INDUSTRY BREAKOUT SESSION ENGINEERING, ENERGY AND MINING

Transcription

1 INDUSTRY BREAKOUT SESSION ENGINEERING, ENERGY AND MINING 3-4 APRIL, BUDAPEST, HUNGARY Ellyn Karetnick UK Helena Wennberg Nordics

2 Today s Speakers Ellyn Karetnick UK ellyn.karetnick@mercer.com Helena Wennberg Nordics helena.wennberg@mercer.com 1

3 Agenda What We Will Cover Today Talent Outlook: Setting the Scene Key Mobility Challenges Sharing Experiences Tops Tips and Strategies 2

4 Section 1 TALENT OUTLOOK SETTING THE SCENE

5 Understanding the Talent Market Internal labour market analysis Insights drawn from multiple regions, With labour flows and workforce-planning implications Global Employment Costs Industry Labour Market Engagement Analysis Employee preferences Compensation and benefits globally Workforce Practices Prevalence and good practices on: Talent Challenges Sourcing and selection Contractors/Contingent Staff Rewards/Employment Proposition Training and development Performance management Retention Workforce Planning Employment Proposition and Cost Workforce Practices STRATEGIC WORKFORCE INSIGHTS Labour Availability Employee Engagement External labour market analysis and forecast Demand: job-families and hot jobs Supply: country/region and 5-year and 10-year New entrants Quantity and staffing benchmarking Mobility April 4,

6 Talent Outlook Global Headwinds Primary Business Challenges Innovation Human capital Global political / economic risk Government regulation Global expansion Cost optimisation Customer relationships Sustainability Corporate brand and reputation Investor relations Source: Conference Board CEO Report Global Workforce Challenges of 2030 To maintain historical rates of GDP growth, aging advanced economies will need to increase productivity growth by 60% The growth rate of the global labour force will fall by nearly a third A shortage of 16 to 18 million high-skilled workers in advanced economies (13% of demand) A shortage of 45 million medium skilled workers in developing economies (15% of demand) Aging advanced economies have the highest GDP per capita and educational attainment and also the oldest populations, making it more difficult to supply high-skilled talent from domestic sources China and India will supply nearly 60% of the new net workers added to the global labour pool and largest suppliers of college educated workers Unemployment is not a good barometer of available talent when unemployment for the least skilled are 2 to 4 times those of the most highly skilled workers whether the economy is in recession or recovery Source: McKinsey Global Institute 5

7 Talent Outlook Global Headwinds Global Workforce Challenges of 2030 China and India will supply nearly 60%of the new net workers added to the global labour pool and the largest suppliers of college educated workers Energy Workforce Challenges 25% of Energy CEOs say a lack of qualified personnel is already impacting operations A shortage of 45 million medium skilled workers in developing economies (15% of demand) 45% of workers are above age 45 and nearing retirement with no adequate replacement for this knowledge / expertise A shortage of 16 to 18 million high-skilled workers in advanced economies (13% of demand) In NA by 2020 as many as 600,000 new energy jobs will be created and 1.1 million in related industries The growth rate of the global labour force will fall by nearly a third The U.S. will need 1M additional STEM graduates in the next 10 years -- an increase in STEM degrees of +33% 6

8 Talent Outlook What s on the Minds of Energy CEOs? Top Business Risks Access to reserves Uncertain energy policy Cost containment Worsening fiscal terms Health, safety and environment Human capital deficit Unfamiliar environments Climate change Price volatility Competition from new technologies Industry Human Capital Risks and Challenges 1. Aging workforce, bimodal workforce 2. Scarcity of skilled technical talent 3. Scarcity of skilled trades talent 4. Sourcing talent and mobility 5. Turnover in critical roles 6. Career development choke points 7. Accelerated compensation & benefits competition 8. Inadequate leadership succession pipeline 9. Creating a unique and compelling value proposition 10. Inadequate training & development processes 11. Motivating and engaging the workforce 12. Sector brand image Source: Ernst & Young 7

9 Talent Outlook Market Intelligence Engineering itself requires innovation and transformation in order to generate more interest and enrolment. New approaches must be developed in education and training, notably handson, problem-based learning that reflects engineering s problem-solving nature (UNESCO) Not enough engineering graduates are entering into long-term employment in the sector. Three years after graduation, just under 70% of male and 50% of female graduates from engineering and technology programs are working in their chosen fields (Royal Academy of Engineering, UK) Employers continue to rely more on buying over building talent to fill open positions (Mercer Talent Outlook and Workforce Survey) Immigrants already constitute 20% of engineering professionals in the UK, across sectors that include oil and gas extraction, aerospace, and computer, electronic and optical engineering but more are still needed to fill the shortage of engineers (Royal Academy of Engineering, UK) 04 April

10 Talent Outlook Market Intelligence Oil and gas companies are facing a talent shortage across all critical occupational groups (Mercer Talent Outlook and Workforce Survey) Only 28% of oil and gas companies believe they have an effective workforce plan in place (Mercer s Talent Barometer Survey) Nearly 90% of senior HR executives at 22 top international oil and gas companies believe their industry faces a talent shortage and call the problem one of the top five business issues facing their companies. 88% of respondents cited increasing compensation as their primary solution to attracting and retaining talent (E&Y/Rice University survey) 04 April

11 Section 2 TALENT OUTLOOK KEY MOBILITY CHALLENGES

12 Talent Outlook What s on Your Mind? Definition and types of mobility Flexibility vs. consistency and fairness Mobility analytics Project-based assignments Managing costs Dealing with Fx rate fluctuations Housing allowance data (Middle East) Localisation of expatriates Social security and pension for rotators Governmental demands for expatriates to contribute to local social security and pension schemes (Latin America) 04 April

13 Section 3 TALENT OUTLOOK SHARING EXPERIENCES

14 Talent Outlook Sharing Experiences Based on early input from today s participants, the key focus areas below have been compiled for our group discussions: 1. Operational assignment management Managing expatriate costs and local benefits Specific assignment type issues (eg. rotators) 2. Developing and using mobility analytics Is your organisation tracking and reporting data? Is there co-operation and alignment between overall Talent Management and Global Mobility practices in your organisation? What are your organisations doing? Considering? 04 April

15 Section 4 TALENT OUTLOOK TOP TIPS AND STRATEGIES

16 Talent Outlook Top Tips and Strategies Strike the right balance in building and buying talent. Create a more integrated approach to global workforce planning that is scalable. Recognise local realities nationalisation strategies can help grow talent pools. Define assessment criteria. Tighten your focus on talent sourcing. Effectively utilise existing planning tools to identify critical talent groups. Leverage gamification and social media. Innovative sourcing and selection of the right talent for assignments is critical in managing a multigenerational workforce. Match global mobility programmes to talent management strategies. Define your global mobility philosophy. For each assignment, consider whether it is growing the business, developing global leaders, or filling a critical skills gap do not leave talent mobility to chance. Embrace cross-functional collaboration. Key to managing and optimising a global workforce. 04 April

17 QUESTIONS

18