Keynote NYC: Rise of the Super Recruiter

Agenda

•  Job Market Update

•  Just-In-Time Economy

• Tectonic Technology Trends Impacting the Job Market

• Talent Has New Standards

• The Talent Funnel

Source: Tip Strategies, http://tipstrategies.com/geography-of-jobs/

The economy is back

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 01/15 01/07

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

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 Projections 2013

~ ~

Consumption

Production

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 10 Jan 09 Jan 08 Jan 07 Jan 06 Jan 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

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

2007-2009 2001 1990-1991 1981-1982 1973-1975

Employment

Productivity

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



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

?

Source: ERE, h-p://www.ere.net/2015/01/26/employers-‐forecast-‐to-‐increase-‐use-‐of-‐temp-‐agencies-‐by-‐10-‐5/

Source: InsDtute for Study of Labor, h-p://Gp.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

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

Source: Bureau of Labor Statistics Source: Bureau of Labor Statistics

Less than High School 11% High School 8% Some College 11% Associate Degree 18% Bachelor’s Degree 12% Master’s Degree 18% Doctoral / Professional Degree 16%

jobs in future require education PROBLEM 2: EDUCATION

% change employment 2012- 2022

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%

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

Source: Brookings InsDtute, h-p://www.brookings.edu/research/interacDves/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

Source: The White House: https://www.whitehouse.gov/issues/technology/techhire

Obama’s tech training initiative

Immigration reform

Policies are challenging the status quo of the American economy and the job market

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

Social

Big Data

Applying Algorithm…

IoT Mobile

Source: Henry Siu and Nir Jaimovich for Third Way – WSJ.com

Jan 68

Jan 70

Jan 72

Jan 74

Jan 76

Jan 78

Jan 80

Jan 82

Jan 84

Jan 86

Jan 88

Jan 90

Jan 92

Jan 94

Jan 96

Jan 98

Jan 00

Jan 02

Jan 04

Jan 06

Jan 08

Jan 10

Jan 12

Jan 14

35%

33%

31%

29%

27%

25%

Recession

It’s 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

doctoral degree professional degree

master´s degree bachelor´s degree associate´s degree

some college, no degree high school diploma

less than a high school diploma

all workers 5% 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

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 mo startup engineer

PROBLEM 4: EMERGENCE

OF JOB SHOPPERS

median tenure in current job:

Besides death and taxes…churn 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 US 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

and this comes with new standards We are living working and interacting in a new, real-time world

A new standard Employees are in

the driver’s 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

A new standard A new standard

Compensation is expected to align with market value

We expect more from technology at home and in the

workplace

A new standard

A new standard Work is an extension of life and vice versa

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

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

What does it take to thrive in a real-time economy?

talent

revenue

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

Employment Brand

Sourcing

Candidate Experience

Candidate Selection

Insight

A never-ending recruiting pipeline is needed now for tomorrow!

Employment Brand

Sourcing


Candidate Selection

Insight

Employment Brand

x

Employment Brand

Sourcing


Candidate Selection

Insight

Sourcing

Employment Brand

Sourcing


Candidate Selection

Insight


Employment Brand

Sourcing


Candidate Selection

Insight

Candidate Selection

Candidate Centric

Employment Brand

Sourcing


Candidate Selection

Insight Insight

shifting beneath our feet

The world is

real-time economy

Connectivity and immediacy

affecting how we work, how we live and how we think

It’s up to you

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

You & Jobvite are working hard…and it’s working!

42

You & Jobvite are working hard…and it’s 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

to support you We are committed

every step of the way

Employment Brand

Sourcing


Candidate Selection

Insight

Keynote NYC: Rise of the Super Recruiter

Recruiting & HR

Transcript of Keynote NYC: Rise of the Super Recruiter