Transcript - PMAP CEBU INC

Nurturing the Global
Cabbage Patch
Insights and Challenges 2020 and Beyond
Michael A Potter
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UK born
20 Years Experience in Corporate Role
Head of MPA since 1994
Head of MAPI since 2003
Globalist / International Practitioner
Writer/Speaker/Trainer/Consultant
Fellow of CIPD (UK)
Not Related to Harry Potter
Areas of Expertise
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Leadership Master Classes
Graduate Development
Career Counselling
Mentoring & Coaching
Assessment & Development
Competency Frameworks
Qualifications & Professional Memberships
Professional Development
People Strategy
Some of My Clients
Advisor to Government of Ghana on People Issues
Consultant/Advisor to:
Rolls Royce
Tata Group
Labadi Beach Hotel
BBC
PSMB
BSHRM
FSA
PenCom
CFAO Motors
HSBC
Mobiltel
Marcus Evans
NHS
UniBank
SMART
Vodafone
DHL
Global Experience
Europe
Asia
Middle East
Africa
Bulgaria
Denmark
Estonia
Finland
Germany
Holland
Norway
Poland
Romania
Sweden
UK
Bangladesh
India
Indonesia
Malaysia
Philippines
Singapore
Sri Lanka
Taiwan
Thailand
Vietnam
Bahrain
U.A.E
Ghana
Nigeria
South Africa
Video: Global Megatrends
An Outlook to 2030
The World of Work Changes Profoundly…
Challenges towards 2020 and beyond
Increased
Worker
Mobility
An Ageing
Workforce
Lack of Critical
Talent
Rise of the
Freelance
Economy
Retention of
Key Talent
Demographic Changes Will Continue To
Pose Challenges
• By 2020:
− a quarter of Europeans will be over the age of 60
− One-third of the population in China will be over the
age of 50, with annual workforce growth of less than
5%.
• By 2050:
− The average citizen in Japan will be aged 53. Contrast
that with Nigeria’s 30, India’s 38 or Philippines’ 32.
− Over 65s will be the fastest growing population
Source: United Nations, 2015, World Population Prospects
World Demographics
Source: United Nations, 2015, World Population Prospects
Technology Will Continue To Alter Labour
Markets
• 1 in 2 jobs are at risk of being
replaced by automation
• But technology will also allow to
work from anywhere in the world
• Likely to affect the relationship
between education and training
Competition For Key Talent Will Intensify
• Major economies will face
severe labour shortfalls
• New job profiles and skills will
be required
• Mobility will become a key
ingredient of talent development
• Demand for project-based and
temporary work will increase
Critical Talent Scarcity
Globally, 38% OF EMPLOYERS are having
DIFFICULTY FILLING JOBS in 2015
Countries experiencing MOST
DIFFICULTY filling jobs in 2015
Countries experiencing LEAST
DIFFICULTY filling jobs in 2015
Japan
83%
Czech Rep
18%
Peru
68%
Netherlands
14%
Hong Kong
65%
Spain
14%
Brazil
61%
UK
14%
Romania
61%
Ireland
11%
Source: Manpower 2015 “Talent Shortage Survey”
Top 10 Jobs Employers Are Having
Difficulty Filling
Global
Asia Pacific
1. Skilled Trade Workers
1. Sales Representatives
2. Sales Representatives
2. Engineers
3. Engineers
3. Technicians
4. Technicians
4. Skilled Trade Workers
5. Drivers
5. IT Staff
6. Management/Executives
6. Accounting &Finance Staff
7. Accounting & Finance Staff
7. Management/Executives
8. Secretaries, Administrative Assistant &
Office Support Staff
8. Secretaries, Administrative Assistant &
Office Support Staff
9. IT Staff
9. Sales Managers
10. Production/Machine Operators
10. Drivers
PHILIPPINES ECONOMIC
OUTLOOK 2016-2020
Population
GDP Annual Growth Rate
- Services account for 57% of total GDP
Corruption Index
Unemployment Rate
- 15 to 24 year olds = 50.1%
- 25 to 34 year olds = 28.3%
- College graduates = 23.1%
Unemployed Persons
Labour Force Participation
Job Vacancies Currently Available
2016
2020
102.2 million
110 million
6.9%
6.3%
35 points
51 points
6.1%
5.7%
2.5 million
2.6 million
63.6%
64%
200,000
185,000
Philippines Brain Drain
• Overseas Filipino Workers estimated at 2.4 million in
2015
• 1 in 4 (24.7%) OFW works in Saudi Arabia
− Other countries in Asia are United Arab Emirates (15.5%),
Hong Kong (5.9%), Kuwait (5.8%), Singapore (5.7%) and
Qatar (5.5%)
− North and South America (6.1%)
− Europe (7.1%)
• Remittances sent back = 180.3 billion pesos (2015)
Source: Philippines Statistics Authority (2015)
Occupations Deployed Abroad
by OFW
• Labourers and unskilled workers (33.2%)
• Service workers and shop and market sales workers
(17.6%)
• Plant and machine operators and assemblers (12.8%)
• Trades and related workers (11.8%)
Source: Philippines Statistics Authority (2015)
Rodrigo Duterte
Promises a stronger economy, stable
inflation, and robust fiscal position
Plans to:
− prioritise infrastructure spending
− lower corporate and personal
income taxes
− ease the process of doing business
− invest heavily in human resources
Global Twin Crisis
Shortage of jobs
vs.
Shortage of skills
75 million YOUTH are
57% of GLOBAL
UNEMPLOYED GLOBALLY
EMPLOYERS find it
difficult to source SKILLED
ENTRY-LEVEL TALENT
− 1/2 of youth are not sure that
their postsecondary
education has improved their
chances of finding a job
− McKinsey Global Institute
estimate that by 2020 there
will be a global shortfall of
85 million high-and
middle-skilled workers
Source: McKinsey & Co “Education to Employment: Designing a System that Works”
Global Talent Mismatch
Young people can’t find jobs.
Yet employers can’t find people with the right
entry-level skills.
How can we close this gap?
Education to Employment Challenges:
• Employers, education providers, and youth live in parallel
universes
• Fewer than ½ of youth and employers believe that new
graduates are adequately prepared for entry-level positions.
• But 72% of education providers believe the opposite.
• Disengagement between the stakeholders
• 1/3rd of employers never communicate with education providers
• 1/3rd of education providers are unable to estimate the jobplacement rates of their graduates
• Less than ½ of youth understand which discipline lead to
which profession
Education to Employment Challenges:
• The education-to-employment journey is fraught with
obstacles
• 31% of high school graduates do not continue education
due to cost
• 60% say on-the-job training and hands-on learning are the
most effective instructional techniques
• But, less than ½ are enrolled in curricula that prioritise
those techniques
• 40% say their first job is unrelated to their field of study
and they want to change positions quickly
Closing the Skills Gap: Collaborative
Approach
Employers
• Influence on materials taught
• Partner with universities to
provide technical and vocationalskills training
Universities
• Align curriculum more closely
with labour market needs
• Must prepare students for
unemployment
Governments
• Promote skill development
through state funded initiatives
• Simplify immigration rules for
skilled workers
• Encourage entrepreneurship
Individuals
• Enrol in curricula that prioritise
practical experience
• Invest in personal career
development
• Choose apprenticeship route
Example: India
Global Talent Track, India
• Works with over 900 colleges across 15 states and plans
to train more than 500,000 students over the next 5
years
Public Private Partnership: The National Skills
Development Corporation
• Promotes skill development by catalysing the creation
of large, high quality, for-profit vocational institutions
Example: Ghana
Centre for Entrepreneurship, Employment and
Innovation
• Provides young unemployed with a platform to
connect to experienced entrepreneurs, business
financiers, recruitment agencies, skills training experts
and policy makers so that they can either find
employment or received the requisite training, advice
and funding to actualise their business ideas
Example: Malaysia
HRDF Fund Administered by PSMB
• Established in 1993 with the aim of developing quality
human capital and world-class workforce in order to
achieve a high income economy based on knowledge
and innovation
• The HRDF spearheads the up-skilling of Malaysian
workforce by allowing employers to receive financial
assistance up to 100% to cover the training cost
incurred
Example: Denmark
Government Initiatives
• Funding of additional 800 adult apprenticeships
funding of wage-subsidised employment and skills
upgrading for academically weak young adults
• An increase in the number of job-rotation schemes in
the public sector
• In-company trainee programmes
Vocational Education and Training
Vocationally skilled people can meet the needs of
industries for specialised skills
Switzerland:
• No 1 on the Global Innovation Index
• 70% of young adolescents choose the
apprenticeship track rather than the university
route
• Unemployment rate of 3.6%
Germany and Austria:
• youth unemployment rates are as low as 8% as a
result of vocational education and training
Source: INSEAD:, he Global Talent Competitiveness Index, 2015-16
Students/Job Seekers
• Must be prepared for
unemployment.
• Looking for full time employment
is no longer the best option.
• Should consider looking for two or
even three part-time jobs, as well
as contract and temporary work.
Invest in Personal Development
• Must be prepared to make
personal investments into their
career development
• E.g. Erasmus Plus programme in
Europe
• Gain international experience
• E.g. AIESEC programme
In Summary
• There is a clear gap between the skills that businesses
are looking for and the skills available in the labour
market
• To close this gap there needs to be a closer
collaboration between the stakeholders
• Employers
• Universities
• Government
• Individuals
World Series Paper 5
Download the paper from www.map-int.com
The paper is also available as a 2-days training programme
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Contact Details:
Michael A Potter
Tel: (+44) 1617 764 383
Fax: (+44) 1617 764 384
[email protected]
www.map-int.com