HR ECONOMICS: ALIGNING PEOPLESTRATEGIES WITH ECONOMICINDICATORS"

Gina Teresa E. AlonsoPMAP Regional ConferenceAugust 5, 2016

On The Agenda

I. General Economic Landscape

II. Economic Indicator in Focus: Employment

III. Variables for People StrategyEducation SystemThe Changing Profile / Qualifications of WorkerThe Changing Nature of Work

IV. Key Takeaways

Economic

Quarter BOI CDC PEZA SBMA TotalQ1 2,435.0 1,851.8 17,674.9 60.2 22,033.4Q2 8,806.5 14,602.1 16,770.5 101.0 40,280.0Q3 10,662.4 2,149.0 14,510.6 664.6 27,999.8Q4 1,331.0 203.0 146,578.2 19,511.1 167,918.1

2011 23,234.9 18,805.9 195,534.1 20,336.9 258,231.2Q1 3,733.4 1,604.5 12,787.1 144.1 18,505.0Q2 6,688.8 532.6 15,284.6 128.9 22,663.2Q3 7,441.0 36.2 10,083.7 162.5 18,160.7Q4 56,201.6 2,331.1 171,221.0 216.7 230,215.4

2012 74,064.8 4,504.4 209,376.5 652.3 289,544.3Q1 17,164.3 50.4 32,869.5 134.7 50,305.2Q2 45,641.4 749.2 12,370.3 39.4 58,829.0Q3 3,879.8 159.7 28,346.5 379.3 32,920.0Q4 53,960.7 1,026.7 74,084.5 114.6 131,959.3

2013 120,646.3 1,986.0 147,670.8 668.0 274,013.5Q1 4,686.4 358.6 20,976.4 11,318.4 37,413.4Q2 6,776.1 7,582.1 21,080.9 187.6 36,030.5Q3 1,933.4 596.9 15,210.1 124.5 18,330.5Q4 23,492.4 449.7 70,212.2 646.8 95,185.6

2014 36,888.4 8,987.3 127,479.7 12,277.2 186,960.0Q1 2,378.3 4,636.4 14,423.0 191.9 21,816.1Q2 10,908.3 720.4 23,961.0 270.8 36,210.7Q3 28,509.9 2,265.0 13,894.3 394.6 48,570.9Q4 17,710.5 2,080.0 116,647.0 1,950.2 138,618.1

2015 59,507.0 9,701.8 168,925.3 2,807.5 245,215.7

Total Approved Foreign Investments (2011-2015)

Percent Distribution of Population 15 Years Old and Over by Employment Statusby Gender (Philippines)

Region and Gender Total Population (15 Years Old and Over) Total Labor Force Employed Unemployed Not in the Labor Force

Philippines 66,613 41,901 39,177 2,723 24,713Number (in thousands)Total 100.0 100.0 100.0 100.0 100.0Male 50.0 60.5 60.4 62.1 32.1Female 50.0 39.5 39.6 37.9 67.9

Source: PSA

Higher Education Graduates Per Discipline

Ave. no. of graduates(last 3 years): 22,757

College Graduates in Cebu

Schools not keeping up withrapid technology change,industry needs andrequirements

(1) Education System

QS WORLD RANKINGS

2012 2013 2014 2015UP 348 380 367 401-410

AdMU 451-500 501-550 461-470 501-550UST 601+ 701+ 701+ 701+

DLSU 601+ 601-650 651-700 701+

Philippine universities in top 3502016 2015 Institution

70 70 University of thePhilippines

99 114 Ateneo de ManilaUniversity

143 181-190 De La Salle University

157 143 University of SantoTomas

251-300 - Ateneo de DavaoUniversity

251-300 - Silliman University251-300 - Xavier University301-350 - University of San Carlos

2016 QS Asia University Ranking

“strategic” positioning of itsuniversities as “competing in theglobal economy” and generousfinancial support for research

Singapore

Vietnam

investments in education and"cultural differences"

education system more centralized,higher emphasis on student achievement

Teaching style and modality;Need to address systemicconditions

Lack of standardization ineducation (global context)

(1) Education System

Multigenerational Workforce

BABY BOOMERS 1945 – 1964 Expect some degree of deference to their opinions; workaholics; ‘be anything youwant to be’; ‘eternal youth – retirement as freedom’.

GENERATION X 1965 – 1979 Comfortable with authority; want to be listened to; will work as hard as is needed;‘don’t count on it’; ‘take care of yourself’; importance of work life balance.

GENERATION Y 1980 – 1994 Respect must be earned. ‘You are special’; ‘achieve now’; technologically savvy; goaland achievement oriented.

GENERATION Z 1995+ Many traits still to emerge. Digital natives, fast decision makers, highly connected.

( Tolbi z e, 20 08)

(2) Changing Profile/Qualifications of Workers

Fun environmentsocial & recreational facilitieseco friendly environmentteam workinformal communicationwork in cubicleno dress code

Work life balanceflexi hourstime & work managementpurpose and meaning in workCSR / employer brandformal grievance mechanismstress busters

Competitive salary, financial benefits,profit sharing

Money in handemployee referralshome loansESOPspay on merit

Advancing their skill sets & nurturing theircareers

Mentors not managerswork related training; continuous learningclear career pathindividual assessments : measurable, ongoing, 360promotions : recognition & redefinition of work

What is Gen Y Seeking…?

Utilize full potentialadd more value(still) very ambitious; want to progressUntapped talent; want to reach their peak

Preference for status quoblock changestatic; as isfinancial and social levels met

Satisfy intrinsic needsfulfillment; sense of purpose, prideinteresting and challenging workmental stimulationreinforce power of interactionleave a legacy

Want something differentcoach and mentor to otherspass on skills, experience, and wisdomsenior advisory rolesmore risky projects; new territoriesrelationship in a different form

The Ashridge Journal 2016

What are Baby Boomers Seeking…?

Impact on Workplace As Baby-boomers Leave…

Large scale loss of expertiseExperts leaving the workplace in waves, depriving their organizationsof critical skills, experience and relationships that are likely hard toreplace; Need to manage successful transfer of experience andknowledge to younger workers

Challenge of eldercare for employeesIncreasing number of employees need to balance work with caringfor elderly parents and other relatives (Issues: family and sociallife; Productivity)

(Community Business)

(3) Changing Nature of Work

Work gettingfragmented –

GIG Economy; Newsocial contract

Hyper connectedness andcollaboration within thenetwork – build business

partnerships, createvaried career

Increased relianceon technology andsmart machines –

further replacehuman workers

Advances in technology willeliminate some jobs…

56% of the salaried workforcein 5 Southeast Asian countriesincluding the Philippines are athigh risk of losing their jobs toautomation in the next 2 decades

Are you ready for this…?

50% of HR practitionerscurrently in the profession willbe gone in less than a decade

Each of these 19 workplace trends below reflects a basic human need, which crosses all demographics of employeessurveyed. These five basic needs are Freedom, Knowledge, Stability, self-Management, and Meaning

Employees willbe able to workfrom anywherein the world

People will chooseto spend their timeworking on thingsthat are of personalinterest to them orhave a broaderimpact on society

Departments andhierarchy will nolonger exist

Employees willwork wherevertheir skills areneeded thanremaining loyalto one company

The need foremployees toconstantly shift roleswill require learningnew skills quickly

Technology willallow for deeperpersonalconnectionsacross distanceand time

A standardretirementage will ceaseto exist.People willretire bychoice

Employees willdo all of theirwork from amobile device

Employees willprimarily rely onself-service and/orinformation fromthe internet to solveproblems and gettheir jobs done

Companies willsearch globally forthe best talent

Organizationswill take morerisks in order tokeep up with thepace of change

Organizations willuse technology tomeasure and impactthe well-being ofemployees

Social media willbecome thecollaborationplatform forwork

Workplace Trends Reflect Needs of Workforce

Employees willdefine their ownwork schedule,based on whatis convenientand effective forthem

Employees wll bepaid in real-timebased on theirwork contribution(reaching a projectmilestone, etc…)

Companies willexclusively hirecontract workerson a project-by-project basis(little to no full-time, steadyemployees)

People will usetechnology tolearn anything,anytime,anywhere

Technology (suchas real-timecensors) will enableorganizations toproactively adjustthe performance ofindividuals andteams

Automation,smartmachines, andAI will replacepeople forrepetitive work

Workplace Trends Reflect Needs of Workforce

(Source: ADP Research)

▌HR needs to think business, not just HR. The external marketmust be integrated within how HR operates

▌Analytics capabilities will be a fundamental requirement for theeffective HR business partner

▌Build relationships. Connect yourself to central nodesin the network

Key Takeaways