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Thoughts on Leadership in Today's US Labor Market

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Thoughts on Leadership in Today's US Labor Market Carlyle Proprietary & Confidential R-0 R-85 G-101 G-67 B-179 B-113 R-0 R-118 G-161 G-92 B-224 B-150 R-145 R-163 G-213 G-143 B-242 B-187 R-189 R-154 G-230 G-155 B-247 Thoughts on Leadership in Today’s US Labor Market B-156 Implications for Talent Management & Retention R-43 G-131 R-219 B-35 G-217 B-217 R-61 White G-175 March 2019 R-255 B-46 G-255 B-255 Colors Text R-145 Dark Blue G-229 R-0 B-0 G-74 B-136 R-156 Blue G-226 R-0 B-146 G-161 B-224 Carlyle Proprietary & Confidential R-0 R-85 G-101 G-67 B-179 US Unemployment Effectively Below Full Employment Rate (NAIRU) B-113 R-0 But, over 100M Americans are not working … R-118 G-161 G-92 B-224 US Unemployment & Labor Force Participation B-150 R-145 R-163 G-213 G-143 B-242 B-187 R-189 R-154 G-230 G-155 B-247 B-156 R-43 G-131 R-219 B-35 G-217 B-217 R-61 White G-175 R-255 B-46 G-255 B-255 Colors Text R-145 Dark Blue G-229 R-0 B-0 G-74 B-136 R-156 Blue G-226 Source: US BLS December Employment Situation Report 01/04/19; St Louis Fed, seasonally adjusted. R-0 B-146 2 G-161 B-224 Carlyle Proprietary & Confidential R-0 R-85 G-101 G-67 B-179 Fewer Options To Consider From The Available Labor Force B-113 R-0 …with number of unemployed individuals per job opening at its lowest since 2000 R-118 G-161 G-92 B-224 B-150 Number of Unemployed Persons per Job Opening R-145 R-163 G-213 G-143 B-242 B-187 R-189 R-154 G-230 G-155 B-247 B-156 R-43 G-131 R-219 B-35 G-217 B-217 R-61 White G-175 R-255 B-46 G-255 B-255 Colors Text R-145 Dark Blue G-229 R-0 B-0 G-74 B-136 R-156 Blue G-226 BLS, Current Employment Statistics & Job Openings & Labor Turnover Survey for December 2018, dtd 2/12/2019 R-0 B-146 3 G-161 B-224 Carlyle Proprietary & Confidential R-0 R-85 G-101 G-67 B-179 Fewer Options To Consider From The Available Labor Force - Continued B-113 R-0 … and since early 2014, Growth in Job Openings is outpacing Employment R-118 G-161 G-92 B-224 Job Openings, Hires, & Quits B-150 R-145 R-163 G-213 G-143 B-242 B-187 R-189 R-154 G-230 G-155 B-247 B-156 R-43 G-131 R-219 B-35 G-217 B-217 R-61 White G-175 R-255 B-46 G-255 B-255 Colors Text R-145 Dark Blue G-229 R-0 B-0 G-74 B-136 R-156 Blue G-226 BLS, Current Employment Statistics & Job Openings & Labor Turnover Survey for December 2018, dtd 2/12/2019 R-0 B-146 4 G-161 B-224 R-0 R-85 G-101 G-67 B-179 State of the American Workplace – Overall Employee Engagement B-113 R-0 In addition to the challenges finding talent, employers are becoming increasingly R-118 G-161 aware of high employee expectations regarding engagement G-92 B-224 B-150 R-145 R-163 G-213 G-143 B-242 51% B-187 Of US employees are actively R-189 looking for a new job or watching for R-154 G-230 openings G-155 B-247 30% 30% B-156 Of US employees strongly Of US employees strongly R-43 agree they have received agree their fellow workers G-131 positive employer R-219 are committed to doing B-35 reinforcement in the past six G-217 quality work months B-217 R-61 White G-175 R-255 B-46 G-255 • 22% of US employees strongly agree their leadership has B-255 clear direction for their org Colors Text R-145 • 15% of US employees strongly agree their leadership Dark Blue G-229 makes them enthusiastic about the future R-0 B-0 • 13% of US employees strong agree their leadership G-74 effective communicates with the rest of their organization B-136 R-156 Blue G-226 R-0 B-146 G-161 Feb 2017, survey from over 195,600 U.S. employees, plus Q12 database with 31million respondents B-224 R-0 R-85 G-101 G-67 B-179 Employee Engagement - Continued B-113 R-0 Recent BLS data supports this “disengagement” trend as well R-118 G-161 G-92 B-224 B-150 Layoffs & Discharges vs. Quits R-145 R-163 G-213 • Layoffs and G-143 B-242 discharges have B-187 R-189 remained relatively R-154 G-230 static over the past G-155 B-247 10 years … B-156 R-43 G-131 R-219 B-35 • …while “Quits” G-217 have more than B-217 R-61 doubled since White G-175 R-255 B-46 2011 G-255 B-255 Colors Text R-145 Dark Blue G-229 R-0 B-0 G-74 B-136 R-156 Blue G-226 BLS, Current Employment Statistics & Job Openings & Labor Turnover Survey for December 2018, dtd 2/12/2019 R-0 B-146 6 G-161 B-224 Carlyle Proprietary & Confidential R-0 R-85 G-101 G-67 B-179 Sector Perspective: Specific Labor Challenges B-113 R-0 The skills required for Information Technology (IT) jobs are some of the most difficult R-118 G-161 to recruit and retain in today’s employment marketplace G-92 B-224 B-150 • Behind skilled trades, IT skills are the R-145 R-163 G-213 second most difficult* to find and retain G-143 B-242 B-187 • Business intelligence / Analytics, process R-189 automation, and Cyber Security R-154 G-230 requirements are driving increased G-155 B-247 demand, but slack labor does not exist in IT B-156 R-43 sector G-131 • Thus, IT employment lags & wages R-219 B-35 G-217 B-217 skyrocketEmployment WaGes JOLT Quits 2013 2018 2013 2018 2018 2018 R-61 White G-175 Total (million) 144.7 156.9 $24.17 $27.48 7.34 3.48 R-255 B-46 CAGR% 2.1% 3.2% 47.4% G-255 B-255 Colors Text R-145 U3 6.29 Dark Blue G-229 U/Open 0.86 R-0 B-0 G-74 B-136 IT (million) 2.68 2.76 $33.43 $41.02 0.129 0.055 R-156 CAGR% 0.7% 5.2% 42.6% Blue G-226 R-0 B-146 7 G-161 *2016-2017 Manpower Group Talent Shortage Survey B-224 R-0 R-85 G-101 G-67 B-179 State of the American Workplace –The Costs of Churn B-113 R-0 Wages, benefits, training, development and retention costs combine to make the R-118 G-161 total cost of churn a significant concern G-92 B-224 B-150 Costs of Churn R-145 R-163 G-213 G-143 B-242 Employee B-187 Recruiting Most Companies cannot Stays grow, without more R-189 R-154 G-230 Labor… G-155 B-247 Training / B-156 onboarding Big R-43 Decisio G-131 R-219 n G-217 B-35 Lost Wages & B-217 Productivity Benefits R-61 …but 35% of employees* White G-175 R-255 B-46 have changed jobs within G-255 Employee Replacement B-255 Retention Colors Text the last three years… Goes Cost R-145 Programs Dark Blue G-229 R-0 B-0 G-74 B-136 . .and 91% of Millennials don’t plan to stay at a job for more than 3 years** R-156 Blue *Source: Gallup State of the American Workplace, 2017, p.24 R-0 G-226 **Source: Forbes, Job Hopping is the New Normal for Millennials, 8/14/12 B-146 G-161 B-224 Carlyle Proprietary & Confidential R-0 R-85 G-101 G-67 B-179 Approaches To Address Labor Market Dynamics B-113 R-0 Faced with a tight labor market, where competition for talent is fierce, R-118 G-161 companies can consider a range of solutions to attract and retain workers G-92 B-224 B-150 R-145 R-163 G-213 Training, G-143 B-242 To support retention of the staff you have B-187 Development & on-board and recruit into your company R-189 Mentorship R-154 G-230 G-155 B-247 B-156 Networks of To drive engagement and effectiveness of R-43 G-131 Teams resources and expertise across silos R-219 B-35 G-217 B-217 To open alternative avenues for securing needed R-61 The “Gig” White G-175 expertise, capabilities and knowledge (outside R-255 B-46 Economy G-255 the traditional employee approach) B-255 Colors Text R-145 Dark Blue G-229 R-0 B-0 G-74 B-136 . and more effective leadership . R-156 Blue G-226 R-0 B-146 9 G-161 B-224 Building High Performance Teams: Heartbeat Leaders First Joseph C.
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