INCLUSION 2020:GLOBAL TRENDS THAT WILL REDEFINE

WORK, WORKERS AND THE WORKPLACE

DR. SHELTON GOODE, DPA

ABOUT MARTA

• Eight largest U.S. transit system

• Formed in 1971 as a bus-only system

• 38 rail stations, 570 buses and 211 mobility vehicles

• 450,000 daily riders

• 7.9 million annual passengers

• Serving Fulton, DeKalb and Clayton counties

DEFINITION OF MEGATREND

Trend that is occurring which is inevitable AND will impact all organizations and industries.

MEGA TRENDS WE’LL DISCUSS TODAY

• Population • Workforce• Education • Economic • Talent Gaps• Culture • Workplace• Media

QUESTIONS WE WILL TRY TO ANSWER

• How will these megatrends affect my organization?

• How will these megatrends affect my community and the country?

• How will these megatrends impact me?

IMPLICATIONS FOR ORGANIZATIONS TODAY

Work

Behaviors

Processes

Policies

Procedures

Work Practices Formal

Work Rules

Organizational Visible Artifacts

Organizational Aspirations

Organizational Blind Spot

Vision/Mission, Goals, Strategies, Values

Personal Behaviors

UndiscussablesPerceptions/Filters

Unconscious Beliefs

Impacted by External Mega- Trends

Source: Diversity Managers: Angels of Mercy or Barbarians at the Gate, Dr. Shelton J. Goode, DPA

TODAY’S OBJECTIVES

• Provide an additional lens through which work workers and the workplace should be viewed

• Provide tools for examining mega-trend dynamics and diagnosing underlying organizational impacts

• Share best practices for responding effectively to mega-trends and impacts

• Enhance ability to make quality decisions in the midst of major cultural and societal changes

Population

U.S. POPULATION SNAPSHOT

U.S. Population 2000

U.S. Population 2010

U.S. Population2020

(projected)African American /

Black 12.7% 12.83% 12.97%

Asian / Pacific Islander 3.8% 4.66% 8.12%

American Indian /Native American /

Alaskan Native.9% 1.01% 1.24%*

Caucasian /Non Hispanic White 69.4% 68.65% 46.32%

Hispanic / Latino(a) 12.6% 15.35% 30.25%Total Population: 282.1 million 304.1 million 439.0 million

Source: Census Bureau 2016

WE’RE MORE DIVERSE BUT …MORE SEGREGATED

PEOPLE ARE LIVING LONGER ……

• The number of centenarians in the US:

• 1990 – 37,000

• 2000 – 50,000

• 2008 – 80,000

• 2010 – 131,000

• 2020 – 214,000

• 2040 – 447,000

IMPLICATIONS FOR ORGANIZATIONS

• The regional population share for Hispanics/Latinos and other ethnic groups will increase from roughly 54% today to 69% by 2040.

• The regional population share for Whites will decline from roughly 46% today to 31% by 2040.

• This demographic shift will mean more varied educational needs, greater demand for additional worship options, increased variation in artistic interests, broader cultural interest and demands.

Source: State Department of Economic Development Report, 2016

Workforce

NATIONAL WORKFORCE CHANGES

• Women, people of color, and immigrants comprise 70% of new entrants into the workforce.

• By 2040 56.8% of the U.S. workforce will be women.

• Millennials will constitute a larger segment of the workforce outpacing Gen Xers by 30 million workers.

Source: State Department of Economic Development Report, 2016

Video - Would Look At Those Two

VIDEO: “WOULD YOU LOOK AT THOSE TWO?”

© Copyright 2017 • All Rights Reserved • Employment Learning Innovations, Inc. • Atlanta, Georgia

MORE WORKERS ARE APPROACHING RETIREMENT

Industries with greatest percentage of White Workers age 55 to 65 years.

• Utilities 53%

• Mining 52%

• Educational 50%

• Public Administration 48%

• Transportation 42%

• Manufacturing 42%Source: U.S Chamber of Commerce Report, 2016

IMPLICATIONS FOR ORGANIZATIONS

The workforce of the future WILL be more diverse

• The Latino population, already the nation's largest racial minority group, will triple in size and will account for most of the nation’s workforce growth from 2020 through 2040.

• Hispanics will make up 39% of the U.S. workforce in 2040, compared with 14% in 2010.

• In 2040 nearly one in five Americans (19%) will be immigrants, compared with one in eight (12%) in 2010.

• IMPACT: Workforce demographics are changing rapidly. Organizations must adapt, develop inclusive workplaces, learn to connect across cultures, or get left behind.

Education

NEXT GENERATION WANTS ALTERNATIVES TO COLLEGE

• There are 165 million students in grades 9 – 12:

• Of this enrollment, only 33% plan to go to college to get a BS degree.

• For the period 2022 – 2025, only 5.4 million college graduates with 4-year degrees will enter the U. S. labor pool.

FUTURE GENERATIONS EQUATE SUCCESSWITH HAPPINESS NOT CAREER PATH

For the 39 million student enrolled in middle and high schools:

• 79% think having a corporate career is NOT an important part of a happy life.

• 70% do NOT equate type of job with success.

• 65% do NOT want to climb corporate ladder.

IMPLICATIONS FOR ORGANIZATIONS

Companies have to get into the Education Business and make a greater investment in the training, education, and development of their workforce.

Companies will reduce their reliance on colleges and universities as primary pool of talent, and increased their efforts to recruit labor away from other companies.

This will increase real wages and companies will increase their investment in technology as they try to automate their way out of expensive labor cost.

Economic

WE’RE HIRING … APPLY WITHIN

HiringU.S. employers are projected to add 2.2 million jobs a year until 2020.At this pace we will see several trends, including a labor market at or nearing full employment, and an economy that is plateauing.

Wages By 2020, Americans in private-sector nonfarm jobs earned are projected to earn an average $30 an hour. Wages are projected to grow 2.9% every year until 2040. Stronger wage growth is a signal the labor market is tightening.

Unemployment The unemployment rate is projected to be about 4.7% in 2020. The rate will move steadily lower. By 2040, unemployment will be the lowest since 2007.

IMPLICATIONS FOR ORGANIZATIONS

This will increase real wages and companies will increase their investment in technology as they try to automate their way out of expensive labor cost.

Talent Gaps

SHOW ME THE MONEY

• In 2010, 66% of college-educated men wanted a corporate job with a lot of money and responsibility.

• In 2020, this percentage is projected to drop to 55%.

• In 2010, 56% of college-educated women wanted a corporate job with a lot of money and responsibility.

• In 2020, this percentage is projected to drop to 35%.

#1 U.S. IMPORT – TALENT FROM OVERSEAS

• 32 million jobs will be vacated (primarily from Baby Boomer retirements) AND 20 million new jobs will be created

• BUT, available projected labor force will only be 29 million, leaving a 23 million worker shortage

• By 2040 the United States is projected to produce only 3% of the workers entering Global labor force --

75% of new workers will come from Asia, India and Africa.

• By 2040, the foreign-born U.S. population will surpass the peak during the last great wave of immigration a century ago

IMPLICATIONS FOR ORGANIZATIONS

Within next 10 years…

The battle for talent will be immense. Organizations MUST create environments that are inclusive of ALL types of people if they plan to be viable.

Even if you don't plan to go global --Globalization is coming to you!

Culture

INCREASED DIVERSITY TENSIONS

• Diversity tension refers to the stress and strain that can accompany interactions between different cultures and generations.

• Diversity tension is a natural outgrowth of bringing together multiple cultures and generations which may have different with perspectives regarding work.

• Diversity tension is neither bad nor good, it simply is.

COMPETING BELIEFS

• Melting Pot replaced by Multiculturalism

• Differences formerly “melted” into mainstream now held out as points of pride to be recognized and acknowledged

COMPETING ATTITUDES & VALUES

• Assimilation no longer assumed or readily accepted

• Results in more complex issues and increases challenge to engage all employees

Miss Canada – 2015 Miss Universe Pageant

Transgender

IMPLICATIONS FOR ORGANIZATIONS

• Demographic trends will increase diversity in the workplace (i.e. race, ethnicity, aging Boomers & increasing Millennials)

• Increase diversity will impact organization culture and norms

• Organizations need to be aware that Greater Differences x Greater Willingness to be different = more diversity of perspectives and increased diversity tension

Workplace

CRIME IN ALL THE WRONG PLACES

• Between 2010 and 2015, 28% workers were victims of an unwanted and unfavorable incident within the workplace.

• Only 35% of the unwanted and unfavorable acts were reported to the proper authority (i.e. HR, Compliance, Legal, Workplace Ethics) within the organization.

• Based on available data, 37% of the incidents involved race, 20% involved sex, 18% involved anti-Semitism, and 16% involved sexual orientation. Source: U.S. Department of Justice, 2016

RISE OF THE CYBER BULLIES

• 32 percent of employees surveyed reported having received threatening, harassing messages or ugly rumors spread about them online.

• The use of workplace computers to commit Cyber Bullying has increased by 3 times the amount of three years ago.

• Between 2010-2013, Cyber threats originating from company-owned devices resulted in 13% of employees taking 2 or more sick/PTO days . Source: U.S. Department of Justice, 2016

NO PLACE FOR HATE

• 36 percent of lesbian, gay, bisexual, and transgender (LGBT)

employees surveyed reported that they “experienced sexual harassment within the 12 months. “

• 20% of employees surveyed indicated that they “feared for their

physical safety because of their sexual orientation or gender identity.”

Source: U.S. Department of Justice, 2016

IMPLICATIONS FOR ORGANIZATIONS TODAY

• Each year more than 2 million people voluntarily leave their employers as a result of perceived unfairness (unfair policies & practices, negative comments/jokes, perceived invisibility)

• This trend cost U.S. corporations $64 Billion annually. This amount is almost as much as the revenues of Goldman Sachs, Google,

Amazon.com and Starbucks combined.

• POINT: Creating an inclusive environment reduces turnover and saves money.

Source: U.S. Chamber of Commerce, 2016

MediaTrends

MEDIA LANDSCAPE

Source: U.S. Today , November 2016

• Media platforms are evolving and are integrated into the average worker’s total day.

• The average person chooses when, where and how they avail themselves to media.

• As early adopters, Millennials lead the wayin consuming media.

• Millennials trust social medial more than twice as much as mainstream media or company information outlets (website, newsletter, etc.).

TELEVISION

• Millennials are heavy consumers of television, viewing 14 more hours each

• Views on workplace Culture and Diversity are shaped by television dramas, advertising shows, reality television programs, and sporting events.

Source: Nielsen Media Research: the State of the African American Consumer September 2016; Target Market News Top 25 Cable and Network Shows in Black Households, Aug 6-12

IMPLICATIONS FOR ORGANIZATIONS

• Continue to recognize the importance of the Millennials, since they outspendthe general market in the utility category.

• Participate in more recruiting events focused on Millennials, people of color and women

• Because Millennials, women and people of color are heavy consumers of media, it is important to engage them in innovative and relevant ways.

• Recognize importance of cultural nuances in all recruiting and marketing materials.

Source: U.S. Chamber of Commerce, 2016

How Should HR Respond

To These Megatrends

• 68 Macy's stores closing

• 253 Limited stores closing

• 108 Kmart stores closing

• 42 Sears stores closing

• Think about this…. The largest transportation provider in the U.S. doesn't own a single car (Uber)

• The new largest hotel company in the world doesn't own a single hotel (Airbnb)

• Amazon just passed Wal-Mart as the nation's biggest retailer (and, much more valuable) & they don't own a single store

THINK ABOUT THIS ….

• Help the organizations take steps to be more inclusive and recruit from all sectors of society

• Conduct ongoing dialogues with leaders managers on diversity issues that could impact the strength, vitality and future of the company.

• Help their organizations put in place the infrastructure to address emerging trends

HR MUST LEAD

HR MUST LEAD (CONTINUED)

31

• Continue to recognize the importance of the changing trends and thepotential impact on your business.

• Because Millennials are heavy consumers of media, it is important to engage this groups of potential employees more innovative and relevant ways.

• Recognize importance of cultural and diversity nuances in all recruiting efforts .

• Re-direct limited resources and energy currently focused diversity numbers and diversity awards

RESOURCES FOR MORE INFORMATION

SpeakerDr. Shelton J. Goode, DPAGlobal Diversity ExecutiveContact Cell: 770-550-3374E-Mail sjgoode56@gmail.com

Dr. Shelton J. Goode, DPAAuthor, Crisis As A Platform For Social Change From Strawberry Mansion To Silicon Valleywww.CrisisAsAPlatformForChange.com

INCLUSION 2020:GLOBAL TRENDS THAT WILL REDEFINE

WORK, WORKERS AND THE WORKPLACE

DR. SHELTON GOODE, DPA