1. The Workforce Revolution Sharon Emek, Ph.D., CICWork At Home Vintage Employees LLC 386 Park Avenue South, Suite 303 New York, NY 10016 www.wahve.com 646.807.4372 2012 Work At Home Vintage Employees LLC

2. The Increasing Rate of ChangeAgricultural AgeInformation10,000 BC toAge1700 AD 1970 2010 Industrial Age Virtual/Connected/Creative Age 1700 -19702010 2020?The value lies in the creative output, rather than purely the productive output of human labor.The value lies in open sourcing and finding and creating relationships.This new virtual/connected/creative age will add to thechallenges already being faced by insurance firms. 2012 Work At Home Vintage Employees LLC 3. Changing Employee Dynamics The aging of the baby boom generation along with declining fertility rates is changing Americas age structure. The number of people over age 65 will rise substantially beginning in 2011 as the oldest members of the babyboomer generation reach 651 About one in eight Americans are age 65 or above today and by 2030, one in five Americans will be 65 or older1 While the older population increasing dramatically, Americas current young population has zero growth1 82% of the nations young population growth from 2005 to 2050 will come from new immigrants and their children1 The industry is predicting a 50% babyboomer retirement over next ten years 1 U.S. Census, Next Four Decades, May 2010 2012 Work At Home Vintage Employees LLC 4. Challenges to Insurance Firms36 % projected boomers population with zero Challenges of a multi-Declining marginsgrowth in youngcultural workforcepopulationGenerational work ethic Thousands of back-differences among office processesBoomers, Gen X, Gen Y, Increasing staff costs completed by highly Millennial and future paid staffgenerations Brain-drain of Employers competingexperienced, educated Constant newfor the same labor pool and well-connected technology challenges & lack of talentemployees 2012 Work At Home Vintage Employees LLC 5. What Has Changed? Expectation ofsocial networks immediatesmart phonesresponses and virtual relationshipsSophisticatedNew workforce client servicevalues and and talent loyaltyknowledgedemands Diminishingclient loyalty Insufficient Cost pressuresLocal humanof the new capital normalmarketMulti-cultural, Increasing multi-challenges ofgenerationalglobal and workforce complex risk 2012 Work At Home Vintage Employees LLC 6. What does this mean forbusinesses?This workforce revolution is challenging our current structure: The way we view the workforce will have to change in dynamic ways from a closed, controlled community to an open, collaborativecommunity and from a production focused to creative focused The step-by-step, top-down command and control managementmethods we use to build monolithic firms will need to be re-thoughtfocusing on creative output and relationships The linear fashion in which we design jobs will need to be transformedencompassing a variety of methodologies Once we adopt new technology, we never return to old technology andthe impact that makes on:the amount and type of workforce we needhow jobs should be donewho should do the jobwhere the job should be doneManagement needs to see their world in 3D and focus on strategicworkforce planning to optimize the value of their companies. 2012 Work At Home Vintage Employees LLC 7. The Perfect Example of theProduction ModelMost CSRs/AMs still spend a majority of their time on back office tasks. CSR TimeLow Return, Low Value Client Face toHigh Return, High Value Face Time 7%CarrierPhone/Email Time15%Back Office Tasks ClientPhone/Email Time52%24%Rough Notes, Foundations of Customer Service, August 2005 2012 Work At Home Vintage Employees LLC 8. The Increasing Importance ofWorkforce Planning Aging of the population with 50% of the industry retiring over next ten years Generational differences Gen X, Y and Millennial Multi-cultural differences Baby Boomers redefining retirement (phased) The rapid advancement of technology and social networks Proliferation of rules and regulations with new legislation often competingand colliding with existing legislation The sheer number of educated people globally 2012 Work At Home Vintage Employees LLC 9. So Whats Strategic WorkforcePlanning?It is, The systematic approach of aligning business strategy,human capital strategy, and budgets in order to ensure thattalent with the right skills and competencies are in place tosupport anticipated and unanticipated future businessscenarios(Mollie Lombardi and Justin Bourke Strategic Workforce Planning WinningScenarios for Uncertain Times, Aberdeen). 2012 Work At Home Vintage Employees LLC 10. Stated More Simply Strategic Workforce Planning identifies: The Right Job The RightThe RightSkillsPriceAnywhere The Right The RightPeople ResourcesThe RightThe RightQuantityMoment 2012 Work At Home Vintage Employees LLC 11. Benefits of Strategic WorkforcePlanning Strategic Workforce Planning should be an important strategic element in corporate management as it: Reduces labor costs Helps companies become more client/creative-focused instead of process/production-focused Optimizes staffing and systems to achieve the greatest productivity at the lowest possible labor cost Utilizes technology to mange human capitalIts about working smarter, not harder, to create staff, both insourcedand outsourced, who perform their duties in the most efficient manner! 2012 Work At Home Vintage Employees LLC 12. How can insurance firms flourishin this new arena? Need to re-define the work that needs to be done and thebest methodology to get the work doneNeed to consider a world with a combination of virtual andphysical employees/officesNeed to identify the type of talent needed to do the work and provide the appropriate tools that will enable them Need to maximize use of technological toolsNeed to envision management styles, procedures and jobsthat fit this new model, e.g., an open, collaborative cultureNeed to create a sales model that maximizes thevirtual/social network world with the physical network world 2012 Work At Home Vintage Employees LLC 13. Why is this different from whatI do now?Hiring based on new paradigm Stagnant Job descriptions Dynamic, iterative job descriptions Predominantly focused on process work Focused on creative/relationship Mostly present focused, notHiring based on old paradigm development future focused Considers rapidly Limited consideration for changing terminology how to best utilize available talent Considers job sharing Limited to local talent, Considers insourcing & which has been readilyoutsourcing available Seeks talent wherever Limited consideration for available at the right price the streamlining capabilities Anticipates demographic of technology changes Production focused Retirement rates Generational differences Ethnic differences 2012 Work At Home Vintage Employees LLC 14. How to Prepare Parse out job descriptions based on high value creative, customer contact and low value production work, not the position Re-name work positions to reflect this new approach, e.g. instead of producers use connectors, social networkers Re-assess your staff and align them with the appropriate type and level of work Effectively use technology, aligning it with human capital Enhance the quality and quantity of work by being open to flexible arrangements, e.g., job-sharing, telecommuting Consider firms that offer lower cost onshore, contract, knowledge workers and offshore process workers 2012 Work At Home Vintage Employees LLC 15. Whats Available to Make ThisModel Work? Human capital management technology, which alignspeople and strategy Cost-effective and sophisticated remote/outsourced talentdomestically and globally Productivity tracking software Virtual training tools Virtual meeting tools VoIP / Internet phones Video conferencing technology Exchange technology which simplifies client acquisition andretention Social networks/avatars Smart phones, tablets, mobile applications 2012 Work At Home Vintage Employees LLC 16. Overcoming the Fear ofOutsourcing & Remote Workers Drivers Broader access to talent Reduced cost Increased flexibility Moves account managers to front line Shared risk Increase resource availability Greater efficiency/higher quality Keeps business operating when disruptions Maximum use of available technology Inhibitors Security & confidential Information Communication concerns Fear of loss of control Trust Employee backlash Loss of knowledge capital Ability to physically supervise 2012 Work At Home Vintage Employees LLCAdapted from Gartner, IT Directors Community of Practice, August 14, 2007 17. To Maximize the Use ofOutsourcing & Remote Workers Create aEmploy RealOvercome Trust that if Paperlesstime, straight- fear of not the rightenvironmentthroughseeing and procedures & technology.managingtechnology staff in anare in officeplace, people can be managed anywhereany time 2012 Work At Home Vintage Employees LLC 18. The value of any firm is in theCustomer Firms resources should be set on core competencies where they can provide unique value for customers Think of what is not critical to insource & strategically outsource those activities Consider creating jobs/titles that match the generational and ethnic differences within the firm and with the customer Consider access to talent & consider offering talent the ability to work remotely if they need to Look to see where you have misemployed/misdeployed talent Use technology to deploy the strategy 2012 Work At Home Vintage Employees LLC 19. The Insurance Office of theFuture 2012 Work At Home Vintage Employees LLC 20. Organizations who do not adopt an iterative strategic workforce plan based on an open, collaborative environment supported by technology and social networks will languish in fear in a world where change feels like it happens faster than the speed of light. Think differently. Imagine! 2012 Work At Home Vintage Employees LLC 21. Reinventing retirement in America by helping people stay productive longer in a more balanced and rewarding way and providing businesses continued access to their talent and experience in innovative ways. Contact: Sharon Emek, sharon.emek@wahve.com 646.807.4372 ext. 501 2011 Work At Home Vintage Employees LLC 22. Heres to the Crazy Oneshttp://www.youtube.com/watch?feature=player_embedded&v=8rwsuXHA7RA 2011 Work At Home Vintage Employees LLC 23. FullWhat Is WAHVE?service CSRsWork at Home Vintage EmployeesTrainers,(WAHVE) is an innovative remoteConsultant,staffing solution for insurance firms Mentorsto optimize their workforce.We help firms realign businessstrategy to focus on customerservice, customer retention andgrowth by providing the right Back officetalent to perform support work at knowledgea significant savings. process workWHAVE is the repository for theindustrys retiring talent and has asignificant database of retiredbaby-boomers who want toProjectcontinue to work from home to work tosupplement their retirementclean upincome. backlog 2011 Work At Home Vintage Employees LLC