Presentation Transcript

1. “Regional Workforce Trends and the CRE” London • New York • São Paulo • Chicago • San Francisco • Denver • Hong Kong • Kansas City • Minneapolis • Albuquerque • Washington
2. Agenda Overview Issues / Factors FDI Growth Importance of Education Other critical issues that impact labor Workforce Analysis Who is Training Summary
3. Client First Tier Issues
4. Factors in Growth Cobb-Douglas Macro Production Function: Multifactor productivity (technology), labor and capital come together to create value in an economy. Labor = up to 70% of annual operating costs. Are companies putting their capital in areas where the demographics will support a maximum return on their investment?
5. Critical Factors in Workforce Critical points to research: Educational attainment Skills Growing population Employment Underemployment Cost Sustainability
6. Labor can and does go anywhere…
7. Importance of a Globally Educated Workforce Is English important?
8. Western Europe 13% Russia/ Eastern Europe 23% North America 17% India 29% Greater China 40% Japan 8% Australia/ New Zealand 11% Other AsiaPacific 25% Latin America/Mexico 26% HR leaders anticipate headcount investment will mirror growth opportunities Geographies where organizations are increasing headcount Korea 9% In addition 45% of companies in India plan to increase their headcount in North America and 44% in Western Europe 33% of companies in China plan to increase their headcount in North America and 14% in Western Europe Sub-Saharan Africa 7% North Africa 9% Middle East 16%
9. Top Latin American Recipients of Foreign Direct Investment (2012) Brazil ($65,272,000,000) Chile ($30,323,000,000) Colombia ($15,823,000,000) Mexico ($13,431,000,000) Argentina ($12,551,000,000) Peru ($12,240,000,000) Venezuela ($3,216,000,000) Panama ($3,020,000,000)
10. Comparison of FDI to Number of Universities by Latin American Country http://www.4icu.org/Latin-America/, Foreign Direct Investment in Latin America and the Caribbean 2012, United Nations Economic Commission for Latin America and the Caribbean (ECLAC)
11. Importance of a Globally Educated Workforce 2/3 of executives consider English essential for their workforce to succeed on an international scale. 38% of executives surveyed in Brazil believe that the difficulty in communicating in a non-native language to be a significant hindrance to effective cross-border relations and 77% believe that better communications could improve productivity. Competing Across Borders 2012, Economist Intelligence Unit
12. Importance of a Globally Educated Workforce 2/3 of executives consider English essential for their workforce to succeed on an international scale. 38% of executives surveyed in Brazil believe that the difficulty in communicating in a non-native language to be a significant hindrance to effective cross-border relations and 77% believe that better communications could improve productivity. Competing Across Borders 2012, Economist Intelligence Unit
13. Importance of a Globally Educated Workforce 2/3 of executives consider English essential for their workforce to succeed on an international scale. 38% of executives surveyed in Brazil believe that the difficulty in communicating in a non-native language to be a significant hindrance to effective cross-border relations and 77% believe that better communications could improve productivity. Competing Across Borders 2012, Economist Intelligence Unit
14. Latin American Proficiency in English(world rankings) Argentina - 15th Uruguay - 29th Costa Rica - 37th Brazil - 38th Peru - 39th Mexico - 40th Chile - 44th Colombia - 46th English Proficiency Index 3rd Edition (2012), Education First 60 Countries Ranked
15. Other issues that impact Workforce and Costs
16. Volatility around the world Political Property rights and use Political unrest Economic Recession, boom Natural Earthquakes, tornados, hurricanes, tsunami Inflationary Labor Energy Civil Labor unrest Criminal Terrorism, theft, crimes in general IP/Data protection & enforcement
17. Inflationary Pressures 2013 Inflation Rate Inflation Rate by Country, Trading Economics
18. Who is being trained/Who is training?Training data is one of the strongest primary resources for analytics Top 3 Latin America FDI leaders (2012)
19. Brazil SENAI – SENAC System Levy imposed on all Firms Ranked 5th in competitiveness in LatAm per 2013 World Economic Forum’s Global Competitive Index report : improve infrastructure and education Colombia Venezuela Trinidad & Tobago Guyana Suriname French Guiana Brazil Ecuador Peru Bolivia Chile Paraguay Argentina Uruguay Falkland Islands
20. Chile ServicioNacional de Capacitación y Empleo(SENCE) Training Rebate Subsidize worker training for three months if laid off Ranked most competitive economy in Latam in 2013 World Economic Forum’s Global Competitive Index report: improve education system (math & science). Low English Language Skills Colombia Venezuela Trinidad & Tobago Guyana Suriname French Guiana Brazil Ecuador Peru Bolivia Chile Paraguay Argentina Uruguay Falkland Islands
21. Colombia ServicioNacional de Aprendizaje (SENA) Training Rebate Subsidize worker training for three months if laid off Ranked 7thin competitiveness in LatAm per 2013 World Economic Forum’s Global Competitive Index report: improve education and transport infrastructure. Colombia Venezuela Trinidad & Tobago Guyana Suriname French Guiana Brazil Ecuador Peru Bolivia Chile Paraguay Argentina Uruguay Falkland Islands
22. Workforce Analysis
23. Latin America Demand for scarcer skills Widening in wage differentials Reporting systems Training demands Where is the next best place for labor? Colombia Venezuela Trinidad & Tobago Guyana Suriname French Guiana Brazil Ecuador Peru Bolivia Chile Paraguay Argentina Uruguay Falkland Islands
24. Workforce Analysis: How do we do it? Recognize the workforce is always one of the top site selection factors. Key analysis elements: Availability/Sustainability Quality Cost University/Technical college = pipeline of labor / training Other labor issues Ability to compare on “apples to apples” basis, as best possible.
25. Labor Availability/Sustainability Based on fieldwork interviews, survey, historical data: Utilize the best field sources Focus groups - unbiased Investment Promotion Agencies One-on-one confidential interviews with Workforce/HR officials Interviews with HR Professionals/competitors
26. Labor Quality Based on needs of the client, collected through: Fieldwork interviews with companies Universities Focus groups Job placement centers Investment promotion agencies Workforce/training officials, etc.
27. In Summary
28. Summary and practical advice Primary Research Database research “Boots on the ground” research Secondary Research National Training Organizations Investment Promotion Agencies Plan for Inflation and other issues Government funded training Skills are being developed, but many still need to be imported – tech-transfer risk! Exit strategy
29. Thank you