1. The Perfect Storm: THE FUTURE OF RECRUITMENT, RETENTION AND ENGAGEMENT
JAY J. JAMROG Sr. V.P., Research, i4cp

2. Institute for Corporate Productivity
i4cp is the world’s largest vendor-free network of corporations focused on building and sustaining a highly productive, high market performance organization 2

3. The War for Talent
Myths and Realities

4. The War for Talent

5. The Workforce is Aging 43% 50% 40% 10,000 15%
of the U.S. labor force eligible to retire in next decade
50%
F500 expect to lose of senior managers in next 5 years
40%
of these companies have no formal succession plans
10,000
Every day people turn 55
15%
By 2015, there will be a decline in yr. olds, while demand increases 25%
Source: Various Sources

6. The Workforce Is Aging
The 55+ population is projected to swell from 29% to 35% from 2006 to 2016
Labor force participation of those 55+ will jump from 38% to 43% in that same period
In 2016, those 55+ will be 35% of the population and those 65+ will be 18.5% of the population
Regardless of these increases, a large number those 55+ are expected to retire
MLR, November 2007, Dohm and Shniper
Source: BLS, 2007

7. Education System is Struggling
A shortage of 2.2 million teachers is predicted in the K-12 system over the next 10 years
With “Gen Y” entering school, class sizes are dramatically up, and new classroom additions only marginally so
Putting a strain on the quality of education
Achievement scores in subjects such as mathematics and science progressively fall for U.S. students as they move from lower into higher level grades, putting an extra burden on eventual employers
Colleges are significantly increasing the number of remedial courses required for entering freshmen; graduates are less prepared for work life than they were previously

8. Three Storms On the Horizon
Labor Shortage?
SHOWERS PREDICTED
Skill Deficit?
THUNDERSTORMS LIKELY
Knowledge Drain?
SEVERE WEATHER ALERT

10. Births per Year in the U.S.
Gen X
66.0 mil
1965 to 1983
to 44
to 54
Depression
45.4 mil
1927 to 1945
to 82
to 92
Millions
Baby Boom
75.5 mil
1946 to 1964
to 63
to 73
Gen Y
74.6 mil
1984 to 2002
to 25
to 35
1927
1946
1965
1984
2002
Source: U.S. Bureau of the Census

11. Generational Markers Great Depression Electrification World War II
Cold War
BABY BOOM
GENERATION
Civil Rights
War on Poverty
Race to Space
Assassinations
Vietnam
Impeachment
GENERATION X
AIDS
Video Games
Homelessness
Berlin Wall
Technology
Diverse
Latchkey Kids
Downsizing
GENERATION Y
Poverty
The Environment
Violence
Columbine
Terrorism
Wired
Medicated

12. Characteristics of Generations
Value in Organization
View of Leadership
View of Authority
DEPRESSION
Loyalty
Similarities
Relationships*
By Hierarchy
Respectful
BOOM
Profitability
Reputation
“Sink or Swim”
By Consensus
Love/Hate X
Stimulation
Balance
Feedback
By Competence
Unimpressed & Unintimidated Y
“Diverse Environment”
Support System
By Pulling Together
Polite

13. Characteristics of Generations
Work Ethic
View of Feedback
DEPRESSION
Work hard
Save money
What’s “play”?
No news is good news
BOOM
Work hard
Play hard
Worry about money
Once a year with documentation X
Work hard if it doesn’t interfere with play
Interrupts and asks how they’re doing Y
Good grades
Make others pay
Save money
Wants feedback at the touch of a button

14. Generation gaps sometimes make it hard for me and my team to get things done

15. The toughest generation for me to work with is…

16. The easiest generation for me to work with is…

17. Which generation has done the best at achieving work/life balance?

18. Which generation acts the most entitled at work?

19. Filling the void? Generation Y

20. Generations
characteristics

21. Who is Gen Y?

23. Environment Experience by Most Young People
Technology as a toy
Increased cultural awareness
Dual income/career parents
Corporate restructuring

24. The importance of technology
Gen Y
The importance of technology

25. The pace of technological change keeps accelerating
As late as the 1940s, the product cycle (idea, invention, innovation, imitation) stretched to 30 or 40 years. Today, it seldom lasts 30 to 40 weeks.
Eighty percent of the scientists, engineer, and doctors who ever lived are alive today – and exchanging ideas in real time on the internet.
All the technical knowledge we work with today will represent only 1% of the knowledge that will be available in 2050.

26. Web 2.0 is Important

43. A Digital Generation Gap
Source: American Express

44. More hi-tech…more hi-touch
Remote
Distant
Impersonal
One size fits all
I’m not important
HI-TOUCH
Need for affiliation
Personal attention
Recognize individual differences
Customized response
I’m important

46. Environment Experience by Most Young People
Increased cultural awareness
Dual income/career parents
Technology as a toy
Corporate restructuring

47. Gen Y
diversity

48. Cultural Diversity Baby Boom Baby Bust BABY BOOM GENERATION
BABY BUST GENERATION
Baby Boom
Baby Bust
Source: U.S. Bureau of the Census

49. U.S. Population is Becoming More Diverse
Source: U.S. Bureau of the Census, PEW Research

50. A rationale for the importance of diversity
In a team environment, when diversity is less than 22%
contrary opinions are interpreted as “noise”.
Under 22% = “Lone Voice”
Over 30% = emerging dynamic → contributions have value
22%
Leadership Racial Diversity
Cornell University Study (ibid)
As depicted in the figure which represents the relationship between leader racial diversity
and net income, the form of the relationship is U-shaped with the low point occurring at
approximately the 22% minority representation point.

51. Establishing Realistic Workforce Targets High Level Process
Required
Document skills and requirements for the positions
Know your talent
Familiar with candidate sources or pools
Forethought for future organization needs
Understand what data is available
To define diversity and
Calculate the baseline
Create Assumptions
Separation Rates
Movement Rates
Addition/Reduction in Headcount
Determine a long-term desired state
Based on data determine the incremental annual improvement

52. Workforce Target Setting Math
Establish baseline with headcount and demographic numbers
Calculate Opportunities
Assumed Separations/Promotions
Open Positions
Additional Positions
Determine Sourcing Strategy
Internal
External
Based on Sourcing Strategy, evaluate availability
Set targets based on assumptions, calculations and information.

54. Environment Experience by Most Young People
Dual income/career parents
Increased cultural awareness
Technology as a toy
Corporate restructuring

55. Gen Y
Key work issues

56. Two-income couples are becoming the norm
In 75% of U.S. households, both partners worked full- time in 2006, up from 63% in 1992
In Europe today, dual-income households outnumber single-income households by about two to one. Countries in northern Europe tend to have a higher percentage of dual-income households than those in southern Europe
Growing numbers of grandparents are raising their grandchildren. Among the poor, grandparents also provide live-in day care for the children of single mothers.

57. Parent Adult Child
Parent
Adult
Child

58. Broad Business Competency
LSI - Using stepwise regression, 5 of the 15 leadership competencies listed in this question were found to be predictive of the Leadership Success Index:
Strategy development
Business ethics
Strategy execution
Decision-making sciences
Knowledge of the customer
MPI - Only 1 of the 15 competencies in this question was found to predict Market Performance Index using regression analysis:
Sales 58

59. Relationship/Communication Competency
LSI – Using stepwise regression, 5 of the 19 leadership competencies predicted Leadership Success:
Creating an environment of trust and respect
Coaching skills
Community involvement
Role model for organizational values (also listed with MPI)
Emotional intelligence
MPI – 3 of the 19 competencies were found to predict the Market Performance Index (MPI),
Role model for organizational values
Negotiation skills
Business writing skills 59

60. Management Competency
LSI – Using stepwise regression, 3 of the 12 competencies listed in this question were found to be predictive of the Leadership Success Index:
Developing other leaders
Change management skills
Hiring talent (also list with MPI)
MPI – Only 1 of the 12 competencies in this question was predictive of the Market Performance Index (MPI),
Hiring talent 60

61. Utilization of Tools and Training Techniques
Overall
1-5 Scale
Highest
LSI
MPI
Correlation with LSI
Correlation with MPI
Perf Mgt & development plans
2.99
3.76
3.11
.49
.15
On-line or
e-learning
2.60
3.32
2.78
.41
.13
Mentoring
2.38
3.36
2.54
.57
.11
360 degree feedback
2.26
3.04
2.41
.36
.16
Internal coaching sessions
2.25
3.25
2.47
.14
Off the shelf courses from external suppliers
2.15
2.48
2.33
.33
Psy profiles to increase self awareness
2.06
2.89
2.12
.32
Custom courses from external suppliers
2.01
2.45
2.08
.35
Corporate university
1.93
2.57
On-boarding
1.91
2.76
2.09
.47
.12 61

62. Utilization of Tools and Training Techniques
Two techniques that showed the highest correlation with market performance (.19) are not being used by most organizations:
Simulations and role playing
Overall only 4.8% use this tool to a “high” or “very high” extent.
7.0% of large organizations use this tool to a “high” or “very high” extent.
14% of the highest LSI
6.2% of the highest MPI
Business case studies
Overall only 7.2% use this tool to a “high” or “very high” extent.
9.4% of large organization use this tool to a “high” or “very high” extent
18.9% of the highest LSI
9.9% of the highest MPI 62

64. Environment Experience by Most Young People
Corporate restructuring
Increased cultural awareness
Dual income/career parents
Technology as a toy

65. Gen Y
Succeeding with gen y

66. Loyalty has vanished
Tardiness is increasing; sick-leave abuse is common
Job security and high pay are not the motivators they once were
Young people watched their parents remain loyal to their employers, only to be downsized and out of work
Fifty-five percent of the top executives interviewed say that erosion of the loyalty and commitment will have a major negative effect on corporate performance in the future

67. When selecting a new employee What organization’s look for as predictors that he or she will become an engaged employee
All Respondents
Organizations with Highly Engaged Employees
Organizations with Disengaged Employees
Has positive attitudes toward
peers and customers
Has passion for work
Intelligent
Has excellent job skills
Confident in work abilities
Has desire to set and
achieve goals
Adaptable
Emotionally mature

73. Key issues Job Content Desire to contribute valuable work
Require task variety to avoid boredom
Increase marketable skills
Quality of Co-workers
Value intellectual stimulation
Anticipate team environment
Salary
Match cost of living

74. Key issues Career growth Do not believe in “paying dues”
Want transferability of experience
Work/life balance
Refuse to be workaholics like parents
“Work to live” not “live to work”

76. Jay J. Jamrog jay.jamrog@i4cp.com
For more information:
Jay J. Jamrog Or
i4cp Research Office 76