Attracting And Retaining Talent By Tom Stellman 2007

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Attracting And Retaining Talent By Tom Stellman 2007

  1. 1. Attracting & Retaining Talent: Can Texas Compete? July 12, 2007 Tom Stellman TEDC Conference – Amarillo, TX
  2. 2. TIP Strategies, Inc. <ul><li>TIP is an economic development consulting firm based in Austin, Texas. Our services include: </li></ul><ul><ul><li>Strategic planning </li></ul></ul><ul><ul><li>Target sector analysis </li></ul></ul><ul><ul><li>Workforce assessment </li></ul></ul><ul><ul><li>Site selection </li></ul></ul><ul><ul><li>Economic impact analysis </li></ul></ul><ul><ul><li>Land use planning </li></ul></ul>
  3. 3. Representative Clients <ul><li>Suburban </li></ul><ul><li>Austin-area </li></ul><ul><ul><li>Round Rock </li></ul></ul><ul><ul><li>Georgetown </li></ul></ul><ul><ul><li>Cedar Park </li></ul></ul><ul><li>Dallas Metroplex </li></ul><ul><ul><li>Rowlett </li></ul></ul><ul><ul><li>Denton </li></ul></ul><ul><ul><li>Benbrook </li></ul></ul><ul><ul><li>Terrell </li></ul></ul><ul><li>Houston area </li></ul><ul><ul><li>Conroe </li></ul></ul><ul><ul><li>Katy </li></ul></ul><ul><ul><li>League City </li></ul></ul><ul><ul><li>Pearland </li></ul></ul><ul><ul><li>Rosenberg </li></ul></ul><ul><li>Northfield, MN </li></ul><ul><li>Metro Areas & Regions </li></ul><ul><li>City of Dallas </li></ul><ul><li>City of Houston </li></ul><ul><li>Envision Central Texas </li></ul><ul><li>Southwest Mississippi </li></ul><ul><li>Chicago-Milwaukee Corridor </li></ul><ul><li>Richmond, VA </li></ul><ul><li>Jackson County, IL </li></ul><ul><li>Jefferson Parish, LA </li></ul><ul><li>San Antonio EDF </li></ul><ul><li>State of Texas </li></ul><ul><li>State of Vermont </li></ul><ul><li>Northern Ireland, UK </li></ul><ul><li>The Netherlands </li></ul>
  4. 4. TIP Projects
  5. 5. <ul><li>facilities & site visits </li></ul><ul><li>assessment </li></ul><ul><li>benchmarking </li></ul><ul><li>touchstone meetings </li></ul><ul><li>cluster analysis </li></ul><ul><li>visioning </li></ul><ul><li>goal setting </li></ul><ul><li>consensus building </li></ul><ul><li>priority strategies </li></ul><ul><li>priority projects </li></ul><ul><li>specific actions </li></ul><ul><li>resources </li></ul><ul><li>responsible parties </li></ul><ul><li>milestones </li></ul><ul><li>budget </li></ul><ul><li>metrics </li></ul><ul><li>process for updating </li></ul>discovery opportunity implementation T heory I nto P ractice Planning Model
  6. 6. Evolution of Economic Development Goals Talent and Quality of Place Knowledge Higher Wages More Jobs Buildings 2010 2000 1990 1970 1980 evolutionary scale
  7. 7. Talent and Place <ul><li>Talent – the individuals that possess the skills and values to make organizations effective </li></ul><ul><li>Quality of Place – viewing the assets of your community through the eyes of the talent you wish to attract and retain </li></ul>
  8. 9. US manufacturing vs. services Source: US Bureau Labor Statistics; Economy.com
  9. 10. US mfg: output vs. employment Source: US Bureau Labor Statistics; US Bureau of Economic Analysis; Economy.com
  10. 11. US Employment Forecast 2006-2016
  11. 12. Two-thirds of all new jobs from just three major sectors.
  12. 13. Global Working Age Population SOURCE: U.S. Bureau of the Census, International Database population age 15-64 (in millions) 0 20 40 60 80 100 120 1990 2000 2010 2020 2030 2040 2050 Germany Japan Russia UK projection
  13. 14. US Working Age Population SOURCE: U.S. Bureau of the Census, International Database population age 15-64 (in millions) The generation ahead: expect a tight labor market since we won’t be adding workers at the pace with which we are accustomed. 2007: you are here projection 0 50 100 150 200 250 300 1990 2000 2010 2020 2030 2040 2050
  14. 15. US Labor Shortage? Since 1990, the US has added more than 1.5 million jobs annually . However, we are nearing a point when the annual net increase in the working age population will fall to about 500,000. SOURCES: TIP Strategies; U.S. Census Bureau; U.S. Bureau of Economic Analysis net chg in population age 18-64 0 250,000 500,000 750,000 1,000,000 1,250,000 1,500,000 1,750,000 2,000,000 2,250,000 2005 2010 2015 2020 2025 2030 2035 2040 Projected Net Annual Change in the Working Age Population (18-64) Average Annual Job Creation Since 1990
  15. 16. Texas Labor Projections Since 1990, Texas has added more than 184,000 jobs annually . That’s about the level of growth our working-age population will experience when the Baby Boomers start retiring. Factor in a labor force participation rate of 2/3, and yes, Houston, we may have a problem. SOURCES: TIP Strategies; U.S. Census Bureau; U.S. Bureau of Economic Analysis net chg in population age 18-64 0 50,000 100,000 150,000 200,000 250,000 2005 2010 2015 2020 2025 2030 2035 2040 Projected Net Annual Change in the Working Age Population (18-64) Average Annual Job Creation Since 1990
  16. 17. US Working Age Population by Generation SOURCE: U.S. Bureau of the Census, projections based on 2000 Census population age 18-64 2011: The Baby Boomers reach retirement age 2030: Gen X reaches retirement age 2018: Gen Y makes up half of the working age population projection 0 25 50 75 100 125 150 175 200 225 1990 1995 2000 2005 2010 2015 2020 2025 2030 (in millions) pre-Boomers (born before 1946) Baby Boomers (born 1946-1964) Generation X (born 1965-1977) Generation Y and beyond (born post-1977)
  17. 18. US Labor Force Participation by Gender SOURCE: U.S. Bureau of Labor Statistics women men labor force participation rate (%) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 1950 1960 1970 1980 1990 2000
  18. 19. US Bachelor’s Degrees by Gender SOURCE: National Center for Education Statistics women men Bachelor’s degrees conferred projection 0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 900,000 1,000,000 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010
  19. 20. Texas Working Age Population by Generation population age 18-64 At the surface, the generational pattern in Texas looks (and is) the same as the US. The difference is that the working age population in Texas will grow at a faster pace. SOURCE: U.S. Bureau of the Census, projections based on 2000 Census projection 0 5 10 15 20 1990 1995 2000 2005 2010 2015 2020 2025 2030 (in millions) pre-Boomers (born before 1946) Baby Boomers (born 1946-1964) Generation X (born 1965-1977) Generation Y and beyond (born post-1977)
  20. 21. Texas Contribution to Net Population Growth SOURCE: Texas State Data Center contribution to net population growth (%)
  21. 22. Texas Educational Attainment 2005 SOURCE: U.S. Bureau of the Census, American Community Survey 2005 % of population age 25+
  22. 23. Source: US Census Bureau &quot;Importers&quot; & &quot;Exporters&quot; of Domestic Migrants, 2000-2006 Top & Bottom Ten States
  23. 27. Components of Population Change in West Texas Metros, 2000-2006 Ranked by Percent Change Source: US Census Bureau Migration Natural Increase Total Change -9,885 381 -9,195 13,208 -4.0% -5,996 Wichita Falls MSA -7,320 490 -9,617 14,775 -1.4% -2,182 Abilene MSA -3,770 434 -6,370 10,036 0.0% -29 San Angelo MSA -3,340 1,961 -12,719 25,551 4.7% 11,711 Lubbock MSA -2,175 1,416 -6,679 14,152 5.2% 6,339 Odessa MSA 1,842 3,515 -12,762 23,226 6.6% 14,993 Amarillo MSA 1,623 1,186 -5,731 11,716 7.2% 8,371 Midland MSA Domestic Int’l Deaths Births % #
  24. 28. Growth in China <ul><li>Low cost competitor? </li></ul><ul><li>Yes, but also competing for: </li></ul><ul><ul><li>Investment </li></ul></ul><ul><ul><li>Resources </li></ul></ul><ul><ul><li>Talent </li></ul></ul>
  25. 30. Foreign National Engineering Degrees (% of graduates)
  26. 31. What are Employers Saying? “ Keep your tax incentives and highway intersections. We will go where the highly skilled people are.” — Carly Fiorina, former CEO of Hewlett Packard
  27. 32. “ Hot Jobs – Cool Communities” <ul><li>Rebecca Ryan of Next Generation Consulting says: </li></ul><ul><ul><li>“Communities work dog-hard to attract companies to their location, but that's only half the deal. Today, companies also rely on … community leaders to attract talent .” </li></ul></ul>
  28. 33. <ul><li>Air and Water Quality </li></ul><ul><li>Recycling Rates </li></ul><ul><li>Car Pools, Commute Times </li></ul><ul><li>Traffic </li></ul><ul><li>Public Parks, Trails, and Recreation Areas </li></ul><ul><li>Sunny Days </li></ul><ul><li>Farmers Markets </li></ul><ul><li>Natural Foods Stores </li></ul>“ Hot Jobs – Cool Communities” <ul><li>Fitness Centers </li></ul><ul><li>Vegetarian Restaurants </li></ul><ul><li>Rates of Crime </li></ul><ul><li>Rates of Cancer </li></ul><ul><li>Heart Disease </li></ul><ul><li>Obesity </li></ul><ul><li>Smoking </li></ul><ul><li>Life Expectancy </li></ul>
  29. 34. <ul><li>Fruit and Vegetable Consumption </li></ul><ul><li>Work Sick Days </li></ul><ul><li>Rates of Depression </li></ul><ul><li>High Blood Pressure </li></ul><ul><li>Unemployment </li></ul><ul><li>Charitable Donations </li></ul><ul><li>Cost of living </li></ul><ul><li>Poverty </li></ul>“ Hot Jobs – Cool Communities” <ul><li>Concentration of Designers, Artists, Authors, Musicians, Actors and similar Professions </li></ul><ul><li>Percentage of Community Under 40 </li></ul><ul><li>Population Diversity (ethnic, religious, sexual orientation) </li></ul><ul><li>Number of Bars, Nightclubs and similar per capita </li></ul><ul><li>Number of Art Galleries, Museums, and similar per capita </li></ul>
  30. 35. The War for Talent *by Ed Michaels, Helen Handfield-Jones, & Beth Axelrod Harvard Business School Press - 2001 Talented people are scarce Jobs are scarce People are mobile and their commitment is short term Employees are loyal and jobs are secure People demand much more People accept the standard package they are offered Better talent makes a huge difference Better talent makes some difference Talented people are the competitive advantage Machines, capital, and geography are the competitive advantage Companies need people People need companies The New Reality The Old Reality
  31. 36. Generations <ul><li>Veterans (aka Radioers) - Born 1922 to 1945 - 75 million </li></ul><ul><li>Boomers – Born 1946 to 1964 – 80 million </li></ul><ul><li>Generation X – Born 1965 to 1980 – 46 million </li></ul><ul><li>Generation Y – Born after 1980 – 76 million </li></ul>Source: Mary Alice Burkhart - Austin Peay State University
  32. 37. Millennials <ul><li>Born after 1991 </li></ul><ul><li>Not yet in the workforce, but we need to anticipate their relationship with work </li></ul>Source: Mary Alice Burkhart - Austin Peay State University
  33. 38. The Veterans are . . . <ul><li>75 million workers age 60+ </li></ul><ul><li>Defining events – Great Depression, WWII, Korea, Radio Age, rise of labor unions </li></ul><ul><li>Frugal and resourceful </li></ul><ul><li>Loyal to the company </li></ul><ul><li>Respectful of order, rules and authority </li></ul><ul><li>Value lessons from the past </li></ul><ul><li>Believe in the virtue of hard work, patience and thrift </li></ul><ul><li>Require tangible recognition of achievement </li></ul>Source: Mary Alice Burkhart - Austin Peay State University
  34. 39. Baby Boomers are . . . <ul><li>80 million workers ages 42 – 60 </li></ul><ul><li>Defining Events – Television, suburbia, Woodstock, Viet Nam, civil rights movement, the Cold War </li></ul><ul><li>Optimistic and team oriented </li></ul><ul><li>Socially and intellectually involved </li></ul><ul><li>Take pride in working long hours to get ahead </li></ul><ul><li>Carefully plan and monitor projects to completion </li></ul><ul><li>Enjoy receiving public recognition and other rewards for their accomplishment </li></ul>Source: Mary Alice Burkhart - Austin Peay State University
  35. 40. Generation Xers are . . . <ul><li>46 million workers ages 26 to 41 </li></ul><ul><li>Defining Events – Computers, MTV, Watergate, energy crisis, fall of Berlin Wall, social change </li></ul><ul><li>Trust authority only if accompanied by competence </li></ul><ul><li>Focused on developing skills to enhance marketability </li></ul><ul><li>Self-reliant and independent </li></ul><ul><li>Confident in their technology based skills </li></ul><ul><li>Work smarter, not harder </li></ul><ul><li>Job motivation – challenging and fun </li></ul>Source: Mary Alice Burkhart - Austin Peay State University
  36. 41. Generation Y is . . . <ul><li>76 million workers under age 26 </li></ul><ul><li>Defining events – Advanced technology, Oklahoma City bombing, school violence, multiculturalism, 9/11 </li></ul><ul><li>Access and process information faster </li></ul><ul><li>Extensive users of technology at home and at work </li></ul><ul><li>Group oriented problem-solvers </li></ul><ul><li>Seek opportunities to explore new paths </li></ul><ul><li>Seek flexibility and freedom on the job </li></ul><ul><li>Optimistic, sociable and achievement-oriented </li></ul><ul><li>“ Generations at Work: Managing the Clash of Veterans, Boomers, Xers </li></ul><ul><li>and Nexters in your Workplace” by R. Zemke, C. Raines and B. Filipczak </li></ul>
  37. 44. <ul><li>Return to Roots is a campaign aimed at the estimated 15,000 alumni who have graduated from Southwest Virginia’s high schools in the last 20 years and may have moved away from the region. </li></ul><ul><li>Return to Roots is an information portal highlighting the exciting job opportunities that exist today in Virginia’s Great Southwest region. </li></ul>
  38. 46. Greater Killeen Area OPERATION ECONOMIC TRANSFORMATION A BLUEPRINT FOR ADVANCING ECONOMIC OPPORTUNITIES IN THE FORT HOOD REGION Veterans Inventory
  39. 47. SURVEY OF POST-MILITARY SERVICE INTENT
  40. 51. Quality of Place Factors
  41. 52. Rio Grande Valley: Generational Research Project <ul><li>Goal : To better understand how different generations relate to work and place and to each other in order to make better decisions about human resource management, education and training, and other initiatives designed to prepare, retain and attract talent. </li></ul><ul><li>Three components: </li></ul><ul><ul><li>National and regional data </li></ul></ul><ul><ul><li>Pilot survey and focus group meetings </li></ul></ul><ul><ul><li>Findings and recommendations </li></ul></ul>
  42. 53. Findings from Pilot Survey <ul><li>Relationship with work: </li></ul><ul><ul><li>Baby boomers were more interested in benefits </li></ul></ul><ul><ul><li>Generation X was more interested in career opportunities and work schedule flexibility </li></ul></ul><ul><li>Relationship with place: </li></ul><ul><ul><li>Baby boomers were more interested cost of living and access to higher education </li></ul></ul><ul><ul><li>Generation X was more interested in access to employment opportunities and entertainment options </li></ul></ul>
  43. 54. Retiree Impact <ul><li>Center for Economic Development (CED) at Jacksonville State Univ. reports that retirees: </li></ul><ul><ul><li>control 77% of the nation’s assets </li></ul></ul><ul><ul><li>maintain 80% of savings account balances </li></ul></ul><ul><ul><li>own 68% of all money market accounts </li></ul></ul><ul><ul><li>buy 48% of new automobiles </li></ul></ul><ul><li>According to one estimate, the economic impact of one relocating retiree on a community is equal to 3.7 factory workers . </li></ul>
  44. 55. Retiree Trends & Attitudes <ul><li>Working retirement is more common . </li></ul><ul><ul><li>Retirement is more of a transition than a sudden event. </li></ul></ul><ul><li>Active in community </li></ul><ul><ul><li>Life experience and connections make them important resource. </li></ul></ul><ul><li>Aging in place </li></ul><ul><ul><li>Only one in five will relocate. Most prefer to stay near family, friends, & familiar places. </li></ul></ul><ul><li>Technology use </li></ul><ul><ul><li>AOL-sponsored study found that almost half of people age 55+ have been on-line for 4 years </li></ul></ul>
  45. 56. <ul><li>Yes, but we have much work ahead… </li></ul><ul><li>Anticipate a tight labor force in the coming years </li></ul><ul><li>Adapt to (and learn from) the needs of Gen Y </li></ul><ul><li>Recognize that women may be our best underutilized human resource in the competitive years ahead </li></ul><ul><li>Prepare new generations to enter the workforce with solid and complete educations </li></ul>Can Texas Compete ?
  46. 57. Thank you 7000 N. MoPac, Ste. 305 Austin, TX 78731 512.343.9113 tel 512.343.9190 fax www.TIPstrategies.com TIP Strategies, Inc. << T heory I nto P ractice >>

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