The world of work is changing …

2. 2 The world of work is changing… We can help. {We’ve been experts for 6 decades}

3. 3 Winning in the changing world of work requires A New Way of thinking about and approaching your workforce.

4. The Talent Mismatch is deepening as the working age population declines and the nature of work changes. 4 Drivers of Change in Today’s Uncertain World Individual Choice will be exercised by those with the skills that are most in demand. Technological Revolutions have the power to change where, when and how we work. Rising Customers Sophistication requires businesses to work in a new way, driven by innovation and delivering greater value and efficiency

5. 5 World of Work Trends: Talent Mismatch A Less-Fluid Workforce Manufacturing Heyday Dominant management model, circa 1959 Knowledge-Based Jobs Growing workplace reality, circa 2009 Many jobs require specialized skills Many people who want jobs lack the appropriate qualifications Many people with appropriate qualifications are in the wrong geographic location Despite high levels of unemployment broadly, competition for qualified people grows The economy has changed faster than the workforce can or has adapted • Many jobs require similar skills • Workforce skills are well matched to the workplace • Workforce mobility is increasing • Competition for jobs is high as population booms

6. 6 World of Work Trends: Talent Mismatch Talent Mismatch The skills mismatch will intensify as pressure to find the right skills in the right place at the right time will increase as working age populations decline, economies rebound, emerging markets rise, and the nature of work shifts.

7. 7 World of Work Trends: Talent Mismatch The Talent Mismatch Lack of resources creates tension on the high-skills market Demand for skill Oversupply of low or wrongly skilled resources generates under- employment and unemployment Supply of skill Source: Confronting the Talent Crunch: 2007, A Manpower White Paper

8. Talent Mismatch: Top 10 Global Hardest Jobs to Fill 1.Skilled Manual Trades 2. Sales Representatives 3. Engineers 4. Drivers 5. Accounting and Finance Staff 6. IT Staff 7. Management/Executives 8. Teachers 9. Administrative Staff 10. Machinists 30% of employers worldwide indicated difficulty filling positions Source: Manpower Inc. Talent Crunch White Paper www.manpower.com/researchcenter

9. 9 World of Work Trends: Talent Mismatch On-Going Paradox: Open Jobs . . . and Unemployment Source: Business Week, based on data from the Bureau of Labor Statistics as of 09-09 .

10. World of Work Trends: The Talent Mismatch Global Working Age Population Data • Number of People 65+ years: • Year 2000 – 35 Million • Year 2010 – 40.2 Million • Year 2020 – 54.6 Million • Year 2030 – 71.5 Million • Year 2040 – 80 Million • Year 2050 – 86.7 Million

11. 11 World of Work Trends: Talent Mismatch Broadening the Search for Talent Engage an aging workforce • Only 14 % of employers have specific strategies in place to recruit older workers • Only 21% of employers have strategies in place to retain their older workers Invest in young workers • Customized work experiences that leverage the unique attributes of Generation Y will increase their contribution and engagement Sources: Manpower White Paper

12. World of Work Trends: The Talent Mismatch Prevalence of Disability by Age Range • 15-24 Years – 10.5% have a disability • 25-44 Years – 11.1% have a disability • 45-54 Years – 19.4% have a disability • 65-69 Years – 38.4% have a disability • 70-74 Years – 46.9% have a disability • 75-79 Years – 53.9% have a disability

13. World of Work Trends: The Talent Mismatch Demographics • 51.2 million (18.1% of the US population) have a disability • The next largest minority is the Hispanic population (13.3% of the US population)

14. 14 World of Work Trends: Talent Mismatch Broadening the Search for Talent Pave the way for women • In 2008, the International Labor Organization found that the global employment-to-population ratio was 49.1% for women in 2007 compared to 74.3% for men. • Around the globe, more women than men are graduating from college Consider talent migration • There are over 200 million immigrants in the world today– about 3% of the global population • Emigration rates tend to be highest in the most educated segments of the population • Move Work to People Virtually and People to Work Geographically Source: Education at a Glance: 2007, OECD 2007.

15. 15 World of Work Trends: Talent Mismatch Broadening the Search for Talent Make versus buy • Hire at skill levels below the anticipated need • Invest in development and retention Do more with less • Increase productivity through higher levels of employee engagement • Create a compelling employee experience Share scarce skills • Contract with key individuals on an as-needed basis

16. 16 World of Work Trends: Talent Mismatch ImplicationsTalent Mismatch Critical shortages will intensify in key skill sets Many options will exist for building the workforce Demographic shifts will increase the pressure to use the talents of all individuals Divide between the skilled and unskilled workforce is accelerating Continuous training and development of the workforce will be required in order to maintain a job-ready workforce Organizations need an agile talent strategy to attract, engage and retain the talent required to execute their business strategy

17. 17 World of Work Trends: Individual Choice Individual Choice People with skills that are most in demand will exercise choice in selecting work arrangements that best suit their values and preferred “one- size-fits-one “ work experiences. Organizations will be challenged to customize flexible work practices that attract, motivate and engage multiple generations in the workforce.

18. 18 World of Work Trends: Individual Choice Drivers of Demand for Choice • Technology-enabled work options • New technologies are making it easy to accomplish the same workload from anywhere and at any time Leverage in critical skill sets • Individuals with key skills will be increasingly able to dictate terms • Changes in expectations • In many societies, social norms have been changed to encourage individuals to choose careers that work for them

19. 19 World of Work Trends: Individual Choice A Look at Four Generations 65-82 46-64 30-45 15-29 Generation X Generation Y Boomer Traditionalist Born 1980- ~1995 Born 1965-1979 Born 1946-1964 Born 1928-1945 Each generation has different assumptions about how the world works and is currently in a different life stage that will affect what they demand from work.

20. Why Flexibility Matters? 20 64% believe these policies increase retention rates. World of Work Trends: Individual Choice 76% of organizations say flexible work arrangements boost employee morale and Today’s student will have 10–14 jobs by the age of 38. Source: Manpower, “Talent Crunch: 2008”, United States Department of Labor, HR Management, Institute for Corporate Productivity,

21. 21 World of Work Trends: Individual Choice What Kind of Flexibility? • Flexibility in how and where work gets done • Skilled workers will desire the ability to perform their jobs where, when, and how they want Flexibility in career choices • Skilled workers will define accomplishment beyond the traditional measures of career success, and they will expect their employer to accommodate and encourage life priorities outside of work • Flexibility in how work is compensated • Skilled workers will demand a holistic approach to compensation, with valued compensation ranging from more money, to more time off, to more time to innovate and create at work

22. Meeting the Demands of Skilled Workers 22 Collaborative, flexible, and innovative work culture • Leveraging new technologies • Team-based and outcome-oriented processes World of Work Trends: Individual Choice • Compelling leadership and strategy • Clearly defined and communicated • Aligned around your company’s mission and impact • Engagement • Know your employees and the reason for their commitment • Understand their life priorities and challenges • Create work practices that meet them where they are in life

23. ImplicationsThe Individual Choice 23 World of Work Trends: Individual Choice Skilled individuals have a wide variety of work preferences, needs and expectations Companies need work practices and employee experiences that will attract and engage talent who will like working in your organization Individuals will take greater “ownership” of their careers and development

24. 24 World of Work Trends: Technological Revolutions Technological Revolutions Technological developments allow new ways of getting work done – increasing the importance of coordination and collaboration.Rapid and unfiltered communication via online communities increases the importance of reputation management for all stakeholders.

25. Rapid Growth in Social Technologies 25 World of Work Trends: Technological Revolutions Linkedin founded in 2002 Flickr founded in 2004

26. Connecting is Easier Than Ever 26 There are over 100,000 web sites that invite individuals to post their opinions about companies World of Work Trends: Technological Revolutions More than 50% of the world’s population uses a mobile phone The number of people in the world with access to the Internet is up over 300% since 2000

27. Business is Just Beginning to Harness the Power of Web 2.0 27 However, to effectively manage and engage today’s skilled workforce, Web 2.0 must be utilized to foster collaboration and creativity World of Work Trends: Technological Revolutions Despite their growing use and social importance, Web 2.0 technologies are often viewed as a distraction rather than a productivity tool Even for those companies that have recognized the potential of 2.0 technologies, implementation and adoption have proven difficult

28. World of Work Technology Revolution 28 Collaborate to Innovate • Innovation and creativity can come from anywhere World of Work Trends: Technological Revolutions • New Employee Practices • Attract, select, train, and “retain” in a whole new way • The Transparent Brand • Managing your reputation in the age of social networks

29. ImplicationsTechnological Revolution 29 World of Work Trends: Technological Revolutions For some, technology is changing the definition of work from a “place to go” to an “activity” we do anytime, anywhere, anyplace Technology is changing how we communicate, collaborate and innovate Rapid, transparent links among individuals increase productivity and scrutiny of both individuals and corporations

30. 30 30 World of Work Trends: Rise of Customer Sophistication Rise of Customer Sophistication Customers’ expectations around value will rise. Customers are more global and sophisticated, increasing the complexity of their relationships with organizations and the specificity of their value demands. Customers have increased access to information, to networks of experts, to lower cost channels which increases pressure on companies to deliver value – faster.

31. Customer Generated Content 31 World of Work Trends: Rise of Customer Sophistication Apple, iPhone Amazon.com

32. 32 World of Work Trends: Customer Sophistication Changing Challenge: From Scale to Intelligence Twentieth Century Twenty-First Century • Industry leaders are transforming products to customized services and innovating faster than ever imagined • Teams are formed and mobilized around knowledge and purpose rather than boundaries • Career management is outsourced to its owner • Industry leaders developed, improved and distributed products in scope and scale never imagined • Work is divided across hierarchical boundaries and managed through bureaucratic systems • Job descriptions are clear and consistent and reward tied to loyalty – “gold watch” • Careers are managed by employers

33. It’s a Mindset Change 33 World of Work Trends: Customer Sophistication • Bureaucratic • Rigid • Product • Managed • Replicate • Collaborative • Flexible • Knowledge • Transparent • Innovate

34. It Requires a Behavioral Shift 34 World of Work Trends: Customer Sophistication • Mobilizing work • Directing workers • One size fits all • Manage people • Task alignment • Tightly defined jobs • Inside – out • Mobilizing knowledge • Engaging colleagues • One size fits one • Manage outcomes • Conceptual alignment • Flexible purposeful teams • Outside – in

35. ImplicationsRise of Customer Sophistication 35 World of Work Trends: Rise of Customer Sophistication Companies’ practices are under increased scrutiny; therefore, they must stand up to total transparency Intensified price / value compression puts increased pressure on the productivity of a company’s workforce • Responses and solutions to the market will need to be: • Faster • More agile • Differentiated • Global Companies’ success is no longer only based on access to capital – now, talent has become a key differentiator • The ability to mobilize intelligence, manage in a complex environment, and continuously improve core businesses will be key to capitalizing on trends

36. The world of work is changing faster than ever. Companies need a deliberate workforce strategy. World of Work Trends: The Big Picture 36 The Big Picture

37. Discussion Topics: 37 Which of these trends is having the most impact on your organization currently? What are your key workforce challenges? How do these trends challenge legacy mindsets in your organization? How does your current talent strategy reflect the changing world of work? What do you need to do to ensure leadership is aligned around the key workforce challenges required to drive the desired business results? What do you need to successfully drive a talent strategy that sustains the business now and in 5 years? World of Work Trends