How are we doing?

• 468 companies in every major industry, globally

• 531 HR & non-HR executives HR leaders (104), business leaders

(155)• Top strategic challenges:

responding to competition developing new products & services

capitalising on technology

• Clear gap between business needs & HR’s perception of functions

• When leaders talk about HR, talk about: pay, performance reviews, HR

efficiency • When they talk about PEOPLE: -

talent management, workforce productivity, leadership development -

HR function not even mentioned.• Two distinct conversations are

taking place

“A well run company understands the value of its people right down to its corporate DNA”

“Show me a company that exploits its people or undervalues its people and you’ll find someone who’s underperforming relative to others in their industry, certainly over the long term”

“I believe that there’s a real renaissance in business today as the recognition takes hold that your performance is driven by people and that you have to invest in people management in order to build sustainable performance”

“You cannot divorce people from strategy” You cannot exercise strategy without

people”

“It’s the responsibility of managers throughout the company to identify leaders and develop them”

“Every manager needs to be able to point to 2-3 people who have the potential to move up - and provide experiences to make that possible”

“I make it my business to know who‘s next in line

Critical talent varies from industry: UPS – delivery drivers are critical to

customer perception Key task - focus on retaining critical talent “We are taking a harder look at high value

people. And addressing their concerns and WLB. Not taking it easy on them - but not killing them either”

Corporate culture and employee behaviour have huge impact on performance

Values & cultural attitudes are foundation for employee engagementto drive up performance and results

CEO is most responsible for influencing culture (60%)

52% HR believe are major contributor to culture Business leaders disagree:

CHRO – major influence: 32%CHRO – no major influence: 24%

“It’s not just building a high-performance organisation, it’s about how you build passion.How do you engage people and have them bring more than just their basic competence, which is just enough to collect a pay-check?”

Connect people top people

Connect people to purpose

Connect people to resources

Replacing staff by outside recruitment is often not enough with talent shortages

Grow own talent “We find that constant reinforcement of what is expected delivers improvement”

Investment in development:- boosts employee loyalty- increases performance- encourages skills needed to compete

Not relegated to “training department”“EVERY manager has to be committed to drive the programme – and we measure the engagement”

Fully integrated into daily operations“You will not see people being discussed as our greatest asset once a year.It drives our dashboard every day”

Senior business leaders not convinced HR is ready to act as strategic partner(25% - “HR plays strategic role”/ HR leaders – 37%)

HR still viewed as cost or does admin job “Human capital management is a strategic

capability that must be practised throughout the company. Not reside in one function”

Are HR & Human capital two fundamentally different issues?(cf. Finance & accounting)

People strategic issues are BUSINESS issuesHR operations are primarily admin

Opportunity for HR: to grow its importance; improve its contribution; enhance image; improve reputation

New approach, not just a “re-branding”

HR functions today Priorities for HR in Future“The big Five”

Managing talent

Managing demographics

Organisation development Become learning organisation

Hiring & recruitment Work-life balance

Compensation & benefits Managing change/ cultural transformation

Legal compliance HR processes

Performance management/ appraisal Improving leadership development

Employee & trade union relations Better performance management/ rewards

Health & safety Enhancing employee commitment

Employee training & development Company specific priorities

Career development Transforming HR in strategic partner

Measuring HR & employee performance

Managing diversity

Manage corporate social responsibility

Manage globalisation

Provide shared resourcing & outsourcing HR

Deliver on recruiting & staffing

Mastering HR processes

Restructuring organisation