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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.
Copyright © 2016Deloitte Development LLC. All rights reserved. 4 Global Human Capital Trends 2016
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
Copyright © 2016Deloitte Development LLC. All rights reserved. 5 Global Human Capital Trends 2016
Digital Disruption
A New Industrial Revolution
90% of organizations surveyed by MIT and Deloitte
anticipate their industries will be totally disrupted by
digital trends.
Robotics Average cost below $25,000.
China purchasing 150,000 in 2016 to deal
with shrinking workforce
Copyright © 2016Deloitte Development LLC. All rights reserved. 8 Global Human Capital Trends 2016
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.
Copyright © 2016Deloitte Development LLC. All rights reserved. 9 Global Human Capital Trends 2016
• 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
Copyright © 2016Deloitte Development LLC. All rights reserved. 10 Global Human Capital Trends 2016
Productivity is Suffering – Is Technology Helping?
US Productivity Last Ten Years
1 billion
Smartphones i-Phone
Launched
100 Million
Twitter users
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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
Copyright © 2016Deloitte Development LLC. All rights reserved. 12 Global Human Capital Trends 2016
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%
…
…
Copyright © 2016Deloitte Development LLC. All rights reserved. 13 Global Human Capital Trends 2016
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
Copyright © 2016Deloitte Development LLC. All rights reserved. 15 Global Human Capital Trends 2016
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
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We Build Tools, then The Tools Change Us
What Could be Coming?
Smart Phone 2007 Wearables 2011 Smart Badge 2013 Virtual News 2015
Copyright © 2016Deloitte Development LLC. All rights reserved. 17 Global Human Capital Trends 2016
We Build Tools, then The Tools Change Us
What Could be Coming?
IBM Watson 2013 Amazon Echo 2015 Pokemon Go 2016
Copyright © 2016Deloitte Development LLC. All rights reserved. 18 Global Human Capital Trends 2016
Major Disruption in
Core HR Technology Markets
1
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Shift in Investment toward New HR and Workplace Tools
HR Technology Now A Hot Marketplace
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The Reinvention of HR Technology
ERP Vendors Now Under Pressure
Copyright © 2016Deloitte Development LLC. All rights reserved. 21 Global Human Capital Trends 2016
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
Copyright © 2016Deloitte Development LLC. All rights reserved. 22 Global Human Capital Trends 2016
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”
Copyright © 2016Deloitte Development LLC. All rights reserved. 23 Global Human Capital Trends 2016
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
Copyright © 2016Deloitte Development LLC. All rights reserved. 24 Global Human Capital Trends 2016
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
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New Generation of
People Management Software
2
Copyright © 2016Deloitte Development LLC. All rights reserved. 26 Global Human Capital Trends 2016
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
Copyright © 2016Deloitte Development LLC. All rights reserved. 27 Global Human Capital Trends 2016
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
Copyright © 2016Deloitte Development LLC. All rights reserved. 28 Global Human Capital Trends 2016
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
Copyright © 2016Deloitte Development LLC. All rights reserved. 29 Global Human Capital Trends 2016
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
?
Copyright © 2016Deloitte Development LLC. All rights reserved. 30 Global Human Capital Trends 2016
Integrating HR into Work Itself…
And There’s More to Come…
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Radical New Tools
for Performance Management
3
Copyright © 2016Deloitte Development LLC. All rights reserved. 32 Global Human Capital Trends 2016
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)
Copyright © 2016Deloitte Development LLC. All rights reserved. 33 Global Human Capital Trends 2016
GE New Performance Feedback Tool
Total Redesign for Mobile: PD@GE
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New Models for Compensation and Rewards
Yes Ratings Are Going Away
Copyright © 2016Deloitte Development LLC. All rights reserved. 35 Global Human Capital Trends 2016
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.
Copyright © 2016Deloitte Development LLC. All rights reserved. 36 Global Human Capital Trends 2016
Culture and Engagement:
“Always-On” Feedback
4
Copyright © 2016Deloitte Development LLC. All rights reserved. 37 Global Human Capital Trends 2016
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
Copyright © 2016Deloitte Development LLC. All rights reserved. 38 Global Human Capital Trends 2016
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
Copyright © 2016Deloitte Development LLC. All rights reserved. 39 Global Human Capital Trends 2016
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
Copyright © 2016Deloitte Development LLC. All rights reserved. 40 Global Human Capital Trends 2016
New Generation of Learning
Employees in Charge
5
Copyright © 2016Deloitte Development LLC. All rights reserved. 41 Global Human Capital Trends 2016
“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
Copyright © 2016Deloitte Development LLC. All rights reserved. 42 Global Human Capital Trends 2016
• 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
Copyright © 2016Deloitte Development LLC. All rights reserved. 43 Global Human Capital Trends 2016
Consumerization of education has arrived
MOOCs Forever Changed Education
• 400+ universities. 2,400+ courses.
• 35+ million students.
Copyright © 2016Deloitte Development LLC. All rights reserved. 44 Global Human Capital Trends 2016
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”
Copyright © 2016Deloitte Development LLC. All rights reserved. 45 Global Human Capital Trends 2016
People Analytics
Takes Off
6
Copyright © 2016Deloitte Development LLC. All rights reserved. 46 Global Human Capital Trends 2016
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 +
Copyright © 2016Deloitte Development LLC. All rights reserved. 47 Global Human Capital Trends 2016
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
Copyright © 2016Deloitte Development LLC. All rights reserved. 48 Global Human Capital Trends 2016
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%
Copyright © 2016Deloitte Development LLC. All rights reserved. 49 Global Human Capital Trends 2016
New types of data, new ways of analyzing it
Markets Converge: Text Analysis | Sentiment Analysis | Organizational Network Analysis | Feedback Systems
Copyright © 2016Deloitte Development LLC. All rights reserved. 50 Global Human Capital Trends 2016
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
Copyright © 2016Deloitte Development LLC. All rights reserved. 51 Global Human Capital Trends 2016
Digital HR
The Design Revolution
7
Copyright © 2016Deloitte Development LLC. All rights reserved. 52 Global Human Capital Trends 2016
Design Thinking Comes to HR
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Rapid Adoption and Engagement with Technology
Success of Design Thinking in HR
Copyright © 2016Deloitte Development LLC. All rights reserved. 54 Global Human Capital Trends 2016
Bottom Line: The HR Software is Reinventing Itself
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