Navigating the changing world of work World 2020 Manpower booklet may 2010

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Following a detailed analysis of the world's shifting trends and dynamics, Manpower Inc. has identified the following megatrends as critical to navigating the changing world of work:


The Demographics and Talent Mismatch. The pressure to find the right skills at the right time will increase as working age populations decline, economies rebound, emerging markets rise, and the nature of work shifts.

Individual Choice. Individuals are exercising their choice as they realize they have the power to opt for or against a given job, requiring companies to think differently about how they attract, retain and stay relevant to an ever select group of talented individuals.

Rising Customer Sophistication. The transparency and velocity of information exchange throughout the entire value chain is creating innovation and tension at every level within that chain.

Technological Revolutions. Having the power to change where, when and how we work, enabling organizations and individuals to be more agile and innovative, is happening on a daily basis and we've only seen the tip of the iceberg.
Click here for an executive summary of these four World of Work Megatrends.

We didn’t stumble upon these trends, we researched them with intense curiosity. The World of Work trends we’ve identified are foundational – they’re foundational to how we act, where we invest, and where we focus our thought leadership. They are drivers of secular growth at the core of our business as well as in our specialty areas and outcome-based solutions. It is our grasp of these trends that gives us the confidence that we are addressing our clients and candidates with real solutions – solutions that are practical, adaptable and flexible.

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Navigating the changing world of work World 2020 Manpower booklet may 2010

  1. 1. Navigating the Changing World of Work
  2. 2. Navigating the 1 Navigating the Changing World of Work
  3. 3. Changing World of Work Introduction...................................................................................................... 3 Demographics / Talent Mismatch......................................................................5 Individual Choice.............................................................................................. 19 Rise of Customer Sophistication.......................................................................31 Technological Revolutions.................................................................................37 Implications to the World of Work..................................................................... 43 Manpower Inc. Research...................................................................................45 About Manpower Inc........................................................................................ 46 Navigating the Changing World of Work 2
  4. 4. Introduction We power the World of Work. Manpower’s pursuit of delivering The Demographics and Talent We generate power by innovative high-impact Mismatch is the conundrum workforce solutions to enhance that both individuals and connecting: the competitiveness of the companies are feeling right now. • the visions of clients, organizations and the individuals As the working age population we serve is anchored in what declines and companies are • the motivations of people, we know. Based on our local looking for talent, they’re looking • and what’s now and what’s expertise and global reach we in a much more specific way, yet next in the World of Work. know that there is an increasing individuals are also being more The World of Work trends velocity of change happening selective when they can. every day in the way work is that we’ve identified are Individual Choice is creeping performed. We have identified four foundational—they’re in wherever possible. Individuals megatrends impacting the World foundational to how we act, are exercising their choice as of Work. We didn’t stumble upon they realize they have the where we invest and where we these trends, but researched them power to opt for or against focus our thought leadership. with intense curiosity. 3 Navigating the Changing World of Work
  5. 5. a given job, which in turn is Technological Revolutions are growth at the core of our requiring companies to think at the heart of almost all of this. business as well as in our differently about how they Having the power to change specialty areas and outcome- attract, retain and stay relevant where, when and how we work, based solutions. It is our grasp to an ever select group of enabling organizations and of these trends that gives us talented individuals. individuals to be more agile and the confidence that we are innovative is happening on a addressing our clients and Rising Customer daily basis and we’ve only seen candidates with real solutions Sophistication is happening the tip of the iceberg. – solutions that are practical, across the board. The adaptable and flexible. transparency and velocity of The World of Work trends information exchange throughout are foundational—they’re the entire value chain is creating foundational to how we act, innovation and tension at every where we invest and where we level within that chain. focus our thought leadership. They are drivers of secular Navigating the Changing World of Work 4
  6. 6. Demographics 5 Navigating the Changing World of Work
  7. 7. and Talent Mismatch Demographic and economic shifts are accelerating the talent mismatch. The pressure to find the right skills in the right place at the right time will increase as working age populations decline, economies rebound, emerging markets rise, and the nature of work shifts. Navigating the Changing World of Work 6
  8. 8. Teachable Fit As the talent mismatch The recession has cast a new Employers are also facing light on talent supply and ongoing, systemic talent grows more severe, the management around the world. shortages—such as those Unemployment is persistently in the healthcare and energy “teachable fit” is a practical high in developed and even industries—are not going to framework that becomes in many developing countries, fill the gaps one hire at a time. yet organizations worldwide Instead, they must recalibrate fundamental to talent report difficulty filling key their mindsets to consider positions. There are not enough candidates who may not meet strategy—and employers sufficiently skilled people in the all of the job specifications, need a talent strategy that right places at the right times. but whose capability gaps can Simultaneously, employers are be filled in a timely and cost- not only keeps up with seeking ever more specific effective way. skill sets and combinations of business strategy, but skills that will help drive the The key to success with this new mindset is the ability to identify a accelerates it. organization forward. 7 Navigating the Changing World of Work
  9. 9. Teachable Fit “teachable fit.” “Teachable fit” In any problem of supply- Location migrants. The global is a concept that focuses on demand imbalance, employers workforce is on the move, and four questions: have two options: to hold out for candidates may be willing to the perfect candidate or find the relocate for work—especially • What capabilities are essential “teachable fit.” The focus here when the recession eases. to performing the job? is on increasing the supply by However, employers are still • Which of these are teachable changing the employer’s mindset learning to capitalize on this in an efficient way? regarding sources of available trend, while many governments talent. To fill large and systemic are still unsure about whether • Is there adequate time and talent gaps, four potential labor or how to facilitate productive money to develop these pools are promising: location work migration. Three-fourths capabilities in the candidate? migrants, industry migrants, of workers said they’d consider internal role changers and relocating for a better job • Do candidates have the workforce entrants. opportunity, one-third said they’d capacity to develop them? be willing to consider relocating anywhere in the world, and Navigating the Changing World of Work 8
  10. 10. Teachable Fit 40 percent said they’d consider growing faster than the talent as those in sales, finance, moving permanently. supply. Consider the talent and management—that need available in low-growth industries translation to a new industry. Industry migrants. Some that can migrate into new fields. Others may have skills adjacent industries are cutting their Some of these people may to growing needs—such as workforces, while others are have highly valued skills—such technicians and field support— Shrinking Industries Growing Industries Education Healthcare Professional & Business Services Other Services Wholesale & Retail Trade Federal Government Manufacturing Utilities Mining -1.5 -1.0 -0.5 0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 Average annual rate of change (%) 9 Navigating the Changing World of Work
  11. 11. Teachable Fit and require more extensive other programs to enable their capabilities. The important point training to bridge skills gaps. transition into the workforce. here is to understand how fillable those gaps are—both in terms Internal role changers. Often Training and development are of technical skills and candidate the best source of “new” talent the keys to successfully tapping mindsets—and at what cost. is the people already in your into the talent pools listed above, “Teachable fit” is a practical company—if your organization especially among the last three framework that can predict how has the foresight and ability to groups. This is where the concept successfully a candidate’s skills redeploy them into different roles of “teachable fit” comes in. gaps can be filled. or even careers. When employers can’t find The framework is an analytical Workforce entrants. The candidates with the full range tool that maps the capabilities underemployed and under- of skills needed for particular needed for a given role against an skilled are another potential pool, positions, they can recruit individual’s likelihood of meeting especially as local governmental candidates who possess those needs. The capabilities are agencies and others move to adjacent skills with an eye divided into four groups: help them with training and toward filling the gaps in their Navigating the Changing World of Work 10
  12. 12. Teachable Fit Knowledge of business skills) and “soft” skills (e.g., toward work. These are revealed or academic disciplines or conflict resolution or strategic through both conversation industries. Formal or explicit thinking). Skills tend to be and behavior and are relatively knowledge comes through applied and pragmatic. They are difficult to shape. They are also study and is confirmed by acquired through practice and capabilities associated with academic degrees and business grow with experience. Hard skills jobs. Some jobs require more certifications. Informal or tacit can be confirmed by certification day-in-day-out initiative and self- knowledge comes through or apprenticeship. It is vital to management than others. Some experience and association with recognize the importance of soft jobs depend on continuous knowledgeable colleagues. The skills, rather than focusing only learning and adaptation. The key here is to recognize the on candidate assessments on key here is to recognize these importance of tacit knowledge the easier-to-measure hard skills. important traits when defining and the means of attaining it. the job requirements. Values and Mindset represent Skills including both “hard” skills what an individual seeks in life Personality and Intelligence (e.g., technical or administrative and on the job—one’s attitude are basic characteristics. Some 11 Navigating the Changing World of Work
  13. 13. Teachable Fit people are naturally outgoing and Is it important? How essential is research from talent and career empathetic and thus natural fits the capability to performing the management expert Right for customer service roles; others work well? The tendency may be Management (a Manpower are the opposite. Some roles rely to over-emphasize knowledge company) the key factors leading heavily on analytical intelligence, (e.g., through conventional to accelerated performance others on synthesis or creativity, academic degree requirements) aren’t top-notch technical skills others on emotional intelligence and hard skills, when in fact the or previous experience, but and many on combinations of the knowledge and skills directly such qualities as cultural fit and above. Again, the idea is to be as required by the job may be interpersonal savvy. precise as possible about what basic. Similarly, the tendency Is it teachable? To what a job or role calls for in terms of may be to under-emphasize extent and with what degree these traits. soft skills and traits when in fact of difficulty can the capability they are absolutely essential After examining the four areas be developed? Look first at the to success in the role and the of capability, the employer then available methods—courses, workplace. Employers should weighs each on two scales: mentors, opportunities to avoid this pitfall. According to Navigating the Changing World of Work 12
  14. 14. Teachable Fit practice, and so on—both inside In developing each job taxonomy As the global economy and outside the organization. for “teachable fit,” the idea is not continues to improve, today’s Don’t assume that because to generalize capabilities or lower talent mismatch will become a capability is theoretically standards. Rather, it’s to be more pronounced. Employers teachable, an organization is more detailed and specific about must recognize that the talent equipped to teach it. A staff may the pragmatic requirements of imbalance is not something be experienced, but the question the job, and more focused on they can fix one position and is whether they are willing and the gaps that can be filled. This one well-qualified candidate able to double as instructors. approach can help determine at a time. The “teachable Carefully consider the time and what capabilities really matter fit” framework is a key step cost needed to develop the for success. By dissecting job in an approach that is more capability. If either is prohibitive, roles, employers can identify the expansive, systematic and then for practical purposes the skills that can migrate across sustainable—a talent strategy capability is not teachable. industries or be developed with that not only keeps up relative ease. with business strategy, but accelerates it. 13 Navigating the Changing World of Work
  15. 15. Teachable Fit Teachable Fit Capabilities Important? Teachable? 1 (low) - 5 (high) 1 (low) - 5 (high) Framework Academic/Professional Discipline Knowledge Business or academic disciplines Industry/Function/Process Technical Problem-Solving Skills Fixed Demonstrated aptitudes and practices, both Communication “hard” and “soft” Planning/Organization Collaboration/Teamwork Flexible Self-Management/Autonomy Values & Mindset Attitudes that people bring to jobs and jobs Initiative need in people Motivation to Learn Service Orientation Personality & Intelligence Analytical Basic character and mental traits Capacity to Learn Navigating the Changing World of Work 14
  16. 16. The Borderless Workforce Today’s global workforce is on those who wish to return. Work the move as never before. Most is moving too, as businesses set Propelling the movement employers and governments, up operations near new markets however, are a long way from and sources of supply. of talent around the fully understanding the complex Propelling the movement of world are widespread issue of talent mobility and talent around the world are its growing role in the talent widespread demographic demographic changes shortages that are affecting changes—in particular the today’s global labor markets. – in particular the big big gap in population growth The complexities are many. between developed and gap in population growth These are not the one-time, developing countries. According one-way migrations of to the United Nations, the between developed and yesteryear. Talent goes where world’s population is expected developing countries. talent is needed, and flights to increase by 2.6 billion over the home are readily available for next 40 years, and almost all of 15 Navigating the Changing World of Work
  17. 17. The Borderless Workforce that growth will take place in the customer facing staff become Employers Concerned About less developed regions. more proficient in the world’s most Losing National Talent prevalent business language. Other factors are also accelerating the movement So how should employers Don’t Know of workers. As a general rule, respond to the forces of talent 15% globalization creates further mobility? Many see it as an globalization: more people are opportunity to cut labor costs No Yes 54% exposed to communications and elevate their skills mix. 31% about foreign cultures and more Others see it as a threat to their are traveling on vacation as well hold on their best talent. Of as for work. English as a second course, employers have only language is growing fast; China, limited control over the factors for example, is accelerating its that determine where workers Source: Manpower Inc., Borderless English teaching programs to work, and why. Workforce Survey, 2008 ensure that its managers and Navigating the Changing World of Work 16
  18. 18. The Borderless Workforce The Taxonomy of the Talent Migration Brain Export: Common among some developing countries that choose to educate and export talent with the intention of comparable exchange in the medium- and long-term, via remittances, technological interchange or skills enhancement. Brain Globalization: Talent mobility as a component of international commerce. Transnational organizations and globalization require international mobility. Brain Exchange: Transnational organizations engage in a comparable exchange of staff members between country operations. Brain Circulation: Skilled personnel live and work in foreign countries for a certain period of time, then return to their country of origin or travel to a new destination country. Brain Drain: When the migration of people possessing a higher education and in-demand skills exceeds that country’s ability to educate/train suitable replacements. Country of origin loses any return on its original investment in education and training. Brain Waste: When a country is unable to retain highly skilled/educated people, who then willingly travel to other destinations and perform functions that are beneath their skill level. Individuals often accept this “trade-off” for better living conditions. 17 Navigating the Changing World of Work
  19. 19. The Borderless Workforce Some employers benefit of a scope and scale they have foreigners now work (“Number from far-sighted, fact-driven not previously encountered – yet of Foreigners Working in China governments that plan national it offers them opportunities that Soars,” People’s Daily Online, talent strategies in detail and they find difficult to imagine. April 4, 2006 http://english. over the long term. Others people.com.cn/200604/04/ The increasingly mobile chafe against inward- looking eng20060404_ 255781.html). workforce has many faces. government immigration policies All sorts of workers are on the The skills mix is broad as well. that make visa applications move – Jamaican agricultural At the upper end of the skills extremely time-consuming— workers each year head to spectrum are the professionals to the point where many top Massachusetts in the U.S., and managers whose movements foreign candidates go elsewhere. Indian construction workers to form a kind of internal labor Talent mobility, then, is both the Dubai, Latvian stone workers market within multinational product and cause of an uneasy to Northern Ireland in the U.K., companies. They may also mix of unemployment and talent and British finance controllers involve short-term assignments scarcity. It presents governments to Shanghai, where 40,000 or commuting across borders. and employers with challenges Navigating the Changing World of Work 18
  20. 20. The Borderless Workforce The talent shortages, workers will generally end up in individuals. The Organisation exacerbated by soaring wages, jobs for which they are a good for Economic Co-operation and have sparked a big jump match. But where workers tend Development (OECD) argues in the movement of skilled to act on their own, they can that the temporary employment tradespeople as well. There end up in jobs for which they of foreign workers introduces also continues to be strong are significantly over-qualified. flexibility into the labor market. movement of low-skilled That mismatch between skills This can help dissuade workers. In fact, laborers and roles is one of the factors employers from resorting to the comprise the leading category contributing to a big shift that use of undocumented workers. now being filled with workers has never been so apparent So what spurs people to leave from foreign countries. before: a huge “reverse- their homes – other than the migration” movement. In the many cases where obvious issue of jobs elsewhere employers hire for specific Reverse migration, however, when there are none at home? positions – either directly or is not new and may have There are many parallels that through agencies – foreign benefits beyond those for cut across all levels of 19 Navigating the Changing World of Work
  21. 21. The Borderless Workforce demographics and skills. Clearly, up-and-comers can often take considered mandatory for money and economic growth are on more responsibility and gain those aspiring to the executive significant drivers for those less more experience and business suite. In the past few years, the skilled, and both physical and skills more rapidly in a foreign percentage of S&P 500 CEOs cultural distance militate against country than they ever could with international experience them moving. at home. has increased from 26 percent to 34 percent (“The Route to For white collar workers, there In the new global economy, the Top for Today’s Enterprise can be many other factors more and more forward thinking Leader,” Spencer Stuart, 2008, moving them away from home. employers choose to send http://content.spencerstuart. Many go for the adventure, their “high potential” managers com/sswebsite/pdf/lib/ to acquire new skills, to learn overseas to gain the experience GMstudy0408.pdf). a language or improve their of other cultures and working language skills. Still others see styles. In fact, for managers in Not everyone believes that such moves as fast paths to many multinationals, a cross- talent mobility is a good thing. accelerate careers; younger border assignment is now There are the obvious factors Navigating the Changing World of Work 20
  22. 22. The Borderless Workforce of dislocation from family harnessed talent mobility as it and friends at home, cultural must now be harnessed. It is The process of alienation and prejudice in the not as simple as enhancing the new workplace. And there can current expatriate-deployment forecasting and talent often be language issues – programs or adding enticements mobility planning will sometimes even within a nation’s to relocation packages. What is borders – along with fierce needed is a holistic, far-sighted become an integral competition with other migrants strategic approach. The process and with locals who see the of forecasting and talent mobility component of the newcomers as stealing jobs. planning will become an integral business planning component of the business Talent mobility is a growing part of the solution to employers’ planning process as talent process as talent shortages worsen in the shortages of talent. But it shortages worsen in the years ahead. is arguable whether even the best multinationals have years ahead. 21 Navigating the Changing World of Work
  23. 23. The Borderless Workforce Navigating the Changing World of Work 22
  24. 24. Individual 23 Navigating the Changing World of Work
  25. 25. Choice Individual Choice is eliminating the one-size-fits-all approach and elevating the need for one-size-fits-one. Individuals are exercising the power of choice in all situations, choosing for and against opportunities. The increased specificity of skills that employers are seeking, coupled with the increased confidence in choice that individuals are exercising, is profoundly impacting governments, organizations and individuals worldwide. Navigating the Changing World of Work 24
  26. 26. The Underleveraged Solution In the developed Due to the indisputable fact should look to one particular that the working-age population demographic group that is world, meanwhile, the is shrinking, the global talent woefully underrepresented in the squeeze will only get tighter, formal economy and has much population is aging and especially after we fully emerge more to contribute: women. the number of young from the current financial It is clear the world of work is crisis. The recession doesn’t undergoing a transformation. people entering the mitigate matters over the long As the service sector continues term. Even now, positions at workforce is shrinking. all levels continue to go unfilled its ascent, the need for workers is great and growing—even There simply will not be in such service-sector fields as now. Economists say the engineering, IT and healthcare. number of service-sector jobs enough qualified workers To address the problem, will grow by at least 500 million governments and enterprises to fill the jobs that will must figure out how to expand between 2004 and 2015. In the developed world, meanwhile, drive growth. their workforces. To do that, they 25 Navigating the Changing World of Work
  27. 27. The Underleveraged Solution the population is aging and their working-age population – cultural and therefore difficult to the number of young people was 49.1 percent for women in address at the policy level. But entering the workforce is 2007 compared to 74.3 percent many are structural—vestiges shrinking. There simply will not for men. The contemporary of an age when the five-day, be enough qualified workers to world of work sorely needs 40-hour week was the norm. fill the jobs that will drive growth. women to participate in higher That model is impractical for numbers and appears to offer many women who bear primary The solution is to expand greater potential for the kind of responsibility for childcare the labor pool. In 2008, flexibility that women so often and other family obligations. the International Labour need. Yet all too often women Companies and countries that Organization (ILO) found can’t, or won’t, participate. evolve quickly to bring women that at the global level, the into the workforce today give employment-to-population The benefits of women themselves a better chance ratio – an index to how well participating in the workforce to prosper over the long term. economies are taking advantage are striking, but there are many Those that don’t will struggle to of the productive potential of barriers. Some of the barriers are stay competitive. Navigating the Changing World of Work 26
  28. 28. The Underleveraged Solution Getting women into the Policies that support the rights workforce is vital, but it’s just as of women and allow them to important to keep them there. develop professionally while A paradigm shift is in order. balancing work and home duties We must value results and will reward organizations with A paradigm shift is in knowledge gained rather than higher employee engagement time spent in the office. Paths and retention levels. order. We must value toward advancement must be created for women—and results and knowledge others—who do not sit in an gained rather than time office five days a week, eight hours a day, so that they can spent in the office. achieve success at a pace that works for them. 27 Navigating the Changing World of Work
  29. 29. The Underleveraged Solution Navigating the Changing World of Work 28
  30. 30. The New Agenda for an Aging Workforce The challenge presented What percentage of your shortages and brain drain that workforce is planning to retire are clearly emerging. by an aging workforce in the next five to 10 years The challenge presented and what impact will it have and pervasive talent on your organization? This is by an aging workforce and pervasive talent shortages is shortages is complex a key question that should be complex and multi-faceted, on the agenda for discussion which is why employers are still and multi-faceted, which at management meetings struggling to determine how worldwide, as talent shortages is why employers are still worsen and replacements for best to plan ahead and gain a strategic advantage; it is not struggling to determine those exiting the workforce just a question of how to get become more difficult to find. older workers to remain relevant how best to plan ahead But, even armed with this and continue contributing to knowledge, few employers are and gain a strategic finding any long-term solutions the workforce; it is also about how to get the most out of the advantage. to prevent the obvious talent 29 Navigating the Changing World of Work
  31. 31. The New Agenda for an Aging Workforce younger generations, whose the same time, the organization that they do not yet understand numbers are too small to fully will need to identify and develop how to do so effectively. replace those who have gone high-potential employees Employers have done much in before them, and how to do this to replace those exiting due recent years to provide better in a way that is consistent with to retirement. This cycle of worklife balance for working the company’s culture. demographic forecasting and parents; they have not yet workforce planning will become gained a full understanding of Strategic plans to attract critical an integral component of the what work-life balance means to talent to the organization and business planning process as the older worker. retain the near-retirement talent shortages worsen. population in key roles will become a key focus at this One of the key reasons that point, as it is now clear where employers are not doing more the organization should be to try and recruit or retain older dedicating resources to ensure workers as part of their talent a steady supply of key talent. At management strategy is simply Navigating the Changing World of Work 30
  32. 32. The New Agenda for an Aging Workforce The key to engagement of the Having a clear understanding building activities and informal older adult in the workforce is of what is expected: Don’t communication channels. to focus on the same issues assume that an older employee Being treated equally and with that are important to other knows what is expected of respect: Disparate behavior age groups: her just because of her tenure. toward older workers can New management and a rapidly Performance-based happen in subtle ways such as changing business world can compensation: Sending a clear planning team-building activities leave an older worker uncertain message about the value of the that the older worker cannot of her priorities; just as it can her individual rather than just paying relate to, or giving all of the new younger peer. more due to job tenure allows learning opportunities to the the older worker to know how Having a sense of belonging: younger members of the team. he is performing compared to As the demographic composition Supervisors need to be vigilant in his peers. of work groups evolves, care recognizing the diversity of their should be taken to ensure team and making decisions that everyone is included in team- provide equal treatment. 31 Navigating the Changing World of Work
  33. 33. The New Agenda for an Aging Workforce Access to tools, resources, Open and honest two-way due to changing priorities in her information and training: As feedback: Often, the older life. As a result, the supervisor with all other employees, the worker whose skills have faded misses the opportunity to retain older worker needs the same is unaware that she is falling the employee in a modified role level of tools, resources and behind because supervisors and and instead, loses her to information to perform effectively peers do not want to hurt her retirement prematurely. in her role. Further, it should feelings. This is a disservice to Strong teamwork: As with all not be assumed that because the individual, who continues to employees, a strong sense of an individual is older and require honest feedback in order teamwork results in greater quite capable she is no longer to address performance issues productivity for the team interested in receiving training. adequately. Conversely, if the members. This remains true Companies that create a older worker does not have a throughout an individual’s career, culture of continuous learning two-way communication channel regardless of his full-time or part- for all employees will be the with her supervisor, she may feel time status. most successful in engaging unable to express her wishes their workforces. to adjust her work relationship Navigating the Changing World of Work 32
  34. 34. The New Agenda for an Aging Workforce Recognition: It is never a their careers. It is a mistake to that includes talent pools that mistake to recognize a job well assume that an individual is are currently under-represented done. The need to provide “coasting to retirement.” in today’s workforce. recognition of employees across Understanding how the role all age groups and levels is often contributes to the success overlooked by management, of the business: As business especially during the extremely continues to evolve, it remains busy periods when recognition important for all employees to matters most. have a clear understanding of Opportunities for career how they are contributing to the advancement: Career company’s overall goals. development and advancement A sustainable and growing opportunities should remain economy will not be possible in available to all employees the talent-poor future without a throughout the duration of strong and vibrant labor market 33 Navigating the Changing World of Work
  35. 35. The New Agenda for an Aging Workforce The Multi-Generational Workforce Traditionalist Boomer Generation X Generation Y Born 1928–1945 Born 1946–1964 Born 1965–1979 Born 1980– Each generation has different Regardless of generation, Organizations need to adopt assumptions, motivations and individuals need to think more flexible mindsets, adjust expectations about work and about the choices they work arrangements and makes different choices when make, as they are choosing people practices to recruit, it comes to where, when and against one thing when opting retain and leverage the multi- how they work. for another. generational workforce to win. Navigating the Changing World of Work 34
  36. 36. Rise of 35 Navigating the Changing World of Work
  37. 37. Customer Sophistication Customers’ expectations around price and value will rise, shifting the key competitive differentiator from a company’s access to capital to access to talent. Customers have more access to information, experts and lower cost channels which increases visibility and subsequent pressure on companies to deliver value. Employers have become more sophisticated in assessing their workforce and are looking for specific skills that enable their companies to do more with less to meet ever-rising consumer needs. Navigating the Changing World of Work 36
  38. 38. Rules of Engagement The recent economic crisis workforces while keeping fixed has changed the employment costs low—doing more with less. As the recession landscape forever. Employers As the recession recedes, have learned hard lessons recedes, employers will about the need to transform employers will rely more and more on external talent or rely more and their talent-acquisition strategies contingent workers—whether in the face of growing global they are temporary employees, more on external talent competition. Now, as the contractors, outsourced workers business environment begins or contingent workers to improve, employers must be or consultants—to achieve business goals in a more to achieve business poised to respond quickly to a strategic, flexible way. A full 14 rapidly changing marketplace percent of employers across the goals in a more strategic, and growing disconnect globe now turn to contingent between where labor is needed flexible way. and where it is available. That employees to try out candidates prior to hiring for permanent means developing more flexible 37 Navigating the Changing World of Work
  39. 39. Rules of Engagement positions, to provide longer-term no means a given. The key a repeat assignment, and more flexibility, to quickly find talented to maximizing contingent willing to accept a permanent people possessing specialized workers’ ultimate value, and for position at the company should skills, and to outsource non-core retaining the best individuals, one become available. Perhaps business functions. Demand is engagement—the degree to most important to the pending for specialist contractors and which workers are committed to recovery, engaged workers outsourced workers will rise, the company and its business improve the bottom line. especially in knowledge-driven goals and overall strategy. Still, far too many companies areas where technology allows Study after study has shown struggle to engage their talented people to work from that workers who stay engaged contingent workforce, primarily anywhere in the world. are more productive and because they treat them as Contingent workers can indeed more likely to recommend outsiders. More than a quarter improve a company’s talent level, the workplace to others. And of employers worldwide, for strategic options and productivity. engaged contingent workers are instance, do not expose their Yet their contributions are by more likely to stay or to accept contingent employees to the Navigating the Changing World of Work 38
  40. 40. Rules of Engagement same induction and assimilation processes as their permanent Levels of Engagement employees receive, a key cause Temporary employees performing generalist tasks are typically the least engaged. of lower engagement levels. This Their efforts are not as clearly linked to overall performance, and they are less likely to is the case despite contingent be made to feel part of the team. To engage them, they must be treated with respect, workers wanting to be engaged and made to understand clearly how their job contributes to the organization’s goals. and to feel that they are part of Contractors, who most often have specialized niche skills, often feel a lack of engagement unless their performance is linked clearly to the company’s. Promoting the host organization and are their engagement involves making sure they have the tools they need to do their jobs, making a real contribution. and are given honest feedback on their performance. Outsourced workers, especially those hired directly by the outsourcing firm, often feel Companies can do much to help strongly engaged, but workers who have been transferred from the host company to boost the engagement of their the outsourcing firm may not. In both cases, maintaining their sense of belonging is key, as is making sure they receive recognition for the work they do. contingent workers. Consider Consultants typically feel more loyal to their own organizations, yet that can contribute these three approaches: to a sense of engagement with the host organization, as the work they do is typically the most directly connected with the host’s performance. The more that connection Segment the contingent can be established, the more engaged and productive they will be. workforce. Organizations 39 Navigating the Changing World of Work
  41. 41. Rules of Engagement should develop customized, employees, an ongoing program contingent labor as aggressively flexible strategies to accommodate to improve the skills—and thus the as they compete for permanent different segments of the value—of contingent workers will staff. In such an atmosphere, contingent workforce, just as they ultimately help the host organization more and more workers of all would with permanent employees. meet its business objectives. By ages are likely to find the flexibility demonstrating the willingness to of contingent work more suited Make them part of the team. develop talent across all employee to their lifestyle needs—whether Successfully engaging contingent segments, companies can not only that work is performed onsite for workers rests largely on integrating build their capabilities but also their a client or virtually. If companies them fully into the workplace, and employer brand, and thus attract can develop the management keeping them integrated. Loyalty and retain top talent in the future. processes required to keep their matters and making contingent contingent workforce truly engaged workers feel like outsiders is no As the supply of talent continues and harness their potential, they way to promote it. to dwindle due to demographic have a real opportunity to create a shifts and globalization, employers Don’t ignore career development. workforce designed to meet their will find themselves competing for Even though they are not permanent strategic business goals. Navigating the Changing World of Work 40
  42. 42. Technological 41 Navigating the Changing World of Work
  43. 43. Revolutions Technological revolutions facilitate new ways of working. Rapidly changing technology and greater global arbitrage increases individuals’ and organizations’ choice of where, when and how work is performed, and with whom. Navigating the Changing World of Work 42
  44. 44. Social Networks vs. Management? Companies have often played everywhere, including in the catch-up in understanding how workplace. That’s what has to harness new technologies business leaders worried. What In the case of social without over-managing them. are their concerns and how The latest technology innovation realistic are they? networking, the benefits to hit the workplace is social Productivity loss. As social are real, as social media—Facebook, LinkedIn, networking increases in Twitter, Ning, Plaxo, Hi5 and networks are evolving popularity, employees, especially Second Life—that let individuals younger ones, will blur the connect, communicate into commercial distinction between the work and share information with use of social media and personal networks—a means of revolutionary ease and power. use, redefining the very meaning conducting business. The growth of these social of work. Employers must get networks has been staggering, ahead of this curve, finding ways and people are using them to use social media itself to help 43 Navigating the Changing World of Work
  45. 45. Social Networks vs. Management? employees achieve the of employers worldwide say their occasional high-profile incident, proper balance. reputation has been damaged at the potential for damage to a some point by employees using company’s reputation may be Reputation. A Manpower social networking. Despite the lower than many believe. survey shows just four percent Technology has long transformed the way we work WWW BlackBerry® Photocopier International Fax PC Standard Cell Phone Laptop Online Social Pocket Calculator Computer Wi Fi Networks 1960 1970 1980 1990 2000 Navigating the Changing World of Work 44
  46. 46. Social Networks vs. Management? Does your organization have a formal policy Security. A persistent danger Corporate governance regarding employee use of external social networks such as Facebook and Twitter? inherent in the use of social processes, however, should Global networking sites involves the not limit the creative and Yes 20% risk of outside intrusions into value-adding activities of No 75% company IT networks. Such employees; rather, they should Unsure 5% attacks can mean the loss of develop an atmosphere and Americas sensitive data, as well as IT promote a corporate culture Yes 29% No 69% service disruptions. Network that encourages such efforts. Unsure 2% security software can certainly Corporate leaders need to Asia Pacific help mitigate these risks by look for ways to harness the Yes 25% blocking access to certain popularity and business value of No 61% sites. Organizations should also social media in order to boost Unsure 14% develop and enforce formal organizational performance and EMEA Yes 11% guidelines on the use and abuse further corporate goals. No 87% of social networking. Unsure 2% 45 Navigating the Changing World of Work
  47. 47. Social Networks vs. Management? Twitter, Facebook and other This kind of organizational working. In turn, the adjustment platforms have already proved change requires careful planning often led to a new understanding themselves to be a real boon and management. Leaders must of the meaning of work itself. to business. Fifty-four percent understand how social media In the case of social networking, of Fortune 100 companies can help their organization and these benefits are real, as use Twitter to connect with should look to their employees social networks are evolving customers, and 29 percent have for ideas. Equally, given the into commercial networks—a a fan page on Facebook. And community-based nature of means of conducting business. respondents to the Manpower social media, it is important to Only by creatively channeling its survey cited “brand building” empower employees to help use, however, will organizations as the most promising use of lead the evolution—an ongoing succeed in reaping those social media. But we’re only just process to be sure. Every benefits for sustained beginning to understand how technological change has led to competitive advantage. they can be leveraged, so it’s an accompanying, often slower, vital to keep an open mind. cultural change as companies adjusted to a new way of Navigating the Changing World of Work 46
  48. 48. Implications to "The winners in the changing world of work will be the companies that master the art of leading a multi-generational workforce and aligning a dynamic mix of permanent and contingent workers to optimize their performance, increasing their flexibility and accelerating the execution of their strategy, building talent capabilities, keeping fixed costs low and doing more with less." Jeff Joerres, Chairman and CEO 47 Navigating the Changing World of Work
  49. 49. the World of Work Driving Structural Changes—How do the trends impact. . .? Work Models • Managing a diverse and virtual workforce • Injecting flexibility in workforce mix: contingent and permanent • Leveraging technology for efficiency, productivity and innovation • Developing solutions to the market faster, more agile, differentiated, global People Practices • Nimble and contemporary leadership • Connecting and collaborating colleagues • Embracing transparency and unfiltered communications Talent Sources • Agile talent strategies to attract, select, train and reskill in new ways • Reach undertapped and untapped talent pools: Consider talent migration, leverage women, engage older workers and develop younger workers • Find the “Teachable Fit” Navigating the Changing World of Work 48
  50. 50. Manpower Inc. Research • The Borderless Workforce • The New Agenda for the Older Workforce • Rules of Engagement: Harnessing the Potential of the Contingent Workforce • Social Networks vs. Management? Harness the Power of Social Media • Teachable Fit: A New Approach for Easing the Talent Mismatch • The Underworked Solution: Women and the Talent Crunch To obtain full copies of the Manpower research included in this booklet, please visit Manpower at http://www.manpower.com/ResearchCenter. 49 Navigating the Changing World of Work
  51. 51. About Manpower Inc. Manpower Inc. (NYSE: MAN) is a 400,000 clients per year, including in the staffing industry for the world leader in innovative workforce small and medium size enterprises eighth consecutive year. In the solutions; creating and delivering in all industry sectors, as well as same year, it was also named to services that enable its clients to the world’s largest multinational the FTSE4Good Index Series, for win in the changing world of work. corporations. The focus of companies that meet criteria in With over 60 years of experience, Manpower’s work is on raising conducting socially responsible the $16 billion company offers a productivity through improved business practices globally. In range of solutions and services quality, efficiency and cost-reduction 2009, Manpower was recognized for the entire employment and across their total workforce, as one of America’s Greenest Big business cycle including permanent, enabling clients to concentrate Companies by Newsweek magazine temporary and contract recruitment; on their core business activities. and was named to the Dow Jones employee assessment and Manpower Inc. operates under Sustainability Index for the second selection; training; outplacement; five brands: Manpower, Manpower consecutive year. outsourcing and consulting. Professional, Elan, Jefferson Wells and Right Management. More information on Manpower is Manpower’s worldwide network available at www.manpower.com. of nearly 4,000 offices in 82 In 2010, Manpower was named countries and territories enables to Fortune magazine’s list of the the company to meet the needs of World’s Most Admired Companies Navigating the Changing World of Work 50
  52. 52. Manpower Inc. World Headquarters 100 Manpower Place Milwaukee, WI 53212 USA www.manpower.com © 2010 Manpower Inc.

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