Hanging from a Cliff: The Real World and Young Adults

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Hanging from a Cliff The Real World and Young
Adults

• Phil Gardner, Ph.D.
• WIPCCC
• February 19, 2009

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Delusions Risk -- Panic

• Moneyhas often been a cause of the delusions of
  multitudes. Sober nations have all at once
  become desperate gamblers, and risked almost
  their existence upon the turn of a piece of
  paper.To trace the history of the most
  prominent of these delusions is the object of the
  present pages. Men, it has been well said,
  think in herds it will be seen that they go mad
  in herds, while they only recover their senses
  slowly, and one by one.
• Charles Mackay, London, 1841 Extraordinary
  Popular Delusions and the Madness of Crowds

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You do the math!

• In the calendar year 2008, the U.S. economy is
  expected to shed over 1,000,000 jobs. (Oct BLS)
• Actually lost 2.5 million jobs by end of
  December and 650,000 more in January
• Between December 2008 and June 2009 approximately
  1.5 million young adults will graduate with a
  bachelors degree.
• Nearly 1.1 million will seek employment.

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Hiring in 2008-09

• Hanging by a finger tip
• Total hiring (all degree levels) -8
• Bachelor hiring -8
• MBA hiring -10
• It could be worse!

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Safe Harbors in a Storm

• Company Size
• Think FAST Professional scientific services
• Sector of the Economy
• Insurance Aerospace/Defense Ag Health
  Services Non-profits
• Right question which sectors poised to pull out
  faster
• Location
• Join Michigan in misery
• What Regions positioned to gain economic momentum
• Academic Majors and Positions
• Lack of Breadth Technical and business
• Sales and marketing so long, farewell

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They just wont go away

• How serious is the retirement problem?
• Size and severity depends on
• Large employers who are anxious or calm
• Serious retirement problem
• No retirement problem
• Moderate retirement problem

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Im Desperate The retirement drain is clogged

• 93 interview on campus
• 90 attend career fairs
• 86 have co-op and internship programs
• Strong global presence plus NE, GL, and UP.
• Complete hiring by end of November
• Trolling for experience
• Manufacturing, insurance, professional services,
  and government
• Hiring down 8

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• Nearly one-third of the 1.6 million full-time
  federal workforce is expected to retire or resign
  in the next five years.
• Partnership for Public Service
• 2007

• As of Thursday(1/1/2009), "an engineer hired by
  an Oklahoma aerospace company is eligible for a
  5,000 tax credit per year for five years.
• The Oklahoman
• January 2, 2009

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• Deloitte Consulting LLP
• AD talent shortage
• 33 call it a crisis 27 crisis imminent
• Root Cause of 295 B cost overrun
• 27 AD manufacturing retirement eligible
• Defense Manpower Data Center
• Boomers older 70
• Under 30s lt10
• Mid-career 20

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What Problem?They keep on keeping on

• 85 interview on campus
• 63 have internship and co-op programs
• Have significant global reach and in SE and SW.
• Will recruit throughout the year
• Balanced strategy
• Led by manufacturing, retail, and professional
  services
• Hiring down 9

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Moderate Problem Hiring has imploded!

• 85 interview on campus
• 76 have internship programs
• Heavily focused in U.S. no regions
• Appear to be drifting
• Led by manufacturing, finance and professional
  services
• Hiring down by 17

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When will Boomers leave?

• Forget the charts
• Little money to retire on
• Outlook for health care eroding
• They love to work and dont particularly like
  young adults
• Call a plumber

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The New Big Three

• The Desperados
• Severe human resource needs because of
  retirements and dont want to repeat their folly
  of not hiring during a downturn.
• The Talent Warriors
• Seeking the best talent they can find to stay
  globally competitive.
• The Mavericks
• Fast-growth small companies seeking top talent to
  grow.

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Recruiting Issues

• Are you even needed?
• 40 of employers want to work directly with
  faculty
• Times mask reality why career fairs?
• Its all about brokering relationships
• Talent managers planning and development
• Time to closure
• 4 to 6 weeks for entire process
• 1 week to make a decision
• Experienced workers In play
• Workforce succession planning and recruiting

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Short Term Outlook

• Weak Spring
• Simply keeping things afloat
• Some companies do have money
• A sense of hope short lived
• Reliving some of same mistakes
• Unintended consequences Beltway cynic
• Trade protection
• Immigration
• Currency
• Share the pain
• Credit mess is just beginning to unwind

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Longer Term Outlook

• Automobiles and Investment Banks two forms of
  capitalism
• The muddy waters of international finance
• Can Americans save?
• Consumption driven economy
• Can China avoid a bigger bubble collapse?
• Still stockpiling commodities tying up oil market
  with Russians with US
• The Hammer Health care
• Receipts coming due

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The next big crisis for higher education

• Skills and competencies.
• The first job Not what you expect
• The purveyor of talent to the workforce

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What Jobs Will Leave?
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Skill Usage The Funnel
Communicate Orally Think Analytically Acquire
Learning Evaluate Alternatives Creative
Solutions Teamwork Leadership Utilize
technology Grasp Realities
Apply Learning Writing Effectively Teamwork Grasp
Realities Workplace Acquire Learning
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Competencies They are moving!

• Build sustain working professional
  relationships
• Analyze, evaluate and interpret data
• Engage in continuous learning
• Communicate through justification and persuasion
  
• Plan and manage a project
• Create new knowledge
• Seek global understanding

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The New Starting Job

• Internships
• 85 employers require an internship
• Possibly 50 want at least 2
• Actively recruiting 1st and 2nd year students
• Pay concept changing

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A Comparison of Full Time and Experiential
Education Positions (engineering in 2008)
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Working With Students

• Attitude and Expectations
• Financial planning
• Graduate school Promise or Folly?
• Resilient
• Fear and loathing in Milwaukee
• Three forms of capital
• Intellectual
• Social
• Relational
• Absolution
• Determinism and Free Will

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Parable of the Talents

• Entrusted with abilities (not everyone the same)
• They dont come with instructions
• Failure and risk are part of the bargain
• Need to turn the world upside down
• Be motivated by faith rather than fear
• Willingness to act
• Growth is not always automatic

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Laying a Foundation

• Engagement
• Adjusting to different contexts
• Social learning negotiated/ambiguous
• Relation building
• Some Strategies Reflection required
• Internships
• Research
• Study Abroad
• Other Activities
• Resources
• Career Services
• Alumni
• Connections

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Surviving FAST!
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Understand the New Logic of Careers

• You, Inc. new logic of careers
• Its up to you
• Passion Be Your Guide
• Requires a foundation built upon experiences
• Calling requires a journey

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• Adopt New Style of Leadership
• Recognize the Dire Importance of Innovation

• Embrace Change Its Relentless, On-going
• Its a Possibilities Curve

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• Pursue learning with Intensity
• Protect Boundaries
• Be Able to Cope

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• Seek a Spiritual Center
• Push Inner Edges as well as Outer Edges
• Shift
• Being the BEST IN THE WORLD
• Being the BEST FOR THE WORLD

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Message to Students
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Finding Our Footing in Troubled Times

• To stimulate or not That IS the question!
• Buy America -- really

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Three Required Elements
Economic Development
Short-Term Longer Range Needs
Employment
Education
Focus on Critical Skills
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Three Required Elements

• What we experienced from 1996 2001

Economic Development
Short-Term Longer Range Needs
Employment
Focus on Critical Skills
Education
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Three Required Elements
Economic Development
Short-Term Longer Range Needs
Employment
Focus on Critical Skills
Education
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Action Item 1

• Together, we must
• Make greater investments in science, technology,
  business, and design/creative education Technolog
  y push out of recessions
• PC in 80s
• Dot.com in 90s
• Interactive supply chain 00s
• Nano, Bio, Neuro, IT ????

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Action Item 2

• Together, we must
• Enable and evolve to a culture that embracesand
  enables life-long learning
• and promotes integrated learning

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Action Item 3

• Together, we must address
• The significant shortage of skills required to
  create competitive advantage for many
  organizations
• Unique needs of the new/developing workforce
• Impact of the retirement of the Baby Boomand
• Need for greater diversity and inclusion in our
  education programs and workforce

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Action Item 4

• Together, we must
• align our investment in education, with
• current and emergent employment needs, in order
  to
• support economic development objectives, and
• return our economy to an environment of
  sustainable growth

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