“The Workplace of the Future” Loane Sharp Workforce Optimization Analyst

1. “The Workplace of the Future” Loane Sharp Workforce Optimization Analyst quest (kwêst’) n. / an enterprise or enquiry aimed at discovering something of incomparable value © 2008 Quest Flexible Staffing Solutions (Pty) Ltd. Strictly confidential. All rights reserved.

2. Technological change Labour productivity Job creation and capital formation 2 © 2008 Quest Flexible Staffing Solutions (Pty) Ltd. Strictly confidential. All rights reserved.

3. Exit interview Companies are increasingly concerned about how little they engage with their employees Staff turnover is expected to increase significantly in future 3 © 2008 Quest Flexible Staffing Solutions (Pty) Ltd. Strictly confidential. All rights reserved.

4. A new ideal “Generation X” • Born during the “Baby Bust” (1964), emerged during the late 1980s and 1990s • Defined by the saying “whatever” • Cynicism against the baby-boomers’ most cherished ideals • Grunge music, resurgence of punk and heavy metal influences • Emphasis on degeneracy, based on the shadow of their elders, the baby-boomers “Generation Y” • Born during the 1980s and 1990s, will emerge during the 2000s • No social anxiety (e.g. born after the Cold War) • Prolific technology adoption (cellular phones, music downloads, instant messaging) • Tolerant of multiculturalism and internationalism • High levels of wealth at the family level • One of the most medicated generations in history • Underage drinking and illicit drug use (including prescription pharmaceuticals) • Childhood obesity 4 © 2008 Quest Flexible Staffing Solutions (Pty) Ltd. Strictly confidential. All rights reserved.

5. Winds of change Boomers Generation X Generation Y Generation statistics Percent of population 41% 20% 14% Ave. no. of hours spent at work per week 42.6 39.1 35.4 Percent reporting that their job 'severely' or 'very severely' interferes with their family life 14% 29% 36% Percent of 'leavers' (people considering leaving their jobs) who cite work/life imbalances as a key reason 12% 45% 48% Percent who would like additional responsibility in the workplace 60% 39% 23% Percent of men who would like more flexible working arrangements 23% 69% 75% Percent of women who would like more flexible working arrangements 65% 83% 85% Percent of men who predict that they will work on a part-time basis in the next 5 years 1% 12% 19% Percent of women who predict that they will work on a part-time basis in the next 5 years 15% 19% 36% Percent reporting that they would leave their jobs for greater control over their work schedules 1% 66% 85% Percent reporting that they would leave their jobs for greater flexibility 2% 59% 92% Percent reporting that they would leave their jobs for the ability to work fewer hours 1% 48% 64% Percent reporting that they would leave their jobs for the ability to telecommute 0% 50% 75% Percent who expect to leave their current employers in the next year 43% 52% 70% Workplace statistics 1998 2001 2005 Percent of employers allowing some flexibility in starting and ending times 24% 29% 31% Mandated shifts Chosen shifts Annual staff turnover among shifted employees 16% 7% Men Women Percent of people working part-time 18% 32% Percent of part-time employees doing so voluntarily 51% 68% 5 © 2008 Quest Flexible Staffing Solutions (Pty) Ltd. Strictly confidential. All rights reserved.

6. South Africa’s slippery slope 6 © 2008 Quest Flexible Staffing Solutions (Pty) Ltd. Strictly confidential. All rights reserved.

7. Raising the bar Example: Sources of variability in customer service levels at a large banking call centre1,2 Altering the distribution of business outcomes % Recruitment(a)6.4 Training and development(b) 12.8 Staffing model(c) 22.5 Retention(d) 10.0 Line management(e)51.7 Total 100. 1 2 Notes: 1 Data are combined figures for the period 2002 to 2005. 2 Results based on a linear regression model of service level variances. Independent variables are: (a) recruitment assessment scores; (b) quality assurance scores; (c) proportion of flexible staff in the staffing mix; (d) average agent tenure; (e) all other factors. Note: Recruitment assessments taken from comparable contact centres. • Low average performance • Wide variations in customer experience and employee performance • High average performance • Consistent customer experience and employee performance 7 © 2008 Quest Flexible Staffing Solutions (Pty) Ltd. Strictly confidential. All rights reserved.

8. A national catastrophe Supervisor-level staff 8 © 2008 Quest Flexible Staffing Solutions (Pty) Ltd. Strictly confidential. All rights reserved.

9. Extended stay Most significant drivers Least significant drivers 9 © 2008 Quest Flexible Staffing Solutions (Pty) Ltd. Strictly confidential. All rights reserved.

10. Crystal ball Actual vs. predicted tenure* Type I and Type II errors *R2 = 75.75% 10 © 2008 Quest Flexible Staffing Solutions (Pty) Ltd. Strictly confidential. All rights reserved.

11. Some are more equal than others 11 © 2008 Quest Flexible Staffing Solutions (Pty) Ltd. Strictly confidential. All rights reserved.

12. Mobility and career progression Career progression Measuring the right thing 12 © 2008 Quest Flexible Staffing Solutions (Pty) Ltd. Strictly confidential. All rights reserved.