Reskilling the Workforce: Essential to Business Success

Reskilling the Workforce:Essential to Business Success

David WilkinsVP of Research

@TaleoResearch

IN A WORLD WHERE…

THIS MEANS MORE OF THIS

LEARNING & RESKILLING ARE BUSINESS IMPERATIVES

TA L E N T I N T E L L I G E N C E

(1) Talent pools are global, shallow, and getting shallower(2) Quality-of-hire is down; time-to-fill is up(3) Business is faster, more connected, and more complex(4) Govt and educational institutions are part of the problem(5) US businesses have abdicated responsibility

CHALLENGES


(1) Know the team you have(2) Know the team you need(3) Invest in long-term capability development(4) Empower your team to do this themselves(5) Switch your default to reskilling and hiring from within

SOLUTIONS


70% of German companies report challenges

in finding the “right people”




“34 percent of CHROs in growth markets say they anticipate increasing headcount in North America over the next three years, while 37 percent plan additional investment in Western Europe. This includes companies from India, where 45 percent of respondents indicated they plan to increase headcount in North America and 44 percent in Western Europe.”




CHART 8: AMOUNT OF TIME TO BRING NEW MANAGEMENT / SPECIALIZED WORKERS UP TO SPEED - RISEN OR FALLEN IN LAST TWO YEARS

49%: time-to-proficiency is increasing


CHART 9: WHICH OF THE FOLLOWING BENEFITS DOES YOUR FIRM CURRENTLY USE TO ATTRACT AND RETAIN MANAGEMENT AND/OR SPECIALIZED WORKERS (TOP RESPONSES)


“It is possible that companies are resigning themselves to the relative scarcity of experienced workers who can immediately perform to the highest level in a new and responsible role.

To compensate for this shortage, a growing number seek to recruit raw potential and then rely on developing this potential themselves.”




AND THE FUTURE LOOKS WORSE

› Georgetown University Center on Education and the Workforce on shortfall of college grads in 2018

› Accenture study from 2006 showed that STEM enrollments would need to increase by between 2006-2016 to meet demand

3,000,00020-30%

Instead, enrollments have GONE DOWN.


EDUCATION, WORKFORCE MISMATCH

› In the last ten years:

› Over the last few years, average graduation of law students Is 45,000 against openings of 25,000

› Skills mismatch is inherent in our educational model

Up 4.6%

New Jobs

Knowledge Work

All others

85%

TA L E N T I N T E L L I G E N C E18

“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.”

http://data.un.org/Data.aspx?d=PopDiv&f=variableID%3a12

Country % Growth

Russia -8%

Japan -5%

Germany -4%

Poland -4%

Italy -1%

Greece 0%

France 5%

UK 7%

China 7%

Brazil 13%

USA 14%

Mexico 15%

Turkey 17%

India 24%

Nigeria 46%

AGING WORKFORCES WORLD-WIDE

› Summary

– Slow growth, negative growth in developed world

– Faster growth in developing world

– In US, UK growth fueled through immigration

– Less developed = more growth

› Implications

– Talent shortages is a global phenomenon

– Developing world all competing for same pool

– As developing world matures, pressures from there

– Reverse immigration to Poland, India, Mexico

– Deep, narrow talent pools vs wide and shallow

Pop

ulat

ion

Gro

wth

201

0-20

20

http://data.un.org/Data.aspx?d=PopDiv&f=variableID:12


http://data.un.org/Data.aspx?d=PopDiv&f=variableID%3a12

Country % Growth

Russia -8%

Japan -5%

Germany -4%

Poland -4%

Italy -1%

Greece 0%

France 5%

UK 7%

China 7%

Brazil 13%

USA 14%

Mexico 15%

Turkey 17%

India 24%

Nigeria 46%

AGING WORKFORCES WORLD-WIDE

› Summary

– Slow growth, negative growth in developed world

– Faster growth in developing world

– In US, UK growth fueled through immigration

– Less developed = more growth

› Implications

– Talent shortages is a global phenomenon

– Developing world all competing for same pool

– As developing world matures, pressures from there

– Reverse immigration to Poland, India, Mexico

– Deep, narrow talent pools vs wide and shallow

Pop

ulat

ion

Gro

wth

201

0-20

20

Tata is already the largest employer of

manufacturing workers in UK.




15 years of survey data from 100 US and European firms found:

Simplicity Complexity

Vertical Layers

Interface Structures

Coordination Bodies

Decision Approvals

Flatter Hierarchies

The cost of complexity? • Managers spend 40% of

their time writing reports• 30% to 60% of their time

in coordination meetings• Leaving 0-30% to

manage their teams…

Complexity is up an average of 50-350%


“While today’s rhetoric focuses on telling businesses to “create new jobs,” we believe that the creation of new jobs ¡s inextricably tied to providing the right skills for those jobs through education, training and retraining. We must invest in the future by taking on the long-term task of training new talent and retraining existing talent.”


THE LEARNING CONNECTION


ADDRESSING THE PROBLEM

1. Know the team you have

2. Know the team you need

3. Invest in long-term capability development

4. Empower workers to do this themselves

5. Switch your default to hiring from within


› Job history

› Work experience prior to current role

› Expertise developed outside of work

› Self-identified expertise & peer-identified expertise

› Career aspirations

› Top performers and high potentials

› Flight risk

(1) Know Your Team


TOP PERFORMER AND HI-PO 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.

TA L E N T I N T E L L I G E N C E27

KNOW THE PEOPLE YOU HAVE

48%75%

say that their skills go unnoticed

feel that their work history & experiences are not leveraged by their employer


WHO UNDERSTANDS WORKERS BEST?

My family / partner21%

My friends outside of work4%

My colleagues and peers43%

HR software / systems 1%

My line manager22%

Don’t know5%

Other 1% None of the above

3%

Professional & work capabilities






My line manager13%

Don’t know5%

Other 1%

None of the above6%






My line manager22%

Don’t know5%


3%


Professional & work aspirations / ambitions






My line manager13%

Don’t know5%

Other 1%

None of the above6%






My line manager22%

Don’t know5%


3%


Professional & work aspirations / ambitions

Research by Rob Cross, a University of VA

Management Professor, has shown that managers can

identify the best resource for any given initiative only

around 50% of the time.


› Understand the capability requirements

– New strategic plans

– Geographic expansion

› Map the gaps: what are you missing in order to meet objectives

› Assess the best approach to fill-in gaps

– Hiring or contract

– Skill, knowledge, capability development

– Talent transfer

(2) Here to There


WORKFORCE DATA – WHAT DO WE KNOW

Empl

oyee

Eng

agem

ent

Com

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Skill

Gap

Ana

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Tota

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r

Open

\ Va

cant

Pos

ition

s


WORKFORCE DATA – WHAT DO WE KNOW

Empl

oyee

Eng

agem

ent

Com

pete

ncy

Skill

Gap

Ana

lysi

s

Tota

l Tur

nove

r

Open

\ Va

cant

Pos

ition

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2nd biggest gap across all TM metrics


› 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?

› For critical and strategic roles, we need to think differently:

– Use paradigms of leadership development, cohorts and stages

– Use paradigms of pilot and surgeon training

– Scaffolding models, coupled with social models

(3) Long-term Roadmap


COMPETENCIES ARE WELL-ESTABLISHED

› 75% of companies use job / role competencies for selection & promotion

› Over half of organizations tie competencies to career planning

› 91% report training improvements when training is tied to competencies

The 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.


› Employees need to own their own career development

– Make sure it’s easier to move in your company than leave it

– Enable personal gap assessment between current skills and capabilities and desired career objectives

› Map capability requirements to training and learning interventions

– Formal content: WBT, classes, video, documents

– Social content: CoP, discussions, expert location, wikis

– Action learning: related roles, activities, stretch assignments

› Involve the team in defining needs and interventions

(4) Empower the Team


› Employees need to own their own career development

– Make sure it’s easier to move in your company than leave it

– Enable personal gap assessment between current skills and capabilities and desired career objectives

› Map capability requirements to training and learning interventions

– Formal content: WBT, classes, video, documents

– Social content: CoP, discussions, expert location, wikis

– Action learning: related roles, activities, stretch assignments

› Involve the team in defining needs and interventions

(4) Empower the Team

In UK, 61% of companies are “effective” at vertical mobility

(promotion), but only 52% at horizontal mobility and just

29% at geographic.


› External hiring costs 18-20% more than internal hiring

› External hires perform worse on performance evals for 24 months

› High 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

(5) Switch Your Default


LAY THE GROUNDWORK

› You can’t hire from within effectively unless you have:

– Strong succession plans at all levels in the org

– Clear visibility into open roles

– Manager *and* peer-driven process

– Culture of development that rewards talent mobility and encourages on-going skill and capability growth

– Clear linkages between strategic direction, required capabilities, and development options

› Get social fast – user-generated content and p2p models send a clear message about employee empowerment

40

Strategic Implications for You


YOUR STRATEGIC ROLE

› Senior leaders are thinking about talent; it’s a key concern

› Agility is also top of mind due to recent and current world events

– Demographic shifts will increase this focus in coming years

– Competitive global pressures will increase this focus

– Educational shortfalls will increase this focus

› Get ahead of this need by focusing of capabilities-driven learning programs

– Understand strategic direction for the future

– Map the gaps

– Develop a plan

– Earn your seat

QUESTIONS