McKinsey Archives - Womens Post

I went to see a movie a few weeks ago, and I was shocked at what I saw when waiting to purchase my tickets — a long row of automated machines and a single employee. The employee was there to deal with cash purchases only. Everyone else was encouraged to use their credit or debit cards at one of these computers to buy their movie tickets.

It’s not just Cineplex. Shoppers drug mart now has a series of machines for self-checkouts (Debit/credit only) and you can order fast food at Macdonalds using a fancy touchscreen.

Metro, the grocery chain, announced earlier this week they will be testing scan-and-go technology so they can increase the number of self-checkout machines in their stores. The reason? To offset the higher minimum wages in Ontario and Quebec.

Metro already has self-scanning checkouts in 30 stores across Ontario, and plans to add more by the end of the summer, including a few at the Food Basics discount store. After the pilot, more machines will be added, assuming it is successful.

Automation may be the way of the future, but it will have a drastic impact on the younger generation, most of whom get their first jobs at places like Cineplex, Shoppers, and Metro. If those jobs disappear, where will these young people go to make an income? Where will they gain valuable work experience?

A study written by the McKinsey Global Institute predicts that by 2030, as many as 800 million jobs could be lost worldwide to automation, particularly in middle and low-skill occupations. This will create a two-tiered labour market, according to the report, in which “stepping stone jobs” are eliminated while high-paying creative jobs are not.

“New jobs will be available, based on our scenarios of future labor demand and the net impact of automation,” the report reads. However, people will need to find their way into these jobs. Of the total displaced, 75 million to 375 million may need to switch occupational categories and learn new skills.”

At the same time, the report says that worries about future jobs are unfounded, as the labour market will adjust over time. The benefits of automation, which were outlined in a previous report by McKinsey, such as an increase in productivity and efficiency, will outweigh the dangers. “Automation of activities can enable businesses to improve performance, by reducing errors and improving quality and speed, and in some cases achieving outcomes that go beyond human capabilities.” In the United States alone, automation will equal savings of approximately $2.7 trillion in wages.

The key in these findings is that change occurs slowly over time. Replacing minimum wage workers with automated machines the year the minimum wage increases, is moving rather quickly. Other jobs need to open up for younger people before their traditional positions are eliminated. The unemployment rate in Canada may be relatively low at the moment at 5.7 per cent, but for youth, that number is 10.3 per cent. That number is going to increase unless companies make room for young people, despite their move to automation.

What do you think? Let us know in the comments below.

Pushing for gender equality in Canada could add $150 billion in incremental GDP in 2026, or at least that is what a new report released by the McKinsey Global Institute (MGI) is saying.

The report, entitled The Power of Parity: Advancing Women’s Equality in Canada, was released earlier this June and outlines a number of things Canada has to do in order to take advantage of this $150 billion opportunity. This includes being more than just a vocal supporter of gender parity.

Too often, companies outline goals for gender diversity on boards or make promises to consider more women in the hiring process — but there is no follow up or accountability. Seventy-five per cent of companies do not track female recruitment or reward leaders for fostering gender diversity. This means there is less accountability and goals of gender parity may actually never be achieved.

The report also indicates only 14 per cent of businesses have “clearly articulated a business case for change” when it comes to considering gender diversity.

Canada is ranked in the top 10 countries of 95 when it comes to women’s equality, but as the report says, “progress towards gender parity has stalled over the past 20 years, and Canada must find anew ways to keep pace.”

More importantly, women should be hired in “high-productivity sectors” such as mining and STEM-related industries. Currently, women only hold 29 per cent of political seats and hold 65 per cent of unpaid care work.

Canada’s GDP growth has slowed to approximately 2 per cent a year, according to the Canadian government. The report shows that unless Canadian businesses make a significant investment in women and continue to grow this rate will remain stagnate.

“A significant part of the solution is for Canada to tap into the vast unrealized potential of women. Accelerating progress toward gender equality is not only a moral and social imperative; it would also deliver a growth dividend.”

In order to see this GDP growth, businesses will not only have to hire more women (create 650,000 more jobs), but they also will need to raise the number of hours worked by female employees and raise productivity levels. The analysis found that the structure of each province’s economy had little factor into the state of gender inequality. Rather, it was formal policies that mandate quotas for women on boards of Crown corporation and universal child-care programs that determined economic gender inequality.

Women, the report says, are willing to work. Unfortunately, there are a number of barriers that either prevent them from doing so, or prevent them from growing in their role.

“This research highlights best practices in Canadian companies that others can emulate. But initiatives need to be implemented holistically and effectively, and measures to tackle gender imbalance in companies only work if they are considered to be a true business imperative. Changing attitudes takes time, and persistence is vital,” says Sandrine Devillard, a Senior Partner in McKinsey’s Montreal office, in a statement.

Hopefully, it doesn’t take too much time to change. Gender parity within the workplace is vital to both the social and economic success of this country — and yet, there are still gender gaps when it comes to positions of power, both in the private and public sector. How many reports like this are necessary before those with the power to do something actually change?

What do you think? Let us know in the comments below!