hr trending into the future dr josephine pryce may 2015

HR Trending into the Future

Dr Josephine PryceMay 2015

• The new world of work

• Trends that are shaping HR:– SHRM– ACCENTURE– Gibson, Ziskin and Bourdreau – Josh Bersin

• HR Readiness

Overview . . .Overview . . .

The new world of work . . .

• “Whether you’re ready for it or not, the new way of work is multi-generational, multi-geographical, location agnostic, and device dependent” (Holland et al., 2015, p3).

• “The past decade has seen a seismic shift in the employment landscape in Australia, not only in the amount and type of changes workers can expect to make during their lives but also in the type of roles people are choosing to explore…”

(Emerson, 2013, p.2)

Trends that are shaping HR: The findings from SHRM . . .

• “a mere 20 years ago, not many people would have been able to predict the sheer scale of technology’s impact on the nature of work and the culture of the workplace”.

• From this point it can be asked:

“What will the world of work look like 20 years from now?”

>>Society for Human Resource Management (SHRM)<< [http://futurehrtrends.eiu.com/report-2014/challenges-human-resource-management/]

20 years from now . . .20 years from now . . .

• In 2013, SHRM sponsored research conducted by the Economist Intelligence Unit (EIU).

• The Economist Intelligence Unit ran a survey that involved 636 middle and senior executives and the report presented the HR challenges that emerged from the findings.

• These included . . .

The ResearchThe Research

The Findings – Challenges facing OrganisationsThe Findings – Challenges facing Organisations

• THE NATURE OF THE WORKER

1. Adapting to a rapidly changing worker profile

2. Understanding the subtleties of workers’ qualifications

3. Retaining and engaging a changing workforce• THE NATURE OF THE WORK

4. Aligning technology best practices to global management strategy

5. Managing the risks of a global operation• CONFLICTING EXPECTATIONS OF WORKERS AND

THE WORKPLACE

6. Hiring and retaining talent while lowering labour costs

7. Winning the war for talent

The Findings – HR ChallengesThe Findings – HR Challenges

Some key findings . . .

2. Understanding the subtleties of workers’ qualifications

2. Understanding the subtleties of workers’ qualifications

2. Understanding the subtleties of workers’ qualifications

3. Retaining and engaging a changing workforce

3. Retaining and engaging a changing workforce

3. Retaining and engaging a changing workforce

4. Aligning technology best practices

to global management strategy

5. Managing the risks of a global operation

Another SHRM report . . .

Over the next 10 years, what do you think will be the three biggest challenges facing HR executives at your organization?

Note: Percentages do not total 100% due to multiple response options. Respondents who answered “don’t know” were excluded from this analysis.

Over the next 10 years, what do you think will be the biggest investment challenge facing organizations?

http://www.shrm.org/research/surveyfindings/articles/pages/challengesfacinghroverthenext10years.aspx

Over the next 10 years, which of the following tactics do you believe will be most effective in attracting, retaining and rewarding the best employees in your organization?

Challenges Facing HR Over the Next 10 Years ©SHRM 2012 23

Note: Percentages do not total 100% due to multiple response options. An asterisk (*) indicates option was not included on 2010 survey.

Ten years from now, which of the following competencies do you see being most critical for the HR professional?

Challenges Facing HR Over the Next 10 Years ©SHRM 2012 24

Note: n = 472. Percentages do not total 100% due to multiple response options.

• What bodies of knowledge do HR professionals rate as being the most important in 10 years?

– The four bodies of knowledge that were rated as most important were:

• strategic business management

• talent management

• change management

• workforce planning and employment[see over]

Challenges Facing HR Over the Next 10 Years ©SHRM 2012 25

Key FindingsKey Findings

http://www.shrm.org/research/surveyfindings/articles/pages/challengesfacinghroverthenext10years.aspx

Rate the importance of these bodies of knowledge for HR professionals 10 years from now.

Note: n = 446. Respondents rated each body of knowledge on a scale from 0 (not important) to 10 (very important).

Body of Knowledge Average Rating (0 to 10)

Strategic Business Management 8.8

Talent Management 8.6

Change Management 8.5

Workforce Planning and Employment 8.5

Compensation and Benefits 8.3

Human Resource Development 8.2

Employee and Labor Relations 8.1

HR Technology 8.0

Risk Management 7.7

Global and International Human Resources 6.9

http://www.shrm.org/research/surveyfindings/articles/pages/challengesfacinghroverthenext10years.aspx

Further trends that are shaping HR: Insights from ACCENTURE

1. Digital radically disrupts HR

2. Reconfiguring the global talent landscape

3. Tapping skills anywhere, anytime

4. Managing peoples as a workforce of one

5. The rise of the extended workforce

6. Shattering the boundaries of HR

7. Talent management meets the science of human behaviour

8. HR drives the agile organisation

9. HR must navigate risk and privacy in a more complex world

10.Social drives the democratization of work

http://www.accenture.com/SiteCollectionDocuments/PDF/Accenture-Future-of-HR-Overview.pdf

http://www.accenture.com/us-en/Pages/insight-future-of-hr.aspx

1. Digital Radically Disrupts HRDigital technology, including social, gamification, cloud, mobile, big data and consumer applications, is transforming how people carry out their work—and how HR supports them in that effort.

http://www.accenture.com/us-en/Pages/insight-future-of-hr-trends-digital-radically-disrupts-hr.aspx

2. Reconfiguring the Global Talent LandscapeHR will transform to adapt to a more global world, including adopting new talent sourcing strategies to match talent with task all over the globe, and adopting new management methods, such as supporting mobile workforces across geographic barriers.

http://www.accenture.com/us-en/Pages/insight-future-of-hr-trends-reconfiguring-global-talent-landscape.aspx

3. Tapping Skills Anywhere, AnytimeSkills gaps are widening, and HR will be increasingly hard pressed to ensure their organizations have the right talent. To do this, HR will need to quickly tap skills when they’re needed—and where.

http://www.accenture.com/us-en/Pages/insight-future-of-hr-trends-reshaping-skills.aspx

4. Managing Your People as a Workforce of OneCustomization is poised to revolutionize the way organizations manage their people. They will no longer treat their workforce as a single entity but instead, treat each employee as a “workforce of one,” offering customized HR and talent management solutions..

http://www.accenture.com/us-en/Pages/insight-future-of-hr-trends-reshaping-workforce-one.aspx

5. The Rise of the Extended WorkforceOrganizations will leverage the new

extended workforce: a global network of outside contractors, outsourcing partners, vendors, and other nontraditional employees. HR will redefine its mission and mandate to maximize the extended workforce’s strategic value.

http://www.accenture.com/us-en/Pages/insight-future-of-hr-rise-extended-workforce.aspx

6. Shattering the Boundaries of HRHR will evolve from being a clearly defined, stand-alone function that administers HR and talent management processes to one that spans disciplines and crosses boundaries to deliver cross-functional, seamless employee experiences.

http://www.accenture.com/us-en/Pages/insight-shattering-boundaries-hr.aspx

7. Talent Management Meets the Science of Human Behavior

As new insights into brain science and human behavior emerge – and as analytics finally enable organizations to test hypotheses and form conclusions by analyzing a newly available treasure trove of data – HR will arm itself with the tools and insights of a scientist to drive better performance from their workforces.

http://www.accenture.com/us-en/Pages/insight-future-of-hr-trends-science-human-behavior.aspx

8. HR Drives the Agile OrganizationIn a pervasively unpredictable world, organizations that can adapt to changing business conditions will outperform the competition. HR will reshape itself so that the function becomes the critical driver of agility.

http://www.accenture.com/us-en/Pages/insight-future-of-hr-trends-agile-organization.aspx

9. HR Must Navigate Risk and Privacy in a More Complex WorldHR will adopt risk management strategies covering everything from protecting confidential information and data, to risks associated with weak hiring or turnover of talent.

http://www.accenture.com/us-en/Pages/insight-future-of-hr.aspx

10. Social Drives the Democratization of WorkInstead of relying on solutions dictated from the top of the organization, organizations will be populated with knowledge workers who harness social media to create solutions in conjunction with each other, thereby radically disrupting organizational structures, hierarchy, and job titles.

http://www.accenture.com/us-en/Pages/insight-future-of-hr.aspx

• As the popularity of video and online gaming has increased exponentially in recent years, companies keen to attract, engage, incentivize, and retain today’s generation of workers have begun to take games and gaming concepts very seriously indeed. 

• These concepts have now begun to work their way into key human resource (HR) functions in two distinct forms:

– "Serious games"—a game whose main purpose is something beyond entertainment—education, advertising or behavior shaping, for instance.

– "Gamification"—the use of game mechanics and/or game design principles in contexts other than games.

• Manish Mehta and Alex Kass of Accenture Technology Labs take a closer look at this growing area.

GamificationGamification

http://www.accenture.com/us-en/Pages/insight-changing-human-resources-games-gamification.aspx

• In Workforce of One, Susan Cantrell and David Smith show how exceptional companies are tailoring work experiences to employees' talents and interests by customizing job duties, training, recognition, and even compensation, work schedules, and performance appraisals.

• Their reward? - - - Lower turnover, greater productivity, improved profit margins.

Workforce of One

https://books.google.com.au/books?id=HZAUbNaPvdcC&dq=Workforce+of+One:+Revolutionizing+Talent+Management+through+Customization&source=gbs_navlinks_s

• In Workforce of One, Susan Cantrell and David Smith show how exceptional companies are tailoring work experiences to employees' talents and interests by customizing job duties, training, recognition, and even compensation, work schedules, and performance appraisals.

• Their reward? - - - Lower turnover, greater productivity, improved profit margins.

Workforce of One

https://books.google.com.au/books?id=HZAUbNaPvdcC&dq=Workforce+of+One:+Revolutionizing+Talent+Management+through+Customization&source=gbs_navlinks_s

Further trends that are shaping HR: From the writings of Carrie Gibson, Ian Ziskin, and John Boudreau . . .

Andrea del Sarto

• “Andrea del Sarto” • by Robert Browning

• Andrea del Sarto • (1486–1530) • an Italian painter • from Florence

Gibson, Ziskin and Bourdreau • “the demands of day-to-day HR may be

crowding out the focus, passion and spirit that are necessary if practitioners are to take a leading role in helping organizations capitalize on opportunities offered by emerging trends such as big data and gamification”.

What is the future of HR?

http://www.workforce.com/articles/20179-what-is-the-future-of-hr

Gibson, Ziskin and Bourdreau acknowledge that much of the work addressing this issue has defined the future of HR in terms of competencies, workforce demographics, or professional techniques or practices.

Twenty (20) to 30 HR professionals within each company participated in the consortium.

What is the future of HR?

http://www.workforce.com/articles/20179-what-is-the-future-of-hr

They examined the trends of:1. globalization, 2. generational diversity, 3. sustainability, 4. social media, 5. personal technology, 6. mass customization, 7. open innovation, 8. big data 9. gamification.

. . . explained on next slide . . .

Table 1. Lofty Ambitions but Less-Elevated Reality

Globalization: Integrating world economies through the exchange of goods, services and capital.

Personal technology: Mobile platforms such as smartphones, laptop and tablet computers, future technology such as wrist devices and Google Glass, and the apps that support them, seamlessly and constantly connecting people and Web-based content.

Generational diversity: The presence of many different age groups among workers, citizens and consumers.

Mass customization: Combining mass production with customization for specific individual consumers or groups to meet people’s needs with the effectiveness and efficiency of mass production.

Sustainability: Meeting the needs of the present without compromising the ability of future generations to meet their needs.

Open innovation: The inflow and outflow of knowledge to increase innovation, including user innovation, innovation ecosystems, co-development, innovation contests and crowdsourcing.

Social media: Online networks and two-way communication channels that connect users in the virtual world, establishing new relationships that expand users’ networks and facilitate user participation in interactions and exchanges.

Big data: Data that are too big, too unstructured or too diverse to be stored and analyzed by conventional means, processes or tools.

 Gamification: Applying game mechanics to nongame situations to motivate and change behavior.

What is the future of HR?

http://www.workforce.com/articles/20179-what-is-the-future-of-hr

The prominent barriers were more traditional:

•lack of time•budget •expertise

Barriers and Opportunities to Close the Gap . . .

Andrea del Sarto

• “Andrea del Sarto” • by Robert Browning

• Andrea del Sarto • (1486–1530) • an Italian painter • from Florence

Browning wrote of the painter: “Ah, but a man’s reach should exceed

his grasp/Or what’s a heaven for?”

To paraphrase Browning: Does HR’s reach exceed its grasp?

Further insights for HR tending into the Future: Josh Bersin [Principal and Founder, Bersin by Deloitte] explains . . .

The New World of WorkThe New World of Work

• As was found from the Deloitte’s Global Human Capital Trends 2015 survey (more than 3,300 organizations from 106 countries): 10 major trends emerged from the research and these trends reflect four major themes:

1. Leading

2. Engaging

3. Reinventing

4. Reimagining

http://www2.deloitte.com/content/dam/Deloitte/at/Documents/human-capital/hc-trends-2015.pdf

http://jobmarketmonitor.com/2015/04/25/the-10-trends-in-the-2015-global-human-capital-trends-report/

HR as HR as Controller, Controller, ServerServer, , EnablerEnabler and and SupporterSupporter . . . . . .(Josh Bersin et al., 2015)(Josh Bersin et al., 2015)

http://www.slideshare.net/jbersin/hihr-asia-13

“driven by a new world of work, the #1 issue companies now face is employee engagement, retention, and culture, and HR's readiness to address these issues has slipped significantly in

the last year”

Josh Bersin, Principal and Founder, Bersin by Deloittehttps://www.linkedin.com/pulse/new-research-shows-employee-engagement-now-1-global-talent-bersin

The New World of WorkThe New World of Work

https://www.linkedin.com/pulse/new-research-shows-employee-engagement-now-1-global-talent-bersin

Josh Bersin says, As we analysed the data we realized that companies and HR teams are struggling to deal with the "New World of Work," an always-on, 24x7 environment, led by younger leaders, where employees have more power in the job market than ever before”.

• Mark Bertolini, the CEO of Aetna– He has revitalized Aetna's shift into the consumer

market for healthcare by increasing wages, improving employee benefits, and bringing yoga and mindfulness to the workplace

• The new model is simple:

employees come first a need to simplify

The New World of WorkThe New World of Work

HR’s readiness . . .

• One of the big findings from the research that Josh Bersin and his team conducted, is the fact that HR does not seem to be ready.

• In the research, Josh Bresin and his team computed an "importance index" and a "readiness index," with a "readiness gap" which is the difference between the two.

HR Readiness Gap

HR Readiness Gap

https://www.linkedin.com/pulse/new-research-shows-employee-engagement-now-1-global-talent-bersin

Josh Bersin, says . . .

http://hrtimesblog.com/

Three critical principles are at the heart of driving High-Impact HR:

1. It is about the business. Business imperatives and insights about the workforce have to guide how HR operates, not the other way around.

2. Nimble is key. When HR demonstrates agility, flexibility, and coordination, it unlocks high business performance throughout the organization.

3. Beyond the organization. Industry and social networks, organization’s customers, and the external market must be integrated within how HR operates.

High Impact HR . . .High Impact HR . . .

https://www2.deloitte.com/content/dam/Deloitte/global/Documents/HumanCapital/gx-hc-high-impact-hr-pov.pdf

Global HR Transformation: The Journey Continues. . .Global HR Transformation: The Journey Continues. . .

http://www.mondaq.com/x/166700/Human+Resources/The+Global+Talent+Challenge+Getting+New+People+In+New+Jobs+In+New+Places

Into the future . . .

https://plus.google.com/+DecodedCo/posts

Thank-you . . .