the hr software market reinvents itself -...

Copyright © 2016Deloitte Development LLC. All rights reserved. 1 Global Human Capital Trends 2016

HR Technology Disruptions

The HR Software Market Reinvents Itself

Josh Bersin Principal and Founder, Bersin by Deloitte

Deloitte Consulting, LLP

November, 2016

Copyright © 2016 Deloitte Development LLC. All rights reserved.

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Copyright © 2016 Deloitte Development LLC. All rights reserved. 2

HR Technology Disruptions

The HR Software Market Reinvents Itself

Josh Bersin Principal and Founder, Bersin by Deloitte

Deloitte Consulting, LLP

November, 2016 Copyright © 2016 Deloitte Development LLC. All rights

reserved.


Demographic

upheavals:

Millennials make up

more than half the

workforce, and Boomers

are working into their

70s and 80s.

Digital technology

is everywhere:

Technology is disrupting

business models and

radically changing the

workplace and how

work is done.

Rate of change

has accelerated:

Business must become

more agile to keep

up with the rapid pace

of change.

New social

contract between

companies and workers:

Younger workers demand

rapid career growth,

compelling and flexible

workplace, and a sense

of purpose at work.

Forces Disrupting Organizations Today


Digital Disruption

A New Industrial Revolution

90% of organizations surveyed by MIT and Deloitte

anticipate their industries will be totally disrupted by

digital trends.

The Future of Work

Robotics, AI, Sensors are Here

Siri Cortana Watson Alexa Viv

Robotics Average cost below $25,000.

China purchasing 150,000 in 2016 to deal

with shrinking workforce


Sources: Deloitte Human Capital Trends 2014 and 2015

Too much technology:

The overwhelmed employee

The “average” US worker now

spends 25% of their day reading

or answering emails

Fewer than 16% of companies have

a program to “simplify work” or help

employees deal with stress.

More than 80% of all companies

rate their business “highly complex”

or “complex” for employees.

The average mobile phone user

checks their device 150 times a day.

The “average” US worker works

47 hours and 49% work 50+ hours per

week, 20% at 60+ hours

40% of the US population believes it is

impossible to succeed at work and

have a balanced family life.


• Since 2000, American workers have

lost an entire week of vacation,

dropping average vacation days from

20.3 to 16.2

• Americans left 658 million unused

vacation days and lost 220 million of

them in 2015

• 39% of Americans “want to be seen

as a work martyr” yet 86% say it’s

bad for their family life.

We Are Working More Hours: The Vacation Crisis

48% of

Millennials want to be

seen as a

“work martyr”

Millennials

50% more

likely to

forfeit

vacation

days


Productivity is Suffering – Is Technology Helping?

US Productivity Last Ten Years

1 billion

Smartphones i-Phone

Launched

100 Million

Twitter users


Average

3.2

What are these

companies doing?

Glassdoor ratings of employer recommendations — 200,000+ respondents

Engagement Remains a Challenge

Summer, 2016 Glassdoor Bersin Research


How is Disruption Impacting Businesses?

2016 Deloitte Human Capital Trends

Organizational structure

Leadership gaps

Culture

Engagement

92%

90%

86%

86%

Organizational learning

Design thinking

Skills of HR organization

Analytics

Digital HR

Workforce management

77%

74%

70%

84%

78%

78%

% Urgent

55%

58%

54%

48%

44%

38%

36%

36%

32%

28%

% Urgent

2015

…

51%

50%

39%

40%

…

39%

29%

…

…


Organizational structure has changed:

A Network of Teams

B

A

D C F

A

C D E

B

G

How things were How things “are” How things work

Shared values and culture

Transparent goals and

projects

Free flow of information

and feedback

People rewarded for their

skills and abilities, not

position

E


We Build Tools, then The Tools Change Us

How Technology Changes Us

Steam Engine - 1874 Telegraph and Electricity - 1882 TRS-80 1977

IBM PC 1981



What Could be Coming?

Smart Phone 2007 Wearables 2011 Smart Badge 2013 Virtual News 2015



What Could be Coming?

IBM Watson 2013 Amazon Echo 2015 Pokemon Go 2016


Major Disruption in

Core HR Technology Markets

1


Shift in Investment toward New HR and Workplace Tools

HR Technology Now A Hot Marketplace


The Reinvention of HR Technology

ERP Vendors Now Under Pressure


Automate Integrate Engage Empower

1990s-2000s 2004-2012 2012-2015 2017+

Automated Talent

Management

Integrated Talent

Management

Engagement, Fit,

Culture, Analytics

Empowerment,

Performance, Leadership

Systems of Automation

Practice-driven solutions

Systems of Engagement,

Productivity-driven solutions

From Talent Management to People Management

Engage


Benefits &

Compensation

Hiring

Recruiting E-Learning Performance Talent

Network Based

Applications

New Systems of

Engagement

HR Technology Shift in Focus M

AR

KE

T G

RO

WT

H -

A

DO

PT

IO

N

2 0 0 0 2 0 1 7 P R O G R E S S I O N O V E R T I M E

Compensation

HRIS

Benefits

Administration

Applicant Tracking

Recruiting Sourcing

Learning

Management

Workforce

Management

Succession

Management

Performance

Management

Integrated Talent Mgmt

Analytics

Tools

Social

Recognition

Network

Recruiting

HRMS + Talent +

Workforce Management

Self-Service

Apps

Personality and Pre-

Hire

Culture

Assessment

Predictive

Analytics

Real Time

Engagement

Mobile

Apps for HR

Process

Automation

Integration &

New Talent Apps

Analytics Driven

“Systems of

Engagement”

Apps that

“Make Work Life

Better”


Shift to Cloud is Losing its Luster

• Core HR Technology spending is slowing (41% say it’s flat)

• Clients not fully satisfied: only 21% of customers say talent systems “always meet their needs.”

• Two biggest growth areas are Learning and Analytics (37% yty)

• Career, succession, onboarding, analytics hottest functional needs

• User satisfaction is 2/3 lower than vendor satisfaction

Rip and Replace Pace is Slowing

How Will You Upgrade Your HR Technology?

2015 Cedar Crestone survey and 2015 Bersin by Deloitte HR Systems Research

Ris

k

Speed


HR Technology Integrated into Work

Integrated Employee Experience Platforms

Work Management Systems

Core HR Systems

Talent Management Systems

Workflow Interaction

Bots

Content

Videos

Podcasts

Notifications

Campaigns Real-Time

Analytics

Case

Management

Only 1/3 of

companies have

mobile self-

service today

2015 Cedar Crestone survey and 2015 Bersin by Deloitte HR Systems Research


New Generation of

People Management Software

2


Feedback and

Engagement

Reinventing

Performance

Video Based

Learning & Career

Social

Recognition Well-Being

Work – Team

Management

2016 and Beyond: A New Set of Disruptive Applications M

AR

KE

T G

RO

WT

H -

A

DO

PT

IO

N

2 0 1 6

Pulse

Survey

Text

Analytics

Mobile

Feedback

2 0 2 0

Culture

Assessment

Coaching

Tools

Checkins

with Feedback

Agile, open

goal management

Org Network

Analysis

Recognition

Everywhere

Custom Rewards

Programs

Customer

Recognition

P R O G R E S S I O N O V E R T I M E

Video Learning

Content

Curation

Intelligent

Learning

Career

Planning

Gamification

Accreditation

Well Being

Fitness Tracking

Competitions

Social Sharing

Points

Gamification

Fitness Merges

w/Engagement

Virtual Work

Management

Document

Management

Goal Sharing

Goal Tracking

Communications

Messaging


Market Evolution becoming Disruptive Again

A New Talent Management Market Emerges

Social Recognition

Well Being

Learning Suites Payroll - Talent

Culture

Performance Management

Mid-Market SMB

Recruitment


Convergence of HR Systems Ahead

Diet

Wellness

Fitness

Challenges

Goal Management

Feedback

Pulse

Survey

Surveys

Engagement Tools

Mobile

Feedback

Customer

Feedback

Check Ins

Personality

Assessment

Performance

Review

Fitness

Monitoring

Health

Behavior Change

Social Recognition

Customer based

Recognition

Community

Circles

Affinity

Groups Anniversaries

Work Events

Engagement

Analytics

Travel

Time Management

Video Learning

Video Sharing

Gamified

Onboarding

Career

Planning

Training and

Certification

Engagement

Feedback

Performance Recognition

Rewards Learning

Well Being &

Work Management


From Application Tracking to Recruitment Success

Reinvention of the Talent Acquisition Market

Applicant

Tracking

Candidate

Marketing

Sourcing

Video

Interview

Analytics

Next Gen

Talent

Acquisition

Onboarding

Manager

Tools

?


Integrating HR into Work Itself…

And There’s More to Come…


Radical New Tools

for Performance Management

3


Historic Perspective on Performance and Management

The Evolution of Management Thinking We are Here

The Industrial Corporation

Hierarchical Leadership

Collaborative Management

Networks of Teams

<1950s 1960s-80s Today 1990s

Andrew Carnegie Henry Ford

Netflix, Google, Facebook, Amazon

Jack Welch Peter Drucker

Howard Schulz Steve Jobs

Profit, Growth, Financial Engineering

Customer Service, Employees as Leaders

Mission, Purpose, Sustainability

Operational Efficiency

2020

Pu

rpo

se, M

ean

ing,

and

Emp

ow

ermen

t?

Industrial Age People as Workers

Management by Objective

Servant Leadership Work Together

Empower the Team

The Corporation is King

The Executives are King

The Teams and Team Leaders are Kings

The People are King(s)


GE New Performance Feedback Tool

Total Redesign for Mobile: PD@GE


New Models for Compensation and Rewards

Yes Ratings Are Going Away


Feedback = Performance

Deloitte Feedback Process Helps Drive Performance

1. I am really enthusiastic about the mission of the firm

2. At work, I clearly know what is expected of me

3. In my team, I am surrounded by people who share my values

4. At work, I have the chance to use my strengths every day

5. My teammates have my back

6. I know I will be recognized for excellent work

7. I have great confidence in the firm’s future

8. In my work, I am always challenged to grow

BASELINE

BOTTOM QUARTILE

TOP QUARTILE

1

2

3

4

5

6

7

8

4.4

3.2

4.2

4.0

3.8

3.6

3.4

Pulse Survey items

Questions that Predict High Performance at Deloitte

Source: Deloitte pilots FYs14-15

Questions © Marcus Buckingham Company.


Culture and Engagement:

“Always-On” Feedback

4


The Feedback System

How Does Feedback Work Today?

Engagement

Survey

Senior Management Team

Employees

Line Managers | HR

Performance

Review

Filtering and Cleaning

Time

Per

Year


Feedback is the Killer App

The World of Feedback Apps is Here Traditional

Engagement Surveys

Work Environments

Quick Feedback

Anonymous Network Apps

Performance Management

Social Recognition

Well Being

Culture

Pulse Surveys


Em

plo

yee

Vit

ality

Business Performance

Cost

Reduction Labor

Productivity

Retention Productivity Collaboration Team

Performance

Leadership

Health

Monitoring

Employee

Assistance

Medical

Benefits

Fitness

Challenges

Nutrition

Exercise

Sleep

Stress

Sustainable Performance

Recognition

Skills and

Training

Work

Environment

Rewards

Leadership

Management

Clear Goals

Growth

Opportunities

Drive

Wellbeing

Self

Discovery Career

Purpose

Mindfulness

Abundance

Mentality

Positive Thinking

Culture Fit

Family

From Wellness to WellBeing to Performance


New Generation of Learning

Employees in Charge

5


“Over 300 years of economic history,

the principal and most enduring

mechanism for distribution of wealth

and reduction in inequality is the

diffusion of skills and knowledge.”

Why learning is so important to employees

The learning curve is the earning curve


• Video is now >55% of all internet traffic and

mobile is now over 60% (KP Internet Trends 12/2015)

• 35 Million people have enrolled in MOOCs

in the last four years, with 2015 enrollments

doubling 2014 (Class Central)

• Over 50% of learners use mobile for more

than 1/3 of their learning (Degreed)

• India is estimated to be a $3-4 billion

market for corporate learning and MOOCs

Expert and user authored video is taking over

Video and Mobile is Taking Over Learning


Consumerization of education has arrived

MOOCs Forever Changed Education

• 400+ universities. 2,400+ courses.

• 35+ million students.


End of the Learning Management System?

A New Market Emerges: Learning Experience Platform

The “Learning Management System” (LMS)

Mobile Pathways Videos Articles Channels People Courses

Search | Curation | Recommendations | Machine Learning

The “Learning System”


People Analytics

Takes Off

6


The New World of People Analytics

Recruiting &

Workforce

Planning

Comp and

Benefits,

Rewards

Performance

Succession

Engagement

Learning &

Leadership

HRMS

Employee

Data

Engagement &

Assessment

+

Sales Revenue

Productivity

Customer

Retention

Product Mix

Accidents,

Errors, and Fraud

Quality

Downtime

Losses

Groundbreaking new insights and tools for

managers to make better decisions (not HR)

Data management, Analytics, IT,

and Business Consulting Expertise

+

=

This is NOT HR ANALYTICS!

Location,

Travel,

Meeting Time

Organizational

Network Analysis

Sentiment, Heart

rate, Voice +


People Analytics is Finally Taking Off

2015 2016 % Change

Performing multi-year workforce

planning 38% 48% + 26%

Correlating people data to business

performance 24% 39% + 63%

Correlating people data to business

performance (% excellent) 5% 11% + 120%

Using people data to predict business

performance 28% 36% + 29%

Using people data to predict

performance (% excellent) 4% 9% + 125%

Rapid Progress in 2016 and 2017

Deloitte Global Human Capital Trends, 2016 and 2015

Planning

Correlation

Predicting


What our research discovered

Bersin by Deloitte Talent Analytics Maturity Model

Operational reporting Reactive reporting of operational & compliance measures •

Focus on data accuracy, consistency & timeliness

Level 1

Advanced reporting Proactive reporting for decision-making • Analysis of trends

& benchmarks • Customizable, self-service dashboards

Level 2

Advanced analytics Statistical analysis to help solve business problems • Identification of

issues

& actionable solutions • Centralized staffing & integrated data

Level 3

Predictive analytics Development of predictive models • Scenario planning • Integration

with business & workforce planning • Data governance model

Level 4

Bers

in b

y D

elo

itte

56%

30%

10%

4% 7%


New types of data, new ways of analyzing it

Markets Converge: Text Analysis | Sentiment Analysis | Organizational Network Analysis | Feedback Systems


AI Applied to Recruitment and Selection

Video Analytics Becomes Real

https://www.fastcompany.com/3064863/election-2016/watch-

this-ai-platform-assess-trumps-and-clintons-emotional-

intelligence

• Video interviewing now nearly

mainstream, as many as 40% of

interviews are done digitally

• AI software (HireVue) can now detect

race, emotion, gender, and tendency to

exaggerate or lie through video

• While use of this data is not legally

defensible yet, companies are actively

using this data to select candidates


Digital HR

The Design Revolution

7


Design Thinking Comes to HR


Rapid Adoption and Engagement with Technology

Success of Design Thinking in HR


Bottom Line: The HR Software is Reinventing Itself

http://marketing.bersin.com/hr-technology-disruptions-2017.html








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