For decades, the executive search landscape resembled a gilded cage, its doors guarded by stone sentinels labeled "experience." Resumes boasting years at the helm of industry titans and pedigrees etched in ivy-league halls held the ultimate key. They cast long shadows over individuals whose brilliance shone in less conventional arenas. This strict adherence to experience served us well in a more predictable era. Today's dynamic environment presents challenges that require a new currency of executive leadership in 2024.
Technological Advancements: Buffeted by seismic forces, the fabric of business, the tectonic plates of leadership are on the move. Gone are the days of rigid hierarchies and siloed expertise; agility and adaptability are now the new currency of success.
Inclusive Leadership: Beyond the technological tsunami, the tide of inclusive leadership is rising. We're awakening to the richness of diverse perspectives and the untapped potential locked away within underrepresented talent pools. These underrepresented individuals possess the skills and vision to revolutionize leadership.
The Imperative for Agility: This convergence of technology, agility, and the urgent need for inclusivity – creates a perfect storm. The rise of skills-based hiring. It's not just about dethroning experience. It's about recognizing its limitations in this brave new world and embracing a more nuanced, future-proof approach to leadership selection.
Adaptability, Innovative Spirit, and Diverse Skill Sets: This progressive wave isn't just a ripple. It's a tsunami poised to reshape the very criteria by which we evaluate leadership potential. It's about building an executive ecosystem that thrives on agility and inclusivity. Ultimately, it thrives on the raw potential of human skill.
This shift means everything for the future of leadership. It's an invitation to step outside the gilded cage and embrace the power of potential. Rewrite the future of leadership, one transformative skill at a time.
Technological advancements: The rapid pace of technological disruption has created entirely new industries and fundamentally reshaped existing ones. Leaders must be adaptable and possess data analysis, artificial intelligence, and digital transformation skills. This is required to navigate this ever-evolving landscape.
Disruption and volatility: Traditional business models are under constant threat from innovative startups and shifting consumer preferences. Organizations need agile leaders who can think outside the box. Leaders who embrace change, and make quick decisions in the face of uncertainty.
Globalized economy: The interconnectedness of the global economy requires leaders with diverse perspectives and cultural competency. Skills in communication, collaboration, and cross-cultural understanding are crucial for navigating complex international partnerships and markets.
Fourth, Shifting Talent Pools: The demographics of the workforce are changing, with younger generations bringing new skills and expectations to the table. Organizations should move beyond outdated notions of experience. They should value transferable skills and innovative approaches from talent of all ages and backgrounds.
Myopia of Experience: Focusing solely on experience can lead to overlooking talented individuals who may not have traditional backgrounds or lengthy tenures. Skills-based hiring opens the door to fresh perspectives and diverse expertise that can fuel innovation and growth.
Rigidity and Inflexibility: Leaders selected based on past experience may struggle to adapt to new challenges and embrace change. Skills-based hiring focuses on identifying individuals with adaptable skillsets who can learn and grow in response to evolving demands.
Bias and Blind Spots: Experience-based hiring can perpetuate unconscious biases that favor specific demographics or backgrounds. Focusing on skills levels the playing field and creates a more inclusive talent pool.
Fourth, Limited Talent Pool: Hiring managers should not consider only candidates with long track records. Skills-based hiring expands the talent pool and unlocks access to a wider range of diverse and promising individuals.
The implications of this shift are nothing short of revolutionary. Organizations should seek out individuals with the right skills for the future. This opens the door to a whole new generation of leaders, a vibrant tapestry woven with:
Emerging Leaders: Young professionals with cutting-edge expertise in areas like data analytics and artificial intelligence are emerging leaders. In addition, CEOs with data analysis skills, and cross-cultural teams with multilingual communication skills can now compete on a level playing field. Their fresh perspectives and innovative approaches are no longer relegated to the sidelines.
Career Changers: Individuals with transferable skills honed in diverse industries can bring their rich tapestry of experience to the table. They offer solutions informed by a kaleidoscope of perspectives.
Underrepresented Talent: By focusing on skills, organizations can move beyond the unconscious biases that often lurk in the shadows of experience-based hiring. This focus fosters a more inclusive and diverse talent pool that reflects the vibrant mosaic of our world.
Ultimately, the shift towards skills-based hiring isn't just about finding the most qualified candidate for today's role. It's about building a future-proof leadership team capable of navigating the ever-evolving landscape of the 21st century. This team, forged in the crucible of skill-based selection, will be:
Agile and Adaptable: Agile and adaptable team members constantly learn and reshape their skill sets to stay ahead of the curve.
Innovative and Inclusive: Their diverse perspectives and approaches will spark a continuous fire of creativity. This leads to solutions that rewrite the rulebook of leadership. Teams that are inclusive will dismantle the barriers of bias. Fostering a leadership landscape that reflects the richness and diversity of the world around us.
Solution-Oriented: Unburdened by the weight of "how it's always been done," they focus on the "what could be." Constantly seeking out unconventional solutions to seemingly insurmountable challenges.
The shift towards skills-based hiring unlocks a wealth of potential. This shift presents some challenges that organizations must navigate to fully realize its benefits:
Accurate Skill Assessment: Evaluating skills objectively and effectively can be a complex task. Traditional methods like resumes and interviews can be biased and may not accurately gauge real-world skill capabilities. McKinney Consulting leverages cutting-edge assessments, simulations, and behavioral interviews. This strategy provides a comprehensive picture of a candidate's skillset beyond just their resume.
Bias Mitigation: Unconscious biases can creep into skills-based hiring, potentially overlooking qualified candidates from diverse backgrounds. We at McKinney Consulting actively employ diversity and inclusion best practices throughout the hiring process. We utilize blind reviews and structured evaluations to ensure fairness and inclusivity.
Skill Development and Upskilling: Identifying and developing the right skills within an organization is crucial for long-term success. McKinney Consulting offers a range of customized learning and development programs and mentorship opportunities. We provide access to our global network of experts to help organizations nurture their talent and bridge any skill gaps.
Culture Shift: Transitioning from a traditional experience-based approach to a skills-first culture requires a commitment. Leadership must be willing to adapt to new processes. We partner with organizations to create a culture that values continuous learning, skill development, and adaptability. These organizations foster an environment where individuals and teams can thrive in the new landscape.
McKinney Consulting is not just a thought leader in skills-based hiring. We are your trusted partner in navigating this transformative journey. We bring a unique combination of expertise in talent acquisition, leadership development, and organizational change to help you:
By embracing the new currency of skills with McKinsey Consulting, you can unlock the full potential of your organization. You can build a future-proof leadership team equipped to navigate the challenges and seize the opportunities of tomorrow.
Remember, the future of leadership isn't just about finding the right skills. It's about creating an environment where those skills can flourish and contribute to lasting success. Let's take action together and rewrite the rules of leadership, one transformative skill at a time.
The year 2024 marks a defining moment in the annals of executive search. It's the year we rewrite the rules, dethrone the outdated, and embrace the transformative power of skills.
Leadership for tomorrow has limitless potential. Technical or IT positions require people today who have the desire to continually update their skills. Their skill sets are outdated within 2 to 3 years.
Embrace the shift, hone your skills, and step into the spotlight. The future of leadership awaits. And it's ready to be shaped by those who dare to prioritize potential over pedigree. Adaptability over rigidity and skills over the mere echo of experience. It’s important that we take action and embrace this transformative shift together.
2 min readLeaders navigate a complex, dynamic landscape. Balancing multiple demands, they juggle responsibilities, forge alliances, and steer their teams toward ambitious goals. Amidst the goals, triumphs, and deadlines, an unavoidable reality emerges conflict. The word itself evokes tension, discord, and a sense of impending collision. The skillful leader recognizes perceived roadblocks as valuable crossroads, where conflict fuels growth and drives success.
Imagine driving a high-performance car. Pushing the limits inevitably invites bumps on the road, moments where friction becomes palpable. This friction and diverse perspectives collide in the pursuit of excellence, ideas clash, and emotions flare.
Beneath the surface of seemingly calm interactions, a low rumble of discontent can sometimes be detected. This subtle tremor can morph into a blazing emotional inferno if left unaddressed. The emotional inferno telltale signs are often subtle: a shift in body language, a veiled sarcasm in communication, or a sudden withdrawal from collaborative efforts.
Navigating the crossroads of conflict demands a well-equipped toolkit. Here are some vital tools every leader needs:
Beyond individual skills, cultivating a culture of open dialogue is paramount. Leaders must act as architects, designing a highway where diverse perspectives can flow freely, without fear of judgment or reprisal. This necessitates:
Conflict fuels growth and drives success, or it goes from a collision course to a collaborative compass. This conflict illuminates areas of improvement, fosters innovation, and strengthens the bonds of teamwork. By equipping ourselves with emotional intelligence, assertive communication, and win-win negotiation tools, we can turn the heat of disagreement into the light of progress.
Leaders who embrace conflict as a natural part of the journey and cultivate a culture of open dialogue, empower their teams to thrive. Next, these empowered leaders become navigators and architects, crafting a landscape where diverse perspectives pave the way for shared success. Remember, conflict isn't a dead end; it's a crossroads, and with the right tools and mindset, leaders can guide their teams toward a future fueled by constructive collaboration and remarkable results.
4 min readRemember the infectious energy of childhood, the "rise & shine" that crackled with anticipation for the day ahead? As senior leaders, we navigate the complexities of strategy, build high-performing teams, and drive impactful results. In these moments, sometimes, amidst the demands and responsibilities, that initial spark can dim. Perhaps, the real question becomes: are we tending to the embers of passion and purpose or simply drifting toward a smoldering dissatisfaction?
Countless times, I've seen the flicker in a leader's eyes grow dim, only to rekindle into a blaze. This transformation witnessed through both executive search and coaching, inspired me to dedicate my career to finding and fanning that very spark. Drawing on this unique vantage point, this article will explore the subtle signs that might indicate a dimming flame and offer practical strategies for leaders and organizations alike to reignite passion, purpose, and, ultimately, success.
Our professional lives, like any relationship, thrive on honest introspection. Is our current position a crucible for growth and fulfillment or a slow burn of unfulfilled potential? Here are some subtle shifts that might indicate the need for a recalibration:
The power of rekindling the spark isn't an abstraction; it's a reality witnessed firsthand during a recent leadership consulting workshop with a team from a premium automobile brand. The journey began with a two-hour bus ride, seemingly mundane, but it became an unexpected icebreaker. As the coach, I encouraged conversations beyond work, allowing individuals to share personal interests and stories they rarely shared in the office. These candid exchanges fostered curiosity and understanding, chipping away at professional walls and building human connections.
Upon arrival, the Go-kart track set the stage for laughter and friendly competition. These car enthusiasts relished the opportunity to race outside the boardroom, unleashing their inner child and celebrating each other's triumphs. The shared adrenaline and camaraderie further solidified the newfound bonds.
The feast that followed wasn't just about replenishing energy; it was a continuation of the connection-building process. Relaxed and open, the leaders delved into deeper conversations, strengthening their personal and professional understanding. This laid the groundwork for the next day's workshop.
In a comfortable setting, away from the usual office dynamic, we explored each leader's role, challenges, and opportunities. Team-building games further cemented trust and collaboration, while sessions on active listening and differentiating leaders from managers provided valuable insights.
The workshop's impact went beyond theoretical knowledge. Improved communication flowed organically, fostering a cohesive team environment. Enhanced motivation and engagement became palpable as individuals rediscovered their purpose within the larger team dynamic. This newfound emotional strength, a result of deeper understanding and connection, empowered them to tackle challenges with renewed zeal.
This case study exemplifies the transformative power of reigniting the spark within leadership teams. When leaders feel connected, understood, and valued, their passion and potential shine through, illuminating the path toward success for themselves and their organizations.
If these questions resonate, it's time to take action. Here are some empowering options:
Leading from a place of joy and purpose isn't a luxury; it's a necessity. At McKinney Consulting, we're passionate about empowering senior leaders to reignite their fire, rekindle their passion, and craft fulfilling careers that leave a lasting legacy. We believe that every leader has a spark within. We offer the tools and support needed to fan that spark into a blazing flame. Let's rise & shine together, illuminating the path ahead for ourselves, our teams, and the organizations we shape.
2 min readAs executive coaches, we see the exhilarating climb to the top, the plateau of complacency, and the disheartening slide back down. However, momentum is a hidden force that propels leaders beyond the peaks and valleys. The invisible current propels us onward, fueled by focus, growth, and a dash of forgiveness. In this blog post, we'll explore Riding the Momentum Wave.
So, how do we harness this potent force and ride the momentum wave to lasting success? Let's explore five key strategies for harnessing momentum.
It sounds simple, but it's the bedrock of momentum. When the path gets tough, resist the siren song of distraction. Remember the goals that sparked your journey, the vision that painted your future. Refocus on that North Star and let it guide you through the storms.
However, staying focused doesn't mean ignoring the wind in your sails. Each day, take a moment to reflect. So, celebrate the small victories, the steps taken, and the lessons learned. Rather than dwelling on missed turns, use them as navigational aids, plotting a better course for tomorrow. As author Dan Sullivan aptly states in his book, The Gap and the Gain: The High Achievers’ Guide to Happiness, Confidence, and Success, to focus on the "Gain," not the "Gap." Celebrate your progress, not the distance to go.
Just like sharks, leaders must constantly move to stay alive. Dedicate time to continuous learning by attending conferences, reading industry publications, and engaging in peer discussions. Stay curious, explore new ideas, and embrace the ever-evolving landscape of your field. This intellectual fuel keeps your momentum engine humming.
The future isn't a passive outcome of our actions; it's actively shaped by our intentions. Set clear, ambitious goals, but don't mistake them for wishful thinking. Craft detailed plans, break them down into actionable steps, and visualize success with laser clarity. This purposeful anticipation fuels the fire of momentum.
The often-overlooked hero: The journey to the top is rarely paved with rose petals. Inevitably, there will be missteps, misunderstandings, and moments of doubt. But here's the thing: holding onto resentment is a momentum-killer. Practice forgiveness, both for yourself and others. Seek it when needed and extend it freely. It's not about weakness; it's about the strength and humility to release the anchors that weigh you down.
It's important to remember that momentum isn't a one-time burst; it's a continuous dance. These five principles are not rigid formulas but guiding principles. Adapt them to your unique journey and let them fuel the fire within. So, as you navigate the inevitable ups and downs, remember the power of staying on track, celebrating progress, embracing growth, planning for victory, and letting go of the burdens of the past. By harnessing the power of momentum, you'll reach heights you never imagined and inspire others to do the same.
Therefore, go forth, leaders, and harness the power of momentum. Ride the wave, embrace the wind, and paint your success story on the future canvas.
3 min readKorea, a land steeped in rich traditions and cultural nuances, often presents a puzzling contrast of etiquette and behavior. Foreigners may encounter overwhelming hospitality and generosity from friends and acquaintances yet may also observe indifferent or even rude behavior in public settings. This contradictory behavior stems from a fundamental concept that shapes social interactions in Korea – the distinction between "in-groups" and "out-groups."
Within in-groups, which comprise individuals with whom one shares personal connections, Koreans adhere to a strict code of etiquette and deference. Close relationships within in-groups receive the utmost respect, generous expressions of affection, and unwavering support. This emphasis on maintaining harmonious relationships within in-groups is deeply rooted in Confucian values, which emphasize social hierarchies, collective harmony, and deferential treatment of those in positions of authority.
The concept of in-groups holds immense significance in Korean culture, extending beyond mere social circles and encompassing a sense of shared identity and responsibility. In-groups provide a sense of belonging, support, and security, fostering a keen sense of collective identity. Members of in-groups are bound by duty to prioritize the group's needs and goals, demonstrating loyalty, and upholding the group's reputation.
Interactions with individuals outside one’s personal network follow by a distinct set of social norms. Public spaces, such as crowded streets or bustling markets, become testing grounds for personal efficiency and navigation, where individuals prioritize their own movements and goals over those of others. What may seem like a lack of consideration for others in public spaces is a cultural adaptation to the demands of a fast-paced, densely populated society.
The concept of out-groups is not unique to Korean culture, but it manifests in a particularly pronounced manner in Korean society. This distinction between in-groups and out-groups shapes social interactions in Korea, influencing perceptions of both Koreans and foreigners.
For foreigners visiting or residing in Korea, understanding the concept of in-groups and out-groups is crucial for navigating social interactions effectively. Building personal connections and establishing in-group relationships are essential for experiencing the warmth and hospitality that Korean culture is known for. However, it is also important to recognize the different norms governing interactions with out-groups in public settings.
When interacting with individuals in public spaces, foreigners should be mindful of personal space and prioritize efficient navigation. While this may seem impersonal at first, it is an adaptation to the demands of a fast-paced, densely populated society.
Understanding the concept of in-groups and out-groups can help bridge the cultural divide between Koreans and foreigners. By recognizing the different norms governing interactions within in-groups and out-groups, foreigners can better understand and adapt to Korean social etiquette.
Moreover, foreigners can show respect for Korean culture by striving to learn the language, customs, and traditions. Demonstrating a genuine interest in Korean culture can open doors to friendships and opportunities for deeper cultural exchange.
In conclusion, the distinction between in-groups and out-groups is a fundamental concept shaping social interactions in Korea. Understanding this concept is crucial for foreigners navigating Korean society effectively and building meaningful relationships with Koreans. By bridging the cultural divide and fostering mutual understanding, Koreans and foreigners can enrich their lives through cross-cultural interactions.
4 min readIn Korea, as in the West, honesty and loyalty are virtues. However, loyalty has traditionally been considered a higher value in Korean culture. This is reflected in the Korean language, where the word for "loyalty" (충성, chungseong) is also used to mean "fidelity" and "devotion."
In recent decades, Korea has undergone significant economic and social change. The country has become more democratic and individualistic, with a greater emphasis on individual rights and freedoms. These changes have impacted Korean values, including the relationship between honesty and loyalty.
Today, there is a growing demand for honesty in Korean society. This is partly because Koreans are increasingly aware of the importance of honesty in a democratic society. It is also because social media and other new technologies have exposed corruption and other forms of dishonesty.
The Korean workplace has a trend towards greater transparency and accountability. Korean companies increasingly recognize the importance of promoting honesty and integrity in business practices. This is partly due to the fact that Korean companies compete in a global marketplace, where honesty and integrity are essential for success.
However, there are still some challenges to promoting honesty in Korea. One challenge is the country's solid Confucian tradition. Confucianism emphasizes the importance of loyalty to one's family, friends, and superiors. This can sometimes lead to conflicts between honesty and loyalty.
Another challenge is the persistence of corruption in Korea. Corruption is a problem in many countries but is prevalent in Korea. This is due in part to the fact that Korea has a long history of authoritarian rule.
Despite these challenges, there is a growing trend towards more excellent honesty in Korea. This is a positive development, and it suggests that Korea is becoming a more mature and democratic society.
Social media has played an essential role in promoting honesty in Korea. In the past, it was difficult for ordinary Koreans to speak out against corruption and other forms of dishonesty. However, social media has made it much easier for people to expose wrongdoing.
For example, in 2016, a group of Korean journalists used social media to expose a massive corruption scandal in relation to the unusual access that Choi Soon-sil, the daughter of shaman-esque cult leader Choi Tae-min, had to President Park Geun-hye of South Korea. This scandal led to Park's impeachment and removal from office.
Social media has also been used to expose corruption and other forms of dishonesty in the Korean workplace. For example, in 2018, a group of Korean employees used social media to expose a company that was forcing its employees to work overtime without pay. This scandal led to the company being fined by the government.
By following these tips, leaders in South Korea can play a key role in promoting honesty and integrity in their society.
The relationship between honesty and loyalty is evolving in Korea. There is a growing demand for honesty in Korean society, and Korean companies are increasingly recognizing the importance of promoting honesty and integrity in their business practices. However, there are still some challenges to promoting honesty in Korea, such as the country's strong Confucian tradition and the persistence of corruption.
Leaders in South Korea can play a crucial role in promoting honesty by:
By following these tips, leaders in South Korea can help to create a more honest and just society.
The growing trend towards improved honesty in Korea is a positive development. It suggests that Korea is becoming a more mature and democratic society. Honesty is essential for trust, and trust is essential for economic growth and social progress. A more honest Korea is likely to be a more prosperous and successful Korea in the future.
3 min readIn today's uncertain economic climate, job security is more important than ever before. But what exactly is job security, and how can you achieve it?
Job security can be defined as the likelihood that you will keep your job for a sustained period of time. It is influenced by various factors, including the overall economy, the health of your industry, and your own individual performance and skills.
While there is no guaranteed way to achieve job security, you can do several things to increase your chances. In this article, we will discuss the eight most important steps to achieve job security.
This means doing your job well, meeting deadlines, and being a team player. It also means being proactive and taking on new challenges.
The workplace is constantly changing, so it is important to keep your skills sharp. This may involve continuing education courses, attending industry events, or networking with other professionals.
Things don't always go according to plan, so it is important to be able to adapt to change. This may mean taking on new responsibilities, learning new skills, or even moving to a different department or company.
This includes your manager, colleagues, customers, and other important people in your network. Strong relationships can help you stay informed about opportunities and get support when you need it.
Volunteer for projects, participate in meetings, and make your contributions known. This will help you build relationships with key stakeholders and demonstrate your value to the company.
What do you want to achieve in your career? What skills do you need to develop? Once you have a plan, you can start taking steps to achieve your goals.
This is a great way to learn about new opportunities, stay up-to-date on industry trends, and build relationships with potential employers.
Even if you love your job, it is important to be prepared to leave if necessary. This means having a resume ready and keeping your network up-to-date.
It is also important to remember that job security is not just about keeping your current job. It is also about having the skills and knowledge that are in demand so that you can easily find another job if necessary. In addition to the eight tips above, there are a few other things you can do to increase your job security:
The world of work is changing rapidly, so it is important to be adaptable and willing to learn new things. If you are constantly developing your skills and knowledge, you will be well-positioned to succeed in any job market. Finally, don't forget to network with other professionals. Networking is a great way to learn about new opportunities, stay up-to-date on industry trends, and build relationships with potential employers.
Job security is important, but it is not guaranteed. By following the tips above, you can increase your chances of keeping your job and achieving your career goals.
3 min readFeedback is the key to success in any organization, especially for executives. Executives need to be able to give and receive feedback effectively to set the company's direction, make strategic decisions, and motivate and lead their teams.
Giving and receiving feedback effectively can lead to a number of benefits, including improved performance, increased self-awareness, and a more positive and productive work environment.
While there are some cultural differences in communication styles, executives can follow some general tips to give and receive feedback effectively.
Giving feedback
When giving feedback, it is important to be specific, actionable, and timely. Avoid giving vague or general feedback, such as "good job" or "do better." Instead, focus on specific behaviors or actions you want to see more or less of. For example, you could say, "I really appreciate how you took the lead on that project and kept everyone on track," or "I noticed that you've been making careless mistakes lately. Can we talk about how to improve your accuracy?"
It is also important to make sure that your feedback is actionable. This means providing the person with concrete steps they can take to improve. For example, instead of saying, "You need to be more assertive," you could say, "Try speaking up more in meetings and sharing your ideas."
Finally, it is important to give feedback in a timely manner. This means giving feedback as soon as possible after the event or behavior occurred. This will help the person understand what they did well or need to improve upon.
Receiving feedback
Receiving feedback can be challenging, especially if it is negative. However, it is important to remember that feedback is meant to help you improve. When receiving feedback, try to be open-minded and receptive. Listen carefully to what the person is saying and try to understand their perspective. Avoid getting defensive or making excuses.
Once the person has finished giving you feedback, take some time to reflect on what they said. Ask yourself if there is any truth to their feedback. If so, what can you do to improve? If you disagree with the feedback, try to understand why the person feels the way they do. You may be able to learn something from their perspective, even if you don't agree with it.
Here are some additional tips for receiving feedback effectively:
Benefits of giving and receiving feedback effectively
There are many benefits to giving and receiving feedback effectively. When feedback is given in a constructive way, it can help to:
When feedback is received in an open and receptive way, it can help to:
Conclusion
Giving and receiving feedback effectively is an essential skill for executives. By following the tips above, executives can learn to give feedback in a helpful and constructive way, and they can learn to receive feedback in a way that is open and receptive. By doing so, executives can create a more positive and productive work environment for themselves and their teams.
Example
Here is an example of how to give and receive feedback effectively:
Giving feedback:
"Hi John, I wanted to give you feedback on your last week's presentation. Overall, I thought you did a great job. You were well-prepared, and your delivery was clear and engaging. However, I noticed that you stumbled over your words a few times, especially at the beginning of your presentation. This is something to be aware of and work on, but it didn't detract from the overall quality of your presentation.
Also, I thought your slides were a bit cluttered. There was a lot of text on each slide, making it difficult to follow along. I would recommend using more visuals and breaking up the text into smaller chunks.
Overall, I thought you did a great job. Keep up the good work!"
Receiving feedback:
"Thank you for the feedback, Bill. I appreciate you taking the time to share with me.
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Article originally published in Steve's LinkedIn Newsletter HR Asia October 7, 2023
2 min readThis study, from Japan's Research Institute of Economy, Trade and Industry, entitled "Empirical analysis of the impact of aging of the workforce on innovation and productivity," should be of interest to people beyond Japan as the whole of the developed world is now facing an aging workforce and lower birthrates.
The study used patent applications to measure innovation over time, which we can agree or disagree with. The main findings were:
1. Since the 1970s, the average age of employees at listed companies has continued to rise, while the average length of service has not changed significantly.
2. A rise in the average age of employees increases productivity, but after age 45, it has a negative effect, creating an inverted U-shape.
3. Growth in the average length of service of employees continues to increase corporate productivity, not in an inverted U-shape but in a straight line with an upward slope.
4. We also analyzed the impact of aging on productivity by company age. For relatively young companies (up to 50 years old), years of service plays a more important role in productivity than the average age of employees, but for relatively older and mature companies (over 50 years old), the average age of employees plays a more important role in productivity. However, no significant relationship could be confirmed between longer average years of employment and increased productivity. The effects of average employee age and average length of service on productivity are thought to vary depending on company attributes such as company age.
5. Innovations captured in patents can be characterized by quantity (number of patent applications), quality (number of citations within 5 years after filing), novelty (number of AI and robot patent applications), and scalability (past and current patent portfolios). (Issuing patents in new fields rather than similar ones), the rise in the average age of employees makes a positive contribution, while the longer years of employment have a negative effect.
6. Both the average age and average years of employment of employees have a positive relationship with increases in average wages, but the age effect is larger than the effect of years of employment.
Bottom Line: Because longer years of service greatly contribute to the productivity of companies (especially relatively young companies), the aging of employees with longer years of service may not reduce productivity. It is important that we emphasize that the key factor here is the length of service in a company, so older employees who do not have as much "time in grade" at a firm may have different productivity outcomes.
There are, of course, factors that were not addressed in this study, including the role of future technologies such as AI, which may impact overall productivity and the relative productivity of employees with different levels of experience and knowledge. With the ability to remove a lot of busy work, allowing employees to concentrate only on what matters, AI may accentuate the value of tenured, experienced, older employees even more. We'll just have to wait to see how this plays out.
Link to original study: https://www.rieti.go.jp/jp/publications/nts/23j036.html
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Article originally published in Steve's LinkedIn Newsletter HR Asia October 2, 2023
3 min readIn today's global economy, businesses need to be able to find and hire the best talent from all over the world. This can be a challenge, but it's essential for businesses that want to stay ahead of the competition. Retaining Kestria gives you a significant edge in the war for talent. Our global network, deep expertise, and proven track record of success will help you attract and retain the best talent.
Talent acquisition is the process of finding, attracting, and hiring the best people for your business. In a global context, this means being able to identify and recruit talent from all over the world.
There are many reasons why businesses need to think globally when it comes to talent acquisition. One reason is that the world is becoming increasingly interconnected. This means that businesses need to be able to compete in a global market, and they need to have the best people in the world to do that.
Another reason is that there is a shortage of talent in many countries. This is especially true in the tech industry, where there is a high demand for skilled workers. By expanding their talent search to other countries, businesses can find the talent they need to succeed.
Kestria has a deep understanding of the global talent landscape, with partner offices in 40+ countries and the ability to conduct in-country and cross-border search assignments. This allows us to help businesses identify the best talent pools to fit their needs.
Some of the factors that businesses need to consider when assessing the global talent landscape include:
There are a variety of strategies that businesses can use to acquire talent from all over the world.
Some of the most common strategies include:
There are many challenges that businesses face when trying to acquire talent from all over the world. Some of the most common challenges include:
This article has discussed the importance of talent acquisition in a global context, the challenges businesses face when trying to acquire talent from all over the world, and the strategies that businesses can use to overcome these challenges.
Kestria can help you with all of this. We have a global network, deep expertise, and a proven track record of success in helping businesses acquire the talent they need to succeed. Our team of experienced talent acquisition professionals can help you identify the best talent pools for your needs and develop a strategic approach to talent acquisition to your advantage.
Steven B. McKinney
Article originally published in Kestria September 13, 2023