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10 Cs2633 Fit4 Talent Whitepaper Low Res Final 042210
10 Cs2633 Fit4 Talent Whitepaper Low Res Final 042210
10 Cs2633 Fit4 Talent Whitepaper Low Res Final 042210
10 Cs2633 Fit4 Talent Whitepaper Low Res Final 042210
10 Cs2633 Fit4 Talent Whitepaper Low Res Final 042210
10 Cs2633 Fit4 Talent Whitepaper Low Res Final 042210
10 Cs2633 Fit4 Talent Whitepaper Low Res Final 042210
10 Cs2633 Fit4 Talent Whitepaper Low Res Final 042210
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10 Cs2633 Fit4 Talent Whitepaper Low Res Final 042210

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Cisco issues whitepaper highlighting demographic and skill trends which are demanding a new approach to talent management

Cisco issues whitepaper highlighting demographic and skill trends which are demanding a new approach to talent management

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  • 1. White Paper Series: Cisco Fit4Talent First in a Thought Leadership Series on Talent Peter Joyce, Global Partner Talent Consultant Cisco Fit4Talent: The Competitive Edge for the Coming Decade We have seen a number of striking gyrations in cyclical IT employment over the last decade. But according to an IDC Skills Gap Research report and the Bain 2007 Global Job Market Analysis, there is a potential need for nearly 3 million more skilled networking professionals globally by the year 2012.1
  • 2. White Paper Cisco Fit4Talent: The Competitive Edge for the Coming Decade With a mix of other factors affecting the job market, Cisco channel partners may wonder how they can maintain the talent base they need to succeed: • New technologies have made skill requirements more complex. • Soft/professional skills are increasingly important additions to technical ones. • Training requirements have increased, as have the costs and need to minimize time off the job. • Demographic shifts are shrinking the working-age population worldwide (Figure 1). This paper looks at what it will take for partners to win in the next 10 years: What You Will Learn • The significance of market forces over the last 10 years We have seen a number of striking gyrations in cyclical IT employment over • How these and other factors might affect talent availability in the next decade the last decade. But according to an IDC • Why we must switch from talent acquisition to talent management to drive our Skills Gap Research report and the Bain industry forward 2007 Global Job Market Analysis, there is a potential need for nearly 3 million more Figure 1: Retirement-Age Population by 2025 (Percentage of population 65 years or older) skilled networking professionals globally by the year 2012.1 Under 5% 5% to 12.4% 12.5% to 20% Above 20% Source: Deloitte Research/UN Population Division (http://esa.un.org/unpp/), It’s 2008: Do You Know Where Your Talent Is? Why Acquisi- tion and Retention Strategies Don’t Work, p. 6 A Compressed Rate of Change in the Last Ten Years Despite a couple of significant bumps, the IT workforce grew between 2000 and 2010. The IT industry began the decade with more than 2.2 million workers, double the industry workforce just a decade and a half earlier.2 In 2000, the Information Technology Association of America said that an incredible 800,000 skilled technology jobs were going unfilled in the United States due to a shortage of workers with the necessary skills.3 Because of this employment need, people flocked to technology education and training programs. Unfortunately, just after that, the dot-com bust caused hiring freezes, layoffs, and consolidations. In the years that followed, the industry was slow to rebound.
  • 3. Still, technology continued to evolve dramatically, and skill requirements grew more complex. Firms began to require IT professionals who could work and communicate effectively with colleagues in all departments, from engineers to executives. A solid grasp of business basics, as well as an appreciation for how they drive changes in IT initiatives, became almost as important as possessing core technology skills. Then, a historic downturn from 2007 to 2010 caused the U.S. unemployment rate to end the decade at 10.1 percent, according to the U.S. Bureau of Labor Statistics (Figure 2). Technology workers fared better as a group, with unemployment at about 7 percent during the same period. Other countries and regions also saw double-digit unemployment over the same period. According to surveys by the Cisco® Partner Talent Program, many partners were challenged in finding qualified talent during these 10 years, even during the downturns.4 Although there appeared to be candidates available, the skill sets did not match partner requirements. It would appear that this “talent shortage” is a “skill shortage” below the surface. What should we expect in this new decade? Figure 2: United States Unemployment Rate The Next 10 Years: The Only Thing That Is Certain Is Change One thing is certain: The talent picture is still changing. • We are slowly experiencing a graying of our workforce worldwide. • Our pipeline is not as strong and vibrant as in the past. • Technology is becoming more complex and more integrated into business operations. The result is a greater demand for technical knowledge and business acumen. • People and soft skills have become a core competency. In the new decade, the combined forces of workforce decline and growth in demand will mean that IT employers need to be creative in maintaining and growing their workforce. Figure 3: Changes in Working-Age Population Worldwide, 1970 to 2010 and Changing Demographics 2010 to 2050 The United States is facing a decline in the full-time workforce as the baby boomer cohort ages. Europe will face a similar retirement spike in the face of a declining population. Emerging markets are experiencing shifts as well. In Russia, for example, the working-age population switched from a growth rate of 20 percent to a 46 percent decline (Figure 3).5 4
  • 4. White Paper Figure 4: Growth in U.S. Population by Age, 2000 to 2010 The United States has already experienced this age shift, as those individuals in mid- career (35 to 54 years old) have fueled the growth of the senior ranks (those 55 years and older) (Figure 4). This trend is projected to continue. Moreover, we will not be able to rely on the pipeline of younger workers to easily fill this gap. Less Vibrant Academic and Certification Pipeline Employers will also need to pay more attention to their talent pipeline. Not only will partners have to compete within the networking industry for a smaller pool of talent, but they will also vie with other industries for top talent coming into the pipeline. It is already clear that IT and healthcare will struggle for top talent, since these two occupations are expected to grow the fastest over the next decade.6 In the aftermath of the dot-com bust at the beginning of the decade, undergraduates stopped flocking to technology programs. The impact was long lasting. Even by 2007, the number of undergraduate computer science majors had fallen to half their peak levels.6 As we enter 2010, undergraduate enrollment in computer science is rising, according to the Computing Research Association.2 Their report says: • At the start of the 2009 academic year, the number of undergraduates choosing computer science majors was up by 8 percent. • Because it takes four years for an undergraduate to earn a degree, the number of bachelor’s degrees awarded last year continued to reflect past declines, dropping by another 10 percent. • The number of two-year colleges offering degrees in computer science or information systems grew by about 15 percent during the first half of the 1990s, and the number of associate degrees awarded in these fields grew from 7677 to 9152 over this period. For networking-specific education, the number of certifications issued to date is approaching half a million. However, strong demand for professionals with Cisco certifications currently leaves a worldwide market gap of 1 million people and, as noted above, that is projected to grow. Rising Skill Demands On the employer side, we are expecting an increase in the demand for skilled and qualified talent, especially in the network industry. According to the U.S. Board of Labor Statistics, employment in the information sector is expected to increase by 4 percent, adding 118,100 jobs by 2018. However, the need for network systems and data communications analysts is growing even faster, with an expected growth rate of 53 percent in the United States, and 155,800 new jobs by 2018. The bureau says, “Network systems and data communications analysts are projected to be the second-fastest-growing occupation in the economy. Demand for these workers will increase as organizations continue to upgrade their information technology capacity and incorporate the newest technologies. The growing reliance on wireless networks will result in a need for more network systems and data communications analysts as well.” Employment of network and computer systems administrators is expected to increase by 23 percent from 2008 to 2018. Again, the bureau notes, “Demand for these workers will increase as firms continue to invest in new technologies. The increasing adoption of mobile technologies means that more establishments will use the Internet to conduct business online. This growth translates into a need for systems administrators who can help organizations use technology to communicate with employees, clients, and consumers. Growth will also be driven by the increasing need for information security. As cyber attacks become more sophisticated, demand will increase for workers with security skills.” 5
  • 5. Much of this demand will be driven by significant advances in technology, including data center, mobility, voice, and video. Because of these advances, the demand for individuals proficient in the design, installation, deployment, and troubleshooting of complex converged networks is growing exponentially, according to a commissioned study conducted by Forrester Consulting on behalf of Cisco (Figure 5). Based on 1500 written surveys sent to IT hiring managers in 10 countries, the Forrester study points out that, “As the sophistication of the network increases…the skills requirements for network professionals will also increase. Traditional positions within the network—such as network architects, engineers, and administrators—require employees with more specialized skills and greater levels of experience. At the same time, new job skills related to security, voice, wireless, and remote office work are becoming critical to the functionality of the network.”7 Figure 5: Evolution of Skills Required of Network Professionals In addition, as IT organizations have aligned more closely with the businesses they support, demand has grown for people with business acumen. A recent survey developed by technology staffing firm Robert Half Technology revealed that 41 percent of CIOs polled said they are placing greater emphasis today than five years ago on knowledge of business fundamentals for IT candidates.8 So while many IT professionals believe their technical skills are sufficient, they may struggle to move into leadership positions without these additional skill sets. What Will Be Required of Partners to Win in the Future? Talent management will be critical to ensure that partners have the new and existing talent to meet rising technical and business requirements. Partners will need to address the full talent lifecycle. Best practices show that fit companies take a comprehensive approach to the management of talent. It is not enough simply to invest in attracting good people. Without an effective onboarding program or a formal learning and development process, a company not only marginalizes its hiring investments but also risks losing talent due to a lack of engagement. Figure 6: Cisco Fit4Talent and the Employee Lifecycle Cisco Fit4Talent promotes and supports efforts along the entire lifecycle of your employees, with an emphasis on business alignment and leadership at all phases: Phase 1, workforce and business planning, aligns your business and talent strategies. Phase 2, attraction and hiring, is when you identify and recruit talent. Cisco resources help you define your brand and employee value proposition. We also offer a jobs portal for partners and a co-branded marketing library that supports your outreach efforts. Phase 3, onboarding of new talent, involves assimilating your new hires. This is an opportunity to introduce the hire to your sales processes and Cisco resources. Look for our simple quick-start list of Cisco information for the first 90 days. Phase 4, learning and development, provides career development planning to develop strong skills, professional growth, and employee satisfaction. Cisco is making the new SkillSoft e-learning courses for business acumen, sales skills, and soft skills available free of charge to partners. 6
  • 6. White Paper Phase 5, coaching and mentoring, builds skills for stronger talent and leadership skills. Moreover, it builds your company’s internal development capacity and can help lower costs. Designed specifically for Cisco channel partners, the Professional Career Accelerator (PCA) helps managers orient, develop, and retain top-performing employees. The guidance and tools available through the PCA are designed to engage front-line supervisors in the career development of the employees reporting to them and to supply immediate feedback on employees’ performance. Phase 6, succession planning, identifies and develops talent for the future. Cisco succession planning enables your organization to identify talented employees and provide education to develop them for future higher-level responsibilities. Along with Cisco leadership training, it helps you build bench strength. Conclusion There are billions of talented people around the world. Some are already in your company. With the right support, you can help your talent to grow: • Redesign work to meet individual needs and increase engagement. • Design and implement accelerated development and leadership programs. • Use these programs to attract younger workers and extend the careers of midcareer and older workers. Cisco Fit4Talent is designed to help you build a stronger team and take advantage of the changing rules of the game as you: • Get your talent in shape • Train your talent to succeed • Achieve greater results from a comprehensive approach and investment • Achieve stronger professionals and performance 7
  • 7. White Paper For More Information To get started with Cisco Fit4Talent contact a Cisco partner talent consultant at partner-talent@cisco.com. Sources 1. Analysis by Cisco based on IDC Skill Gaps Research and Bain 2007 Global Job Market Analysis 2. Computer Research Association, http://archive.cra.org/statistics. 3. Information Technology Association of America, Bridging the Gap: Information Technology Skills for a New Millennium, April 2000, www.itaa.org. 4. The Cisco Global Partner Talent survey targets 3,300 business leaders, managers and human resources. The survey enables Cisco to capture valuable talent strategies data allowing us to better tailor our partner talent solutions to each theatre/region/country. To access the last survey: http://www.cisco.com/web/part- ners/downloads/partner/sell/talent/global_partner_talent_survey_2h-fy09.pdf 5. Deloitte Research/UN Population Division: It’s 2008: Do You Know Where Your Talent Is? Why Acquisition and Retention Strategies Don’t Work. http://esa.un.org/unpp/. 6. Ars technica, “US Computer Science Drought May Be Bottoming Out,” http://arstechnica.com/science/ news/2008/03/us-computer-science-drought-may-be-bottoming-out.ars. 7. Forrester Research survey conducted on behalf of Cisco. 8. Robert Half Technologies, Upward Mobility in IT: Business Skills for the Technical Professional, www.globalknowledge.com/training/generic.asp?pageid=2100&country=United+States. About Cisco Americas Headquarters Cisco, (NASDAQ: Systems, Inc.the worldwide leader Asianetworking that transforms how Europe Headquarters communicate Cisco CSCO), in Pacific Headquarters Cisco Systems (USA) Pte. Ltd. people connect, Cisco Systems International BV and collaborate,Jose, CA San this year celebrates 25 years Singapore of technology innovation, operational excellence and corporate Amsterdam, The Netherlands social responsibility. Information about Cisco can be found at http://www.cisco.com. For ongoing news, please go to http://newsroom.cisco.com. Cisco has more than 200 offices worldwide. Addresses, phone numbers, and fax numbers are listed on the Cisco Website at www.cisco.com/go/offices. CCDE, CCENT, CCSI, Cisco Eos, Cisco Explorer, Cisco HealthPresence, Cisco IronPort, the Cisco logo, Cisco Nurse Connect, Cisco Pulse, Cisco SensorBase, Cisco StackPower, Cisco StadiumVision, Cisco TelePresence, Cisco TrustSec, Cisco Unified Computing System, Cisco WebEx, DCE, Flip Channels, Flip for Good, Flip Mino, Flipshare (Design), Flip Ultra, Flip Video, Flip Video (Design), Instant Broadband, and About the Cisco Partner Talent Program Welcome to the Human Network are trademarks; Changing the Way We Work, Live, Play, and Learn, Cisco Capital, Cisco Capital (Design), Cisco:Financed (Stylized), Cisco Store, Flip Gift Card, and One Million Acts of An innovative channel practice, the Cisco Partner Talent Program offers resources designed to give Cisco partners Green are service marks; and Access Registrar, Aironet, AllTouch, AsyncOS, Bringing the Meeting To You, Catalyst, CCDA, CCDP, CCIE, CCIP, CCNA, CCNP, CCSP, CCVP, Cisco, the Cisco Certified Internetwork Expert logo, Cisco IOS, Cisco Lumin, Cisco Nexus, Cisco Press, Cisco Systems, Cisco Systems Capital, the Cisco Systems logo, Cisco Unity, Collaboration Without Limitation, Continuum, EtherFast, EtherSwitch, Event Center, Explorer, a competitive advantage by accelerating employee potential with a variety of tools and resources, Cisco helps Follow Me Browsing, GainMaker, iLYNX, IOS, iPhone, IronPort, the IronPort logo, Laser Link, LightStream, Linksys, MeetingPlace, MeetingPlace Chime Sound, MGX, Networkers, Networking Academy, PCNow, PIX, PowerKEY, partner organizations attract, retain, and develop the right talent to build future growth and profitability. Contact a PowerPanels, PowerTV, PowerTV (Design), PowerVu, Prisma, ProConnect, ROSA, SenderBase, SMARTnet, Spectrum Expert, StackWise, WebEx, and the WebEx logo are registered trademarks of Cisco and/or its affiliates in Cisco partner talent consultant at partner-talent@cisco.com. the United States and certain other countries. All other trademarks mentioned in this document or website are the property of their respective owners. The use of the word partner does not imply a partnership relationship between Cisco and any other company. (1002R) Americas Headquarters Asia Pacific Headquarters Europe Headquarters Cisco Systems, Inc. Cisco Systems (USA) Pte. Ltd. Cisco Systems International BV San Jose, CA Singapore Amsterdam, The Netherlands Cisco has more than 200 offices worldwide. Addresses, phone numbers, and fax numbers are listed on the Cisco Website at www.cisco.com/go/offices. © 2010 Cisco and/or its affiliates. All rights reserved. CCDE, CCENT, CCSI, Cisco Eos, Cisco Explorer, Cisco HealthPresence, Cisco IronPort, the Cisco logo, Cisco Nurse Connect, Cisco Pulse, Cisco SensorBase, Cisco StackPower, Cisco StadiumVision, Cisco TelePresence, Cisco TrustSec, Cisco Unified Computing System, Cisco WebEx, DCE, Flip Channels, Flip for Good, Flip Mino, Flipshare (Design), Flip Ultra, Flip Video, Flip Video (Design), Instant Broadband, and Welcome to the Human Network are trademarks; Changing the Way We Work, Live, Play, and Learn, Cisco Capital, Cisco Capital (Design), Cisco:Financed (Stylized), Cisco Store, Flip Gift Card, and One Million Acts of Green are service marks; and Access Registrar, Aironet, AllTouch, AsyncOS, Bringing the Meeting To You, Catalyst, CCDA, CCDP, CCIE, CCIP, CCNA, CCNP, CCSP, CCVP, Cisco, the Cisco Certified Internetwork Expert logo, Cisco IOS, Cisco Lumin, Cisco Nexus, Cisco Press, Cisco Systems, Cisco Systems Capital, the Cisco Systems logo, Cisco Unity, Collaboration Without Limitation, Continuum, EtherFast, EtherSwitch, Event Center, Explorer, Follow Me Browsing, GainMaker, iLYNX, IOS, iPhone, IronPort, the IronPort logo, Laser Link, LightStream, Linksys, MeetingPlace, MeetingPlace Chime Sound, MGX, Networkers, Networking Academy, PCNow, PIX, PowerKEY, PowerPanels, PowerTV, PowerTV (Design), PowerVu, Prisma, ProConnect, ROSA, SenderBase, SMARTnet, Spectrum Expert, StackWise, WebEx, and the WebEx logo are registered trademarks of Cisco and/or its affiliates in the United States and certain other countries. All other trademarks mentioned in this document or website are the property of their respective owners. The use of the word partner does not imply a partnership relationship between Cisco and any other company. (1002R) DDM10CS2633 04/10

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