Winning the Battle for Young Talent Winning the Battle for Young Talent and Lead Usersand Lead Users

“The Battlefield for New Talent”“The Battlefield for New Talent”

February 22, 2001February 22, 2001

Presented by Dave Quinn

Regional Director

Futurestep

Futurestep’s Technology Driven Process

Winning the War for Talent

• Futurestep was created through a strategic alliance between Korn/Ferry International and The Wall Street Journal

• Futurestep combines executive recruitment search expertise and proprietary candidate assessment software with the vast reach of the Internet, effectively leveraging Korn/Ferry’s industry knowledge to a dynamic new medium.

• Futurestep offers the largest candidate database of high-income professionals and the most powerful assessment tools available online.

0

100

200

300

1993 2000 2010 2025 2050

Required Workforce (Bureau of Labor Statistics)

US Population (US Census)

The War for Talent

Static Population Growth Versus Labor Demand

The Bureau of Labor Statistics reports that the average person in the U.S.holds 9.2 jobs from ages 18-34. And the median number of years that aworker has been with their current employer is 3.5 years.

By the year 2003, the number of online job seekers will rise to 5-10 millionfrom the present 1-2 million. (Source: Thomas Weisel Partners LLC)

Generation Y Worries About Work

• More than two-thirds of young adults say they are concerned about finding a good job in the future.

Source: Medill New-Service, 2000

Generation Y Worries About Work

• According to a Medill News-Service national survey of 18 to 24 year-olds, 43 percent of Generation Y said they were “very concerned” about their place in the future job market.

Source: Medill New-Service, 2000

Generation Y Worries About Work

• Not everyone is worried about the future. Of those surveyed, 21 percent said they were “not too concerned” about their place in the job market, and 11 percent said they were “not at all concerned.”

Source: Medill New-Service, 2000

1988 - 1999, Seasonally Adjusted

4.04.55.05.56.06.57.07.58.0

1988 1990 1992 1994 1996 1998 1999 2000

The War for TalentRecord Low Unemployment Levels

There are currently an estimated 2,500 Web sites that seek to match jobprospects with an employer. (Source: December 6, 1999 Wall Street Journal)Futurestep.com is the ONLY site that does so WITHOUT POSTING JOBLISTINGS.

Human Capital is the Key to Growth in this Economy -- today and tomorrow

Talent attraction and retention must be the focus for this decade

Human capital will be the key constraint

Projected Change in Age Distribution of the U.S. Population from 2000 to 2010

5-9 10-14 15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65-69 70-74 75-79

60%

50%

40%

30%

20%

10%

0%

-10%

-20%

Age

The “Echo Boom” ages 15-

29Shrinking Pool of “Prime” workers

ages 30-44

Aging “Baby Boomers” ages 45-

69

Source: U.S. Census

Companies Attract Talent byProviding the Right Culture

Candidates want:

Values and culture 58

Well-managed 50

Company has excitingchallenges 38

Strong performance 29

Industry leader 21

Many talented people20

Freedom & autonomy56

Challenging & exciting51

Career advancement &growth 39

Differentiated compensation28

High total compensation 23

GreatCompany

GreatJobs

CompetitiveCompensation

Source: Adapted from McKinsey & Co.: The War for Talent

To Excel in Human Capital Creates a Series of Challenges

Challenges

Shortage of talent

Attracting “winners”

Selecting candidates who “fit” an evolving culture

Improving the quality of the process

Risks

Lack of middle managers to leverage Generation “X”

Cost of a mis-hire

Turnover

Gap in skills to execute strategy

Career Life Cycle

• Internships• Part-Time• Full-Time• Consulting

• Supervisory/ Managerial (people)• Professional (skills)• Project Management

• CEO/President• Owner• VP/SVP/EVP• Project Director• Board Director

• Consulting• Re-entry• Part-Time

Entry Middle Management Executive Retirement

Pinnacle

Entry

Ascen

t Maturity

Contingency

Recruitment Challenge

CLIENT

Client Site

Advertising

Retained Search

Job Boards

Internal Job Postings

Unsolicited Resumes

Graduate Recruitment

CLIENT

Competitive intensity in online recruiting is high

Note: Contingent and temporary market sizes based on analysis of Kforce’s (formerly Romac) revenuesSource: Forrester Research, IDC, Gartner, Company 10K reports, Monitor analysis

Services Offered

Technology Enabled High Touch Services Low Touch Technology Solutions

Search – Permanent

Contingent ($200 MM)

Retained / Fee ($75 MM)

Job Board ($800 MM)

Recruiting Applications ($200 MM)

Candidate Segment

Search &

Match

Screen &

Assess

Interview Close

Search – Temporary ($750 MM)

Job Posting Job Application

Search Screening Logistics

Senior Management $150K +

Mid Management $75 – $150K

$25 – $75K

College Students

Traditional Retained Search (Offline)

kforce

Futurestep

LeadersOnline

Cruel World

Traditional Contingent

Search (Offline)

JobDirect Jobtrak

HotJobs (including Resumix)

Monster (including Simpatix)

WebHire

CareerBuilder (CareerPath)

Headhunter

(CareerMosaic)

Hire

6FigureJobs

DICE Emplawyernet

SHRM TechieGold

Techies

FreeAgent Guru

As a result, a number of large competitors are occupying new (and threatening) positions

Offline Recruitment Advertising

Tribune Co.

& Knight Ridder

TMP World-Wide

Services Offered

Technology Enabled High Touch Services Low Touch Technology Solutions

Search – Permanent

Contingent ($200 MM)

Retained / Fee ($75 MM)

Job Board ($800 MM)

Recruiting Applications ($200 MM)

Candidate Segment

Search &

Match

Screen & Assess

Interview Close

Search – Temporary ($750 MM)

Job Posting Job Application

Search Screening Logistics

(Offline Traditional Search Firms)

Heidrick & Struggles

Korn/Ferry International

Senior Management $150K +

Mid Management $75 – $150K

$25 – $75K

College Students

Monster (including Simpatix)

JobDirect

WebHire

CareerBuilder (CareerPath)

LeadersOnline Futurestep

(Offline Traditional Search Firms)

TMP Executive Search and Selection

Heidrick & Struggles

Korn/Ferry International

Monster Talent

Market

Morgan & Banks

Winning the War for Talent• Webhire, Inc. – a leading business services provider in the Internet

recruiting marketplace. This new relationship enhances Futurestep’s ability to provide more extensive product offerings to clients and provide enhanced end-to-end human capital management solutions.

• MBA Interactive Media – an Internet company providing web-based information, entertainment, products and services to targeted groups within higher education. Separate but co-branded websites will target undergraduate, business, law, and medical students.

• JobDirect.com – a leading online recruitment company serving college graduates and entry-level professionals. JobDirect.com is currently the largest searchable database of over 500,000 college-level candidates with registrants from more than 2,400 colleges and universities, providing the most qualified college-level recruits.

Winning the War for Talent

• Graduate Management Admissions Council (GMAC) – Futurestep’s recent exclusive 10-year alliance and forthcoming launch of the new “MBAfuturestep.com” site affords extensive exposure in building relationships with prospective MBA aspirants early in their career.

• CNBC and the CNBC.com “Career Center” – this alliance has generated over 1 million page views each month.

• Future alliances and acquisitions will look to further develop Futurestep’s relationship with both clients and candidates, expanding both value-added content and service offerings.

Futurestep’s Broad Capabilities Span Industries and Functions

Internet 17%

Financial Services12%

Healthcare11%

Consumer Prod. 11%

General Practice10%

Professional Services 9%

Industrial7%

High Tech6%

Telecom6%

Entertain/Retail6%

Other 5%

General Management13%

Financial Services 20%

IT/Engineering12%

Other7%

Advertising/Sales & Mktg.38%

Human Resources10%

By Industry By Function

Futurestep Searches by Sector

Futurestep’s outreach programs focus on career management and development

• Creation of industry specific on-line communities to provide candidates the means to build a network and communicate with other professionals in their field

• Industry and function specific content keeping candidates abreast of news and changes in their profession

• Live chats with career counselors and industry experts• Biweekly newsletters to keep candidates aware of the job search

market, positions, and trends being seen

• Salary feedback for desired positions in a selected geographic market• Time-consuming corporate research and economic information is

consolidated for the job seeker’s use

• Ongoing assessments of style, capabilities and work motivators to broaden candidates’ insights from new career experiences and new work environments

Through its many strategic alliances, these outreach programs allow Futurestep to educate and develop candidates throughout their entire career cycle - from school graduation, through experienced middle manager opportunities, to becoming senior officers in their organizations

• This combination of bricks and mortar is required to build a career long relationship that attracts the young talent necessary for tomorrow’s economy

Confidential information supplied by candidates:

Work History/Education/Compensation

Decision-making style

Communication Style

Career Motivators

How Does Futurestep Work?

Candidate Info

Candidate Personal Profile

Candidate Site

Candidate completes registration process

How Does Futurestep Work? Futurestep Proprietary Assessment Tool matches Candidates that

“Best Fit” Client Requirements and Culture

“Best Fit”Candidate

• Problem Solving/Decision Making Style - Action-Oriented versus Analytical - Persistent versus Flexible

• Interpersonal Style - Directive versus Collaborative - Quick versus Comprehensive

• Leadership Style -Traditional - Collegial

• Career Motivators - Stability - Personal Growth - Achievement - Independence

Compensation Skills andExperience

Other Factors - Location

Futurestep Provides Complete

Client Report

Qualifications/Work Experience (resume info)

Cultural Profile & Motivator Analyses

Interview clip of actual candidate interview