Jobvite Summit'15 Chicago: Keynote - Jobvite CEO Dan Finnigan

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Power in Numbers: The Rise of the Super Recruiter Dan Finnigan Chief Executive Officer Jobvite

Transcript of Jobvite Summit'15 Chicago: Keynote - Jobvite CEO Dan Finnigan

1. Power in Numbers: The Rise of the Super Recruiter Dan Finnigan Chief Executive Officer Jobvite 2. Dan Finnigan President and CEO Jobvite, Inc. Senior Vice President General Manger of Yahoo! HotJobs. President and CEO Knight Ridder Digital & Careerbuilder Director President and CEO SBC/AT&T Interactive (now YP.com) New Business Development Los Angeles Times Entrepreneur in Residence Benchmark Capital Professor Farber Freelance Reporter MBA 3. Agenda Job Market Update Just-In-Time Economy Tectonic Technology Trends Impacting the Job Market Talent Has New Standards The Talent Funnel 4. Source: Tip Strategies, http://tipstrategies.com/geography-of-jobs/ The economy is back 5. 01/07 4% 6% 8% 10% 01/08 01/09 01/10 01/11 01/12 01/13 01/14 01/15 Job growth has improved leaps and bounds since the downturn of 2007 Unemployment rates by education Less than HS 4 year college degree Overall unemployment rate 01/08 10% 15% 20% 5% 01/09 01/10 01/11 01/12 01/13 01/14 01/1501/07 6. The U.S. has returned as a global force: GDP outpaces other countries Change in Rate of GDP growth Jan-10 1 0 -2 -3 Sep-10 May-11 Jan-12 Sep-12 May-13 Jan-14 Sep-14 -1 2 3 4 5 United States China Europe 7. The U.S. market is pulling ahead towards energy independence Total energy production and consumption projection 1980 1990 2000 2013 2020 2030 2040 0 60 70 80 90 100 110 History Projections2013 ~~ Consumption Production 8. Welcome to the fast-paced, ever-changing just-in-time economy Job openings and employment seasonally adjusted, in thousands 2,500 3,500 4,000 Jan 10Jan 09Jan 08Jan 07Jan 06Jan 05 3,000 2,000 4,500 5,000 5,500 Jan 11 Jan 12 Jan 13 Jan 14 Jan 15 130,000 134,000 136,000 132,000 128,000 138,000 140,000 142,000 Job openings Employment Source: Bureau of Labor Statistics, Current Employment Statistics and Job Openings and Labor Turnover Survey, April 7, 2015. Note: Shaded area represents recession as determined by the National Bureau of Economic Research (NBER) Recession 9. Which has contributed to the rise of the disposable worker Breakdown of GPD decline during last five recessions Source: US Bureau of Economic Analysis; McKinsey Global Institute -0.65 -0.53 -0.45 -0.27 -0.70 2007-200920011990-19911981-19821973-1975 Employment Productivity 10. In a just-in-time economy layoffs happen as fast as hires Job cuts in the tech sector rose 77% in 2014 *Source: Washington Post, http://www.washingtonpost.com/blogs/on-leadership/wp/2015/01/28/the-biggest-mass-layoffs-of-the-past-two-decades/ Source: Bureau of Labor Statistics, http://data.bls.gov/timeseries/JTS00000000LDR cut 18,000+ employees in 2014 cut 16,000 employees in 2014 cut 6,000 employees in 2014 cut 2,000 employees in 2014 11. Source: Challenger, Grey, and Christmas, Inc., http://www.challengergray.com/press/press-releases/2014-year-end-ceo-report-107-ceo-exits-december-highest-yearly-total-2008 Leadership comes and goes in the blink of an eye 2014 saw the largest number of CEO changes since 2008 Average tenure of a departing S&P 500 company CEO has decreased in recent from roughly 10 years in 2000 to 8.1 years in 2012 Ideal tenure for a CEO is 4.8 years 2009 2010 2011 2012 2013 1,500 1,400 1,300 1,200 1,100 Number of CEO Changes 12. Source: ERE, http://www.ere.net/2015/01/26/employers-forecast-to- increase-use-of-temp-agencies-by-10-5/ Source: Institute for Study of Labor, http://ftp.iza.org/dp5386.pdf And in this just-in-time economy, talent acquisition is an oxymoron 46% of employers will add temp and contract workers in 2015 +10% Increase in temp and contract hiring over last year 135,000 new temp workers in Q1 of 2015 13. The working age population is shrinking driving a tightening of the market supply Source: Deloitte Research, UN Population Division (http://esa.un.org/unpp/) demographics (%) 200 100 0 -50 Mexico Brazil India China South Korea Australia Canada US Netherlands Spain France UK Russia Italy Japan Germany 1970 - 2010 2010 - 2050 PROBLEM 1: SHRINKING WORKFORCE 14. Source: Bureau of Labor StatisticsSource: Bureau of Labor Statistics Less than High School 11% High School 8% Some College 11% Associate Degree 18% Bachelors Degree 12% Masters Degree 18% Doctoral / Professional Degree 16% Jobs in the future require education PROBLEM 2: EDUCATION % change employment 2012- 2022 15. Looking ahead, companies will face stiff competition for top talent Source: Bureau of Labor Statistics, http://www.bls.gov/careeroutlook/2014/spring/art01.pdf 2012 2022 Information security analysts 75,100 102,500 36.48% Operations research analysts 73,200 92,700 26.64% Statisticians 27,600 34,900 26.45% 24,600 Biomedical engineers 19,400 26.80% Actuaries 24,300 30,600 25.93%% Increase 16. Looking ahead, companies will face stiff competition for top talent Source: Bureau of Labor Statistics, http://www.bls.gov/careeroutlook/2014/spring/art01.pdf 2012 2022 Computer systems analysts 520,600 648,400 24.55% Software developers, applications 613,000 752,900 22.82% Mathematicians 3,500 4,300 22.86% Software developers, systems software 405,000 487,800 20.44% Petroleum engineers 38,500 48,400 25.71%% Increase 17. Source: Brookings Institute, http://www.brookings.edu/research/interactives/2014/job-vacancies-and-stem-skills#/M10420 There is already a severe shortage for skilled talent. That means companies face stiff competition STEM vacancies take 2x as long to fill STEM ads last 50 days 4 million job vacancies in computer science 18. Source: The White House: https://www.whitehouse.gov/issues/technology/techhire Obamas tech training initiative Immigration reform Policies are challenging the status quo of the American economy and the job market 19. Welcome to the reality of the real-time economy where technologies are redefining the very nature of modern work Social Big Data Applying Algorithm IoTMobile 20. Welcome to the reality of the real-time economy where technologies are redefining the very nature of modern work Transforming companies, industries and the nature of work Applying Algorithm "Software substitution, whether it's for drivers or waiters or nurses it's progressing. ... Technology over time will reduce demand for jobs, particularly at the lower end of skill set. ... 20 years from now, labor demand for lots of skill sets will be substantially lower. I dont think people have that in their mental model. Bill Gates, May 2014 21. Source: Henry Siu and Nir Jaimovich for Third Way WSJ.com Jan68 Jan70 Jan72 Jan74 Jan76 Jan78 Jan80 Jan82 Jan84 Jan86 Jan88 Jan90 Jan92 Jan94 Jan96 Jan98 Jan00 Jan02 Jan04 Jan06 Jan08 Jan10 Jan12 Jan14 35% 33% 31% 29% 27% 25% Recession Its a two-tiered labor market. For many, routine jobs are being eliminated Share of the population age 16 and over employed in jobs that involve primarily routine tasks 22. doctoral degree professional degree masters degree bachelors degree associates degree some college, no degree high school diploma less than a high school diploma all workers 5.4% all workers $839 unemployment rate in 2014 (%) 2.1 1.9 2.8 3.5 4.5 6.0 6.0 9.0 median weekly earnings in 2014 ($) 1,591 1,639 1,326 1,101 792 741 668 488 PROBLEM 3: SHORTAGE OF SKILLED LABOR Net net: We have a severe shortage in the skilled labor market resulting in increased competition for new hires education pays Note: Data are for persons age 25 and over. Earnings are for full-time wage and salary workers Source: Bureau of Labor Statistics, Current Population Survey 23. On average, millennials will hold 15-20 jobs in their career Source: www.fastcompany.com/magazine/162/average-time-spent-at-job-4-years 6.2 Number of jobs the average millennial holds between 18 and 26 3 yrs Californians and millennials 4.6 yrs in the U.S. 18 mostartup engineer PROBLEM 4: EMERGENCE OF JOB SHOPPERS median tenure in current job: 24. Besides death and taxeschurn is the only guarantee Source: Quartz, http://qz.com/359578/more-americans-are-quitting-their-jobs-and-thats-a-good-thing/ Source: 2015 Job Seeker Nation Survey, http://www.jobvite.com/wp-content/uploads/2015/01/jobvite_jobseeker_nation_2015.pdf The U.S. quit rate as a percentage of the labor force 2.8% 2.6 2.4 2.2 2.0 1.8 1.6 1.4 1.2 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 25. and this comes with new standards We are living working and interacting in a new, real-time world 26. A new standard Employees are in the drivers seat Skilled workers have options. What are you doing to compete? 61% Compensation 21% Company Culture 35% Growth Opportunities 38% Work/Life Balance Source: http://www.pwc.com/gx/en/managing-tomorrows-people/future-of-work/assets/reshaping-the-workplace.pdf 59% Modern Technology 27. A new standardA new standard Compensation is expected to align with market value 28. We expect more from technology at home and in the workplace A new standard 29. A new standard Work is an extension of life and vice versa 30. Coursera has partnered with companies to create employee training and development programs. A new standard Source: Forbes: http://www.forbes.com/sites/georgeanders/2014/08/20/courseras-new-goal-teaching-at-firms-such-as-mastercard/ Learning is a lifelong pursuit LinkedIn acquired Lynda.com 31. Stan Slap Brand Strategist and CEO of Slap You don't have to fear your own company being perceived as human. You want it. People don't trust companies; they trust people A new standard Values are essential Millenials believe the business ethos has too short-term a focus. Beyond that, millennials believe companies should spend less time on short-time roles and more time on broadly building contributions to society, more time focusing on their people, Deloitte Global Chairman Steve Almond 32. What does it take to thrive in a real- time economy? talent revenue 33. Continuously finding the best people you possibly can for today and tomorrow You must build talent for the digital organization of 2020 NOW. Not just the digital technology organization, but the whole enterprise. Gartner Top 10 Strategic Predictions for 2015 and Beyond: Digital Business Is Driving 'Big Change' Published: 4 October 2014 34. Employment Brand Sourcing Candidate Experience Candidate Selection Insight A never-ending recruiting pipeline is needed now for tomorrow! 35. Employment Brand Sourcing Candidate Experience Candidate Selection Insight Employment Brand x 36. Employment Brand Sourcing Candidate Experience Candidate Selection Insight Sourcing 37. Employment Brand Sourcing Candidate Experience Candidate Selection Insight Candidate Experience 38. Employment Brand Sourcing Candidate Experience Candidate Selection Insight Candidate Selection Candidate Centric 39. Employment Brand Sourcing Candidate Experience Candidate Selection Insight Candidate Selection Candidate Centric 40. Employment Brand Sourcing Candidate Experience Candidate Selection InsightInsight 41. shifting beneath our feet 1. The world is 42. real-time economy 2. Connectivity and immediacy affecting how we work, how we live and how we think 43. 3. Its up to you 44. HR FUNCTION OR PROCESS PROFIT GROWTH PROFIT MARGIN TOTAL IMPROVEMENT Recruiting 3.5x 2.0x 5.5 On-boarding and retention 2.5x 1.9x 4.4 Managing talent 2.2x 1.9x 4.4 Employer branding 2.4x 2.1x 4.3 Performance management and rewards 2.1x 2.0x 4.1 Developing leadership 2.1x 1.8x 3.9 Mastering HR process 1.8 1.8 3.6 Global people management and global expansion 1.8 1.7 3.5 Enchancing employee engagement 1.8 1.6 3.4 Providing shared services and outsourcing 1.6 1.7 3.3 Recruiting is the most critical HR function delivering 40% more profit growth than next HR function Source: Boston Consulting Group, Realizing the Value of People Management; From Capability to Profitability, August 2, 2012 45. You & Jobvite are working hardand its working! 45 46. You & Jobvite are working hardand its working! 35% of U.S. Job Seekers use Jobvite Millions of Candidate referrals Visitors from 202 Countries Growing Databases of Prospects and Job Seekers Faster time to hire than the industry standard 47. to support you We are committed every step of the way Employment Brand Sourcing Candidate Experience Candidate Selection Insight