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Reskilling the Workforce: Essential to Business Success

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Today's business leaders are challenged by a growing disconnect between workers' skills and the work requirements. An ever growing need for knowledge workers and an ever more quickly changing business landscape has led to an increase in skill gaps even as mature economies face the challenge of high unemployment. The only rational approach to this challenge is to increase learning and development efforts in an effort to create a learning culture. This webinar presents evidence for the current challenges and suggests a way forward.

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Reskilling the Workforce: Essential to Business Success

  1. 1. Reskilling the Workforce:Essential to Business Success David Wilkins VP of Research @TaleoResearch
  2. 2. IN A WORLD WHERE… THIS MEANS MORE OF THISLEARNING & RESKILLING ARE BUSINESS IMPERATIVES
  3. 3. (1) Talent pools are global, shallow, and getting shallower(2) Quality-of-hire is down; time-to-fill is up(3) Business is faster, more connected, and more complex(4) Govt and educational institutions are part of the problem(5) US businesses have abdicated responsibility TALENT INTELLIGENCE
  4. 4. (1) Know the team you have(2) Know the team you need(3) Invest in long-term capability development(4) Empower your team to do this themselves(5) Switch your default to reskilling and hiring from within TALENT INTELLIGENCE
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  8. 8. “34 percent of CHROs ingrowth markets say theyanticipate increasingheadcount in NorthAmerica over the nextthree years, while 37percent plan additionalinvestment in WesternEurope. This includescompanies fromIndia, where 45 percent ofrespondents indicatedthey plan to increaseheadcount in NorthAmerica and 44 percent inWestern Europe.” TALENT INTELLIGENCE
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  11. 11. CHART 8: AMOUNT OF TIME TO BRING NEWMANAGEMENT / SPECIALIZED WORKERS UP TO SPEED -RISEN OR FALLEN IN LAST TWO YEARS TALENT INTELLIGENCE
  12. 12. CHART 9: WHICH OF THE FOLLOWING BENEFITS DOES YOURFIRM CURRENTLY USE TO ATTRACT AND RETAINMANAGEMENT AND/OR SPECIALIZED WORKERS (TOPRESPONSES) TALENT INTELLIGENCE
  13. 13. “It is possible that companiesare resigning themselves to therelative scarcity of experiencedworkers who can immediatelyperform to the highest level ina new and responsible role.To compensate for thisshortage, a growing numberseek to recruit raw potentialand then rely on developingthis potential themselves.” TALENT INTELLIGENCE
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  16. 16. AND THE FUTURE LOOKS WORSE› Georgetown University Center on Education and the Workforce on shortfall of college grads in 2018 3,000,000› Accenture study from 2006 showed that STEM enrollments would need to increase by 2016 to meet demand 20-30% between 2006- Instead, enrollments have GONE DOWN. TALENT INTELLIGENCE
  17. 17. EDUCATION, WORKFORCE MISMATCH New Jobs› In the last ten years: Up 4.6% Knowledge Work All others 85%› Over the last few years, average graduation of law students Is 45,000 against openings of 25,000› Skills mismatch is inherent in our educational model TALENT INTELLIGENCE
  18. 18. “Firms have jobs, but can’t find appropriate workers. The workers want to work, but can’t find appropriate jobs. … Whatever the source, though, it is hard to see how the Fed can do much to cure this problem. Monetary stimulus has provided conditions so that manufacturing plants want to hire new workers. But the Fed does not have a means to transform construction workers into manufacturing workers.”18 TALENT INTELLIGENCE
  19. 19. AGING WORKFORCES WORLD-WIDE Country % Growth Russia -8% › Summary Population Growth 2010-2020 Japan -5% – Slow growth, negative growth in developed world Germany -4% – Faster growth in developing world Poland -4% – In US, UK growth fueled through immigration Italy -1% Greece 0% – Less developed = more growth France 5% UK 7% › Implications China 7% – Talent shortages is a global phenomenon Brazil 13% USA 14% – Developing world all competing for same pool Mexico 15% – As developing world matures, pressures from there Turkey 17% – Reverse immigration to Poland, India, Mexico India 24% – Deep, narrow talent pools vs wide and shallow Nigeria 46%http://data.un.org/Data.aspx?d=PopDiv&f=variableID%3a12
  20. 20. AGING WORKFORCES WORLD-WIDE Country % Growth Russia -8% › Summary Population Growth 2010-2020 Japan -5% – Slow growth, negative growth in developed world Germany -4% – Faster growth in developing world Poland -4% – In US, UK growth fueled through immigration Italy -1% Greece 0% – Less developed = more growth France 5% UK 7% › Implications China 7% – Talent shortages is a global phenomenon Brazil 13% USA 14% – Developing world all competing for same pool Mexico 15% – As developing world matures, pressures from there Turkey 17% – Reverse immigration to Poland, India, Mexico India 24% – Deep, narrow talent pools vs wide and shallow Nigeria 46%http://data.un.org/Data.aspx?d=PopDiv&f=variableID%3a12
  21. 21. 15 years of survey data from 100 US and European firms found: Simplicity Complexity The cost of complexity? • Managers spend 40% of their time writing reports • 30% to 60% of their time in coordination meetings • Leaving 0-30% to manage their teams… TALENT INTELLIGENCE
  22. 22. “While today’s rhetoric focuseson telling businesses to “createnew jobs,” we believe that thecreation of new jobs ¡sinextricably tied to providingthe right skills for those jobsthrough education, training andretraining. We must invest inthe future by taking on thelong-term task of training newtalent and retraining existingtalent.” TALENT INTELLIGENCE
  23. 23. THE LEARNING CONNECTION TALENT INTELLIGENCE
  24. 24. ADDRESSING THE PROBLEM1. Know the team you have2. Know the team you need3. Invest in long-term capability development4. Empower workers to do this themselves5. Switch your default to hiring from within TALENT INTELLIGENCE
  25. 25. (1)› Job history Know Your Team› Work experience prior to current role› Expertise developed outside of work› Self-identified expertise & peer-identified expertise› Career aspirations› Top performers and high potentials› Flight risk TALENT INTELLIGENCE
  26. 26. TOP PERFORMER AND HI-PO DATA IS UGLY› 80% of companies don’t know who is a flight risk.› 78% of companies don’t know who is on a succession plan.› 80% of companies don’t know who has a career path.› 65% of companies don’t know much about who they’re retaining.› 84% of companies don’t if their development plans are working.› 65% of companies don’t know much about Hi-Po’s. TALENT INTELLIGENCE
  27. 27. KNOW THE PEOPLE YOU HAVE 48% say that their skills go unnoticed feel that their work history & experiences are not leveraged by their employer 75%27 TALENT INTELLIGENCE
  28. 28. WHO UNDERSTANDS WORKERS BEST? Professional & work capabilities Other None of the 1% above Don’t know 3% My family / 5% partner 21%My line manager 22% My friends outside of work 4% HR software / systems 1% My colleagues and peers 43% TALENT INTELLIGENCE
  29. 29. WHO UNDERSTANDS WORKERS BEST? Professional & work Professional & work capabilities aspirations / ambitions None of the Other None of the Other above 1% above 1% My family / 6% Don’t know 3% Don’t know My family / 5% partner 5% partner 21% 43% My line managerMy line manager 13% 22% My friends HR software / outside of work systems 4% 1% HR software / systems 1% My colleagues My colleagues and peers and peers 22% My friends 43% outside of work 9% TALENT INTELLIGENCE
  30. 30. WHO UNDERSTANDS WORKERS BEST? Professional & work Professional & work capabilities aspirations / ambitions None of the Other None of the Other above 1% above 1% My family / 6% Don’t know 3% Don’t know My family / 5% partner 5% partner 21% 43% My line managerMy line manager 13% 22% My friends HR software / outside of work systems 4% 1% HR software / systems 1% My colleagues My colleagues and peers and peers 22% My friends 43% outside of work 9% TALENT INTELLIGENCE
  31. 31. (2) Here to There› Understand the capability requirements – New strategic plans – Geographic expansion› Map the gaps: what are you missing in order to meet objectives› Assess the best approach to fill-in gaps – Hiring or contract – Skill, knowledge, capability development – Talent transfer TALENT INTELLIGENCE
  32. 32. WORKFORCE DATA – WHAT DO WE KNOW TALENT INTELLIGENCE
  33. 33. WORKFORCE DATA – WHAT DO WE KNOW TALENT INTELLIGENCE
  34. 34. (3) Long-term Roadmap› What is the relationship between various roles?› Which roles commonly lead to which other roles?› What paths did top performers take?› What skills, role assignments, knowledge are required?› Which roles share similar requirements?› For critical and strategic roles, we need to think differently: – Use paradigms of leadership development, cohorts and stages – Use paradigms of pilot and surgeon training – Scaffolding models, coupled with social models TALENT INTELLIGENCE
  35. 35. COMPETENCIES ARE WELL-ESTABLISHED › 75% of companies use job / role competencies for selection & promotion › Over half of organizations tie competencies to career planning › 91% report training improvements when training is tied to competenciesThe next step is to think about building capability.Capability is about business execution and implies notjust competency, but experience, judgment, decision-making. You *develop* capability over time. TALENT INTELLIGENCE
  36. 36. (4) Empower the Team› Employees need to own their own career development – Make sure it’s easier to move in your company than leave it – Enable personal gap assessment between current skills and capabilities and desired career objectives› Map capability requirements to training and learning interventions – Formal content: WBT, classes, video, documents – Social content: CoP, discussions, expert location, wikis – Action learning: related roles, activities, stretch assignments› Involve the team in defining needs and interventions TALENT INTELLIGENCE
  37. 37. (4) Empower the Team› Employees need to own their own career development – Make sure it’s easier to move in your company than leave it – Enable personal gap assessment between current skills and capabilities and desired career objectives› Map capability requirements to training and learning interventions – Formal content: WBT, classes, video, documents – Social content: CoP, discussions, expert location, wikis – Action learning: related roles, activities, stretch assignments› Involve the team in defining needs and interventions TALENT INTELLIGENCE
  38. 38. (5) Switch Your Default› External hiring costs 18-20% more than internal hiring› External hires perform worse on performance evals for 24 months› High external hiring rates increase risk to existing team – #1 reason for dysfunctional turnover in mature economies? Lack of career opportunities – #1 contributor to job satisfaction? “more opportunities to do what I do best,” “career development opportunities and training” (tie)› Hiring from within means lower cost to new hires, better performance, higher engagement, and reduced turnover TALENT INTELLIGENCE
  39. 39. LAY THE GROUNDWORK› You can’t hire from within effectively unless you have: – Strong succession plans at all levels in the org – Clear visibility into open roles – Manager *and* peer-driven process – Culture of development that rewards talent mobility and encourages on-going skill and capability growth – Clear linkages between strategic direction, required capabilities, and development options› Get social fast – user-generated content and p2p models send a clear message about employee empowerment TALENT INTELLIGENCE
  40. 40. Strategic Implications for You40
  41. 41. YOUR STRATEGIC ROLE› Senior leaders are thinking about talent; it’s a key concern› Agility is also top of mind due to recent and current world events – Demographic shifts will increase this focus in coming years – Competitive global pressures will increase this focus – Educational shortfalls will increase this focus› Get ahead of this need by focusing of capabilities-driven learning programs – Understand strategic direction for the future – Map the gaps – Develop a plan – Earn your seat TALENT INTELLIGENCE
  42. 42. QUESTIONS

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