Quantcast
Subscribe!

 

Enter your email address:

Delivered by FeedBurner

 

E-mail Steve
This form does not yet contain any fields.
    Listen to internet radio with Steve Boese on Blog Talk Radio

    free counters

    Twitter Feed

    Entries in workforce (65)

    Wednesday
    Aug242016

    Have to advise your kid on their college major? Here's some data you may want to review

    Time to dig into some labor market data!

    (Note: all the data referred to in this post can be found courtesy of our pals at the BLS. While their site isn't the easiest to navigate, you can start at the 'Employment, Hours, and Earnings' page to get started with this kind of analyses).

    I had a chat with a friend recently who was sending their child off to his or her, (I can't remember which, does not matter), first year of college this month. In the conversation I faked genuine interest by asking what the child was planning to choose as their major. I think the answer was 'Business' or 'Physics', like I said, I was faking interest at this point, but the entire conversation made me think about just what 'should' the child have chosen, forgetting for now what they are interested in/good at. If the child wanted to make a purely rational, economic decision, what might be the direction to head in terms of college major?

    I confess to not knowing the answer, but a recent piece from the Nieman Lab about trends in employment in selected information industries, (copied below), at least provides one set of data points to (hopefully), better inform these kinds of economic decisions. Take a look at the Nieman Lab chart, (knowing by accessing the BLS data in the link above, you could create similar charts across other or all industry classifications), and then some comments from me after the data.

    The point of the Nieman Lab piece was more or less 'Gee, what a crappy last decade it had been for the newspaper business, and the people working in it', but examining this kind of data a little more broadly can be instructive on a number of levels.  Sometimes this kind of data validates what we think we know or have observed in our own lives - do you know anyone who actually reads a newspaper anymore?

    Other times the data can be a bit surprising too. I personally had no idea that employment in Motion Picture and Video Production had just about doubled since 1990. Are there really that many more films being made? Besides the Sharknado series I mean?

    Back to the original question raised in the post - what should someone making what they hope to be is a rational, economically sound decision choose for their college major? 

    Some topic or subject that maps easily to an industry group we think holds bright employment prospects for the future? 

    I still have no idea I suppose. But at least I would tell them to not plan to work for a newspaper after they graduate. 

    And then I would take a minute to explain what a 'newspaper' is.

    Happy Wednesday. Have fun with the data.

    Thursday
    Aug112016

    Every business is a talent business, retail edition

    Over coffee this morning I caught an interview with Macys CEO Terry Lundgren who was a guest on CNBC discussing the retailer's latest quarterly results, (which were surprisingly positive for a company that like many in the retail industry has been struggling of late).

    During the interview about the positive results and momentum that seem to have buoyed the company in the 2nd quarter of 2016, one of the CNBC reporters questioned Lundgren about the key drivers of this shift and hopeful turnaround in Macys business. Here's the question, (paraphrased a little), and then Lundgren's response, which I found really interesting.

    Reporter: :What is the most important thing you are doing to change the business, is it inventory management, is it physical changes to the stores, or is it the increased investment in digital and e-commerce?"

    Lundgren: "I think the biggest single thing that we did was that we decided to invest in people and putting more people back on the sales floor in advance of the performance of the business. So it was a bet so to speak. In a retail business like ours with so many stores, the biggest expense you have is your salesforce on your floors. So investing millions and millions of dollars back into that part of the business before the business turned around was the biggest bet that we placed in the beginning of the 2nd quarter. That to me, because I am watching what we call our 'Magic Scores', which are our customer service scores every single month now improving and going in the right direction. And I think that investment in people has had the biggest positive impact."

    There is a popular saying, I think that even has been repeated on this blog from time to time, that 'Every company is a tech company', alluding to the fact that transformative and disruptive technology-driven change has redefined business, markets, competition, service delivery, communication, and pretty much everything else. And while I do believe that sentiment is largely true, and the most successful companies will be the ones that can adapt to and exploit new technologies the fastest, we can't ever let the 'talent' part of the popular Culture--Strategy--Talent triangle go wanting.

    Is was surprising and refreshing to hear the CEO of huge organization attribute smart investments in talent as the primary driver of what he and Macys hopes to be a sustained turnaround in business fortunes.

    It's never all about new technology. It's never all about the best business strategy. And it's never all about assembling the best talent. It is all about finding the balance between all three, and knowing, as seems to be the case with Macys, when to shift investments and attention to shore up the side of the triangle that may be lacking, and the one that has the greatest opportunity to impact customers and results. 

    Every business a tech business today. Sure.

    But even if you don't buy that, you have to agree that every business ,truly, at the end of the day, is a talent business.

    Friday
    Aug052016

    Where workforce planning, talent attraction, and facilities strategy meet

    Quick shot for a busy summer Friday, (isn't every Friday now a busy Friday?), and a quick reminder on just how important workforce planning and talent attraction and acquisition challenges are towards making big, hairy organizational decisions like 'Where should we build the factory?' and 'Should corporate HQ be in some massive office park in the suburbs (near the affluent towns where all the C-suite lives), or within the city limits, (where the millennials all want to live?).

    Take a quick Friday or weekend read of this piece from the New York Times titled "Why corporate America is leaving the suburbs for the city' to get a feel of how these dynamics and interplay between HR, talent, culture, and organizational strategy are playing out for companies like McDonald's, Motorola,  and General Electric.

    An excerpt from the piece (and you really should read it all):

    For decades, many of the nation’s biggest companies staked their futures far from the fraying downtowns of aging East Coast and Midwestern cities. One after another, they decamped for sprawling campuses in the suburbs and exurbs.

    Now, corporate America is moving in the other direction.

    In June, McDonald’s joined a long list of companies that are returning to downtown Chicago from suburbs like Oak Brook, Northfield and Schaumburg.

    Later this month, the top executive team at General Electric — whose 70-acre wooded campus in Fairfield, Conn., has embodied the quintessential suburban corporate office park since it opened in 1974 — will move to downtown Boston. When the move is completed in 2018, the renovated red brick warehouses that will form part of G.E.’s new headquarters won’t even have a parking lot, let alone a spot reserved for the chief executive.

    Why are these companies heading back into the central, urban areas that many of them exited for the (literally) greener pastures of the suburban corporate office park back in the last 20 - 30 years?

    Like we do for everything else, it's time to blame the millennials. More from the Times piece:

    The headquarters of Motorola Solutions will start moving to downtown Chicago on Aug. 15, though more workers will stay in suburban Schaumburg than move to the new offices near Union Station. But for the first time in half a century, top executives from the company will again be in downtown Chicago.

    “Where you work really matters,” said Greg Brown, the chief executive of Motorola Solutions. “No disrespect to Schaumburg, but customers and new hires didn’t want to come to the suburbs an hour outside of Chicago. We wanted energy, vibrancy and diversity, and to accelerate a change in our culture by moving downtown.”

    “This was the right thing in terms of strategy,” he said. “Millennials want the access and vibrancy of downtown. When we post jobs downtown, we get four or five times the response.”

    On the surface, it all makes sense, and isn't really all that complex. These companies and others are finding it harder to draw the new, often technical talent they need to some far-flung corporate outpost an hour from the city center whose primary draws are things like 'good schools' and 'ample parking' - things that don't often attract childless, Uber-preferring younger workers.

    But HR folks that have dialed in their workforce planning and talent attraction strategies to help inform the CEO and COO on matters such as these can't simply rest now that they have made the big call to relocate the company HQ back into the city. Eventually these new workers start to get a little older, start to think about wanting the things that make the suburbs attractive in the first place - the schools, the Whole Foods, the 1.2 acre lawn, etc. 

    What happens then? Does the organization head back out to the 'burbs? Do you keep a 'millennial-friendly' presence in the city regardless? Workforce planning has always been important, it is just getting harder I think than it used to be in the past.

    The best HR/talent advisor needs to have a little bit of cultural anthropologist in them I think, to better inform their organization's workforce and talent plans with at least an educated guess on what things outside of work are going to be important to the people that do the work. And where they want to live might be the most important of all.

    Have a great weekend!

    Also, in case you missed it - BIG news from the HR Happy Hour Show this week, read all about it HERE.

    Friday
    Jul292016

    CHART OF THE DAY: Big Trends in Working Age Population

    Super quick hit for a summer let's-get-out-of-here-and-head-to-the-beach Friday where, at least here in the USA, many of us are going to tire of the phrase 'Corn Sweat' (go ahead and Google it).

    Today's chart comes from our pals at the Economist, from a piece titled 'Vanishing Workers'. First the data, then some quick observations from me before you can power down and crack out the sunscreen.

    In a nutshell, this data suggest the working age populations, (15 - 64),  in China, Japan, and Europe are all set to fall (relative to a 2015 baseline), somewhat dramatically in the next few decades, while by the same measure, this group will continue to rise in the US, (albeit at a slower rate than the recent past).

    What happens (in general), when there are relatively fewer available workers, and what might be the implications in the USA where we will be bucking against this trend?

    1. Fewer workers generally lead to rising wages, at least in the near term. And there is plenty of evidence of this already happening in China, where increased competition for workers (especially in manufacturing), has driven up wages for these workers, and made many firms think again and re-evaluate the cost advantages of locating these kind of operations in China.

    2. Falling working age populations impact industries in different ways. With fewer workers, (and an increase in the dependency ratio, the total number of children and elderly divided by the working age population), housing and construction tends to suffer, as there is less demand for new, and larger housing from workers overall. But health care, child care, and related service industries might fare better, with an increased burden of care demanded by larger proportions of kids and older people.

    3. For the US, one of the few industrialized economies that will not see such a fall in working age population over the coming years, the news is pretty positive. Larger proportions of working age folks tend to have a pretty direct and beneficial impact on GDP, output, and overall quality of life. And of course more folks in their prime earning years reduces the overall drag on the economy that can result from a higher dependency ration, all things being equal. There should be less need to raise payroll and corporate tax rates for example, in order to continue to fund things like Medicare and Social Security. The downside risk of course, is that jobs and opportunities for workers have to rise commensurately with this demographic trends, or else you end up with higher than desirable levels of unemployment or under-employment. But balanced against the alternative, potentially not having enough prime age workers to meet demand, (which will send investment elsewhere), it seems the US position to be the more desirable one in the long term. And for my line of work, the HR Tech space, it seems clear that growth and opportunity for HR Tech companies will continue to primarily reside in the USA, as Europe and other countries working age cohorts, (the 'users' of HR Tech), continue to fall.

    Love the data. Love labor market demographics. If that makes me some kind of a geek, so be it.

    Me fretting over me Level in Pokemon GO also makes me a geek, but for a different reason.

    Monday
    May162016

    CHART OF THE DAY: More Americans are Working Longer

    I am a total mark for labor force data and today's Chart of the Day fits the bill perfectly. Check out the below chart on the Employment to Population ratio for Americans aged 65 and up over the last 50 years, and of course some FREE comments from me after the data

    (Chart courtesy of Bloomberg)

    Lots of interesting points we can tease out of this data, so let's go..

    1. Just under 19% of Americans age 65+ are currently in the workforce, according to the BLS. This is the highest percentage of working people in this age cohort since the early 1960s. 

    2. Why are folks in this age cohort working in greater numbers than before? The most commonly cited reason according to a recent study from Transamerica is that they need the income and benefits. The financial crisis, and the tech bubble that busted a few years before that, devastated many baby boomers' retirement savings accounts, and has forced them to work longer than they had originally planned.

    3. The next most commonly cited reason for 65+ folks to remain in the workforce is that, well, they like their jobs and want to remain a part of their organizations. You probably know, or maybe feel this way yourself, that traditional 'retirement' is not at all that appealing. From the same Transamerica survey, 36% of respondents indicated enjoying their work and wanting to stay involved in the workforce was a primary reason to delay or postpone traditional retirement.

    4. Finally, a couple of other trends are factoring in to help drive the employment ratio up for older workers. Some organizations need the experience and expertise of these workers, and would have a difficult time replacing them should they begin to retire in greater numbers. In certain, less exciting industries, these older workers remain essential to the organization, and are being incented to stay in the labor force. And one more thing - folks are just living longer and remaining more productive later in their careers than in the past.

    Add it all up and it seems that these trends suggest that more and more of the workforce will be comprised of older, 65+ workers. Business and HR leaders that want to take best advantage of this situation will make sure they are not ignoring older workers in their recruiting, are willing and able to make necessary adjustments and accommodations as needed, and are actively engaging their older workers in important projects and in mentoring their younger, less experienced workers.

    We are all getting older. It just seems like it is happening all at once.

    Have a great week!