Based on quantum physics and complexity science </li></ul>
  39. 39. Take C ARE 5 <ul><li>Community </li></ul><ul><li>Collaboration </li></ul><ul><li>Connected </li></ul><ul><li>Cause </li></ul><ul><li>Chaordic </li></ul>
  40. 40. Take C A RE 5 <ul><li>Attention </li></ul><ul><li>Alert </li></ul><ul><li>Alive </li></ul><ul><li>Adaptable </li></ul><ul><li>Agile </li></ul>
  41. 41. Take CA R E 5 <ul><li>Responsive </li></ul><ul><li>Responsible </li></ul><ul><li>Regenerative </li></ul><ul><li>Reciprocal </li></ul><ul><li>Reflective </li></ul>
  42. 42. Take CAR E 5 <ul><li>Engage </li></ul><ul><li>Ethical </li></ul><ul><li>Experimental </li></ul><ul><li>Emerge </li></ul><ul><li>Evolve </li></ul>
  43. 43. Don’t just Lead, INSPIRE! <ul><li>Caring Companies are run by inspired people </li></ul><ul><li>To inspire means to “breathe life into”; and the word spirit means “breath of life” </li></ul><ul><li>Inspiring leaders breathe life into their communities – they make them come alive! </li></ul><ul><li>Which means the leaders must be alive themselves </li></ul><ul><li>They have started their inner journey – they are the givers, seekers and seers </li></ul><ul><li>They know who they are and what they stand for and this permeates their vision, their words and deeds </li></ul><ul><li>Their clarity and strength of vision enable them to attract the talent they need to implement it </li></ul><ul><li>They know there is no “how to manual”. </li></ul><ul><li>They create the conditions in which creativity can emerge </li></ul>
  44. 44. It’s Up to “Me” <ul><li>Quotes on the individual </li></ul>
  45. 45. Heretics, Upstarts & Heroes <ul><li>Jamie Oliver – healthy school meals </li></ul><ul><li>Camilla Batmangherligh – The Kid Company </li></ul><ul><li>Francis X - Responsible Travel </li></ul><ul><li>Anita Roddick – The Body Shop </li></ul><ul><li>Bob Geldorf – LiveAid and Live8 </li></ul><ul><li>Mo Mowlem – Northern Ireland </li></ul><ul><li>The McCartney sisters – standing up to the IRA </li></ul><ul><li>Let’s find them and celebrate their achievements.. </li></ul><ul><li>Inspiration is contagious </li></ul>
  46. 46. Inspired Companies <ul><li>Are run by people with high IQ, EQ and SQ </li></ul><ul><li>Demonstrate clarity of Purpose and Strength of Passion founded on inner values that are real </li></ul><ul><li>Dance with their Customers on the Edge of Chaos! </li></ul>
  47. 47. Spiritual Capital
  48. 48. Companies with Spiritual Capital <ul><li>Are not just sustainable, they are evolutionary . These organisations move; they have life; a deep sense of purpose and direction; </li></ul><ul><li>They are self aware – they know what they stand for </li></ul><ul><li>They are vision and value led and the values are deep human values – saving life; healing the planet; improving education etc </li></ul><ul><li>They have a high sense of connectivity and responsibility for the whole . They internalise externalities. They have a sense of vocation. </li></ul>
  49. 49. Companies with Spiritual Capital <ul><li>They are compassionate companies that understand and support the entire community of individuals involved in producing, distributing and consuming the goods and services they produce; </li></ul><ul><li>They celebrate and practice diversity </li></ul><ul><li>They are curious , constantly ask why and maintain a deep sense of humility. Their curiosity and spontaneity foster creativity and innovation . As a consequence, they are more adaptable and agile . </li></ul>
  50. 50. Companies with Spiritual Capital <ul><li>Make more money </li></ul><ul><li>Are valued more highly </li></ul><ul><li>Experience less staff and customer churn </li></ul><ul><li>Make the world a better place </li></ul>
  51. 51. Examples <ul><li>Southwest Airlines </li></ul><ul><li>Four Seasons </li></ul><ul><li>Starbucks </li></ul><ul><li>Pret </li></ul><ul><li>Harley Davidson </li></ul><ul><li>Merck </li></ul>
  52. 52. Companies with Spiritual Capital <ul><li>Attract the brightest and best – they close the talent gap </li></ul><ul><li>Attract investors from among the “givers, seekers and seers” </li></ul><ul><li>Enjoy the esteem of the community at large </li></ul><ul><li>Sleep well at night, knowing they are leaving the world a better place. </li></ul>
  53. 53. Follow On <ul><li>Read the Book! View The Big Picture </li></ul>
  54. 54. Visit <ul><li> </li></ul><ul><li> </li></ul><ul><li>Thank you! </li></ul>