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The World is Flat--GSETA 2006 Conference
The World is Flat--GSETA 2006 Conference
The World is Flat--GSETA 2006 Conference
The World is Flat--GSETA 2006 Conference
The World is Flat--GSETA 2006 Conference
The World is Flat--GSETA 2006 Conference
The World is Flat--GSETA 2006 Conference
The World is Flat--GSETA 2006 Conference
The World is Flat--GSETA 2006 Conference
The World is Flat--GSETA 2006 Conference
The World is Flat--GSETA 2006 Conference
The World is Flat--GSETA 2006 Conference
The World is Flat--GSETA 2006 Conference
The World is Flat--GSETA 2006 Conference
The World is Flat--GSETA 2006 Conference
The World is Flat--GSETA 2006 Conference
The World is Flat--GSETA 2006 Conference
The World is Flat--GSETA 2006 Conference
The World is Flat--GSETA 2006 Conference
The World is Flat--GSETA 2006 Conference
The World is Flat--GSETA 2006 Conference
The World is Flat--GSETA 2006 Conference
The World is Flat--GSETA 2006 Conference
The World is Flat--GSETA 2006 Conference
The World is Flat--GSETA 2006 Conference
The World is Flat--GSETA 2006 Conference
The World is Flat--GSETA 2006 Conference
The World is Flat--GSETA 2006 Conference
The World is Flat--GSETA 2006 Conference
The World is Flat--GSETA 2006 Conference
The World is Flat--GSETA 2006 Conference
The World is Flat--GSETA 2006 Conference
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The World is Flat--GSETA 2006 Conference

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Impact of Flat World principles on workforce development system

Impact of Flat World principles on workforce development system

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    • 1. “ The World is Flat”: How Globalization is Changing Our Workforce System Presented by: The Widing Group Robin Widing Michele Roy Martin
    • 2. Headlines <ul><li>For the month of July 2003, India announced the creation of 30,000 new outsourced jobs. </li></ul><ul><li>In that same month, US firms carried out 2,087 mass layoff actions resulting in the loss of 226,435 American jobs. </li></ul>
    • 3. SOME STATS <ul><li>Since 2000, 150 million educated workers have entered the global workforce. </li></ul><ul><li>In India, it costs $700/month to provide wages, medical benefits for an entire family, transportation, lunch and dinner to a worker in a call center. </li></ul><ul><li>A Chinese production worker brings home $265/month or $3195/year </li></ul>
    • 4. Defining Globalization in 2006 <ul><li>Globalization has evolved </li></ul><ul><li>Market competition is global </li></ul><ul><li>Turbo-charged environment </li></ul><ul><li>Business goes where the “talent is” </li></ul><ul><li>Life-time employment replaced by life-time employability. </li></ul>
    • 5. The Flatteners: Phase 1 <ul><li>Created a collaborative platform for information and relationships that were global: </li></ul><ul><ul><li>Berlin Wall, MS Windows </li></ul></ul><ul><ul><li>Netscape </li></ul></ul><ul><ul><li>Software that can “talk” across disciplines </li></ul></ul>
    • 6. The Flatteners: Phase 2 <ul><li>Businesses are now building upon a common technological interface and infrastructure to create processes that are more efficient and fuel innovation: </li></ul><ul><ul><li>Open-sourcing </li></ul></ul><ul><ul><li>In-sourcing </li></ul></ul><ul><ul><li>Outsourcing </li></ul></ul><ul><ul><li>Supply-chaining </li></ul></ul><ul><ul><li>Off-shoring </li></ul></ul><ul><ul><li>Information Diving </li></ul></ul><ul><ul><li>“ Technology on Steroids” </li></ul></ul>
    • 7. How Has Business Changed? <ul><li>Decentralized Organizational Structures </li></ul><ul><li>Collaborative Partnerships </li></ul><ul><li>Leverages technology </li></ul><ul><li>Common data and process standards </li></ul><ul><li>Functional view of work processes </li></ul><ul><li>Open communication </li></ul><ul><li>Emphasis on knowledge & innovation </li></ul>
    • 8. A Globally Competitive Workforce <ul><li>Individuals competing against other individuals. </li></ul><ul><li>Previously “specialized” skills becoming commodities, performed by the lowest bidder. </li></ul><ul><li>Workers must possess the knowledge, skills, attitudes and behaviors to continually adapt to ever-changing and escalating labor market requirements. </li></ul><ul><li>Workers must have the ability to integrate and apply their academic, technical and practical knowledge and skills to solve real-world problems </li></ul><ul><li>Workers must take charge of their own learning. </li></ul><ul><li>Ability to work in a team environment and work effectively with customers, coworkers and supervisors. </li></ul>
    • 9. How does this change jobs? <ul><li>OUT </li></ul><ul><li>Generalists </li></ul><ul><li>Basic Literacy </li></ul><ul><li>Occupations & Career Ladders </li></ul><ul><li>Employee </li></ul><ul><li>Life-time employment </li></ul><ul><li>IN </li></ul><ul><li>“ Versatilists” </li></ul><ul><li>Workplace Literacy </li></ul><ul><li>Skill Clusters & Skill Ladders </li></ul><ul><li>Entrepreneur </li></ul><ul><li>Life-time employability </li></ul>
    • 10. Value-Add Services for Job Seekers <ul><li>OUT </li></ul><ul><li>Barrier assessment </li></ul><ul><li>Basic Literacy development </li></ul><ul><li>Service plans </li></ul><ul><li>Geographic job matching— “what local jobs will match our job seeker’s skills?” </li></ul><ul><li>IN </li></ul><ul><li>Comprehensive assessment </li></ul><ul><li>Workplace Literacy development </li></ul><ul><li>Career Plans </li></ul><ul><li>Skill matching– “what global jobs might match our job seeker’s skills?” </li></ul><ul><li>Skill development for a global market— “What skills could our job seekers develop that would make them competitive in a global market?” </li></ul>
    • 11. Value-Add Services for Business <ul><li>OUT </li></ul><ul><li>Taking job orders </li></ul><ul><li>Job Matching </li></ul><ul><li>Job Fairs </li></ul><ul><li>Job development– “hire our local workers” </li></ul><ul><li>IN </li></ul><ul><li>High-level skill analysis </li></ul><ul><li>Trend and data analysis to stay ahead of workforce trends </li></ul><ul><li>Job development— “how can we help you find the best workers?” </li></ul><ul><li>Innovative use of technology </li></ul><ul><li>Focus on building skills that “fill the pipeline” </li></ul>
    • 12. Implications for LMI Analysis <ul><li>Look at business and industry differently. </li></ul><ul><li>Look at jobs/occupations differently. </li></ul><ul><li>Change our definition of “demand-driven.” </li></ul>
    • 13. We Need To . . . <ul><li>Analyze industries and jobs in terms of their “ fungibility ”—what is the likelihood that jobs can be outsourced? </li></ul><ul><li>Become more knowledgeable about impact of technology and global markets in key industries and occupations </li></ul><ul><li>Become pro-active and focus on developing “anchored” and “value-add” jobs. </li></ul>
    • 14. Work in the Global Economy <ul><li>“Fungible” Jobs </li></ul><ul><li>“Anchored” Jobs </li></ul><ul><li>Value-add Jobs— “To be competitive you have to be more than plain vanilla.” </li></ul>
    • 15. Fungible Jobs (1) <ul><li>Repetitive, skill-based work requiring a minimum of interpretation or decision-making </li></ul><ul><li>“ As a general rule, the less a job requires independent thought or advanced training , and the more transitory or seasonal its nature , the greater the odds are that job candidates are fungible.” </li></ul>
    • 16. Fungible Jobs (2) <ul><li>Easily digitized (can be done on computer, over phone) </li></ul><ul><li>Not tied to a particular geographic location ( this is more flexible than you think ) </li></ul><ul><li>Processes can be more “automated” </li></ul><ul><li>Will tend to go to where labor costs are the cheapest </li></ul>
    • 17. Examples of Fungible Jobs <ul><li>Bill payment/processing </li></ul><ul><li>Medical transcription </li></ul><ul><li>Insurance claim processing </li></ul><ul><li>Hotel/Airline reservations </li></ul><ul><li>Mortgage loan servicing </li></ul><ul><li>Computer programming & software design </li></ul><ul><li>Tax return preparation </li></ul><ul><li>“ Junior” accounting, legal and architectural activities </li></ul>
    • 18. Sectors Most At Risk <ul><li>Office Support </li></ul><ul><ul><li>Computer Operators </li></ul></ul><ul><ul><li>Data Entry </li></ul></ul><ul><li>Business and Financial Support </li></ul><ul><li>Computer and Math Professionals </li></ul><ul><li>Paralegals and Legal Assistants </li></ul><ul><li>Diagnostic Support Services </li></ul><ul><li>Medical Transcriptionists </li></ul>SOURCE: “The New Wave of Outsourcing”--Fisher Center for Real Estate and Urban Economics (UC-Berkeley)
    • 19. Attributes of Outsourced Jobs <ul><li>No Face-to-Face Customer Servicing Requirement </li></ul><ul><li>High Information Content </li></ul><ul><li>Work Process is Telecommutable and Internet Enabled </li></ul><ul><li>High Wage Differential with Similar Occupation in Destination Country </li></ul><ul><li>Low Setup Barriers </li></ul><ul><li>Low Social Networking Requirement </li></ul>SOURCE: “The New Wave of Outsourcing”--Fisher Center for Real Estate and Urban Economics (UC-Berkeley)
    • 20. Anchored Jobs <ul><li>Must be performed in a particular geographic location </li></ul><ul><li>Wages set by local conditions (demand & supply). </li></ul><ul><li>BUT . . . There are “fungible” parts of anchored jobs that can and will be outsourced. </li></ul>
    • 21. Anchored Jobs—Two Tiers <ul><li>Retail sales clerk </li></ul><ul><li>Waiter/Waitress </li></ul><ul><li>Cleaning </li></ul><ul><li>Landscaping/ Lawncare </li></ul><ul><li>Hair stylist </li></ul><ul><li>School bus driver </li></ul><ul><li>Healthcare--Nurse, PT, OT </li></ul><ul><li>Automotive Tech </li></ul><ul><li>Over-the-road Truck Driver </li></ul><ul><li>Chef </li></ul>
    • 22. Anchored Jobs with Fungible Parts <ul><li>Radiologists in India are reading X-rays for American patients. </li></ul><ul><li>McDonald’s is outsourcing drive-thru ordering. </li></ul><ul><li>Hospitals in India now offer reasonably-priced post-surgical sight-seeing trips. </li></ul><ul><ul><li>They serve 55,000 foreign patients/year </li></ul></ul><ul><ul><li>75% are uninsured and underinsured Americans </li></ul></ul>
    • 23. “Value-Add” Jobs <ul><li>Requires: </li></ul><ul><ul><li>Specialized knowledge and/or skills to perform </li></ul></ul><ul><ul><li>Adaptability </li></ul></ul><ul><ul><li>Depth/breadth of skill </li></ul></ul><ul><ul><li>Life-long learning </li></ul></ul><ul><ul><li>Development of “Whole New Mind” </li></ul></ul><ul><li>Definition of “value add” changes as technology and work processes are changing. </li></ul><ul><li>Economic growth directly tied to region’s ability to attract and retain “value-add” work & workers. </li></ul>
    • 24. LMI in a Round World <ul><li>What are the major industries in our area? </li></ul><ul><li>What jobs do they say they want to fill? </li></ul><ul><li>What is the capacity of our area to fill those jobs (demographics, education, etc.)? </li></ul><ul><li>What do we need to do to fill the pipeline? </li></ul>
    • 25. LMI in a Flat World <ul><li>Which of our local jobs could be done overseas for less money? </li></ul><ul><li>Which of our local jobs could be done faster or better by a computer? </li></ul><ul><li>How will technology change the skill and knowledge requirements of our local jobs? </li></ul><ul><li>Which jobs offer the greatest stability (self-sufficiency wages and “untouchable” status)? </li></ul><ul><ul><li>Which do we have? </li></ul></ul><ul><ul><li>Which do we want to attract? </li></ul></ul>
    • 26. Could It Be Done Overseas for Less? <ul><li>Average Salaries of Programmers </li></ul><ul><li>Country Salary Range </li></ul><ul><li>Poland and Hungary $4,800 to $8,000 </li></ul><ul><li>India $5,880 to $11,000 </li></ul><ul><li>Philippines $6,564 </li></ul><ul><li>Malaysia $7,200 </li></ul><ul><li>Russian Federation $5,000 to $7,500 </li></ul><ul><li>China $8,952 </li></ul><ul><li>Canada $28,174 </li></ul><ul><li>Ireland $23,000 to $34,000 </li></ul><ul><li>Israel $15,000 to $38,000 </li></ul><ul><li>USA $60,000 to $80,000 </li></ul><ul><li>Source: CIO magazine, November 2002, Smart </li></ul><ul><li>Access Survey, Merrill Lynch. </li></ul>
    • 27. Could a Computer Do it Faster or Better? <ul><li>Turbo Tax has replaced your accountant. </li></ul><ul><li>ATMs and on-line banking have replaced your bank teller. </li></ul><ul><li>E-ticket check-in has replaced your ticket agent. </li></ul><ul><li>Automation and “do-it-yourself” tests may make Med Techs obsolete. </li></ul>
    • 28. How Does Tech Change the Job? <ul><li>With the Internet you can be your own lawyer. </li></ul><ul><li>“ Wireless healthcare” changes how medical professionals interact with patients. </li></ul><ul><li>Automotive technology—workers must be able to work with computerized shop equipment, electronic components and traditional hand tools. </li></ul><ul><li>Financial Planners—more focus on empathy, ability to work with people. </li></ul>
    • 29. Demand is a Two-Way Street <ul><li>What jobs do we want to keep? </li></ul><ul><li>What jobs do we want to attract? </li></ul><ul><li>How can we prepare our workers to fill those jobs? </li></ul>
    • 30. Broaden/Deepen Scope of LMI <ul><li>Global market for talent </li></ul><ul><ul><li>Who are you really competing against? </li></ul></ul><ul><ul><li>What is their capacity to provide supply? </li></ul></ul><ul><ul><li>What jobs do you want to attract? </li></ul></ul><ul><ul><li>How do you make your region attractive to the kinds of people who want these jobs? </li></ul></ul><ul><li>Global Demographics </li></ul><ul><ul><li>Impact on industries and demand for products/services. </li></ul></ul><ul><ul><li>Impact on local jobs </li></ul></ul><ul><li>Present and Future Impact of Technology Trends </li></ul>
    • 31. Challenges <ul><li>Skills at a premium </li></ul><ul><ul><li>Entrepreneurial </li></ul></ul><ul><ul><li>Engineering, Math & Science </li></ul></ul><ul><ul><li>Specialized skills </li></ul></ul><ul><li>The Quiet Crisis </li></ul><ul><ul><li>Numbers Gap </li></ul></ul><ul><ul><li>Motivation Gap </li></ul></ul><ul><ul><li>Education Gap </li></ul></ul><ul><li>Job Churning </li></ul><ul><li>How NOT to leave people behind! </li></ul>
    • 32. The Good News! <ul><li>Global Economy not finite </li></ul><ul><li>Universal Interdependence </li></ul><ul><li>Capitalism doing well </li></ul><ul><li>America spawns innovation </li></ul><ul><li>Change brings opportunity </li></ul><ul><li>Our workforce system has the capacity to address these changes. </li></ul>

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