Download pptx - Ready or Not, The Workforce is Changing! Are You Prepared?

The Changing Nature of WorkCapturing the Millennial Workforce and Enhancing Organizational Performance through Social Collaboration

© 2012 SAP AG. All rights reserved. 2

Ready or Not, The Workforce is Changing!

Globalization• Global access to

markets and talent will reshape business – Talent Markets are Global

Demographics• 5 generations will

be working side by side in organizations

Social Web• Social media will

connect employees, customers & partners for immediate connection

Equal and Simultaneous Forces are Shaping the Future of Work


Traditionalists• Born before

1946• ~46M

Baby Boomers• Born 1946-

1964• ~78M

Gen X• Born 1965-

1976• ~50M

Gen Y (Millennials)• Born 1977-

1997• ~88M

Gen 2020• Born 1998+• ~41M

Get to Know Your Workplace Generations

Do you know the demographic breakdown of your workforce? How is this likely to change in 5 years? What about 10?


Demographics in Action: The Latest Numbers (U.S.)

2014: Millennials will comprise 36% of U.S. workforce By 2020 Millennials will comprise nearly half (46%)

Gen X = 16% of workforce

Median age of workforce expected to increase to 42 in 2020

How this affects your business: Workforce growing at a slower rate

– Pension and health costs rise just as growth in the tax base slows

– Fewer workers – particularly fewer experienced workers -- threat to productivity.and economic growth

o Departing Baby Boomers create leadership and skills gap

Immigration a strong contributor to workforce growth

– Increased diversity


Talent Follows Opportunity


Relative Size of the Generations in Most Westernized countries*

< 1946 < 1964 < 1976 < 1997 1997 – ?0

10

20

30

40

50

60

70

80

90

Traditionalists

Baby Boomers

Generation X

Millennials

Gen 2020

???

* Example is US


Not Surprisingly…Millennials Like Smaller Companies

47%

30%

23%

Concentration of Millennials/Size of EmployerSmall (<100 employees) Midsize (101-1500 employees)Large (>1500 employees)

• Why? More opportunities to do

more/different things – to determine preferences and hone abilities

Fewer layers more direct access to leadership, greater opportunity for mentorship

More exposure, influence on strategic decisions - more likely to be “heard”

“Gen Y on the Job,” www.payscale.com, 2012.

http://www.payscale.com/


They lack organizational loyalty.

• Millennials employees have about the same degree of organizational commitment as other age groups. The workforce has changed, not just the people in it. Source: Harvey Schachter, “Five myths about Millennial Workers”

• Furthermore, organizations cannot guarantee job security any more than employees can guarantee they’ll stay.

• Young people of every generation – including when Boomers were the youngest people in the workforce – change jobs more frequently than older people because they’re learning what they like and what they’re good at. Source: Jennifer J. Deal, “Retiring the Generation Gap”

Who Are These Millennials? Dispelling the Myths

MYTH

TRUTHS


They don’t respect authority.

• Traditionalists define respect as: “give my opinions the weight I believe they deserve and do what I tell you.” Millennials define respect differently, as: “listen to me and take my perspective into consideration.”

• Millennials crave coaching and mentorship. If they didn’t respect their seniors leaders, they wouldn’t be asking for so much of it. However, they also want to be listened to not just told to do something.

• Differences in respect with regard to the generations is often appears to be something bigger than it is; everyone wants to be listened to and they want to know their opinions matter.

Another Myth

MYTH

TRUTHS


They are only motivated by perks/money.

• What motivates people has more to do with their personality than their age.

• Speaking to pay specifically, 27% of young people think high pay is important compared to 48% of older workers. Source: 27 Shift

• If any conclusion were to be drawn about motivation and Millennials, it would be that they prefer development over cash. In fact, research shows that Millennials prefer development three times more than a cash bonus as a form of benefit. Source: 15th Annual Global CEO Survey 2012.

One More Myth

MYTH

TRUTHS


More Millennial Facts You Need to Know

Will comprise 75% of the Western workforce by 2025, the largest

proportion in history. Most educated workforce in

history. Tech-natives – grew up with access and

dependence on technology.

Ethnically and culturally diverse due to more open

immigration policies than in

previous generations.

Most educated female

demographic in history.

The children of Baby

Boomers, or older Gen X.


Embracing Technology to Optimize Your Workforce

Each retiring Baby Boomer subtracts ~40 years of workplace experience

How do you not only fill the gap but surpass your competitors?Collaboration Deliver employee experiences that strengthen knowledge of and appreciation for the customer value

chain

Authenticity Values in action and transparency facilitated through social media/collaboration, open financial books, full

disclosure on pay

Personalization Nurture employee relationships that align with needs of every generation at each life stage

Innovation Offer innovative practices aligned to organizational strategy

Social connection Provide fun, engaging work environments (virtual or physical) Encourage use of social media tools/techniques that allow employees to enable workplace performance

and support life interests


Why does Technology Matter? Your Workforce has Changed…


…and is Using Apps Like These


So Why Keep Technology that Looks Like This…


…When You Can Have HR Technology that Doesn’t Look or Act like HR Technology…


…And is Available Wherever Your Employees Are, 24/7


Business Execution Technology: GPS for Strategic HR

Putting knowledge in the hands of decision makers to support real time decisions

Let’s take a look…

http://www.youtube.com/watch?v=0HPqjNzO7aY


Of Course…You Have to Know How to Use It Correctly


Predictions for the 2020 Workplace

Your mobile device will become office, classroom, and concierge • Work-life flexibility will replace work-life balance

The global talent shortage will be acute• Recruiting will start on social networking sites• You will be hired and promoted based upon your reputation capital• Building a portfolio of contract jobs will be the path to full-time employment

Corporate social networks will flourish and grow inside companies• Social media literacy will be required for all employees• Leaders will learn to blog (to promote authenticity, transparency)

Lifelong learning will be a business requirement• Development opportunities will be personalized and address generational

needs

The 2020Workplace: How Innovative Companies Attract, Develop and Keep Tomorrow’s Employees Today by Jeanne C.Meister and Karie Willyerd. Copyright © 2010 by Jeanne C. Meister and Karie Willyerd.


Seven Actions You Can Take Today To Prepare

Ensure you – and your leadership - are fluent in the new language of business

Conduct a workforce analysis risk assessment. Determine what your workforce plan should be

Build a recruiting machine to reach candidates where they live – online!

Develop clear learning and development strategy to attract new employees and prepare existing for the future

Prepare your leaders for the new leadership competencies required to lead in the future workplace

Use social technologies inside your secure environment to facilitate communication, learning, and collaboration on leading edge platforms

Make your HCM systems app and mobile friendly