Presentation on theme: "Reskilling the Workforce Driving Strategic Change Through Learning"— Presentation transcript:
1 Reskilling the Workforce Driving Strategic Change Through Learning Dave WilkinsOSA Platform Lead
2 My Goals Today Help your career How? Show you new opportunities to add valueHelp you see the big pictureHow? Connect your mission to the larger business challenge of talentHow? Connect your mission to the larger talent challenges of the nationHelp you think differentlyHow? Pose some tough questions about where we’re heading
6 How many of you can:Accurately describe current attrition levels at your company?Accurately describe attrition for critical roles?List cost and time-to-hire metrics for critical roles?List the critical roles at your company?Describe the key capabilities for each critical role?Describe the typical career path people follow to get to these roles?Describe the critical experiences, skills, education for these roles?Articulate required workforce capabilities next year? Year after?Articulate company strategy and direction?
7 The Talent Business EY Top Business Challenges? #3 – Managing Talent
8 The Talent Business EY Top Business Challenges? #3 – Managing Talent “Nearly 20% report that people with the right skill sets are simply not available — a factor that may in part reflect weaknesses in educational systems. This is a weakness that is likely to get worse.”
9 The Talent Business EY Top Business Challenges? #3 – Managing Talent “Nearly 20% report that people with the right skill sets are simply not available — a factor that may in part reflect weaknesses in educational systems. This is a weakness that is likely to get worse.”
10 Why Skills Shortages? Aging Workforces Smaller Pipeline One of the recurring findings from economic research over the last few years is that volatility is here to stay.Does not really matter which index you look at: oil prices, exchange rates or housing starts the picture looks the same and its not one that is easy to predict.In addition to significant volatility in key indices there are a number of material trends and events that compound the situation:Economic growth –slowing BRIC economiesRegulation –Dodd-FrankSustainability—now a competitive and economic necessity to demonstrate sustainable business practicesDemographics—aging populations in many marketsTrade patterns—Asia, Europe, US, -- return of some onshoring, etcTechnology—cloud, big data, analytics, social, mobility, etcIn light of all this the challenges for modern businesses are magnified – how effective is a detailed annual budget when there is huge uncertainty about the next quarter never mind the next year?AgingWorkforcesSmaller PipelineCapability Mismatch
11 Aging Workforces Worldwide Country% GrowthRussia-8%Japan-5%Germany-4%PolandItaly-1%Greece0%France5%UK7%ChinaBrazil13%USA14%Mexico15%Turkey17%India24%Nigeria46%Slow growth, negative growth in developed worldFaster growth in developing worldIn US and UK growth is fueled through immigrationLess developed = more growthPopulation Growth
14 More older workers = fewer younger Those older workers who stay in the workforce do so at the expense of the young.When grandma finally retires, we will have 30 year olds with no work experience or near useless work experience.
15 More older workers = fewer younger Those older workers who stay in the workforce do so at the expense of the young.When grandma finally retires, we will have 30 year olds with no work experience or near useless work experience.
16 Younger workers less trained And we train them less… Ugghh OECD study of work-based skills taught in schools in 29 countriesU.S. ranks dead lastWharton School professor Peter Cappelli:In 1979, young U.S. workers: average of 2.5 weeks of training / yearBy 1995, average company offered just under 11 hours per year.By 2011, Accenture found that only 21% of all U.S. employees had received *any* employer-provided training in the past five years.
17 Capability mismatch“In 2011, when US unemployment exceeded 9 percent, a McKinsey Global Institute survey found that 30 percent of US companies had positions open for more than six months that they could not fill. Despite rising educational attainment across advanced economies, by 2020, the United States may have 1.5 million too few workers with college or graduate degrees and nearly 6 million too many who have not completed high school.”
18 Capability mismatch Up 4.6% McKinsey: Help Wanted Future of Work In 2011, 26 percent of employers in Europe reported having difficulty filling jobs for lack of qualified talent, particularly technicians and engineers—and 80 percent of Japanese companies reported the same problem.9 In another survey, two-thirds of European CEOs have said their key challenge in the next three years is the limited supply of candidates with the right skills.10
19 Capability mismatchUp 4.6%McKinsey: Help Wanted Future of Work
20 Nuances of The Great Recession During the Great Recession, what was the highest level of unemployment in the US?What was the highest level for people with a bachelors degree or higher?What was it for those with only a high school diploma?How many recruiters factored this into their strategies?
21 How recruiters see unemployment… Jobs I might be interested in… via LinkedInSocial Media ManagerRequirements:15+ years in senior roles in marketing10+ years of digital marketing5+ years of social media marketingExperience with transportation industry a mustStrong preference given for multi-lingual candidatesMBA candidates preferredDeep expertise in social media with strong personal brand and large follower networks
22 Geography mismatchMcKinsey: Help Wanted Future of Work
23 Structural unemployment “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.”
24 Who costs more: internal or external? One final wrinkle:Who costs more: internal or external?Who performs better?
25 External Hiring Costs More Delivers Less External hires aren’t as productive as internal hires; new research suggests that it takes 2 years to get “up to speed”External hires average shorter tenures than internal hiresExternal hires average lower performance reviewsHiring outside = risk to top performers and high potentialsWhy?
26 External Hiring Costs More Delivers Less External hires aren’t as productive as internal hires; new research suggests that it takes 2 years to get “up to speed”External hires average shorter tenures than internal hiresExternal hires average lower performance reviewsHiring outside = risk to top performers and high potentials“Lack of career development” is #1 reason for dysfunctional turnover“Training and development opportunity” is #1 driver of employee engagement“More opportunities to do what I do best” is #1 driver of employee engagement
27 External Hiring Costs More Delivers Less External hires aren’t as productive as internal hires; new research suggests that it takes 2 years to get “up to speed”External hires average shorter tenures than internal hiresExternal hires average lower performance reviewsHiring outside = risk to top performers and high potentials“Lack of career development” is #1 reason for dysfunctional turnover“Training and development opportunity” is #1 driver of employee engagement“More opportunities to do what I do best” is #1 driver of employee engagementDespite higher costs, external hires “get significantly lower performance evaluations for their first two years on the job than do internal workers who are promoted into similar jobs.”“Why External Hires Get Paid More, and Perform Worse, than Internal Staff”
33 “Companies should forecast, on a job family basis, how their current workforce will develop over the next 5, 10, and 15 years – taking into account expected recruitment, retirement, and retention. Next, companies should simulate different strategic scenarios to determine the number and type of human resources that their business will demand on a job family level over the same period. Once companies calculate the difference between their expected demand for and supply of labor, they should take dedicated steps to address anticipated shortfalls and surpluses. These steps include redeploying surplus resources to critical functions that are being drained of human resources, boosting internal training so that the current workforce can adapt and shift as needed, or even attracting and retaining retired or semi retired workers in areas with identified future shortfalls.”
34 redeploying surplus resources to critical functions that are being drained of human resources or even attracting and retaining retired or semi retired workers in areas with identified future shortfallsHow do you know who to move?And how will they get productive?And how do they get back up to speed?boosting internal training so that the current workforce can adapt and shift as neededHow do you identify the best candidates?And how will do you develop new capabilities?
35 The new talent landscape Build?Buy?Rent?Virtualize?Move people around?The ability to deliver *capability* in response to strategic shock and market opportunities will be a key business differentiator.And how do they get back up to speed?boosting internal training so that the current workforce can adapt and shift as neededAnd how will do you develop new capabilities?
37 Addressing the problem Know the team you haveKnow the team you needInvest in long-term capability developmentEmpower workers to do this themselvesSwitch your default to hiring from within
38 (1) Know Your Team Job history Work experience prior to current role Expertise developed outside of workSelf-identified expertise & peer-identified expertiseCareer aspirationsTop performers and high potentialsFlight riskRetirement plans
39 Top performer 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.
40 Know the people you have 48%feel that their work history & experiences are not leveraged by their employer75%say that their skills go unnoticedTaleo Research, UK Social Talent Management Report -
41 (2)Here to ThereUnderstand the capability requirements for the businessNew strategic plans?Geographic expansion?Map the gaps: what are you missing in order to meet objectivesAssess the best approach to fill-in gapsHire, contract, outsourceSkill, knowledge, capability developmentTalent transfer – talent mobilityVirtualize
42 Workforce Data – What do we know Employee EngagementCompetency Skill Gap AnalysisOpen \ Vacant PositionsTotal Turnover
43 (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 – job families?For critical and strategic roles, we need to think differently:Use paradigms of leadership development, cohorts and stagesUse paradigms of pilot and surgeon trainingScaffolding models, coupled with social models
44 Competencies are well-established 75% of companies use job / role competencies for selection & promotionOver half of organizations tie competencies to career planning91% report training improvements when training is tied to competenciesThe next step is to think about building capability. Capability is about business execution and implies not just competency, but experience, judgment, decision-making. You *develop* capability over time.
45 (4)Empower the TeamEmployees need to own their own career developmentMake sure it’s easier to move in your company than leave itEnable personal gap assessment between current skills and capabilities and desired career objectivesMap capability requirements to training and learning interventionsFormal content: WBT, classes, video, documentsSocial content: CoP, discussions, expert location, wikisAction learning: related roles, activities, stretch assignmentsInvolve the team in defining needs and interventions
46 (5)Switch Your DefaultExternal hiring costs 18-20% more than internal hiringExternal hires perform worse on performance evals for 24 monthsHigh 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
48 Your strategic roleSenior leaders are thinking about talent; it’s a key concernAgility is also top of mind due to recent and current world eventsDemographic shifts will increase this focus in coming yearsCompetitive global pressures will increase this focusEducational shortfalls will increase this focusGet ahead of this need by focusing of capabilities-driven learning programsUnderstand strategic direction for the futureMap the gapsDevelop a planEarn your seat
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