WBCSD & Let's Work Global Partnership - Meeting the skills gap
- 1. Meeting the skills gap: Lessons from the private sector Best practices of WBCSD members in emerging markets Overview presentation, January 2015
- 2. Challenge: Meeting the skills gap • Skills mismatches: one of the major constraints for the private sector to create more and better jobs • 45+ million job seekers entering the labor force each year • By 2020: Global surplus of 90-95 million low-skilled workers Global shortage of 83-85 million high- & mid-skilled workers
- 3. Challenge: Meeting the skills gap • Situation particularly delicate for companies operating in emerging markets • Triple challenge: Rapidly find a large number of employees with the right set of skills Insufficient quality and quantity of goods and services provided by their suppliers Very often high rates of unemployment and informal jobs in the surrounding communities, particularly among youth
- 4. Business case for skills & employment • High levels of unemployment and vulnerable employment Drive social exclusion and inequity Prevent potential workers from productively engaging in the economy Depress consumption Generate social tensions (and often anti-business sentiment) Create additional drain on national economies with consequences for government policy, social welfare provision costs, taxation etc. • Shortages of appropriately skilled people Reduce the employability of the unemployed Create problems in terms of cost, quality and delays for companies Slow business growth and innovation
- 5. Case study collection Workforce development Value chain development Community development Increasing skills & employability through:
- 6. Case study structure 1. Company background 2. Skills gap addressed 3. Company solution 4. Results 5. Challenges 6. Key success factors
- 7. ITC case studies • Vocational training program to increase employability in rural areas in India 2,500 youth trained for manufacturing services sectors since end of 2013 (25% girls) Aim: 10,000 / year • ITC Hospitality Management Institute Meeting India’s tourism industry growth with skilled manpower 60 managers graduating each year
- 8. SABMiller case study • 4e Camino al Progreso enterprise development program Working across its chain of small retailers (tenderos) in Latin America Business skills, mentoring, networking to enhance sales growth, retailer loyalty, reduce costs & risks Targeting 40’000 tenderos across 6 Latin American countries by 2018 – and 190,000 by 2020
- 9. Vale case studies • Valer training program – workforce development in northern Brazil 820 engineers and geologists trained in 5 years in partnership with universities 11,700 young students trained 2008-2011, about 2/3 hired by the company • Inove local content development Support the development of local SMEs and provide their managers with relevant skills (finance, strategic planning) to meet Vale’s procurement needs 500 SMEs supported, more than 4,000 people trained Expansion beyond Brazil (Mozambique)
- 10. Road ahead • Collect & analyze data focused on the actual impact (incl. ROI for the company) of investing in education, training, and skills development programs • Second phase of WBCSD-Let’s Work collaboration to focus on gathering information related to costs, benefits, and overall value created through individual company initiatives • WBCSD to continue skills & employment agenda within its Action2020 platform
- 11. More information Download the brief at www.wbcsd.org/social-impact.aspx Filippo Veglio Director, Social Impact WBCSD veglio@wbcsd.org