MERCER WEBCAST PRELUDE TO DAVOS A PREVIEW of THE WORLD S HUMAN CAPITAL AGENDA DECEMBER 4, 2013

Transcription

1 MERCER WEBCAST PRELUDE TO DAVOS A PREVIEW of THE WORLD S HUMAN CAPITAL AGENDA DECEMBER 4, 2013

2 Today s speakers PAT MILLIGAN New York SENIOR PARTNER, REGIONAL PRESIDENT, NORTH AMERICA Pat.Milligan@mercer.com CHARLOTTE HARDING Geneva SENIOR ASSOCIATE, TALENT Charlotte.Harding@mercer.om ORLANDO ASHFORD New York SENIOR PARTNER, PRESIDENT OF THE TALENT BUSINESS Orlando.Ashford@mercer.com RICK GUZZO Washington, DC PARTNER, STRATEGIC WORKFORCE SCIENCES INSTITUTE Rick.Guzzo@mercer.com MERCER WEBCAST December 5,

3 Agenda What we will cover today Preview the Human Capital Agenda in Davos 2014: Discuss the Top 3 Human Capital Dilemmas of the 21 st Century Provide Insights on the findings of the Human Capital Report Preview of New Techniques in Talent Sourcing MERCER WEBCAST December 5,

4 Mercer Collaboration with the World Economic Forum Coming Soon: Education and Skills 2.0: New Targets and Innovative Approaches Intellectual capital development: Talent Mobility Good Practices The Human Capital Report Education and Skills 2.0 Collection of good employer practices Talent Barometer Global Agenda Council on Education and Skills CEO forum to share industry related concerns Leadership and Trust MERCER WEBCAST 3

5 HUMAN CAPITAL DILEMMA #1

6 Where we are today 202M unemployed people globally YET 34% of employers cannot fill available jobs MERCER WEBCAST 5

7 Where we will be in the future By 2020, there will be 38-40M less workers with tertiary education than employers need M more low-skill workers than employers need MERCER WEBCAST 6

8 Human Capital Dilemma #1: The Education/Skills Gap How can we close the Skills Gap? Education Gap? To ensure employers find Talent with the right skills to meet the continuously changing business needs MERCER WEBCAST 7

9 A Life Cycle Approach to Education Future Life Plan Continuum Historical Life Plan Linear Leisure Work Education MERCER WEBCAST AGE 8

10 Multistakeholder Approach: Collaboration is Key GLOBAL REGION INDUSTRY ORGANIZATION GOVERNMENTS ACADEMIA NGOs ORGANIZATIONS NTERNATIONAL ORGANIZATIONS MERCER WEBCAST

11 Education Investments: Investment by Private Sector Pay Dividends COMPANY INVOLVEMENT YIELDS BETTER OUTCOMES 43% SAY SCHOOLS MEET IMMEDIATE NEEDS 41% SAY SCHOOLS MEET FUTURE NEEDS 87% PARTNER WITH TERTIARY SCHOOLS 89% OFFER INTERNSHIPS 60% SAY PROFESSIONAL SCIENCES ARE TOP PRIORITY IMPORTANT CORRELATES OF SUCCESS Partnering with tertiary schools Internships Apprenticeships Job fairs/portals Participation on university advisory councils & shaping academic curricula Source: Mercer Talent Barometer 2013 wwww.mercer.com/talentbarometer MERCER WEBCAST 10

12 HUMAN CAPITAL DILEMMA #2

13 The Human Capital Report The Human Capital Index seeks to: Measure countries on their ability to develop and deploy healthy, educated and able workers Identify the most successful countries in the world when it comes to maximizing the long-term economic potential of their respective labour forces. Help national governments, business and other stakeholders understand how well a country is using its entire human capital endowment today. Catalyse action to address gaps in performance and foster public-private collaboration on workforce planning for the future. Employer Uses Strategic Workforce Planning Talent Sourcing Developing programs to enable underutilized groups, such as women or aging population MERCER WEBCAST 12

14 Human Capital Report: index structure and data sources Survival Well-being Health Access to Services Health and Wellness Workforce and Employment Participation Talent Training Access Quality Attainment Education Four critical areas for measuring the human capital Enabling Environment Infrastructure Collaboration Legal Framework Social Mobility Three core determinants of human capital development (education, health and wellness and workforce and employment) Plus indicators on the Enabling Environment that look at how efficiently the country deploys its human capital 51 variables; 25 from the Forum s Executive Opinion Survey; the rest a combination of data from international organizations and other sources MERCER WEBCAST 13

15 Top 20 Countries Country 2013 rank Z-score Switzerland Finland Singapore Netherlands Sweden Germany Norway United Kingdom Denmark Canada Belgium New Zealand Austria Iceland Japan United States Luxembourg Qatar Australia Ireland MERCER WEBCAST 14

16 Where we are today NUMBER OF PEOPLE OVER AGE B 810M 2012 MERCER WEBCAST 15

17 Where we will be in the future NUMBER OF PEOPLE OVER AGE B 810M MERCER WEBCAST 16

18 Human Capital Dilemma # 2: Underutilized workforce segments Human Capital Index Rank: 6 (n=122) Pillar 1: Education 19 GERMANY Pillar 2: Health and wellness 8 Pillar 3: Workforce and employment 9 Pillar 4: Enabling environment 3 Additional Indicators Total population (1,000s) 83,017.4 Median age of population 44 GDP per capita PPP (constant 2005, international $) 34,766 GDP growth (annual %) 0.7 Aged dependency: 31.6% Youth dependency: 20.4% Male labour force participation, age 65+: Female labour force participation, age 65+: n/a n/a Education and Workforce Distribution Key: Source: The Human Capital Report/WEF 2013 MERCER WEBCAST 17

19 Human Capital Dilemma # 2: Underutilized workforce segments Human Capital Index Rank: 15 (n=122) Pillar 1: Education 28 JAPAN Pillar 2: Health and wellness 10 Pillar 3: Workforce and employment 11 Pillar 4: Enabling environment 13 Additional Indicators Total population (1,000s) 127,352.8 Median age of population 45 GDP per capita PPP (constant 2005, international $) 31,425 GDP growth (annual %) 1.9 Aged dependency: 36.0% Youth dependency: 20.9% Male labour force participation, age 65+: 2.9% Female labour force participation, age 65+: 1.8% Education and Workforce Distribution Key: Source: The Human Capital Report/WEF 2013 MERCER WEBCAST December 5,

20 HUMAN CAPITAL DILEMMA #3

21 Where we are today A mismatch of information on candidates and opportunities MERCER WEBCAST 20

22 Where we will be in the future An Energy Industry perspective Global Workforce Challenges of 2030 Energy Workforce Challenges China and India will supply nearly 60%of the new net workers added to the global labor pool and the largest suppliers of college educated workers 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 and 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 1.1M in related industries The growth rate of the global labor 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% MERCER WEBCAST 21

23 Human Capital Dilemma #3: Increase the size of the talent pool through alternative talent sources International Talent Crossover Talent Military Veterans FUTURE RECRUITING Gamification MERCER WEBCAST 22

24 Mercer s Talent Acquisition Ecosystem Understand Supply & Demand Sourcing & Job Advertising Assessment & Matching Mercer s Solution Source Global Talent Through Technology and Web Crawling + + Simulation Game A B C Advanced Matching Algorithm Provide external labor market supply and demand data as well as company workforce projections Expand global talent pool and source candidates using new innovative technologies Assess candidates technical and soft skills through a game-based assessment as well as their preferences and cultural fit to ensure a perfect match MERCER WEBCAST 23

25 Government Perspective: Strategic Workforce Planning International Trade Workforce Strategy Canada Economic growth depends on international trade Workforce dynamics are placing trading power at risk Workforce Practices for Competitiveness ASEAN Shared country-regional economic development goals Unique workforce strengths / vulnerabilities by country MERCER WEBCAST 24

26 Employer Perspective: Emerging-Market Talent Challenges in the Insurance Industry The Challenges Double-digit business growth in emerging markets Versus single-digit in mature markets In-country market knowledge is critical for key roles, such as Actuarial Underwriting Sales Supply of in-country talent in critical roles is low relative to expected demand Other industries compete for that same talent The Objectives Secure local talent essential to business growth Locate regional headquarters in the most advantageous labor markets MERCER WEBCAST 25

27 Key Insurance Industry Occupations United States Headcount in Insurance Industry Headcount in Non-Insurance Industry Total Headcount % of Total Working in Insurance Industry Actuaries ( ) 14,140 7,200 21,340 66% Insurance Underwriters ( ) 82,800 9,010 91,810 90% Financial Analysts ( ) 17, , ,810 7% Claims Adjusters ( ) 196,630 78, ,050 71% Personal Financial Advisors ( ) 7, , ,470 4% Insurance Sales Agents ( ) 323,520 13, ,740 96% Distribution of Key Insurance Occupations (Insurance Industry) Insurance Sales Agents Actuaries Insurance Underwriters Financial Analysts 20% P&C 24% Life 23% Health 33% all other Claims Adjusters Personal Financial Advisors The industry competes heavily with other sectors for certain types of talent Data source: US Bureau of Labor Statistics Occupational Employment Statistics (Standard Occupation Code in parentheses); American Academy of Actuaries 2013 membership statistics MERCER WEBCAST 26

28 Size of Insurance Industry Talent Pool Globally 2,500,000 2,000,000 1,500,000 1,000, ,000 0 US EU-15* UK Brazil Mexico Shanghai Source, National Statistical Agencies. * EU-15 includes: Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, Spain, Sweden, United Kingdom. MERCER WEBCAST 27

29 Size of the Talent Pool in Key Occupations US EU-15* UK Brazil Mexico Shanghai Actuaries 14,140 9,500 10,400 1, Insurance Underwriters 82,800 55,500 28,400 10,200 5,300 4,300 Financial Analysts 17,350 11,600 2,900 2,100 1, Claims Adjusters 196, ,700 75,100 24,100 12,600 10,200 Personal Financial Advisors 7,590 5,100 1, Insurance Sales Agents 323, ,700 53,600 40,000 20,800 16,800 Source: Mercer External Labor Market Analysis, US Bureau of Labor Statistics. * EU-15 includes: Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, Spain, Sweden, United Kingdom. MERCER WEBCAST 28

30 Who Has An Interest In The Human Capital Agenda MERCER WEBCAST 29

31 Questions PAT MILLIGAN New York CHARLOTTE HARDING Geneva ORLANDO ASHFORD New York RICK GUZZO Washington, DC QUESTIONS Please type your questions in the Q&A section of the toolbar and we will do our best to answer as many questions as we have time for. To submit a question while in full screen mode, use the Q&A button, on the floating panel, on the top of your screen. FEEDBACK Please take the time to fill out the feedback form at the end of this webcast so we can continue to improve. The feedback form will pop-up in a new window when the session ends. CLICK HERE TO ASK A QUESTION TO ALL PANELISTS View past recordings and sign up for upcoming webcasts MERCER WEBCAST December 5,

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