How the World has Changed -...
Transcript of How the World has Changed -...
Copyright © 2015 Deloitte Development LLC. All rights reserved. 1 Global Human Capital Trends 2015
HR Technology Disruptions in 2016
How the World has Changed
Josh Bersin
Principal, Bersin by Deloitte
November, 2015
Copyright © 2015 Deloitte Development LLC. All rights reserved.
Copyright © 2015 Deloitte Development LLC. All rights reserved. 2 Global Human Capital Trends 2015
The Changing Role of HR Technology
• The new world of work
• Disruptive role of technology
• Evolution of the core HR systems
• Reinvention of performance management
• Reinvention of corporate learning
• Feedback and engagement apps
• Analytics
• Design thinking in HR
Agenda
Copyright © 2015 Deloitte Development LLC. All rights reserved. 3 Global Human Capital Trends 2015
Top talent challenges
Global Human Capital Trends
Culture and engagement
Leadership gaps
Learning and development
HR Skills and capability
87%
86%
86%
80%
Workforce capability
Performance management
HR and people analytics
Simplifying work
Machines as talent
People data everywhere
71%
57%
52%
80%
75%
75%
% VERY
IMPORTANT
50%
51%
40%
39%
35%
34%
29%
26%
20%
14%
Copyright © 2015 Deloitte Development LLC. All rights reserved. 4 Global Human Capital Trends 2015
Glassdoor ratings of employer recommendations — 200,000+ respondents
Engagement appears to be a global challenge
Average
3.1
What are
these
companies
doing??
Copyright © 2015 Deloitte Development LLC. All rights reserved. 5 Global Human Capital Trends 2015 5
Careers Have Changed and So Have People
“Our candidates today
are not looking for a career…”
“They’re looking for an Experience.”
Copyright © 2015 Deloitte Development LLC. All rights reserved. 5 Global Human Capital Trends 2015
Copyright © 2015 Deloitte Development LLC. All rights reserved. 6 Global Human Capital Trends 2015
Surveyed Millennials also …
80% Want to give
performance appraisals
to the boss
60% think 7
months
of work means
they’re “loyal”
2/3 Want to be
“creative” at work
in their job
Their “team mates” are
the most important
people at work
Expect feedback
weekly and
progression
annually
Copyright © 2015 Deloitte Development LLC. All rights reserved. 7 Global Human Capital Trends 2015
Talent Mobility is Here to Stay
• People change jobs: average tenure at work is <4 years
• Part time and contingent: “Uberization of Work:
‒ 55 Million people (32%) in the US work part-time, contingent, or
as contractors
• Skilled workers in high demand:
‒ 30% of Tech workers believe they could get a better job within 60
days if they looked (Dice)
• Without a facilitated talent mobility strategy good people will likely
leave
• Alumni networks, external mentoring, job rotation inside and outside
the company are all important today
New models for talent: no longer for life
See: The Alliance: Managing Talent in the Networked Age , Reid Hoffman, July 2014
Copyright © 2015 Deloitte Development LLC. All rights reserved. 8 Global Human Capital Trends 2015
Exploding role of culture
“Culture” is the New Black
<5% of candidates value
compensation over
culture
95% of candidates
believe culture is more
important than
compensation
Copyright © 2015 Deloitte Development LLC. All rights reserved. 10 Global Human Capital Trends 2015
Employees are Overwhelmed
The average mobile phone
user checks their device
150 times a day.
40% of the US population
believes it is impossible to
succeed at work and have
a balanced family life.
The “average” US worker
works 47 hours and 49%
work 50 hours or more per
week, with 20% at 60+
hours per week
The “average” US worker
now spends 25% of their
day reading or answering
emails
More than 80% of all
companies rate their
business “highly complex”
or “complex” for
employees.
Fewer than 16% of
companies have a program
to “simplify work” or help
employees deal with
stress.
Copyright © 2015 Deloitte Development LLC. All rights reserved. 11 Global Human Capital Trends 2015
And Productivity is Slowing
US Productivity Last Ten Years
1 billion
Smartphones i-Phone
Launched
100 Million
Twitter users
Copyright © 2015 Deloitte Development LLC. All rights reserved. 12 Global Human Capital Trends 2015
Companies with “soul” had a
1026% return from 1996 through 2006,
8x higher than S&P 400 firms
Source: Simply Irresistible: Engaging the 21st Century Workforce, Bersin by Deloitte, 2014
Importance of Mission and Purpose
Copyright © 2015 Deloitte Development LLC. All rights reserved. 13 Global Human Capital Trends 2015
Increasing Role of Inclusion
Inclusion and Diversity Now Strategic to Success
Essential Talent Activities Almost No Strategy Used to Direct Talent Management Activities • Little Understanding or Interest in Systemic
Talent Relationships • Essential Talent Activities (e.g., Performance Management, Talent Acquisition) in Place
but Often Inconsistent or Lacking Intention • Talent Activities Often Siloed
Level 1
Critical Talent Growth Increasingly Clear Talent Strategy for Critical Talent Segments • Emerging Perspective on
Systemic Talent Relationships • Effective at Implementing Essential Talent Activities •
Learning & Leadership Activities More Targeted, Prominent & Integrated •
Other Talent Processes More Sophisticated & Integrated
Level 2
Managed Talent Relationships Clear Talent Strategy & Analysis-Based Understanding of the Workforce • Nascent Execution of
Systemic Talent Relationships • Targeted, Integrated & Effective Leader Growth Activities •
Strong Learning Culture • Moving Beyond Compliance-Based Diversity & Inclusion Activities
Level 3
Inclusive Talent System Clear, Targeted & Communicated Talent Strategy • Fully Developed &
Integrated Talent Activities Aligned to Desired Strategic Outcomes •
Relationships with Talent Are Systemic & Tailored • Progressive Diversity &
Inclusion Approach Reflected in Policies & Employee Experience
Level 4
Be
rs
in
b
y
De
lo
it
te
10%
19%
59%
12%
Source: Bersin by Deloitte, 2015 – High-Impact Talent Management.
Copyright © 2015 Deloitte Development LLC. All rights reserved. 14 Global Human Capital Trends 2015
The Changing Role of HR Technology
• The new world of work
• Disruptive role of technology
• Evolution of the core HR systems
• Reinvention of performance management
• Reinvention of corporate learning
• Feedback and engagement apps
• Analytics
• Design thinking in HR
Agenda
Copyright © 2015 Deloitte Development LLC. All rights reserved. 15 Global Human Capital Trends 2015
Copyright © 2015 Deloitte Development LLC. All rights reserved. 16 Global Human Capital Trends 2015
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
Copyright © 2015 Deloitte Development LLC. All rights reserved. 17 Global Human Capital Trends 2015
We Build Tools, then the Tools Change Us
What Could be Coming?
Smart Phone 2007 Wearables 2011 Smart Badge 2013 Virtual News 2015
Copyright © 2015 Deloitte Development LLC. All rights reserved. 18 Global Human Capital Trends 2015
The Reinvention of HR Technology
A Major Shift in HR Technology
Copyright © 2015 Deloitte Development LLC. All rights reserved. 19 Global Human Capital Trends 2015
The Changing Role of HR Technology
• The new world of work
• Disruptive role of technology
• Evolution of the core HR systems
• Reinvention of performance management
• Reinvention of corporate learning
• Feedback and engagement apps
• Analytics
• Design thinking in HR
Agenda
Copyright © 2015 Deloitte Development LLC. All rights reserved. 20 Global Human Capital Trends 2015
Benefits &
Compensation
Hiring
Recruiting E-Learning Performance Talent
Network Based
Applications
New Systems of
Engagement
15 Year Evolution of HR Systems M
AR
KE
T G
RO
WT
H -
A
DO
PT
IO
N
2 0 0 0 2 0 1 5 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 © 2015 Deloitte Development LLC. All rights reserved. 21 Global Human Capital Trends 2015
Two Major Marketplace Issues
Copyright © 2015 Deloitte Development LLC. All rights reserved. 22 Global Human Capital Trends 2015
Growth in HR Technology Markets
People Management Software is One of the Biggest ERP Segments
Market Category Market Size (2014) CAGR 5 Years
Core HRMS $6.2 Billion 7-9%
Recruiting $2.6 Billion 8-10%
Learning Management $2.4 Billion 10-12%
Performance / Compensation $1.4 Billion 8-10%
Workforce Management $1.5 Billion 4-6%
Engagement, Recognition, Sensing $1.0 Billion 10-15%
IDC Market Size 2014,
Bersin Estimates
Copyright © 2015 Deloitte Development LLC. All rights reserved. 23 Global Human Capital Trends 2015
Focus of Technology has Changed
Ris
k
Speed
How Will You Upgrade Your HR Technology?
2015 Cedar Crestone survey and 2015 Bersin by Deloitte HR Systems Research
Copyright © 2015 Deloitte Development LLC. All rights reserved. 24 Global Human Capital Trends 2015
ERP Collides with Talent Management
ERP Vendors Progress
• More than 1,000 core HR customers in the cloud.
• #1 total talent management provider by market share
• Leading in compensation, analytics, talent reviews
• More than 700 core HR customers on EC
• Leading market in learning, performance mgt
• Mobile and analytics leadership
• Deloitte AccessEdge can bridge gap to cloud
• Close to 1,000 customers on cloud HRIS
• Recruiting, analytics, now learning coming in 2016
• Leaders in user integration and user experience
• Focusing on financials
• Watson Analytics
• Kenexa Engagement tools
• Open HR
• Brassring Recruitment
Copyright © 2015 Deloitte Development LLC. All rights reserved. 25 Global Human Capital Trends 2015
Market Evolution becoming Disruptive Again
Other Major Vendors Making Progress
Copyright © 2015 Deloitte Development LLC. All rights reserved. 26 Global Human Capital Trends 2015
Implementing HR Systems is Not Easy
• Companies with strong culture of
change are 2X more likely to
succeed in the minds of business
leaders
• Companies with poor culture or
experience in change suffer 250%
higher costs of HR technology
implementations
Critical Importance of Change Management
2015 Cedar Crestone survey and 2015 Bersin by Deloitte Change Research
Bersin by Deloitte Change Model
Copyright © 2015 Deloitte Development LLC. All rights reserved. 27 Global Human Capital Trends 2015
The Changing Role of HR Technology
• The new world of work
• Disruptive role of technology
• Evolution of the core HR systems
• Reinvention of performance management
• Reinvention of corporate learning
• Feedback and engagement apps
• Analytics
• Design thinking in HR
Agenda
Copyright © 2015 Deloitte Development LLC. All rights reserved. 28 Global Human Capital Trends 2015
Performance Management
Only 12% of companies believe
their existing performance
management process is “worth
the time put into it.”
- Deloitte Human Capital Trends 2015
The Process is Broken
Copyright © 2015 Deloitte Development LLC. All rights reserved. 29 Global Human Capital Trends 2015
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 © 2015 Deloitte Development LLC. All rights reserved. 30 Global Human Capital Trends 2015
The Big Shift: From Annual to Continuous
The Big Shift is Happening
Source: Bersin by Deloitte research, 2014.
Top-Down Annual Performance Process
Top-Down Approach Cascading Goals
Annual Event Big Bureaucracy Involved
Lots of Forms and Automation Needed
Focused on Rating and Forced Ranking
Compensation Tied Directly to Rating
Continuous Management and Feedback
Team Centric Aligned but Local Goals
Ongoing Weekly/Monthly Check-ins
Simple Tools, Agile, Mobile, Easy to Use
Focused on Continuous Development, No Ranking
Compensation Based on Many Factors
HR-Driven and HR-Centric Process
Management-Driven Driver of Culture
Copyright © 2015 Deloitte Development LLC. All rights reserved. 31 Global Human Capital Trends 2015
Coaching for
development
Talent
decisions
Performance
improvement
Legal
documents
Employee
motivation Compensation
Performance
feedback
PERFORMANCE
MANAGEMENT Coaching for
development
Talent
decisions
Performance
improvement
Legal
documents
Employee
motivation Compensation
Performance
feedback
PERFORMANCE
MANAGEMENT
Kelly Services
Source: “Getting Away from the Score: Creating Better Ongoing
Performance Feedback,” Bersin & Associates, 2012.
Simplicity: Clarifying the purpose of PM
Copyright © 2015 Deloitte Development LLC. All rights reserved. 32 Global Human Capital Trends 2015
Goal Management
Organizations that
revise or review
goals quarterly or
more are
3.5 X more
likely
to score in the top
quartile of business
performance.
More Frequent Goal Reviews
Note: Based on our employee recognition survey, we created a business performance index (BPI1) that averages scores on employee engagement and three business-related outcomes (customer satisfaction, cost structure compared to competitors, and market leadership position). It then ranks organizations on the scale. Organizations that scored in the top 25 percent of the BPI are considered to have “strong” business outcomes.
16%
44%
21%
10%
9%
Source: “High-Impact Performance Management Using Goals to Focus the 21st-Century Workforce,” Stacia Sherman Garr / Bersin by Deloitte, December 2014.
Percent Improvement in Performance
Based on Frequency of Goal Review
Copyright © 2015 Deloitte Development LLC. All rights reserved. 33 Global Human Capital Trends 2015
Coaching is Key
Shift Focus Toward Coaching and Development
Competitive Assessment Coaching & Development
Copyright © 2015 Deloitte Development LLC. All rights reserved. 34 Global Human Capital Trends 2015
Coaching and Development Model
Data Proves Coaching Pays Off # Top 22 Best Practices Impact Area
1 Coaching: formal or well established coaching programs for employees. 48% Performance Management
2 Consolidating staffing requirements across the organization 42% Sourcing & Recruiting
3 Ability of current workforce planning process to identify current and future talent gaps 38% Workforce Planning
4 Competencies maintained through annual maintenance process 34% Competency Management
5 Staffing metrics: measuring time to hire, cost to hire, and quality of hire 33% Sourcing & Recruiting
6 Cascading goals: aligning goals to manager or corporate goals 33% Performance Management
7 Development planning: creating consistent development plans across the organization 33% Performance Management
8 Establishing goals: establishing clear and measurable goals for all employees in organization 32% Performance Management
9 Job functional competencies well established and used throughout the organization 32% Competency Management
10 Competencies used in recruiting process for assessment and interviewing 32% Competency Management
11 Managed recruiting process: carefully monitoring and tracking interview process 31% Sourcing & Recruiting
12 Assessing performance: delivering an annual performance appraisal and evaluation 30% Performance Management
13 Internal sourcing: internal job postings, career planning, and promotion to recruit from within 29% Sourcing & Recruiting
14 Leadership competencies well established and used across the organization 29% Competency Management
15 Performance based compensation: consistently linking compensation to performance ratings 27% Performance Management
16 Competencies used in performance management for assessment, review, and development 27% Performance Management
17 Developmental training: training tied to developmental goals of individuals & organization 27% Learning & Development
18 Competencies used in leadership development programs for training 24% Competency Management
19 Pre-hire assessment: assessing candidates against competencies for a position 23% Competency Management
20 Employer brand: using web, collateral, and marketing to position well for recruiting 22% Sourcing & Recruiting
21 University recruiting: working with educational institutions to obtain qualified candidates 22% Sourcing & Recruiting
22 Maturity level of leadership development: Strategic Leadership Development (level 4) 21% Leadership Development
Copyright © 2015 Deloitte Development LLC. All rights reserved. 35 Global Human Capital Trends 2015
Eliminate Ratings? Eliminate Forced Ranking?
• The Bell curve often alienates high performers
and lets mid-level performers hide
• It does not reflect the philosophy of “managing
to strengths” or the power of “hiring the best”
• It can get in the way of teamwork and
cooperation
• In most companies the rating process reduces
performance and alienates people from
managers
Rating and Ranking? The myth of the Bell curve
Copyright © 2015 Deloitte Development LLC. All rights reserved. 36 Global Human Capital Trends 2015
Expanded model of evaluation and comp
Juniper Model of Evaluation
Talent
Architecture
Copyright © 2015 Deloitte Development LLC. All rights reserved. 37 Global Human Capital Trends 2015
GE New Performance Feedback Tool
PD@GE
Copyright © 2015 Deloitte Development LLC. All rights reserved. 38 Global Human Capital Trends 2015
Deloitte Feedback Process Drives 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.
Copyright © 2015 Deloitte Development LLC. All rights reserved. 39 Global Human Capital Trends 2015
A New Model for Management
The rise of “Distributed Leadership”
Copyright © 2015 Deloitte Development LLC. All rights reserved. 39 Global Human Capital Trends 2015
Copyright © 2015 Deloitte Development LLC. All rights reserved. 40 Global Human Capital Trends 2015
The Changing Role of HR Technology
• The new world of work
• Disruptive role of technology
• Evolution of the core HR systems
• Reinvention of performance management
• Reinvention of corporate learning
• Feedback and engagement apps
• Analytics
• Design thinking in HR
Agenda
Copyright © 2015 Deloitte Development LLC. All rights reserved. 41 Global Human Capital Trends 2015
Content explosion
Blogs
Ratings
Mentoring
Wiki’s
Video
Podcasts
Discussion
Boards
Social Networking
Tagging
Micro-blogs
Virtual Worlds
Stretch
Assignments
Communities
of Practice
Collaboration
Search
Simulations
Surveys
Whitepapers
Case Studies
Articles
Visual Aids
Presentations
Books
Corp Websites
Manuals
Performance Support
Product
Demonstrations
Instructions
Observations
Journaling
Standard
Operating
Procedures Newsletters
Corporate
Communications
Marketing
Collateral
Business Process
Documentation
Programs
Role Playing
Classroom Conferences
eLearning
Coaching
Webinars
Lunch ‘n Learns
Chalk Talks Onboarding
Debates
Consulting
Lectures
Experiments
Labs Teaching
Courses
Workshops
Interviews
Feedback
Mistakes
Successes
Job Rotations
Peers
Project Post-Mortems Meetings
Role Models
Job Shadows
After Action
Reviews
Customer Data
Goals
Play Conversations
Dialogue Reports Memos
Appraisals
Business Performance Data
CRM Records
Proposals
Copyright © 2015 Deloitte Development LLC. All rights reserved. 42 Global Human Capital Trends 2015
Consumerization of Education has Arrived
MOOCs are Explosive
Copyright © 2015 Deloitte Development LLC. All rights reserved. 43 Global Human Capital Trends 2015
What do most people want? It’s not training
Our survey indicates training is now the least desirable way people want to learn
Rated 7th
(% rated “essential” or “important”)
Copyright © 2015 Deloitte Development LLC. All rights reserved. 44 Global Human Capital Trends 2015
From content-centric to continuous and experience-centric
Evolution of corporate L&D
We are here
E-learning
& blended
Talent
management
Experiential
learning
Continuous
embedded
2001 2005 2015 2010
E-learning
get materials online
Social, collaborative
corporate university
Blended
programs
Content management
taxonomy
Learning paths
role-based
Self-authored
extreme blended
Gaming, embedded,
On-demand
Rich catalog
university
2020
Learn
ing
every
wh
ere
all th
e tim
e
Intelligent
Learning
Instructional design
Kirkpatrick
Career
curricula
Content
community
70-20-10
Job relevant
classroom
LMS as
E-learning platform
LMS as talent
platform
LMS as data
(where is the LMS?)
LMS as experience
platform
Copyright © 2015 Deloitte Development LLC. All rights reserved. 45 Global Human Capital Trends 2015
Shift in Power Toward the Employee
Moving Toward Employee-Driven Continuous Learning
Training
solutions only
play here
Copyright © 2015 Deloitte Development LLC. All rights reserved. 46 Global Human Capital Trends 2015
What millennials likely want (and need)
• Many companies are desperately looking for
ways to build leaders from Millennials
• Mentors and mentor programs are often among
the hottest programs to build new leadership
• When asked “how would you like to learn to
lead,” more than 60% of Millennials surveyed
say “I’d like a mentor.”
• Salesforce found that 95% of leaders who have
mentors were promoted within 18 months
The mentor next door
Copyright: Office Space, Judge, Mike, US, 20th Century Fox
Copyright © 2015 Deloitte Development LLC. All rights reserved. 47 Global Human Capital Trends 2015
LMS Market is Reinvented
The 1990s-2000s LMS
Training Management
Course Administration
Enrollment and Scheduling
Resource Management
Extended enterprise
e-learning
e-commerce
Virtual classroom
Assessment tool
Security and roles
Reporting
Lea
rnin
g A
dm
inis
tra
tio
n
Social Features
Collaboration
“Discussion Group”
Portals
Lea
rnin
g
Ex
pe
rie
nc
e
The Modern LMS
“Old LMS” Feature Set
+ Deeper Analytics
Dynamic Profile
Expert Directory
Communities
Tagging
Content Management
Ratings
Multi-rater coaching
Feedback
Content Sharing
Content Management
Mobile
“New” virtual classroom
Social Network User Interface
Talent Management Features
Ad
min
istra
tion
& T
ale
nt
So
cia
l & C
olla
bo
ratio
n
Us
er
Ex
pe
rien
ce
Copyright © 2015 Deloitte Development LLC. All rights reserved. 48 Global Human Capital Trends 2015
Technology Changes Us
New Roles In L&D are Needed
Copyright © 2015 Deloitte Development LLC. All rights reserved. 49 Global Human Capital Trends 2015
The Changing Role of HR Technology
• The new world of work
• Disruptive role of technology
• Evolution of the core HR systems
• Reinvention of performance management
• Reinvention of corporate learning
• Feedback and engagement apps
• Analytics
• Design thinking in HR
Agenda
Copyright © 2015 Deloitte Development LLC. All rights reserved. 50 Global Human Capital Trends 2015
A Gift to
give
Feedback is a Gift
A Gift to receive
Copyright © 2015 Deloitte Development LLC. All rights reserved. 51 Global Human Capital Trends 2015
Workboard Research
What We’ve Learned about Feedback
http://www.ncbi.nlm.nih.gov/pubmed/19829208
Lack of feedback creates anxiety,
worry, and poor performance
Copyright © 2015 Deloitte Development LLC. All rights reserved. 52 Global Human Capital Trends 2015
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 © 2015 Deloitte Development LLC. All rights reserved. 53 Global Human Capital Trends 2015
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
Pulse Surveys
Culture
Copyright © 2015 Deloitte Development LLC. All rights reserved. 54 Global Human Capital Trends 2015
Bringing it together
Enterprise feedback concept
Copyright © 2015 Deloitte Development LLC. All rights reserved. 55 Global Human Capital Trends 2015
Change management through feedback
Apollo Group (University of Phoenix) Manages Change
• Major downsizing effort coming
• Sent out one question “What could we be doing better?” right after the announcement.
• Received more than 20,000 responses within first 24 hours
• 1000+ specific suggestions, rank prioritized by the organization, available within 36 hours
• CEO and HR leaders communicated results within 2 days of announcement
Copyright © 2015 Deloitte Development LLC. All rights reserved. 56 Global Human Capital Trends 2015
Modern Feedback Works
• VP of Culture also VP of Sales
• Fast-growing company, hard to keep a pulse
on culture
• Weekly pulse survey “How happy are you
this week” with comments
• “Cheers” to others in the company
• Anonymous feedback, but VP of Culture
responds directly to open line of
communications
• Direct linkage to sales results each week
HubSpot – Managing Culture at Scale
Copyright © 2015 Deloitte Development LLC. All rights reserved. 57 Global Human Capital Trends 2015
The Changing Role of HR Technology
• The new world of work
• Disruptive role of technology
• Evolution of the core HR systems
• Reinvention of performance management
• Reinvention of corporate learning
• Feedback and engagement apps
• Analytics
• Design thinking in HR
Agenda
Copyright © 2015 Deloitte Development LLC. All rights reserved. 58 Global Human Capital Trends 2015
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 © 2015 Deloitte Development LLC. All rights reserved. 59 Global Human Capital Trends 2015
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%
Copyright © 2015 Deloitte Development LLC. All rights reserved. 60 Global Human Capital Trends 2015
The Ugly Part
Visual
Dashboards Advanced
Analytics
Predictive
Models
Data
Integration
Data
Dictionary
Data
Quality
Time and
Seasonality
Big Data
Tools
Data Governance
Ownership
Reporting
Tools
Disparate
Systems
Visual
Skills
Stats and
Data Skills
The Ugly Side: Data Management
Copyright © 2015 Deloitte Development LLC. All rights reserved. 61 Global Human Capital Trends 2015
The Difficult Tipping Point
Level 2
Strategic Reporting
Level 3
Advanced Analytics
Level 4
Predictive Analytics
Level 1
Operational Reporting
Level of Effort
Level of Value
Choke point for many
organizations
Copyright © 2015 Deloitte Development LLC. All rights reserved. 62 Global Human Capital Trends 2015
Models can change thinking
Reporting “What’s happening?”
Analysis “What’s going on?”
Predictive “What is likely to happen?”
Prescriptive “What should we do?”
Product quality
Success behaviors
Retention risk
Sales productivity
Career development
Compliance risk
Future skills gaps
Toxic employees
Fraud
Leadership assignments
Career success
Leadership pipeline
Engagement
Comp strategy
Coaching
Customer Service
Grievances
Learner satisfaction
Headcount
Performance
Ratings
Absence
Turnover
Leadership gaps
Comp budget
Spans and layers
Training compliance
Training compliance
Skills levels
Skills levels
Spans and layers
Engagement
Diversity
Demographics
Development plans
Candidate pool
Prehire assmts
Source quality
Time to fill
Compliance risk
Retention
Leadership gaps
Exit interviews
Mobility
Career progression
Compa ratio
HR Op costs
Service delivery
L&D spending
Unplanned absence
Quality of hire
Leadership pipeline
Skills gaps
L&D waste
Retirement projections
Accident rates
Candidate pools
Cost to hire
Engagement
Advertising
#5. Modelling is valuable, but implementing the model is key
Copyright © 2015 Deloitte Development LLC. All rights reserved. 63 Global Human Capital Trends 2015
VP Human Capital Analytics
Director Org Diagnostics
& Design
Sr. Consultant ODD
Program Manager
Director Workforce Analytics & Research
Manager Workforce Planning
Sr. WFA Analyst
Manager Employee Research
Analyst Employee Research
Manager Learning Analytics
Consultant Learning
Measurement
Analyst Learning Analytics
Consultants
Business Operations
Retailer
Evolution of the People Analytics Function
VP Comp
and Benefits
CHRO
Copyright © 2015 Deloitte Development LLC. All rights reserved. 64 Global Human Capital Trends 2015
New types of data, new ways of analyzing it
Text Analysis | Sentiment Analysis | Organizational Network Analysis | Feedback Systems
Copyright © 2015 Deloitte Development LLC. All rights reserved. 65 Global Human Capital Trends 2015
Analytics Becoming Embedded
“Suggestions” not “Charts”
Retention
Career moves
Learning
Spending
Labor Force Optimization
Sales productivity
Copyright © 2015 Deloitte Development LLC. All rights reserved. 66 Global Human Capital Trends 2015
Today, the 14% of HR Organizations believe they “regularly use data to make talent and
HR strategy decisions” are:
Despite the challenge, the investment pays off…
2X as likely to believe
they are excellent
at selecting
the right
candidates
2X as likely to believe
they are delivering
a strong
leadership
pipeline
Generating
30% higher stock
returns than the
S&P 500 over the
last three years
3X as likely to believe
they are efficiently
operating HR
Bersin by Deloitte High-Impact Talent Analytics® 2014
Copyright © 2015 Deloitte Development LLC. All rights reserved. 67 Global Human Capital Trends 2015
The Changing Role of HR Technology
• The new world of work
• Disruptive role of technology
• Evolution of the core HR systems
• Reinvention of performance management
• Reinvention of corporate learning
• Feedback and engagement apps
• Analytics
• Design thinking in HR
Agenda
Copyright © 2015 Deloitte Development LLC. All rights reserved. 68 Global Human Capital Trends 2015
Explosion in Mobile Access
1.5 Million Laptop/Desktop Users
1.6 Billion Smartphone Users
5.2 Billion Mobile Phone Users
Mobile now 25% of web traffic
60% of time on internet is
through Mobile devices
Copyright © 2015 Deloitte Development LLC. All rights reserved. 69 Global Human Capital Trends 2015
Design Thinking Comes to HR
Copyright © 2015 Deloitte Development LLC. All rights reserved. 70 Global Human Capital Trends 2015
Copyright © 2015 Deloitte Development LLC. All rights reserved. 71 Global Human Capital Trends 2015
Copyright © 2015 Deloitte Development LLC. All rights reserved. 72 Global Human Capital Trends 2015
CommonWealth Bank of Australia – Sidekick Project
Copyright © 2015 Deloitte Development LLC. All rights reserved. 73 Global Human Capital Trends 2015
Rapid Adoption and Engagement with Technology
Success of Design Thinking in HR
Copyright © 2015 Deloitte Development LLC. All rights reserved. 74 Global Human Capital Trends 2015
Simplicity Trumps Functionality
Value
Time
Highly Functional System,
Difficult to Learn
Simpler System,
Easy to Use
“Harmonization of HR processes before
implementation of systems was one of the biggest
drivers of successful implementations.” Source: Deploying HCM Technologies: Making Change Work,
Katherine Jones, Bersin by Deloitte, 2014.
Copyright © 2015 Deloitte Development LLC. All rights reserved. 75 Global Human Capital Trends 2015
Bottom Line: Technology Will Change Your Workforce – You Must Take Charge
Copyright © 2015 Deloitte Development LLC. All rights reserved. 76 Global Human Capital Trends 2015
BE BOLD
Copyright © 2015 Deloitte Development LLC. All rights reserved. 77 Global Human Capital Trends 2015
Enter: Digital HR
© Bersin by Deloitte
Mobile Apps as the Platform
for employee solutions
Design Thinking focuses on
“Making Work Better”
Recruiting, on boarding,
goals, feedback, all integrated
Cloud-based HR platforms
easy to use, scalable
App platforms extended and
expanded regularly
Video, social, employee
directory, analytics embedded
Copyright © 2015 Deloitte Development LLC. All rights reserved. 78 Global Human Capital Trends 2015
• About Deloitte As used in this document, “Deloitte” means Deloitte Consulting LLP, a subsidiary of Deloitte LLP. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.
• This publication contains general information only and Deloitte is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. Deloitte shall not be responsible for any loss sustained by any person who relies on this publication.
• Copyright © 2015 Deloitte Development LLC. All rights reserved. Member of Deloitte Touche Tohmatsu Limited