global human capital trends 2014: engaging the 21st-century workforce
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Global Human Capital Trends 2014: Engaging the 21st-century workforce reveals the findings of a global survey of more than 2,500 business and HR leaders from 90+ countries –one of the largest talent management surveys of its kind. The survey results paint a clear picture of the challenges and opportunities organizations face in cultivating the talent needed to grow. These dashboards let you explore some of the primary “whats” (survey results) and “whos” (respondent demographics) in ways most meaningful for you. Click through each one for insights to help guide your human capital agenda for the coming year. For more information, visit http://www.deloitte.com/hctrends2014/TRANSCRIPT
Global Human Capital Trends 2014 Survey Findings
2014
• One of the largest ever study of global human capital trends, readiness, and issues
• 2500+ business and HR leaders in 90+ countries
• Covering the major industries and all of the world’s geographies
The research
Today’s workforce demands a whole new set of leadership, talent, recruiting, and engagement strategies. HR organizations are struggling to keep up.
Key findings
Leadership continues to be the biggest challenge companies face around the world
Technology, analytics, and the “overwhelmed employee” are acute focus areas for HR
Skills gaps, rapid obsolescence of skills, the need for next-generation learning, and talent mobility will differentiate companies
“The 21st Century Workforce” is different – and engagement and retention are now top issues on the minds of CEOs and CHROs
HR is falling behind in structure, skills, analytics, technology, and the development of world-class recruiting and L&D
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Note: The key findings are based on the outcomes of the Global HC trends report.
Lead and develop Attract and engage Transform and reinvent
Leaders at all levels: Close the gap between hype and readiness
Talent acquisition revisited: Deploy new approaches for the new battlefield
The reskilled HR team: Transform HR professionals into skilled business consultants
Corporate learning redefined: Prepare for a revolution
Beyond retention: Build passion and purpose
Talent analytics in practice: Go from talking to delivering on big data
Performance management is broken: Replace “rank and yank” with coaching and development
From diversity to inclusion: Move from compliance to diversity as a business strategy
Race to the cloud: Integrate talent, HR, and business technologies
The quest for workforce capability: Create a global skills supply chain
The overwhelmed employee: Simplify the work environment
The global and local HR function: Balance scale and agility
The trends
This year’s 12 critical human capital trends are organized into three areas
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Human Capital Trends 2014
Lead and develop
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• Number 1 talent issue facing organizations around the world
• 21st-century leadership is different with companies facing new leadership challenges
Leaders at all levelsClose the gap between hype and readiness
Current leadership programs falling short
The challenge is to develop leadership
pipelines that are global, broad, and deep,
reaching to every level of the organization
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Corporate learning redefinedPrepare for a revolution
• Biggest problem today is the uncoordinated structure of learning and development
• Corporate training requires content, context, and deep expertise
Slow adoption of leading-edge learning tools
Focus on continuous learning and the move from “push” training
to “pull” learning
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Corporate learning redefinedPrepare for a RevolutionPerformance management is brokenReplace “rank and yank” with coaching and development
• Ranking- and ratings-based performance management is damaging employee engagement, alienating high performers, and costing managers valuable time
A strong majority rethinking performance management
70 percent of respondents stated that
they are either “currently evaluating” or have recently “reviewed
and updated” their performance
management systems
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Corporate learning redefinedPrepare for a RevolutionPerformance management is brokenReplace “rank and yank” with coaching and development
The quest for workforce capabilityCreate a global skills supply chain
• Corporations now compete globally for increasingly scarce technical and professional skills
• Deep capabilities drive performance—and take years to build
The gap is wider in major economies
75 percent of respondents rate
workforce capability as “urgent” or “important”, however only 15 percent believe they are ready to
address it
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Attract and engage
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Talent acquisition revisitedDeploy new approaches for the new battlefield
• A new battlefield has been shaped by new global talent networks and social media
• It is being defined by employment brands and changing views of careers
Most companies reviewing or changing sourcing and recruiting
60 percent of respondents have
updated or are currently revamping their talent
sourcing strategy, another 27 percent are considering changes
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• Number 2 priority rated by executives around the world
• Millennials are 34 per cent of global workforce - some 70 per cent of Millennial want to launch their own business as some point
Companies struggle to instill passion and purpose
Any workplace that lags in inspiring passion and
purpose will suffer by losing key employees—and at an increasing rate as the global economy picks up momentum
Beyond retentionBuild passion and purpose
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From diversity to inclusionMove from compliance to diversity as a business strategy
• Organizations promote diversity however they struggle to fully leverage the business benefits of a diverse workforce
• Only one company in five (20 percent) believes it is fully “ready” to address this issue
Wider gaps observed in major economies
The gap between the urgency and companies’ readiness to address it is particularly wide in
Japan, South Africa, and China
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• An explosion of information or “hyper-employment” and always-connected 24/7 work environment is overwhelming employees
• This undermines productivity and contributes to low employee engagement
An underwhelming response to today’s overloaded employee
65 percent of executives rated the trend as
“urgent” or “important”, while 44 percent said
that they are “not ready” to deal with it
The global and local HR functionBalance scale and agilityThe overwhelmed employeeSimplify the work environment
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Transform and reinvent
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• Businesses report that their HR teams are “not ready” or up to the job
• HR teams need to develop: HR and talent skills; Business, industry, and global skills; and Management, leadership, and program implementation skills
65 per cent assess their capabilities as “Adequate” to “Under-performing”
Third most urgent and important trend with 77 percent of respondents ranking it as “urgent”
or “important”
The overwhelmed employeeSimplify the work environmentThe reskilled HR teamTransform HR professionals into skilled business consultants
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• HR is evolving into a data-driven function
• However, most companies are yet to convert these capabilities into action
Talent analytics in practiceGo from talking to delivering on big data
Nearly half of the companies surveyed are moving forward
Companies that successfully leverage
analytics will be positioned to outperform their peers in executing their talent strategies
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Race to the cloudIntegrate talent, HR, and business technologies
• Today’s integrated HR platforms are “systems of engagement”
• They enable improvements in productivity, capability development, collaboration, and data-driven decision making
Limited investment in HR and talent systems
56 percent of the respondents say their
companies are either not considering updating or have no definitive plans to update their systems
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• Today’s challenge is developing an integrated global HR operating model that allows for customizable local implementation
• Companies in Brazil, Japan, and the United Kingdom are struggling to adapt
Wide gaps observed across economies
81 percent of large organizations report
that implementing an HR global operating model is “urgent” or
“important” today
The global and local HR functionBalance scale and agility
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Available resources
We’ve developed a set of tools to enable you to have conversations within your organization and your leaders
How to access the report
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Read the PDF Report and share it within your organization
www.deloitte.com/hctrends2014
Use the Interactive Dashboard www.deloitte.com/hcdashboard to filter the trend data by:
• Organization size• Industry• Region• Country• Level in organization
Download the iPad App and familiarize yourself with the trends
Follow us on twitter: @DeloitteTalent and @Bersin
Subscribe to the HR Times blog: www.hrtimesblog.com
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