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The Gathering Storm
Global engineering workforce challenges for the Industrials Market
© 2016 Korn Ferry. All rights reserved 2
Welcome
Yannick Binvel
President, Global Industrials Market
Korn Ferry
Paul Lambert
Senior Client Partner, Industrials Market
Korn Ferry Hay Group
© 2016 Korn Ferry. All rights reserved 3
Welcome to Tomorrow’s Engineering Workforce:A three-part webinar series
Today’s webinar:
Today we’ll cover how to attract, retain and engage the
right engineering workforce now and for the future
Coming up:
30 November: How to select and develop future leaders
whose qualities go beyond technical proficiency to align,
engage and enable the workforce
13 December: What steps can leaders take to bridge the
gap between engineering and project delivery functions
for greater project impact
Click here to sign up
© 2016 Korn Ferry. All rights reserved 4
1 THE GATHERING STORM
2 HOW TO RESPOND TO THE CHALLENGE
3 KEY MESSAGES
4 YOUR QUESTIONS
5 FIND OUT MORE
What we will cover
The Gathering Storm
© 2016 Korn Ferry. All rights reserved 6
Major industrial production and programs rely on a skilled engineering workforce
Automotive(Digital cars,
Global supply chains)
High speed rail(China, Europe)
Maritime(Commercial, Military)
Aerospace(Growth in commercial flights,
Boeing, Airbus)
Airport expansion(London, China, US)
© 2016 Korn Ferry. All rights reserved 7
Key facts
Source: UNESCO report: Engineering: Issues, Challenges and Opportunities for Development; 2010
An additional 2,217,500 employees will be
needed across 10 principal engineering-related
skills areas over the next 5-10 years
(UK Engineering)
UNESCO estimate that some 2.5 million new
engineers and technicians will be needed in sub-
Saharan Africa alone if the region is to achieve
the UN Millennium Development Goal of
improved access to clean water and
sanitation
In many European countries, the demography is
such that the public sector within the next 10-15
years will have to recruit a disproportionately
large number of new engineers because of
retirements
The percentage of students studying engineering
is dropping compared to enrolment in other
disciplines. For example, in Japan, the
Netherlands, Norway and the Republic of Korea,
enrolment decreases of 5% to 10% have
been recorded since the late 1990s
© 2016 Korn Ferry. All rights reserved 8
The Gathering Storm: Engineering workforce risks
We have undertaken surveys and interviews with nearly 200 different leaders across global
industrials. They have highlighted three colliding forces that put the future engineering
workforce at risk:
Booming market – growth
and competition for skills
1
Changing skill requirements
– digital, systems
engineering, commercial,
collaborative leadership
3
Aging, multi-generational
workforce
2
Three critical shifts in thinking
© 2016 Korn Ferry. All rights reserved 10
How do we respond across industrials?What does the research tell us?
Develop a strategic
view of your
engineering workforce
1
Offering a compelling
professional career
journey
3Understand the
engineering leader of
the future
2
© 2016 Korn Ferry. All rights reserved 11
Develop a strategic view of your engineering workforce
50% of leaders expect the engineering
workforce to grow in the next 5 years and
only 11% expect the workforce to decline
Industrials market demand is growing
significantly
The nature of the Industrial market and
required skills continues to change rapidly
Engineering skills have a long lead time –
requiring early planning
Only 23% of organizations have a strategic
workforce plan
32%
18%
27%
23%
0% 5% 10% 15% 20% 25% 30% 35%
Basic manpower planning
Workforce analytics
Business workforce plan
Strategic workforce plan
Current engineering workforce planning practice
“How do you get your head round the size of the challenge?”
HR Director, Global industrials firm
© 2016 Korn Ferry. All rights reserved 12
Client challenge What they did Outcomes
Network Rail (UK national rail
infrastructure company) needs to
deliver a ‘Digital Railway’ in next 10+
years, using mobile and digital
technology
Developing a digital engineering
workforce is vital to the on-time,
quality delivery of this program
Worked together with the Digital
Railway leadership to define a
strategic workforce planning model for
next 15 years
Modeled the effect of different
workforce strategies (recruitment,
development, talent management)
and ways of doing the work to ensure
right workforce to deliver this multi-
billion pound program
Strategic resourcing approach for the
Digital Railway program including:
− Supply chain development
program
− Cross-skilling of existing engineers
to become digital engineers
− Engineering development and
succession program
Case study:Network Rail – Planning tomorrow’s workforce
Business as
Usual
Automation creating an
efficiency of 25% in demand
Automation creating an
efficiency of 50% in demand
Automation creating an
efficiency of 75% in demand
supply
GAP between Supply and
Demand with 25% efficiency
“This scenario modeling of the Digital Railway is essential to successful
program resourcing and achieving the 10-year roll-out target”.
Engineering Director
© 2016 Korn Ferry. All rights reserved 13
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Nu
mb
er
of d
igita
l e
ng
ine
ers
Network Rail case study illustrates powerful, scenario-based strategic workforce planning
Supply
Supply with
digital re-skilling
and recruitment
Demand with full
automation
Planning delivery
– demand
© 2016 Korn Ferry. All rights reserved 14
Engineering leadership is now about a much broader
set of skills than pure technical prowess
Engineering has shifted in many ways:
− Towards collaboration / partnership / joint ventures
− Integrating innovation and digital / automation
− Global / cross-cultural working increasingly the
norm
− Focus on delivering whole systems engineering
solutions and capability to clients
− Market and commercial awareness is important in
decision making
− Need for continuous learning about technological
advance and its impact
Driving a new profile of future engineering leader
Have a view of the future engineering leader
© 2016 Korn Ferry. All rights reserved 15
Engineering leaders will need to be broader, more collaborative, less risk averse, more globally and digitally minded with an ability to operate in situations that are more ambiguous
Identify competences that leaders will need in the future
Assess high potential and current senior leaders against
these profiles
Identify new career paths to gain broader experience
and insight
Provide technical, program and business leadership
career paths
New technical / work skills
KF Mission critical competences for engineering
leaders
Broader, more collaborative leadership profiles
© 2016 Korn Ferry. All rights reserved 16
Client challenge What they did Outcomes
This engineering focused
organization sought our help to grow
their business, even as they shifted
from products to services across their
international customer base
They needed to ensure they had the
engineering leaders to succeed in this
new business climate
Worked with us to define success
profiles for the selection and
development of its engineering
leadership
Evaluated senior people against
these success profiles, using a range
of methods including Leadership
Styles and Organizational Climate
diagnostics
Assessed nearly 1,000 of the
company’s leaders, yielding valuable
insight at individual, team and
business levels, and including
variables such as gender and market
location
Results directly inform how the
business manages its talent, helping it
to achieve the right balance of
engineering and leadership strength
Case study:Global aerospace and defense business – developing future engineering leaders
“We now have a clear process to help us ensure that we have visibility of
the leadership pipeline. This process is amongst the best I have seen in
my experience as a board member.”
Chairman, Global aerospace and defense business
© 2016 Korn Ferry. All rights reserved 17
Offering a compelling professional career journey
Challenge
Losing engineering talent, particularly in early
career stages
Often competing over the same talent
Too small a pool of candidates
Compelling career journey
Build a compelling employment offer and on-going
relationship
Offer a career, not a job, based around quality of
work and opportunity
Offer meaningful reward not just money!
% reporting high difficulty to attract
© 2016 Korn Ferry. All rights reserved 18
Case studies:Maritime engineering and rail transportation
Client challenge What they did Outcomes
Maritime
engineering
Significant shortages of critical
staff, in areas such as
engineering, naval architecture,
supply chain and project
management, were putting
major programs at risk
Data analysis of critical roles –
strategic importance and most
difficult to fill
Identified key elements of a
compelling proposition to
attract, retain and motivate the
different workforce segments
Net benefits of over £10m
identified over first 3 years of
employee proposition
implementation
Attracted required staff for
multi-billion program
Rail
transportation
To effectively allocate project
management and engineering
workforce to program
To develop engineering and
project management skills for
the future demands
Built project management and
engineering detailed
responsibilities and career
paths
Developed online career paths
and guides and career tracking
New framework used as basis
for project resourcing from
2014
Strong, positive feedback and
adoption from the project
management and engineering
community
© 2016 Korn Ferry. All rights reserved 19
Insight Elements of solution(s) Example benefits
Develop a strategic view of your
engineering workforce
For major programmes and core
business
To address ageing workforce risk
Strategic planning of future engineering workforce
Critical role analysis
Strategic workforce plan
Active modeling of retirement risks
Flexible working arrangements
Alumni retirement schemes
Network Rail
Planned delivery of major digitization
program in 10 years rather then 20
US Postal Service
Matching headcount to delivery
requirement with large workforce
savings
Understand the engineering leader of
the future
Building engineering leaders fit for the future
Leadership competence mapping
Engineering leadership career paths
Aerospace / Defense
Significant improvement in ‘climate’
leading to performance improvements
Offering a compelling professional
career journey
Offering a compelling career for diverse set of recruits
Diverse recruitment practices
Compelling employee proposition
Apprenticeship / graduate programs
Engineering and project management career
frameworks
Talent sourcing / identification programs
Maritime engineering
Net benefits of over £10m over first 3
years of employee proposition
implementation
Rail transportation
Career framework used to identify
talent and align to delivery programs
Key messages
Questions?
© 2016 Korn Ferry. All rights reserved 21
Find out more
We have published a set of viewpoints and a research report to go with this series of
webinars. We will send you these reports after each webinar.
Three engineering workforce viewpoints The Gathering Storm research report
15 senior leader
interviews
100+ survey
responses
© 2016 Korn Ferry. All rights reserved 22
Yannick Binvel
President, Global Industrials Market
Korn Ferry
Get in touch
Paul Lambert
Senior Client Partner, Industrials Market
Korn Ferry Hay Group
Please reach out to Yannick or I if you’d like to discuss your own workforce
challenges
Thank you