The Leader - May/June 2008 - (Page 45)

W o r k F or ce lon GevitY a n a lYsis: a s s e s s i nG Future laBo r Marke t ri s ks Fo r co rp o rate re al e s t at e FIG. 4 estiMateD lenGtH oF optiMa l laBor Force vs. Wa Ge HoW Have cres applieD tHe WorkForce lonGevitY MoDel? 30 25 20 Years 15 10 5 0 $10.00 $10.50 $11.00 $11.50 $12.00 $12.50 $13.00 $5.00 $5.50 $6.00 $6.50 $7.00 $7.50 $8.00 $8.50 $9.00 $9.50 Results & Benefits: CRE challenges have varied from understanding the length of time they can remain in their current markets or facilities, to identifying future sites with minimal risk, ample labor force, and optimal cost efficiencies. CRE organizations have incorporated the Workforce Longevity Model into their overall portfolio strategy and effectively opened new locations, consolidated poor performing or high-risk facilities, realigned their skill set and wage structures and planned for future growth in existing capacity. The result: multi-million dollar savings and improved risk management strategies implemented by CRE. Additional CRE Implications Just as CRE must evaluate the future risk of lease options and real estate cost, they must also identify the future risk of the labor to fill these buildings. An office unable to staff to capacity becomes a dead asset. The future ability to sell or dispose of that building will also be based on the market’s perception of the company’s ability to recruit in that market. Therefore, understanding the correct size, wages, and skill set to employ in a building not only extends the life of that asset, but also improves the value of the asset, justifies the renewal or term of the lease, and improves the resale of capital assets. The Workforce Longevity Model is a powerful tool to answer the challenging issues of aligning the flexible operating needs of a company’s different business units to the static and long-term nature of most real estate solutions. A true inno- Wage redeploy surplus property and chart a course of action for making the best use of available facilities, while identifying gaps that may require a new site selection customized to the skill set, targeted wages and quality for remaining operations. This can provide synergies across business lines, resulting in millions of dollars in annualized savings. The combination of these innovations allows a company to understand how they can improve situations in their current markets, as well as identify future risk in their present or future markets. HoW are coMpanies iMpleMentinG tHe WorkForce lonGevitY MoDel? Strategy and Corporate Real Estate departments for a variety of applications and is constantly evolving into additional uses. Often, the tool is used to bridge the intersection between these groups and effectively make the whole greater than the sum of the parts. A few sample uses include: n n n n n n n n n n The model can be utilized by Executive Management, Operations, Workplace Expansions Consolidations Dispositions Skill set optimization Cost savings (wage optimization, attrition and competitor minimization) Capacity utilization Mergers and acquisitions Capital planning Business planning Market perception tH e le aDe r 45 MaY / j u n e 2008

Table of Contents Feed for the Digital Edition of The Leader - May/June 2008

The Leader - May/June 2008 Leadership Contents Message from the CEO Real Estate in the News Green Real Estate Work Without Boundries Building Flexibility Into the Business Strategy Multi-Generational Work-Force Design Work Force Longevity Analysis Wells Fargo's David Nelson Pennsylvania's Michael Rossman Globalization 2.0 Site Selection Consultant Directory The New York Report: A Core of Traditional and State-of-the-Art Opportunities Discovery Forum Findings Industry Tracker Young Leader Career Development Effective Leadership Economic Development in the News A Look Ahead In Our Next Issue Calendar of Seminars Index of Advertisers Executive Development Spotlight

The Leader - May/June 2008

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