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MCKINSEY SOCIAL INITIATIVEMCKINSEY SOCIAL INITIATIVE
MCKINSEY SOCIAL INITIATIVE 2
Generation seeks to close the skills gap for young people and ease skill
challenges for employers.
MCKINSEY SOCIAL INITIATIVE
We are developing a program to place disconnected young adults in jobs, giving them the skills and support they need to achieve lifelong personal
and professional success—and fundamentally change their life trajectories.
We are also giving employers an improved source of entry-level talent -operating at peak productivity/quality level from their first day on the job
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GENERATION PROGRAM OVERVIEW
MCKINSEY SOCIAL INITIATIVE
Supply Demand
75 million young people unemployed globally, and 3x as many underemployed
40% of employers say a skills shortage is driving entry-level vacancies
It is a two-sidedproblem:
GENERATION PROGRAM OVERVIEW
The paradox of global youth unemployment
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GENERATION PROGRAM OVERVIEW
Generation is built upon deep research into the best ways to address youth unemployment
MCKINSEY SOCIAL INITIATIVE
• McKinsey & Company study of 150 employment programs in 25 countries, and surveys of over 15,000 employers, educators, and young people
• Education to Employment: Designing a System that Works report summarizes findings
• Independent nonprofit McKinsey Social Initiative (MSI) founded by McKinsey & Company
• Youth unemployment chosen as first issue for MSI: Generation is born.
• Generation launches pilots in five countries (India, Kenya, Mexico, Spain, and US), with plans to rapidly expand
2013 TODAY2014
MCKINSEY SOCIAL INITIATIVE 5
GENERATION PROGRAM OVERVIEW
Generation addresses two areas of need for the youth employment field
6MCKINSEY SOCIAL INITIATIVE
GENERATION PROGRAM OVERVIEW
Generation’s goals are ambitious
young people trained and placed into promising careers
countries
years
methodology to enable others to expand the impact to millions more youth around the world
MCKINSEY SOCIAL INITIATIVE 6
7MCKINSEY SOCIAL INITIATIVE
The Generation approach has seven components
A community that follows graduates into
the workplace
8-12 weeks of technical, behavioral, mindset & professional presence skill training
Social support services & mentorship along the way
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3
4
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Jobs & direct employer engagement from the start
2 Recruit students based on intrinsics, effort, and employment standards for the profession
MCKINSEY SOCIAL INITIATIVE
Return on investment
for employers, students, and
society
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GENERATION PROGRAM OVERVIEW
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7Data at the center
MCKINSEY SOCIAL INITIATIVE 8
Our initial focus is four growth sectors that account for a high proportion of entry level jobs
Healthcare Retail/sales Information Technology Skilled Trades
USA Spain India KenyaMexico
▪ Certified nursing assistant▪ Personal care aide
▪ Customer service▪ Cashiers▪ Pharmacy technicians▪ Door-to-door sales
▪ Web developer▪ Digital marketer▪ Help Desk technician
▪ Through hole operators
▪ Welders
Generation’s approach works in any middle-skill profession in any city in any part of the world.
GENERATION PROGRAM OVERVIEW
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We are live in ten cities in our first year of operation
BarcelonaDelhi
MadridMexico City
Miami
NairobiPittsburgh
San FranciscoSan Jose
Wilmington
GENERATION PROGRAM OVERVIEW
MCKINSEY SOCIAL INITIATIVE 10
Generation Kenya has placed ~500 youth in jobs in our first year
MCKINSEY SOCIAL INITIATIVE
65%Graduates
with 2 offers1
490Graduates
8Cohorts
100%Graduates with offers
100%Supervisors who want to hire again
10Employer partners
75%Graduates with KCSEC or below
GENERATION IMPACT TO DATE
Sales roles for banks and insurance companies
MCKINSEY SOCIAL INITIATIVE11
Examples of our on-the-job impact to date in Kenya
VS. Generation hiresNon-Generation hires
Interview hit ratio
• 95% of our graduates have either a high school or less than university degree (e.g., certificate or diploma)
• Banks hired ~65% of our grads that they interviewed
• Banks typically only interview university graduates and make offers to 10%
Job readiness • One large bank currently has a three month probation period
• The same bank now only wants to hire GenK grads and shorten its probation period to one month
Diversity • 55% of our placed graduates are female
• 29% across all formal jobs are female
Retention • Attrition rate of 4% at end of Month 1 and 12% after Month 3
• A 35% attrition rate at employers by the end of Month 3, reaching up to 50%
GENERATION IMPACT TO DATE
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GENERATION IMPACT TO DATE
Current employer partners perspectives on Generation graduates
“They can sell anything, very bold and well presented”
“The girls especially are excellent -they have what it takes!”
“Good job on the candidates, we want to
take them all”
“Whatever you guys are doing - it
is working”
“Generation hires hit the ground running faster than
non-Generation hires”
“Our recruitment used to be so difficult but this is wonderful- we're taking all of
them- there is very little more they need”
“The attitude of Generation hires is very different from the rest. They are very
positive and are ready to do the work”
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Examples of our impact to date: India
GENERATION IMPACT TO DATE
Hospital employer partners▪ Flagship facility at Saket, New Delhi ▪ 1900 beds in11 hospitals▪ Third largest chain in India
▪ Biggest hospital in Gurgaon with 1,250 beds
▪ JCI accredited
▪ 300 bedded new hospital located at Saket
▪ Part of prestigious Spice group
▪ 350 bed multi-specialty hospital located▪ First JCI and NABH accredited hospital
in Gurgaon
▪ Flagship facility of Apollo group with 700 beds
▪ First hospital in India to be accredited by JCI
Generation India has placed two cohorts (~85 youth) into nurse assistant roles
Nurse supervisors report several benefits:
80%
90%
Saved nursetime (30-60 minutes per shift)
Improvedquality
80% of nurse supervisors say they want to hire more Generation grads
New employers are signing up to pay 30% of recruitment and training costs as of Q1 2016
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Over 600 of our students are female (53% of total) in 2015, well above industry standard
1 2013 American Community Survey; 2014 Bureau of Labor Statistics; Girls In Tech (Spain, 2015); Foundation for Sustainable Development (Kenya); Times of India (2012); Women Matter: A Latin American Perspective (McKinsey, 2013)
Gender balance of Generation programs vs. industry standard% women
Program
86%
54%
36%
52%
71%
36%
33%
59%
47%
Students
89%
48%
29% (all formal jobs)
75-80%
48%
Industry standard1
US: CNA
US: Retail
ES: Mobile
KE: Fin. sales
IN: GDA
MX: Retail
ES: Web Dev.
ES: Digital mktg
ES: Data analyst
20%
▪ Generation programs have achieved a gender balance vs. industry norms
▪ Differential vs. industry standard is greater for roles that are typically male dominated (e.g., digital jobs in Spain) than those with a bias towards women (e.g., CNA and GDA)
GENERATION IMPACT TO DATE
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We have created unique data tools and student tracking processes to bring analytical rigor to our work
GENERATION IMPACT TO DATE
Track critical KPIs across the student/graduate journey
Analyze leading indicators of success to predict performance
Validate elements of the Generation model
▪ Student recruitment▪ Attendance and in-class
performance ▪ Placement in jobs▪ Graduate performance on the
job vs control (e.g. retention, productivity/quality outcomes)
▪ Counter-intuitive success factors
▪ Link between in-class and on-the-job success
▪ Effectiveness of recruiting channels and assessments
▪ Reach into youth most in need and likely to benefit
MCKINSEY SOCIAL INITIATIVE 16* representative sample
Fixing youth unemployment will take all of us, so we work with a growing, global partner coalition
Funders Employers*
Implementers
GENERATION PARTNERS
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FINANCIAL AND SOCIAL INDICATORS
Generation is delivering three types of impact, and working with Gallup to execute a long-term research agenda
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Program impact on participants
Impact of Generation program variations
Return on investment for employers
We plan to launch random control trials in Q3 2016, in partnership
with Gallup, to rigorously assess the
impact of our interventions. We are committed to tracking
our youth for 15+ years▪ Cost effectiveness of different interventions
▪ Immediate job success (e.g., finding and sustaining a job)
▪ Financial impact▪ Physical & mental well being▪ Long term career path
▪ Lower training and recruiting costs
▪ Higher productivity and quality▪ Lower turnover, abseentism,
and tardiness
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FINANCIAL AND SOCIAL INDICATORS
We are building an innovative funding model to reach self-sustainability
Financial and in-kind support to prove the Generation model and ROI (2015)
100% self-financing approach with employers, students, and governments sharing full operating cost (2017 onwards)
Transition to innovative cost sharing with employers and students (2016)
Phase 1
Catalyticphilanthropy
Phase 2
Shared Cost
Phase 3
Self-sustainability
1919Generation is the first program of the McKinsey Social Initiative, a non-profit that focuses McKinsey’s problem-solving expertise on the world’s most complex social challenges.
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