The Talent Equation (2014 PeopleScout Client Forum)

© 2014 CareerBuilder© 2014 CareerBuilder

Big Data Lessons for Navigating the Skills Gap

and Building a Competitive Workforce

Presented by: Jamie Womack, VP Marketing

@JamieWo

THE TALENT EQUATION

© 2014 CareerBuilder

IMPACT OF DATA DRIVEN DECISIONS

1 |

Companies that make

data-driven decisions

are 5-6% more productive

than those who do not.

Source: Talent Equation


AGE OF TALENT

2 |


DECADE OF TALENT MANAGEMENT

3 |

Unparalleled Season

of Innovation

and Technology Shift

Aging

Population

Shift to Knowledge

Workers

Globalism Aging

Workforce


TALENT = KEY CONCERN FOR CEO’S

4 |

Talent constraints have impacted costs - but also factor in lost opportunities

Our talent-related expenses rose more than expected

We weren’t able to innovate effectively

We were unable to pursuit a market opportunity

We cancelled or delayed a key strategic initiative

We couldn’t achieve growth forecasts in overseas markets

We couldn’t achieve growth forecasts in the country where we are based

Our production and/or service delivery quality standards fell

43 %

31 %

29%

24%

24%

Q: Have talent constraints impacted your company’s growth and profitability over the

past 12 months in the following ways?

Base: All respondents (1,258) / Source: PwC 15th Annual Global CEO Survey 2012


BIG TALENT SHORTAGES

5 |

Source: McKinsey Global Institute U.S. Jobs survey, 2011. McKinsey Global Institute Analysis.

Companies Report That Positions in Management,

Engineering and Computer Programming are

the Most Difficult to Fill

Management

Business Support Functions

Science/Engineering

Computer Programmers/It

Sales/Marketing

Customer Service Staff

Creative

Administrative Support

Laborers, Movers, Drivers

Production Workers

Manual Tradesmen

25.4

26.4

17.8

17.4

17.2

12.8

9.3

8.6

8.0

7.5

7.1

Which Positions Are Most Difficult to Fill?

% Of respondents (n=1,285)


WHICH FIELD OF STUDY HAS GROWN

MORE RAPIDLY IN THE LAST 20 YEARS?

6 |

a) Engineering

b) Math & Computer Science

c) Physical Sciences

d) Psychology


STEM= GROWING DEMAND

7 |


STEM – FLAT OR SHRINKING SUPPLY

8 |

© 2014 CareerBuilder35

LAWS OF SUPPLY & DEMAND


TALENT SCARCITY IN A DIGITAL AGE

10 |

Significant Power Shift from Employer

to Candidate

Talent is Scarce

Digital Divide = Consumer

Candidate


HUMAN RESOURCE INVESTMENTS

11 |

Source: CareerBuilder U.S. Jobs Forecast 2014

22%Mobile readiness

Where do companies

plan to invest

additional resources

into their recruitment

strategy for 2014?

22%Enhancements to

company career site

16%Front office tools

29%Workforce analytics/

Access to data

11%Other

© 2014 CareerBuilder© 2014 CareerBuilder13 |

How HR Can Use

Big Data to Manage the

Evolving

Workforce

Navigating

the

Skills Gap

Digital

Divide

Labor Market

Past,

Present

and Future


PAST VS. PRESENT

14 |

In 1979, 24% of

Americans worked in

manufacturing; that’s

fallen to 9% in 2012.

Employment in private

education and health

care has skyrocketed;

accounting for 7% of the

workforce in 1979 and

15% in 2012.

Professional and

Business Services is the

other big mover – from

7% to 13%.

24%

9%

15%

7% 7%

13%



600,000 UNFILLED JOBS

15 |


COMPUTER CONTROL PROGRAMMERS

16 |


“THE KILLER APP”

17 |

The “killer app”

of the labor market

therefore is the employee who can

successfully

merge right and

left brain skills

the social/strategic

with the technical.



DATA SCIENTIST

18 |


DATA SCIENTIST SKILLS: HADOOP

DEMAND DOUBLING EVERY 6 MONTHS

19 |

Source: Supply & Demand


HADOOP: RESULTING IN TIGHTER LABOR

MARKET

20 |

Source: Supply & Demand


How HR Can Use

Big Data to

Manage the

Evolving

Workforce

Digital

Divide

Navigating

the Skills

GapLabor Market

Past, Present

and Future


SKILLS GAP TODAY

22 |

8 in 10 employers have difficulty

filling positions

More than half have an open position

today for which they cannot find

qualified talent

On average, a company loses more

than $14,000 for every job that stays

vacant for three months or longer.

1 in 6 say they lose $25,000 or more.

14K

14K

14K

Source: The Shocking Truth About the Skills Gap Study (CareerBuilder 2014)


LONG-TERM UNEMPLOYED

23 |

24

%

45%

2001 2014

Share of unemployed who’ve been out

of work for more than 27 weeks has

risen to abnormal levels this recession –

peaking at 45%. Following the 2001

recession, the share never got above

24%.



WHAT’S CAUSING THE GAP TODAY?

24 |

Education

On the Job

Training

Job

Requirements

Shifting

Technologies

Wage


NAVIGATING THE SKILLS GAP

25 |

What macroeconomic event should happen in the face of

skill shortages?

Wage Hikes for In-Demand Jobs

Rising wages encourages more

workers to enter fields

Most wages have remained flat

IT Wages have increased & will

continue

Manufacturing skills gap is less

because flat wages

. Source: Talent Equation


WHO IS RESPONSIBLE IN RE-SKILLING?

26 |

What are companies current views on training?

“Being able to provide training” ranks

low on HR professionals’ list of concerns

47%of private U.S.

employers have no

training budgets.

21%of employees said they’ve

acquired new skills through

company-provided training over

the previous five years

(Accenture).

66%of companies agree it’s the

primary responsibility of the

worker

67%67% also agree companies

should do more to train

workers for hard-to-find skills.



SKILLS GAP

27 |


EMPLOYER INVOLVEMENT

28 |


What are you doing to close

your gaps?

29 |


Digital

Divide

How HR Can

Use Big Data

to Manage

the Evolving

Workforce

Labor Market Past, Present

and Future

Navigating the Skills Gap


DATA VS. BIG DATA

31 |

vs


Volume

Variety

Velocity

► 32 ◄


TALENT ASSESSMENTS

► 33 ◄

Criminal

Background

Checks

Job Hopper

or

Unemployed

Browsers


HUMAN CAPTITAL METRICS

34 |

Employee

productivity

and

performance

metrics

Compensation

trends

Length of

service

Education

attainment

Employment

history

Skills

composition

Supply and

demand of

talent - locally,

regionally

and nationally

Personality

types/pyscho-

metrics



EXTERNAL DATA

35 |

© 2014 CareerBuilder36

CREATE SUPPLY – EMT TO RN


RISE OF EDUCATION

37 |

Is college still a good value for the consumer,

economically speaking?

Vs.


$652/week

7.6%

$1300/week

3.5%


VALUE OF EDUCATION

38 |

Companies are relying on college-educated workers in

jobs that previously required high school degrees.

Customer Service

*For study methodology and notes, see page 45 of Talent Equation

Sales Management

64% - Higher Quality Work

45% - More productivity

22% - Increase Revenue


EDUCATION NOT NEEDED?

39 |

Correlation disappeared for

manufacturing degrees. Typical

college education may not affect

productivity for many middle-skill

production workers. Going forward,

many manufacturing workers will need

advanced STEM skills.

Value added benefit not significant for an

increase in IT workers with college

degrees.



AVERAGE TENURE

40 |


APPROACHES TO RETENTION

41 |

How can big data help companies avoid costly attrition?

Xerox cut their attrition by 20% for call center employees after

learning creative types are more

likely to stay than

inquisitive/empathetic workers.



MOTIVATION TO STAY: SALARY VS. HOURLY

42 |

TOP RETENTION FACTORS: HOURLY VS. SALARY

Hourly Salaried

1 Job Satisfaction – 53% Job Satisfaction – 63%

2 Extrinsic Rewards – 47% Constituent Attachments – 36%

3 Constituent Attachments – 35% Advancement Opportunities – 30%

4 Organizational Commitment – 18% Extrinsic Rewards – 29%

5 Lack of Alternatives/Org. Prestige – 11% Organizational Prestige – 27%

Are salaried workers motivated to stay with a company for

different reasons than lower paid, hourly workers?



RISKS/ROADBLOCKS USING DATA

43 |

U.S. will be short up to 1.5 million data

analysts and business managers capable

of putting the complex data at their fingertips to

use. (McKinsey)

6 percent of HR departments think

they are “excellent” at data analytics.

1.5MILLION

6PERCENT

There’s an inherent risk in assuming all data is relevant data

or that all data is truth. In reality, the bigger the data gets, the more

difficult reigning it in becomes.



What questions would you

ask if you had the data?

44 |


Digital

Divide

Labor Market Past, Present

and Future

How HR Can Use

Big Data to Manage the

Evolving

Workforce

Navigating

the

Skills Gap


PUBLISH

LIFE-

STREAM

MICROBLOG

SHARE

DISCUSS

SOCIAL

NETWORKS

LIVECAST

MMO

SOCIAL

GAMES

VIRTUAL

WORLDS


HOW ARE YOU ENJOYING THE 3-DAY

WORKWEEK?


CANDIDATE BEHAVIOR

search for jobs while at work

different resources are used

on average before applying to a job

Of full-time employed workers are actively looking

or open to new job opportunities

Source: CareerBuilder and Inavero Candidate Behavior Study 2013


BE MOBILE

► 50 ◄

vs.


CANDIDATE EXPERIENCE =

CONSUMER EXPECTATION


PIPELINING + CRM

52 |

What is continuous recruitment?

The process of sourcing and

connecting with candidates even if

there are no current open positions that

suit their interests or abilities.

72% of employers said the strategy reduces

time to hire

41% say it reduces cost per hire.



KEY TAKEAWAYS

53 |

Understand your own labor market’s

history and future

Determine what big data sets you

have today – and what ones can help

you in the future

Use that data to help you build smarter,

more strategic recruitment strategies


wwww.TalentEquationBook.com

FOR MORE INFORMATION, VISIT

54 |

The Talent Equation (2014 PeopleScout Client Forum)

Recruiting & HR

Transcript of The Talent Equation (2014 PeopleScout Client Forum)