1. ©SHRM 2007 Building a Competitive 21st Century Workforce

2. 2 “The future is not what it used to be.”

3. 3 What is “Workforce Readiness”? School reform for tomorrow’s workers Remedial training for new entrants Retraining / skills development for current workers New skills for new / future jobs Retention of older workers Accommodations to attract retirees

4. 4 What is “Workforce Readiness”? School reform for tomorrow’s workers Remedial training for new entrants Retraining / skills development for current workers New skills for new / future jobs Strategies to employ persons with disabilities Retention of older workers Accommodations to attract retirees

5. 5 What is “Workforce Readiness”? School reform for tomorrow’s workers Remedial training for new entrants Retraining / skills development for current workers New skills for new / future jobs Strategies to employ persons with disabilities Retention of older workers Accommodations to attract retirees

6. 6 What is “Workforce Readiness”? School reform for tomorrow’s workers Remedial training for new entrants Retraining / skills development for current workers New skills for new / future jobs Strategies to employ persons with disabilities Retention of older workers Accommodations to attract retirees

7. 7 What is “Workforce Readiness”? School reform for tomorrow’s workers Remedial training for new entrants Retraining / skills development for current workers New skills for new / future jobs Strategies to employ persons with disabilities Retention of older workers Accommodations to attract retirees

8. 8 What is “Workforce Readiness”? School reform for tomorrow’s workers Remedial training for new entrants Retraining / skills development for current workers New skills for new / future jobs Strategies to employ persons with disabilities Retention of older workers Accommodations to attract retirees

9. 9 What is “Workforce Readiness”? School reform for tomorrow’s workers Remedial training for new entrants Retraining / skills development for current workers New skills for new / future jobs Strategies to employ persons with disabilities Retention of older workers Accommodations to attract retirees

10. 10 What is “Workforce Readiness”? School reform for tomorrow’s workers Remedial training for new entrants Retraining / skills development for current workers New skills for new / future jobs Strategies to employ persons with disabilities Retention of older workers Accommodations to attract retirees

11. 11 What is “Workforce Readiness”? School reform for tomorrow’s workers Remedial training for new entrants Retraining / skills development for current workers New skills for new / future jobs Strategies to employ persons with disabilities Retention of older workers Accommodations to attract retirees

12. 12 A Changing World India, China, and Developing Nations are producing large numbers of young people with top math, science, language and analytical skills.

13. 13 Results: World supply of highly skilled, relatively low pay workers is rapidly increasing. Global employers have choice of world’s skilled workers at a fraction of U.S. costs. Global employers are aggressively searching for lowest cost workers at every skill level. A Changing World

14. 14 Results: World supply of highly skilled, relatively low pay workers is rapidly increasing. Employers have choice of world’s skilled workers at a fraction of U.S. costs. Global employers are aggressively searching for lowest cost workers at every skill level. A Changing World

15. 15 Results: World supply of highly skilled, relatively low pay workers is rapidly increasing. Employers have choice of world’s skilled workers at a fraction of U.S. costs. They are aggressively searching for the lowest cost workers at every skill level. A Changing World

16. 16 A Changing World 1970s and 1980s: –U.S. lower-skilled, non-college jobs at risk. Today: U.S. high skilled, medium skilled and lower skilled workers being underbid by lower cost countries. At Greatest Risk: Routine work at all skill and pay levels; Easiest to automate or send offshore.

17. 17 A Changing World 1970s and 1980s: –U.S. lower-skilled, non-college jobs at risk. Today: –U.S. lower skilled, medium skilled, high skilled workers being underbid by lower cost countries. At Greatest Risk: Routine work at all skill and pay levels; Easiest to automate or send offshore.

18. 18 A Changing World 1970s and 1980s: –U.S. lower-skilled, non-college jobs at risk. Today: –U.S. lower skilled, medium skilled, high skilled workers being underbid by lower cost countries. At Greatest Risk: –Routine work at all skill and pay levels; –Easiest to automate or send offshore.

19. 19 How does a high-wage nation continue to create high-wage jobs? Technologically advanced or complex Most creative and innovative Highest quality Most productive A Changing World

20. 20 How does a high-wage nation continue to create high-wage jobs? Technologically advanced or complex Most creative and innovative Highest quality Most productive A Changing World

21. 21 How does a high-wage nation continue to create high-wage jobs? Technologically advanced or complex Most creative and innovative Highest quality Most productive A Changing World

22. 22 How does a high-wage nation continue to create high-wage jobs? Technologically advanced or complex Most creative and innovative Highest quality Most productive A Changing World

23. 23 How does a high-wage nation continue to create high-wage jobs? Technologically advanced or complex Most creative and innovative Highest quality Most productive A Changing World

24. 24 Creative Work Routine Work by People Routine Work by Machines United States Developing Nations Creative Work Research Development Design Marketing / sales Management Routine Work by People Routine Work by Machines Routine Work by People A “Jobs Pyramid” That Helps Us

25. 25 We’re Losing Tomorrow’s Workers  For every 100 students in 9 th grade …  Only 68 graduate on time …  Of those, only 40 enroll directly in college …  Of those, only 27 are still enrolled the following year …  Of those, only 18 earn an Associates Degree within 3 years or a BA within 6 years.

26. 26 We’re Losing Tomorrow’s Workers  For every 100 students in 9 th grade …  Only 68 graduate on time …  Of those, only 40 enroll directly in college …  Of those, only 27 are still enrolled the following year …  Of those, only 18 earn an Associates Degree within 3 years or a BA within 6 years.

27. 27 We’re Losing Tomorrow’s Workers  For every 100 students in 9 th grade …  Only 68 graduate on time …  Of those, only 40 enroll directly in college …  Of those, only 27 are still enrolled the following year …  Of those, only 18 earn an Associates Degree within 3 years or a BA within 6 years.

28. 28 We’re Losing Tomorrow’s Workers  For every 100 students in 9 th grade …  Only 68 graduate on time …  Of those, only 40 enroll directly in college …  Of those, only 27 are still enrolled the following year …  Of those, only 18 earn an Associates Degree within 3 years or a BA within 6 years.

29. 29 We’re Losing Tomorrow’s Workers  For every 100 students in 9 th grade …  Only 68 graduate on time …  Of those, only 40 enroll directly in college …  Of those, only 27 are still enrolled the following year …  Of those, only 18 earn an Associates Degree within 3 years or a BA within 6 years.

30. 30 Skills Shortage Vs. Labor Shortage The problem isn’t lack of labor; It’s lack of skilled labor. Only 20% of manufacturing workforce has the right skills for most new jobs. Only 26% of U.S. adults have a college degree; yet nearly all of the 50 highest paying occupations require one.

31. 31 How Serious is the Skills Problem? The 25% of the population in China with the highest academic standings … is greater than the total population of North America.

32. 32 How Serious is the Skills Problem? The 25% of the population in China with the highest academic standings … is greater than the total population of North America. Translation: China and India each have more honors students than we have students … and adults.

33. 33 How URGENT is the Skills Problem? The top 10 jobs that will be in demand in 2010 didn’t exist in 2004. The amount of new technical information is doubling every 2 years. Today’s elementary school students will have 10 to 14 jobs …before they turn 40. 60% of new jobs will require skills that only 20% of the current workforce possesses.

34. 34 Employer Perceptions “Are They Really Ready to Work?” Report by the Conference Board and SHRM: Employers are frustrated over preparedness of new entrants to the workforce. Nearly three-quarters of survey participants cite deficiencies in all 10 applied skills, such as teamwork, work ethic, critical thinking and communication. Conclusion: “The future work force is here … … and it is ill-prepared.”

35. 35 Employer Perceptions “Are They Really Ready to Work?” Report by the Conference Board and SHRM: Employers are frustrated over preparedness of new entrants to the workforce. Nearly three-quarters of survey participants cite deficiencies in all 10 applied skills, such as teamwork, work ethic, critical thinking and communication. Conclusion: “The future work force is here … … and it is ill-prepared.”

36. 36 Employer Perceptions Latest SHRM Survey of HR Professionals: What competencies are new employees missing? Overall professionalism (59%) Written communication skills (58%) Analytical skills (47%) Business knowledge (44%) Verbal communication skills (44%)

37. 37 A Changing World QUESTION: Why Should Employers Pick Our Graduates? ANSWER: They won’t …unless we match or exceed our competitors Academic performance; – Creativity and innovation; – Ability to learn and adapt quickly.

38. 38 A Changing World QUESTION: Why Should Employers Pick Our Graduates? ANSWER: They won’t …unless we match or exceed our competitors Academic performance; – Creativity and innovation; – Ability to learn and adapt quickly.

39. 39 A Changing World QUESTION: Why Should Employers Pick Our Graduates? ANSWER: They won’t …unless we match or exceed our competitors – Academic performance; – Creativity and innovation; – Ability to learn and adapt quickly.

40. 40 A Changing World “Unless action is taken to bring more skilled workers into the pipeline, American companies will soon struggle to find the workers they need to compete.” “A skills shortage will mean a decline in productivity … and our standard of living.”

41. 41 Workforce Readiness Matters Putting the right people with the right skills in the right jobs pays off in profits. Total returns to shareholders, 2002-2004 -Companies that fill positions within 2 weeks: 59% -Companies that fill positions in 7+ weeks: 11%

42. 42 What is to be done?

43. 43 #1: Identify The Gaps Conduct workforce assessments to identify gaps between the workers you have and the employees -- and skills -- you’ll need.

44. 44 #2: Directly Invest In Education By providing access to quality education, employees can shape the skills of both current and former employees. Ideas –Scholarships and tuition reimbursements –Dependent tuition assistance –Worksite schools –School-to-work programs

45. 45 #3: Provide Training Opportunities It’s about sustainability. Training pays off. 3 out of 4 participants in the Labor Force study said their training programs effectively addressed skills gap issues within their industries.

46. 46 #4: Forge Public Partnerships Medical systems are working closely with schools and state governments to fill nursing vacancies. Johnson & Johnson and Scripps hospitals have launched national campaigns to recruit nurses. Industry partnerships can also be effective in influencing public policy. By alerting lawmakers to professional needs, employers can help shape workforce reform initiatives.

47. 47 #5: Leverage Mature Workers By 2012, nearly 20% of U.S. workers will be 55 or older, up from 13% in 2000. AARP: 69% of those 45-74 plan to work in some form during “retirement”. HR managers need to create flexible work schedules, telecommuting options, training, phased retirement, and bridge jobs. SHRM joined AARP and 20+ other organizations to launch the Alliance for an Experienced Workforce.

48. 48 #5: Leverage Mature Workers Planning for the transition of knowledge of workers who are retiring is a key part of the strategy. “Leave-A-Legacy” type programs. Only 28% of companies have systems in place to transfer institutional knowledge. Possibilities: videotaping, mentoring, e-mail pipelines to retirees.

49. 49 U.S. trails Japan and Singapore in retention strategies Source: Manpower, The New Agenda for an Older Workforce, 2006

50. 50 5 Key Strategies for HR Strategic Workforce Planning Flexible Work Program Phased Retirement Targeted Benefits/Training Innovative Recruiting Programs

51. 51 Best HR Approach Start small and scale up. Focus on outcomes, not programs. Pitch workforce readiness investment in business. Answer 2 fundamental questions: 1.Why do we want to do this? 2.What’s in it for the employer?

52. Programs That Work 52 Home Depot’s “Snow Bird” Program 40% of organizations had flexible work schedules. 20% had bridge employment opportunities.

53. Programs That Work Home Depot’s “Passion Never Retires” In 2004, Home Depot partnered with AARP to promote job opportunities for AARP’s 35 million members. In 2005, AARP launched its National Employer Team initiative with 13 partners, including Home Depot. Today, 30 companies are in The National Employer Team. 53

54. 54 Your Encore Founded by Proctor & Gamble and Eli Lilly in 2003 to recruit and market highly skilled retirees for short-term assignments at member companies. Non-member companies can access the retiree experts at higher engagement fees. Retirees are employed by YourEncore, which provides all administrative, marketing, and accounting support. Programs That Work

55. 55 Other innovative examples Monsanto: Offers part-time reemployment opportunities with no loss of retirement benefits to workers who have been retired from the company at least six months. John Deere: Employs an executive with direct responsibility to coordinate communications with its 25,000 retirees. Also, offers its retirees temporary work assignments, consulting and contract work, telecommuting, and part-and full- time work programs. Programs That Work

56. 56 Raytheon Vision Systems Knows 35% of its workforce could retire by 2009 Created “Leave-a-Legacy” training program. – Matches near-retirees with high potentials. – Hired third-party coaches to facilitate mentorships. Other strategies: Videotaping near-retirees. Maintaining contact with retirees through e-mail.

57. 57 It will take a concerted, collaborative effort by all stakeholders to reverse the current trend. Academic Business Government HRProfessionals We Need To Work Together

58. 58 “If a nation expects to be ignorant and free, it expects what never was and never will be.” - Thomas Jefferson

59. 59 WMaroni@SHRM.org