1. 1 #NATIONALISATION 2.0 The Road Ahead David Jones & Radhika Punshi The Talent Enterprise 1 david@thetalententerprise.com www.thetalententerprise.com www.linkedin.com/company/the-talent-enterpriseFollow us on linkedin & twitter for more regular updates!

2. About The Talent Enterprise We are a Think and Do tank dedicated to the advancement of human capital in the Arab World and broader emerging markets. We focus exclusively on employability, talent and leadership opportunities, with a key emphasis on national talent, including female and youth inclusion. We have a dual focus on being research-led and action- orientated, promoting evidence-based practice in the region. We partner closely with policy makers, employers and educational institutions seeking to get the best out of their people and organisations. As an inter-disciplinary, multi-lingual team of professionals, our team has diverse backgrounds and expertise in HR, leadership, psychology, research and statistics, psychometrics, behavioural economics and education. We build regional solutions. As an example, we have developed the regions first psychometric suite of tools through a process of extensive research and validation in collaboration with our research advisor from Stanford University in the US. 3. Some of Our Recent Clients 3 4. Our Research & Publications Extensive research and application in the areas of employee engagement and well- being based on personal and job resources. Launched the first MENA Labour Market Confidence Index across 14 countries with 1000+ respondents. Commissioned by the Federal Authority of HR in the UAE to launch a seminal report predicting human capital trends for Expo 2020. Released best-selling book Unlocking the Paradox of Plenty on the future labour markets in the GCC. Pioneered the design and validation of the regions first and only suite of psychometric assessments for GCC nationals and expats. We have funded a cross- cultural youth employability research study currently underway across GCC, East Africa, UK, India & China. SOME OF OUR RESEARCH PROJECTS AND PROGRAMS Research and application of nationalisation 2.0, youth and female inclusion, performance and productivity through assessments and programs. 5. 5 The Future is Now The Future is Different The Future is Ours? 6. 2001 2012 Continued Focus on Nationalisation Whats Changed? 7. 7 The talent landscape in the Middle East will be dramatically altered over the next decade, at a scale and pace of change that is unprecedented in the regions history 8. 8 The Paradox of Plenty 85 million new jobs in the Arab World by 2020. Over the same decade, China will only have 3 million new entrants. India has 1 million new entrants every month! The Talent Enterprise, IMF, World Bank & Qudurat, Aon Hewitt 9. A Limited Demographic Window of Opportunity A better future for the regions youth H.H. Sheikh Mohammed Bin Rashid Al Maktoum, on Winning the Expo UAE 2010 UAE 2050 Median Age: 26 Median Age: 49! Our collective actions as organisational & HR leaders will impact the future of our region..we cant afford to miss this opportunity! #MENAfutureisnow 10. Source: McKinsey Survey 2013 Worldwide, young people are three times more likely than their parents to be out of work (The Economist, 2013). The MENA region has the highest levels of youth unemployment in the world at 25%. Less than 50% of students confident that they would study the same subject, if they were given a choice again. Only 22% of young nationals believe their countrys education system helped prepare them (or is preparing them) to find a job (Booz & Co, 2013). Only 29% of GCC employers feel that education prepares students with necessary technical skills and only 19% agree that it prepares young people with the right attitude for work (EY, 2014). Stakeholders hold different views about the readiness of graduates for the job market Agreement that graduates/news hires are adequately prepared %of respondents Employers 1 Providers 2 Youth 3 42 72 45 Global Backdrop and Regional Solutions 11. 11 Our Changing Workforce The increased contribution and participation of females in the workforce is not only the right thing to do, but also the smart thing to do. Does your organisation have a defined strategy to attract & retain women? A young and diverse workforce inclusion is key! 12. 12 THE FUTURE IS NOW! 13. The CEOs Perspective Source: PwC Study 2014 14. The MENA Labour Market Confidence Index 2014 Source: The Talent Enterprise & Informa Study MOST IMPORTANT 24% 25% 25% 72% 45% 76% Recruitment & Selection Nationalisation Building Employability Skills for Entry-Level Graduates and Working Closely with Education Providers Focusing on Performance & a Differentiated Talent Strategy Engaging our Employees Operational Effectiveness and Cost Management LEAST IMPORTANT TOP 3 MOST IMPORTANT AND TOP 3 LEAST IMPORTANT HR PRIORITIES Panel Discussion at 12 noon today in Seminar Room 3, with Etihad Airways, Tanfeeth and Dubai Knowledge Village! 15. 63% 57% 58% 74% 49% 48% 0% 10% 20% 30% 40% 50% 60% 70% 80% North America Europe Asia Pacific Latin America GCC Africa Global & Regional Employee Engagement 2012 - 2013 Data Source: Qudurat Study (N size 14,292 GCC Overall) Jones, D.B. Distinct Triggers for Employee Engagement for GCC Nationals (Working Paper) Levels of Engagement at the Workplace: Global & GCC 16. Data Source: Qudurat Study (N size 2010: 2018 Nationals and 2012 - 6750 Nationals Jones, D.B. Distinct Triggers for Employee Engagement for GCC Nationals (Working Paper) 64% 45% 49% 58% 59% 48% 40% 43% 51% 58% 0% 10% 20% 30% 40% 50% 60% 70% Under 25 years 25-34 years 35-44 years 45-54 years 55 years and above Employee Engagement by Age (changes in 2012 compared to 2010) 2010 2012 Levels of Engagement for Nationals by Age: Historical Trends Onset of an early mid career crisis 17. 17 Work Motivation and Strengths of Youth 90% 90% 86% 86% 86% 85% 84% 84% 81% 81% 0% 20% 40% 60% 80% 100% 16% 26% 33% 37% 38% 39% 40% 40% 43% 47% 0% 20% 40% 60% 80% 100% Control Flexibility Curiosity Efficacy Autonomy Affiliation Empathy Absorption Ethics Confidence Top 10 Strengths and Work Orientations for GCC National Youth Bottom 10 Strengths and Work Orientations for GCC National Youth Extrinsic Drive Values Mastery Analytical Determination Ambition Instrinsic Extra role Achievement The Talent Enterprise Research 18. 18 What Most Impact Workplace Engagement? Data Source: Qudurat Study (N size 14,292 GCC Overall) Jones, D.B. Distinct Triggers for Employee Engagement for GCC Nationals (Working Paper) 19. 19 Different Strokes for Different Folks Data Source: Qudurat Study (N size 14,292 GCC Overall) Jones, D.B. Distinct Triggers for Employee Engagement for GCC Nationals (Working Paper) 20. 20 A Total Rewards Approach 21. 21 THE FUTURE IS DIFFERENT! 22. 22 Impact of Technology *Globally, 47% of todays jobs could be automated within the next two decades. *Nature of employment is changing. Instagram. A popular photo-sharing site, was sold to Facebook for about $1 billion in 2012, it had 30 million customers. They employed 13 people! *The Economist, **McKinsey and The Talent Enterprise 23. 23 So What Will 2020 Look Like? | Top 10 Trends 1 2 3 4 5 6 7 8 9 10 Change in the segmented nature of our labour markets. Dependence on foreign workers and pattern of expatriation. Labour legislation and the regulatory environment. Nationalisation 2.0. Multi-generational workplaces & the youth bulge. A much more feminised workforce the right thing and the smart thing! Flexibility and concept of a traditional job. Social media and access to information. Global scrutiny and visibility on our labour practices. Nature of education. Realising education reform. Our role as organisational and HR leaders. The Talent Enterprise Research on Future of Work 24. 24 Key Sectors that Would be Impacted by Expo 2020 Hospitality, including the MICE Industry (Meetings, Incentives, Conferences and Exhibitions) Transportation and Logistics Real Estate and Infrastructure Retail Banking and Financial Services Other sectors that would be impacted? The Talent Enterprise Research for Federal Authority of HR, UAE 25. 25 Hot Skills for Expo 2020 2. Project Management Planning and Execution 1. Customer Service 4.Architecture, Urban Planning and Infrastructure Development 5. Digital Business Skills 7. Event Management Marketing and PR 6. Social Media & Web 2.0 6. Digital Design Skills 3. Engineering and Technical 10. Financial Analysis, Due Diligence and Monitoring 9. Health, Safety and Environment The Talent Enterprise Research for Federal Authority of HR, UAE 26. 26 THE FUTURE IS OURS? 27. So, What is Nationalisation 2.0? A fundamental re-boot of the current approach to nationalisation. A shift from a quota-driven approach towards right people in right jobs. Employability. Engagement. Productivity. Inclusion. Leadership. Supporting Nationalisation Version 2.0 28. How Your Organisation Can Focus on Nationalisation 2.0 Building a 5-3-1 year nationalisation strategy Not just hiring targets! Collective responsibility versus having a nationalisation department! Who is accountable? Strategic workforce plan with key positions identified based on talent supply and demand. Broaden and deepen talent pool (high school, lateral hires and internal talent). Public-private sector partnerships need to predict impact of regulatory changes. Educational partnerships curriculum design, innovation, internships, traineeships and apprenticeship programs. Internal and external employer brand candidates to self-select themselves. Use of psychometrics and predictive talent analytics. Setting realistic expectations 85% of people expecting a promotion in the next 12 months. Equal focus on engagement, retention, leadership and performance. Shift priorities from effort to outcome focus. 29. A More Holistic Nationalisation Strategy Representation % of Nationals in Corporate Roles Representation % of Nationals in Operations Representation % of National Leaders (Band 1+) Representation % of National Managers (Level 6+) Employer Brand External Recognition Employee Engagement Risk of Attrition Current IN 1 YEAR IN 3 YEARS IN 5 YEARS 9% (872 nationals) 10% (of total HC in Corp, incl. Sales ~xxx nationals) 17% (of total HC in Corp, incl. Sales ~xxx nationals) 20% 5% 7% (of Total HC in Ops xxx nationals) 11% (of Total HC in Ops xxx nationals) 31% (of Total HC in Ops xxx nationals) 0% (0 of 27 employees in total) 3% (1 national e at the Band 1+ Director Level) 15% (~4 nationals) 25% (~8 to 10 nationals) 4% (9 of 241 employees in total) 5% (~13 nationals) 10% (~26 nationals) 25% (~65 nationals) Low External Award / Recognition as Great Place to Work Top 25 top-of-mind recall companies Top 3 in FMCG Top 10 top-of-mind recall companies Top 3 in FMCG 60% Equal engagement % levels for nationals and expats Higher engagement % for nationals ~50% 20% 15% 15% EXAMPLE ONE 30. 30 Targeted Workforce Planning 201 4 1 YEAR GOALS 2016 3 YEAR GOALS 2018 5 YEAR GOALS Tota l NATIONALS Comments Total NATIONALS Comments Total NATIONAL S Comments JEDDAH Prod. 70 0 limited since no new hiring 70 0 limited since no new hiring 70 23 1 of 3 shifts to be female Engineering 19 0 limited since no new hiring 19 0 limited since no new hiring 19 5 One-fourth of the team. QA 15 0 limited since no new hiring 15 0 limited since no new hiring 15 8 50% of the QA team. Plant HR 6 0 limited since no new hiring 6 0 limited since no new hiring 6 3 50% of the HR team. In-Bound WH 20 0 limited since no new hiring 20 0 limited since no new hiring 20 4 20% of the WH TOTAL 130 0 130 0 130 43 RIYADH Prod. 241 0 limited since no new hiring 241 0 limited since no new hiring 241 80 1 of 3 shifts to be female Engineering 69 0 limited since no new hiring 69 0 limited since no new hiring 69 17 One-fourth of the team. QA 32 0 limited since no new hiring 32 0 limited since no new hiring 32 16 50% of the QA team. Plant HR 7 0 limited since no new hiring 7 0 limited since no new hiring 7 4 50% of the HR team. In-Bound WH 34 0 limited since no new hiring 34 0 limited since no new hiring 34 7 20% of the WH TOTAL 383 0 383 0 383 124 SUPPLY CHAIN Out bound WH 178 0 neglible due to nature of job 187 0 neglible due to nature of job 188 0 neglible due to nature of job UAE 31 0 neglible due to nature of job 32 0 neglible due to nature of job 32 0 neglible due to nature of job Fleet/Plan/Fr eight 80 0 neglible due to nature of job 96 0 neglible due to nature of job 107 5 neglible due to nature of job 289 0 315 0 327 5 OTHER OPS Purchasing 7 0 limited since no new hiring 7 0 limited since no new hiring 7 4 50% of the team. Agro 6 0 limited since no new hiring 6 0 limited since no new hiring 6 3 50% of the team. Projects 7 0 limited since no new hiring 7 0 limited since no new hiring 7 4 50% of the team. Capability 7 0 limited since no new hiringz 8 0 limited since no new hiring 8 4 50% of the team. QA/FS 2 0 limited since no new hiring 2 0 limited since no new hiring 2 1 50% of the team. 29 0 30 0 30 15 TOTALS 934 38 1050 115 1156 364 4% 11% 31% EXAMPLE TWO 31. Strategy Involves Making Choices EXAMPLE THREE Choice One Choice Two We want to differentiate our HR practices for attracting and retaining female national employees. We want to follow similar employment practices for all employees irrespective of gender. We are willing to invest in developing young Nationals to take on leadership positions in future. We are willing to invest in bringing external leaders. We want to foster a culture of pay for performance. We are willing to pay higher allowances to Qataris to ensure higher retention. We want to focus primarily on hiring more Nationals as the prime measure of strategic success. We want to be highly selective in terms of the National talent we hire as the prime measure of strategic success. Long-Term StrategyShort-Term Strategy 32. Concluding Thoughts Unlocking The Paradox of Plenty You have a Key Role in Creating the Future. 33. Thanks For Your Time www.linkedin.com/company/the-talent-enterprise https://www.facebook.com/TheTalentEnterprise https://twitter.com/TTE_Consulting Our Book Unlocking The Paradox of Plenty available online on www.booksarabia.com, www.amazon.com, kindle and in all leading bookstores in the UAE. All Rights Reserved The Talent Enterprise