Presentation on theme: "From Capitalism to Talentism"— Presentation transcript:
1 From Capitalism to Talentism ENTERING THE HUMAN AGEFrom Capitalism to TalentismManpowerGroup (NYSE:MAN), world leader in innovative workforce solutions, announced at the World Economic Forum (WEF) in Davos, Switzerland, the dawn of a new world era; the Human Age.
3 Do you know? Connect over 500,000 people to meaningful work every day ManpowerGroup Proprietary InformationDo you know?Connect over 500,000 people to meaningful work every dayNearly 4,000 offices across 82 countries around the worldOver 10.5 million people trainedThe world’s largest outplacement firmOver 30,000 employeesThe global leader in Recruitment Process OutsourcingInterviewed 12 million people in 2010The world’s largest IT professional resourcing firmOver 80% of revenues generated outside the U.S.Over 400,000 clients ranging from small/medium sized businesses to Global Fortune 100 companiesLargest global vendor-neutral MSP providerConnected the potential of 4 million people to the ambition of business from the CEO level to the factory worker.
4 Globally Recognized Leader ManpowerGroup Proprietary InformationGlobally Recognized LeaderRecent AccoladesRanked #1 in Industry: Temporary Help on Fortune’s list of the World’s Most Admired CompaniesNamed to the Dow Jones Sustainability Index third consecutive yearRanked top overall MSP performer by buyers and suppliers in their 2010 report.Listed on FTSE4 Good Index SeriesRanked #1 in global RPO revenueFirst in Social Responsibility and Global Competitiveness among staffing industryManpower Inc. RPO offering ranked in top 5 in HRO Today’s Global Market Leaders ListAmerica’s Most Shareholder-Friendly Company for fourth year in a rowRanked highest in scale, technology capability and global delivery footprint in their 2011 reportManpower Japan helped Apple reach its goal of 90 percent customer satisfaction at its call center in SapporoOne if the Greenest Big Companies in AmericaEthisphere named Manpower Inc. one of the Most Ethical Companies for 2011.Ranked 143rd on the 2010 Fortune 500Ranked 1,440th on the Global 2000
5 ManpowerGroup Proprietary Information We are pioneering what it means to be an innovative workforce solutions company not only for our industry, but for the wider business services sector and ultimately for the benefit of our existing and future clients and candidates. We have an unmatched global footprint with local expertise and understanding of each market in which we work, and take a holistic view of the world of work – gained by interviewing more than 12 million people each year and working with hundreds of thousands of companies of all sizes globally. This insight means we have a deep understanding of human potential and are uniquely positioned to offer innovative workforce solutions that help organizations and individuals win.”
6 We’ve evolved as you’ve evolved… ManpowerGroup Proprietary InformationWe’ve evolved as you’ve evolved…19482011Temporary help agency“Fire engine” company (used in emergencies)Workforce management servicesEmployment services companyInnovative workforce solutions providerWe have been helping you all along…We were there for you when you needed temporary help…As you’re needed more HR support, we were there for you with RPO…As the economy up and downturns, we were there for you with outplacement, workforce productivity, flexibility and efficiency services…And as talent becomes the new “it” - - we’ve evolved again… to help you win in the Human Age…[This evolution of the Manpower Inc. brand is designed to respond to this new world era, and marks the next chapter for a company that has pioneered what it means to deploy innovative workforce solutions.We’re evolving again to help you win in the Human Age…
7 Macro-Economic Forces Changing the World ManpowerGroup Proprietary Information7Macro-Economic Forces Changing the WorldThe Global ReadjustmentTalentism[Use your TYSP Future Forces section and look for stories/examples that demonstrate trends…]The world is adjusting, and will continue to adjust, due to geo-economic shifts, compounded by the threat of social bifurcation.Emerging markets are rising in power, while developed markets seem to be more challenged, significantly impacted by the demographic landscape.And technology will exponentially increase the transparency and access to information and individuals.I want to talk about what you’re all feeling… through conversations like this, we are able to help distill what you’re feeling…The global readjustment is about shifts in economic power and dynamics at play forcing companies to look at their decisions around talentWhen you look at what is happening in different countries around the world, increased protectionism, increased spread between the “haves” and “have-nots” … China for example is tuned into this and has built a middle class at a pace never seen before – at Manpower, we look at this and think about what it means to talent and the implications to companies and individuals and offer solutions to navigate and succeed.Technological revolutions are causing disruptions…The world is changing…Social BifurcationTechnological Revolution77
8 The post-recession brings new challenges ManpowerGroup Proprietary InformationThe post-recession brings new challenges190 mioX2By 2050, Europe will have almost twice as many people over the age of 55, as under 15.More than 190 million people live outside their countries of birth – 3% of the world's population. Roughly one of every 35 persons in the world is a migrant, and their number is growing at almost 3% annually50%3rdBRIC countries represent 40% of the worldwide population and 50% global economic growth. By 2020, their GDP will more than double .If Facebook were a country, it would represent the third largest country in the world
9 Talent is emerging as the new “IT” ManpowerGroup Proprietary InformationCapitalism TalentismThe implication is that talent - as capital once was - is becoming the scarce resource in the economic world and a nation or corporation’s means of attracting, mobilizing and liberating talent will be a key competitive differentiator.Human potential will be the major agent of economic growth, and how to unleash then leverage that potential will be the key question organizations will need to answerWe have concluded that Talent is the new it - - Being involved in this everyday, we have invented / coined the term “Talentism” because “Capitalism” is shifting to “Talentism,” where it matters less if countries and companies can access the capital they need and more if they can attract the talent they need to win.Think back to the McKinsey paper 10 years ago that concluded that there will be a “war for talent” - - and what they meant by that was, it’s a war for key talent - - so if you have ie: “3 good executive leaders” you’ll be fine.What Manpower has identified as different about this time – is that there is a “war for talentS” - -and what we mean by that is that now, every position is important! Margins are SO compressed that it matters all the way from having the right executives you need through to having the right janitor in your company. Everyone is having to do more with less, so organizations have gotten SO specific about that types of skills – not just technical skills – that they need in each role, that now it’s about getting the right/best (as defined by the organization) talents they need to achieve their goals. These are the issues facing our clients.So, if all that matters now is talent, talent is emerging as the new “it.” This is why you, as business leaders, need to raise this issue in your company.What is Talent“Talent isn’t just people, it’s more than people” added Joerres. “It’s the person that fits what you need right now; the skills, the behaviors, the way of operating; the ability to operate in a chaotic, global environment. Talent is specific. In the past, for companies to grow their business, they needed access to capital. What we’re seeing now and what we’re hearing from the companies we’re dealing with is that in order to get ahead you have to have access to talent – not just capital. As this process evolves, we’ll see capitalism shifting to talentism, and access to talent, rather than capital, become the definitive competitive advantage.”Talent is emerging as the new “IT”
10 The world is entering a new era… ManpowerGroup Proprietary InformationThe world is entering a new era…Eras defined by the raw materials people bent to their will.Information AgeIndustrial AgeHuman age will bring bring complexityneedf for : innocation, procutivity . Those who can optimize human potntail will be the sinngle most imporatnt determinatnof future business success and grwoth.n potentail will be the winnnersFor example, China just released their 10 year master plan for talent development: couple highlights:Shift populatin dividend to talent dividend (less about # and more about qwuality)2. ehapzise attracting human capital forom former strategy of attracting finincail captiaslMove from made in china to created in china to change mindset of their peopleThey see this as key competitive differentiatorWe are entering an new era and it is creating complexity and opporutnity in the marketplace and more specifically in the wowStone-Bronze-Iron AgeEras defined by the domains that people conquered with ever-increasing technology.
11 This is creating complexity and opportunity in the marketplace ManpowerGroup Proprietary InformationThe Human AgeThe world has entered a new age and it’s having profound effects on people. It will be the power of human potential that drives companies and communities forward.Human Potential will become the major agent of economic growth, as the world’s only source of inspiration and innovation.Era defined by the ingenuity of individuals and of the community.Human age will bring bring complexityneedf for : innocation, procutivity . Those who can optimize human potntail will be the sinngle most imporatnt determinatnof future business success and grwoth.n potentail will be the winnnersFor example, China just released their 10 year master plan for talent development: couple highlights:Shift populatin dividend to talent dividend (less about # and more about qwuality)2. ehapzise attracting human capital forom former strategy of attracting finincail captiaslMove from made in china to created in china to change mindset of their peopleThey see this as key competitive differentiatorWe are entering an new era and it is creating complexity and opporutnity in the marketplace and more specifically in the wowThis is creating complexity and opportunity in the marketplace
12 ManpowerGroup World of Work Trends: Indicators of the Human Age ManpowerGroup Proprietary InformationManpowerGroup World of Work Trends: Indicators of the Human AgeManpower has identified these World of Work trends as indicators that we are entering the Human AgeWe see so much of this change.Organizations that focus only on an annual hiring plan, rather than considering the implications that these trends and changes will have on their workforce longer-term, will be in trouble…Implications to you…The pressure to do more with less has intensified, increasing competition.Technology is enabling the rapid and unfiltered exchange of opinions, ideas and innovation.Power is shifting from employer to individual, requiring a one size fits one approach and engagement on a human level.The shifting demographic landscape is creating a talent shortage; making it extremely difficult to find the right talent in the right place at the right time.******Global forces, including the recession, rapid technological development, a shifting demographic landscape and the rise and fall in power of emerging and developed markets are conspiring to bring about the Human Age, and the velocity of change is increasing.As organizations and governments realize that the only path to success is through unleashing human potential, and providing an appropriate environment in which to do so, the motivations and preferences of individuals will become increasingly important. Technology and the growth of social media have led to a new level of transparency and the ability to directly engage and have a human-to-human conversation with almost anyone – whether as employer to employee or retailer to consumer.Source: Manpower Inc.12
13 ManpowerGroup Proprietary Information Demographics and the talent mismatch are increasing the pressure to find the right skills in the right place at the right time as working age populations decline, economies rebound, emerging markets rise, and the nature of work shifts.In an economic environment where organizations are pressured to do more with less, businesses and governments will continue to demand more specific skills and behaviors. The pressure to find the right skills in the right place at the right time will increase as working age populations decline, economies rebound, emerging markets rise, and the nature of work shifts. This will intensify the skills mismatchIMPLICATIONSOrganizations need an agile talent strategy to attract and retain the talent required to achieve their business strategy• Leadership requires a shift in definition and investment• Critical skill shortages will accelerate the mobility of workers and work• Demographic shifts will increase the pressure to keep older workers engaged in the workforce longer• Bifurcation of the workforce by skills and demand is accelerating• Continuous training and development of the workforce will be required in order to maintain a job-ready workforce• Government will play a larger role in navigating the skills mismatchBy 2020, the US economy’s demand for labor will outstrip supply by almost 18 million people.Only 1 in 4 Chinese graduates is meeting the expectations of their employer, forcing companies to look abroad for their talent.Specificity of jobs like we’ve never seen beforeCompanies can’t afford “idle hands on deck” - - idle hands = COSTSFrance, Japan, Italy – are in trouble - - they have the highest (amount) aging population and the lowest immigration…Japan is now looking at Dahlian (the “Silicon Valley” of China) for talentMexico – growth rate going down - -Russia – engineers - - going down…CONUNDRUMS … If you’re going to grow our business… why would you do in a placeDraw industry parallels: ie: Ball Corp… as manufacturer of cans… you wouldn’t say you’re going to grow by X% without understanding what the available supply of aluminum is… WHY WOULD YOU DO THAT WITH TALENT????Statoil example - - WRONG ASSUMPTIONS>>> NEED TO BE LOOKING AT THE DATA….Need to re-think assumptions… needed oil engineers… planning to get them from Russia - - showed them the data - - graduate rate of engineers - - declining!!!!!SO - - Who is going to own this???For most of the twentieth century, the assumption that the working-age population would continue to grow formed the basis for future workforce planning.However, this assumption simply no longer holds. Most countries around the world are experiencing a significant decline in the rate of growth of the1 out of every 10 persons is 60 years old or above; by 2050, 1 out of 5 will be 60 or older.working-age population
14 TALENT RACE: UBS FILLS KEY ASIA POST ManpowerGroup Proprietary InformationTHE BATTLE FOR BRAINPOWERThe EconomistConstruction holds key to rebuilding jobs marketFinancial TimesYes, the Tech Skills Shortage is RealInformation WeekPLUMBERS SLIPTHROUGH THE CRACKSThe AustralianSearch for a workable solutionFinancial TimesPilot shortages continue to plague India’s airline industryFinancial TimesBEWARE TALENT CRUNCH IN ELECTRONICSInternational Business TimesGray Matters in Booming ChinaWall Street JournalFactory Jobs Return, but Employers Find Skills ShortageNew York TimesTALENT RACE: UBS FILLS KEY ASIA POSTWall Street JournalNEW MANAGEMENT TALENT CRUNCH LOOMSNewsweekFirms Battle To Fill Roles Despite Jobless JumpWaikato TimesChina proves toughest frontier for India’s outsourcersFinancial TimesHigh Unemployment ‘is due to skills mismatch’Reliable PlantEmployers urge migration cap caution, worry skills shortage could send UK jobs overseasAssociated PressTalent Shortages Continue Despite Global RecessionInternational Business TimesSKILLED JOBS ‘LOST’ INRACE FOR A DEGREEDaily MirrorWe recognize that employers in different sectors and countries across the world are struggling to find the talent they need to accelerate their business, despite relatively high levels of unemployment, and this is something we are seeing and hearing on a daily basis from our clients and from the media.This suggests that there is a mismatch between the talent that employers need and the talent that is available – in this challenging new era epic shifts are converging to create a complex new environment; the Human Age.MINISTER LAMENTS SKILLS SHORTAGEJakarta PostGermany Suffers a Labor ShortageWall Street JournalIndia: DesperatelySeeking TalentBusinessweekChild’s play to nurture next generation of engineersFinancial Times14
15 The Talent Mismatch Illustrated ManpowerGroup Proprietary InformationThe Talent Mismatch IllustratedLack of resources creates tension on the high demand skills marketDemand for skillDon’t be fooled by unemployment rates… there is an oversupply of labor and an undersupply of talentCan get into need for education…Oversupply of low or wrongly skilled resources generates under- employment and unemploymentSupply of skillSource: Confronting the Talent Crunch: A Manpower White Paper15
16 1 in 3 Employers Worldwide Can’t Find Talent ManpowerGroup Proprietary Information1 in 3 Employers Worldwide Can’t Find TalentPERCENTAGE OF EMPLOYERS HAVING DIFFICULTY FILLING JOBS DUE TO LACK OF AVAILABLE TALENTWhen asked, “What is the one job you are having the most difficulty filling due to lack of available talent?” globally employers named technicians, sales representatives and skilled trades workers most frequently for the fifth year in a row. Technicians moved to the top of the list from third place last year, and skilled trades dropped from first on the list to third. Engineers also remain in high demand (number four on the list), while laborers jumped to the fifth most difficult to fill position.ManpowerGroup 6th Annual Talent Shortage Survey16
17 ManpowerGroup Proprietary Information Global ResultsGlobally, employers report the most difficulty filling positions in the following countries:1Japan (80%)6USA (53%)2India (67%)7Argentina (52%)3Brazil (57%)8Turkey (51%)4Taiwan (54%)9Switzerland (48%)5Romania (54%)10New Zealand (46%)17
18 Manpower Talent Shortage Survey (2011) ManpowerGroup Proprietary InformationManpower Talent Shortage Survey (2011)36% of Belgian employers have difficulties in filling jobs as a result of talent shortage.Manpower is conduction his Annual Talent shortage SurveyThe war for talent is strong aroundthe world18
19 GLOBAL RESULTS: Top 10 Jobs Employers Are Having Difficulty Filling 1 ManpowerGroup Proprietary InformationGLOBAL RESULTS:Top 10 Jobs Employers Are Having Difficulty Filling1Technicians7Accounting & Finance Staff2Sales Representatives8IT Staff3Skilled Trades Workers9Production Operators4Engineers10Secretaries, PAs, Administrative Assistants & Office Support Staff5LaborersWhen asked, “What is the one job you are having the most difficulty filling due to lack of available talent?” globally employers named technicians, sales representatives and skilled trades workers most frequently for the fifth year in a row. Technicians moved to the top of the list from third place last year, and skilled trades dropped from first on the list to third. Engineers also remain in high demand (number four on the list), while laborers jumped to the fifth most difficult to fill position.6Management/Executives19
20 Belgium - Top 10 Jobs Employers Are Having Difficulty Filling ManpowerGroup Proprietary InformationBelgium - Top 10 Jobs Employers Are Having Difficulty Filling1Technicians7Accounting & Finance Staff2Sales Representatives8IT Staff3Skilled Trades Workers9Production Operators4Engineers10Secretaries, PAs, Administrative Assistants & Office Support Staff5Laborers6Management/Executives[Insert your country’s top 10 most difficult to fill jobs]
21 Belgium - Impact on Stakeholders ManpowerGroup Proprietary InformationBelgium - Impact on Stakeholders[Insert your country results – Impact on stakeholders]
22 Belgium - Reasons for Difficulty Filling Jobs ManpowerGroup Proprietary InformationBelgium - Reasons for Difficulty Filling Jobs[Insert country results here – main reasons employers are having difficulty filling jobs]
23 Belgium - Overcoming the Talent Shortage ManpowerGroup Proprietary InformationBelgium - Overcoming the Talent Shortage[Insert country results here – what actions employers are taking to confront the talent shortage]What strategies are you pursuing to overcome these difficulties?
24 ManpowerGroup Proprietary Information Individuals are exercising the power of choice in all situations, choosing for and against opportunities. The increased specificity of skills that employers are seeking, coupled with the increased confidence in choice that individuals are exercising, is profoundly impacting governments, organizations and individuals worldwide.The talent mismatch, combined with the multiple generations in the workforce – who bring a variety of motivations and preferences – has accelerated the shift of power from employer to individual and will change how organizations attract, engage and retain talent. Those individuals with the ability, access and self-motivation will benefit from the shift of power from employer to individual. Those individuals with general, mainstream skills, shared by many, will be marginalized unless they improve their skills and workplace relevanceIMPLICATIONSCompanies need to better understand individuals’ motivations and work preferences, and the impact they have on their talent strategy – one size no longer fits all – one size fits one• Companies need to understand how to attract, engage and manage the multi-generational workforce• Companies will need segmented candidate attraction models, well-designed people practices and employee experiences to retain the talent they need• Companies’ employer brand and reputation will become increasingly important• Individuals will need to take more responsibility and ownership for their careers and development• Governments and public / private partnerships will play a much broader role inIndividual Choice is eliminating the one size fits all approach and elevating the need for one size fits one.
25 One Size Does Not Fit All ManpowerGroup Proprietary InformationOne Size Does Not Fit AllTraditionalistBornBoomerBornGeneration XBornGeneration YBornHierarchicalIdealisticPragmaticImmediacyMore generations in the workforce … means more tensions in the system…Everyone has a story to tell about dealing with this…Would anyone like to share?Each generation approaches work differently, shaped by the economic, social and political forces of their time.Tammy Erickson, Photo Credits; Alfred Eisenstaedt, Getty Images, People Magazine, Padre Steve
26 Job for life is not any more popular Job hopping is the new trend ManpowerGroup Proprietary InformationJob for life is not any more popularJob hopping is the new trendHow many employers do you expect to have once you reach the age of retirement?How many employers did you effectively have at the end of your career?6,4 vs 3,16,4Job for life is not any more popularJob hopping is the new trendHow many employers do you think you would have when you will reach the age of retirementHow many employers did you have when you get retiredManpower Belgium survey – 2011
27 ManpowerGroup Proprietary Information Skilled individuals – in increasingly short supply – will dictate their terms to employers, of how, where and when they workThey will gravitate toward industries which offer the best commitment to corporate sustainability, and offer the best career development optionsSkilled individuals—in increasingly short supply—will dictate their terms to employers, of how, where and when they work. They will naturally gravitate toward industries which offer the best career development options, display a commitment to corporate social responsibility and contribute to the communities where they are located.
28 ManpowerGroup Proprietary Information Customers have more access to information, experts and lower cost channels which increases visibility and subsequent pressure on companies to deliver value. Employers have become more sophisticated in assessing their workforce and are looking for specific skills that enable their companies to do more with less to meet ever-rising consumer needsHow many of you have the same margin in your business as you did 5 years ago?The world is more connected now… supply chains and margins are compressed…Customers’ operating and purchasing behavior is more global and sophisticated, increasing the complexity of their relationships and the specificity of their demands. Customers have more access to information, experts and lower cost channels which increases visibility and subsequent pressure on companies to deliver value.IMPLICATIONSResponses and solutions to the market will need to be:- Faster - Differentiated- More agile - Global• Small and medium sized businesses have the capability to mobilize and increase their number of alliances and relationships to compete with larger and global companies, creating more complexity in the marketplace• Intensified price / value compression puts increased pressure on the productivity of a company’s workforce• Companies’ success is no longer only based on access to capital – now, talent has become a key differentiator• Companies’ practices are under increased scrutiny; therefore, they must stand up to total transparency
29 ManpowerGroup Proprietary Information In a global inter-connected world your customers know more and expect more.Customers have more access to information, experts and lower cost channels which increases visibility and subsequent pressure on companies to deliver value. Employers have become more sophisticated in assessing their workforce and are looking for specific skills that enable their companies to do more with less to meet ever-rising consumer needsCustomers’ expectations around price and value will rise, shifting the key competitive differentiator from a company’s access to capital to access to talent.Pressure to deliver value has intensified, requiring everyone to do more with less.
30 In a global inter-connected world, your customers know and expect more ManpowerGroup Proprietary Information30In a global inter-connected world, your customers know and expect moreJob titles with corresponding salary ranges are supplied anonymously by both companies and employeesCompany rating, accolades, and a CEO rating (by site members) but focuses more on the uncensored text reviews from a company’s applicants, employees and alumniCompany-supplied shots as well as any photos that employees have chosen to upload to glassdoor.com or share on FacebookUncensored, detailed accounts (written by site members) of a company’s interview process and the overall experience of the applicantCustomers have more access to information, experts and lower cost channels which increases visibility and subsequent pressure on companies to deliver value. Employers have become more sophisticated in assessing their workforce and are looking for specific skills that enable their companies to do more with less to meet ever-rising consumer needsCustomers’ expectations around price and value will rise, shifting the key competitive differentiator from a company’s access to capital to access to talent.Pressure to deliver value has intensified, requiring everyone to do more with less.30
31 ManpowerGroup Proprietary Information Rapidly changing technology and greater global arbitrage increases individuals’ and organizations’ choice of where, when and how work is performed, and with whom.If Facebook were a country, it would be the third largest country in the world.80% of employers are using LinkedIn as the primary tool to find employees.More than 70% of US four-year-olds have used a computer.More than 50% of US 21-year-olds have created content on the web.Social networks that evaluate employers (ex: Glass Door, Vault.com…)Are you using these to your advantage or ignoring them???IMPLICATIONSIncreased transparency has changed the definition of what is valuable data• More unsubstantiated information increases the importance of verification, certification, validation and overall trusted advisor position• Rapidly changing technology and greater global arbitrage increases individuals’ and organizations’ choice of where, when and how work is performed, and with whom• Instant and transparent links between individuals increases scrutiny of individuals and organizations, elevating the importance of reputation management for both employees and employers• Workplaces and practices will need to be environmentally-friendly and drive sustainability due to society’s focus on reducing carbon footprints• Increased speed of automation and integration of processes to improve productivity
32 Technology is a great liberator of global potential ManpowerGroup Proprietary InformationTechnology is a great liberator of global potentialIt allows the talented individual to undertake professional jobs anywhere in the world, and gives employers access to talent on a global scaleIt took nearly 20 years to attract the first 100 million mobile phone subscribersIt took less than 3 years to attract the next 200 million subscribersBrazil is the leading country in terms of time spent on social networking sites, followed by Australia, Italy, US, Spain, Japan and the UK
33 Technology has long transformed the way we work ManpowerGroup Proprietary InformationTechnology has long transformed the way we workTalent can be accessed anywhereWhich means that competition is everywhereManpower looks at what this means to your workforce – how to leverage it for increased engagement, productivity, creativity and innovation!Talent can be virtually accessed anywhereCompetition is everywhere
34 ManpowerGroup Proprietary Information We have identified that the world has entered the human age…
35 Job hoppingWe are entering a new age. This is creating complexity and also opportunity in the marketplace… and more specifically, the world of work…This means we are likely to see a shift in power from the organization to the individual. As talent becomes the key competitive differentiator for employers, skilled individuals will increasingly be able to dictate terms to employers, around how, where and when they work. Technology will continue to liberate; redefining concepts of flexible and collaborative working, allowing some skilled individuals to vault the restrictions of national borders and migration caps, and organizations to take advantage of a geographically disparate workforce.This new reality is creating new societal norms. New ways of doing business are required both for the individual and for companies to succeed. How you organize yourself as a company, how you’re able to get work done in a different way, such as through virtual work, teaming, collaboration. The whole way of acting as an individual in a global environment is changing rapidly.” said Joerres. “Those who are able to harness the passion and innovation of the human spirit will be those that will win in this new, foreign world where we have to do more with less. Those who don’t sit up and take notice of this will quickly be left behind.”The Human Age presents a challenging and exciting opportunity for organizations to leverage the potential of their greatest asset – their people – to drive the business forward. The recession, combined with advances in technology, expectations of business transparency and social mobility, have brought us to the cusp of a new age. Now, governments, businesses and individuals must work together to unleash the potential of the human spirit, that will help us to make sense of this new era.
36 We Know it’s Resonating! ManpowerGroup Proprietary InformationWe announced our identification of the Human Age at the World Economic Forum in DavosCEO of Manpower: We Have Entered “The Human Age”36
37 ManpowerGroup Proprietary Information So, what…?Winning in the changing world of work requires a New Way of thinking about and approaching your workforce.We see so much of this change.Organizations that focus only on an annual hiring plan, rather than considering the implications that these trends and changes will have on their workforce longer-term, will be in trouble…Implications to you…The pressure to do more with less has intensified, increasing competition.Technology is enabling the rapid and unfiltered exchange of opinions, ideas and innovation.Power is shifting from employer to individual, requiring a one size fits one approach and engagement on a human level.The shifting demographic landscape is creating a talent shortage; making it extremely difficult to find the right talent in the right place at the right time.
38 Are you prepared? ManpowerGroup has found that: ManpowerGroup Proprietary InformationAre you prepared?ManpowerGroup has found that:46% of HR leaders globally consider their talent gap a risk to achieving their business strategyJust 27% of HR leaders feel their business has the talent it needs to winOnly 25% of HR leaders feel their current workforce is agile enough to react to future market forcesManpower Workforce Strategy Study (PART I)2010 Global findings are based on the following:37,866 employees11,002 in Americas11,125 in Asia Pacific15,739 in EMEA
39 The Human Age is Creating Complexity ManpowerGroup Proprietary InformationThe Human Age is Creating ComplexityThere are new demands for:ProductivityInnovationTalentThis new age is creating chaos and complexityNew demands for productivity, innovation, talent39
40 Structural changes are causing a fundamental shift requiring ManpowerGroup Proprietary Information40Structural changes are causing a fundamental shift requiringThe redesign of business modelsThe redefinition of value propositionsThe reinvention of social systemsBusiness models - - skype… transatlantic calls …Value propositions - - more transparency, need to deliver a unique experience…Social systems - - protectionism… bifurcation…Organizations are having to rethink how they conduct things like R&D - - they are/need to consider new/different ways to do this… maybe crowdsourcing is an option? They need to consider what to crowdsource, how much…Look at the impact of social media - - organizations are having to look at this as “commercial media” - - as a way to conduct work/businessAnd all of this means that if you’re not thinking about talent in a different way - - you will be at a disadvantage…40
41 This means you need to re-examine your assumptions about: ManpowerGroup Proprietary InformationThis means you need to re-examine your assumptions about:SourcesTalentPeople PracticesWork ModelsWork models – if you’re not using virtual work – maybe you should be?People practices – with one size fits one, how should you adjust your development philosophy? Etc..Talent sources – how can you leverage labor arbitrage? Where will you find the people you need?
42 How Will You Unleash Your Workforce’s Potential? ManpowerGroup Proprietary InformationHow Will You Unleash Your Workforce’s Potential?How do we manage the talent ecosystem to drive productivity?How do we manage a diverse and virtual workforce?How do we inject flexibility into our workforce mix?Work ModelsToday’s practices were created with out-dated assumptions – so why are will still using them?What new practices will we need in order to attract, develop and retain the talent?People PracticesIn the Human Age, it is more important than ever that companies take the time to understand exactly what their talent needs will be, not just now but five or ten years down the line - and align their talent strategy closely with their business strategy. Then, they must become more agile in terms of how they attract, retain and develop their employees. Employers need to ensure that they update their workforce structures and people practices to allow them to unlock the potential that they need to thrive in this new realityWork Models-How to we manage the talent ecosystem of “permanent” employees, consultant, contractors, outsources,contingent , retiree, crowdsources etc to drive productivityPeople Practices-Management theory and people practices of today were developed in the 20th century before : globalization, desk top computers, PDAs and transparency created by the webWe need to rethink:How, where and who we hire?How, where and when we develop?How, and for what do we incent people for ?What is leadership?What is a team?What is work?What is an employee?How do we deliver an experience and add value to a customer?How do we leverage collaboration and drive not only productivity, but innovation in our people practices?Demand for knowledge workers will grow-supply will notTalent Sources-Talent supply can be improved thru:Educational PartnershipsBecoming an Educational “factory”Tapping into underutilized poolsOlder workersWomen/men looking for flexibilityIndustry migrantsIdentifying adjacent skillsAccelerating developmentRethinking work models: Part-time, crowdsouring, retireesHow will you improve your talent supply?What talent strategies do I need to reach undertapped and untapped talent pools?Talent Sources
43 ManpowerGroup Proprietary Information Work Model TrendsSpecialization of Work – more and more segmentation and specificity of work being demanded, particularly of knowledge work.Extreme Specialization of Work – dividing work into smaller and smaller tasks and distributing them via the Internet to many peopleVirtualization of Work – increasingly work is being performed from home by fulltime remote workers or contractors choosing more flexibility to choose when how and where they workIncrease of Freelancers – more people are willing to work on an outcome basis so that they can choose the work that they want to do, even at the risk of not being paid.Shift from Employee to Contestant – a rapid rise of virtual marketplaces pitting contestants against each other to win workSpecialization of work: not just an accountant, a forensic accountantExtreme Specialization of work: TopCoder has a community of 300k specialists, each competing to perform one element of a software buildVirtualization of work: Sparking a return to US based contact Centers; a recent IDC study confirmed that more than 40% of companies surveyed preferred their BPO providers to focus on a US based delivery modelDoing research with MIT Tom Malone right now on how specialization of work will impact…..
44 ManpowerGroup Proprietary Information People PracticesManagement theory and people practices of today were developed in the 20th century, before globalization, desk top computers, PDAs and the transparency created by the web.Need to rethink:What is a job vs. job description vs. success profile?What is an employee?What is leadership?What is development?How do we pay and for what?How do we drive productivity and innovation through our people practices?What are the new ways of thinking about and approaching work to accelerate business performance and get access to the talent we need?Demand for knowledge workers will grow=supply will not
45 Talent Sources: Managing the Talent Ecosystem ManpowerGroup Proprietary InformationTalent Sources: Managing the Talent Ecosystem?CommunitiesRetired TalentConsultant Talent PoolsPermanent EmployeesContingent Talent PoolsContractTalent PoolsThe Crowd – DoNanza Data confirmed more than 1 million work projects were distributed across 900+ marketplaces in 2010.Although extremely high risk for organizations and workers ManpowerGroup research confirms a savings of 67% in work provided in virtual marketplaces. Our opinion is that as this model matures the labor arbitrage will reduce as has been the case with emerging physical labor markets mature.Demand for knowledge workers will grow - supply will not.How will you improve the talent supply?Educational PartnershipsBecome an Educational factoryTap into underutilized poolsOlder workersWomen/men looking for flexibilityIndustry migrantsIdentifying adjacent skills – teachable fitAccelerating developmentRethinking work models: Part-time, crowdsourcing, retireesTalent/work mobility????CrowdOutsourcedTalent Pools
46 Do you have a Workforce Strategy Aligned to your Business Strategy? ManpowerGroup Proprietary InformationDo you have a Workforce Strategy Aligned to your Business Strategy?It is the New Way we believe that HR leaders should be thinking about work in the 21st century. We feel strongly that it all starts with an outside in view of the world. There was a time when external forces like the economy, customer competitive pressures and risk were the domains of the CEO ad the CFO. They formed the strategy and expected HR leaders to deliver the strategy. That was yesterday. Insight is needed to make better workforce investment and tradeoff decisions.A re-evaluation of assumptions and mindsets mandatory in this new reality.Deep and fresh understanding about the trends changing the world of work.It’s our time!!
47 THE HUMAN AGE can help you…. Are you ready for ManpowerGroup Proprietary InformationAre you ready forTHE HUMAN AGEcan help you….
48 1 . How my business & organisation will be impacted by these trends? ManpowerGroup Proprietary InformationDemographical changes &Talent MismatchRising customer sophisticationIndividual choiceTechnological revolution
49 2. How do I face the new challenges of The Human Age? ManpowerGroup Proprietary Information2. How do I face the new challenges of The Human Age?Organise talentDo I have the right work models in place to unlock the human potential that will drive my business forward?How do I inject flexibility in my workforce mix?Attract talentHave I identified the skills and talent that will be critical to my business? Is my employer brand strong enough to attract new talent?Develop talentAm I using technology to liberate human potential? What about social networks? How can I ensure the talent I have, fits my business models, now and in the future?Manage talentAm I earning loyalty, respect and engagement from my employees? How do I manage a diverse and virtual workforce in an increasingly volatile and shifting world? Which leadership style & people governance will suit the Human Age?
50 ManpowerGroup Proprietary Information “Companies who are able to harness the passion and innovation of the human spirit will be those that will win in this new and complex world where we have to do more with less”Jeff Joerres, Chairman & CEO ManpowerGroupWorld Economic Forum, Davos 2011