Global Workforce Forecast - Airbus

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Global Workforce ForecastGlobalWorkforceForecast2019 / 2029 - release 2

INTRODUCTIONAre you interested in an integrated view from Airbus Transformation driversincluding mega trends and demographic overview, to the main Human Resources(HR) current practices and current evolutions? If yes, this book is just for you! Thebook delves into the main assets of the company, its Human Capital and how tosecure its continuous positive growth and its full engagement through the Airbustransition as a new worldwide Industry 4.0 and as a new technology company.The ambition of the Global Workforce Forecast is to provide all employees withrelevant data, information and analysis to better understand, anticipate andprepare the evolution of our company competencies. As employees worldwide,you are actors of this opportunity and you are encouraged to engage your ownrelevant development actions such as learning, mobility, knowledge management.As leaders, you could maximise usage of the HR levers (recruitment, employmentmarketing, learning, knowledge management ) presented here with the actorsthat could support your projects.This book is structured into 5 main chapters: Megatrends, Demography,Competence Strategy, Resource Development levers and practices, and theevolution of Resource Development levers.It is not the strongestor the most intelligentwho will survive butthose who can bestmanage change.Charles DarwinBy reading these 5 chapters, this book will give you the means to understand: the main challenges our company is facing in a volatile, uncertain, complexand ambiguous world worldwide and internal demographic evolutions to better prepare our futureworkforce how Airbus competence strategy, in a five year timeframe, is supporting thebusiness strategy by analysing how jobs and competencies are impacted byfuture evolutions and setting up all necessary actions how Airbus manages and enhances HR levers to contribute to companybusiness objectives for today and tomorrowAs an employee, a manager, an HR leader or expert, please take a moment to readthis Global Workforce Forecast to acquire rich information and analysis that willhelp you better anticipate, deliver, accompany our company transformation, and ofcourse to bring out the best in you!

petencestrategyHR leverspractices06HR leversEvolution

01EXECUTIVESUMMARY

80%of our staff will begenerations Y, Zin 2027Our world is facing an ever-increasing paceof global change and has been labelledas Volatile, Uncertain, Complex and Ambiguous(VUCA). This world brings a high number ofchallenges and opportunities to our company:a competitive environment in a globalisedand financially driven economy, a permanentincrease in customer expectations, reputationalchallenges, the need for Airbus to dealwith innovation mostly because of digitaltransformation and the development of industry4.0, generational gaps and demographicchanges considering that 50 000 employees willleave the company in the next 10 years and 80%of our staff will be generations Y, Z in 2027.These fast approaching transformationsare conveying risks and challenges,but bring great opportunities if well anticipatedand prepared with full engagementof the whole organisation and all employees.It is our company responsibility to putin place appropriate means and levers helpingmanagers and employees to adapt our mainasset, “human capital” and make the most of itfor a successful future with a Growth Mind-Set.GWF OVERVIEW AND OBJECTIVESGlobal Workforce Forecast is a study launched in 2018having the ambition to show and analyse the evolutionof populations in the world and workforce within Airbus.The purpose of this study is to give a robust andconsistent frame of reference to every reader in order to: Access relevant data, information and analysisin a synthetic format Get a better understanding on the current and futureworkforce evolution Get a better understanding on the current and future HRlevers supporting competence developmentfrom the organisation, team, and employees Enable him/her to integrate these elementsin their own decision making processMEGATRENDSMegatrends are transformative, global forces that shapethe future world with their far reaching influenceson business, societies, economies, cultures and personallives. Megatrends impact all regions in the worldand all actors and organisations on a large time scale.We have selected 6 Megatrends: Economic Globalisation Resource Scarcity and Climate Change Global Governance Demographics and Social Evolution Innovation and Technologies New consumption patternsThe identification and understanding of Megatrends areessential for our company to get a clearer visibility of futurebusiness risks and opportunities and as a result to betteradapt the “human capital” of Airbus. As such, Airbus hasalready started to take into account Megatrends impactsin a high number of projects.GWF references specific examples in these areas: In the frame of the sustainable development goalslaunched by the United Nations, Airbus has takenresponsibility on 8 chapters such as: climate action,stronger institutions, innovation or infrastructure To face climate change, an international objective seeksto limit the rise in average global surface temperatureto 2 C requiring the world to cut carbon intensityby 6,5% every year. Airbus has integrated this objectivewithin its strategy by developing eco-friendly aircraft.For example, the RACER aircraft combines increasedspeed and better cost-efficiency with dramaticreductions of carbon emissions. This aircraft will belaunched in 2019. In a more and more digitalised world, with 90%of the world’s data created in the last 2 years, Airbusis fully engaged in digitalisation by constantly developinghighly connected products and services. In 2017,our company launched Skywise, a new digital,hyperconnected and highly secure core systemto gather data at the scale of the whole aviation industryin order to improve major aviation players’ operationalperformance and business results.90%of the world datacreated in the last2 years

DEMOGRAPHYDemography describes, analyses and explainsthe population structures. The composition of the populationconsists of groupings which differ from each other by certaincharacteristicsDemography development in the company includes:Age structure, Generation/age groups, Gender, Leaversper job, Retirement, NationalityThe demographic development and its impact,on companies, mainly involve the following: The baby boomers are about to retire Digitalisation and new technologies must be introduced Employee hiring becomes more difficult in certain fastgrowing domains (war for talents) Employee hiring for suppliers becomes even more difficult Keeping the employee in the company requiresnew roles and modelsThe way forward for demography is: Building of awareness with data, facts, forecasts, graphsand explanations Building with demographic data, development is createdfor the next 5 to 10 years. Based on this, a conclusion for the reoccupationof jobs, e.g. from retired employees can be reached. Knowledge transfer and training planning can becreated based on the demographics development. In conjunction with the workforce and workload planning,a clear picture of employee recruiting can be built. A better overview of the functions for long-termpersonnel planning and recruitmentDemographic development should not be seenas a problem; but rather an opportunity to take our futureon a new path. New technologies, different ways of working,different processes, new ways of thinking, new working timemodels, new employees, and all this combined withthe demographics in which different generations worktogether.We must be on the right track!COMPETENCE STRATEGYThe Airbus competence strategy is a companyapproach which aims to support the business strategyimplementation in a 5 years time frame and to accompanythe 5 Airbus business drivers: Boost our existing core business Be a digital aerospace champion Be a responsible company Be the global company of choice Shape the future of flightThese business and competence strategies and driversintegrate internal company evolutions, worldwide externaltrends, also called Megatrends, and the risksand opportunities derived from themThe competence strategy objectives are consequently to: Assess external and internal evolutions and their impactson jobs and competences Set-up recommendations and actions to accompanythese jobs and competence evolutions and reshaping Deploy all Resource & Develop actions to be taken byHR, Academies, managers, employees to systematicallyserve our future needs Provide visibility to all employees on what will bethe competencies needed in the next yearsfor our businessThe 2018-2023 competence strategy is structuredinto 18 cross-divisional and cross-functional strategicaxes, such as Digitalisation, Agile methodology framework,Health & safety and environment, Quality excellence,new products & services & Go to market Each of these axis are delivering: main objectives in term of competencies recommendation of actions; these recommendationsbeing a strong input for the HR Resource and Developaction plan identification of emerging jobs & competenciesThe competence strategy is a fundamental productfor all HR processes and specifically to prepare and guidethe Resource Review process, in order to securethat the future competence needs are addressed withconcrete actions.

COMPETENCE STRATEGYRESOURCE DEVELOPMENTLEVERSThe main HR levers are: competencies referential and mapping demographic analysis recruitment, mobility early careers learning knowledge management employment marketingThese levers address all dimensions of competenceevolutions: Emerging, evolving, declining competenciesand jobs.The Competence Strategy and the ResourceReview are the 2 main enablers to give perspectiveand consistency on the implementations of HR levers: A well structured and shared Competence Strategy isessential to act by using the most appropriate combinationof HR levers to answer business evolution needs. The Resource Review, which is a quantitativeand qualitative overview about the competenciesand resources needed to build concrete action plansfor each HR lever, is a way to engage key decisionmakers on this topic via regular analysis and reviews:organisation leaders, HR Business Partners and HRexpert representatives. It is important for these peopleto understand well all potential behind each of the HRlevers and behind their appropriated combination.Obviously, HR levers must also be properly anticipatedand used by team leaders and by employees to maximisethe potential of adaptation and growth for the benefitof the organisation.The potential and flexibility of these HR leversare increasingly significant thanks to digital models,new consumption patterns and continuously evolvingtechnical features.We are convinced that once all decision makers arefamiliar with HR potential levers, our collective intelligencewill generate very high capabilities in addressing futuretransformation challenges.In this study, we will not address the make or buydecisions models as it is a strategic element of decisionsin the hand of business leaders. We will focus on the wayto address the Make aspect.THE EVOLUTION OF HR RESOURCEDEVELOPMENT LEVERSHR capabilities are evolving, as in many other disciplinesthanks to new technologies and associated socialevolutions. They are becoming much more flexible,user centric, accessible worldwide and for all. For twoyears, Airbus PULSE HR programme has boosted thesetransformations. In this study, we will concentrate on theelements supporting HR levers evolutions.Some PULSE foundations are crucial, such as the strongwillingness to empower and to encourage all employeesin getting the best of HR levers by drastically limitingadministrative and manager validations. For example, most ofDigital Learnings are accessible by all employees anywhere,any time, without manager’s validation. Another exampleis the willingness to encourage leaders in adapting leversusage to their business pace and environment. There isno longer an annual review of all competencies and learningneeds since, today, leaders and employees should do itfor their own benefit at their own rythm.The learning models are the ones progressing fasterworldwide considering Digital accessibility, short richmedia, MOOCs, and in the near future Augmented Reality/Virtual Reality and Artificial Intelligence potential. Obviously,these are the most advanced and visible transformationswith a promising future for Airbus worldwide. Airbus takesinto account these evolutions and has reached 350,000e-Learnings in 2018.has reached350000e-Learningscompleted in 2018

Airbus hasrecruited6 300newcomersworldwide in 2018The recruitment models are also evolving rapidlywith the ever increasing importance of Business Socialnetworks, data analytics and advances in artificialintelligence, not to mention the expectations of the newgeneration entering the workforce. Having a more candidatefocused and flexible selection process for both internalmoves and external recruitments are key expectationsthat our recruitment models have to take into account.These considerations are especially true since Airbus hasrecruited 6,300 newcomers worldwide in 2018. 5,750 areplanned in 2019.HR data analysis is another interesting innovation. Indeed,it helped to identify all position moves over the last 8 yearsin the company and now, it enables to project these movesin a professional opportunities presentation accessibleto all employees. Each employee can project from his currentjob the most relevant future jobs in his/her currentorganisation and his/her current domain of competenceand in any given location. Employees get a description,the required competencies and the existing open positionson their potential future jobs they have identified.Then, how do you ensure all actors and employees makethe most of these means and evolutions? Let’s try to getan overview via GWF.TO GO FURTHERIn a VUCA world, GWF provides elements of understanding to arise awareness on rapid and important workforcechanges in perspective of business context. All the followingchapters will guide every reader to better learn, acquire,adapt, and put in place relevant actions for himself/herselfand his/her organisation by using efficiently all leversand processes related to Resource & Develop. It shouldhelp globally to understand how Airbus is preparingits evolution with innovative HR levers and with engagementof all employees based on our company values.We are One/Team PECTWe encourage eachreader to activelyconsider informationcaptured in GWF. Onesimple way could beto formalise for youonly or for sharingthe actions you wouldengage to progresson the subject, bywriting on a simpletable “What I will doin next 3 days? then innext 3 weeks, in next 3months and perhaps innext 3 years”

02MEGATRENDS

MEGATRENDS, GLOBAL FORCESIMPACTING AIRBUS STRATEGIESECONOMIC GLOBALISATIONThe term “megatrend” was created by John Naisbitt,a U.S. trend researcher, in his book of the same namepublished in 1982. He defines Megatrendsas transformative, global forces that shapethe future world with their far reaching influenceson business, societies, economies, culturesand personal lives.Economic globalisation is the intensification andacceleration of the mobility of goods, services, capitaland people at the world scale. It impacts all countriesand involves a strong increase in international tradeand a growing interdependence between nationaleconomies.Megatrends are characterised by their large and powerfulimpacts: On all regions in the world and all societal subsystems(politics, society, economy) On all actors (individuals, governments, corporations) On a large time scale (over decades)ILLUSTRATIONS6 Megatrends can be identified: Economic Globalisation Resource Scarcity and Climate Change Global Governance Demographics and Social Evolutions Innovation and Technologies New consumption patternsHow do these Megatrends impact Airbus strategiesand how can Airbus take advantage of these Megatrendsto better prepare the future?The objective of this chapter is to give for each Megatrend: A deep understanding of the Megatrend concernedby proposing each time a definition, illustrations and keyfigures An Airbus case to highlight how these Megatrendsconcretely impact Airbus strategies.DEFINITIONWhat are the visible effects of Economic Globalisationin the world? Economic interconnectedness Globalisation of services A more vulnerable process of globalisation ledby an ‘economic G3’ BRIC the new powerhouse, MINT and beyond Changing balance and shift of economic powerto the East and South Selective de-industrialisation Industry redefined automation, smart and green Right shoring Balkanisation of finance: a fragmented banking systemevolving in a systematic risks environment Rise of protectionist and nationalist policiesKEY FIGURES63%Percentage of global tradein the worldwide GDP rateGlobal trade as a share of GDPincreased from 40% to 63% between1990 and 2011 and global growthin trade is projected to continueat approximatively 5% annuallythrough to 2030.40%01990 20115%global growthannually throughto 2030

55%The part ofdeveloping countriesin global tradein 2050Distribution of countries/continents in global tradeOther10%Airbus Helicopters example: right-shoring as a partof Airbus strategy.Europe15%IndiaAN AIRBUS SPECIFIC CASEUSA17%26%China28%Japan4%Right shoring is a process aiming at achieving high levelof efficiencies and productivity by outsourcing simpleactivities while retaining complex processes andcore business at core countries level.International FALs (Final Assembly Lines)Right shoring is part of the Airbus Helicopters industrialstrategy transformation.OffshoringRESOURCE SCARCITYAND CLIMATE CHANGEDEFINITIONRight shoringOnshoringNear shoringTo do so, right-shoring is the optimised combination of: Off shoring: the moving of various operationsof a company to another country Near shoring: similar to Off shoring, however, to a nearbycountry (often sharing a border) On shoring: the moving of activities which have beenmoved to another country back to the countrywhere it was originally locatedHumanity is facing two main environmental issues:climate change and resource scarcity. Climate change refers to the rise of averagetemperatures on Earth and its negative impactson our ecosystem as a whole mostly due to humanactivities. Resource scarcity highlights the lack of natural resourcesneeded for human activities, due to climate change andalso to the increase of human activities requiring more andmore resources. This gap between the resources neededand the resources available creates hard pressure whenhumans want to have access to natural resources.

ILLUSTRATIONSIn 2017, an equivalent of 1.7 Earth is needed tosatisfy human needs.What are the visible effects of Resource Scarcityand Climate Change in the world? Increase of raw material cost Strain on natural resources Water, food, arable land and energy pressure Energy shift Alternative energies US energy independence Global warming Sustainable development & standards Ecosystem at risk Increasing CO2 emissions Right to operate, regulations Efficient utilisation of resources and social responsibility Growing nexus of climate change and competitionfor resourcesWith a warming of2-3oCAmazon rainforest dry upRisk ofextinctionfor 20-50%of scenario10Irreversiblemelting ofGreenland ice3-4oC21,510,50-0,5 196119711981199120012011AN AIRBUS SPECIFIC CASEKEY FIGURES200020502100Temperature riseTo stay within 2 C, the world needs to cut its carbonintensity by 6,5% every year to 2100.With a warming ofAirbus Helicopters exa

MEGATRENDS _ Megatrends are transformative, global forces that shape the future world with their far reaching influences on business, societies, economies, cultures and personal lives. Megatrends impact all regions in the world and all actors and organisations on a large time scale

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