9/18/ Challenges That Keep HR and Diversity Professionals Up at Night. Agenda. What s Keeping Executives Awake at Night?
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1 Agenda 10 Challenges That Keep HR and Diversity Professionals Up at Night A Perfect Labor Storm Hiring and Recruiting Changes Emerging Best Practices Ira S Wolfe, Author and President of Success Performance Solutions September 21, Questions? Page 2 What s Keeping You Awake at Night? What s Keeping Executives Awake at Night? (HRE) Ensuring employees remain engaged and productive Retaining key talent Developing leaders Aligning people strategies to business objectives Controlling healthcare costs Driving culture change Strengthening the employer brand Training and developing the workforce Growing the business through innovation Compliance Page 3 Page 4 Mega-Trends Aging But Active Population Smart Technology Data Deluge Superstructured Organizations New Media Globalization Source: Human Resource Executives Source: Institute for the Future Page 6 1
2 Effect On The Workplace How can we attract skilled workers? How can we keep the talent we have? A Perfect Labor Storm How can we develop competitive enterprise wide bench strength? How can we attract and/or develop leaders? Page 7 What s Causing The Angst? 1. Sustained Unemployment 2. Definition of Work 3. Types of Jobs 4. Four Generations 5. Gray Ceiling 6. Female Breadwinners 7. Skill Gaps 8. Education 9. Technology 10. Succession Plans 1. Sustained Unemployment Page 9 Page 10 The Jobs Picture It s Different This Time! Sustained Unemployment 7 million jobs lost since December % of men in population not working today, up from 7% in in 10 Americans move annually, down from 1 in 5 in % drop in new business creation since 2007, resulting in as many as 1.8 million fewer jobs 21 million new jobs required by 2020 to return to full employment and high growth Page 11 Page 12 2
3 Lack of Mobility Puts Kink In Talent Pipeline Quality candidates are unable to relocate due to underwater mortgages. 4 out of every 10 American adults have at least 1 step relative living with them. 1 out of 4 of workers find themselves caring for aging parents. Page 13 Page 14 Labor Market Eras 2. Definition of Work Agricultural Age (to 1850) hand labor - farming and subsistence Industrial Age ( ) semiskilled labor - machines Computer Age ( ) skilled labor - data and robotics Cyber-Mental Age (2010 -???) knowledge labor - intelligent machines Page 15 Definition of Work is Changing therefore the definition of a job is changing Brain, not brawn power Employees in new jobs don t go to work Many new jobs aren t full-time Many new jobs aren t permanent Many new jobs don t exist yet Many new jobs are virtual and dynamic Page 17 3
4 More Brain, Less Brawn 3. Types of Jobs Transformational: Jobs that involve the extraction of raw material and converting them into finished goods. Examples: mining coal, running heavy machinery, or production line workers. Transactional: Jobs that involve routine interactions. Examples: cashiers, office and accounting clerks.. Tacit: Jobs that involve more complex interactions knowledge jobs. Examples: Executive/Manager, Nurse, Salespeople, and Mediators. Even the CSR.. Page 19 Page 20 The Jobs Picture No one is going to pay workers anymore just to show up. Sustained Unemployment 7 million jobs lost since December % of men in population not working today, up from 7% in in 10 Americans move annually, down from 1 in 5 in % drop in new business creation since 2007, resulting in as many as 1.8 million fewer jobs 21 million new jobs required by 2020 to return to full employment and high growth Page 21 Page 22 The Four Generations 4. Four Generations Veterans ( ) Baby Boomers ( ) Generation X ( ) Millennials (Y) ( ) Source: Harvard Business Publishing Page 23 4
5 People of Different Ages at Odds Two-person career Two-career family 8 out of 10 Americans believe there is a major values difference between young and old. Four Generations Two (or more)-company career Two (or more)-career person Four Key Clashpoints! 1. Attitudes toward Work 2. Communication 3. Meetings 4. Career Opportunities Clashpoint! #2 Communication V: Memos, letters, personal notes B: Phone call, personal interaction X: Voice mail, , fax Y: Twitter, Facebook, texting Clashpoint! #3 Meetings Clashpoint #4 Career Opportunities Meetings V: Formal, scheduled in advance B: Team oriented, scheduled X: Informal but scheduled Y: Informal, virtual Career Goals V: Build a legacy B: Build a stellar career X: Build a portable career Y: Build parallel careers 5
6 5. Gray Ceiling Boomers: Just Keep Going. while Millennials Emerge 73% increase % Decrease Source of charts: U.S. Census Bureau, 65+ in the United States: 2005, December Page 31 Page 32 New retirement age: 75 years old? Unemployment by Age 2/3 of Baby Boomers financially unprepared for retirement; Baby Boomers worth $8 trillion less then prerecession. BLS projects labor force participation for 55+ will double to 1 in 4 of the labor force by 2020; in 2000, the rate was only 1 in 8. Page 33 Page 34 Female Breadwinners: Unemployment by Gender Man-Cession 6. Female Breadwinners Page 35 Page 36 6
7 Man-Cession Men lost 5.4 million jobs between Dec 2007 and June fewer men working in May 2011 than in December 2007 Women lost the other 2.1 million jobs Unemployment rate for men: 5.1% to 10.6% (June 2009) Unemployment rate for women: 4.9% to 8.3% (June 2009) Source: McKinsey Women Better Educated Women age are now more likely than men of that age group to have attained a college degree; Among women age in the labor force, 36 percent held college degrees in 2009, compared to 11 percent in Over the same period, the proportion of women workers with less than a high school diploma fell from 34 percent to 7 percent. Page 37 Page 38 Women Better Educated Women: 57 percent of all college degrees conferred in Female full-time graduate students was nearly double that of males between 1997 and In 1998, more doctoral degrees were conferred to men than to women. A decade later, more doctoral degrees were conferred to women than men. 7. Skill Gaps Page 39 Page 40 Skill Gaps Will Widen Future of American Jobs The loss of jobs due to occupation extinction is expected to continue unabated through While 97 million people needed, only 43 million Americans have the educational qualifications for these jobs. 38% of all U.S. jobs in 2010 will still be lowpay/low-skill and require 61 million workers about 115 million Americans qualify! 74 % of all jobs created in America between today and 2020 will be high-paying jobs for high-skilled workers. Openings for 123 million.but only 50 million Americans will qualify. Low-paying, low-skill jobs will shrink to just 26% of the total jobs in the U.S. Page 41 Page 42 7
8 Typical Competency List: 2010 vs 2020 Getting Results Making Good Decisions Adapting to Change Planning and Organizing Managing Others Coaching Others Interpersonal Communication Computational Thinking Innovative Thinking Cognitive Load Management Situational Adaptability Design Mindset Virtual Collaboration Social Intelligence Cross Cultural Competency Page 43 Page 44 Unemployment by Education 8. Education Page 45 Page 46 Dropouts 4 million kids begin ninth grade 1 million of don t graduate. 1/5 of schools identified as dropout factories, where no more than 50 percent of students graduate. Unemployment rate for people without a HS diploma is 2X that of the general population. ½ million black teenagers drop out of school each year. 6 out of 10 black male dropouts will spend time in prison. 41 percent of Latinas leave high school because they get pregnant. 9. Technology Page 47 Page 48 8
9 Technology Social Media Skills Telecommuting Social Media Page 49 Page 50 Engagement Down So Is Available Talent 10. (Lack of) Succession Planning 32 percent of American workers are considering leaving their organization - a 40 % increase since 2005; Another 21 percent says they are not looking to leave but are dissatisfied; That means that more than half of all employees (53 percent) have mentally checked out of work. Source: Mercer Consulting; similar results from Blessing White survey 51 % report that growth could be impacted by the loss of talent in key skill areas; (Towers Watson) Page 51 Page 52 Heidrick & Struggles/ Stanford University Korn / Ferry Over 50% of US and Canadian companies can not name a successor in their organization s chief executive officer. 39% of the respondents have no viable internal candidates. Only 50% have any written documentation detailing skills required for the next CEO. Only 19% have well established benchmarks to measure internal candidate skills. 98 percent of companies believe a CEO succession plan to be important BUT Only 35 percent currently have one in place. 49 percent haven t had one in place for the last three years. Page 53 Page 54 9
10 Job Status Yesterday vs Tomorrow Recruiting and Hiring Trends Full Time Part Time Fixed Hours Flexible Shared Virtual Temporary Page 56 How Sourcing Is Changing Needle in a Haystack 24% of companies plan to decrease usage of 3 rd party employment sites and job boards 80% of companies: Hiring different kind of recruiter who can find passive candidates Use networking sites Plan to poach candidates from competitors More than 80% of job openings are unlisted. (Wall Street Journal) 38 % cite an inability to attract necessary talent. 52 % of U.S. employers are reporting difficulty filling mission critical positions within their organizations, up from 14 percent in (Manpower) By 2018, the U.S. will face a shortage of 1.5 million managers who can use data to shape business decisions. (McKinsey) Page 57 Page 58 What Do These Trends Mean For Your Business? Emerging Best Practices How will you recruit a skilled and diverse workforce? How will you retain a diverse workforce? How will you engage a diverse workforce? How will you develop a diverse workforce? Ask yourself: what am I seeing that I m denying because it doesn t fit my view of the world? Page 60 10
11 Best Practices in Recruiting Recruiting Metrics Metrics Applicant Processing Systems Assessment Tests Social Media Financial Impact Cost to hire Time to hire Cost of turnover Hidden recruitment costs Quality Impact Time to achieve full contribution Hiring manager satisfaction New employee satisfaction Page 61 Page 62 Is Your Recruiting Process Applicant Friendly? How do candidates find you? How many clicks does it take a candidate to start and complete your application? Do you use Plain-English? Do you include an or share function? Do you include a link HR or chat for candidates to ask a question? Do you share info about your company, officers, management, and photos of your facility, people, and leaders? Increased Use of Pre-Employment Assessments More than one-third of businesses using preemployment tests as part of their selection process (up from 20% in the mid-2000s). 80% of companies use pre-employment tests as part of their senior level executives and management screening. Assessments becoming an integrated part of Applicant Tracking and Applicant Processing Systems. Page 63 Page 64 You Can t Afford to NOT Google Candidates Summary Employment and other laws not keeping up with evolution of social media. Don t be lulled into complacency as a result of high unemployment. Skill gaps will widen. Legal vs illegal battle will rage for some time. Recruitment of top talent will become more difficult. Caution is imperative but timidity will be disastrous. Turnover will increase dramatically. In spite of it all, companies who respond to the new marketplace will prosper! Page 65 Page 66 11
12 Connect with Me! Follow Me! Contact Me! Workforce Trends - Human Resource Trends - Blog.super-solutions.com Generational Trends Expert Services for: Online Hiring Solutions Applicant Processing Systems Social Media Marketing and Training Leadership and Development Assessment Ocean Pines, MD Lancaster, PA Phone: (410) iwolfe@super-solutions.com Page 67 Page 68 12
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