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The Gathering Storm

Global engineering workforce challenges for the Industrials Market

© 2016 Korn Ferry. All rights reserved 2

Welcome

Yannick Binvel

President, Global Industrials Market

Korn Ferry

Paul Lambert

Senior Client Partner, Industrials Market

Korn Ferry Hay Group


Welcome to Tomorrow’s Engineering Workforce:A three-part webinar series

Today’s webinar:

Today we’ll cover how to attract, retain and engage the

right engineering workforce now and for the future

Coming up:

30 November: How to select and develop future leaders

whose qualities go beyond technical proficiency to align,

engage and enable the workforce

13 December: What steps can leaders take to bridge the

gap between engineering and project delivery functions

for greater project impact

Click here to sign up

http://infokf.kornferry.com/industrial-engineering-webinars_webinar-series-landing-page.html?


1 THE GATHERING STORM

2 HOW TO RESPOND TO THE CHALLENGE

3 KEY MESSAGES

4 YOUR QUESTIONS

5 FIND OUT MORE

What we will cover

The Gathering Storm


Major industrial production and programs rely on a skilled engineering workforce

Automotive(Digital cars,

Global supply chains)

High speed rail(China, Europe)

Maritime(Commercial, Military)

Aerospace(Growth in commercial flights,

Boeing, Airbus)

Airport expansion(London, China, US)


Key facts

Source: UNESCO report: Engineering: Issues, Challenges and Opportunities for Development; 2010

An additional 2,217,500 employees will be

needed across 10 principal engineering-related

skills areas over the next 5-10 years

(UK Engineering)

UNESCO estimate that some 2.5 million new

engineers and technicians will be needed in sub-

Saharan Africa alone if the region is to achieve

the UN Millennium Development Goal of

improved access to clean water and

sanitation

In many European countries, the demography is

such that the public sector within the next 10-15

years will have to recruit a disproportionately

large number of new engineers because of

retirements

The percentage of students studying engineering

is dropping compared to enrolment in other

disciplines. For example, in Japan, the

Netherlands, Norway and the Republic of Korea,

enrolment decreases of 5% to 10% have

been recorded since the late 1990s


The Gathering Storm: Engineering workforce risks

We have undertaken surveys and interviews with nearly 200 different leaders across global

industrials. They have highlighted three colliding forces that put the future engineering

workforce at risk:

Booming market – growth

and competition for skills

1

Changing skill requirements

– digital, systems

engineering, commercial,

collaborative leadership

3

Aging, multi-generational

workforce

2

Three critical shifts in thinking


How do we respond across industrials?What does the research tell us?

Develop a strategic

view of your

engineering workforce

1

Offering a compelling

professional career

journey

3Understand the

engineering leader of

the future

2


Develop a strategic view of your engineering workforce

50% of leaders expect the engineering

workforce to grow in the next 5 years and

only 11% expect the workforce to decline

Industrials market demand is growing

significantly

The nature of the Industrial market and

required skills continues to change rapidly

Engineering skills have a long lead time –

requiring early planning

Only 23% of organizations have a strategic

workforce plan

32%

18%

27%

23%

0% 5% 10% 15% 20% 25% 30% 35%

Basic manpower planning

Workforce analytics

Business workforce plan

Strategic workforce plan

Current engineering workforce planning practice

“How do you get your head round the size of the challenge?”

HR Director, Global industrials firm


Client challenge What they did Outcomes

Network Rail (UK national rail

infrastructure company) needs to

deliver a ‘Digital Railway’ in next 10+

years, using mobile and digital

technology

Developing a digital engineering

workforce is vital to the on-time,

quality delivery of this program

Worked together with the Digital

Railway leadership to define a

strategic workforce planning model for

next 15 years

Modeled the effect of different

workforce strategies (recruitment,

development, talent management)

and ways of doing the work to ensure

right workforce to deliver this multi-

billion pound program

Strategic resourcing approach for the

Digital Railway program including:

− Supply chain development

program

− Cross-skilling of existing engineers

to become digital engineers

− Engineering development and

succession program

Case study:Network Rail – Planning tomorrow’s workforce

Business as

Usual

Automation creating an

efficiency of 25% in demand





supply

GAP between Supply and

Demand with 25% efficiency

“This scenario modeling of the Digital Railway is essential to successful

program resourcing and achieving the 10-year roll-out target”.

Engineering Director


2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Nu

mb

er

of d

igita

l e

ng

ine

ers

Network Rail case study illustrates powerful, scenario-based strategic workforce planning

Supply

Supply with

digital re-skilling

and recruitment

Demand with full

automation

Planning delivery

– demand


Engineering leadership is now about a much broader

set of skills than pure technical prowess

Engineering has shifted in many ways:

− Towards collaboration / partnership / joint ventures

− Integrating innovation and digital / automation

− Global / cross-cultural working increasingly the

norm

− Focus on delivering whole systems engineering

solutions and capability to clients

− Market and commercial awareness is important in

decision making

− Need for continuous learning about technological

advance and its impact

Driving a new profile of future engineering leader

Have a view of the future engineering leader


Engineering leaders will need to be broader, more collaborative, less risk averse, more globally and digitally minded with an ability to operate in situations that are more ambiguous

Identify competences that leaders will need in the future

Assess high potential and current senior leaders against

these profiles

Identify new career paths to gain broader experience

and insight

Provide technical, program and business leadership

career paths

New technical / work skills

KF Mission critical competences for engineering

leaders

Broader, more collaborative leadership profiles



This engineering focused

organization sought our help to grow

their business, even as they shifted

from products to services across their

international customer base

They needed to ensure they had the

engineering leaders to succeed in this

new business climate

Worked with us to define success

profiles for the selection and

development of its engineering

leadership

Evaluated senior people against

these success profiles, using a range

of methods including Leadership

Styles and Organizational Climate

diagnostics

Assessed nearly 1,000 of the

company’s leaders, yielding valuable

insight at individual, team and

business levels, and including

variables such as gender and market

location

Results directly inform how the

business manages its talent, helping it

to achieve the right balance of

engineering and leadership strength

Case study:Global aerospace and defense business – developing future engineering leaders

“We now have a clear process to help us ensure that we have visibility of

the leadership pipeline. This process is amongst the best I have seen in

my experience as a board member.”

Chairman, Global aerospace and defense business


Offering a compelling professional career journey

Challenge

Losing engineering talent, particularly in early

career stages

Often competing over the same talent

Too small a pool of candidates

Compelling career journey

Build a compelling employment offer and on-going

relationship

Offer a career, not a job, based around quality of

work and opportunity

Offer meaningful reward not just money!

% reporting high difficulty to attract


Case studies:Maritime engineering and rail transportation


Maritime

engineering

Significant shortages of critical

staff, in areas such as

engineering, naval architecture,

supply chain and project

management, were putting

major programs at risk

Data analysis of critical roles –

strategic importance and most

difficult to fill

Identified key elements of a

compelling proposition to

attract, retain and motivate the

different workforce segments

Net benefits of over £10m

identified over first 3 years of

employee proposition

implementation

Attracted required staff for

multi-billion program

Rail

transportation

To effectively allocate project

management and engineering

workforce to program

To develop engineering and

project management skills for

the future demands

Built project management and

engineering detailed

responsibilities and career

paths

Developed online career paths

and guides and career tracking

New framework used as basis

for project resourcing from

2014

Strong, positive feedback and

adoption from the project

management and engineering

community


Insight Elements of solution(s) Example benefits

Develop a strategic view of your

engineering workforce

For major programmes and core

business

To address ageing workforce risk

Strategic planning of future engineering workforce

Critical role analysis

Strategic workforce plan

Active modeling of retirement risks

Flexible working arrangements

Alumni retirement schemes

Network Rail

Planned delivery of major digitization

program in 10 years rather then 20

US Postal Service

Matching headcount to delivery

requirement with large workforce

savings

Understand the engineering leader of

the future

Building engineering leaders fit for the future

Leadership competence mapping

Engineering leadership career paths

Aerospace / Defense

Significant improvement in ‘climate’

leading to performance improvements

Offering a compelling professional

career journey

Offering a compelling career for diverse set of recruits

Diverse recruitment practices

Compelling employee proposition

Apprenticeship / graduate programs

Engineering and project management career

frameworks

Talent sourcing / identification programs

Maritime engineering

Net benefits of over £10m over first 3

years of employee proposition

implementation

Rail transportation

Career framework used to identify

talent and align to delivery programs

Key messages

Questions?


Find out more

We have published a set of viewpoints and a research report to go with this series of

webinars. We will send you these reports after each webinar.

Three engineering workforce viewpoints The Gathering Storm research report

15 senior leader

interviews

100+ survey

responses


Yannick Binvel

President, Global Industrials Market

Korn Ferry

[email protected]

Get in touch

Paul Lambert

Senior Client Partner, Industrials Market

Korn Ferry Hay Group

[email protected]

Please reach out to Yannick or I if you’d like to discuss your own workforce

challenges

Thank you

the gathering storm - korn ferryinfokf.kornferry.com/rs/494-vuc-482/images/attracting and...© 2016...

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