Multigenerational and diverse talent management for a workforce of the future

Accelerate Cape Town 20 February 2017

Michele DoyleAssociate Director

PwC

Let’s discuss…

Global megatrends

Context from PwC’s CEO Survey, 2017

Multigenerational workforce

Talent Management for a future fit workforce

Transformed organisations: diversity and inclusion in the workplace

Q & A

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PwC

A world underpinned by 5 megatrends

Demographic shiftsThe changing size, distribution and age profile of the world's population

Resource scarcity and climate changeDepleted fossil fuels, extreme weather, rising sea levels and water shortages

Shifts in global economic powerPower shifting between developed and developing countries

Rapid urbanisationSignificant increase in the world’s population moving to live in cities

PwC has identified 5 global megatrends that underpin the business landscape of today and will impact the future of work.

Technological breakthroughsRapid advances in technological innovation

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PwC’s 20th CEO Survey, 2017

PwC

Organisations are waking up to technology and automation

24%

58%

6%

12%

How prepared is your organisation for the role technology/automationwill have in replacing knowledge workers (in addition to physical workers)?

We’re very prepared and ready to embrace technology

We need to prepare for this shift and consider our peoplestrategy

We’re not prepared as it won’t impact my organisation

We have not considered this issue

Source: PwC global survey of 479 HR Leaders, May 2015

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PwC

10%

53%

37%

Where do people want to work? – Three worlds

Blue world

Green world

Orange world

An elite organisation that employs only the best

An organisation whose values match my own

Myself – enjoying the freedom and flexibility to choose

which organisations I work with, and under what conditions

My ideal employer is…

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PwC

Context of work – HR perspective

• Impact of technology in the way we work

• Ageing workforce

• Leadership and succession requirements

• Coaching and mentoring

• Competent and capable officials – proactive and responsive

• Requirements for compliance

• Attracting and retaining best skills

• Managing performance – accountability

• Career paths & development of skills (technical & behavioural)

• HR audits and standards

• Changing the culture of organisations – client centric

HR has a key role to play to enable the transformation through building organisational capabilities that will empower business leaders and government officials to navigate the disruptive nature of transformation (political, social, economic, digital, etc.)

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PwC

Converging trends have created today’s up-to-five-generation workforce:

• People are living longer;

• Older generations not in a financial position to retire;

• Older generations wanting to work until an older age; and

• Older generations financially supporting their “adult” Millennial children

5%

21%

29%

45%

South Africa's Generational Melting Pot (SA Workforce)

Gen Y

Traditionalists

Gen X

Baby Boomers

Source: Statistics South Africa, 2015.

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PwC

Baby Boomers

Baby Boomers

Birth years 1946 - 1964

Current age 50s and 60s

Education A birth right

Value Success

Work Ethic Driven, workaholic

Preferred work

environment

Flat hierarchy, democratic, warm & friendly

Leadership style Participative, accessible

What they want from

work

A loyal employer, the chance to mentor others,

respect

How to motivate them Utilise their experience and suggestions,

leverage their optimism, offer opportunities for

collaboration

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PwC

Generation X

Gen X

Birth years 1965 - 1979

Current age Late 30s to early 50s

Education A way to get there

Value Work/life balance

Work Ethic Balance – work smarter with greater output

Preferred work

environment

Functional, positive, efficient, fast-paced and

flexible

Leadership style Self-directed, hands-off, flexible

What they want from

work

A trustworthy employer, problem-solving

opportunities, competent colleagues,

autonomy

How to motivate

them

Give them credit for their work, assign them

meaningful tasks they can complete

individually

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PwC

Generation Y

Gen Y/ Millennials

Birth years 1980 - 1994

Current age Early 20s to mid 30s

Education An incredible expense

Value Individuality, flexibility

Work Ethic Ambitious, entrepreneurial, done at 5pm.

Preferred work

environment

Collaborative, creative, diverse. Want to work

where and when they like.

Leadership style Cooperative, collaborative, inclusive

What they want from

work

An empathetic employer, meaningful work,

mentorship, flexibility

How to motivate

them

Match them up with inspiring leaders, provide

immediate feedback, especially

reinforcement, let them present their

successes

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PwC

On a lighter note…

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PwC

Where generations collide

• Organisations need to manage more diverse workforces as average population ages increase and ‘working age’ numbers decrease

• At 40 people may now have twice as many working years in front of them as behind them.

• Longer working lives require new thinking about skills and multiple careers.

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PwC

Tips for navigating a multigenerational workplace

• It’s not what you say, but how you say it

• Understand the different generational motives

• Benefit from diverse opinions

• Choose mentors wisely

• Keep an open mind about attitudes

• Adapt your style to the realities of today’s workplace

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PwC

Digital natives (12-33);

• Always on

• Globally connected

• Expect change

• Feel incomplete

without technology

• See new

technologies as

addictiveTraditional consumer

Digital converts

2000 2008 20122004 20242016 2020

100%

50%

Digital Native

Digital Natives are the business

owners and leaders of the future

Percentage of the workforce

34%70%

Customers and employees are increasingly digitally savvy

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PwC

Challenges of a multigenerational workforce

Differences in the values, communication styles and work habits of each generation are becoming increasingly pronounced.

Challenge for leaders: integrating newer workers while still respecting the seniority and experience of older ones.

Communication

Generation Y sends

text messages, tweets

and instant messages.

Baby boomers and

older Gen Xers prefer

phone calls & emails.

01Negative stereotypes

Lazy”, “entitled”, “tech

obsessed”, “stuck in

their ways” – these are a

few generational

stereotypes.

02Work habits:

Changing

technologies and

mobile work trends, a

consequent shift in work

habits.

03

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PwC

Multigenerational workforce

We sit at a unique multigenerational crossroads. Baby Boomers have long been the dominant generation in the workplace, but Millennials are fast taking over.

Source: PwC NextGen. (2013). A Global Generational Study.

Millennials

34%Generation X

29%Baby Boomers

2%Traditionalists

34%Millennials

Today’s generational melting pot (US workforce)

Source: PwC. (2015). Today’s multi-generational workforce.

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PwC

Millennial Expectations

Creating a strong cohesive, team-orientated culture at work and providing opportunities for interesting work are important to their workplace happiness

Millennials have cited training and development —not cash bonuses — as the most important benefit

Don’t believe the excessive work demands are worth the sacrifice to their personal life

Millennials place a greater emphasis on being supported and appreciated

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Source: PwC’s Talent Mobility 2020 report (2010).

PwC

Making the connection sticky

Environment and practices drive the emotional connection

1. Balance and workload• Work/life balance• Impact of the workload• Manageability of the workload2. Engaging work, development

and opportunities• Work that is interesting and

meaningful• Support for professional development• Knowledge and influence about

opportunities3. People and teams• The team• Mentors and supervisors• Friendship at work4. Competitive pay and job

opportunities• Perceived pay equity• Job opportunities at employer vs

elsewhere

• Thriving• Commitment to

employer• Job satisfaction

Emotional connection drives attraction and

retention

Attr

ac

tion

Re

ten

tion

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PwC

Talent Management approach

PwC’s Talent Management framework

• Aligned to the strategic direction of the organisation;

• Provides guidance on what needs to be done to have the right people, with the right skills, in the right positions, at the right time;

• Encompasses the following key components:

o Identifying key positions that contribute to the organisation’s competitive advantage or service ethos;

o Developing a talent pool of high potential and/or high performing individuals to fill these positions; and

o Developing human resource processes and systems to facilitate the alignment of talented individuals, key positions and organisational strategy.

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PwC

Catering for a multigenerational workforce – the value for organisations

Strategies for a

multigenworkforce

Create a flexible work

culture

Fully leverage technology

Increase transparency

around compensation,

rewards & career

decisions

Build a sense of community

Consider introducing or

accelerating opportunities for exposure

Invest time, resources &

energy to listen & stay connected with your

people

One size does not fit all 1

2

3

45

6

7

Source: PwC NextGen. (2013). A Global Generational Study.21

PwC

Key questions for Talent Management –data analytics

• How many are currently in the employ of the organisation? Demographic breakdown per level

• Where were they recruited from? How was this done?

• What are roles/jobs are they performing at the organisation?

• Are those truly the jobs they want to perform at the organisation? – Technical or administrative?

• How long do they stay (shortest, longest, mean) at the organisation?

• Where do they go when leaving the organisation?

• Retention: Are exit candidates more prevalent amongst males or females?

• Are succession plans in place?

• How long would the organization want/need them to stay in its employ?

• What unique selling points of the organisation appeal most to them?

• What unique selling points of the organization appeal least to them?

• How does the organization’s millennial attraction and retention compare to similar entities?

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PwC

Diversity and inclusion – transforming our organisations

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1. Leadership and tone form the top

2. Recruitment Processes

3. Learning and Development

4. Talent Identification

5. Promotions6. Flexibility in Workstyle

7. Reputation and Communication

PwC

Words are not enough…

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Questions for your organisations

What are you doing to make your workforce more diverse and how are you utlising the benefits?

Do you have the talent structures in place to enable a more diverse workforce to thrive?

What is the representation of women and other groups in senior management positions?

How do you deliver visible diversity action and results?

What are you doing to engage new generations inshaping your diversity strategy?

What are you doing to develop objective talent, performance management and career progression systems and definitions?

What are you doing to identify and tackle unconscious bias?

How are you communicating the positive aspects of diversity within your organization and how can you ensure these stand up scrutiny?

How well placed is your organization to find, attract and retain tomorrow’s workforce?

PwC

ENGAGE YOUR LEADERS ON THE FOLLOWING BUSINESS QQ…

1. What forces are changing your business and its markets?

2. What implications do those changes have on your workforce strategy?

3. What skills do you need to achieve your business goals?

4. How can you develop a more data informed, forward-looking and strategically-aligned approach to workforce planning, capable of dealing with the demands of a fast shifting marketplace?

5. How can you broaden access to people with the most competitively prized skills and capabilities, including attracting people who are currently put off or haven’t considered a career in your industry?

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6. What role will automation and AI play in delivering your objectives and what are the implications for your human workforce?

7. What role will contingent labour play in delivering your objectives and how can their contribution be managed in a more proactive and systematic way?

8. How can you manage the differing demands of an increasingly diverse workforce?

9. How can you maximise the operational agility and organisational cohesion of your workforce?

10. How can you ensure that rewards are sustainable and reflect real value creation?

PwC

Transformed organisations: Diversity and inclusion in the workplace

Ownership35% is black ownership in Media 24.Roughly 91 000 shareholders in Welkom Yizani – the biggest broad based BEE share offer in the South African print media industry.

Board50% of Media 24’s board is female.60% of Media 24’s board is black.

Executive Management55% of Media 24’s Management is black.64% of Media 24’s Management is female.

Training and DevelopmentInvested R53m on training in the past year of which 70% was for black employees.Invested R2.2 million in SETA accredited training for independent publishers from rural and semi-rural areas.

Corporate Social InvestmentWeCAN24 is a digital school news platform which aims to create a culture of citizen journalism at high schools.Via Afrika launched four Via Afrika Digital Education Centres (VADECs) in rural areas to equip teachers and learners with digital skills.

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© 2016 PricewaterhouseCoopers LLP. All rights reserved. In this document, “PwC” refers to the UK member firm, and may sometimes refer to the PwC network. Each member firm is a separate legal entity. Please see

www.pwc.com/structure for further details.

Thank you!

Michele DoyleAssociate DirectorMaster HR Practitioner(SABPP)

Telephone +27 (0) 21 529 2532Mobile +27 (0) 82 854 5344

michele.doyle@pwc.com