Preparing Leaders for the Workforce of the Future

Preparing Leaders for the Workforce of the Future

The future of work will look very different than it does today.

Four Major Trends:1. Minorities Become the Majority2. Millennials Take the Place of Retiring Baby

Boomers3. Women Start Their Own Businesses 4. The Contract and Freelance Workforce is

Growing

Trend One: Generational Shift

A Baby Boomer Turns 50 Every 8.5 Seconds

Aging Population

• 75 M Baby Boomers will retire within the next 10-15

years

10,000 people turn 65 each dayThat’s about 416 an hour…

By 2029, 20% of the total U.S. population will be over the age of 65

Will Baby Boomers Retire on Time?

• 7 in 10 retirees indicate they will retire after 65, or not at all

• Gallup study results do not support this hypothesis

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Boomers Hit 65• If they don’t retire, skyrocketing costs

–Healthcare–Pension

• Personnel issues–Will their skills keep up?–Can they adjust to a new culture?–What’s their role re: young workers?

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Millennials Take the Place

of Retiring Baby Boomers

Millennials (born 1981 to 2001) are the majority of the U.S. workforce as of 2015

• 53% hiring managers say they have a difficult time finding and retaining Millennials

YET

• 39% Millennials have difficulty finding a traditional job

What’s the Disconnect?

The Global Reality of Our New Workplace Majority58% of Millennials expect to leave their jobs in three years or less

79% Millennials would consider quitting regular job & working for themselves in the future

52% think corporate is totally outdated, and pros are successful if they carve their own path

Trend Two: Women Start Their Own Businesses

A recent Gallup study showed women were 33% engaged at work, 50% not engaged, and 17% actively disengaged.

Men were 28% engaged, 53% not engaged, and 19% actively disengaged.

Women hold as many college degrees as men and earn 50% more graduate degrees as men

At Current Rates of Increase, It Will be 475 Years (the Year 2466) Before Women Reach Equality in Executive Suites• Women hold 53% of entry level jobs, but only

26% of senior management roles• Higher in the ranks, women make up only

3.1% of senior executives at Fortune 500 companies

What Do Women Want?

1. Work flexibility (83%) ranked most important job factor when evaluating job prospects

2. Work-life balance ranked second at 75%

3. Salary is third most important factor to women (74%)

Between 1997 and 2014, the total number of businesses in the United States increased by 47%, but the number of women-owned firms increased by 68% — a rate 1 ½ times the national average.

Women-Owned Businesses:• More than 9.4 million firms are owned by

women• They employ 7.9 million people• They generate $1.5 trillion in sales as of 2015. • 1,288 net new women-owned firms launched

each and every day.

Minority Women• Asian women-owned businesses increased by

44.3%• Black women-owned businesses have grown

by 67.5%• Hispanic women-owned operations increased

by 87.5%• These firms employ 699,200 and generate an

estimated $115 billion in revenue.

Millennial Women• 54% want to start businesses or have already

started one• Millennial women said “being independent” is

an important life goal• This generation may hold most

entrepreneurial women yet• Kauffman Foundation has dubbed the next

decade as, “The Decade of the Woman Entrepreneur”

Trend Three: Diversity is Here

95% of U.S. Population Growth is Attributed to Ethnic Groups

By 2020, “minorities” will make up 40% of the civilian labor force

Hawaii, California, New Mexico, Texas and Washington, D.C., are now majority-minority

Demographers predict that U.S. will be completely majority-minority by 2040

The New Majority• Who has Bachelors Degrees?

– 15.5% Hispanic– 53.9% Asian– 22.5% Black– 32.8% White

Trend Four: The Growth of the Contract and

Freelance Workforce

Currently 53 Million Americans (34% of the Workforce) are Considered Contingent, Temporary, Diversified, or Freelance Workers

40% by 2020

• Employers are

reluctant to hire • Health care expenses • Millennials (Gen Y)

Value • Mobility • Flexibility • Work/life balance

Growth of the Contract Workforce

How to Survive and Thrive

Survive and Thrive: HR Solution

Survive and Thrive:Sales Solution

Survive and Thrive:Strategic Planning Solution

Preparing for Baby Boomers Retiring:

Best Practices

• Invest in education and training programs for younger employees.

• Start an intergenerational mentoring program. • To bridge the knowledge gap, institute flexible

work options for Baby Boomers.

Best Practices for Business Leaders

Preparing for Women Leaving the Workplace:

Best Practices

• Start a formal mentoring program. • Institute flexible work arrangements that don’t

have barriers. • Function as a results-only work environment,

and create formal compensation policies with clear criteria.

Best Practices for Business Leaders

• Prepare to update parental leave, flexible work, and gender discrimination policies.

• Stay up to date on EEOC regulations.

Best Practices for Business Leaders

Preparing for the New Majority:

Best Practices

• Focus on retaining your current minority employees and developing them into your leaders of the future.

• Start a paid internship education program for high school students from ethnically diverse areas.

Best Practices for Business Leaders

Best Practices for Business Leaders

• Invest in a predictive analytics program to collect detailed data about whether discrimination plays a role in your daily workplace interactions, job placement, rate of pay, bonus structures, or advancement.

Rise of the Temporary Workforce:

Best Practices

• Organizational culture starts with you. • Keep organizational vision and values in mind

during the hiring process, no matter how short-term the project may be.

• Make sure your freelance employee feels part of your team.

Best Practices for Business Leaders

• Be aware of misclassification and make others aware to avoid legal action.

• Take time to onboard and integrate freelance employees into your organization.

• Prepare for new tax regulations.

Best Practices for Business Leaders

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Will You Be Ready?

Email: anneloehr@anneloehr.comTwitter: @AnneLoehr