labor strategy session – foundational strategy...1 - 12 12 - - 12 12 48 avg. 42 2 -12 12 -- 36...

The Future of Work:

Will It Be Fueled By Facts?

October 2019

The Future of Work: Will It Be Fueled By Facts?

1

CAT 4 Off the Coast of North Carolina…

3

Economy Strong GDP Growth

Stock Market Doubled in Last 7 Years

Unemployment 3.5-3.7%

I Have Great News.

4

She Looks Terrified!

5

THIS IS ALL BAD NEWS.

“We do not have the ability to hire and retain good or great employees.”

– Everyone in Manufacturing

6

There are over 15 million able-bodied Americans taking some form of government assistance and not participating in the workforce.

7

“We believe employees are every organization’s

most valuable resources.”

REALLY?

8

Negative Engagement

(Killing The Passion In Your Employees)

9

I Am The SmartestPursen Hear!

10

(Only my mother thinks I am brilliant!!)

I Am The SmartestPerson Here!

11

I worked at Indeed.com full-time (Less than a year)

Pros

Benefits, catered lunches, nice building

Cons

I would have gladly traded every free lunch, every free snack, and

every day of unlimited PTO for a genial, approachable team

leader as opposed to the non-genial, wholly unsupportive,

unapproachable, abrasive, snarky boss I had. This jerk could have

written, produced, directed, and starred in Horrible Bosses 1 and

2 (and any other sequels). I understand she is no longer with the

company. Good. I'm sure the office is more pleasant now. Too bad

that she didn't leave before I got there.

__________

13

What If You Don’t Care About Them At All?

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Tech and Consulting Are Finally Catching Up With Google Messaging

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Tech and Consulting Is Finally Catching Up With Google Messaging

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That’s me!

Tech and Consulting Are Finally Catching Up With Google Messaging

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Google Is The Enemy

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What is the starting salary of a software engineer at Google?

I Blame Google (For Everything)

Their mission statement is to provide access to information in a useful format!

Terrible!

Do you really want your employees to have this information?

Let’s take a quiz!

What is the starting wage of your hourly employees?

19

$113,128!

How Do I Know Google Salaries?

The scary thing is that your employees can too, and then they will start asking questions!

Have you checked your ratings and feedback on www.glassdoor.com?

Your employees have access to information in a useful format outside of work (thank you Google). It allows them to “win.”

Can they say the same thing at work? Do you give them access to information in a useful format?

I GOOGLED IT!

20

http://www.glassdoor.com/

Peter Levels: 33 Year-Old Dutch Programmer

• Goal: Allow programmers from around the world to make the best decisions about where they should live and work because they do not need to report into an office.

• Outcome: NomadList

Using Technology to Drive Access and Decision Making

Digital Transformation Is A Real Solution To A Real Problem

NOW BACK TO STUFF THAT RELATES

DIRECTLY TO YOU!

What is “Crunching?”

Not This Kind of Crunching

The Excel We Know Today Will Be Dead In 3 Years

Google Is Giving Us “The Answer”

But what answers are they giving us through “featured snippets?”

Gordon’s response…

“That’s the dumbest bunch of sh** I’ve ever seen”

“Who Are The Worst CEOs of All Time?”

Google listed 11 people, including Gordon Bethune of Continental Airlines, as the worst with no detail regarding criteria.

33

Google Is Giving Us “The Answer”

34

The Internet Will Match You With Your Celebrity Twin

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INSTAGRAM

The Social Media Mess (I Am Guilty)

36

But Who Are We Really??

37

I Have Great News.

“We listened to our critics, thought hard about what we wanted to do, and decided we want to lead,” Amazon’s chief executive, Jeff Bezos, said in a statement.

“We’re excited about this change and encourage our competitors and other large employers to join us.”

New York Times October 2, 2018

40

THIS IS ALL BAD NEWS.

“Yes, Amazon is increasing wages, which will benefit most employees. But

it will no longer give out new stock grants and monthly bonuses. Some

workers believe that means their total compensation will shrink.”

New York Times

October 9, 2018

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Wages: Perception vs. RealityMost people think they are underpaid, but is that true?

42

1. Cash

2. Fringe Benefits

3. Feeling Valued*

4. Work/Life Balance*

5. Decision Rights*

6. Access To Information*

7. Investments in training

8. Time Off

9. Structured mentoring*

10. Equality*

11. Leadership enabled success*

12. Merit based promotions

*Indicates categories that can be cost free

ACCEPTED CURRENCIES

43

1. Cash

2. Fringe Benefits

3. Feeling Valued*


5. Decision Rights*



8. Time Off


10. Equality*




ACCEPTED CURRENCIES

44

1. Feeling Valued*

2. Decision Rights*


4. Time Off

5. Equality*

6. Cash

7. Fringe Benefits







ACCEPTED CURRENCIES

45

The Millennial Mess

46

Some Fun Stuff to Freak You Out

48.8% of 25 year-olds still live at home

Up from 25% in 1999

(so they don’t have to go for the promotion

or work the night shift – necessarily)

47

“All They Want is a 6-Pack and an XBOX”

48

They Have A Lot of Awards

14th

49

By 2020 (NEXT YEAR!):

48,000,000 people will be retired

Is This Really True?????

─ That’s 6x the population of NYC

50

All preretirees Affluent Nonaffluent Men Women

Projected Income Income Gap

$70,000

$60,000

$40,000

$30,000

$20,000

$10,000

$0

$50,000

The gap between baby boomer’s savings and desired annual retirement income

Only 18% of all private industry employees have a defined benefit plan for retirement

Source: BlackRock | WSJ.com

The Boomers Savings Rate: A Very Unpleasant Surprise

51

Can you hire and retain great employees?

Question:

Millennials May Be the Solution, Not the Problem

52

Percent married at age 18-32, by generation:

Source: Data from 1980, 1997 and 2013 are from the March Current Population Survey, 1960 data are from the 1960 Census PEW RESEARCH CENTER

MILLENNIAL 2013 26%

GEN X 1997 36%

BOOMER 1980 48%

SILENT 1960 65%

The Decline in Marriage Among the Young

53

The Big Pay Cut

Millennials now earn $10,000 less than Boomers did in 1989,

which is around 20 percent less after adjusting for inflation.

Bachelor’s Degrees For Population Ages 25-29:In 1985: 26%In 2016: 40%

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MILLENNIAL 32% 53% 14%

GEN X 38% 30% 30%

BOOMER 45% 15% 38%

SILENT 2%54% 40%

It is all going to work out so no need to panic!

Percent saying they….

…to lead the kind of life they want

• Earn/have enough now• Don’t earn/have enough now, will in future• Don’t earn/have enough now, won’t in future

Note: Based on all adults regardless of employment status, N=1,821. Those who are employed were asked if they currently or will “earn enough money” and those who are not employed were asked if

they currently or will “have enough income.” Don’t know/Refused” responses not shown.

Source: Pew Research survey, PEW RESEARCH CENTER

Millennials Upbeat About Their Financial Future

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The Simple Story

Enable the Employee for Success

Engage the Employee

22% greater productivity

Have you enabled your employees to be successful?

A Harvard Business Review Study Found That Organizations with Highly Engaged

Employees Experience

56

Some Places To Start

57

25

1 1

39

55

45 43

55

77

3

0

10

20

30

40

50

60

70

80

90

Sun Mon Tue Wed Thu Fri Sat

Sum of Sick Excused Sum of Sick Unexcused

AT LEAST 40% MORE

THAN ANY OTHER

DAY

Employees Get Sick More Often on Fridays

58

1819

12

8

109

15

21

24

19

10

12

0

5

10

15

20

25

30

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

NU

MB

ER

OF S

ICK

DA

YS

Sick Days Average

SEPTEMBER IS 63% HIGHER

THAN THE AVERAGE

September is the Least Healthy Month

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8-Hour Shifts: 5 Day Coverage

Crew/

WeekTotalsSunSatFriThuWedTueMon

1 1--88888

40Avg.

Work Days 260

Days Off 104

Weekends Off (Full) 52

Longest Break 2 days (52x)

Max. Number of Shifts in a Row 5

120-40, Balanced, 1 X 3 Crew, 8-Hour, Fixed, Fixed, Every Weekend Off

60

Crew/


1 36----121212

40Avg.

--121212--2 36

--1212-12123 48

Work Days 173

Days Off 191





120-40, Balanced, 3 X 2 Crew, 12-Hour, Fixed, Rotating, Long Weekend

61

Crew/


1 48888888-

42Avg.

8888--82 40

88--8883 40

--888884 40

Work Days 273

Days Off 91





168-42, Balanced, 4 X 3 Crew, 8-Hour, Fixed, Rotating Model

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Crew/


1 481212--1212-

42Avg.

--1212--122 36

Work Days 182

Days Off 182





168-42, Balanced, 2 X 2 Crew, 12-Hour, Fixed, Rotating EOWO

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Narrow options to choices that meet both business needs and employee preference

Heavy employee interaction and input

Documented course correction based on employee feedback

Buy-in achieved through combination of participation and benchmark results

Great Ideas Are Worth $0 Unless You Can Implement…

64

In the Past 12 Months Have You Ever Considered Getting Out of Your Current Schedule?

71%

22%

3% 3%

58%

27%

8% 7%

0%

10%

20%

30%

40%

50%

60%

70%

80%

No Yes, to get a

better work schedule

Yes, to get

better work on the job

Yes, to get better pay

PER

CEN

TA

GE O

F R

ES

PO

ND

EN

TS

Client Normative Database

65

Job Satisfaction

32.9%

40.4%

11.4%

5.0%6.8%

3.6%

40.3%

33.5%

11.2%

5.8%4.1%

5.1%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Very satisfied Moderately

satisfied

Slightly satisfied Slightly

dissatisfied

Moderately

dissatisfied

Very dissatisfied

PER

CEN

TA

GE O

F R

ES

PO

ND

EN

TS


66

Compared to Other Companies, XXXX is:

13.0%

46.8%

25.2%

13.0%

2.2%

23.8%

41.3%

23.3%

9.0%

2.5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Excellent place to

work

Better than most About the same Somewhat worse Worst company in

the area

PER

CEN

TA

GE O

F R

ES

PO

ND

EN

TS


67

PERCENTAGE ANSWERED YES CLIENTNORMATIVE DATABASE

Compared to other companies, working conditions at XXXX are good.

76% 80%

I really feel I am a part of XXXX. 47% 57%

I really feel I am part of my crew/team at XXXX.

70% 79%

The management team at XXXX really cares about its employees.

22% 39%

The management team communicates well with the shift workers at XXXX.

16% 33%

Survey

68

Scheduled Time Off

63.4%

55.8% 54.7% 54.4%

78.4%

58.6%

52.4%

46.7% 45.6% 47.4%

52.1%

60.0%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Enough time off Quality time off Fits in with your

family/social life

Flexible schedule Predictable

schedule

Effective training

PER

CEN

TA

GE O

F R

ES

PO

ND

EN

TS


69

Hidden Costs of Current Labor Strategies in Manufacturing

1. High overtime

2. Maintenance strategy needs

improvement

3. Inability to staff efficiently for

seasonal, monthly, weekly or

daily demand

4. No full time/part time/temporary

employee strategy

5. Uneven skills across shifts

6. Idle labor time (overall or pockets)

7. Hard to recruit and retain good

employees

8. Outdated HR policies

9. Past changes have not achieved

long term results

10. Consolidation or blending opportunities

11. Not maximizing current capital

12. Inefficient and/or numerous

startups and shutdowns

13. Poor forecasting tools

14. Not meeting productivity potential/goals

15. High level of unplanned absences

16. Continued/Increasing health and safety

problems

17. Hourly employees have morale issues

18. Us vs. Them employee/management

mindset

19. Problems communicating to evening and

night shifts

20. Inefficient vacation, lunch or break

staffing

21. Green Room time underutilized –

shift change inefficiencies

22. Sanitation Strategy Not Optimal

70

QUESTIONS.

71

labor strategy session – foundational strategy...1 - 12 12 - - 12 12 48 avg. 42 2 -12 12 -- 36...

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