HR ECONOMICS: ALIGNING PEOPLESTRATEGIES WITH ECONOMICINDICATORS"
Gina Teresa E. AlonsoPMAP Regional ConferenceAugust 5, 2016
On The Agenda
I. General Economic Landscape
II. Economic Indicator in Focus: Employment
III. Variables for People StrategyEducation SystemThe Changing Profile / Qualifications of WorkerThe Changing Nature of Work
IV. Key Takeaways
Economic
Quarter BOI CDC PEZA SBMA TotalQ1 2,435.0 1,851.8 17,674.9 60.2 22,033.4Q2 8,806.5 14,602.1 16,770.5 101.0 40,280.0Q3 10,662.4 2,149.0 14,510.6 664.6 27,999.8Q4 1,331.0 203.0 146,578.2 19,511.1 167,918.1
2011 23,234.9 18,805.9 195,534.1 20,336.9 258,231.2Q1 3,733.4 1,604.5 12,787.1 144.1 18,505.0Q2 6,688.8 532.6 15,284.6 128.9 22,663.2Q3 7,441.0 36.2 10,083.7 162.5 18,160.7Q4 56,201.6 2,331.1 171,221.0 216.7 230,215.4
2012 74,064.8 4,504.4 209,376.5 652.3 289,544.3Q1 17,164.3 50.4 32,869.5 134.7 50,305.2Q2 45,641.4 749.2 12,370.3 39.4 58,829.0Q3 3,879.8 159.7 28,346.5 379.3 32,920.0Q4 53,960.7 1,026.7 74,084.5 114.6 131,959.3
2013 120,646.3 1,986.0 147,670.8 668.0 274,013.5Q1 4,686.4 358.6 20,976.4 11,318.4 37,413.4Q2 6,776.1 7,582.1 21,080.9 187.6 36,030.5Q3 1,933.4 596.9 15,210.1 124.5 18,330.5Q4 23,492.4 449.7 70,212.2 646.8 95,185.6
2014 36,888.4 8,987.3 127,479.7 12,277.2 186,960.0Q1 2,378.3 4,636.4 14,423.0 191.9 21,816.1Q2 10,908.3 720.4 23,961.0 270.8 36,210.7Q3 28,509.9 2,265.0 13,894.3 394.6 48,570.9Q4 17,710.5 2,080.0 116,647.0 1,950.2 138,618.1
2015 59,507.0 9,701.8 168,925.3 2,807.5 245,215.7
Total Approved Foreign Investments (2011-2015)
Percent Distribution of Population 15 Years Old and Over by Employment Statusby Gender (Philippines)
Region and Gender Total Population (15 Years Old and Over) Total Labor Force Employed Unemployed Not in the Labor Force
Philippines 66,613 41,901 39,177 2,723 24,713Number (in thousands)Total 100.0 100.0 100.0 100.0 100.0Male 50.0 60.5 60.4 62.1 32.1Female 50.0 39.5 39.6 37.9 67.9
Source: PSA
Higher Education Graduates Per Discipline
Ave. no. of graduates(last 3 years): 22,757
College Graduates in Cebu
Schools not keeping up withrapid technology change,industry needs andrequirements
(1) Education System
QS WORLD RANKINGS
2012 2013 2014 2015UP 348 380 367 401-410
AdMU 451-500 501-550 461-470 501-550UST 601+ 701+ 701+ 701+
DLSU 601+ 601-650 651-700 701+
Philippine universities in top 3502016 2015 Institution
70 70 University of thePhilippines
99 114 Ateneo de ManilaUniversity
143 181-190 De La Salle University
157 143 University of SantoTomas
251-300 - Ateneo de DavaoUniversity
251-300 - Silliman University251-300 - Xavier University301-350 - University of San Carlos
2016 QS Asia University Ranking
“strategic” positioning of itsuniversities as “competing in theglobal economy” and generousfinancial support for research
Singapore
Vietnam
investments in education and"cultural differences"
education system more centralized,higher emphasis on student achievement
Teaching style and modality;Need to address systemicconditions
Lack of standardization ineducation (global context)
(1) Education System
Multigenerational Workforce
BABY BOOMERS 1945 – 1964 Expect some degree of deference to their opinions; workaholics; ‘be anything youwant to be’; ‘eternal youth – retirement as freedom’.
GENERATION X 1965 – 1979 Comfortable with authority; want to be listened to; will work as hard as is needed;‘don’t count on it’; ‘take care of yourself’; importance of work life balance.
GENERATION Y 1980 – 1994 Respect must be earned. ‘You are special’; ‘achieve now’; technologically savvy; goaland achievement oriented.
GENERATION Z 1995+ Many traits still to emerge. Digital natives, fast decision makers, highly connected.
( Tolbi z e, 20 08)
(2) Changing Profile/Qualifications of Workers
Fun environmentsocial & recreational facilitieseco friendly environmentteam workinformal communicationwork in cubicleno dress code
Work life balanceflexi hourstime & work managementpurpose and meaning in workCSR / employer brandformal grievance mechanismstress busters
Competitive salary, financial benefits,profit sharing
Money in handemployee referralshome loansESOPspay on merit
Advancing their skill sets & nurturing theircareers
Mentors not managerswork related training; continuous learningclear career pathindividual assessments : measurable, ongoing, 360promotions : recognition & redefinition of work
What is Gen Y Seeking…?
Utilize full potentialadd more value(still) very ambitious; want to progressUntapped talent; want to reach their peak
Preference for status quoblock changestatic; as isfinancial and social levels met
Satisfy intrinsic needsfulfillment; sense of purpose, prideinteresting and challenging workmental stimulationreinforce power of interactionleave a legacy
Want something differentcoach and mentor to otherspass on skills, experience, and wisdomsenior advisory rolesmore risky projects; new territoriesrelationship in a different form
The Ashridge Journal 2016
What are Baby Boomers Seeking…?
Impact on Workplace As Baby-boomers Leave…
Large scale loss of expertiseExperts leaving the workplace in waves, depriving their organizationsof critical skills, experience and relationships that are likely hard toreplace; Need to manage successful transfer of experience andknowledge to younger workers
Challenge of eldercare for employeesIncreasing number of employees need to balance work with caringfor elderly parents and other relatives (Issues: family and sociallife; Productivity)
(Community Business)
(3) Changing Nature of Work
Work gettingfragmented –
GIG Economy; Newsocial contract
Hyper connectedness andcollaboration within thenetwork – build business
partnerships, createvaried career
Increased relianceon technology andsmart machines –
further replacehuman workers
Advances in technology willeliminate some jobs…
56% of the salaried workforcein 5 Southeast Asian countriesincluding the Philippines are athigh risk of losing their jobs toautomation in the next 2 decades
Are you ready for this…?
50% of HR practitionerscurrently in the profession willbe gone in less than a decade
Each of these 19 workplace trends below reflects a basic human need, which crosses all demographics of employeessurveyed. These five basic needs are Freedom, Knowledge, Stability, self-Management, and Meaning
Employees willbe able to workfrom anywherein the world
People will chooseto spend their timeworking on thingsthat are of personalinterest to them orhave a broaderimpact on society
Departments andhierarchy will nolonger exist
Employees willwork wherevertheir skills areneeded thanremaining loyalto one company
The need foremployees toconstantly shift roleswill require learningnew skills quickly
Technology willallow for deeperpersonalconnectionsacross distanceand time
A standardretirementage will ceaseto exist.People willretire bychoice
Employees willdo all of theirwork from amobile device
Employees willprimarily rely onself-service and/orinformation fromthe internet to solveproblems and gettheir jobs done
Companies willsearch globally forthe best talent
Organizationswill take morerisks in order tokeep up with thepace of change
Organizations willuse technology tomeasure and impactthe well-being ofemployees
Social media willbecome thecollaborationplatform forwork
Workplace Trends Reflect Needs of Workforce
Employees willdefine their ownwork schedule,based on whatis convenientand effective forthem
Employees wll bepaid in real-timebased on theirwork contribution(reaching a projectmilestone, etc…)
Companies willexclusively hirecontract workerson a project-by-project basis(little to no full-time, steadyemployees)
People will usetechnology tolearn anything,anytime,anywhere
Technology (suchas real-timecensors) will enableorganizations toproactively adjustthe performance ofindividuals andteams
Automation,smartmachines, andAI will replacepeople forrepetitive work
Workplace Trends Reflect Needs of Workforce
(Source: ADP Research)
▌HR needs to think business, not just HR. The external marketmust be integrated within how HR operates
▌Analytics capabilities will be a fundamental requirement for theeffective HR business partner
▌Build relationships. Connect yourself to central nodesin the network
Key Takeaways