SHRM Poll Challenges Facing Organizations And Hr In The Next 10 Years

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September 16, 2010 SHRM Poll: Challenges Facing Organizations and HR in the Next 10 Years

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Employers agree that the most important challenge facing businesses today is hiring and retaining top talent.

Transcript of SHRM Poll Challenges Facing Organizations And Hr In The Next 10 Years

Page 1: SHRM Poll Challenges Facing Organizations And Hr In The Next 10 Years

September 16, 2010

SHRM Poll: Challenges Facing Organizations and HR in the Next 10 Years

Page 2: SHRM Poll Challenges Facing Organizations And Hr In The Next 10 Years

Challenges Facing Organizations and HR in the Next 10 Years | ©SHRM 2010 2

Key Findings

• Getting and Making the Most of Human Capital Is a Key Priority. The biggest investment challenges facing organizations over the next 10 years are 1) obtaining human capital and optimizing human capital investments (47%), 2) obtaining financial capital and optimizing financial capital investments (29%), and 3) obtaining intellectual capital and optimizing intellectual capital investments (12%).

• To Attract and Keep the Best Talent, Organizations Should Allow Flexible Work Arrangements. Providing flexibility for employees to balance their life and work responsibilities is the most effective way to attract, reward and retain top performers, according to 58% of HR managers.

• Cultivate a Culture of Trust, Open Communication and Fairness. Creating an organizational culture where trust, open communication and fairness are emphasized and demonstrated by leaders is a key human capital strategy.

• Keep a Clear Line of Sight Between Employees’ Work and Organizational Objectives. 40% of HR managers say that designing jobs to provide employees with meaningful work that has a clear purpose in meeting the organization’s objectives optimizes the organization’s ability to engage and keep top talent.

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Challenges Facing Organizations and HR in the Next 10 Years | ©SHRM 2010 3

Obtaining physical capital (e.g., factories, buildings, trucks, tools, machinery and equipment) and optimizing physical capital investments

Obtaining technology and optimizing technological capital investments

Obtaining intellectual capital and optimizing intellectual capital investments

Obtaining financial capital and optimizing financial capital investments

Obtaining human capital and optimizing human capital investments

0% 10% 20% 30% 40% 50%

2%

11%

12%

29%

47%

What do you think will be the biggest investment challenge facing organizations over the coming 10 years?

Note: n = 449. Percentages do not total 100% due to rounding.

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Challenges Facing Organizations and HR in the Next 10 Years | ©SHRM 2010

What do you think will be the biggest investment challenge facing organizations over the coming 10 years?

• Obtaining financial capital and optimizing financial capital investments (by operations): Organizations with U.S.-based operations (31%) were more likely than organizations with multinational operations (20%) to cite obtaining financial capital and optimizing financial capital investments as a major investment challenge facing organizations over the coming 10 years.

• Obtaining financial capital and optimizing financial capital investments (by union status): Organizations with unionized employees (40%) were more likely than non-unionized (26%) organizations to report obtaining financial capital and optimizing financial capital investments as the biggest investment challenge facing organizations over the coming 10 years.

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Comparison by Organization’s Operations Location and Union Status

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A 2010 survey of global C-suite executives, Company of the Future, commissioned by SHRM with the Economist Intelligence Unit, found that C-suite executives believe the two biggest challenges facing HR over the coming 10 years will be:

1. Retaining and rewarding the best people.2. Attracting the best people to the organization.

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According to HR professionals, the most effective tactics of meeting the identified challenges of retaining and rewarding the best people and attracting the best people to the organization are:

Other

Demonstrating the organization’s commitment to corporate social responsibility and sustainability

Providing employees with the latest tools to maximize work efficiency and effectiveness

Creating a highly inclusive culture that uses diverse perspectives to optimize organizational performance

Developing human capital managers at all levels of the organization

Providing employees better opportunities to use their skills and abilities

Creating an organizational culture where employees are encouraged to make decisions and take risks

Creating a stimulating and attractive organizational culture

Offering a higher total rewards package (i.e., total compensation and benefits package) than organizations that compete for the same talent

Demonstrating a commitment to employee development

Having jobs designed to provide employees with meaningful work that has a clear purpose in meeting the organizations’ objectives

Creating an organizational culture where trust, open communication and fairness are emphasized and demonstrated by leaders

Providing flexibility to balance life and work

0% 10% 20% 30% 40% 50% 60%

1%

4%

11%

11%

13%

14%

15%

21%

23%

29%

40%

47%

58%

Note: n = 449. Percentages do not total 100% as multiple response options were allowed. Respondents were asked to select up to three tactics.

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Challenges Facing Organizations and HR in the Next 10 Years | ©SHRM 2010

According to HR professionals, the most effective tactics of meeting the identified challenges of retaining and rewarding the best people and attracting the best people to the organization are:

• Creating an organizational culture where trust, open communication and fairness are emphasized and demonstrated by leaders (by sector): Nonprofit (63%) organizations were more likely than publicly owned for-profits (40%) and privately owned for-profits (43%) to report that creating an organizational culture where trust, open communication and fairness are emphasized and demonstrated by leaders is the tactic most effective in meeting the challenges facing HR over the next 10 years.

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Comparison by Organization’s Sector

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Challenges Facing Organizations and HR in the Next 10 Years | ©SHRM 2010

Demographics: Organization Industry

IndustryManufacturing—other 16%

Health care, social assistance (e.g., hospitals, clinics, doctor's offices, in-home care, nursing homes, EAP providers, hospice)

11%

Financial services (e.g., banking) 9%

Services—professional, scientific, technical, legal, engineering 8%

Retail/wholesale trade 6%

Consulting 6%

Educational services/education (e.g., universities, schools) 4%

Government/public administration—federal, state/local, tribal 4%

Insurance 4%

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Note: n = 431.

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Challenges Facing Organizations and HR in the Next 10 Years | ©SHRM 2010

Demographics: Organization Industry (continued)

IndustryOther services (e.g., other nonprofit, church/religious organizations) 4%

High-tech 3%

Transportation, warehousing (e.g., distribution) 3%

Manufacturing—auto/auto-related 2%

Telecommunications 2%

Construction, mining, oil and gas 2%

Publishing, broadcasting, other media 2%

Pharmaceutical 2%

Real estate, rental, leasing 1%

Services—accommodation, food and drinking places 1%

Utilities 1%

Arts, entertainment, recreation 1%

Biotech 1%

Association—professional/trade 1%

Other 6%

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Note: n = 431.

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Challenges Facing Organizations and HR in the Next 10 Years | ©SHRM 2010

Demographics: Organization Sector

Other

Government sector

Nonprofit organization

Publicly owned for-profit organization

Privately owned for-profit organization

0% 10% 20% 30% 40% 50% 60%

3%

6%

17%

26%

48%

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Note: n = 429

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Challenges Facing Organizations and HR in the Next 10 Years | ©SHRM 2010

Demographics: Organization Staff Size

50 to

99

empl

oyee

s

100

to 4

99 e

mpl

oyee

s

500

to 2

499

empl

oyee

s

2500

to 2

4999

em

ploy

ees

2500

0 or

mor

e em

ploy

ees

0%

10%

20%

30%

40%

50%

12%

30% 28%

21%

10%

11

Note: n = 273. Percentages do not total 100% due to rounding.

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Challenges Facing Organizations and HR in the Next 10 Years | ©SHRM 2010

Demographics: Other

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Note: n = 438

U.S.-based operations 72%

Multinational operations 28%

Single-unit company: Companies in which the location and the company are one and the same.

28%

Multi-unit company: Companies that have more than one location.

72%

Multi-unit headquarters determines HR policies and practices

44%

Each work location determines HR policies and practices

3%

A combination of both the work location and the multi-unit headquarters determine HR policies and practices

53%

Is the organization a single-unit company or a multi-unit company?

Are HR policies and practices determined by the multi-unit corporate headquarters, by each work location or both?

Does the organization have U.S.-based operations (business units) only or does it operate multinationally?

Note: n = 419

Note: n = 322

• 13% of organizations indicated that employees at their work location were unionized.

Note: n = 425

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Challenges Facing Organizations and HR in the Next 10 Years | ©SHRM 2010

SHRM Poll: Challenges Facing Organizations and HR in the Next 10 Years

• Response rate = 17%• Sample comprised of 449 randomly selected HR

professionals with the job title of manager and above. • Margin of error is +/- 5%• Survey fielded August 10 – August 23, 2010

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Methodology

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