1. Workforce Strategies for 2015 Challenge Opportunity Fusion2007 CEO-CIO Symposium

2. 2 Workforce Strategies for 2015 Manpower – Who Are We? 72 countries and territories 4,300 offices worldwide 2.5 million employees worldwide North American employees 457,000 400,000 worldwide clients 1,100 offices in North America

3. 3 Workforce Strategies for 2015 How many of you are having trouble recruiting talent today?

4. 4 Workforce Strategies for 2015 29% of employers worldwide would have hired more professional staff over the last six months if they were available Source: Manpower Survey August 2006 (32,000 Employers in 26 Countries) 45% for the United States

5. 5 Workforce Strategies for 2015 Labor Supply – Baby Boomer Phenomenon 2000 to 2010 U.S. Workforce By Age (% Change) Source: U.S. Census Bureau In the next 5-10 years, we will begin to see the effects of the Boomer phenomenon as their participation in the workforce begins to change. More pressing is the decline of mid-career workers – who will backfill the Boomers? 16-24 25-34 35-4445-5455-6465+

6. 6 Workforce Strategies for 2015 Labor Supply – Declining Birth Rates Global Birth Rates in Developed Countries Source: United Nations Population Division Delays in childbearing along with the increased effectiveness of birth control have significantly impacted population growth around the world. Bigger issue: a sustainable population requires 2.1 births/female.

7. 7 Workforce Strategies for 2015 Labor Supply – Working Age Population Decline Percent Change In Working Age Population (20 to 64) U.S. Canada U.K.FranceGermanyItalyJapanChina Source: U.S. Census Bureau Europe will need to relax it’s constraints on immigration. China will need to relax the flow of labor from rural to urban areas. Japan has few options available.

8. 8 Workforce Strategies for 2015 Labor Supply – Is India & China A Solution? Source: McKinsey Global Institute Demand vs. Supply for Low Wage Engineers (< 7yrs Experience) At current rates of offshoring, labor supply in these three countries will be fully consumed by the U.S. and U.K. by 2011 – likely not a long-term supply of IT labor.

9. 9 Workforce Strategies for 2015 So, what do we do?

10. 10 Workforce Strategies for 2015 Workforce Strategy – Meet Today’s Workforce Young 20 to 35 yrs-old Late Gen X Gen Y Net Gen Mid-Career 36 to 55 yrs-old Boomers Early Gen X Mature 56+ yrs-old Schwarzkoph Gen Early Boomers

11. 11 Workforce Strategies for 2015 Workforce Strategy – Meet Today’s Workforce Personal Characteristics Success – accelerated achievement Want wide latitude / responsibility Independent – limited loyalty, 3 yrs Rule “morphers” – suit to fit Highly networked – “tribal” Quick learners, adaptive / creative Technology as a personal extension Need From Employers Flexible schedules, time off Opportunities to learn / grow Chance to contribute immediately Team-based work, collaboration Frequent employer feedback Open workplace communications Pay-for-performance With high expectations and in high demand, this group wants it all – NOW! Source: Workforce Crisis – Dychtwald, Erickson, Morison, 2006 The Young And The Restless Young

12. 12 Workforce Strategies for 2015 Workforce Strategy – Meet Today’s Workforce Personal Characteristics Success – true to one’s self Eschew authority, distrust leaders Loyal, average tenure is 10 yrs Cause oriented – embrace vision People oriented Ambitious, idealistic, self-reliant Technology as a tool Need From Employers Work / life balance Opportunity to make an impact Diversity of work experiences Career development / promotion Chance to reinvent themselves Comprehensive benefits Wealth accumulation Encompassing most of the Boomers, this group feels the career bottleneck. Source: Workforce Crisis – Dychtwald, Erickson, Morison, 2006 Frustrated Idealists Mid-Career

13. 13 Workforce Strategies for 2015 Workforce Strategy – Meet Today’s Workforce Personal Characteristics Success – wealth and status Value structure, rules and fairness Low turnover, high level of loyalty Reliable, hard-working, confident Not comfortable with diversity Practice teamwork, serve others Technology as a transient challenge Need From Employers Continue working Flexible schedules Make meaningful contribution Experience valued Improve skills, stretch talents Flexible benefits Financial security - retirement Among people under 60 collecting pensions, over half are still working. Source: Workforce Crisis – Dychtwald, Erickson, Morison, 2006 Delayed Gratification Mature

14. 14 Workforce Strategies for 2015 Workforce Strategy – Assess Current State How many employees fall within each of the cohorts? Is it balanced or skewed toward one cohort or another? What turnover exists in each cohort? Reasons for leaving? What skill shortages will employee turnover create? Are you addressing each cohort’s employment needs? Are you addressing their personal characteristics?

15. 15 Workforce Strategies for 2015 Workforce Strategy – Expand Labor Supply Traditional labor channels –Outsource non-core processes to 3 rd parties –Offshore work with low collaboration requirement –Focus on automating business processes –Re-skill / up-skill existing employees –Develop recruiting relationships with select universities –Tap into growing labor pools – women, minority immigrants

16. 16 Workforce Strategies for 2015 Workforce Strategy – Expand Labor Supply Nontraditional labor channels –Implement flexible retirement options for mature workers –Reengage retired workers, laid-off workers, alumni –Identify labor market reentrants (e.g. mothers returning to work) –Pursue underemployed (e.g. disabled) –Increase focus on employee retention

17. 17 Workforce Strategies for 2015 Workforce Strategy – Employee Value Proposition YoungMid-CareerMature Source: Workforce Crisis – Dychtwalk, Erickson, Morrison, 2006 Focus on day one Give responsibility early Open, bidirectional communication - feedback Team with mentors Fixate on employee retention Form alumni groups Do it - hire mature workers Root out age bias in systems and processes Implement flex retirement Encourage mentoring “Welcome Back” retirees Address benefit needs Offer new assignments Provide training / develop Recruit market reentrants and restructuring survivors Encourage mentoring Support flexible work arrangements

18. 18 Workforce Strategies for 2015 Next step – get started!

19. 19 Workforce Strategies for 2015 Immediate Actions To Take Engage Human Resources – this will be on their agenda Assess your own situation – understand demographics Educate yourself – talk to employees, solicit concerns Measure and track employee engagement – take action Involve employees – collaborate on workforce strategy Implement strategy – track progress, adjust as necessary Communicate results – brand: “employee friendly company” Good Luck!!

20. 20 Workforce Strategies for 2015 Parting Thoughts