The New World of Work: Leadership and HR Imperatives for 2015 and beyond

This presentation describes Deloitte's 2015 global human capital trends research and details the leadership, management, and HR imperatives for 2015.

Published in: Recruiting & HR, Business

The New World of Work: Leadership and HR Imperatives for 2015 and beyond from Josh Bersin

Transcript

1. Copyright © 2015 Deloitte Development LLC. All rights reserved.1 Global Human Capital Trends 2015 Copyright © 2015 Deloitte Development LLC. All rights reserved. 2015 Global Human Capital Trends Leading in the new world of work Josh Bersin Principal and Founder Bersin by Deloitte March 2015
2. Copyright © 2015 Deloitte Development LLC. All rights reserved.2 Global Human Capital Trends 2015 Copyright © 2015 Deloitte Development LLC. All rights reserved.2 Global Human Capital Trends 2015 Barriers between work and life dissolve Talent in high demand Millennials make up 50% of workforce Global transparency in job market
3. Copyright © 2015 Deloitte Development LLC. All rights reserved.3 Global Human Capital Trends 2015 3,300+ Business and HR leaders 106countries One of the largest-ever longitudinal global talent studies Unless otherwise cited, all data referenced in this presentation is from the Global Human Capital Trends 2015 survey. Global Human Capital Trends 2015
4. Copyright © 2015 Deloitte Development LLC. All rights reserved.4 Global Human Capital Trends 2015 Global Human Capital Trends 2015 LEADERSHIP Why a perennial issue? LEARNING AND DEVELOPMENT Into the spotlight CULTURE AND ENGAGEMENT The naked organization PERFORMANCE MANAGEMENT The secret ingredient WORKFORCE ON DEMAND Are you ready? SIMPLIFICATION OF WORK The coming revolution REINVENTING HR An extreme makeover HR AND PEOPLE ANALYTICS Stuck in neutral PEOPLE DATA EVERYWHERE Bringing the outside in MACHINES AS TALENT Collaboration, not competition
5. Copyright © 2015 Deloitte Development LLC. All rights reserved.5 Global Human Capital Trends 2015 Culture and engagement Leadership gaps Learning and development HR Skills and capability 87% 86% 86% 80% % VERY IMPORTANT 50% 51% 40% 39% 35% 34% 29% 26% 20% 14% Importance of Trends to Business Percent Rating Trend Important Workforce capability Performance management HR and people analytics Simplifying work Machines as talent People data everywhere 71% 57% 52% 80% 75% 75%
6. Copyright © 2015 Deloitte Development LLC. All rights reserved.6 Global Human Capital Trends 2015 CULTURE AND ENGAGEMENT The naked organization talent issue Create meaningful work, deep engagement, and job fit #1global say the problem is “very important”– double the 2014 percentage 50% 60% of HR and business leaders do not have an adequate program to measure and improve engagement. Only 12% have a program in place to define and improve culture. Only 7% rate themselves excellent and driving and improving retention
7. Copyright © 2015 Deloitte Development LLC. All rights reserved.7 Global Human Capital Trends 2015 7 Careers Have Changed and So Have People “Our candidates today are not looking for a career…” “They’re looking for an Experience.”
8. Copyright © 2015 Deloitte Development LLC. All rights reserved.8 Global Human Capital Trends 2015 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
9. Copyright © 2015 Deloitte Development LLC. All rights reserved.9 Global Human Capital Trends 2015 Companies with “soul” had a return from 1996 through 2006, 8x higher than S&P 400 firms 1026% Companies with “soul” experience: • Much higher engagement and retention • Better customer service • Long-term • profitability Source: Simply Irresistible: Engaging the 21st Century Workforce, Bersin by Deloitte, 2014 Importance of Mission and Purpose
12. Copyright © 2015 Deloitte Development LLC. All rights reserved.12 Global Human Capital Trends 2015 Importance of Culture 95% of candidates believe culture is more important than compensation <5% of candidates value compensation over culture
13. Copyright © 2015 Deloitte Development LLC. All rights reserved.13 Global Human Capital Trends 2015 Engagement Is A Global Challenge Glassdoor Ratings of Employer (Recommended to friends), 20,000+ respondents Average 3.1 What are these companies doing??
14. Copyright © 2015 Deloitte Development LLC. All rights reserved.14 Global Human Capital Trends 2015 The Simply Irresistible Organization® What we have learned: An Integrated Approach is Needed Meaningful Work Great Management Fantastic Environment Growth Opportunity Trust in Leadership Autonomy Agile Goal Setting (i.e. OKR) Flexible, humane work environment Facilitated talent mobility Mission and purpose Selection to Fit Coaching & feedback Recognition rich culture Career growth in many paths Investment in people, trust Small Teams Leadership Development Open flexible work spaces Self and formal development Transparency and communication Time for Slack Modernized Performance Mgt. Inclusive, diverse culture High impact learning culture Inspiration
15. Copyright © 2015 Deloitte Development LLC. All rights reserved.15 Global Human Capital Trends 2015 LEADERSHIP Why a perennial issue? see leadership shortfalls as a top-3 issue Need to focus on developing leaders at all levels Treat as short-term training instead of a strategic initiative 86% Leadership “capabilities” in 2015 are no higher than in 2014, despite the fact that this was the #1 issue in 2014. Leadership spending increased by 14% in 2014 with no real impact on results. Only 6% rate themselves excellent in developing Millennial leaders and 66% rate themselves “weak” Only 8% feel strong in developing global leaders and 57% feel weak
16. Copyright © 2015 Deloitte Development LLC. All rights reserved.16 Global Human Capital Trends 2015 Leadership creates shareholder value • Analysts place a 35% spread on stock price based on how they view leadership +15.7% Equity premium on organizations perceived to have effective leadership -19.8% Equity discount on organizations perceived to have ineffective leadership $2.4 billion Premium as 15.7% of Company M market capitalization $3.0 billion Discount as 19.8% of Company M arket capitalization consider their leadership development programs very effective, and… 4.3% 2% And yet, companies aren’t getting the investment right… Believe that their succession management is where it needs to be* Source = Talent Edge 2020
17. Copyright © 2015 Deloitte Development LLC. All rights reserved.17 Global Human Capital Trends 2015 Bersin Leadership Development Maturity Model Inconsistent Management Training Content Available • No Development Process • Benefit to Employees Level 1 Structured Leadership Training Core Competencies • Well-Defined Curriculum • Developing Individuals Level 2 Focused Leadership Development Culture-Setting • Future-Focused • Developing Organization Level 3 Strategic Leadership Development Championed by Executives • Talent Management Integration Level 4 BersinbyDeloitte 25% 38% 28% 10%
18. Copyright © 2015 Deloitte Development LLC. All rights reserved.18 Global Human Capital Trends 2015 10% 19% 26% 36% First-level Mid-level Senior-level Executives Source: Leadership Development Factbook Survey, Bersin by Deloitte, 2014, n=288 % of Positions with Successors Identified (Large organizations) Succession Management Very Weak: Does It Work?
19. Copyright © 2015 Deloitte Development LLC. All rights reserved.19 Global Human Capital Trends 2015 • The average tenure at work is <4 years, so “lifetime employment” strategies are out of date • 55 Million people (32%) in the US work part-time, contingent, or as contractors • 30% of Tech workers believe they could get a better job within 60 days if they looked (Dice) • 50% of Millennials will change jobs within two years • If you don’t have a facilitated talent mobility strategy good people will leave New Models for Talent: No Longer for Life
20. Copyright © 2015 Deloitte Development LLC. All rights reserved.20 Global Human Capital Trends 2015 The Talent Mobility Formula Bringing the Talent System Together DESIRED COMPETENCIES (KNOWLEDGE, BEHAVIOR, SKILLS) OPEN POSITIONS & OPPORTUNITIES INDIVIDUAL NEEDS/DESIRES INDIVIDUAL DEVELOPMENT PLAN (IDP) VISION STRATEGIC INITIATIVES DESIRED BUSINESS OUTCOMES VALUES MISSION ORGANIZATION NEEDS MOBILITY STRENGTHS DEVELOPMENT NEEDS CAREER ASPIRATIONS ANNUAL GOALS Succession Management Career Development Individual Development Plan (IDP) Strategic Competencies Workforce Planning Performance Management Development Planning
21. Copyright © 2015 Deloitte Development LLC. All rights reserved.21 Global Human Capital Trends 2015 Talent Mobility takes a Complete Commitment Only 11% of companies have a clear strategy for career development • Identify Career Goals • Maintain Profiles • Demonstrate Values • Socialize Interests • Create Internal Network • Share Expertise Employee • Define Job Profiles • Provide Coaching • Assess Potential • Identify Development Opportunities • Provide Candid Feedback • Share Talent Openly Manager • Provides Tools & Resources • Develop Career Models • Facilitate Process • Offer Career Coaching • Career Development Training • Integrate with Talent Mgmt HR • Infrastructure – Process, Technology, People • Create Culture of Mobility • Communicate Expectations • Create Transparent Marketplace Company
22. Copyright © 2015 Deloitte Development LLC. All rights reserved.22 Global Human Capital Trends 2015 What Millennials Want (and Need) • Companies are desperately looking for ways to build leaders from Millennials • Mentors and mentor programs are among the hottest programs to build new leadership • When asked “how would you like to learn to lead,” more than 60% of Millennials say “I’d like a mentor.” The Mentor Next Door
23. Copyright © 2015 Deloitte Development LLC. All rights reserved.23 Global Human Capital Trends 2015 LEARNING AND DEVELOPMENT Into the spotlight Need to reinvent the learning experience Skill shortage is holding back strategy execution see L&D as a top-3 issue; up from #8 last year 84% Learning moved from #8 to #3 in priority this year. The capability gap tripled from 2014 to 2015. Only 24% feel capable of using advanced media in learning (76% are weak) 30% now feel they have capability to use MOOCs, yet only 12% feel they have mastered L&D operations
24. Copyright © 2015 Deloitte Development LLC. All rights reserved.24 Global Human Capital Trends 2015 We are Here E-Learning & Blended Talent Management Experiential Learning Continuous Embedded 2001 2005 2015 Evolution of Corporate L&D From Content-Centric to Continuous and Experience-Centric 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 LearningEverywhere AllTheTime 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
25. Copyright © 2015 Deloitte Development LLC. All rights reserved.25 Global Human Capital Trends 2015 REINVENTING HR An extreme makeover Align HR capabilities with business goals HR is being redefined as an enabler and builder of talent see an urgent need to reskill the HR function 39% HR skills are the fourth highest priority in all areas with almost 40% rating the problem “urgent.” Only 11% have strong programs to develop HR professionals internally. Despite a 4% increase in HR spending, almost all talent capabilities this year have dropped
28. Copyright © 2015 Deloitte Development LLC. All rights reserved.28 Global Human Capital Trends 2015 PERFORMANCE MANAGEMENT The secret ingredient Emphasize coaching and feedback Less emphasis on evaluation; more on agile goal setting have changed performance management processes or plan to change it in the next 18 months 89% Today 10% of companies believe their performance management process is an effective use of time (up from 8% last year) 35% believe the process drives no value at all 45% believe it hurts engagement and only 10% believe it helps engagement.
29. Copyright © 2015 Deloitte Development LLC. All rights reserved.29 Global Human Capital Trends 2015 Burdensome, Fixed Flexible, Agile, Simple Ongoing, Continuous Assumption Based Annual, One-Time Data Driven Centralized, Deferred Local, Real-Time Appraisal Focused Development Focused Remediation Strengths Future Outlook Investments in development planning reduce voluntary and high performer turnover while increasing the average revenue by employee1 1 Bersin: High Impact Performance Management (2011) [n=200+] 2 Gallup Organization Research (1998 – present) The defining characteristic of high performing teams is that each member feels that their role repeatedly calls upon their strengths2 * Additional research can be found in the appendix Time for a Shift in PM Principles
30. Copyright © 2015 Deloitte Development LLC. All rights reserved.30 Global Human Capital Trends 2015 Clarifying the Purpose of PM 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.
31. Copyright © 2015 Deloitte Development LLC. All rights reserved.31 Global Human Capital Trends 2015 1. High Performers are Disappointed 2. Mid-level Performers can Lay Back 3. Low Performers can Hide 4. Managers rate Themselves 5. Compensation is a separate, distinct process from evaluation and rating The Myth of the Bell Curve
32. Copyright © 2015 Deloitte Development LLC. All rights reserved.32 Global Human Capital Trends 2015 WORKFORCE ON DEMAND Are you ready? Need to apply engagement strategies to all workers see an increase in contingent hiring in the next 3 to 5 years Organizations are tapping networks of specialists 51% 41% expect to increase or significantly increase the use of contingent labor in the coming year 51% expect this increase over the next 3-5 years.
33. Copyright © 2015 Deloitte Development LLC. All rights reserved.33 Global Human Capital Trends 2015 HR AND PEOPLE ANALYTICS Stuck in neutral Need a long-term commitment to analytics No year- over-year improvement in analytics capabilities rate analytics important; only 8% are “strong” 75% Year over year there has been almost no improvement in analytics maturity and capability around the world. 2/3 of companies have little or no capability to correlate HR data to business data Only 28% use HR data to predict workforce performance and only 4% feel expert today
34. Copyright © 2015 Deloitte Development LLC. All rights reserved.34 Global Human Capital Trends 2015 What is People Analytics Bring HR & Business Data Together Recruiting and Workforce Planning Comp and Benefits Performance Succession Engagement Learning & Leadership HRMS Employee Data Engagement & Assessment + Sales Revenue Productivity Customer Retention Product Mix Accidents Errors Fraud Quality Downtime Losses Groundbreaking New Insights & Tools for Managers to Make Better Decisions =Data management, analytics, IT, and business consulting expertise +
35. Copyright © 2015 Deloitte Development LLC. All rights reserved.35 Global Human Capital Trends 2015 What Our Research Discovered • Bersin by Deloitte Talent Analytics Maturity Model BersinbyDeloitte 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 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 56% 30% 10% 4%
36. Copyright © 2015 Deloitte Development LLC. All rights reserved.36 Global Human Capital Trends 2015 Value is High Today, 14% of HR ORGANIZATIONS believe they “regularly use data to make talent and HR strategy decisions”… …and these organizations, are… 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
37. Copyright © 2015 Deloitte Development LLC. All rights reserved.37 Global Human Capital Trends 2015 SIMPLIFICATION OF WORK The coming revolution Redesign work to focus on what matters Technology and globalization creating overwhelmed employees see need to simplify work; 25% say need is very important 75% Believe it or not, 63% of companies have some program in place to “simplify work” but only 12% feel it is driving significant value today. 74% say their work environment is “highly complex” or complex, and only 4% say it is “simple”
39. Copyright © 2015 Deloitte Development LLC. All rights reserved.39 Global Human Capital Trends 2015 “Softer” areas such as culture and engagement, leadership, and development have become urgent priorities Leadership and learning have dramatically increased in importance, but the capability gap is widening HR organizations and HR skills are not keeping up with business needs Talent and people analytics are a high priority and a tremendous opportunity, but progress is slow Simplification is an emerging theme; HR is part of the problem 6 KEY FINDINGS HR technology systems are a growing market, but their promise may be largely unfulfilled
40. Copyright © 2015 Deloitte Development LLC. All rights reserved.40 Global Human Capital Trends 2015 BE BOLD Copyright © 2015 Deloitte Development LLC. All rights reserved.40 Global Human Capital Trends 2015
41. Copyright © 2015 Deloitte Development LLC. All rights reserved.41 Global Human Capital Trends 2015 Copyright © 2015 Deloitte Development LLC. All rights reserved.41 Global Human Capital Trends 2015 www.deloitte.com/hctrends2015 Global Human Capital Trends 2015 Leading in the new world of work
42. Copyright © 2015 Deloitte Development LLC. All rights reserved.42 Global Human Capital Trends 2015 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. 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. Copyright © 2015 Deloitte Development LLC. All rights reserved. Member of Deloitte Touche Tohmatsu Limited

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Wednesday, May 13, 2015

The New World of Work: Leadership and HR Imperatives for 2015 and beyond

The New World of Work: Leadership and HR Imperatives for 2015 and beyond

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