mckinsey social initiative - world bankseejobsgateway.worldbank.org/sites/job_gateway/files/skills...

MCKINSEY SOCIAL INITIATIVEMCKINSEY SOCIAL INITIATIVE

MCKINSEY SOCIAL INITIATIVE 2

Generation seeks to close the skills gap for young people and ease skill

challenges for employers.

MCKINSEY SOCIAL INITIATIVE

We are developing a program to place disconnected young adults in jobs, giving them the skills and support they need to achieve lifelong personal

and professional success—and fundamentally change their life trajectories.

We are also giving employers an improved source of entry-level talent -operating at peak productivity/quality level from their first day on the job

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GENERATION PROGRAM OVERVIEW


Supply Demand

75 million young people unemployed globally, and 3x as many underemployed

40% of employers say a skills shortage is driving entry-level vacancies

It is a two-sidedproblem:


The paradox of global youth unemployment

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Generation is built upon deep research into the best ways to address youth unemployment


• McKinsey & Company study of 150 employment programs in 25 countries, and surveys of over 15,000 employers, educators, and young people

• Education to Employment: Designing a System that Works report summarizes findings

• Independent nonprofit McKinsey Social Initiative (MSI) founded by McKinsey & Company

• Youth unemployment chosen as first issue for MSI: Generation is born.

• Generation launches pilots in five countries (India, Kenya, Mexico, Spain, and US), with plans to rapidly expand

2013 TODAY2014



Generation addresses two areas of need for the youth employment field

6MCKINSEY SOCIAL INITIATIVE


Generation’s goals are ambitious

young people trained and placed into promising careers

countries

years

methodology to enable others to expand the impact to millions more youth around the world


7MCKINSEY SOCIAL INITIATIVE

The Generation approach has seven components

A community that follows graduates into

the workplace

8-12 weeks of technical, behavioral, mindset & professional presence skill training

Social support services & mentorship along the way

1

3

4

5

Jobs & direct employer engagement from the start

2 Recruit students based on intrinsics, effort, and employment standards for the profession


Return on investment

for employers, students, and

society

6


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7Data at the center


Our initial focus is four growth sectors that account for a high proportion of entry level jobs

Healthcare Retail/sales Information Technology Skilled Trades

USA Spain India KenyaMexico

▪ Certified nursing assistant▪ Personal care aide

▪ Customer service▪ Cashiers▪ Pharmacy technicians▪ Door-to-door sales

▪ Web developer▪ Digital marketer▪ Help Desk technician

▪ Through hole operators

▪ Welders

Generation’s approach works in any middle-skill profession in any city in any part of the world.



We are live in ten cities in our first year of operation

BarcelonaDelhi

MadridMexico City

Miami

NairobiPittsburgh

San FranciscoSan Jose

Wilmington



Generation Kenya has placed ~500 youth in jobs in our first year


65%Graduates

with 2 offers1

490Graduates

8Cohorts

100%Graduates with offers

100%Supervisors who want to hire again

10Employer partners

75%Graduates with KCSEC or below

GENERATION IMPACT TO DATE

Sales roles for banks and insurance companies

MCKINSEY SOCIAL INITIATIVE11

Examples of our on-the-job impact to date in Kenya

VS. Generation hiresNon-Generation hires

Interview hit ratio

• 95% of our graduates have either a high school or less than university degree (e.g., certificate or diploma)

• Banks hired ~65% of our grads that they interviewed

• Banks typically only interview university graduates and make offers to 10%

Job readiness • One large bank currently has a three month probation period

• The same bank now only wants to hire GenK grads and shorten its probation period to one month

Diversity • 55% of our placed graduates are female

• 29% across all formal jobs are female

Retention • Attrition rate of 4% at end of Month 1 and 12% after Month 3

• A 35% attrition rate at employers by the end of Month 3, reaching up to 50%




Current employer partners perspectives on Generation graduates

“They can sell anything, very bold and well presented”

“The girls especially are excellent -they have what it takes!”

“Good job on the candidates, we want to

take them all”

“Whatever you guys are doing - it

is working”

“Generation hires hit the ground running faster than

non-Generation hires”

“Our recruitment used to be so difficult but this is wonderful- we're taking all of

them- there is very little more they need”

“The attitude of Generation hires is very different from the rest. They are very

positive and are ready to do the work”


Examples of our impact to date: India


Hospital employer partners▪ Flagship facility at Saket, New Delhi ▪ 1900 beds in11 hospitals▪ Third largest chain in India

▪ Biggest hospital in Gurgaon with 1,250 beds

▪ JCI accredited

▪ 300 bedded new hospital located at Saket

▪ Part of prestigious Spice group

▪ 350 bed multi-specialty hospital located▪ First JCI and NABH accredited hospital

in Gurgaon

▪ Flagship facility of Apollo group with 700 beds

▪ First hospital in India to be accredited by JCI

Generation India has placed two cohorts (~85 youth) into nurse assistant roles

Nurse supervisors report several benefits:

80%

90%

Saved nursetime (30-60 minutes per shift)

Improvedquality

80% of nurse supervisors say they want to hire more Generation grads

New employers are signing up to pay 30% of recruitment and training costs as of Q1 2016


Over 600 of our students are female (53% of total) in 2015, well above industry standard

1 2013 American Community Survey; 2014 Bureau of Labor Statistics; Girls In Tech (Spain, 2015); Foundation for Sustainable Development (Kenya); Times of India (2012); Women Matter: A Latin American Perspective (McKinsey, 2013)

Gender balance of Generation programs vs. industry standard% women

Program

86%

54%

36%

52%

71%

36%

33%

59%

47%

Students

89%

48%

29% (all formal jobs)

75-80%

48%

Industry standard1

US: CNA

US: Retail

ES: Mobile

KE: Fin. sales

IN: GDA

MX: Retail

ES: Web Dev.

ES: Digital mktg

ES: Data analyst

20%

▪ Generation programs have achieved a gender balance vs. industry norms

▪ Differential vs. industry standard is greater for roles that are typically male dominated (e.g., digital jobs in Spain) than those with a bias towards women (e.g., CNA and GDA)



We have created unique data tools and student tracking processes to bring analytical rigor to our work


Track critical KPIs across the student/graduate journey

Analyze leading indicators of success to predict performance

Validate elements of the Generation model

▪ Student recruitment▪ Attendance and in-class

performance ▪ Placement in jobs▪ Graduate performance on the

job vs control (e.g. retention, productivity/quality outcomes)

▪ Counter-intuitive success factors

▪ Link between in-class and on-the-job success

▪ Effectiveness of recruiting channels and assessments

▪ Reach into youth most in need and likely to benefit

MCKINSEY SOCIAL INITIATIVE 16* representative sample

Fixing youth unemployment will take all of us, so we work with a growing, global partner coalition

Funders Employers*

Implementers

GENERATION PARTNERS


FINANCIAL AND SOCIAL INDICATORS

Generation is delivering three types of impact, and working with Gallup to execute a long-term research agenda

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Program impact on participants

Impact of Generation program variations

Return on investment for employers

We plan to launch random control trials in Q3 2016, in partnership

with Gallup, to rigorously assess the

impact of our interventions. We are committed to tracking

our youth for 15+ years▪ Cost effectiveness of different interventions

▪ Immediate job success (e.g., finding and sustaining a job)

▪ Financial impact▪ Physical & mental well being▪ Long term career path

▪ Lower training and recruiting costs

▪ Higher productivity and quality▪ Lower turnover, abseentism,

and tardiness


FINANCIAL AND SOCIAL INDICATORS

We are building an innovative funding model to reach self-sustainability

Financial and in-kind support to prove the Generation model and ROI (2015)

100% self-financing approach with employers, students, and governments sharing full operating cost (2017 onwards)

Transition to innovative cost sharing with employers and students (2016)

Phase 1

Catalyticphilanthropy

Phase 2

Shared Cost

Phase 3

Self-sustainability

1919Generation is the first program of the McKinsey Social Initiative, a non-profit that focuses McKinsey’s problem-solving expertise on the world’s most complex social challenges.

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mckinsey social initiative - world bankseejobsgateway.worldbank.org/sites/job_gateway/files/skills...

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