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Building The Future Workforce Nov 2008


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NEDA Executive Conference - Chicago

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Building The Future Workforce Nov 2008

  1. 1. Building the Technical Workforce of Tomorrow - Who Will Win the Great Talent Chase? Paul J. Kostek, VP IEEE-USA Communications & Public Awareness NEDA Conference 3 November 2008
  2. 2. Today’s Challenge <ul><li>Competition for talent </li></ul><ul><li>What steps are being taken to increase the numbers of students entering engineering? </li></ul><ul><li>How is the current engineering workforce being utilized? </li></ul><ul><li>How will companies compete for talent, differentiate themselves and what impact will this have on business? </li></ul><ul><li>Where is the growth taking place outside the US and can we find ways to tap this? </li></ul>
  3. 3. The Current Numbers <ul><li>Engineering Students </li></ul><ul><ul><li>Undergrads all disciplines </li></ul></ul><ul><ul><ul><li>385,690 </li></ul></ul></ul><ul><ul><li>2006-2007 Degrees awarded </li></ul></ul><ul><ul><ul><li>73,000 undergrad </li></ul></ul></ul><ul><ul><ul><li>30,000 MS </li></ul></ul></ul><ul><ul><ul><li>6,000 PhD </li></ul></ul></ul><ul><li>Engineering Population </li></ul><ul><ul><li>~1.978 million </li></ul></ul>
  4. 4. Bachelor’s Degrees, by Disciplines 2006-07 (73K)
  5. 5. Undergraduate Enrollments
  6. 6. What steps are being taken to increase the numbers of students entering engineering? <ul><li>K-12 initiatives </li></ul><ul><ul><li>Professional Societies </li></ul></ul><ul><ul><ul><li>Engineers in schools </li></ul></ul></ul><ul><ul><ul><li>Job shadowing </li></ul></ul></ul><ul><ul><ul><li>IEEE-USA Future Cities </li></ul></ul></ul><ul><ul><ul><li>SAE Wheels in Motion </li></ul></ul></ul><ul><ul><li>Trade Associations </li></ul></ul><ul><ul><ul><li>SIA Program to attract and retain undergrads </li></ul></ul></ul><ul><ul><li>Companies </li></ul></ul><ul><ul><ul><li>Intel Science Fair </li></ul></ul></ul><ul><ul><ul><li>Siemens </li></ul></ul></ul><ul><ul><li>Federal Government </li></ul></ul><ul><ul><ul><li>COMPETES legislation </li></ul></ul></ul><ul><ul><ul><ul><li>(response to NAE Study- Rising Above the Gathering Storm) </li></ul></ul></ul></ul>
  7. 7. Competing for Talent <ul><li>Industries </li></ul><ul><ul><li>Aerospace </li></ul></ul><ul><ul><li>Computing (hardware and software) </li></ul></ul><ul><ul><li>Web – based </li></ul></ul><ul><ul><li>Gaming </li></ul></ul><ul><ul><li>Green </li></ul></ul><ul><ul><li>Semiconductors </li></ul></ul><ul><ul><li>Utilities </li></ul></ul><ul><li>Companies </li></ul><ul><ul><li>Google </li></ul></ul><ul><li>Degrees growing in enrollments </li></ul><ul><ul><li>Bio-Med </li></ul></ul><ul><ul><li>Environmental / Civil Engineering </li></ul></ul>
  8. 8. Where is the growth taking place outside the US and can we find ways to tap this? <ul><li>India </li></ul><ul><li>China </li></ul><ul><li>Vietnam </li></ul><ul><li>Russia + former satellites </li></ul><ul><ul><li>Even these areas are faced with retention problems </li></ul></ul>
  9. 9. The Current Population <ul><li>The conversation, whether in DC or Silicon Valley, centers on the next generation of engineers/scientists while seeming to forget there are over 1 million electrical engineers in the workforce. </li></ul><ul><ul><li>Where do they fit in? </li></ul></ul><ul><ul><li>Are we utilizing our current population? </li></ul></ul><ul><ul><li>Does retention matter? </li></ul></ul><ul><ul><li>Does how we treat the current workforce impact the future workforce? </li></ul></ul><ul><ul><li>Companies can now access engineers in Eastern Europe, Asia and India, what will the impact be for engineers here in the U.S.A.? </li></ul></ul><ul><ul><li>Do we need to graduate more engineers , the same, or less? </li></ul></ul>
  10. 10. The 4 Generations <ul><li>For the first time ever we have 4 generations in the workplace – </li></ul><ul><ul><li>WWII </li></ul></ul><ul><ul><li>Baby Boomers </li></ul></ul><ul><ul><li>Gen X </li></ul></ul><ul><ul><li>Gen Y </li></ul></ul><ul><li>The challenge how to integrate these very different groups </li></ul>
  11. 11. Skills <ul><li>The Challenge </li></ul><ul><li>For Engineers: </li></ul><ul><ul><li>Identifying in-demand skills and positioning themselves to fill them through: </li></ul></ul><ul><ul><ul><li>Training </li></ul></ul></ul><ul><ul><ul><li>Applicable experience </li></ul></ul></ul><ul><li>For Employers </li></ul><ul><ul><li>Finding engineers with in-demand skills </li></ul></ul><ul><ul><li>Attracting/Retaining/ Training </li></ul></ul>
  12. 12. The Skills Market <ul><li>Software </li></ul><ul><ul><li>Java </li></ul></ul><ul><ul><li>Web 2.0 </li></ul></ul><ul><ul><li>Software as a service </li></ul></ul><ul><ul><li>Virtualization </li></ul></ul><ul><ul><li>IPv6 </li></ul></ul><ul><li>RF design </li></ul><ul><li>Analog Design </li></ul><ul><li>ASIC </li></ul><ul><li>Nuclear </li></ul>
  13. 13. Industries <ul><li>Critical Infrastructure Protection </li></ul><ul><ul><li>Government/private industry </li></ul></ul><ul><li>Utilities </li></ul><ul><ul><li>Nuclear Power </li></ul></ul><ul><ul><li>Green Power (solar – wind- geothermal - wave) </li></ul></ul><ul><li>IT </li></ul><ul><ul><li>Cybersecurity </li></ul></ul><ul><li>Green revolution </li></ul><ul><ul><li>Autos/Transportation </li></ul></ul><ul><ul><li>Buildings </li></ul></ul><ul><li>Biomedical/BioTech </li></ul>
  14. 14. Other Factors to Consider <ul><li>Salaries </li></ul><ul><ul><li>We’re not seeing salaries for professionals climb at a rate that shows a shortage </li></ul></ul><ul><ul><li>New Grads </li></ul></ul><ul><ul><ul><li>CS $53,000 (vs $60K in 2000) </li></ul></ul></ul><ul><ul><ul><li>EE $51,000 </li></ul></ul></ul><ul><ul><li>Working professionals 20 year EE – $108K (EE Times Salary Survey) w/avg increase 4% </li></ul></ul>
  15. 15. Other Factors to Consider <ul><li>Productivity </li></ul><ul><ul><li>Automation and tools </li></ul></ul><ul><li>Skills </li></ul><ul><ul><li>Training, gaining applicable experience and finding employment at appropriate level </li></ul></ul><ul><li>Impact of outsourcing and use of foreign temp labor </li></ul>
  16. 16. What About the Boomers? <ul><li>Working later, by choice or as a result of current economic situation </li></ul><ul><li>Large population that can be a resource to companies </li></ul><ul><li>Options to consider – </li></ul><ul><ul><li>Phased retirements </li></ul></ul><ul><ul><li>Job sharing </li></ul></ul><ul><ul><li>Telecommuting </li></ul></ul>
  17. 17. What good is productivity growth to workers?
  18. 18. Offshoring and the Long Term Impact on Engineers and Competitiveness <ul><li>Is offshoring the death knell for the engineering profession in the U.S.? Or will it lead to increased opportunities? </li></ul><ul><li>I believe the answer lies somewhere in between. </li></ul><ul><li>Offshoring will kill opportunities in some fields and industries, while opening up others. </li></ul><ul><li>The question is will we have trained people to take these positions and will they be positions people are interested in? </li></ul><ul><li>We shouldn’t presume that because positions are created that they will interest the current population. </li></ul><ul><li>How will we retrain and utilize engineers? What incentives will be provided to the engineer to move into new fields and relocate? </li></ul>
  19. 19. Impact of In-Shoring <ul><li>We really don’t know the impact of non – U.S. companies locating here. </li></ul><ul><ul><li>How many U.S engineers are being employed? </li></ul></ul><ul><ul><li>How many are bringing over their own employees – L1, H-1B? </li></ul></ul><ul><li>Could this lead to increased opportunity/challenges? </li></ul>
  20. 20. Competing in a Global Marketplace <ul><li>Doubling of global work force when China, India, x-Soviet join </li></ul><ul><li>Human resource leapfrogging: developing countries invest in university education; multinationals spread modern technology </li></ul><ul><li> trade, offshoring, immigration </li></ul><ul><li>Greater supply competition </li></ul><ul><li>Shift in balance toward capital </li></ul><ul><li> More difficult for market forces to help workers </li></ul><ul><ul><ul><ul><ul><li>Source: Richard Freeman </li></ul></ul></ul></ul></ul>
  21. 21. Opportunities <ul><li>Technologies </li></ul><ul><ul><li>Software </li></ul></ul><ul><ul><li>Semiconductors </li></ul></ul><ul><ul><li>Sensors </li></ul></ul><ul><li>Industries </li></ul><ul><ul><li>Power </li></ul></ul><ul><ul><li>Telecom </li></ul></ul><ul><ul><li>Defense and Homeland Security </li></ul></ul><ul><li>In-sourcing </li></ul><ul><ul><li>Semiconductor </li></ul></ul><ul><ul><li>Automotive </li></ul></ul><ul><li>Applications </li></ul>
  22. 22. Realities of Competing in a Global Market <ul><li>The $800 engineer </li></ul><ul><ul><li>A Russian engineer with 25 years experience vs a U.S. engineer with 25 years experience and a 96K salary </li></ul></ul><ul><ul><li>If the work doesn’t involve national security or local customer interface – who gets the job? </li></ul></ul>
  23. 23. Differentiating Yourself - Engineers <ul><li>Skills are not enough, engineers need to have: </li></ul><ul><ul><li>Business knowledge </li></ul></ul><ul><ul><ul><li>New business models </li></ul></ul></ul><ul><ul><li>Understand the customer’s needs </li></ul></ul><ul><ul><li>Learn how to apply skills in new areas </li></ul></ul><ul><ul><li>Create own opportunity – consulting- start up. </li></ul></ul>
  24. 24. New Ways of Thinking for Engineers <ul><li>Technology: What are the key emerging technologies and how are they being used inside and outside your industry, company and region to create proprietary advantage? </li></ul><ul><li>Business Models: Are there new business models emerging that you can adopt or adapt to deliver radical improvements in the way you and others do business? Will these improvements drive profitable growth by creating proprietary advantages in the way you do business? Can you expand not just “your share of market” but also “your share of wallet” by adding new business models – for example – if you currently have a product business, can you add information, services or solutions? Can you expand into adjacent businesses by either taking over activities that use to be done by someone else in your industry, expanding into new markets, or adding new products? </li></ul><ul><ul><ul><ul><li>Source: Lynda Applegate Jump Starting Innovation HBR 9/24/07 </li></ul></ul></ul></ul>
  25. 25. Differentiating Yourself - Employers <ul><li>How do your differentiate your company from others? </li></ul><ul><ul><li>What makes your company the one to work for? </li></ul></ul><ul><ul><li>Money? </li></ul></ul><ul><ul><li>Technology? </li></ul></ul><ul><ul><li>Flexibility? </li></ul></ul><ul><ul><li>Making a difference? </li></ul></ul><ul><ul><li>The “It” factor? </li></ul></ul>
  26. 26. Legislative Reponse <ul><li>Legislative solutions to limit or prohibit offshoring will not succeed, however there will be a need to develop incentives for retraining and hiring of engineers. The U.S. also has challenges when looking into having a population of engineers to work for the Federal government (and states also) along with developing the next generation of defense systems and maintaining today’s systems. </li></ul>
  27. 27. Legislative/Policy Changes <ul><li>COMPETES – Focus is on STEM, R&D, but nothing for industry professionals </li></ul><ul><li>Tax incentives for companies, why not individuals – training, relocation </li></ul>
  28. 28. What Others Think <ul><li>Succeeding in the Global Economy A New Policy Agenda for the American Worker – Authors: Aldonas/Lawrence/Slaughter – Sponsor The Financial Services Forum </li></ul><ul><li>Calls for a new policy agenda with innovations to facilitate adjustment by workers, communities and firms </li></ul>
  29. 29. Adjustment Policies - Individuals <ul><li>Combine Unemployment insurance and current Trade Adjustment Assistance program into a single Integrated Adjustment Assistance program </li></ul><ul><ul><li>Wage insurance </li></ul></ul><ul><ul><li>Portability of health insurance </li></ul></ul><ul><ul><li>Assistance with geographic relocation or establishing a new business </li></ul></ul><ul><ul><li>retraining </li></ul></ul>
  30. 30. Adjustment Policies - Individuals <ul><li>Congress should allow individuals to deduct from their gross income for tax purposes the full cost of education and training expenses even when directed at preparation for an entirely new career </li></ul>
  31. 31. What’s Happened Before? <ul><li>1989 NSF Future Scarcities of Engineers and Scientists </li></ul><ul><ul><li>Lead to similar effort, but by 1991 the Peace Dividend had kicked-in and engineering unemployment grew to new records – surpassed by DotCom implosion </li></ul></ul><ul><li>New Economy of the 90’s – DotCom </li></ul><ul><ul><li>We’re still impacted by what happened during this period </li></ul></ul>
  32. 32. Conclusion <ul><li>Who will win the great talent chase? </li></ul><ul><li>Companies that are flexible and open to change </li></ul><ul><li>Companies that are willing to be as innovative in employment as they are in technology </li></ul><ul><li>Provide opportunities and encourage employees to take control of their careers and contribute to the success of the business </li></ul>
  33. 33. Thank You !
  34. 34. Resources <ul><ul><li>Succeeding in the Global Economy available at: </li></ul></ul><ul><ul><li>IEEE-USA Website – </li></ul></ul><ul><ul><li>EETimes </li></ul></ul><ul><ul><li>The Offshoring of Engineering – National Academy of Engineering – </li></ul></ul><ul><ul><li>Michael T. Gibbons - Engineering by the Numbers – </li></ul></ul>