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Nova presentation 092611

Nova presentation 092611



The world of work is changing.

The world of work is changing.



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  • The ManpowerGroup’s depth and breadth gives us access to labor market information around the world. We gather that information from clients and candidates as well as perform research to keep up with the changing world of work.We put over 500,000 people to work every dayWe have over 4,000 offices across 82 countries We train over 9 million people each yearWe have over 30,000 employees and over 400,000 clientsWe are the global leader in Recruitment Process OutsourcingWe have the world’s largest IT professional placement firm – in ExperisWe have the world’s largest outplacement firm – at Right ManagementAs you’re going to learn today, access to talent is the key competitive differentiator. We give our clients access to that talent.Transition: Now let’s get started – what global forces and workforce trends are dramatically changing the labor market?
  • We take an outside-in view to understanding how the world of work is changing. In order to understand global and local labor markets you must understand the forces that are changing them. There are many forces of change, but these are the ones that are emerging to have the greatest impact on the trends shaping the world of work. China, India, Brazil, etc. – are rising in power, while developed markets seem to be more challenged and significantly impacted by the demographic landscape ultimately reshaping the global economy. For example, in Japan the fertility rates are so low that the young people coming into the workforce aren’t able to replace the aging population.The shift of wealth that comes with this global readjustment is widening the gap between the haves and the have not's. It isn’t just about wealth, it is also about education, skills and opportunity. This is social bifurcation. And of course technology is changing our lives, blurring the lines between work and play, creating transparency, lowering the cost of transactions and giving access to information and individuals. All of these factors make talent the new competitive advantage – the new ‘it.’ We believe that countries and companies can unleash human potential as major agents of economic growth. We call this force talentism, where a workforce strategy to get, keep and unleash this talent will be as important to your success as your capital strategy. These trends are so impactful that we are on the cusp of a new era – the HUMAN AGE where human potential will be the catalyst of change and the driving force economically, politically and socially.Transition: So what does all this mean to you here in California?
  • Now let’s discuss a few trends that impact your business and change how you approach your talent strategies. The Talent Mismatch is deepening as the working age population declines and the nature of work changes.Organizations will need agile attraction and retention strategies.Critical skills shortages will accelerate the mobility of workers and work.There will be increased pressure to keep older workers engaged longer.Continuous training and development will be required to maintain a job-ready workforce.Individual Choice will be exercised by those with the skills that are most in demand.Companies need to better understand individuals’ motivations and work preferences.Strategies will be needed to attract, engage and manage the multi-generational workforce.Segmented candidate attraction models will be required.Employer brand and reputation will become increasingly important.Individuals will “own” their careers and development.Technological Revolutions have the power to change where, when and how we work.Increased transparency has changed the definition of valuable data.Unsubstantiated information increases the importance of verification.Technology and global labor arbitrage (offshoring) increase individuals’ and organizations’ choice of where, when and how work is performed.And finally, rising Customer Sophistication requires businesses to deliver greater value and efficiency.Responses and solutions will need to be faster, more agile, differentiated and global.Intensified price / value compression puts increased pressure on productivity. Talent will become a key competitive differentiator.A company’s practices are under increased scrutiny – they must stand up to total transparency.Transition: With these forces and trends as the backdrop, let’s begin talking about the talent shortage.
  • The global forces and trends we just talked about impact the supply of talent in the world. The population is aging, people don’t have the skills necessary for 21st century jobs and customers are smarter than ever before. This makes talent the key competitive differentiator – all of this adds up to an environment where unemployment remains high:According to the BLS (these are April numbers – make sure they are current):In the U.S., unemployment is at 9.0% for April 2011.Nonfarm payroll rose 244,000 in April.The last three months averaged 233,000 new jobs per month – compared to the previous three month average of 104,000 per month.At the same time, people are looking for work, but those people don’t have the requisite skills you need for your business. This increase in jobs could put additional pressure on companies as they search for talent.While not all employers worldwide are feeling the pain associated with the global talent shortage, it’s likely they will soon feel pressure. And, so will you. Business leaders worldwide are grappling with new demands for productivity and innovation, and in this challenging environment they are discovering that only talent can deliver it.
  • Organizations are operating in the “new normal,” where the economic pressures of the last few years have forced them to do more with less. They’ve discovered that they can accomplish amazing things despite reduced resources – as long as they have the right people in place. As we enter the Human Age, when human spirit and potential will become the driving force behind enterprise and innovation, having the right people in the right place at the right time becomes more critical than ever.Yet, as the global economic recovery continues, employers report increased difficulty filling open positions – despite an apparent surplus of talent amid high unemployment.
  • This year, we expanded our sixth annual Talent Shortage Survey not only to gauge where employers are having difficulty filling available positions, but also examine why organizations are facing a lack of talent and what they are doing to mitigate these challenges.
  • Let’s talk about the results.
  • Employers are more likely to report difficulty this year than at any point since we started the survey. While the global economic downturn may have masked the talent shortage for several years, the global recovery has made the strains of the talent shortage more evident.This slide shows the huge jump in U.S. employers reporting difficulty filling positions. This year, 52% of employers report difficulty while last year it was 14%.This slide also shows the comparison to the global average numbers.
  • This year, for the first time, we asked employers about the impact unfilled jobs have on their key constituents (customers, investors, organization, etc.). Nearly three-quarters of the employers we talked to report that when positions are not filled in a timely manner there was a high or medium impact on key constituents.The fact that nearly 30% of organizations believe the impact is low or non-existent is alarming. Employers may be delaying hiring until they see more demand. These companies are content to leave job vacancies unfilled until their respective economies pick up. And many employers believe they can simply attract the talent they need when they need it with better pay and incentives. This “I can buy it when I need it” approach is shortsighted as many organizations may increase hiring simultaneously – exacerbating the talent shortage. In either case, these companies may be in for a rude awakening when the labor market further tightens and they have not developed a firm strategy for attracting and retaining the right talent.
  • Now for the list. Sales reps and skilled trades have topped the list two years in a row (although their ranking flip-flopped – last year sales reps were #1). And sales reps have been on the list for the past six years – each year we’ve done the survey. Over half of this year’s jobs were on last year’s list – and many have appeared over and over. Other jobs that appear often include: engineers, IT staff and machinists.Why have these jobs perennially been on the list? There are many answers to that question:The jobs have structurally changed and the skills needed to do the job have changed, too. The average age of many of these positions is quite high – the aging workforce is retiring leaving openings.In some cases, these jobs are not as attractive to young people.
  • To explore the main reasons why employers have difficulty filling positions, respondents could select choices from three main areas: candidate-specific factors, such as lack of experience; environmental/market factors, such as reluctance to change jobs in the current economic climate; and organizational factors, such as the company not having a strong employer brand.The reasons on this slide and the next are in order – “looking for more pay than is offered” was the number 1 reason cited. That’s the only organizational factor listed in this list of top responses. “More pay” could be a supply and demand issue – if I’m the candidate with the skills you need, it is likely I’m in demand in the marketplace, so I can demand more money.But the vast majority of employers site candidate-specific reasons for being unable to fill vacancies – the candidates employers are seeing just don’t measure up. Companies cited a lack of experience, technical skills deficiencies or poor soft skills among available candidates as a bar to employability. Having workplace skills such as collaboration, critical thinking and agility are critical to generate productivity and innovation.
  • Here are more reasons why employers are struggling to fill positions. Again notice the candidate-specific factors such as personality and intelligence and lack of soft skills.
  • We’ve talked about the fact that over half of the U.S. employers surveyed are having trouble filling key positions within their organizations. I’ve shown you the list of hardest jobs to fill – topped by skilled trades, sales reps and engineers. And, we’ve talked about why employers are struggling – there are environmental and market factors as well as organizational and candidate-specific factors that make hiring the right person difficult.So what can you do about it?
  • In the past, employers have adopted a “just in time” approach to hiring because talent was always there when they needed it. Today, employers can no longer afford to do this because external forces – that we talked about earlier – make it an unviable solution. Companies who continue to take this short-sighted approach will jeopardize their business, because in the short-term, employers are faced with three just-in-time choices:Available candidates: You can continue with the “just in time” approach to hiring, recruiting from the pool of available workers who likely do not present a satisfactory skills match, but will allow you to quickly ramp up your workforce.Teachable fit: Hire (or promote from within) those who may not possess all the technical skills necessary to perform a business-critical role but have the right mindset and “soft” skills. They have the aptitude and capability to develop into the position.Stretch existing workforce: Drive the current workforce to take on more responsibility, improving productivity and efficiency.But talent simply can’t be “manufactured” in the short-term. It can, however, be “manufactured” in the long term by developing a robust workforce strategy – so let’s talk about workforce strategy.
  • Organizations need to recalibrate their mindsets to move away from only hiring just-in-time talent to predicting long-term talent needs. The approach must go beyond an internally focused workforce plan to a holistic workforce strategy that balances external supply with internal demand.According to our research, only 13% of HR leaders say they have a documented workforce strategy beyond their business plan.
  • Employers can’t assume that the right talent will be where and when they need it.And a simple workforce plan may not be enough. As you know, the “manufacturing” of talent is not an overnight process – it takes time to develop and companies must strategize accordingly.The next level is to have a comprehensive workforce strategy in place.
  • Here is where we believe true business success is achieved. A robust workforce strategy should be based on the company’s business strategy and take culture, structure, talent, people systems and processes into account. It should identify the gaps between talent that is available and the talent that will be needed. And, it should consider important external factors that could affect future talent sources – such as demographic shifts, the rise in emerging markets and rapidly evolving technology.Companies that employ a workforce strategy are better prepared to successfully fill the positions they need to succeed.Start thinking about how you fit into this strategy as a partner…I have a few more slides and then we’ll spend some time discussing this.Transition: Let’s go back to our Talent Shortage survey results to find out what other companies are doing to overcome the talent shortage. What parts of a workforce strategy are those we surveyed using?
  • We asked employers what they were doing to overcome their talent shortage. This slide shows the first six responses.Some of these solutions are short-term and other have a longer-term focus. We encourage partnering with educational institutions – all of the places where people learn should be more closely aligned with business to make sure we’re teaching people what they need to succeed in the contemporary world of work.I’m happy to see that employers are considering their existing employees. Focusing on retention and investing in training and development are good ways to make sure you have the talent you need.But we’ll also have to look outside for new employees – so improving recruitment strategies, focusing on the pipeline of candidates and looking outside of your region, either to relocate a new employee or to allow virtual work, are ways they will improve their chances of getting the talent.
  • Here are more strategies the employers we surveyed are using. You can looking outside your region and your can look outside your country for specific skills – again relocate the worker or allow virtual work across borders.Paying more and improving benefits is another solution, albeit an expensive one. But when the laws of supply and demand are strong, we may have to pay more for that candidate who has the skills we’re looking for.All of these strategies can be part of that comprehensive workforce strategy that looks at the overall business strategy, training and development programs, collaborative opportunities and external influences.
  • This sobering statistic from the World Economic Forum says it all – if we don’t add a substantial number of skilled workers to our labor force, we won’t be able to sustain economic growth.
  • Our latest talent shortage survey tells us that we have to start now taking a longer-term view of talent and develop a robust workforce strategy. Over 50% of the employers we surveyed indicate they are struggling to find workers. The list of hardest jobs to fill includes positions that are key to a companies success and the reasons why talent is so hard to find are varied across organizational, candidate-specific and environment/market factors.Strategies currently used to try to overcome this shortage are not all short-term fixes – they require a strategic approach to workforce planning, investments in training and development, improving the pipeline, looking in new geographic regions, partnering with educational institutions and paying people more.As the global economy continues to improve, the talent shortage will become more pronounced and businesses that dramatically reduced their workforce during the recession will be competing for talent in a complex environment. In the Human Age, talent has become the key competitive differentiator for organizations – and successful businesses will be those that recognize the key to productivity and innovation is to harness the talent and potential of humans.Now, we have XX minutes left – please take 10 minutes to talk with your table about how your organization needs to adapt. I’ll ask for a few volunteers to share their thoughts when you are done.
  • Thank you for your time.

Nova presentation 092611 Nova presentation 092611 Presentation Transcript

  • Human Age: Talent Mismatch – the Gap Widens
  • 2
    worldwide clients
    countries and territories
    offices worldwide
    800 offices
    in North America
    North American employees
    The Facts About Manpower
    4 million
    employees worldwide
  • The world of work is changing…
  • ManpowerGroup
    ManpowerGroupTM is the world leader in innovative workforce solutions. We leverage our global reach and local expertise of tens of thousands of people across more than 80 countries, making it possible for businesses to access the talent they need when they need it.
    ManpowerGroupTM Solutions provides clients with human resources outsourcing services primarily in the areas of large-scale recruiting and outcome-based workforce-intensive initiatives, thereby sharing in the risk and reward with our clients.
    ExperisTM is the global leader in professional resourcing and project-based workforce solutions. With operations in more than 50 countries, we deliver 53 million hours of professional talent specializing in IT, Finance and Engineering to accelerate clients’ businesses each year.
    Right Management®is the global leader in talent and career management workforce solutions. Through our innovative and proprietary process, we leverage our expertise to successfully increase productivity and optimize business performance..
    Manpower®is the global leader in contingent and permanent recruitment workforce solutions. We provide the personal flexibility and agility businesses need with a continuum of staffing solutions.
  • Forces of change in the world
    Emerging markets are reshaping the global economy…
    Widening the gap between the have’s and the have not’s.
    Rapid technological innovation is creating transparency and lowering transaction costs.
    Talent is the new ‘it’ – unleashing human potential becomes the major agent of economic growth.
  • World of work trends
  • The U.S. is still wrestling with high unemployment, but…
    of employers report difficulty filling open positions.
    ManpowerGroup 2011
  • 2011 ManpowerGroup Talent Survey
  • About the ManpowerGroup Talent Shortage survey
    6th annual survey
    More than 1,300 employers surveyed in the U.S.
    Nearly 40,000 globally
    39 countries and territories
    Research conducted in Q1 2011
  • U.S. results
  • Percentage of U.S. employers having difficulty
  • Impact on stakeholders
  • Top ten jobs in the U.S.
    Skilled Trades
    Sales Representatives
    Accounting & Finance
    IT Staff
    Secretaries, PAs, Admins
    Machinist/Machine Operator
  • Why are employers having difficulty?
    Looking for more pay than is offered.
    Lack of "hard" job skills or technical skills.
    Lack of experience.
    Lack of available applicants/no applicants.
    Don't possess the right values and mindset.
    Lack of knowledge of business or academic disciplines.
  • More reasons why
    Don't possess the right personality and intelligence.
    Lack of applicants willing to work on a part-time or contingent basis.
    Lack of "soft" skills or interpersonal and communication skills.
    Undesirable geographic destination.
    Poor image of business sector or occupation.
  • To sustain economic growth, by 2030 the U.S. will need to add more than
    25 million
    World Economic Forum
  • Just-in-time hiring
    Settle for available candidates.
    Find the teachable fit.
    Stretch the existing workforce.
  • Make the jump to workforce strategy
    Just-in-Time Hiring
    Workforce Strategy
    Workforce Plan
  • Recalibrate
    Just-in-time hiring:
    Hiring from a restricted pool of available workers, who may not possess the necessary skills and capabilities.
    Workforce plan:
    Identifies current internal demand and specifies the skills needed to accelerate business success.
    Considers existing workers and their development and training.
    Identifies current pools of talent and outlines methods to tap into this resource.
  • Workforce strategy
    Clarifies outcomes needed from the organization to achieve business strategy.
    Evolves to reflect workforce trends and business requirements.
    Identifies training and development programs to accelerate the learning of existing employees and alleviate the challenges faced by an aging workforce.
    Outlines collaborative opportunities to partner with education and government institutions to tackle the skills mismatch.
    Considers external factors.
  • What strategies are you pursuing?
    Changing recruitment strategies.
    Focusing more on staff retention in jobs where recruitment is difficult.
    Providing additional training and development to existing staff to fill vacancies.
    Broadening search outside of your local region.
    Partnering with educational institutions to create curriculum aligned to your talent needs.
    Increasing the focus on improving your pipeline.
  • More strategies
    Broadening search outside of your country.
    Increasing starting salaries.
    Enhancing benefits packages, including signing bonuses.
    Creating an interim role for best fit internal individual/team.
    Providing clear career development opportunities to applicants during recruitment.
    Providing virtual work approaches to applicants.
  • By 2020 there will be
    123 million
    high-skill, high-pay jobs available in the U.S., but only
    50 million
    Americans with the right education to fill them.
    Economist Intelligence Unit
  • Now that you understand…
    The talent mismatch gap is widening.
    Doing more with less is not an option in the future.
    The hardest jobs to fill are vital to your success.
    A workforce strategy is key.
    Are you ready?
  • Thank you!
    Thomas E. Baity
    For more go to www.manpowergroup.com/research/