Opening_Shaping_The_Workforce_of_the_Future (2)

ShapingTheWorkforceoftheFutureRichardPaynePracticeLeader,Talent&Reward,AsiaPacificAonHewitt|Consulting1Proprietary&Confidential|7April2011WhatIwillbetalkingaboutƒTheShapeoftheWorkforce–ThedemographicoutlookƒTheNewChallengers–TheriseofAsia’sMNCsƒShapingYourFuture–ThefourdisciplinesƒQ&ATheShapeoftheWorkforceƒTheDemographicOutlook3Proprietary&Confidential|7April2011Populationin2010Medianage:29Source:UNWorldPopulationProspect.Projectionbasedonmediumfertility,normalmortalityandnormalinternationalmigration4Proprietary&Confidential|7April2011Projectedpopulationin2030Medianage:37.9Medianage:41.1Medianage:43.5Source:UNWorldPopulationProspect.Projectionbasedonmediumfertility,normalmortalityandnormalinternationalmigrationMedianage:31.75Proprietary&Confidential|7April2011China’sworkforceSource:UNPopulationDivisionƒChina’sworkingagepopulation(18-64)willriseonlyslightlyinthenext10years–2010915million–2020933–2030893ƒTheaverageworkingagewillrise–199033yearsold–201040–2030516Proprietary&Confidential|7April2011AgingpopulationandbraindrainrisksƒAgingworkforceandmigrationofyoungtalentreducetalentpool–AgingpopulationmostseriousinRussia,followedbyChina–IndiahastheyoungestworkforceamongBRIC–Retirementandold-agecarewillbeamajorchallengeinChina&Russiaby2030ƒBraindrainriskseriousforRussiabutmayincreaseelsewhere–GenerationYtalentarelikelytobemoremobile,especiallythehighlyeducated–ReversebraindrainandattractionofforeigntalentcouldbecriticalSource:AonHewitt2011PeopleRiskIndex7Proprietary&Confidential|7April2011HighereducationrisksacrossBRICƒOveralleducationrisk:–HighestinIndiaandlowestinRussia–ModerateinChinaandBrazil–HighereducationspendingreducesriskinRussiaandBrazilƒChinaoveremphasizestheoreticalconceptsbutneglectskillstrainingƒIndia’selitistsystemcoexistwithlargeilliteratepopulationƒDecentralizedsysteminBrazilisexpensiveandinefficientƒEducationriskinRussiamayincreaseduetodecliningqualityandlackofEnglishskillSource:AonHewitt2011PeopleRiskIndex8Proprietary&Confidential|7April2011MorepeopledoesnotmeanmoretalentSource:TheEmergingGlobalLaborMarket:PartII-Thesupplyofoffshoretalentinservices,MckinseyGlobalInstituteSuitableyoungprofessionalengineers,≤7yearsworkexperience(thousand)Population(millions)9Proprietary&Confidential|7April2011Demographicprofileandconsequences10Proprietary&Confidential|7April2011Consequences¨IssuesƒChina’sdemographiccompetitiveadvantagewilldeclineEmploymentcostsarelikelytorisefasterthanincreasesinproductivityƒTalentshortageswillgrowatentry-levelAttractingandretaininghigh-potentialyoungtalentwillbecriticalƒCostsforunskilledandsemi-skilledtorisesharplyCompanieswillneedtocontinuallymoveupthevaluechainƒQualityofworkforcewillseeasignificantimprovement…butthenewgenerationwillbemuchmoredifficulttomanageƒMuchgreateravailabilityofexperiencedtalent…butshortageswillpersistascomparedtodevelopedmarketsConsequently,attractionandretentionofhigh-performingtalentisessentialforsuccessTheNewChallengersƒTheRiseofAsia’sMNCs12Proprietary&Confidential|7April2011GrowingstrengthofAsianfirms13Proprietary&Confidential|7April2011Chinesecompaniesareleadingtheway14Proprietary&Confidential|7April2011ButemployerbrandisstillanissueSoutheastAsiajobapplicantspreferenceforworkingwithcompaniesofdifferentnationalitiesSurveyof13,964jobapplicantsconductedbyAonHewittandJobStreet.cominNovember201015Proprietary&Confidential|7April2011WhatareAsianfirmsdoingtocompete?16Proprietary&Confidential|7April2011AttractionandretentioninAsiaischangingTheemergenceofAsia-basedcompaniesontheglobalstagehasplacedevengreaterpressureonattractionandretentioninAsiaPacific.Someoftheissues-ƒShortageofexecutivetalentƒIncreaseddemandforqualifiedlocalexecutivesƒIncreasedexpatriatecostsƒGreaterneedforleadershiptraining&developmentƒChallengesofculturaldifferencesacrossadiverseregionƒFragmentedprocessesforidentifying,groomingandappointingleadersShapingYourFutureƒTheFourDisciplines18Proprietary&Confidential|7April2011Embracethe“FourDisciplines”1.GettheSelectionRight2.FocusontheFuture3.BuildaBrandforLeaders4.RaisetheBarOurresearchthrowsupfourdisciplinesforanorganizationinAsiatobeaLeader19Proprietary&Confidential|7April2011TheFourDisciplines:Number11.GettheSelectionRightƒBeverycarefulaboutwhoyouhireƒTieleaderselectionstrategiesdirectlytiedtobusinessstrategyƒDevelopstrategiestosourcetalentfrombothinsideandoutsidetheorganization20Proprietary&Confidential|7April20111.GettheselectionrightSource:Hewitt’sGlobalTopCompaniesforLeadersStudy,2009TopCompaniesinAsiaPacifictieleadershipstrategiestogoals21Proprietary&Confidential|7April2011TheFourDisciplines:Number22.FocusontheFutureƒClearlydefinewhichjobsarecriticalƒBuilddepthandqualityoftalentpipelinesƒImplementrigorousassessment,relevantdevelopment,andclearandfrequentcommunicationresult22Proprietary&Confidential|7April2011Prepareforthefuture“TheCEOisalsoanadvocateofgivingleadersachanceAHEADoftheirtime.It’slikethrowingababyintothedeepwater,buthewasalwaystheretoensurewedon’tsink”ATopCompanyExecutive23Proprietary&Confidential|7April20112.Focusonthefut