Conference Presentation, Panel, Fireside Chat
Creating Meaningful Lives for the 21st Century Workforce: A Conversation with Top Executives
Milken InstituteAndy Serwer, John Chambers, Denise Morrison, Tim Sloan, Mark Weinberger, Devin Wenig
- Workforce Demographics and Education Shifts: Panelists anticipate a future where millennials dominate the workforce for the first time in Campbell's 148-year history and a "digital divide" could emerge in the U.S. if education is not overhauled. Specific predictions include 65% of kindergarten students entering jobs that do not yet exist and an average S&P 500 company lifespan of only 16 years, with forecasts that over half of Fortune 500 companies ten years from now will be currently unknown entities.
- Strategic Corporate Goals and Adaptation: Cisco aims to become a top IT company or exit categories where it cannot compete in the top two, while EY projects that data analytics on five to six survey questions will predict business success two to three years ahead of financial metrics. Companies warn that failure to adapt within three to four years risks displacement by competitors, with Cisco noting its own experience of facing criticism after a decade of market leadership.
- Compensation, Retention, and Turnover Metrics: Wells Fargo increased compensation for low-paid staff by 12% in January to improve happiness among approximately 75,000 employees, with projections that new incentive systems will yield the lowest turnover in CEO Tim Sloan's 30-year tenure. EY expects businesses with the most engaged employees to see retention rates rise over 7% and profitability increase by 5% to 6%, while Cisco reports voluntary attrition of just 5% in an industry with double-digit averages.
- Technology, Automation, and Platform Evolution: There are expectations that platform shifts like artificial intelligence will cause major changes and job displacement, even as the sharing economy creates millions of new roles. Leaders anticipate that mandatory K-12 computer science education and training five million students annually through networks like Cisco's are necessary to address future skill gaps, with France and India planning to double or triple these training numbers.
- Diversity, Inclusion, and Community Impact: Wells Fargo forecasts a more diverse workforce in five to ten years due to demographic shifts and plans to recruit from non-traditional schools, noting that last year saw higher retention rates for women than men at EY. Leaders project that community engagement, such as Wells Fargo's 1.7 million hours of service last year and Cisco's network academies, will create more successful communities that in turn drive company success and shareholder value.
- Corporate Purpose and Cultural Resilience: Companies view purpose as an essential cultural anchor rather than a corporate responsibility initiative, with EY utilizing paid parental leave to prevent gender stereotypes and Campbell's adopting new values to connect multi-generational employees. Leaders assert that companies must have the courage to "redo education" and foster a startup mentality to survive, as resilience in the face of setbacks determines long-term viability and the ability to attract talent.
- Specific Risks and Challenges: A primary risk identified is the potential for a "digital divide" in the U.S. if the current education system fails to prepare workers for a digitized economy, which could make current digital disparities look small. Additionally, there is a warning that prioritizing shareholders first may lead to short-term decisions that hinder the creation of a long-term successful company, while the rapid pace of technological change creates a sense of urgency where many countries have already "let a lot of people get out in front of us."