Enhancing the Connection between Training and Employers

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Enhancing the Connection betweenTraining and
Employers

• Bojan Cubela
• Manager, Workforce Development
• Joint Council Summer Meeting
• The Evergreen State College, August 17, 2005

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Agenda

• About Manpower
• Trends in the World of Work
• Employers and the Hiring Challenge
• The Critical Role of Education Training
• Connecting Training Employers
• Enhancing the Connection
• Recommendations
• Questions Answers

3
Agenda

• About Manpower
• Trends in the World of Work
• Employers and the Hiring Challenge
• The Critical Role of Education Training
• Connecting Training Employers
• Enhancing the Connection
• Recommendations
• Questions Answers

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About Manpower

• Over 57 years of staffing experience
• Operations in 67 Countries Worldwide with
  4300 offices
• Global Sales of 13.3 Billion
• More than 400,000 employers-customers,
  94 of Fortune 500
• Interviewed 10 million and placed over 2.3
  million workers
• Trained more than 9 million people
• Global Learning Center with over 5,000 hours of
  on-line courses
• Approximately 40 of our temporary employees are
  hired by our customers
• Fortune Most-Admired Staffing Company in 2003 and
  2004in all 8 categories

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Jobs At Manpower
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• Manpower Business

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U.S. Employment Outlook
Source Manpower Employment Outlook Survey, 2nd
Quarter 2004 www.manpower.com/meos
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Agenda

• About Manpower
• Trends in the World of Work
• Employers and the Hiring Challenge
• The Critical Role of Education Training
• Connecting Training Employers
• Enhancing the Connection
• Recommendations
• Questions Answers

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Trends in the world of work
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The Technology revolution
has impacted the way we live, work and play,
enabling longer life expectancy, higher
productivity and death of distance

• Advances in medicine
• Genetic testing
• Miniaturization

• Advances in IT
• Pervasive knowledge network
• Globalized information
• Digital literacy

• Global communications
• Doing business online
• Virtual organizations
• Independent workers

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New Economy

• Human society transition from industrial era to
  the information or knowledge era
• Economic Progress, notes former Citibank
  President Walton Wriston, is now largely a
  process of increasing the relative contribution
  of knowledge in the creation of wealth.
• Creation, application and dissemination of
  knowledge ultimately derives from people, so.
• The New Economy is a Human Resources Economy
• Human capital will determine winners and losers
• Freedom and empowerment to create and innovate
• Speed, flexibility and decentralization
• Networks and alliances
• Trade and investment in services and ideas, not
  goods

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Knowledge Worker Valuation Timeline
Human Capital THE critical success factor in
business
Need To Have To Survive
Nice to Have
Gotta Have
NEED
1990s
2000s
2010s
VALUE
To the Boardroom
To the Cubicle
From the Basement
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Globalization

• The World Economy is becoming increasingly global
• Global trade is almost 50 of the worlds GNP
• Global awareness, information and knowledge
• Still, only 6 of worlds population is on
  Internet
• Knowledge-proficient vs. knowledge-deprived
• Global production
• The rise of multinational corporations
• Global Workforce
• Employment in foreign-owned firms up 32
  (1991-2000)
• Massive layoffs due to import competition or
  relocation
• Increased labor and talent migrations
• International Labor Market

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Tip of the Iceberg

• Were just beginning to see the changes in store
  for the labor market
• We need to anticipate what lies below the surface
  and change our course accordingly

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Demographic Changes

• Worlds Population - 6.3 billion
• Positive, but slower global population growth
  till 2050
• declines in mortality
• increases in life expectancy
• but, declines in fertility
• Most of the growth will occur in developing
  countries
• In 1950, the rate was 12 (developed vs..
  developing)
• In 2000, the rate was 14
• In 2050, it is projected at 17
• It takes 2.1 births per woman to keep population
  stable - Canada is at 1.5 now
• Urbanization - emergence of mega-cities

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U.S. is getting older and more diverse
Composition of U.S. population
Working segment of population

• As the US population retires, 5 (15.6 million)
  additional workers needed by 2015 to maintain
  similar share of working population
• Shortfall must be addressed through a combination
  of
• Increased innovation/
• productivity
• Increased labor inputs, e.g., immigration

Source US Census McKinsey Global Institute
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U.S. is getting older and more diverse
Racial Diversity
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Sociological Changes Creating a Different Work
Dynamic
Family vs. Work values?
Coping with constant change Severe test on
human psychology
Loyalty vs. Compensation?
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Global Workforce

• Global workforce will grow from 1.2 billion in
  1950 to almost 3.5 billion people in 2010
• There is a growing disparity in the contribution
  to the workforce growth between developed and
  developing
• In 1950-1970, the contribution was 25 vs. 75
• In 2000-2010, the contribution will be 7 vs. 93
• Economic growth is directly related to increase
  in productivity and the number of workers
• To preserve economic growth and produce enough to
  support social security and healthcare
  commitments, governments in advanced countries
  must win the war for global talent.

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Labor and Talent Migrations

• By 2000, ILO estimates a total of 175 million
  people residing outside their country - 3 of
  population
• Over the last decade, the number of migrants
  increased by 6 million a year - faster that the
  growth of population
• Developed countries are importers of labor and
  talent, developing countries are exporters
• There are benefits for both the importers and
  exporters
• Brain Drain is a problem for developing
  countries
• Canada is a net exporter of skilled workers
  (migrants represent 6.2 of total workforce in
  1998)
• US represents 20 of population in developed
  countries but absorbs over 50 of their migrants
  and 75 of their migrants with at least some
  college degree

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Work is migrating from Industrialized Countries
to all Continents
Source Business Week, 3 Feb 03 Cover Story
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and is affecting white collar jobs as well as
blue collar
Source Business Week, 3 Feb 03 Cover Story
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Why higher skilled workers want to migrate to
higher paying Countries like the US
Source Business Week, 3 Feb 03 Cover Story
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Polarization of Skills is Happening in Most
Countries, but at Different Rates

• Accumulation of certificates and degrees on one
  end
• Combined with high illiteracy and lack of basic
  skills at the other end

Population
-

Skill level
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Structural Unemployment is Now Combined with an
Inadequate Skill-Base

• Todays manufacturing jobs are technology jobs
  and employees at all levels must have the wide
  range of skills required to respond to the
  demands of an increasingly complex environment
• Currently the only source of new skilled workers
  (in the US) is from immigration
• More than 80 of the surveyed manufacturers
  reported a moderate to serious shortage of
  qualified job applicants

Source Keeping America Competitive, White Paper
2003 by the National Association of
Manufacturers, The Manufacturing Institute and
Deloitte Touche Manufacturing Industry Practice
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Agenda

• About Manpower
• Trends in the World of Work
• Employers and the Hiring Challenge
• The Critical Role of Education Training
• Connecting Training Employers
• Enhancing the Connection
• Recommendations
• Questions Answers

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Employers Hiring Challenge

• Too many people (candidates)
• Not enough jobs (high unemployment?)
• Not enough talent (right match)

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Occupational Bubbles In 2010
Bubbles represent of workers employed within
each segment (n168 Million Workers Total)
Computers and Math
Source Manpower Market Intelligence Department
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New Soft Skills are Required to Cope with the
Growing Complexity of the Work Environment

• Example Cooperation and conflict management
  skills will be needed for working together in the
  same company between
• Generations
• Skill sets
• Permanent and temporaries and migrants and other
  categories
• Communities of values
• Geographies and national cultures

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What Skills are in Demand
Technical Skills
Education
Business, Soft Skills
Experience
Source U.S. Department of Commerce, July 2003
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Top 20 Markets for Technical Support Workers
Estimated 2006 Values per Metropolitan
Statistical Area (MSA)
20 - Salt Lake City-Ogden, UT MSA
9 - Seattle-Bellevue-Everett, WA PMSA
17 - Denver, CO PMSA
12 - Minneapolis-St. Paul, MN-WI MSA
2 - Chicago, IL PMSA
18 - Detroit, MI PMSA
15 - Portland-Vancouver, OR-WA PMSA
5 - Boston, MA-NH PMSA
1 - New York, NY PMSA
10 - San Francisco, CA PMSA
8 - San Jose, CA PMSA
11 - Philadelphia, PA-NJ PMSA
4 - Los Angeles-Long Beach, CA PMSA
3 - Washington, DC-MD-VA-WV PMSA
14 - San Diego, CA MSA
6 - Atlanta, GA MSA
16 - Phoenix-Mesa, AZ MSA
19 - Orlando, FL MSA
7 - Dallas, TX PMSA
13 - Houston, TX PMSA
Top BLS MSA's Compared with Top 20 Manpower
Professional MSA's
Source Manpower Market Intelligence Department
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Education And Skill Requirements for ICT Workers

• Technical Skills
• Numerous and diverse
• Market-based
• Rapid advances drive new skilldemands, frequent
  skills upgrading
• Near term needs

• Education
• Deep foundational knowledge lessimmediate
  practical skills
• Important to career advancement
• More than 2/3rds have bachelors degrees
• Majority in science and engineering

• Experience
• Risk mitigator
• Validation of ability to applytheoretical
  knowledge
• Value of hands-on, work-study, internships

• Business Skills
• ITs ubiquity throughout company
• Centrality of IT to corebusiness functions
• Business-focused versus tech-focused
• Career advancement, especiallyto management

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Professional development
Career Level
Change management experience Strategic decision
making experience People management experience
Integrating people skills with technology
skills Cross group collaboration Staff
Development
Job-specific skills Work-readiness skills Ability
to learn
Self-skills Basic skills
Application of skills Life-long learning
Education Training Certifications
Education Training OJT
Parents School
Time
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Agenda

• About Manpower
• Trends in the World of Work
• Employers and the Hiring Challenge
• The Critical Role of Education Training
• Connecting Training Employers
• Enhancing the Connection
• Recommendations
• Questions Answers

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Ford Foundation Research

• Workforce intermediaries that engage
• employers cooperatively and collaboratively
• are most likely to generate benefits
• for workers and employers.

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PEERS Workgroup

• AFL-CIO Working for America Institute
• American Society for Training and Development
  (ASTD)
• Aspen Institute
• Initiative for a Competitive City (ICIC)
• Jobs for the Future
• Manpower, Inc.
• Michigan Manufacturing Center
• National Association of Manufacturers
• U.S. Chamber of Commerce
• Welfare to Work Partnership

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The PEERS Typology of Workforce Intermediaries
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The PEERS Research Survey

• November 2002 to March 2003
• Population -- 865
• Industries
• electronics, metal finishing, heat-treating, tool
  and die, machine-tool industries
• 264 manufacturers responded
• 68 metal-formers
• 51 machined-parts makers
• 47 plastic molders
• 98 from other five sectors

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Functional Uses of Workforce Intermediaries
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Employer Satisfaction with Workforce
Intermediaries
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Research Findings

• All workforce intermediaries are not created
  equal.
• Workforce intermediaries that measure, redesign
  jobs
• Higher productivity, higher wages
• Employers and workers benefit
• Workforce intermediaries that plan, provide
  training
• Reduced labor turnover gt higher productivity and
  higher wages
• Employers and workers benefit
• Workforce intermediary that only obtain new
  workers
• Lowers wages
• Harms workers, possibly harms employers

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Research Findings

• These findings suggests that both workers and
  employers benefit when employers use workforce
  intermediaries to

• Improve or link jobs

• Locate or provide skills training, and employment
  supports

• When employers use workforce intermediaries only
  for placement and job matching, workers are
  hindered and the affect on employers is not
  predetermined

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Enhancing the Connection

• Understand the role of workforce intermediaries
• Connect with employers and treat them as
  customers
• Understand their current hiring needs, their HR
  short and long term strategy, their challenges
  and plans
• Design, develop and implement programs which are
  demand-driven and in cooperation with employers
• Seek , welcome and act on feedback from employers
• Commit to cooperation and continuous improvement
• Engage employers in all phases of programs
• Ask for help
• Raise standards of service delivery
• Track activities and results, measure and act on
  it

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Agenda

• About Manpower
• Trends in the World of Work
• Employers and the Hiring Challenge
• The Critical Role of Education Training
• Connecting Training Employers
• Enhancing the Connection
• Recommendations
• Questions Answers

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Conclusions and Recommendations

• Connect with employers as customers - learn about
  their hiring strategy, plans and challenges
• Know your market current hiring needs and future
  trends
• Build a culture of diversity and inclusion
• Facilitate integration of foreign born talent
• Skill standards, assessments, and certifications
  should serve as the foundation for skill
  enhancement programs
• Increase cooperation between business,
  government, labor, social sector and education to
  better leverage resources and best practices
• Connect education and work experience
• Teach lifelong learning skills
• FLEX-SKILL-ABILITY!

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Closing Thought
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Questions?
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Information Sources

• Beyond Workforce 2020 The coming (and present)
  international market for labor - Hudson
  Institute (www.Hudson.org)
• Global Trends 2005 - The Challenge of a New
  Millennium - Center for Strategic and
  International Studies (www.CSIS.org)
• Human Resources Development for Competitiveness
  A Priority for Employers - International Labour
  Office (www.ILO.org)
• Trade and International Labour Mobility -
  International Labour Office (www.ILO.org)
• International Migration Report 2002 - United
  Nations, Department of Economic and Social
  Affairs (www.UN.org)
• Towards a Fair Deal for Migrant Workers in the
  Global Economy - International Labour Office
  (www.ILO.org)
• The Brain Drain Old Myths, New Realities -
  OECD Directorate for Science, Technology and
  Industry (www.OECD.org/migration)
• Offshoring, Import Competition, and the Jobless
  Recovery - The Brookings Institution
  (www.Brookings.edu
• Global Employment Trends for Youth, 2004 -
  International Labour Office (www.ILO.org)

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Contact

• Bojan Cubela
• Manager, Workforce Development
• Manpower
• phone [phone]
• cell [phone]
• e-mail Bojan.Cubela_at_na.manpower.com
• www.manpower.com