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Enhancing the Connection between Training and Employers

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Title: Enhancing the Connection between Training and Employers


1
Enhancing the Connection betweenTraining and
Employers
  • Bojan Cubela
  • Manager, Workforce Development
  • Joint Council Summer Meeting
  • The Evergreen State College, August 17, 2005

2
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

4
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

5
Jobs At Manpower
6
  • Manpower Business

7
U.S. Employment Outlook
Source Manpower Employment Outlook Survey, 2nd
Quarter 2004 www.manpower.com/meos
8
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

9
Trends in the world of work
10
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

11
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

12
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
13
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

14
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

15
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

16
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
17
U.S. is getting older and more diverse
Racial Diversity
18
Sociological Changes Creating a Different Work
Dynamic
Family vs. Work values?
Coping with constant change Severe test on
human psychology
Loyalty vs. Compensation?
19
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.

20
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

21
Work is migrating from Industrialized Countries
to all Continents
Source Business Week, 3 Feb 03 Cover Story
22
and is affecting white collar jobs as well as
blue collar
Source Business Week, 3 Feb 03 Cover Story
23
Why higher skilled workers want to migrate to
higher paying Countries like the US
Source Business Week, 3 Feb 03 Cover Story
24
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
25
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
26
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

27
Employers Hiring Challenge
  • Too many people (candidates)
  • Not enough jobs (high unemployment?)
  • Not enough talent (right match)

28
Occupational Bubbles In 2010
Bubbles represent of workers employed within
each segment (n168 Million Workers Total)
Computers and Math
Source Manpower Market Intelligence Department
29
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

30
What Skills are in Demand
Technical Skills
Education
Business, Soft Skills
Experience
Source U.S. Department of Commerce, July 2003
31
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
32
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

33
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
34
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

35
Ford Foundation Research
  • Workforce intermediaries that engage
  • employers cooperatively and collaboratively
  • are most likely to generate benefits
  • for workers and employers.

36
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

37
The PEERS Typology of Workforce Intermediaries
38
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

39
Functional Uses of Workforce Intermediaries
40
Employer Satisfaction with Workforce
Intermediaries
41
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

42
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

43
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

44
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

45
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!

46
Closing Thought
47
Questions?
48
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)

49
Contact
  • Bojan Cubela
  • Manager, Workforce Development
  • Manpower
  • phone (305) 670-1875
  • cell (305) 724-3615
  • e-mail Bojan.Cubela_at_na.manpower.com
  • www.manpower.com
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