shrm challenges facing hr future 2022 final

7/22/2019 SHRM Challenges Facing HR Future 2022 FINAL

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Challenges Facing HR Over theNext 10 Years

November 1, 2012


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What will be the three biggest challenges facing HR executives over the next 10 years?Retaining and rewarding the best employees (59%), developing the next generation ofcorporate leaders (52%), and creating a corporate culture that attracts the bestemployees to organizations (36%).

What will be the biggest investment challenge for organizations over the next 10 years?About two-fifths (43%) of HR professionals indicated that obtaining human capital and

optimizing human capital investments will be the biggest investment challenge. Which tactics will be the most effective in attracting, retaining and rewarding the best

employees over the next 10 years?The top four responses were providing flexible workarrangements (40%); creating an organizational culture where trust, open communicationand fairness are emphasized and demonstrated by leaders (37%); providing employeeswith opportunities for career advancement (26%); and offering a higher total rewardspackage than organizations that compete for the same talent (26%).

How do HR Professionals expect the future workforce to evolve over the next 10 years? Interms of workforce size, the majority (69%) of HR professionals expect their organization tohave a larger workforce in 10 years. Just over one-half (54%) indicate that their use ofcontract/temporary employees will not change, and 29% expect a growing proportion ofcontract/temporary employees. Nearly one-half (47%) indicate that over the next 10 yearsthere will be a greater proportion of full-time employees, whereas the other half believethe workforce will stay the same (27%) or have more part-time employees (26%).

Challenges Facing HR Over the Next 10 Years SHRM 2012 2

Key Findings


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Which HR competencies will be most critical 10 years from now? Over one-third of HRprofessionals think that the four most critical competencies in 10 years will be businessacumen (42%), organizational leadership and navigation (40%), relationship management(37%), and communication (35%).

What components (subcompetencies) of business acumen will be most critical in 10years?HR professionals expect the top three components to be HR and organizationalmetrics/analytics/business indicators (45%), knowledge of business operations and logistics(41%), and strategic agility (41%).

What bodies of knowledge do HR professionals rate as being the most important in 10years? The four bodies of knowledge that were rated as most important were strategicbusiness management, talent management, change management, and workforceplanning and employment.


Key Findings (continued)


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Challenges in HR


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Over the next 10 years, what do you think will be the threebiggest challenges facing HR executives at yourorganization?


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 world

Creating an employee-centric, service-orientedHR organization

Breaking down cultural barriers that make it

difficult to create a truly global company

Other

2012 (n = 483)

2010 (n = 465)

Note: Percentages do not total 100% due to multiple response options. Respondents who answered dont know were excluded from this

analysis.


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Over the next 10 years, what do you think will be the threebiggest challenges facing HR executives at yourorganization?

6

Note: Only statistically significant differences are shown.

Comparisons by organization sector

Publicly owned for-profit and privately owned for-profit organizations are more likely than nonprofit organizations toindicate that finding the right employees in the right markets where we do business around the world is one of thebiggest challenges facing HR executives.


Publicly owned for-profit (24%)

Privately owned for-profit (19%)

> Nonprofit (8%)

Challenges Facing HR Over the Next 10 Years SHRM 2012


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


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)

Note: Percentages do not total 100% due to rounding.


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Talent Management Tactics


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Over the next 10 years, which of the following tactics doyou believe will be most effective in attracting, retainingand rewarding the best employees in your organization?


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%

Providing flexible work arrangements

Promoting a culture of trust, open communication and fairness

Providing employees with opportunities for career advancement*

Offering a higher total rewards package than competitors

Demonstrating a commitment to employee development

Providing meaningful work with clear purpose in meeting organization's objectives

Creating a stimulating and attractive organizational culture

Having latest tools/technology to maximize work efficiency and effectiveness

Encouraging employees to make decisions and to take risks

Providing employees with recognition based on job performance*

Developing human capital managers at all levels of the organization

Providing employees with better opportunities to use skills and abilities

Creating a highly inclusive culture that uses diverse perspectives

Being committed to corporate social responsibility and sustainability

2012 (n = 486)

2010 (n = 449)

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


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Over the next 10 years, which of the following tactics doyou believe will be most effective in attracting, retainingand rewarding the best employees in your organization?

10



Nonprofit organizations are more likely than privately owned for-profit organizations to indicate that creating anorganizational culture where trust, open communication and fairness are emphasized and demonstrated by leaders isone of the most effective tactics in attracting, retaining and rewarding the best employees.


Nonprofit (51%) > Privately owned for-profit (33%)



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Future Workforce


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Over the next 10 years, how do you expect the sizeof your organizations workforce to evolve?


69%

16%

15%

48%

37%

15%

Larger workforce

Smaller workforce

No change

2012 (n = 442)

2010 (n = 470)

Note: Respondents who answered dont know were excluded from this analysis.


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Over the next 10 years, how do you expect the sizeof your organizations workforce to evolve?

13Note: Only statistically significant differences are shown.


Privately owned for-profit organizations are more likely than nonprofit and government organizations to expect the sizeof their organizations workforce to grow larger over the next 10 years.


Privately owned for-profit (80%) >Nonprofit (62%)

Government (36%)


Government organizations are more likely than privately owned for-profit organizations to expect the size of theirorganizations workforce to get smaller over the next 10 years.


Government (39%) > Privately owned for-profit (11%)

Nonprofit organizations are more likely than privately owned for-profit organizations to expect the size of theirorganizations workforce to have no change over the next 10 years.


Nonprofit (23%) > Privately owned for-profit (10%)


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Over the next 10 years, how do you expect yourorganizations use of contract or temporaryemployees to evolve?


54%

29%

17%

22%

65%

13%

No change

Growing proportion of

contract/temporary employees

Growing proportion of full-time

employees

2012 (n = 424)

2010 (n = 448)

Note: Respondents who answered dont know were excluded from this analysis.


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Over the next 10 years, how do you expect yourorganizations use of contract or temporaryemployees to evolve?

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Comparisons by organization staff size

25,000 or more employees (57%) >

1 to 99 employees (25%)

100 to 499 employees (21%)

500 to 2,499 employees (29%)



Organizations with 25,000 or more employees are more likely than organizations with 1 to 2,499 employees to expect agrowing proportion of contract or temporary employees over the next 10 years.



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Over the next 10 years, how do you expect yourorganizations employment status to evolve?


47%

27%

26%

19%

30%

50%

Growing proportion of full-time

employees

No change

Growing proportion of part-time

employees

2012 (n = 434)

2010 (n = 447)

Note: Respondents who answered dont know were excluded from this analysis. Percentages may not total 100% due to rounding.


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Over the next 10 years, how do you expect yourorganizations employment status to evolve?

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25,000 or more employees (44%) > 1 to 99 employees (16%)



Organizations with 25,000 or more employees are more likely than organizations with 1 to 99 employees to expect agrowing proportion of regular part-time employees over the next 10 years.

Comparisons by organization sector Privately owned for-profit organizations are more likely than nonprofit and government organizations to expect agrowing proportion of regular full-time employees over the next 10 years.


Privately owned for-profit (58%) >Nonprofit (38%)

Government(21%)


Government organizations are more likely than privately owned for-profit organizations to expect a growing proportionof regular part-time employees over the next 10 years.


Government (50%) > Privately owned for-profit (21%)


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HR Competencies


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


42%

40%

37%

35%

30%

26%

25%

21%

17%

Business Acumen

Organizational Leadership and Navigation

Relationship Management

Communication

Critical Evaluation

HR Technical Expertise and Practice

Consultation

Ethical Practice

Global and Cultural Effectiveness

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


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2,500 to 24,999 employees (56%)25,000 or more employees (59%)

> 1 to 99 employees (24%)



Organizations with 2,500 or more employees are more likely than organizations with 1 to 99 employees to see businessacumen as being most critical for the HR professional 10 years from now.



100 to 499 employees (35%) > 2,500 to 24,999 employees (14%)

Organizations with 100 to 499 employees are more likely than organizations with 2,500 to 24,999 employees to see HRtechnical expertise and practice as being most critical for the HR professional 10 years from now.


2,500 to 24,999 employees (27%) > 100 to 499 employees (10%)

Organizations with 2,500 to 24,999 employees are more likely than organizations with 100 to 499 employees to seeglobal and cultural effectiveness as being most critical for the HR professional 10 years from now.


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21Note: Only statistically significant differences are shown.

Comparisons by organization sector Publicly owned for-profit organizations are more likely than nonprofit organizations to see business acumen as beingmost critical for the HR professional 10 years from now.


Publicly owned for-profit (57%) > Nonprofit (34%)



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Ten years from now, when considering Business Acumenfor HR professionals, which of the following components(i.e., subcompetencies) will be most critical?


45%

41%

41%

28%

25%

18%

17%

17%

16%

14%

11%

6%

1%

HR and Organizational Metrics/Analytics/Business Indicators

Knowledge of Business Operations/Logistics

Strategic Agility

Business Knowledge

Knowledge of Government and Regulatory Guidelines

Knowledge of Finance and Accounting

Economic Awareness

Knowledge of Labor Markets

Knowledge of Technology

Systems Thinking

Effective Administration

Knowledge of Sales and Marketing

Other



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Ten years from now, when considering Business Acumenfor HR professionals, which of the following components(i.e., subcompetencies) will be most critical?

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2,500 to 24,999 employees (57%) > 1 to 99 employees (34%)



Organizations with 2,500 to 24,999 employees are more likely than organizations with 1 to 99 employees to consider HRand organizational metrics/analytics/business indicators as being most critical for the HR professional 10 years from now.



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Rate the importance of these bodies of knowledgefor 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


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Organization Demographics


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Demographics: Organization Industry



Percentage

Professional, scientific and technical Services 20%

Health care and social assistance 17%

Manufacturing 16%

Educational services 13%Finance and insurance 12%

Accommodation and food services 7%

Transportation and warehousing 6%

Arts, entertainment and recreation 5%

Government agencies 5%Administrative and support and waste management and remediationservices

4%

Religious, grant-making, civic, professional and similar organizations 4%


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Demographics: Organization Industry(continued)



Percentage

Retail trade 4%

Construction 3%

Information 3%

Real estate and rental and leasing 3%Repair and maintenance 3%

Wholesale trade 3%

Agriculture, forestry, fishing and hunting 2%

Mining 1%

Personal and laundry services 1%Utilities 1%

Other 9%


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Demographics: Organization Sector


47%

25%

18%

7%

3%

Privately owned for-profit

Nonprofit

Publicly owned for-profit

Government

Other

n = 462


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Demographics: Organization Staff Size


21%

30%

19%

20%

10%

1 to 99 employees

100 to 499 employees

500 to 2,499 employees

2,500 to 24,999 employees

25,000 or more employees

n = 454


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Other Demographics


U.S.-based operations only 71%

Multinational operations 29%

Single-unit organization: An organizationin which the location and theorganization are one and the same.

28%

Multi-unit organization: An organizationthat has more than one location.

72%

Multi-unit headquarters determines HRpolicies and practices

51%

Each work location determines HR policiesand practices

3%

A combination of both the work locationand the multi-unit headquarters determinesHR policies and practices

46%

Is your organization a single-unit organization ora multi-unit organization?

For multi-unit organizations, are HR policies andpractices determined by the multi-unit headquarters,by each work location or by both?

Does your organization have U.S.-based operations (business units) only,or does it operate multinationally?

n = 470 n = 473

n = 347

Corporate (companywide) 71%

Business unit/division 17%

Facility/location 12%

n = 348

What is the HR department/function forwhich you responded for throughout thissurvey?


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2012 response rate = 17%

2010 response rate = 17%

Sample composed of 487 (2012) and 449 (2010) randomly selected HR professionals from

SHRMsmembership

Margin of error +/-5%

2012 survey fielded September 14 to September 28, 2012

2010 survey fielded August 10 to August 23, 2010


Challenges Facing HR Over the Next 10 Years

Survey Methodology


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For more survey/poll findings, visit www.shrm.org/surveys

For more information about SHRMsCustomized Research Services, visitwww.shrm.org/customizedresearch

Follow us on Twitter @SHRM_Research


Challenges Facing HR Over the Next 10 Years

About SHRM Research

Project leader:Tanya Mulvey, survey research analyst, SHRM Research

Project contributors:Mark Schmit, Ph.D., SPHR, vice president, SHRM ResearchEvren Esen, manager, Survey Research Center, SHRM ResearchAlexander Alonso, Ph.D., SPHR, director, HR Thought Leadership

Copy editor:Katya Scanlan, SHRM Knowledge Center
http://www.shrm.org/surveyshttp://www.shrm.org/customizedresearchhttp://twitter.com/SHRM_Researchhttp://twitter.com/SHRM_Researchhttp://twitter.com/SHRM_Researchhttp://www.shrm.org/customizedresearchhttp://www.shrm.org/surveys

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