2015 Global Human Capital Trends Leading in the new world of work. January 2015
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1 2015 Global Human Capital Trends Leading in the new world of work January 2015
2 Agenda 2015: a year of record numbers 10 Global Human Capital trends Top 5 important issues for Oil & Gas #1 Leadership #2 Culture & engagement #3 Learning & development #4 Workforce capability #5 Reinventing HR Summary Questions 2
3 Record numbers! The 2015 Global HC Trends report is grounded in data 3,300+ clients from 100+ countries responded to the HC Trends Survey 50+ HR and business leaders provided case studies and recommendations 150 HC P/D/SMs from 30+ countries provided input on this year s trends 70+ Global HC Partners provided client stories 3
4 6 Key Findings Data and interviews delivered a number of key findings 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 organisations 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. HR technology systems are a growing market, but their promise may be largely unfulfilled. Simplification is an emerging theme; HR is part of the problem. 4
5 Leading in the new world of work The 10 trends for 2015 fall into four categories Leading Leadership: Why a perennial issue? Companies are struggling to develop leaders at all levels and are investing in new and accelerated leadership models Learning: Into the spotlight Companies are actively exploring new approaches to learning and development as they confront increasing skills gaps Engaging Culture & engagement: The naked Organisation Organisations are recognizing the need to focus on culture and dramatically improve employee engagement as they are facing a looming crisis in engagement and retention Workforce on-demand: Are you ready? Companies are taking a more sophisticated approach to managing all aspects of workforce including hourly, contingent, and contract workforce Performance management: The secret ingredient Organisations are replacing traditional performance management with innovative performance solutions Reinventing Reinventing HR: An extreme makeover HR is undergoing an extreme makeover to deliver greater business impact and drive HR and business innovation Analytics: Stuck in neutral Too few organisations are actively implementing talent analytics capabilities to address complex business and talent needs People data everywhere: Bring the outside in HR and talent organisations are expanding their HR data strategies by harnessing and integrating third party data about their people from social media platforms Reimagining Simplification of work: The coming revolution Organisations are simplifying work environments and practices in response to increasing organisation and system complexity, and information overload Machines as talent: Collaboration not competition The increasing power of computers and software to automate and replace knowledge workers is challenging organisations to rethink the design of work, the skills their employees need to succeed 5
6 Top 5 important issues for Oil & Gas Energy & Resources saw leadership as the priority issue, with culture & engagement a close second 1. Leadership 2. Culture & engagement 3. Learning & development 4. Workforce on-demand 5. Reinventing HR 6
7 #1 Leadership: Why a perennial issue? Companies are struggling to develop leaders at all levels and are investing in new and accelerated leadership models Why the issue: Leadership for the few, not the many Lack of consistent investment Weak leadership pipeline Where companies can start: Importance index: Readiness index: 41 Commit to leadership development from the top Know what you are developing leadership for Develop inclusive leadership at all levels Make talent development and succession a priority Develop or leverage a capability model Extend boundaries to create new leadership development opportunities 86% cite leadership as one of their most important challenges, yet only 10% believe they have excellent succession programs The capability gap for building great leaders has widened in every region of the world since last year 7
8 #2 Culture & Engagement: The Naked Organisation Organisations are recognising the need to focus on culture and dramatically improve employee engagement as they are facing a looming crisis in engagement and retention Why the issue: Glassdoor era: Employees are now like customers Leaders lack an understanding of & models for culture New world of work changes the way we engage people Employees motivations have changed Importance index: Readiness index: 46 Where companies can start: Engagement starts at the top Measure in real time Make work meaningful Listen to the Millennials Simplify the work environment The proportion of respondents citing culture and engagement as a very important issue has almost doubled this year, from 26% to almost 50% Highly engaged companies can hire more easily, deliver stronger customer service, have the lowest voluntary turnover rates and be more profitable in the long run 8
9 #3 Learning & development: Into the spotlight The percentage of companies rating learning and development as very important has tripled since last year. But even as the importance of the issue rose, the readiness to address it went down Importance index: Readiness index: 45 Why the issue: Competition for new technical and professional skills Where companies can start: Reimagine the learning experience Analyse where your current L&D money is going Centralise spending and strategy while carefully distributing learning capabilities Redefine learning as an agile and routine experience Reimagine measurement Significant digital transformation Elevate the job of Chief Learning Officer to attract experienced learning, technology and HR leaders New employee expectations for ondemand learning Importance of learning jumped 25% over the last year. Capability gap is 3x bigger than last year As corporate learning undergoes a digital transformation, this is the year to assess you current learning environment and implement a new vision to build a corporate 9 learning experience that touches every employee in a significant way
10 #4 Workforce on-demand: Are you ready? Companies are taking a more sophisticated approach to managing all aspects of workforce including hourly, contingent, and contract workforce Why the issue: Networked nature of work Multigenerational workforce Desire for more flexible working conditions HR fails to consider them in their talent strategy Importance index: Readiness index: 44 Where companies can start: Proactively plan for a hybrid workforce Educate business and HR leaders on the range of on- and off-balance-sheet approaches to talent Put in place integrated management and risk controls across the business, procurement and HR teams Extend your performance management and analytics efforts to on-demand talent Develop HR and IT systems to support on-demand talent 50% see an increase in contingent hiring over the next 3 to 5 years Assign ownership and governance of on-demand workforce management Highlights the need to develop better processes, policies and tools to source, evaluate and reward talent that exists outside of the traditional corporate and organisational balance sheet 10
11 #5 Reinventing HR: An extreme makeover Both HR and business leaders, on average, rated HR s performance as low; furthermore, business leaders rated HR performance 20% lower than HR leaders did, showing how important it is to accelerate HRs ability to deliver value as the economy improves Importance index: Readiness index: 41 Why the issue: Traditional HR practices are undergoing radical change Where companies can start: HR role has been redefined as an enabler and builder of talent Design the HR organisation to deliver solutions Create business-integrated networks of excellence Make HR a talent and leadership magnet Invest in HR development and skills as if the business depended on it CHROs must be innovative and business-savvy and be able to stand toe-to-toe with CEO Shift towards a team of highly skilled business consultants Requirement for professional development and research capabilities We saw a marked increase in non-hr professionals being brought in to fill the role of CHRO A new playbook for new times today s HR organisation must be agile, business-integrated, data-driven, and be able to provide strategic advice to business leaders on developing talent and leadership across the business. 11
12 So what does all of this mean for the Oil & Gas sector? 12
13 1. What are some of the challenges for Leadership development in O&G, and what actions should be taken to overcome these challenges? 2. How can we find out what Millennials are looking for and proactively drive organisation culture to suit the next decade? 3. How can learning look different from today to deliver more business aligned outcomes? 5. What role should HR be playing as many of the MCPs move in to operations? What should be the focus? 4. What changes are you starting to see in workforce make-up, and what are your organisations doing to be ready for this change?? 13
14 6. Which of the global human capital trends resonated most with you and why? 14
15 Where will you focus in 2015/16? 1. Leadership 2. Culture & engagement 3. Learning & development 4. Workforce on-demand 5. Reinventing HR 15
16 Questions For more information go to 16
17 General information only This presentation contains general inf ormation only, and none of Deloitte Touche Tohmatsu Limited, its member f irms, or their related entities (collectiv ely the Deloitte Network ) is, by means of this presentation, rendering prof essional adv ice or serv ices. Bef ore making any decision or taking any action that may af f ect your f inances or y our business, y ou should consult a qualif ied prof essional adv iser. No entity in the Deloitte Network shall be responsible f or any loss whatsoev er sustained by any person who relies on this presentation. About Deloitte Deloitte ref ers to one or more of Deloitte Touche Tohmatsu Limited, a UK priv ate company limited by guarantee, and its network of member f irms, each of which is a legally separate and independent entity. Please see f or a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member f irms. Deloitte prov ides audit, tax, consulting, and f inancial adv isory services to public and priv ate clients spanning multiple industries. With a globally connected network of member f irms in more than 150 countries, Deloitte brings world-class capabilities and high-quality serv ice to clients, deliv ering the insights they need to address their most complex business challenges. Deloitte has in the region of 200,000 prof essionals, all committed to becoming the standard of excellence. About Deloitte Australia In Australia, the member f irm is the Australian partnership of Deloitte Touche Tohmatsu. As one of Australia s leading prof essional serv ices f irms. Deloitte Touche Tohmatsu and its af f iliates prov ide audit, tax, consulting, and f inancial adv isory serv ices through approximately 6,000 people across the country. Focused on the creation of value and growth, and known as an employ er of choice f or innov ativ e human resources programs, we are dedicated to helping our clients and our people excel. For more inf ormation, please v isit our web site at Liability limited by a scheme approv ed under Prof essional Standards Legislation. Member of Deloitte Touche Tohmatsu Limited 2015 Deloitte Touche Tohmatsu
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