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How To Navigate The Human Age Manpower

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Increasing Demand for Better Skills Assessment and Match for Better Results

Increasing Demand for Better Skills Assessment and Match for Better Results


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  • 1. HOW TO NAVIGATETHE HUMAN AGEIncreasing Demand for Better Skills Assessmentand Match for Better Results HOW TO NAVIGATE THE HUMAN AGE: Increasing Demand for Better Skills Assessment and Match for Better Results 1
  • 2. 2 HOW TO NAVIGATE THE HUMAN AGE: Increasing Demand for Better Skills Assessment and Match for Better Results ManpowerGroup’s role as a navigator and innovative For the first time in its history, ManpowerGroup is workforce solutions provider in the fast-changing now publishing its most recent analysis of the Future world of work was affirmed in 2011 at the World Forces evolving the Human Age – and aligning these Economic Forum Annual Meeting in Davos, forces with the right people strategies. Switzerland when ManpowerGroup CEO Jeff Joerres identified that the world had entered the Human Age. The Human Age evolved quickly on the heels of What enabled ManpowerGroup to thoroughly historic technological, demographic and document indicators of the Human Age? Years geopolitical shifts, rivaling the impact of other spent tracking macro-economic forces, which transformational eras such as the Bronze, Iron, culminated in ManpowerGroup’s identification of Space and Information ages – as it’s marked by critical and current world of work trends: rapid the rise of talentism. The new capitalism, talentism, technological development; shifting demographics puts unprecedented value on talent as the driver that have accelerated a talent mismatch; and rises in customer sophistication and individual choice. of business success. FUTURE FORCES Bifurcated World: the reversal growth model Human The Human Adjusting to a Dynamics: the Age: Transforming New Ecosystem: scarcity and abundance the ecosystem The Human Age inversion Riding the Wave: the continuous technology evolution Source: ManpowerGroup
  • 3. In the Human Age, companies will have to navigate THEY’RE NOT DECISIONS. KNOWcontinued growth of emerging markets, globalization, WHAT THE IMPORTANT ANDcompetition for employees – who will be pickier about RELEVANT FACTS ARE THAT YOU ”potential employers – and the usage of increasingly NEED TO LOOK AT.sophisticated technologies. Firms will face shortagesof crucial skills, called a mismatch, because of the KEVIN WHEELER, FOUNDER AND CHAIRMAN, FUTURE OFlarge number of people unable to find work. Higher TALENT INSTITUTEunemployment rates than in previous eras are likely tobe a fixture of the Human Age. ManpowerGroup has framed the impact of continually shifting economic and geopoliticalIn addition, these organizations need to address tectonic plates. But extensive change thatheightened access to information and rising transformed the world in 2011 is triggeringexpectations for companies to be more socially additional profound change in 2012. Bankingresponsible. Combined, these factors necessitate missteps and a debt crisis in Europe upendedproactive, innovative and flexible workforce long-standing leadership coalitions in Greece andmanagement strategies. Italy, and threatened the future of the Euro as a shared currency. The Arab Spring, spurred andIn a series of research papers, based partly on nourished by the rising influence of social media,interviews with leading human resources experts, toppled Libya’s dictator of more than threeManpowerGroup prescribes a one-size-fits-one decades and placed other regimes, most notablymodel to employee recruitment and development. Syria, in the headlines. Unrest even extended intoCompanies need to listen more carefully to Russia where December saw massive crowdsworkers in fashioning terms of employment – stage government protests. At the root of theseincluding not only where and when someone movements was dissatisfaction over the economy,works but how they might advance their careers particularly among younger generations troubledthrough development programs, “stretch” by uncertain job prospects. They represent a hugeassignments and promotions. ManpowerGroup piece of today’s unemployed. And despite surgingalso recommends heightening collaboration unemployment figures, the world’s talent shortagebetween companies, companies and government persists, as employers refine and upscale skillsand educational institutions, and between requirements to ensure that they create acompanies and individuals to solve complex talent workplace that inspires constant innovationshortages and mismatches. against demands for productivity.ManpowerGroup suggests freer sharing of The last quarter of 2011 saw hopeful signs in theinformation and striking the right balance in U.S. economy, most notably an improved jobpermanent to contract workers. The right temporary outlook and increases in housing starts andto permanent mix allows organizations to inject consumer confidence. In December, a poll ofneeded skills in a faster, less costly manner. Such three dozen leading economists by thespeed enables companies to anticipate the more Associated Press projected faster U.S. economicrapidly changing conditions of the Human Age. growth in 2012 – provided Europe’s problems“ don’t escalate into a global crisis. Yet the 8.5 IT’S REALLY IMPORTANT TO percent U.S. unemployment rate, nearly double UNDERSTAND THAT FACTS AND the figure from the millennium, overshadowed DATA ARE JUST FACTS AND DATA. these small gains and created a nagging HOW TO NAVIGATE THE HUMAN AGE: Increasing Demand for Better Skills Assessment and Match for Better Results 3
  • 4. 4 HOW TO NAVIGATE THE HUMAN AGE: 1 2 Increasing Demand for Better Skills Assessment and Match for Better Results HAPTER CHAPTER uncertainty. Many Americans no longer felt as “The number of disrupting and transformational secure in their careers or the ability of the country COUNTRY AND REGIONAL PERSPECTIVES shaking the world seems toto political events to guarantee their way of life. Joblessness, debt ranging from natural catastrophes be growing, and the prospects for a stronger recovery beyond upheaval, from social unrest to economic and the sluggish 1-2 percent GDP of the first three financial uncertainties,” Joerres says. “These new quarters of 2011 will assume center stage in what challenges and risks are connected, if not in their is expected to be a hotly contested U.S. cause, than certainly in their effect.” presidential election later now two years into its recovery. From The global economy is this year. regions where credit is reaccelerating and signs of the outset, it was expected to be a multispeed recovery—the overheating are emerging. Meanwhile, the economies The world is a much different place than it was In the Asia-Pacific region, China’s economic that the April 2009 World Economic Outlook projected at the center of the recent crisis, the United States engine rumbled along, albeit withthe fastest bymicro- economies that would be growing the first 2011 were and Europe, haveago, as extensive change ese one year substantial excess capacity. Th unfolded quickly those that had avoided large precrisis imbalances, had seen divergences have important implications for This more fact- at the dawn of the Human Age. the 1 2 signs of trouble. The whopping 10.4 percent the smallest output collapses during the crisis, and had the outlook, risks, connected universe each region.events in dense, and policy priorities in has sent growth in 2010 dropped a percentage point Two years Therefore, this chapter highlights the extent to which CHAPTER most room for policy maneuvering after the crisis. motion that previously would have taken years to through September 2011. Moreover, withthe contours later, that picture is broadly unchanged, but its aging regions differ in their cyclical positions. population, the country faces a looming skillsCOUNTRY ANDare large disparities in some Similarly, there REGIONAL PERSPECTIVES of the recovery are clearer (Figure 2.1). Some advanced unfold. Themes that evolved most clearly in 2011 will gap. economies have significant output gaps and elevated Who will replace these workers over the next two economies’ external positions. Past workforce management in have a major impact on issues of the World unemployment rates; many low-income countries are grow- Economic Outlook have stressed beyond.for exter- to months ahead – and the need Read on decades? Japan but sustainable rates; and there are signs of wrestled with the aftermath of ing at rapid nal rebalancing in some regions—most notably the its catastrophic tsunami, which disrupted economies. understand how to address challenges stemming overheating in a number of emerging market The global economy is now emerging Asia—to reduce global United States and two years into its recovery. From regions where credit is manufacturing and supply chains and left the outset, it wasfrom these latest multispeed recovery—the that the vulnerabilities. Thto chapter revisits this topicEmployers overheating are emergi expected is be a developments. to April 2009 World Economic Outlook projected that the at the center of the rec country re-thinking its atomic energy future.economies that would be growing the extent toby 2011 will ensureand Europe, have subs Plus, highlight, where relevant, successfully respondfastest which regions the to these tests were their The uneven nature of this recovery can be seen that had avoided large precrisis imbalances, had seen those in diverge in their external (current account balance) its population is aging quickly. future and competitive advantage. divergences have impo the output gaps across regions (Figure 2.2).the smallest positions.collapses during the crisis, and had the Emerging output outlook, risks, and pol most room for policy maneuvering after the crisis. Two years Therefore, this chapter Asia and much of Latin America are now operating The chapter begins by assessing the outlook and key later, that picture is broadly unchanged, but the contours regions differ in their c close to potential, and there are economies of theserecovery are clearer (Figure 2.1). Some advanced in the policy challenges in the regions where large output Similarly, there are l economies have significant output gaps and elevated economies’ external po unemployment rates; many low-income countries are grow- Economic Outlook have GLOBAL AVERAGE Figure 2.1. Global Average Projected GDP GROWTH ing at rapid but sustainable rates; and there are signs of Real GDP Growth during 2011–12 emerging market economies. overheating in a number of nal rebalancing in som United States and eme (Percent) vulnerabilities. This ch PROJECTED 2011-2012 % highlight, where releva The uneven nature of this recovery can be seen in diverge in their externa the output gaps across regions (Figure 2.2). Emerging positions. Asia and much of Latin America are now operating The chapter begins b close to potential, and there are economies in these policy challenges in the Figure 2.1. Global Average Projected Real GDP Growth during 2011–12 (Percent) Below 0 Between 0 and 2 Between 2 and 4 Below 0 Above 4 Between 0 and 2 Insufficient data Between 2 and 4 Above 4 Insufficient data Source: IMF staff estimates. Note: Projections are not provided for Libya due to the uncertain politicalIMF staff estimates. Source: situation. Source: IMF staff estimates Note: Projections are not provided for Libya due to the uncertain political situation. International Monetary Fund | April 2011 59
  • 5. A B I F U R C AT E D W O R L D practices they say give emerging markets an unfair competitive advantage. Their governmentsWith a few fits and starts, emerging markets must answer increasingly to popular resentmentcontinued their strong performances, while more over the waves of jobs that have moved overseasestablished economies declined in market share or have been filled by better trained immigrants.and influence. In 2011, India’s GDP rose morethan 7 percent and Brazil’s above 6 percent. U.S., A result of this growing tension is a rising sense ofUK and Japan GDP growth rates floundered at protectionism over skilled talent. Identifying,about 2 percent or less. Separately, a study by the managing and re-strategizing roles for in-demandresearch groups Moody’s Analytics and McKinsey talent is now a top priority among CEOs. YetGlobal Institute found that U.S. companies would companies need to collaborate with governmentshave to create 21 million jobs over the next eight to fulfill this goal. In a recent PwC study, a majorityyears to return the country’s unemployment rate of CEO respondents determined that creating andto 5 percent. Many of these jobs will require fostering a skilled workforce is a commitment topreparation that current educational and be shared with governments, in order to achievevocational systems are not equipped to provide. public outcomes.China’s $2.85 trillion in reserves are nearly double At the same time, the accumulation of wealth hasthe total reserves of Spain, Portugal, Italy and Ireland fostered deep divides within populations both incombined. The Economist predicts that the emerging and established markets. The rich cancountry’s purchasing power parity by the end of afford not only a more comfortable lifestyle, but2012 will equal the U.S.’s. According to the the education to maintain their status. ThisInternational Monetary Fund, the country accounts frustrates the poor who, with rare exceptions, lackfor 40 percent of the world’s use of base metals, resources needed to improve their lot. Thesetestimony to the power of its manufacturing sector. self-perpetuating cycles kindled Middle East angst and unsettled population groups throughoutA study by the bank HSBC predicts that by the Europe, the U.S., the Far East and Latin America.end of this decade emerging markets’contributions to world economic growth will The educational divide itself has also intensifiedalmost double those from established markets. the skills mismatch. In ManpowerGroup’s 2011(Four decades ago, established markets’ Talent Shortage Survey, one-third of more thancontributions approximately tripled those of 36,000 companies worldwide said they wereemerging markets.) The markets’ contributions struggling to fill positions. The mismatches haveare roughly even now. Moreover, the younger hit countries with a double-whammy, hamstringingpopulations of many emerging markets – among businesses while exacerbating tensions betweenthem India, Brazil and Vietnam – are an advantage the employed and unemployable.over more established economies. Thesecountries have also developed faster-growing THE SCARCITY ANDdomestic markets fueled largely by increases in ABUNDANCEdiscretionary income. INVERSIONThe shifting balance in world economic power has In the Human Age, resources that were oncesparked tensions between and within countries plentiful are now limited, while others that wereand organizations. Fading powers now look limited are no longer so. Such reversals stemenviously at foreign upstarts and question labor partly from the Great Recession of 2008 and a HOW TO NAVIGATE THE HUMAN AGE: Increasing Demand for Better Skills Assessment and Match for Better Results 5
  • 6. 6 HOW TO NAVIGATE THE HUMAN AGE: Increasing Demand for Better Skills Assessment and Match for Better Results GLOBAL SCENARIOS 2010-2020, A BUMPY RIDE IN A MULTI-SPEED WORLD? Developed World Economically Strong (US, Eurozone, UK, Japan) Series of significant global financial crisis centers in Global economic rebalancing continues on track but emerging markets without major financial crisis Social and political tensions increase and boil over in World GDP resumes growth track of 1990s through several emerging market nations creating instability 2007 with rapid growth in absolute levels of GDP and and movement away from market economy and per capita GDP growth througout most of the world democracy Developed world deleverages and addresses fiscal Commodoties demand/supply in rough balance imbalances through growth and sound economic policies Global economic rebalancing largely stalls out Competition for commodities intensifies (oil, water, Developed world, and particularly US, continue to be food issues at center of cross national conflicts) most important economic player Developed world savings and foreign direct investment sufficient to rebalance trade and capital flows with emerging markets Emeriging market consumption and investment become engine of world economic growth Big Emerging Big Emerging Markets Very Markets Strong Strong (China, to Moderate India Brazil) Series of significant global financial crises take place Series of significant global financial crises centered in developed economies Developed world remains overindebted and emerging markets lack sufficient domestic investment and Global rebalancing accelerates with India and China consumption to sustain economic growth combined economies passing size of US economy by 2020 at current exchange rates World economy stagnates with per capita income in developed world declining and flattening out in Commodity demand/supply in rough balance emerging world Developed world forced by market pressure to Social and political tensions increase and boil over in reduce fiscal deficits, to deleverage and to reduce several nations creating instabilities. Movement away trade imbalances from market economy and democracy Social and political tensions increase and boil over in Prospects for Europe and Japan dismal in 2020s several developed world nations creating instability due to aging of population and inability to liberalize and movement away from market economy and immigration and domestic labor market democracy Commodity glut Increase in emerging market military power and reduction in relative power of developed world nations Prospects for US merely poor in 2020s since its (particularly US) creates conditions for major military population is about 10 years younger miscalculations and misadventures Declining developed world military power creates conditions for military miscalculations and misadventures by emerging market nations Developed World Economically Weak Source: McKinsey and ManpowerGroup analysis fundamentally changed financial world. Chastened have spurred government to cut spending on by declining revenues, companies have had to social services. This dynamic has simultaneously adjust their philosophies about the use of created a scarcity and abundance inversion: fewer resources – natural, financial and human. They’ve benefits have led to increased stress among switched to smaller staffs and have been people who no longer felt protected by exceedingly cautious about adding employees at longstanding social safety nets. This comes as greater expense, or without proof that additional many populations are aging, increasing the need talent would add benefits. Cost considerations for these nets.
  • 7. The number of workers with adequate skills has per year, according to some reports. Sales ofdecreased. Among the top 10 jobs most in censors that collect data in mobile phones rosedemand in 2011 were engineers, technicians, dramatically last year.sales representatives, production operators, and In late 2011, Apple introduced its latest version ofaccounting and finance staff. The same types of its celebrated iPhone, complete with artificialprofessionals were similarly among the 10 most intelligence that allows users to send emailsneeded in 2010 and in previous years. Across without typing. The company’s iPad sales havethese professions and others exists a lack ofgeneral business skills, including communication, soared every quarter since the product’s launch inmanagement and collaborative skills. The gaps January 2010–with more than 160 percent for theare particularly acute in certain emerging countries last half of 2011. Search engines and analytical– Vietnam, among others – where education and software have grown steadily more powerful andtraining systems have not kept pace with growth accurate. It’s now common to receive multipleand the sort of business environment that breeds answers to search inquiries instead of one or two.experience is less evolved. Among the major workforce implications for companies: They can now track employees, findNearly three in 10 employers in a ManpowerGroup talented job candidates and spread their employersurvey said that lack of experience is a key barrier brand more easily. Of course, these advancesto filling vacancies. This is partially due to have made organizations more open foradvances in technology that have made some inspection. The flow of increased information is aroles obsolete while creating new, more technical two-way street.tasks everywhere from corporate offices to plantfloors. Natural resources, even food and water, The number of older people has increased andare scarcer. This has placed new burdens not will continue to grow in key economies foronly on populations and governments, but decades. By 2050 in Europe, there will be twicebusinesses to keep costs down and operate with as many people older than 65 as people youngergreater efficiency. than 15. China’s over-65 population will soon beBut information once coveted and protected like a larger than the number of U.S. citizens. Thefine wine is now copious, easily accessible via number of employees eligible for retirement in theimproved gadgetry and online services that are U.S. now outnumber teens. A Pew Researchthemselves more abundant – mobile devices, Center study predicts that over the next twotablets, search engines, social media and blogs. decades, 10,000 baby boomers will turn 65 everyAccording to a 2010 report by the day. Populations are aging in countries astelecommunications firm Ericsson, there were disparate as Germany and Japan. They are moreapproximately 5 billion mobile phone subscribers youthful in India, Vietnam and Brazil, an edge forworldwide from a world population of just under 7 those rising economic stars going forward.billion, with companies adding another 2 millionsubscribers per day. A separate report found that In the past, these older groups were considered avisits to social networking sites rose 24 percent in burden but because of progress in healthcare,2010. More recently, YouTube said that its users people are living longer healthier lives. As such,downloaded 24 hours of video per minute. The they will represent an opportunity for improvingnumber of smart phones is increasing 20 percent workforce quality. HOW TO NAVIGATE THE HUMAN AGE: Increasing Demand for Better Skills Assessment and Match for Better Results 7
  • 8. 8 HOW TO NAVIGATE THE HUMAN AGE: Increasing Demand for Better Skills Assessment and Match for Better Results Workforce diversity is hitting new heights as well. world, or times when someone cannot reach us. Companies have learned that hiring people from In the Human Age, we have become all-day different ethnic groups and cultural and ethnic networks, able to act or respond immediately to backgrounds helps them understand consumers many different situations. A business deal that and generate business in new markets. A diverse begins in Tokyo on a Monday for a global workplace requires heightened sensitivities and corporation may continue uninterruptedly for days flexibility. Management techniques in Brazil may and involve employees and consultants from not resonate in Indonesia, although they may be multiple time zones. Ideas may come from just right in France, or the reverse. One major U.S. one-time economic outposts or collaborations financial services firm that has recently expanded between people who never meet but know each overseas hired consultants to help senior other virtually. An executive who used to wait days executives communicate better with foreign to make a decision can now collect data from a employees and sent managers to these countries cloud, crunch numbers on a smart phone, and to familiarize themselves with the cultures. A solicit the opinions of his most knowledgeable whole cottage industry of consultancies has experts via software applications that allow sprouted teaching global behaviors. organizations to survey organizations in hours. TECHNOLOGY Improved, more affordable and widely used, these EVOLUTION resources themselves are adding users by the thousands every minute, round-the-clock. This paper has already touched on the prolific growth of information, a result of technological Among technologies that bear highlighting because evolution that has made the collection, sharing and they are likely to play a significant role in workforce analysis of information faster and more efficient. management and other business issues are: Devices are smaller but more powerful and multi- • eReading tablets that provide access faceted. Indeed, people use mobile phones more for to information that leads to a more data storage and exchange than telephoning. informed workforce. Previously inaccessible information is now public • So-called Near Field Communication domain, but an overwhelming availability of devices that automate major parts of the qualitative information is upping the need to curate transactional experience. This technology or categorize and optimize data more strategically. creates greater efficiency but at the loss of As a result, skills in curating and analyzing data now trump the need for search experts. jobs. Companies may help employees who Furthermore, excessive information exists on how worked in this area to develop other skills. organizations operate and their existing and • Teleconferencing and related products will potential workers – blurring the lines between allow companies to employ larger numbers personal and public space. Employers will have to of talented, virtual workers who formerly delicately balance utilizing personal data to identify would not have been attainable. The talent and unlock the potential of individuals, number of virtual workers has been rising without violating their privacy. steadily because these arrangements lead Networks that allow individuals to link together are to cost savings in travel and office space, tighter knit. There are increasingly fewer places not to mention more satisfied, productive from which we cannot connect to the rest of the employees. A 2010 report predicted that
  • 9. more than 1 billion people would soon be workplace-related questions. These tools working virtually—more than 30 percent of help companies match positions to people the global workforce. and tailor training and career planning that leads to higher worker satisfaction with its• Mobile personal platforms and applications myriad benefits. that facilitate access to information and communication will enhance recruiting, R E C O M M E N D AT I O N S employee engagement, collaboration and FOR A CHANGED productivity. Individuals can use these ECOSYSTEM global systems 24 hours. New eras require new ways of doing• BigData products and services enable business; which means strategies, processes individuals to effectively use unprecedented and leadership. quantities of information that previous systems could not process. BigData can Central to Human Age leadership is an help companies develop better understanding that companies will only fare as management strategies, particularly at well as their employees. The quality of these companies with tens of thousands of workers will depend on the execution of a strong employees and locations worldwide, and workforce management strategy – crafted and improve understanding of markets. BigData championed by senior executives. may also help companies fine-tune recruiting by enabling them to identify talent Indeed, management will set the tone for their gaps quickly and pinpoint candidates organization’s embrace of fresh thinking on globally who can fill these openings. recruiting, skills and career development, work BigData has already had tangible benefits at environment and the balance of full-, part-time consumer electronics retailer Best Buy. The employees, and outside contributors connected Minnesota US-based company created an through virtual networks. Human Age leaders must online platform for its more than 100,000 embrace conceptualizing and strategizing the employees at 1,500 locations in the U.S., practical use of data to reap maximum benefits. Canada, Mexico and China to share They will understand a business’s obligation to customer feedback and offer suggestions nurture workers, leading more on the pull side of to senior managers. The company has push-pull management, asking more questions to used this input to make decisions related to understand what their people need, instead of national marketing and in-store advertising, ruling by decree. This requires organizations to among other issues. engage people more personally to understand their needs. The Human Age leader will be able to adapt• Social Networking allows companies to to fast-changing conditions and be open to new promote their employer brand, stay in touch workforce management technologies and with potential job candidates and engage methods. The Human Age leader will be people within and outside the company to comfortable working with different cultures, even as solve specific problems. he or she ensures that the organization is operating• Gamification processes, deployed with according to a common philosophy and standards. Funware, are being used to record job The Human Age leader will promote collaboration seeker and employee reaction to a range of and appreciate the value of creativity, HOW TO NAVIGATE THE HUMAN AGE: Increasing Demand for Better Skills Assessment and Match for Better Results 9
  • 10. 10 HOW TO NAVIGATE THE HUMAN AGE: Increasing Demand for Better Skills Assessment and Match for Better Results “ WHAT WE COMMUNICATE TO OUR EMPLOYEES IS THAT YOU HAVE TO ManpowerGroup holds that major HR initiatives should drive more flexible workplace modeling, source better talent and evolve people practices OWN YOUR DEVELOPMENT. relevant in real time, which in turn solve issues YOU’VE GOT TO BE THE ONE TO brought about by the Human Age. DO MOST OF THE PULLING IN NEW WORK MODELS TERMS OF TRAINING AND DEVELOPMENT. OUR BELIEF IS Employers which are able to leverage a range of flexible work models incorporating full-time, THAT YOU’RE GOING TO GET part-time workers and remote or virtual talent with SOMEBODY TO REALLY LEARN in-demand skills, will maintain a serious advantage MORE WHEN THEY’RE THE in the Human Age. A varied structure of ONES WHO ARE PULLING IT permanent, contract and virtual employees helps VERSUS WHEN IT’S TILTED control costs and tap a greater range of skills. TOWARD THE OLD MODEL OF ” • Adopt a more “glocal” perspective. PUSH FOR MANAGEMENT. Companies will have to be more locally RICH FLOERSCH, EXECUTIVE VICE conscious even as they ensure widely PRESIDENT AND CHIEF HUMAN dispersed offices are adhering to the same RESOURCES OFFICER, MCDONALD’S overriding philosophy, processes and standards. This paper has already touched on In the Human Age, innovations in products, the importance of adapting management services and processes will provide companies practices to address cultural differences. with a competitive plus. One country’s rules and norms may The Human Age Leader will be sensitive to the contradict those of regional neighbors. importance of corporate social responsibility issues The differences – even in simple and eager to embrace partnerships with other communications—when not accounted organizations – public and private – that have an for—can lead to misunderstandings that interest in worker quality. He or she will understand hamper productivity. the value of using human resources organizations, • Collaborate with governments to build out such as ManpowerGroup, that can serve as training programs. The national governments trusted advisors and provide unique services. of India and Vietnam are examples of proactive ManpowerGroup provides workforce governments seeking to diversify the skills of their workforces by launching new nationwide management suggestions for organizations to training programs. These initiatives are often thrive in the Human Age. This year’s the result of partnerships with non- recommendations account for the past year’s governmental agencies, non-profits, educators changes and anticipate some of the events and businesses. alluded to in the previous pages. The list is longer and more finely tuned – a result of the vastly • Employ swarm and virtual work different ecosystem that has emerged since structures more freely. Swarm work refers identified last January. The stakes are higher. to groups of a few individuals to thousands Competition for talent and resources is fierce as executing small tasks as part of one project. firms seek firmer footholds in a turbulent world. The project director frequently may not know
  • 11. who is involved. Some contributors may Collaborative models are unique to every even be volunteers who are part of research corporation, even within the same industry. networks that have been established to Senior executive teams must define the advance the flow of ideas. These people type of model that will inspire the become involved because they feel collaboration they need – and the pace at passionate about a topic or organization. which they need results.  Within some Swarm work may be better equipped to companies, collaborative models follow a spur innovation because it allows firms to competitive structure in which product incorporate talent that they would formally teams brainstorm in the context of a game.  not have entered their radars. Swarm work Knowledge management sharing is a key has become more possible because of platform for generating and refining best increased virtual participation, which has practices, while social networks both allowed individuals to contribute more broaden collaborative efforts and speed frequently on their own terms. Virtual work is them into real time. This leads to cost a building block of the Human Age. savings as managers no longer have to recruit• Structure horizontal work models. These individuals on a contract or full-time basis arrangements allow companies to draw on from outside the organization. Horizontal current employees who in vertical-only, constructs have secondary benefits, nurturing management systems would have worked closer relationships across locations and only within their divisions. Horizontal divisions and enhancing an innovative spirit. frameworks erase the barriers between One example is hyper-specialization, the functional and geographic silos. Managers breaking up of a project or job across talent, can share talent freely across functions and even in remote destinations, to secure the divisions raising bar on collaboration. best talent per project or job part. 16 A NEW!"#$%"&(!#)*!+)&#",-./01"2.-34.05,6"7,0,897905" ORGANIZATION AROUND !"#$%"&(!#)*!+)&#",-./ HORIZONTAL MANAGEMENT Silos Silos ! Silos are needed for Silos are needed for !"#$%"&(!#)*!+)&#",-./ process performance process performance Silos !"#$%"&(!#)*!+)&#",-./ Talent Marketplace !"#$%&(")*$&+#",$ !"#$%&(")*$&+#",$ Silos 3 market places Knowledge Marketplace !"#$%&(")*$&+#",$ -%./#$01$(")*$&+#",$ and -%./#$01$(")*$&+#" 3 boundaries Networks Marketplace !"#$%&(")*$&+#",$ 2$&/.)*3(")*$&+#",$ 2$&/.)*3(")*$&+#" -%./#$01$(")*$&+#" 2$&/.)*3(")*$&+#" -%./#$01$(")*$&+#" ! Transversality for innovation and flexibility Transversality for innovation and flexibility!  ransversality for inn T 2$&/.)*3(")*$&+#" Source: ManpowerGroup T !  ransversality   for inn HOW TO NAVIGATE THE HUMAN AGE: Increasing Demand for Better Skills Assessment and Match for Better Results !  T ransversality 11 for inn
  • 12. 12 HOW TO NAVIGATE THE HUMAN AGE: Increasing Demand for Better Skills Assessment and Match for Better Results !"##$%"&$()*+",)#-* COLLABORATIVE APPROACHES 0&"+*1!!*$2** 3"*4&5672)528&79:*26)*;828&)*$2** 3"*5"<5&)$9:*799"($"9*$2** 3"*)9:$:79:*=)"=#)*$2** 3"*&)5"++)9,79:*5"99)5"9-*$2** 3"*>?*$2** "&*$2** 3"*"()&5"+79:*5&7-7-*$2** Source: ManpowerGroup ./*   • Use gaming techniques. Gaming permits understand that finding and keeping talent organizations to pinpoint information about will be essential to their success. Workforce candidates and employees through detailed strategies will skillfully combine technology questions. Does an individual prefer and a personal touch to recruiting, training working one or two days at home? Would and development. Strategies will wisely the worker consider moving for a position? balance permanent and temporary staff. Is this person comfortable managing other They will make use of social media and employees? Such questions help foster other online resources to find candidates discussion between employer and worldwide, to communicate regularly with employee that leads to better policies. them and learn what they are seeking in a Gaming, as a training and development work environment. They will pay close purpose, also offers huge benefits, as attention to issues that influence opinion, training concepts can be relayed through a including social responsibility initiatives and more entertaining medium to inspire the treatment of workers. They will include creativity and innovation. Companies also informal development activities, including use it to enhance recruitment practices, mentoring, and more structured Game-like evaluations are also used in programming. Workforce management in online talent sourcing forums to rate work the Human Age will require a multifaceted, being submitted as a contract bid. forward-thinking approach. Anything less risks allowing an organization to fall behind. PEOPLE PRACTICES Human Age companies are proactive. They Contemporary people practices and philosophies for don’t fall behind. They take the lead. the 21st century must be refined in terms of how • Leverage a workforce solutions companies hire, reward, engage and develop talent. company to differentiate your company • Craft more comprehensive workforce in the face of talent shortage. One-size- management strategies. Companies fits-one customized solutions are key. There
  • 13. is a frequent misconception that holds staffing sometimes in collaboration with HR. But companies responsible for job losses. development programs must now stem Instead, these organizations have a positive from ongoing dialogues between workers effect on economies by increasing labor and companies. ManpowerGroup spoke market flexibility helping companies address regularly last year about the importance of their needs quickly while providing jobs for the one-size-fits-one approaches to employee unemployed. There are added benefits for development. This becomes simpler with companies that groom contract workers for easier access to online programs targeting full-time roles and to workers who gain a variety of skills, and the greater direct valuable experience and learn new skills. involvement of senior leaders. The number of mentoring programs and informal• Assess skills more precisely and development initiatives often highlighted by comprehensively. Assessments should frequent, direct contact with executives has cover communication and other softer blossomed. These programs must continue skills, along with specific expertise. expanding for companies to cultivate their Companies that pinpoint weaknesses faster people’s potential the fullest. than their competitors can take measures more quickly to fix these shortcomings. • Cultivate Human Age leadership skills. This paper has already identified key• Balance push-pull methods of Human Age Leadership issues. Clearly, management and development. In the leadership is now more complex and past, companies relied on development by difficult than prior to its dawn. This is not command. Employees participated in simply due to the speed of change, but the training as directed by their managers, sheer number of variables that executives PUSH AND PULL APPROACHES IN TRAINING Training Training demanded by expectations individuals by companies Training that is Training that employability Training that is corporate- and serves both specific development the company requirement- related and the related individual Source: ManpowerGroup HOW TO NAVIGATE THE HUMAN AGE: Increasing Demand for Better Skills Assessment and Match for Better Results 13
  • 14. 14 HOW TO NAVIGATE THE HUMAN AGE: Increasing Demand for Better Skills Assessment and Match for Better Results face. Moreover, Human Age leaders have companies need, they can learn quickly. By less time than previous generations to make taking a more active role in schools and important decisions and more information vocational training programs, and creating to weigh. Indeed, they must manage their their own development initiatives, time and stress exceptionally. They must be organizations can make better use of this able to handle large amounts of data and age group. Germany, whose economy has ensure their organizations are providing the outpaced those of many other traditional, resources to make optimum use of industrialized nations, has already made BigData. The ability to organize data will inroads in this direction through a well- aid a company’s planning and daily established internship system. Growing operations. Leaders need to be able to older populations will also offer curate information overload and efficiently opportunities for companies to enhance and effectively distribute what’s relevant to their workforces. In the past, many their people to drive performance and companies considered these workers too results. It bears repeating that Human Age old, set in their ways, or not worth the leaders must ensure that their companies investment because they were unlikely to are being socially and environmentally work for many years. But in recent years, responsible, encouraging collaboration and companies have discovered that such innovative work arrangements, and groups are easily re-trainable. A German becoming more personally involved in initiative has focused to great success on workforce planning through mentoring and connecting companies with retirees still vital participation in development activities. enough to handle a full-time job. Older Organizations reflect the temperament and workers have a sound understanding of style of their leaders. Leaders in the Human appropriate workplace behavior, and with Age must take care to ensure they employ advances in healthcare, may have the a Human style to leadership. energy to work comfortably into their late 60s and 70s. The potential return on TA L E N T S O U R C E S investment for companies is huge. Employers can improve their workforce pipeline ManpowerGroup’s Teachable Fit model by looking at different sources of talent and illustrates how employers, lacking access to reskilling talent within their reach. talent with the skills they need, can identify existing employees and accessible • Tap overlooked and underused talent candidates with a mindset for learning and pools. The recent spikes in unemployment develop them with the right skills. have particularly afflicted younger age groups. A Guardian newspaper article in • Strategically migrate in-demand talent April 2011 reported that 40 percent of the within and across countries. Talent unemployed in the UK are between the mobility has grown worldwide. ages of 16 and 24. Such numbers have ManpowerGroup’s 2011 Borderless spurred serious, social problems. In one Workforce Survey of more than 25,000 2011 survey, unemployment was the most employers from 39 countries and territories cited reason for youths joining gangs or has found that about one quarter of rebel causes. Yet, while young people often responding employers have been seeking do not possess the experience or skills that foreign talent to solve their skills shortages.
  • 15. Companies in the U.S. were the most likely criticism and praise. A few such social to seek foreign talent. China was among media specialists target influencers, key the countries in which employers were least individuals who via their writings and likely to look externally. Importing talent is expertise can sway opinion about made possible through ManpowerGroup organizations. Followers of companies, Solutions’ Borderless Talent Offering. including job candidates, increasingly rely on social media to learn about salary,• Reevaluate how to assess, recruit, benefits and how particular managers treat develop and compensate talent in their employees. But companies can also certain markets. This will be necessary in use social media to find out more about job a more “glocalized” world where people’s candidates faster. These potential perspectives vary widely. Given increased public access to information, companies employees reveal much about their careers will be under more pressure to make fair through their postings and interactions on decisions everywhere. Techniques used in social media sites. Some companies are managing these fundamental HR functions also using outside consultancies effectively will vary among locations. in their HR-related, social media activities.• Collaborate with educational institutions and government. For decades, schools and universities set curriculum with nary a glance “ I’VE SEEN A NUMBER OF CASES WHERE A CEO ADOPTS SOMETHING LIKE TWITTER FOR at business needs. This has created the USE IN-HOUSE AND present skills gap and a general lack of understanding of proper workforce JUST STARTS PUTTING SOME comportment. Improved collaboration will MESSAGES OUT. ALL OF A produce better trained workplace candidates. SUDDEN, MOST OF THE ORGANIZATION WANTS TO BE IN• Harness BigData effectively. This will require investment in technology – home- THAT NETWORK BECAUSE THEY grown or otherwise – for analyzing the flood WANT TO HEAR THINGS FROM THE of information about potential and current HORSE’S MOUTH. WHEN employees. In the Human Age, a company THAT HAPPENS YOU SPEED UP that makes effective use of BigData will be THE CYCLE TIME OF THE able to spot skills shortages and survey huge fields of candidates who can fill the gap, or ORGANIZATION BECAUSE PEOPLE assemble tools for retraining staff. HEAR THINGS DIRECTLY, RATHER THAN THROUGH MEMOS AND ”• Develop a broad understanding of REINTERPRETATIONS. social media functions. Many companies have improved their use of social media to JAY CROSS, CEO AND CHIEF UNLEARNING OFFICER, INTERNET enhance their employer brands, which TIME ALLIANCE attracts qualified candidates. Some have assigned individuals not only to file items The companies that find the best talent, and that are informative and reflect well on the implement the right work models and people company but to monitor commentary— practices will win in the Human Age. HOW TO NAVIGATE THE HUMAN AGE: Increasing Demand for Better Skills Assessment and Match for Better Results 15
  • 16. 16 HOW TO NAVIGATE THE HUMAN AGE: Increasing Demand for Better Skills Assessment and Match for Better Results This paper describes how the world has entered have the right talent in the right place at the right an era of profound and perpetual change. The time to win. only certainty in the chaotic and complex Human The recent economic challenges have created Age is the fact that talent is now the key to competitive advantage and business success. At renewed uncertainty. Demand will be the key driver of a time when talent is increasingly scarce, and hiring going forward and companies are looking for a organizations increasingly lean, employers must faster time-to-value to capitalize on new opportunities. HOW WILL YOUR COMPANY’S WORKFORCE CHANGE OVER THE NEXT 5 YEARS? % OF RESPONDENTS (N = 2,000) More part-time, temporary, 57.8% or contract workers More telecommuting 25.5% More offshore or outsourced workers 21.5% More older workers 19.9% (aded 55+) Don’t know 16.8% Other Types of changes to the nature of work 2.9% 0% 20% 40% 60% 80% 100% Source: McKinsey Global Institute US Jobs Survey, 2011; McKinsey Global Institute Analaysis. MANPOWERGROUP’S GLOBAL NETWORK Source: ManpowerGroup
  • 17. This is causing CEOs to have a “hyperactive index For nearly a decade, ManpowerGroup hasfinger.” They can hit play, slow motion, pause or fast monitored global talent shortage trends via itsforward instantaneously when it comes to the hiring Annual Talent Shortage Survey. Despite risingactivity in their workforce, depending on the economic unemployment during the global recession,climate and their increased sophistication in their employers have continued to indicate that theyability to predict fluctuating demand. Human Age are struggling to find the talent they needorganizations are turning to “just in time” hiring, throughout that time: in 2011, over one third (34adjusting talent as they would any other resource in percent) of employers surveyed. And the problemresponse to unpredictable demand. As a result, is growing more acute. In 2010, 14 percent ofemployers are focused on incorporating flexibility, employers surveyed in the US said they wereagility, specificity and speed into their talent sourcing having trouble finding the talent they need,strategy. According to a recent McKinsey study, jumping to 52 percent in 2011, yet unemploymentnearly 60 percent of companies surveyed see in the country remains relatively high.temporary/contract workers as the largest growing ManpowerGroup was the first to identify that thispercentage of their workforce. talent shortage goes well beyond executive level,In the past, companies prioritized preserving in fact the top five jobs in demand globally in 2011business structure. Now and in the future, were technicians, sales representatives, skilledorganizations must ensure they have the most agile trades workers, engineers and laborers, and thisbusiness structure and understand which work list does not tend to deviate dramatically year-on-models they need—when they need them—to year. There is a war for talent on every front. Thisgenerate the productivity and innovation necessary conundrum of high unemployment and talentto navigate uncertainty and anticipate trends. shortage is hampering economic growth, MANPOWERGROUP’S GLOBAL NETWORK MOST LEAST 80% 67% 57% 54% 54% 53% 52% 51% 48% 46% 44% 44% 42% 42% 42% 41% 40% 36% 36% 34% 30% 29% 29% 29% 27% 27% 25% 24% 23% 22% 20% 17% 17% 15% 14% 11% 10% 9% 5% 4% Romania U.S. Argentina Turkey Switzerland New Zealand Singapore Costa Rica Canada Italy Slovenia Austria Guatemala Colombia China Hungary Czech Republic Spain Peru Norway Ireland Poland Japan India Brazil Australia Taiwan Bulgaria Hong Kong Mexico Greece Germany Belgium Panama Global Average France Netherlands Sweden UK South Africa Source: ManpowerGroup, Talent Shortage Survey, 2011 HOW TO NAVIGATE THE HUMAN AGE: Increasing Demand for Better Skills Assessment and Match for Better Results 17
  • 18. 18 HOW TO NAVIGATE THE HUMAN AGE: Increasing Demand for Better Skills Assessment and Match for Better Results JOBS MOST IN DEMAND 2011 2010 Technicians Skilled Trades Sales Representatives Sales Representatives Skilled Trades Workers Technicians Engineers Engineers Laborers Accounting & Finance Staff Management/Executives Production Operators Accounting & Finance Staff Administrative Assistants/PAs IT Staff Management/Executives Production Operators Drivers Secretaries, PAs, Administrative Laborers Assistants & Office Support Staff Source: 2011 ManpowerGroup Annual Survey on Talent Shortage challenging employers’ agility and ability to and services shift. Manpower has built a deeper respond quickly to demand. talent pool providing better time-to-value. This means Manpower helps organizations quickly tap Consider this: for example, a medium-sized into existing, underutilized or overlooked talent manufacturing organization receives an order far pools to leverage the skills they need, when they larger than their usual work. The order has great need them. margins, however, it requires an incredibly fast turnaround beyond their day-to-day abilities. However, efficiently finding the right talent in the right There is no way they can either deliver it with their place can be very challenging. With tight margins current workforce or source the talent they need and a lean organization, employers in the Human to deliver in the short timeframe. Leveraging its Age are used to doing more with less, and are expertise and in-depth knowledge of local labor increasingly demanding a greaterspecificity of skills markets, Manpower provides access to the right to meet their needs. Converging macro-economic talent, with the right skills – faster – enabling the forces and demographic shifts are making skilled manufacturing company to deliver on this order, individuals in short supply, meanwhile under-qualified and the next, and the next after that, flexing their workers remain abundant. workforce requirements up and down as required. Manpower monitors the changing requirements of With a network of branches in over 80 countries the labor market, constantly assessing and worldwide, Manpower combines global reach with developing skills to meet business demand. an in-depth understanding of the local business Through a one-size-fits-one approach to environment and talent needs. Manpower assessment, Manpower gains a deep specialists find, assess and match the right talent understanding of the potential of each candidate. accurately and rapidly, moving people in and out Manpower works with individuals to identify gaps of a business as the demand for their products in their skillset and provide training and
  • 19. AGENCY WORK PROVIDES NEEDED OPPORTUNITY FOR YOUNG PEOPLE % of young workers (<25 years) in 2009 60 TAW Employed population 47 % 40 % 40 37 % 33 % 29 % 26 % 25 % 24 % 20 16 % 13 % 10 % 11 % 9% 9% 7% 6% 0 Netherlands Switzerland Belgium Itally France Sweden Poland Germany Source: Ciett national reports, Euromonitordevelopment opportunities for them to up-skill staffing sector and the only company in theand improve their employability, providing better staffing industry to be named to Ethisphereskills and ultimately a better match and better Institute’s 2011 World’s Most Ethical Companiesresults for both employers and candidates. This list), candidates can feel good about working withcan be particularly useful for young people, who ManpowerGroup, while companies can feelcan gather valuable experience of the workplace, secure in the knowledge that the people makingdevelop and demonstrate transferable skills and up their agile and flexible workforce are properlyeven benefit from training programs through supported and treated well.flexible work. Ultimately, in a shifting, complex, chaotic andIn the Human Age, rapidly evolving technology increasingly bifurcated global environment,has unleashed a tidal wave of information into the organizations need to be able to focus onpublic domain. Individuals are demanding achieving business strategy, swiftly takingtransparency and an ethical approach from every advantage of each new opportunity and havingorganization they interact with, particularly those the required agility and flexibility within theirthey work for. Working with the world’s most workforce to allow them to do so. Manpowertrusted brand in contingent and permanent partners with companies and candidates toinnovative workforce solutions (the company was provide the right match, with the right skills, in theawarded Fortune’s 2011 “Most Admired” in the right timeframe for better results. HOW TO NAVIGATE THE HUMAN AGE: Increasing Demand for Better Skills Assessment and Match for Better Results 19
  • 20. ManpowerGroup100 Manpower PlaceMilwaukee, WI 53212USAwww.manpowergroup.com© 2012 ManpowerGroup. All rights reserved.