THE DISRUPTION OF HR

GLOBAL WORKFORCE TRENDS THAT ARE TRANSFORMING THE ROLE OF HR

Dr. Shirley Davis Sheppard, SPHR

Vice President, Global Diversity & Inclusion

A New Global Reality—VUCA

Flattened World Changing Global Demographics

A New Global Reality

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Workforce Trends That are Transforming HR

The Global Workforce is Changing

One-third

of India’s

population is

now under the

age of 15; 5%

are over 65

Worldwide, almost half

(49%) of college students are

women

10% of world’s population lives with a disability

Women make up

24% of Indian’s

workforce; 49%

of its population

China will be the

top economy in

2020 and India

is predicted to

claim that spot

by 2050

World Wealth Report 2012

31% of employers

worldwide find it

difficult to fill positions

because of talent

shortages in their

markets

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Multigenerational Workforce in India Findings from Research

• Two ways to conceptualize generations in India: one in term of “historical events” and the second in term of socio economic variables leading to differences in values, attitudes and behaviours .

• Identified liberalization and 1991 as a watershed historical event which impacted India, albeit differently across the states.

• Generational Diversity in India is complex since socio-economic variables like first generation entrant to the workforce, rural/urban schooling, earning member status in the family and parental occupation seem to impact in simultaneity. It broadly appears that there are three generations from a socio economic categorization perspective – the silver spoon generation, the rooted in the past generation and the “gemini twins” generations with conflicting values

• Regional diversity in work values significant given that different regions have witnessed the economic growth at different periods in the last two decades

Implications for Organizations

• Unlike multi-cultural societies, where there is a willingness to recognize

diversity, a composite culture like India with its embedded diversity,

requires organizations to surface the latent diversity through visible goals

and monitoring processes

• Inclusion conversations need to be facilitated by HR professionals and

broad based with themes such as rural/urban diversity and regional

diversity entering in to enabling conversations

• Interventions like coaching, mentoring, potential assessment and

development are unlikely to be effective unless the latent diversity is

recognized

• Organizations need to celebrate managers who foster and develop

diverse teams. Managers need to be educated on diversity and inclusion

Global

Talent

Shortages

Sources: Forbes Insights. “Global Diversity and Inclusion: Fostering Innovation Through a Diverse Workforce” July 2011; PWC 15th Annual Global CEO Survey 2012

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76% CEOs are

making changes to their strategy for managing

talent.

More than 80% expect to grow operations in Asia

and South America

59% say they see emerging markets as more important than

developed markets to their future.

53% of CEOs see lack of key skills

as a major challenge.

31%

of employers worldwide find it difficult to fill

positions

Global

Talent

Shortages

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Globally, just

35% of workers

are highly

engaged

Source: Towers Watson Global Workforce Study on Engagement, 2012

Highly Engaged

Unsupported

Detached

Disengaged

35%

22%

17%

26%

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Employee Engagement

Engagement Levels

Disengaged

Actively engaged Actively disengaged

54%

17% 29%

Source: Gallup Management Journal's semi-annual Employee Engagement Index

Priority Areas of Focus “Why it Matters”

Leadership

Is effective at growing the business

Shows sincere interest in employees’ well-being

Behaves consistently with the organization’s core values

Earns employees’ trust and confidence

Stress, balance and

workload

Manageable stress levels at work

A healthy balance between work and personal life

Enough employees in the group to do the job right

Flexible work arrangements

Goals and objectives

Employees understand:

The organization’s business goals

Steps they need to take to reach those goals

How their job contributes to achieving goals

Supervisors

Assign tasks suited to employees’ skills

Act in ways consistent with their words

Coach employees to improve performance

Treat employees with respect

Organization’s image

Highly regarded by the general public

Displays honesty and integrity in business activities

Top Five Drivers of Sustainable Engagement

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50% of CEOs in developed markets, and 55% in emerging markets, said they face the greatest challenges with regard to recruitment and retention with high-potential middle managers

Recruiting and Retaining High Potential Middle

Managers is the Biggest Concern for CEOs

Source: 2012 PWC Global CEO Survey

Top 10 Leadership Strategies for

Increasing Engagement and Retention

1. Don’t just fill jobs, build careers

2. Make retention strategies personal---not one

size fits all

3. Closely examine underperformance

4. Invest in line leadership development

5. Allow more flexibility

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Top 10 Leadership Strategies for

Increasing Engagement and Retention

6. Institute mentoring programs

7. Offer meaningful and challenging work

8. Provide frequent and balanced feedback/

coaching; respond to comments in a timely

manner

9. Update technology systems

10.Conduct “stay” interviews

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Workflex: A Business Imperative

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Workflex: A Business Imperative

Work-Life Fit is Complicated

Key Drivers

Time Famine

Increasing eldercare responsibilities

Dual-earner families

Diverse, multigenerational, global workforce

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HR’s Role in Social Media

Pop Quiz

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B. 47%

A. 28%

C. 72%

A recent study conducted by SHRM found that ____% of organizations do not have a clear strategy or goals for their social media activities

Recruiting and Selection

Socialization and Onboarding

Training and Development

Knowledge Sharing and Training

Branding and Marketing

Creativity and Problem Solving

Influencing Organizational Culture

Successful Ways Organizations Use

Social Media

The Role of HR is Changing

The role of the "old style of HR" can thus be

seen as on its way to becoming extinct. If HR

has to prevail, its role with external and

internal stakeholders of the business has to

find a way of adding value to them. HR needs

to force its way into the heart of strategic

planning, and organizations have to look into

HR as an investment.

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More CEOs are now integrating HR with business planning at the highest levels of the company: 79% say that the CHRO, or equivalent, is one of their direct reports

(PWC Global CEO Survey, 2012)

The Role of HR is Changing

Business Function

• Personnel

• Administration

• Payroll

• Benefits

Business Partner

• Recruiting

• Learning & Development

• Organization Design

• Total Compensation

• Communication

Strategic Partner

• Performance Management

• Succession Planning

• Talent Management

• Competency Management

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Growth of Strategic HR Models

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Growth of Strategic HR Models

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New Skills Required for HR

SHRM’s Competency Model

MODEL DEVELOPMENT

• Literature Review – 35 different competency models

• Development

– 111 Focus Groups 29 cities globally 1200 HR Professionals globally

• Survey of 640 CHROs

CONTENT VALIDATION • 2012 Competency Validation Survey

– 32,000 HR Professionals globally at – all career levels (entry, mid, senior, executive)

• 33 Nations represented in total

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9 Primary Competencies:

Elements for HR Success

1. Human Resource Technical Expertise and Practice

2. Relationship Management

3. Consultation

4. Organizational Leadership and Navigation

5. Communication

6. Global and Cultural Effectiveness

7. Ethical Practice

8. Critical Evaluation

9. Business Acumen

The entire competency model can be found online at: http://www.shrm.org/HRCompetencies/Pages/default.aspx

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Summary

• The global workforce is changing—becoming more diverse, global, hyper-connected, and virtual.

• In a VUCA world, business leaders recognize that its greatest asset and differentiator from its competition is its talent.

• HR professionals have a unique opportunity and mandate to evolve from a transactional to a transformational role and to enable its organizations to succeed.

• This will require a new set of skills and competencies for a 21st century workforce.

Thank you for your participation

I’m Available to you at: • shirley.davis@shrm.org

• Twitter: @DrShirleyDavis

• LinkedIn: Shirley Davis Sheppard

• To hear more on D & I, listen to Dr. Davis at

http://www.youtube.com/user/IndiaHRLIVE/live

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