Aligning the Workplace with Today s Nontraditional Workforce
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1 Aligning the Workplace with Today s Nontraditional Workforce Brett Walsh EMEA Human Capital Leader in Deloitte Consulting 12 June, 2008 International Forum - Building Sustainable Societies: Trends and Best Practices in Work and Family Balance
2 Agenda Talent the world s most sought after commodity The talent crisis in Spain Work-life balance Mass Career Customisation (MCC) Deloitte s experience of Mass Career Customisation Implementing Mass Career Customisation - our point of view Copyright 2007 Deloitte Development LLC. All rights reserved. 1
3 Talent the world s most sought after commodity External labour market data forecasts, jobs vs. employees (in millions) Civilian Labour Force (employed or looking for work) Employment (jobs available) Since 2007, the gap between demand and supply has been widening. Global demand is now out stripping supply. This means: Talent shortages for next 20 years Traditional operating models will fail Executive attention driven by economics (and short-term need), not enlightenment (long-term, strategic priorities) HR: What has gone before will not be anywhere near enough for the future - traditional approaches to succession management based on hierarchical career progression, will not necessarily work for the new generations of talent Even the most powerful talent procurers such as GE are struggling Source: Corporate Leadership Council 2006 Source: Corporate Leadership Council 2006 Copyright 2007 Deloitte Development LLC. All rights reserved. 2
4 Worldmapper - population estimates in
5 Worldmapper location of female managers 4
6 The talent crisis in Spain Organisations in Spain today face three key challenges that will lead to labour shortages in the areas where they are most needed: Population of Spain variance from % 40% 30% 20% 10% 0% -10% -20% -30% -28% -31% -40% -50% -40% -28% 19% 12% 27% 49% 17% Age brackets 41% Students registered and admitted in University entrance exams ( ) People (in thousands) Labour supply and demand ( ) Labor Supply Labor Demand Registered Admitted Unemployed 1 Even taking into consideration the impact of immigration, the Spanish population is getting older 2 The number of students entering university in all fields is falling 3 1 INE (Institute of National Statistics) 2 Ministerio de Educación y Ciencia 3 Peoplematters Labour demand is projected to overtake labour supply in 2015 and much earlier for qualified profiles 5
7 Converging key trends are dramatically changing the global talent marketplace Trends in the Talent Marketplace Shrinking Pool of Skilled Labor Changing Family Structures Increasing Number of Women in Workforce Changing Expectations of Men Emerging Expectations of Gen X and Gen Y Increasing Impact of Technology By 2012, there will be a 6 million person gap between the supply and demand of knowledge workers in the U.S. Only 17% of US households now have a husband in the workforce and a wife who is not, down from 63% in 1950 Women accounted for 58% of US college students in 2007, a sharp rise since the 1970 s Approximately 84% of US male executives want to realize professional aspirations while having more personal time Gen Y-ers are more Family-centric than the Baby Boomers As technology continues to advance, new models for how, where and when work gets done open up new possibilities Most women do not work continuously fulltime but on average the break is only 2.2 years. Of high potential women who stepped out, 93% want to step back into workforce, but only 43% do so full time. A Different Workforce in 2007 and Beyond Baby boomers do not want to exit workforce completely, and are looking for ways to stay connected Gen Y men and women want to set their own course, but are willing to stay in organizations that let them do so The workforce has changed, but the workplace has not Copyright 2007 Deloitte Development LLC. All rights reserved. 6
8 Q: What is today s response to this misalignment? A: Flexible Work Arrangements (FWAs) Flextime Reduced Hours/ Part- Time Compressed Work Week Banking of Hours Leaves/ Sabbaticals Job-Sharing Telework/ Telecommuting Gradual Retirement Copyright 2007 Deloitte Development LLC. All rights reserved. 7
9 Mass product customization is a significant part of today s consumer marketplace If you can customize your music, trainers, ring tones, and coffee, why not your career? Copyright 2008 Deloitte Development LLC. All rights reserved. 8
10 The benefits of mass customization Copyright 2007 Deloitte Development LLC. All rights reserved. 9
11 The Corporate Ladder is giving way to a Corporate Lattice TM model. Corporate Ladder Corporate Lattice Traditional hierarchy Singular path upward Move up or stop moving Work-versus-life balance Fits more traditional family structure Assumes workers needs remain consistent over time Upward momentum Integrated with talent management systems More conducive to evolving matrix structure Multiple paths upward Move faster, slower, change directions Career-life fit Adjusts as workers needs change over time Copyright 2007 Deloitte Development LLC. All rights reserved. 10
12 Mass Career Customisation (MCC) aligns the workplace with today s non-traditional workforce Mass Career Customization (MCC) Adjusts across four dimensions: Pace Options relating to the rate of career progression Workload Choices relating to the quantity of work Output Location/Schedule Options for when and where work is performed Role Choices in position and responsibilities The four dimensions can be adjusted in alignment with an employee s personal and career goals and needs, creating a career sine wave: Career Years: 0-2 Pre-family Career Years: 3-6 Changed industries Career Years: 7-10 Family and maternity leaves Career Years: 11+ Post-maternity Mass Career Customization is a patent pending process owned by Deloitte Development LLC. Copyright 2007 Deloitte Development LLC. All rights reserved. 11
13 MCC forms part of Deloitte s portfolio approach to talent management Talent Agenda Extend Our Talent Acquisition Efforts Raise Talent Development to a New Level Bring Mass Career Customization TM (MCC) to Life Strengthen Our Total Rewards Offerings Enriching our signature talent experience through focused priorities and investments Build the Workplace of the Future 12
14 It is critical that MCC be integrated into the performance management process All employees have an MCC Profile, all the time The MCC Profile depicts planned overall contribution to the business MCC provides a framework for on-going employee-manager dialog about career-life fit The employee s current level of contribution, as depicted in MCC Profile: Shapes annual goals Provides context for performance evaluation SAMPLE from Deloitte s performance management cycle Year-End: Assess performance against annual goals reflective of MCC Profile Career-Life Fit Goal Setting: Set annual goals reflective of MCC Profile Mid-Year: Review performance against annual goals reflective of MCC Profile Informs deployment decisions On-going: Review and revise MCC Profile as needed 13
15 During our internal rollout of MCC, Deloitte developed a number of key insights Objectives Ensuring continued client value and satisfaction Quantifying the impact of MCC on various talent models Supporting a cultural shift in acceptability of career customization Improving practitioner satisfaction and commitment Increasing retention of high talent Creating a sustainable, scalable model Conclusions No negative impact on client service More consistent and robust career conversations cited Improved satisfaction, morale, and productivity Positive correlation between MCC and retention Broad engagement in driving toward a new career model from multiple employee segments The floodgates for reduced schedules ( dial-downs ) did not materialize Increased window into those who want to accelerate through growth and development ( dial-ups ) Scale throughout the organization 14
16 Further implementation insights included 1. Consistency doesn t necessarily mean the same: framework and process are consistent career choices are individual and custom. 2. It goes both ways: career acceleration is as important as dialing down. 3. Enablement not entitlement: MCC is a shared responsibility between manager and employee. 4. Learn a new language: talk about options, choices, or elasticity, rather than flexibility, to avoid the baggage around that term. 5. Time and trust: it takes time for managers and employees to build the trust required for open conversations about life and work. 6. From the start integrate with talent processes: integrate MCC with performance management, resource management, career development, etc. 7. Success is relative performance evaluations are calibrated to MCC Profile: goals reflect MCC Profile and performance evaluation is against goals. 8. The full measure: MCC s value will accrue over the long term and must be measured accordingly. 15
17 About Deloitte Deloitte refers to one or more of Deloitte Touche Tohmatsu, a Swiss Verein, its member firms and their respective subsidiaries and affiliates. Deloitte Touche Tohmatsu is an organization of member firms around the world devoted to excellence in providing professional services and advice, focused on client service through a global strategy executed locally in nearly 140 countries. With access to the deep intellectual capital of approximately 135,000 people worldwide, Deloitte delivers services in four professional areas, audit, tax, consulting and financial advisory services, and serves more than 80 percent of the world s largest companies, as well as large national enterprises, public institutions, locally important clients, and successful, fast-growing global growth companies. Services are not provided by the Deloitte Touche Tohmatsu Verein and, for regulatory and other reasons, certain member firms do not provide services in all four professional areas. As a Swiss Verein (association), neither Deloitte Touche Tohmatsu nor any of its member firms has any liability for each other s acts or omissions. Each of the member firms is a separate and independent legal entity operating under the names Deloitte, Deloitte & Touche, Deloitte Touche Tohmatsu or other related names. In the United States, Deloitte & Touche USA LLP is the U.S. member firm of Deloitte Touche Tohmatsu and services are provided by the subsidiaries of Deloitte & Touche USA LLP (Deloitte & Touche LLP, Deloitte Consulting LLP, Deloitte Financial Advisory Services LLP, Deloitte Tax LLP, and their subsidiaries), and not by Deloitte & Touche USA LLP. The subsidiaries of the U.S. member firm are among the nation s leading professional services firms, providing audit, tax, consulting, and financial advisory services through nearly 40,000 people in more than 90 cities. Known as employers of choice for innovative human resources programs, they are dedicated to helping their clients and their people excel. For more information, please visit the U.S. member firm s Web site at Copyright 2007 Deloitte Development LLC. All rights reserved. 16
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