B R E X I T, M I G R AT I O N A N D T H E W O R K F O R C E
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1 H E A L T H W E A L T H C A R E E R B R E X I T, M I G R AT I O N A N D T H E W O R K F O R C E U S I N G M E R C E R W O R K F O R C E M O N I T O R I N S I G H T S T O B E AT A S K I L L S C R I S I S J U L I A H O W E S Career, Europe Multinational Client Group G A RY S I M M O N S Actuary and Partner, UK 1
2 A G E I N G A N D T I G H T E N E D M I G R AT I O N W I L L S I G N I F I C A N T LY I M P A C T T H E U K W O R K F O R C E T H E U K R E L I E S H E AV I LY O N U K - B O R N, S K I L L E D AN D U N S K I L L E D M I G R AN T W O R K E R S UK BORN WORKING UK BORN POPULATION EU BORN WORKERS NON-EU BORN WORKING FOREIGN BORN POPULATION T H E U K - B O R N W O R K F O R C E H AS B E E N D E C L I N I N G S I N C E M M UK BORN WORKFORCE M Q Q CHANGES OVER 50 S + 226,000 UNDER 50 S + 56,000 EU BORN - 24,000 NON EU-BORN - 21,000 O V E R 5 0 S W O R K F O R C E G R O W I N G F O R E I G N B O R N S H R I N K I N G T H E U K P O P U L AT I O N I S G R O W I N G FAS T E R T H AN T H E W O R K F O R C E 2
3 T H E M O S T R E C E N T E M P L O Y M E N T A N D M I G R AT I O N S T AT I S T I C S I N D I C AT E T H AT T H E W O R K F O R C E C R I S I S W E P R E D I C T E D I S P L AY I N G O U T 3
4 A L L I N D U S T R I E S A R E I M P A C T E D W E A R E A L R E A D Y S E E I N G T H E E F F E C T S O N L Y 1 I N 5 0 A P P L I C A N T S F O R P R E T J O B S A R E U K B O R N 1 I N 3 D O C T O R S P L A N T O R E T I R E B Y , H I G H E R L E V E L T E C H N I C I A N S A N D E N G I N E E R S A R E N E E D E D A Y E A R 4 0 % O F K E Y O C C U P A T I O N S S H O W S K I L L S S H O R T A G E S E S T I M A T E S A D R I V E R S H O R T F A L L O F O V E R 3 0, % O F L A B O U R S U P P L I E R S R E P O R T E D S H O R T A G E S I N Your biggest risk is doing nothing while competitors are acting 4
5 I N D U S T R I E S M O S T AT R I S K 5
6 R E G I O N A L I N S I G H T S I S Y O U R R E G I O N U N D E R T H R E AT? 6
7 R E G I O N A L I N S I G H T S I S Y O U R R E G I O N U N D E R T H R E AT? 7
8 THE WORKFORCE CRISIS IS HERE: IT S TIME TO PLAN YOUR RESPONSE MERCER 8 8
9 A R E W E L O O K I N G AT T H E R I G H T S O L U T I O N S? #1 18% <35% ATTRACTION The competition for attracting external talent, is the number 1 talent issue reported by CEOs RESKILL Only 1 in 5 C-suite executives in Europe are confident in their organisation s ability to reskill displaced workers REDPLOY Only around one-third are confident in their ability to redeploy talent internally S O U R C E : M E R C E R T A L E N T T R E N D S
10 5 L I N E S O F D E F E N C E T O D E A L W I T H P E O P L E S H O R T A G E S C O N S I D E R W H E N T H E P E O P L E C O S T S M E A N A LT E R N AT I V E B U S I N E S S M O D E L S A N D S T R AT E G Y I S N E E D E D 5. Regroup 1. Build, Buy, Retain 1. Build, Buy, Retain LOOK AT TRADITIONAL SOURCING TO BUILD THE WORKFORCE NEEDED WHAT EVP IS NEEDED? MOVE JOBS AND TASKS TO WHERE PEOPLE ARE, AND CONSIDER FREELANCED AND OFFSHORE TALENT 5. Cease UK Operations 4. Move and Relocate Work 2. Diversify the Talent 2. Pool Diversify the Talent Pool Move Productivity and Productivity Relocate Work Through Through Automation Automation FIND PEOPLE FROM SOURCES YOU MAY NOT HAVE CONSIDERED BEFORE WHAT IS NEEDED FOR NON-TRADITIONAL TALENT TO THRIVE? U N D E R S TA N D T H E R O I O F A U T O M AT I N G TA S K S 10
11 A S T R O N G E M P L O Y E E V A L U E P R O P O S I T I O N W I L L B E C R I T I C A L F O R A N Y O R G A N I S AT I O N E M O T I O N A L P U R P O S E E X P E R I E N T I A L C A R E E R S W E L L B E I N G CONTRACTUAL C O M P E N S A T I O N B E N E F I T S 11
12 W O R K F O R C E R E S P O N S E P L A N Understand the volume of jobs/roles needed by location, factoring in the known investments in automation. Use external labour market data to determine whether there is a shortage of needed skills in their area Review existing staffing strategies and assess how sustainable these will be going forward, and what EVP is needed to sustain them (Line of Defence #1). See how internal demographics and diversity profile compares to the local market. Plan to make local jobs for local people, perhaps through apprenticeships, new talent pools, and partnerships with local education institutions (Line of Defence #2). Consider ways that productivity, automation and moving work may help decrease their workforce demand (Line of Defence #3 and #4). Having taken productive steps to fill workforce gaps from the UK-born population and permanent foreign born residents, then look to see how migration can help resolve remaining workforce gaps. 12
13 QUESTIONS? Please type your questions in the Q&A section of the toolbar and we will do our best to answer as many questions as we have time for. To submit a question while in full screen mode, use the Q&A button on the floating panel, at the top of your screen. FEEDBACK Please take the time to fill out the feedback form at the end of this webcast so we can continue to improve. The feedback form will pop-up in a new window when the session ends. 13
14 Mercer Limited is authorised and regulated by the Financial Conduct Authority Registered in England and Wales No Registered Office: 1 Tower Place West, Tower Place, London EC3R 5BU 14
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