tomorrow's workforce

“Strategic workforce planning helps

organisations understand the talent

required to deliver their strategy – without

it, the costs are significant”

“A talented and aligned workforce is

crucial for bringing strategy to life and

ensuring an organisation delivers on its

objectives.”

INTRODUCTIONDirect people costs make up an average of 40% of

organisational costs.

Almost half the workforce are in complex,

knowledge-intensive roles which are crucial for

success.

The cost of getting workforce planning wrong can

be significant.

WORKFORCE TRENDS

“Many industries face critical shortages of essential

talent, while others struggle to define the shape of the

workforce they need in the midst of major and rapid

change.”

The trends that have a great impact on the shape of workforce are:

Ageing

Skills and qualification gap

Higher costs and scarce skills

Changing career patterns

GETTING IT RIGHT

“A company’s employees are its greatest

asset and your people are your product”- Sir Richard Branson, Chief Executive and Founder Virgin Group

THE ‘five rights’

Right Size

Right Shape

Right Place

Right skills

Right Cost

RIGHT SIZE

• Does your organisation translate changes made to ways of operating to the workforce size and in turn required skills?

• When defining the size of the future organisation, does your company plan for different economic scenarios for long term needs?

• Does your organisation optimise the mix between in-house expertise and contractors?

• Are the right people spending the right amount of time achieving required outcomes?

RIGHT SHAPE• To establish the right organisational shape, does your

organisation regularly review areas of duplication and inefficiency?

• Are frontline roles given accountability in defining and organising safe ways of working, now and in the future?

• Is your organisation able to balance between what is done centrally and what is done on an asset / business unit or geographical basis?

• ƒ Does the organisational culture align with organisational values and support the strategy?

RIGHT PLACE

• Does your organisation model match the required staff to future needs and locations?

• ƒDoes your organisation consider the people requirement ahead of planning new projects?

• Does your organisation’s planning for future location and design factor in the ability to attract and retain local resourcing and skills?

• Does your organisation rely on local expertise versus expatriate or contractor expertise?

• Does your organisation understand the gaps in the competencies and skills that will be needed to meet future goals?

• Does your organisation have succession planning and development frameworks in place for the critical roles that will be required in the future?

• ƒ Does your organisation communicate behavioural expectations from its senior leaders?

• Have you identified the mission critical roles and skills that you need to focus on for future workforce planning?

RIGHT SKILLS

RIGHT COST• Are key skills and personnel hired in a cost effective

manner?

• Does your organisation reward the right behaviours and ensure that key drivers of performance are effectively rewarded?

• Is pay and reward benchmarked to pay the right price for required skills?

• Does your organisation get maximum benefit and output from the cost of employment?

OIL AND GAS SECTORTotal employment forecast is to increase by 22% over the next two years.

• Most growth in employment has been for direct employees, rather than

contractors. This pattern is expected to continue.

• The survey results show that businesses have been expanding

employment in engineering; quality, health, safety and environment;

support/central services and technical staff.

• In the future, demand for staff is expected to be fuelled by an on-going

increase in demand for engineering, support/central services staff

alongside technical and marine staff.

• 33% of businesses in the upstream oil and gas sector have hard-to-fill

roles.

• The demand for direct employees will grow by approximately 9%

while demand for contractors/agency staff is expected to shrink by

3% over the next two years

FINANCE SECTOR

• One of the primary questions for employers in the finance and

insurance sector concerns the means to access, motivate, and retain

key talent.

• The Talent Management Study found that 41% of the finance and

insurance organizations reported that workplace flexibility

somewhat/significantly increases business effectiveness.

• In comparison to employers in other sectors, finance and insurance

organizations reported greater assessment of employees’ career

plans and work preferences, projection of retirement rates, and

development of succession plans.

• 10% of the employees in this sector, insurance sales agents and loan

officers account for equal to 5% shares, and (i) securities,

commodities, and financial services sales agents and (ii) accountants

and auditors account for a combined 6% in the total number of

employees.

ENERGY SECTOR

• Demand for almost 3 million workers by 2020, up from 1.7 million in

2013.

• 25% of the existing workforce to retire.

• Trained employees to become ‘hot commodities’ in the tight labour

market.

• New forms of energy production and new regulatory frameworks are

driving the need for joint ventures and new skills.

TELECOMMUNICATION SECTOR

• The majority of the workforce (58 %) is employed in large enterprises ,

with 21% employed in small-sized enterprises.

• The industry workforce has a relatively young age profile, with 69% of

workers aged under 45 years compared to 62 per cent for all other

industries.

• Demand for efficient employees will increase as need for providing

competitive service by assuring prompt service increases.

• Demand for engineers to increase as competition increases with 4G

coming into play.

• With customer service gaining more and more importance demand for

good communicators to increase.

• Retention of key talent to gain importance.

• Skilled and experienced workers to gain the bargaining power.

ENGINEERING BASED

INDUSTRIES• With India producing large numbers of engineers every year, abundance

of engineers is observed.

• Sorting out talented engineers from the pool and retaining them is

becoming a challenge.

• Talented engineers are rapidly gaining the bargaining power and striving

to get into the management.

• With introduction of new technologies need for Gen Y into

manufacturing is increasing.

• Unionized labour to decrease.

• Diversity in labour expected to increase.

• Presence of women in manufacturing unit to remain unchanged.

HEALTH CARE AND LIFE

SCIENCES“Today the health sector faces a daunting new digital challenge:

unleashing the power of technology to fundamentally reinvent how

care is delivered. In the New Health Economy, digitally enabled care is

no longer a nice-to-have, but rather a fundamental business

imperative.”

-Susan Turney, M.D., chief executive officer at Marshfield Health

System in Wisconsin.

• To follow customer focused approach with the requirement of

employees with emotional stability and intelligence.

• Demand for speciality medical practitioners to increase.

• Demand for talented and innovative R&D personnel to increase with

research on cancer treatment gaining ground.

• Demand for employees with medical as well as technological expertise

to increase by 10% by 2020.

CONSUMER GOODS

• With online retail gaining popularity, demand for IT personnel to

increase.

• With the increasing popularity of retail marts the demand for

approachable personnel with sound technological knowledge is

expected to increase.

• Demand for trainers to increase.

DELIVERING TOMORROW’S

WORKFORCE

STRATEGIC INTENT

MISSION, VISION, VALUES

STRATEGIC PLAN

OBJECTIVES

STRATEGIC CAPABILITIES

THE OPERATING MODEL

BENCHMARKING

INTERNATIONAL BEST PRACTICES

ORGANISATION BEST FIT

SPANS OF CONTROL

INTERNAL PRODUCTIVITY INDICES

WORKFORCE ANALYSIS

RIGHT SIZE

OIL AND

GAS

FINANCE ENERGY TELECOM ENGG HEALTH

CARE

CONSUM-

ER GOODS

+22%

increase

in

demand

for

skilled

labour.

Expected

to

increase

+1.3%

(Gen Y to

enter in

large

numbers)

Demand

for Gen Y

to

increase

Diversific-

ation to

increase

and

decrease

in

bargainin

g power

of labour.

Demand

for tech

savvy

professi

onals to

increase

.

Demand

for

customer

focused

personnel

to increase

and focus

to be

shifted

from

quantity to

quality.

RIGHT SHAPE

OIL AND

GAS


CARE

CONSUM-

ER GOODS

Full time

workers

preferre

d over

outsourc

ed

workers.

Workforc

e in next

10-15

years

will

become

the

ageing

group.

Successio

n

planning

to gain

popularit

y.

High

performa

nce teams

becomes

the need

of the

hour.

Gen Y to

climb to

managem

ent level

with

highly

diverse

workforce

.

Aging

workfor

ce with

early

retirem

ent.

Restrict

ed

supply

of

external

workers.

Gen Y to

be

preferred

at senior

as well as

junior

levels.

RIGHT PLACE

OIL AND

GAS


CARE

CONSUM-

ER GOODS

Internshi

ps and

college

recruitm

ent

campaig

ns

Consulta

ncy,

fresh

graduate

s, head

hunting

College

recruitm

ent,

social

media,

internshi

ps, local

advertise

ments

Fresh

graduates

, social

media,

employee

exchange

Consultan

cy firms,

internship

s, Engg

colleges,

ITI

programs

Internsh

ip and

apprenti

ceship

program

s.

Walk-ins,

Social

media,

Consultanc

y firms

RIGHT SKILLS

OIL AND

GAS


CARE

CONSUM-

ER GOODS

Engg,

Quality,

safety,

IT skills Experien

ce

Engg,

Innovatio

n

Innovatio

n

IT Skills Customer

focused

RIGHT COST

OIL AND

GAS


CARE

CONSUM-

ER GOODS

Increase

d by

nearly

30% over

the past

10 years

Bonus

expectan

cy

increase

d (74%)

41% to

receive

salary

increase.

67%

expect

their

salaries to

increase

substantia

lly in the

next 12

years.

Increased

by 47%.

Increase

by 25-

30%.

Increase

by 42%..

RECOMMENDATIONS AND SOLUTIONS

OIL AND

GAS


CARE

CONSUM-

ER GOODS

Develop,

Re-

deploy

Develop Recruit,

Develop

Outsource

Re-deploy

Develop,

Reduce

Develop Reduce

IMPLEMENTATION

Workforce Plans

Interventions

Development Plans

Resourcing

Leadership Programmes

Succession Planning

Career Development

WOMEN IN THE WORKFORCE

• Women made up 37.97% of the labour force in 1970 compared to 47.21%

between 2006 and 2010 (Census Bureau).

• Vastly unrepresented in leadership roles.

• Companies to adopt women leadership in coming years.

“Bringing together the right information

with the right people will dramatically

improve a company’s ability to develop

and act on strategic business

opportunities.”

-Bill Gates, former chief executive and current chairman of Microsoft

tomorrow's workforce

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