2

Over 260,000 HR professional members Thousands more in over 600 local chapters Over 25% of entire profession SHRM members represent over 100,000,000

employees or more than 70% of all workers in the United States

Mission: Advance the HR profession and advance the HR professional

HR 2022 Poll ©SHRM 2012 3

59%

52%

36%

34%

33%

20%

15%

13%

11%

6%

51%

29%

44%

21%

41%

17%

33%

12%

24%

1%

Retaining and rewarding the best employees

Developing the next generation of corporate

leaders

Creating a corporate culture that attracts the

best employees to our organization

Remaining competitive in the talent

marketplace

Finding employees with the increasingly

specialized skills we need

Creating smooth and efficient HR processes

that ensure a good employee experience

Finding the right employees in the right

markets where we do business around the …

Creating an employee-centric, service-

oriented HR organization

Breaking down cultural barriers that make it

difficult to create a truly global company

Other

2012 (n = 483)

2010 (n = 465)

4

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

43%

22%

19%

14%

3%

47%

29%

11%

12%

2%

Obtaining human capital and optimizing

human capital investments

Obtaining financial capital and

optimizing financial capital investments

Obtaining technology and optimizing

technological capital investments

Obtaining intellectual capital and

optimizing intellectual capital investments

Obtaining physical capital and optimizing

physical capital investments

2012 (n = 484)

2010 (n = 449)

5

• Note: n = 484. Percentages do not total 100% due to rounding.

HR 2020 © SHRM 2012 6

•

•

•

7

8

HR 2022 Poll ©SHRM 2012 9

10

0 1 2 3 4 5 6 7 8

China

India

Nigeria

Vietnam

Indonesia

Colombia

Egypt

Turkey

Brazil

Russia

South Korea

Mexico

South Africa

US

Canada

Japan

UK

Germany

France

Italy

Real GDP, average annual % change, 2012-2016.

Source: Economist Intelligence Unit

11Source: Economist Intelligence Unit, 2012, Prepare for Opportunity

•

–

–

•

–

–

•

•

–

–

•

12

13

14

Compared with [previous month], have labor market conditions during [current month], made it more or less difficult to recruit highly qualified individuals to fill those positions that are of the greatest strategic importance to your firm, i.e., to put “A” candidates into your “A” jobs?

-40.0

-30.0

-20.0

-10.0

0.0

10.0

20.0

30.0

40.0

Jun

-05

Sep

-05

Dec

-05

Mar

-06

Jun

-06

Sep

-06

De

c-0

6

Mar

-07

Jun

-07

Sep

-07

De

c-0

7

Mar

-08

Jun

-08

Sep

-08

De

c-0

8

Mar

-09

Jun

-09

Sep

-09

De

c-0

9

Mar

-10

Jun

-10

Sep

-10

De

c-1

0

Mar

-11

Jun

-11

Sep

-11

De

c-1

1

Mar

-12

Jun

-12

Sep

-12

De

c-1

2

Mar

-13

Jun

-13

Sep

-13

Manufacturing recruiting difficulty Service sector recruiting difficulty

15

On average, have your new hires in [current month] received a compensation package (wage plus benefits) that is higher, the same, or lower than that received by individuals your firm hired into similar positions during [previous month]?

-15.0

-10.0

-5.0

0.0

5.0

10.0

15.0

20.0

25.0

Jun

-05

Sep

-05

Dec

-05

Mar

-06

Jun

-06

Sep

-06

Dec

-06

Mar

-07

Jun

-07

Sep

-07

Dec

-07

Mar

-08

Jun

-08

Sep

-08

Dec

-08

Mar

-09

Jun

-09

Sep

-09

Dec

-09

Mar

-10

Jun

-10

Sep

-10

Dec

-10

Mar

-11

Jun

-11

Sep

-11

Dec

-11

Mar

-12

Jun

-12

Sep

-12

Dec

-12

Mar

-13

Jun

-13

Sep

-13

Manufacturing new-hire compensation Service sector new-hire compensation

16

Note: Figure represents those employees who answered "somewhat satisfied" or "very satisfied."

Source: 2012 Employee Job Satisfaction and Engagement: A Research Report by SHRM

Gallup 2013 State of US Workforce Study:

Only 30% of US workforce is engaged

70% of employees are disengaged or

actively disengaged

18% of these are actively

disengaged, acting out their unhappiness

Gallup calculates that low employee engagement costs US

businesses $450 billion annually – more than the GDPs of

Israel, Portugal, and Singapore

• Jan, 2012, American Psychology Assn survey

41% of US workers are experiencing work stress regularly and

almost half say low salary has a significant impact on their

stress level at work

Just 54% of employees feel valued, and 32% intend to seek

other employment within a year

HR teams have been hit as hard as

other departments by budget cutting

Leading a rebound within the confines

of smaller HR teams will require greater

creativity

The bottom line for most HR professionals

today is: “Do more with less.”

Many MNEs lost their strong employer brands

during the global recession and have not

regained their former strength

Rebuilding their employer brand will be key to

their business success and ability to convince

high performers to stay with their companies

•

–

•

•

•

–

21

40%

37%

26%

26%

24%

24%

17%

17%

15%

14%

13%

11%

11%

7%

58%

47%

23%

29%

40%

21%

11%

15%

13%

14%

11%

4%

Flexible work arrangements

Culture of trust, open communication and fairness

Opportunities for career advancement*

Higher total rewards package than competitors

Commitment to employee development

Meaningful work with clear purpose in meeting organizations’ …

Stimulating and attractive organizational culture

Latest tools/technology to maximize work efficiency and …

Employees are encouraged to make decisions and take risks

Recognition based on job performance*

Developing human capital managers at all levels

Better opportunities to use skills and abilities

Highly inclusive culture that uses diverse perspectives

Corporate social responsibility and sustainability

2012 (n = 486)

2010 (n = 449)

22

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

HR 2020 © SHRM 2012 23

24

1. Rise of smart machines2. New computational world3. New media ecology4. Globally connected world

25

• Decrease in manual and rote labor• Increase in complexity of jobs

• What are humans better at than machines?• What is humans place among machines?• What are the costs – social and monetary?• What seems impossible today that will be

commonplace tomorrow?

• How will HR be different based on the rise of smart machines? Human factors and ergonomics

competency

26

• Increasingly a numbers-based world• Sensors in everything that count• Data collected with our every action

• How will current and future jobs be impacted by data?

• How will employees deal with number overload?

• How will we fill the math gap?

• How will HR be different in the new computational world? Business Intelligence Competency Computational Thinking

27

• Increase in interactive media and tools• More personalization and closer social

interaction

• What is beyond Facebook?• What is beyond Skype?• What is beyond the smartphone and tablet?• When will virtual reality be hard to tell from

reality?

• How will HR be different in the new media ecology? Media expertise Media psychology

28

• Increasingly a globally connected world• Time-of-day will begin to become

irrelevant• International business organizations will

continue to grow to coordinate and regulate

• How will the battle for productivity impact the global and local economies?

• How do we deal with the haves and have-nots?

• How will HR be different in the new globally connected world? Global Mindset New Global HR Structures

HR 2020 © SHRM 2012 29

Organizational Structure

Challenges

30

1. Centralized vs. Decentralized2. Change Management3. Risk Management4. Future Strategies

31

32

Mismatch of internal and external change is a constant challenge for HR!!

Can outside consultants really know your internal state?

Movement away from external consultants to building a team of internal change agents selected from the best internal HR professionals.

33

34

Risk needs a better definition!

Didn’t we used to say “nothing ventured, nothing gained?”

HR now has a purely compliance lens

HR is in the “no” business

Need to think not only about defensive risk, but also about proactive risk

Ask the question…What will likely happen if I don’t take this risk?

HR 2020 © SHRM 2012 35

If you don’t do it first, someone else probably will

HR 2020 © SHRM 2012 36

Strategies are just starting to include more people elements

HR 2020 © SHRM 2012 37

Going forward HR will need both a physical and a virtual people strategy

Pure psychology….virtual cannot fully work without true relationship building

#1:Grow

from Within

#2:Build/Rebuild

Your Brand

Build or rebuild your employer brand to retain and engage your high-performing employees and attract new talent from outside

Strategic Workforce Planning (SWP)

evaluates future critical talent needs

through systematic workforce assessment

This ability to predict and fill future talent

needs is critical as companies move from

survival mode to long-term sustainability

HR must make the ROI business case to top management for

strategic workforce planning

Developing your talent begins by

creating a culture that rewards people

emotionally for their efforts and meets

their professional expectations

Most employees give top priority to

interesting and challenging work and

growth opportunities

Career and leadership development programs can provide

enriching opportunities to improve skills and knowledge

•

•

•

•

•

•

•

Goal: Create an image of your

organization as a “Great Place to Work”

among your stakeholders and the public

• Your website

• Print and TV ads

• Chat rooms/forums/blogs

• Social Media

• Employee testimonials

• Visual branding on billboards, etc

• Best Places to Work lists

• Industry magazines

• Company buildings and Intranet

• Job podcasting

•

•

45

46

Questions?