Key Insights Into The Global Workforce From Kelly THE .

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THE COLLABORATIVEWORKENVIRONMENTKey insights into the global workforce from Kelly

/2Contents

/3INTRODUCTIONIntroductionIs there a key workplace factor that would improve both a company’s profitability and their abilityto attract and retain top talent?Collaboration is becoming just that factor for today’s companies. Recently, nearly three out offour North American C-suite executives agreed that their organization would be more successfulif employees were able to work in flexible and collaborative ways. And more than half ranked acollaboration-related measure as the number one factor for their organization’s overall profitability.1Meanwhile, critical millennial talent—the largest generation in the labor force—stands out withan above average desire to work in a collaborative environment. With skilled candidates in shortsupply for many industries, it’s important for employers to understand that the collaborativework environment is attainable, and can become a strategic opportunity to foster workerengagement, and capture a competitive advantage.As a pioneer in the staffing industry, and in the study of workforce preferences, Kelly takes ahigh-level look at collaboration as it pertains to the global worker today. In addition to analyzingworker preferences and psychographic insights based on survey data from the 2015 and 2014Kelly Global Workforce Index (KGWI), this report pulls insights from Kelly Free Agent research(2015) survey data and other research sources. Unless otherwise noted, all statistics come fromrecent Kelly workforce research data.Visit kellyservices.com for additional reports, articles, and insights.

/4COLLABORATION AND EMPATHY AS DRIVERS OF BUSINESS SUCCESSCollaboration and empathy asdrivers of business successHiring talent with the closely related skills of collaborationand empathy, and creating an environment that nurtures andencourages these skills, is critical to business success.EmpathyA deep emotional intelligence thatis closely connected to culturalcompetence, empathy enables thosewho possess it to see the world throughthe eyes of others and understand theirunique perspectives.2CollaborationCollaboration is defined by highlydiversified teams working togetherinside and outside a company withthe purpose of creating value byimproving innovation, customerrelationships, and efficiency.3Enhanced recruiting and retention: Strengthens employer brand Has greater appeal to millennials, improving bothrecruitment and retention Encourages a more diverse talent pool by promotinginclusive decision-making Results in higher engagement of talent from a greatersense of satisfaction, belonging, and trust in co-workersand managers when given opportunities to contribute/participate in collaborative activities Improves employee health and wellnessTop and bottom line returns Higher knowledge worker productivity Increases top line revenues Improves profitabilityImproved new product development Consumer-centric design Faster time-to-market Improves innovationAll 100 companies on the“Best Company to WorkFor” list have one thing incommon: a collaborativework environment. Keyexamples include: Google ,Microsoft , Accenture,Edward Jones , and CHGHealthcare Services.4

LEAD“Change is constant. Problems are global. Information is atour fingertips. In the era of Wikipedia , does it really matterhow much you can memorize? What’s more important isthat you can take the perspective of others—whether you’redesigning a new technology, or negotiating, or anticipatingthe uncertain. Indeed, how well we do—whether in theclassroom or the boardroom—depends more than ever onhow well we forge and navigate relationships. In this way,empathy is the new literacy: essential for us to communicate,collaborate, and lead.” —Stuart Foundation5

/6BUILDING A COLLABORATIVE CULTUREBuilding a collaborative cultureCORE BUILDING BLOCKSLEAD FROM THE TOPMcKinsey found 89 percent of variance betweenstrong and weak organizations, in terms ofleadership effectiveness, driven by four traits:6TRAIN ALL TALENTDon’t just train full-time employees1. Being supportive Help smooth out generational work styledifferences and bust generational myths2. Seeking different perspectives3. Solving problems effectively Critical soft skills include listening, empathy,and communications skillsTraining/development programs are importantto attracting 66 percent of global talent.4. Operating with strong results orientationHaving an open door policy helps, as doestransparency into corporate strategies and goals.BUILD/UTILIZE DIVERSE TEAMSFor all mission-critical decisions and projects,engage teams that cross:COLLABORATIVE TECHNOLOGIESPlay a supportive role to cultural buildingblocks that can help drive better outcomes Talent categories (employees, independentcontractors, partners) The McKinsey Institute projects 20% – 25%improvement in knowledge worker productivitythrough fully connecting talent via socialnetworking technologies7 Functional areas Demographic factors (age, ethnicity)Keep teams to a manageable size, and useintelligent workforce design to support formaland informal collaboration. Leverage video conferencing (stillunderutilized) for face-to-face contact tosupport “presence” when absentInnovative enterprises make creating a collaborative work culture a top priority to compete effectively in rapidly changing andvolatile market conditions, updating older ways of thinking about collaboration as activity-based or “extra” work.CULTURE SHIFTCollaboration skills are a new currency in the age of career resilienceand employability: skill building and training development becomepart of a compensation packageFresh ideas cross-pollinate across silos and boundaries of anorganization (via partners and vendors) along with stimulatingdebate through greater trust and communicationRecognition and reward for collaborative (versus competitive)behaviorsA culture that is truly supportive of empathy and collaboration requires constant nurturing, and leadership from the top.IMPROVED OUTCOMESStronger employer brand to attract andretain highly skilled, diverse talent—especially millennials and those withprofessional/technical (PT) skill setsMore engaged talent, offeringdiscretionary work effort andincreased productivityFaster time-to-market for improvedmarket positionFortified organizational and talentresilience to market fluctuationsand changes“Efficient ongoing collaboration has a fundamental impact on business innovation, performance, culture, and the bottom line.”1The key is efficient collaboration—make sure your collaborative culture is a smart one that doesn’t overload top collaborators!Top and bottom line returns inrevenue and profitability

/7TALENT PERSPECTIVE ON EMPLOYERS’ COLLABORATIVE CULTURETalent perspective on employers’collaborative cultureCompanies can do better. Just over half (52percent) of global workers feel that theircurrent or most recent employer’s (physicaland virtual) workplace promotes collaborationand inclusion; 47 percent believestheir organizational structure promotescollaboration and inclusion. Given thestrong business case for a collaborative workenvironment, there is room for improvement.According to the 2015 and 2014 KellyGlobal Workforce Index, global talent citescollaborative measures, as well as some of thepossible outcomes from collaboration, such asimproved engagement.As companies adopt more collaborative structures, processes,and supporting technology over time, engagement may increase.46%39%38%46% say their current/mostrecent manager continuallyfosters and encourages aculture of engagement39% of global workers feeltotally engaged, up from31% in 201438% of global workers saydiversity is an attractionfactor, up from 28% in 2014Collaboration promotes higher knowledge worker productivity,the exchange of ideas, and alignment of action.57%42%57% of workers want theopportunity to work withcolleagues who are recognizedas knowledgeable and fromwhom they can learn, up from46% in 201442% say their current/most recent companymakes special efforts toretain innovators and keyknowledge workers

/8TALENT PERSPECTIVE ON EMPLOYERS’ COLLABORATIVE CULTUREGenerational insight*Talent perspective on employers’collaborative culture (continued)51%Innovative processes and opportunities may improve the speedand outcomes of product and service development.Millennials83%45%50%37%83% feel it’s importantto work for aninnovative/progressivecompany45% want theopportunity to innovate/work on innovativeprojects and initiatives50% say their current/most recent employerembraces innovationand change37% cite the opportunityto innovate/work oninnovative projects andinitiatives during workhours as a key work-lifedesign elementGlobally, just over half of millennial talent say theircurrent/most recent employer’s organizational structurepromotes collaboration and inclusion, versus:45%Collaborative work cultures seen as progressiveGen XA collaborative work environment is not the status quo,at least not yet. With eight out of 10 global workers keento work for an innovative/progressive firm, organizationscould simultaneously improve business outcomes whileattracting and retaining the best talent.*See p. 18 for more generational insight.43%Baby Boomers

TOP FACTORS OF AN IDEAL WORK ENVIRONMENT LEAD TO A COLLABORATIVE CULTUREHighly collaborative environment(cross-functional teams)4 out of the top 5features of an idealwork environmentare those thatsupport acollaborative workenvironment57%Flexible work arrangement such as remote workoptions, flexible schedules/hours54%Exposure to latest technologies andtop-notch equipment44%Culture of innovation and creativity; where thestatus quo is challenged39%37%Virtual teamsTraditional work arrangements;9 – 5 schedules for all32%Rapid pace with constant change32%29%Matrixed organization structureTraditional hierarchical organization structureCompetitive; where rewards and risks are highHighly individualized work with limited teamwork;limited opportunities to collaborate27%21%18%ScienceFeatures of an ideal work environment cited byglobal talent (the global average), by percent:InformationTechnologyWhen asked what constitutes their ideal workenvironment, global workers paint a pictureof a collaborative culture. Four out of the topfive features of an ideal work environmentare those that foster, directly and indirectly,an environment of collaboration. In particular,professional/technical talent stands out with anabove average appetite for these aspects.Those with professional/technicalskill sets weigh in on collaborativework environment factors above,below, or on par with the globalaverage, by percent:Finance &AccountingTop factors of an ideal work environmentlead to a collaborative 63%56%48%39%48%51%43%39%56%30%A matrixedorganization, the8th top feature,could alsocontribute to acollaborate workenvironment

FRESH“With collaboration comes the chance for fresh thinking toemerge and disparate skills to be utilized, which can improvethe way your company does business—often in unexpectedways and from unexpected sources. That’s why a reliabletalent supply chain is so important. It can help ensure that youmaintain a consistent business footprint, which is especiallycritical when you are faced with unexpected challenges thatrequire cost-effective solutions.”—Mark Lanfear, KellyOCG Global Practice lead, Life Sciences 8

/11 THERE ARE STILL CHALLENGES TO ESTABLISHING A COLLABORATIVE ENVIRONMENTThere are still challenges to establishinga collaborative environmentEffective teamwork makes everyone lookbetter, but change can be hard. Collaborationcan initially be uncomfortable. When puttingtop talent together with varying arrangements,workers can be resistant and overlook learningopportunities because they feel competitivewith each other. But if workers can adjust tothe culture of collaboration, the benefits canbe extraordinary.While 53 percent of organizations areconfident that collaboration is having apositive and tangible impact, a significantminority (20 percent) isn’t convinced. Partof this may be due to the fact that making amajor commitment to collaborative workingand effective teamwork is a new challengefor many organizations.1 And, companieswhose culture fosters collaboration may notbe effectively tracking the impact on topcollaborators and the risk of having themexperience burnout, lower engagement,and attrition due to collaboration overload.

/12 THERE ARE STILL CHALLENGES TO ESTABLISHING A COLLABORATIVE ENVIRONMENTThere are still challenges to establishing acollaborative environment (continued)ChallengesAs organizations grow and adapt to current market conditions, new workarrangements have emerged that span the talent supply chain, including remoteand geographically disparate teams, independent contractors, and other flexiblearrangements. At the same time, organizations continue to attempt to do more withless, expanding workloads, and shrinking budgets. All this adds to the challenge offostering a collaborative environment.Specific challenges include: Breaking down entrenched knowledge and management silos Moving beyond collaboration’s “messiness” and reputation for beingtime-consuming Managing different work arrangements and styles within the same team Sharing a team reputation when it hinges on everyone in that team Changing the rules of engagement that might have worked for some talent Finding people with the right soft skills that demonstrate the ability to collaborate Ensuring that collaboration is used effectively to drive business results, rather thanbecoming an excuse for meeting overload; talent should be pulled in to meetingswhere appropriate, and only when their contacts, insights, or information cannotbe obtained in a briefer, less formal, or more effective manner9OpportunitiesCollaboration can re-invigorate organizations by fully engaging employees, improvingretention, and increasing innovation. Even with all the known benefits of collaboration,many organizations feel pressure to keep the status quo. To move towards a morecollaborative environment to reap the benefits, consider these approaches: Benefits must be clear and defined: how something can be done better togetherthan separately has to be transparent Leadership—organization and team leaders—must nurture, encourage, and rewardcollaborative behaviors Make the investment, whether in collaborative technology or with support people,to move projects along between working sessions Track outcomes from collaborative efforts and showcase the return on investment

/13 SOFT SKILLS—WITH COLLABORATION SKILLS—ARE SOME OF THE MOST CHALLENGING SKILLS TO FINDSoft skills—with collaboration skills—aresome of the most challenging skills to findDespite all the talk about hard skill needs,soft skills are increasingly critical in a dynamic,global marketplace. Social Intelligence—theability to get along well with others and getthem to cooperate with you—is at the heart ofsoft skill development. Of five key soft skills, professional/technicalhiring managers most frequently cite theability to listen/comprehend (81%) and 72%claim that teamwork/ability to collaborate iscritical (significantly higher for engineeringtalent, at 85%)Six out of 10 professional/technical hiringmanagers, across all professional/technicalsectors, say they have the hardest time findingcandidates with the right combination of hardand soft skills. For underqualified candidates, 27% ofprofessional/technical hiring managers reporta lack of teamwork/ability to collaborate;again, especially for engineering talent (40%)Most challenging skills to find in candidates13%Hard skills14%Soft skills60%Right combo of hard/soft skills13%Corporate culture fit

/14 SOFT SKILLS—WITH COLLABORATION SKILLS—ARE SOME OF THE MOST CHALLENGING SKILLS TO FINDSoft skills—with collaboration skills—are someof the most challenging skills to find (continued)Essential competencies to be hired at members’ organizations(response from 52 members)In a survey of its members, the Committee forEconomic Development said that two of thetop four competencies most needed, and mostdifficult to find in the workplace, are “the abilityto work with others of diverse backgrounds” and“teamwork/collaboration.”10Problem solvingAbility to work with others of diverse backgroundsCritical thinkingTeamwork/collaboration Essential: applicant is unlikely to be hired atmy organization without a high level of skill orknowledge in this areaOral communicationOrganized/ability to prioritize Very important: high levels of skill or knowledgein this area are not absolutely required butstrongly increase the likelihood of being hiredWritten communicationProficiency with new technologiesQuantitative ability/numeracyCreativity/innovationSTEM skillsTechnical skillsMedia literacy0%20%40%60%80%100%

/15 COLLABORATION AND THE BOTTOM LINECollaboration and the bottom lineCollaboration is seen as a direct factor inprofitability. According to a Google for Workand Raconteur 2015 study of North AmericanC-suite executives, 73 percent of respondentsagreed that their organization would be moresuccessful if employees were able to work inmore flexible and collaborative ways.1The respondents of Google for Work’ssurvey were defined by four categories: Pioneers (18%) are staff that work inthe same way they live, with technologyplaying a vital part in operations as well ascollaboration and agility Believers (34%) have begun working newtechnologies into their business model Agnostics (27%) are businesses that areslow to implement technological changesacross the workplace Traditionalists (21%) are organizations thatuse basic technology, but that are still highlyhierarchicalHow confident are you that collaboration between employees andteams has a positive and tangible impact on your organization?1 Not confident at all7 Very 31%49%Agnostics35%TraditionalistsSource: 2015 Google and Raconteur study57%28%36%

/16 COLLABORATION AND THE BOTTOM LINECollaboration and the bottom lineSpecifically, 56 percent of respondents rankeda collaboration-related measure as the numberone factor for their organization’s overallprofitability. The top three factors were allrelated to collaborative skills.The same study found that the moretechnology focused and tech-savvy thecompany, the higher their confidence level inthe direct correlation between collaborationand improved financial results.(continued)Which of the following changes have the biggestimpact on an organization’s profitability?RankedFirstEmployees working together more collaboratively in personBetter communication between teams14Responding more rapidly to market opportunities912Developing a stronger culture of innovation912126More collaboration internationally145Improved sharing and understanding of data20%75714Utilizing existing talent more effectivelyUsing and integrating technology better8121284715Open innovation/joint innovation with external partnersThird520Changing the way employees are managedSource: 2015 Google and Raconteur studySecond16171151271410%20%30%40%50%

IMPACT“Efficient ongoing collaborationhas a fundamental impact onbusiness innovation, performance,culture and the bottom line.”1

/18 MILLENNIALS WANT A COLLABORATIVE ENVIRONMENT MORE THAN OLDER GENERATIONSMillennials want a collaborative environmentmore than older generationsCollaboration does not come naturally formost employees, particularly those bornbefore the millennials.11 Older generationscame up in careers where competition wasgood and individual efforts were rewardedwith career advancement. This environmentcreated management and knowledge silosthat put a drag on organizational agility andinnovation—capabilities now critical in a highlyfluctuating market environment.A collaborative approach can help breakd

below, or on par with the global average, by percent: Engineering Finance & Accounting Information Technology Science A matrixed organization, the 8th top feature, could also contribute to a collaborate work environment Features of an ideal work environment cited by global talent (the global average), by percent: 4 out of the top 5

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