2014 London Summit - Talent Without Borders: Building a Global Workforce

Demographic & Workforce Shifts

• Tens of millions in Southeast Asia (e.g., Malaysia, Indonesia) are newly entering the middle class and the global workforce.
• Recent college graduates now statistically anticipate having seven different careers over their lifetimes, rather than just seven employers.
• In the U.S., 1.4 million workers identify as freelance; globally, independent work has risen 45% since 2004 (EU figures: 8.9 million).
• Three demographics driving independent work trends: Millennials, women (now earning more advanced degrees than men in the U.S.), and retiring Baby Boomers.
• Average job tenure in the U.S. is approximately 4.5 years, indicating a shift from long-term employment to fluid labor markets.

Gender Diversity & Parenting

• Panelists agreed that reframing "women's issues" to "parenting issues" is critical, as gender dynamics in work-life balance affect all parents.
• In some Asian markets, strong female workforce participation is supported by extended family childcare structures (grandparents).
• A persistent "leaky pipeline" exists: business school entering classes are 50/50 gender, but female representation in upper management falls dramatically.
• 70% of the U.S. workforce identifies as freelance; 70% of Starbucks retail employees are Millennials, and 70% of those are students or aspiring students.
• Investment perspective: While women on boards are increasing and improve productivity, female representation in trading desks remains low due to the demanding 24/7 nature of investing.
• Key retention driver identified: The relationship with the direct boss is the primary reason employees leave their jobs.

Skills Gaps & Education Reform

• There is a structural disconnect where 30 million U.S. workers are underemployed while 4 million job openings remain unfilled.
• Siemens and Apollo Education Group are collaborating with employers to rapidly update curricula to match technological shifts (e.g., from mechanical to digimechatronics).
• Siemens reports that 30% of its graduate population in North West Europe comes from apprenticeship schemes, showing longer tenure than traditional university hires.
• Education institutions must move from static content creation to weekly engagement with employers to ensure immediate employability.
• Starbucks launched a program to fund college education for all employees, addressing the barrier of cost for the 70% of staff who are students.

Organizational Culture & Retention Strategies

• Value alignment is now the primary driver for Millennial recruitment; financial compensation is secondary to social mission and purpose.
• Starbucks expanded training from technical skills to "life skills" to engage employees who may not stay for their entire careers.
• Siemens upskilling is immediate due to rapid tech changes (e.g., removing gearboxes in wind turbines renders specific technician roles obsolete, requiring retraining).
• Business Talent Group notes that the shift to "accessing talent" rather than "owning talent" allows for flexible work arrangements, including executives working <40 hours/week with promotion eligibility.
• Apollo Education Group is internalizing global hiring practices, competing for talent across Asia, Latin America, and the U.S., with a focus on career progression pathways.

Regulatory & Legal Challenges

• Immigration reform and education reform are the top two concerns for Fortune 500 CEOs regarding future growth.
• Current legal frameworks are described as antiquated, designed for traditional employer-employee relationships and ill-equipped to handle a third of the workforce being freelance.
• Regulatory fragmentation (e.g., varying state laws in the U.S.) complicates the management of a borderless talent pool.

Leadership & Future Outlook

• Panelist Mike Milken emphasized that "culture beats strategy," citing the necessity of employees feeling proud of their organization in the social media age.
• Forward-looking statement: Companies that fail to figure out how to provide meaning, choice, and individualized work plans will lose the ability to attract top talent.
• A divergence in work patterns is expected: some workforce agility will manifest as independence for those with in-demand skills, while others will face job insecurity.
• No "optimal" tenure length exists; the critical metric is whether an employee possesses relevant skills and the willingness to continuously reskill.
• Siemens plans to continue integrating "learning and earning," creating communities of practice to keep external contractors employable and engaged.