2016 Human Capital Trends The new organisation: Different by design

Transcription

1 2016 Human Capital Trends The new organisation: Different by design Irish Report

2 2016 Global Human Capital trends - The new organisation: Different by design This year s key trends This fourth annual survey of 7,000 HR and Business leaders globally ranks 10 key trends and companies readiness to respond to them. The report also includes both country and industry analysis. Four powerful forces are driving change for both HR functions and the organisations they serve, creating talent challenges as well as potential solutions radically different from those faced by previous generations of leaders. Organisation structure: The rise of teams Hierarchical organisation models aren t just being turned upside down they re being deconstructed from the inside out. Businesses are reinventing themselves to operate as networks of teams to keep pace with the challenges of a fluid, unpredictable world. Learning: Employees take charge Corporate learning departments are changing from education providers to content curators and experienced facilitators, developing innovative platforms, that turn employee learning and development into a self-driven pursuit. Leadership awakened: Generations, teams, science Leaders of all ages, genders, and cultures are now poised to take the reins at organisations around the world. How ready will these future business leaders be to take charge in an increasingly complex global marketplace? Design thinking: Crafting the employee experience Design thinking takes aim at the heart of unnecessary workplace complexity by putting the employee experience first helping to improve productivity by designing solutions that are at once compelling, enjoyable, and simple. Culture: Shape culture, drive strategy The impact of culture on business is hard to overstate: 82% of respondents to the 2016 Global Human Capital Trends survey believe that culture is a potential competitive advantage. Today, new tools can help leaders measure and manage culture towards alignment with business goals. HR: Growing momentum toward a new mandate Good news, this year s Global Human Capital Trends survey shows an improvement in the HR organisation s skills, business alignment, and ability to innovative. But as companies change the way they are organised, they must embrace the changing role of HR as well. Engagement: Always on Employee engagement and retention today means understanding an empowered workforce s desire for flexibility, creativity, and purpose. Under the evolving social contract between employer and employee, workers become volunteers to be reengaged and re-recruited each day. People analytics: Gaining speed The use of analytics in HR is growing, with organisations aggressively building people analytics teams, buying analytics offerings, and developing analytics solutions. HR now has the chance to demonstrate ROI on its analytics efforts, helping to make the case for further investment. 2

3 Digital HR: Revolution, not evolution A new world for HR technology and design teams is on the horizon. Mobile and other technologies could allow HR leaders to revolutionise the employee experience through new digital platforms, apps, and ways of delivering HR services. The gig economy: Distraction or disruption? How can a business manage talent effectively when many, or even most, of its people are not actually its employees? Networks of people who work without any formal employment agreement. As well as growing use of machines as talent are reshaping the talent management equation. 3

4 Forward Ireland: 2016 Human Capital Trends Welcome to our 2016 H.C. trends research. Over 7,000 business and HR leaders from 130 countries participated in our global survey this year, including 135 from Ireland. Our theme this year is, The new organisation: Different by design. This reflects 97% of surveyed participants citing organisation design as a critical priority for their organisation. Demographic upheavals have made the workforce more diverse, demanding a focus on inclusion and shared values to bring people together. Organisations are rapidly shifting from top-down hierarchies to networks of teams, empowered to work on specific business projects and challenges for all businesses regardless of Industry Sector. The expansion of Digital Technology, now everywhere, is disrupting business models and radically changing the workplace and the way work is done. Also, the rate of change has accelerated in business as a whole, requiring organisations to be more agile and to reposition themselves quickly to meet new challenges. Millennials now make up more than half the workforce, bringing with them a high expectation for rewarding, purposeful working experience, constant learning, development opportunities and dynamic career progression. The HR function stands at the centre of these changes. Its role is important in supporting business leadership in its own transition; to do so effectively, however, it too must itself be fully prepared to embrace change. This country report outlines the findings in the Irish market and is a companion to the Deloitte Global Human Capital Trends 2016 report. We hope you will find them insightful as your prepare for the challenges of We stand ready to assist you in helping to ensure your organisation is prepared to lead in the new world through driving business success and HR excellence. Best Regards, Cormac Hughes Partner, Deloitte 4

5 Introduction The theme of our report this year The new organisation: Different by design reflects our central finding that an overwhelming majority (97%) of leaders believe that redesigning the organisation itself is a critical priority. This realisation has emerged after consecutive years of struggling with culture, engagement, leadership and retention issues. To lead this shift toward the new organisation, CEOs and HR leaders are focused on understanding and creating a shared culture, designing a work environment that engages people, and constructing a new model of leadership and career development. Increasingly the C-suite are focusing on embracing digital technologies, using diversity and inclusion as a business strategy, and realising that, without a strong learning culture, they will struggle to meet strategic objectives. HR leaders must be ready to meet these challenges in order to deliver a HR strategy closely aligned to business imperatives. The mission of the HR leader is evolving from that of chief talent executive to chief employee experience officer. HR is being asked to simplify its processes, help employees manage the flood of information at work, and build a culture of collaboration, empowerment and innovation. This means that HR is redesigning almost everything it does - from recruiting to performance management to on-boarding to rewards systems. To do this in Ireland, our research suggests that HR must upgrade its skills in traditional areas such as leadership and learning, and in the emerging areas of design thinking and people analytics. Drivers for change This year s research is informed by the four macro themes driving change for both HR functions and executives, creating talent challenges and potential solutions radically different from those faced by previous generations of leaders. Demographic upheavals: Millennials make up more than half the workforce, and Boomers are working into their 70s and 80s. Rate of change has accelerated: Business must become more agile to keep up with the rapid pace of change. Digital technology is everywhere: Technology is disrupting business models and radically changing the workplace and how work is done. New social contract between companies and workers: Younger workers demand rapid career growth, compelling and flexible workplace, and a sense of purpose at work. 5

6 Top Trends In 2016, organisation design rocketed to the top of the agenda among senior executives and HR leaders worldwide, with 92% rating it a key priority. Perennial issues such as leadership, learning, and HR skills continue to rank high in importance, as they have in each of four years of this annual study. Yet this year, a key shift is under way, as corporate leaders turn a more focused eye toward adapting their organisations design to be successful in todays highly competitive market. Figure 1 below show Irish respondents ratings of the importance, and readiness to address the top ten trends....this year, a key shift is under way, as corporate leaders turn a more focused eye toward adapting their organisations design to be successful in todays highly competitive market. ORGANISATION STRUCTURE 97 LEADERSHIP AWAKENED 94 ENGAGEMENT 93 CULTURE 92 LEARNING 83. HR SKILLS 83 DIGITAL HR 81 PEOPLE ANALYTICS 81 THE GIG ECONOMY 78 DESIGN THINKING IMPORTANCE READINESS Figure. 1 Relative importance and readiness to address human capital trends 6

7 Gaps in Capabilities Top Trends Ireland s results this year indicate that we are dealing with the same top five talent challenges as our global counterparts, with only culture and engagement trading places in Ireland. Our survey asked business and HR leaders to assess the importance of specific people challenges facing their organisations, and to judge how prepared they were to address these challenges. Using these responses we calculated a capability gap for each challenge, to measure the difference between the importance of an issue and the organisation s readiness to address it. With capability gaps continuing to grow in 2016, HR must continue to reinvent themselves and the practices, and programmes in place in their organisations in order to close these gaps in capability. HR Leaders who move aggressively to address these challenges, in addition to dealing with the four drivers for change currently at play, will gain an advantage and find themselves on the winning side in the global competition for talent. Figure 2 below illustrates the capability gaps across all 10 HC trends, and suggests that Irish organisations are largely not ready to address the challenges they see as most important. This is consistent with the results globally (see Appendix for global results) IMPORTANCE READINESS CAPABILITY GAP PEOPLE ANALYTICS 2 DIGITAL HR 3 LEADERSHIP AWAKENED 4 LEARNING 5 ENGAGEMENT 6 ORGANISATION STRUCTURE 7 DESIGN THINKING 8 CULTURE 9 LEARNING 10 THE GIG ECONOMY Figure. 2 Capability gaps for top 10 Irish trends 7

8 People Analytics & Digital HR - Critical Capability Gaps People Analytics Business leaders know that they need data to understand what makes people join, perform well and stay with an organisation. They also require data to determine who is likely to be successful and who will make the best leader, delivering the highest quality customer service and innovation. People analytics can directly inform the answers to these pressing leadership agenda items and HR must develop the capabilities to deliver against these expectations. Last year we highlighted People Analytics as an upcoming trend to watch. This year the topic has emerged as the biggest challenge for Irish organisations in terms of current capability, with the largest gap of 61%. building the required capabilities to capitalise on this area, in order to deliver the opportunities for value driven insight to their businesses. What s next: We expect the trend towards analytics-driven HR to continue gathering strength over the coming year. Analytics will infiltrate deeper within HR, extending beyond talent acquisition to leadership development, performance management, learning and development, organisation redesign and CASE STUDY In Deloitte we have begun to use a data driven approach to our graduate recruitment process. By combining our employees education data (e.g. leaving cert points, college results, college courses and subjects taken) with their exam results we have built a predictive model that enables us to quantify the probability of a potential graduate passing their professional qualifications exams. Our findings have allowed us to target our graduate recruitment and selection process toward the candidates we now know will have the most likelihood of success. OF % COMPANIES Interestingly this area is still not seen as the most important trend, suggesting that the full value of what People Analytics can offer has yet to become evident to Irish HR organisations. People Analytics refers to the use of people related data to improve an organisations ability to make business decisions. HR can provide a valuable source of data to inform people analytics, with new streams coming from mobile/engagement/feedback apps, and network analysis. By analysing their data companies can produce unique insights to solve critical business issues such as improving sales productivity, improving the leadership pipeline, reducing fraud or accidents, improving retention and many others. Globally 44% of companies are now using workforce data to predict business performance, up from 29% last year. It is clear that people analytics has started to enter the mainstream of HR and Irish HR leaders will need to begin to invest now in ARE READY FOR PEOPLE ANALYTICS % FROM 2015 Challenge will be to transform insights into business value 8

9 operations. However, providing great data and insights is only part of the solution. The real value is in turning that insight into change that delivers business value, which requires HR to not only deliver robust analytics capabilities but also to act as change leaders. OUT OF Digital HR has also emerged as an area requiring increased attention, with a capability gap in Ireland of 57% compared to 41% globally. Digital HR brings together social, mobile, analytics, robotics, and cloud technologies, and represents a new platform for improving the employee and candidate experience. The move toward automation, robotics and cognitive technology in the workforce also poses significant challenges. 3 out of 4 executives in this year s survey believe automation will require new skills over the next several years. Encouragingly though, we have observed many global companies investing heavily in innovation to build apps and integrate their technologies. This will redefine the employee experience and make work easier, more productive, and more rewarding - while, we hope, improving work-life balance. BELIEVE AUTOMATION EXECS WILL REQUIRE NEW SKILLS GOING FORWARD of COMPANIES are for HR What s next: In Ireland, HR s digital transformation needs to begin with a change of mindset by prioritising connectivity, real-time operations, platforms, automation and mobile-first. For many organisations this is a revolutionary opportunity. The digital HR journey focusing on the employee and HR experience is one part of the larger digital HR challenge that will allow HR to play a role in developing the overall digital enterprise strategy, organisation, and culture. 9

10 Human Capital Challenges in Ireland Top 5 Irish Trends 1.Organisation structure: The rise of teams Organisation structure is now the most important issue faced by companies in Ireland, as rated by 97% of Irish respondents. As organisations strive to become more agile and customer-focused, they must move away from the traditional top-down hierarchical organisation and transition to a new model focused around a network of teams. Innovative companies are forming dynamic networks and highly empowered teams to work on specific business projects and challenges. These networks communicate and coordinate activities in unique and powerful ways. They are built on several fundamental practices: Organise these teams around mission, product, market, or integrated customer needs rather than business function. (For instance, a health care company might have an Orthopaedic and Rheumatology Institute to bring together orthopaedic surgeons, rheumatologists, and counsellors, rather than have them siloed in functional groups) 3 Empower teams to set their own goals and make their own decisions within the overarching strategy or business plan Replace silos with an information and operations centre to share information, activities and desired results within the team Teach and encourage people to work across teams using techniques like liaison officers, hackathons and open office spaces to promote collaboration Enable people to move from team to team as needed, whilst retaining a home in the organisation Shift senior leaders into roles focused on planning, strategy, vision, culture and cross-team communication This new structure has sweeping implications, requiring programmes like leadership development, performance management, career progression, and learning to support companies in adapting to this new structure. Challenges still remain: Only 19% of executives in Ireland believe their companies are very ready to effectively redesign their organisation, only 32% feel expert at building cross-functional teams; and only 8% understand the way their people work together in networks. CHECK-INS PULSE SURVEYS COACHING Shift from top-down hierarchy to a network of teams to deliver results faster RETHINK - PERFORMANCE MANAGEMENT A future-focused weekly conversion between team leader and team member A brief measure of the conditions that research has shown lead to high performance UNDERSTAND WORK TOGETHER Counsellors become coaches to help team members use their strengths to grow and plot a career path 10

11 Organisation structure is now the most important issue faced by companies in Ireland, as rated by 97% of Irish respondents. Next steps: In order for companies to create a lasting impact they need to deliver fundamental changes that are radically different from how they operate today. For instance, Irish companies should revisit their organisation s design by: Looking at ways to bring functional experts into mission-driven teams focused on customers, markets or products Consider eliminating organisation layers: question the role and the need for each level/tier in your organisation Leverage contingent workers as part of your talent strategy, examine ways to engage these workers remotely, and use talent programmes to include these workers in the culture of your organisation Rethink performance management: optimise performance management around team performance and team leadership rather than focusing solely on individual performance. Team leaders can transform performance Management by conducting weekly check-ins, regular team pulse surveys and coaching for team members Set up real-time information network: Create a successful network containing critical information on customers or products to give team members integrated data on performance in real-time HR needs to embrace the age of Internet of Things, a culture of connectivity and social networking (i.e. labour platforms) if they are to stay relevant in attracting and retaining these modern day hyper connected workers 2. Leadership awakened: Generations, teams, science For the fourth year running, leadership has been identified as a top priority for Irish organisations with 94% of Irish leaders rating it as important and over half (58%) reporting that they re not ready to meet their leadership needs. While identifying, developing and building a sustainable pipeline of leaders continues to be a top concern for organisations, global trends are impacting on the complexity of this challenge. With organisations becoming increasingly team-centric, the workforce more diverse, technology driving fast paced change, and business challenges becoming more global and intricate, traditional top-down leadership and training programmes are not delivering in this new world of work. Our research indicates that Irish organisations need to raise the bar and explore new approaches to leadership development. While investments are being made in the area, with an overall 10% increase in spend on leadership programmes since , investments are not consistent across organisations with more than 1 in 5 (21%) having no leadership programmes at all ². This, in combination with the challenge of measuring return on investment, suggests that HR has work to do in developing more rigorous, structured, scientific and data driven approaches to leadership development and succession planning. The focus should shift from leadership training to identifying potential leaders earlier in their career, accelerating their development, tapping into new leadership cohorts such as Millennials, and focusing on building leadership skills required for future success. Next steps: Revisit your leadership development strategy and challenge it. Is it delivering the impact, results, pipeline and calibre of leaders the business needs now and in the future? Build leadership programmes on a foundation of evidence, data and analytics and evaluate their impact Identify and build teams of leaders. Create a network of diverse and multigenerational leaders that can innovate and learn from each other Examine your leadership investment. Make sure you are investing smartly and taking a focused and targeted approach. Organisations that only invest in once off leadership training programmes are unlikely to address their leadership challenges in the long run 11

12 Top 5 Irish Trends 3. Engagement: Always on Employee engagement is a headline issue throughout Irish businesses. An overwhelming majority of executives in this year s survey (93%) ranked engagement as a top priority. No longer is engagement a once a year problem; it is a continuous and always on issue². The time has come for businesses to face the exploding world of employee engagement and feedback. Annual engagement surveys, are being replaced by employee listening tools such as pulse surveys, anonymous social tools, sentiment analysis tools and regular feedback check-ins by managers. All these new approaches and tools have given rise to the employee listening officer, an important new role in HR. In terms of readiness, companies are making small progress. Globally the percentage of executives who believe their organisations are very ready to deal with engagement issues jumped globally from 10% in 2015 to 19% in However, Ireland is lagging behind with no change and readiness remaining at 10% for Similarly, only 18% of Irish businesses consider their employee engagement programmes as fit for purpose (see below), while just 1 in 4 (24%) Irish executives believe their companies have a strong and locally respected brand in the marketplace. Clearly tapping into the power of employee engagement remains a challenge for organisation here. CASE STUDY Background: A large global company who recognised the need for a more data-driven approach to leadership and, specifically, succession. We used analytics tools to highlight data trends and relationships within their leadership metrics, focusing on key items such as performance, potential and mobility. Outcomes: The company, was able to plan a series of targeted talent and leadership initiatives to tackle issues such as bench strength and diversity, obtained a leadership profile of their senior cohort. This enabled them to shape the critical career experiences of emerging leaders to ensure they have the resilience and track record needed to be successful. Next steps: For companies to create an impact that matters, engagement must be created, measured and monitored at the organisation, team and individual levels Develop a sense of passion, purpose and meaning among your workers to build a bridge towards long term engagement Link compensation to engagement levels by tying team leaders compensation to their team members engagement to increase accountability and awareness of engagement in your company Providing programmes for young, mature and multigenerational workforce 53 EXCELLENT ADEQUATE WEAK 29 12

13 Top 5 Irish Trends 4. Shape culture: Drive strategy In last year s HC Global Trends Report, culture and engagement ranked as the most important issue overall. This year, we asked Irish executives about culture and engagement separately and both placed near the top of the importance list, with 92% citing culture as an important or very important issue. Both are critical human capital issues today, and each requires a CEO-level commitment and strong support from HR if they are to be understood, measured, and improved. Culture is a company s values (translated into behaviours), beliefs, ideas and ultimately shapes the way people make decisions and interact together in the organisation. Our data shows that HR and business leaders are taking steps to address this trend already, with 45% of Irish organisations currently attempting to change their culture in response to shifting talent markets and increased competition. When an organisation s culture is closely aligned with its values, it attracts those who feel comfortable in that culture, which in turn helps companies to motivate people, leading to a high level of engagement (see figure 4 below). In this year s survey, the percentage of executives who believe their companies are driving the right culture rose from 10% to 12% - a small sign of progress. Yet only fewer than 1 in 3 executives (28%) report they understand their organisation s culture, exposing a clear need for action to address this fundamental aspect of culture. Next steps: Gain an up to date and accurate view of your organisation s culture means in practice. Real time assessments of current culture can expose critical issues early and inform the development of a comprehensive culture change plan C-suite executives must take the lead in defining and living their company s values through their visible actions and communications Refine existing programmes or create new programmes to achieve your desired culture. Figure 4: Relationship between Culture & Engagement TRUSTED LEADERSHIP RISK & GOVERNANCE COURAGE INNOVATION REWARD SYSTEMS HANDS-ON MANAGEMENT MISSION & PURPOSE INCLUSION WORK ENVIRONMENT MEANINGFUL WORK CLEAR GOALS RECOGNITION COMPENSATION DEVELOPMENT & CAREER 13

14 Top 5 Irish Trends 5. Learning: Employees take charge This year, 83% of Irish executives rated learning as important or very important. This focus on learning seems appropriate, as learning opportunities are among the largest drivers of employee engagement and strong workplace culture they are part of the entire employee value proposition, not merely a way to build skills. Globally companies appear to be making strides in adopting new technologies and embracing new learning models, compared to last year. The percentage of companies that feel comfortable incorporating MOOCs (massive open online courses) into their learning platforms rose to 43% from 30% last year. These advances signal increasing recognition among executives and HR leaders that learning must adapt to a world where employees demand continuous learning opportunities through innovative platforms tailored to their individual schedules. A change in mind-set for HR departments will be required to shift from an internally focused learning environment to a learner focused one. HR departments will need to explore new technologies, design thinking and externally available content to redesign their learning programmes. Instead of building programmes and processes, leading HR organisations are studying people to help develop interventions, apps and tools that help make employees less stressed and more productive. SKILLS HR THINKING CULTURE DESIGN EMERGING IRISH TREND - DESIGN THINKING Although it did not feature in the top 5 trends in Ireland this year, we see design thinking emerging as a major new trend in HR. Design thinking is the focus on user-centric design, studying the behaviour and working scenarios of our employees, and then designing solutions that fit into their work-lives, versus designing processes or programs that have to be rolled out to the workforce. The first hint of this issue surfaced 2 years ago when we identified the overwhelmed employee. At the time, it was considered as a significant talent concern with employees struggling to deal with a flood of s and information, grappling with demanding work assignments and being on 24/7. Last year s report identified HR s attempts to simplify the work environment as a response to the overwhelmed employee situation. Now, innovative HR organisations are taking their efforts a step further by incorporating design thinking into their approach to managing, supporting, and training people. Instead of building programmes and processes, leading HR organisations are studying people to help develop interventions, apps and tools that help make employees less stressed and more productive. Done well, design thinking promotes a virtuous cycle, generating higher levels of employee satisfaction, greater engagement, and higher productivity for your company. 14

15 HR & Talent Performance & Investment Although ratings of HR capabilities have continued to improve year on year. Irish HR organisations still struggle to gain more than a C+ rating from their business leaders. When Irish business leaders were asked to rate their organisation s HR and talent programmes on a scale of excellent to underperforming, 43% of respondents believed that their programmes were good (see Figure 3), a strong recognition of the ongoing work completed by HR to meet the complex talent needs of their businesses. However, similar to last year, 29% rate them as adequate, and if we evaluate this using a traditional grade point scale, Irish business leaders rated their HR and talent programmes in the exact same position as last year, as a C grade. However, with an overall GPA score of 2.2 Irish HR organisations have fared better than their global counterparts who maintain a GPA of 1.6. UNDERPERFORMING GETTING BY ADEQUATE GOOD EXCELLENT Despite steady business growth, HR faces increasing challenges in generating the investment to build their capabilities in new and existing priority areas. Our data shows that 7% of organisations plan to decrease spending this year, and the amount planning to increase investment has dropped from 68% to only 51% in This fall in spending translates to the projected rate of investment falling from 2% last year to a rate of 1.5% in The ability of HR to communicate its return on investment will be the determining factor in success. Critical to this is the up skilling of HR in the area of data analytics or creating strategic partnerships with areas of the business already strong in this area. Future investments will need to be targeted to address capabilities across our top trends, to allow HR leaders to engage with and actively shape solutions to address the people and organisation specific challenges discussed at the top table. SIG. DECREASE DECREASE REMAIN THE SAME INCREASE SIG. INCREASE N/A Figure 5. How would you rate the capabilities of your organisation s HR & talent programmes? Figure 6. What are your plans to invest in HR Over the next months? Irish organisations engaged in a steady phase of growth 51% of Irish organisations surveyed are engaged in a business cycle of steady but slowing growth. 35% however are currently experiencing a rapid growth cycle or turnaround. The implications of these growth predictions are aligned with the trends that have emerged as important challenges this year, including the need to better redesign the organisation to function efficiently and in an agile way, the perennial challenge of ensuring a strong pipeline of leaders and ongoing challenges to engage a multi-generational workforce. Ireland s ongoing recovery is evident in the data with 53% of Irish organisations compared to only 43% of Global respondents expecting growth of 1-10% compared to last year. Figure 7. Compared to last year, what is your general outlook for business in 2016? 25 % 10 % 45 % STRONG GROWTH >10% MOD. GROWTH 1TO10% SIMILAR. GROWTH >10% SLOWER GROWTH -1-TO 10% GLOBAL IRELAND MUCH SLOWER <10% 15

16 Where do we go from here? 2016 will be a year of change and disruption for many organisations in Ireland, as they prepare to deal with today s accelerated pace of change. Below are some of the key first steps to help your company in reshaping and redesigning itself to gain an advantage over your competitors. Next steps Organisation Structure: The rise of teams Revisit your organisation s design: Look at ways to bring functional experts into missiondriven teams focused on customers, markets or products Rethink your rewards and goals: Optimise performance management around team performance and team leadership rather than focusing solely on individual performance Remove middle management layers: Create flatter structures and empower teams in the process Let teams set their own goals: Teams should be accountable for results but let them decide how to achieve and communicate goals within the team Leadership awakened: Generations, teams, science Take a fresh, hard look at leadership strategy: Challenge the current strategy and ask yourself is it delivering the impact, results, leadership pipeline and calibre of leaders your business needs now and for the future? Build leadership programmes on a foundation of evidence, data and analytics: Insights from data can help organisations identify the DNA of successful leaders and rigorous analysis should inform every step of the leadership development process Focus on future diverse leaders: Identify leaders early and prepare them for leadership roles Engagement: Always on Is your engagement always on? Requirement for companies to shift from a traditional once-ayear programme to an always on, continuous approach to monitoring engagement Redefine engagement: Create an environment where teams of employees have the freedom to innovative and prosper in doing what they love to do Focus on all three levels: Engagement must be created, measured, and monitored at the organisation, team and individual levels Culture: Shape culture, drive strategy Learning: Employees take charge Culture cannot be delegated It must be on the Board and C-Suite list of top priorities: C-suite executives must clearly understand their company s culture values and take the lead in their actions and behaviours to reinforce the desired culture Measure culture: HR should use empirical tools to understand employee attitudes and actions towards existing culture and refine programmes to achieve their model culture. Culture (like leadership) is critical to creating engagement in an organisation where people have choices and are not afraid to move frequently, an accurate and up to date view of culture is essential Realign and reengage: HR and learning leaders must align the learning function with business needs and goals. This approach can provide opportunities to reengage with employees Use technology to drive employee-centre learning: Mobile, social and web-based platforms that can deliver on-demand learning content are becoming must have capabilities 16

17 Next steps continued... HR: Growing momentum towards a new mandate Understand HR s changing mandate, mission, and role: Understand the differences in HR s mandate today from previous HR roles and act accordingly to reposition themselves Upgrade technology; More than 40% of all companies are embarking on a replacement of core HR technology with modern cloud systems. Leverage latest technology as a way to upgrade skills Rethink the HR structure: Are enough specialist and business partners embedded in the business? Is there a clear view on which skills the HR organisation will need in the future? Design Thinking: Crafting the employee experience Design thinking and HR: HR should move away from process design to human-centred design. This means studying what employees do, visiting their workplaces and observing their behaviour. Based on these insights solutions and programmes can be developed to boost engagement, improve productivity, and increase employee satisfaction while also providing training Prototype, pilot, test and learn: New programmes should be developed and then piloted with a small group. By understanding their likes and dislikes, HR can improve the end-to-end employee experience Look to the future People Analytics: Gaining speed Stay focused on business priorities: Start with problems the CEO or senior business leaders care about. Spend time where the company makes money, and people analytics project will pay for themselves Build a single people analytics team: For starters recruit the right talent and/or integrate disparate analytics efforts that is, employee engagement, recruitment analysis, learning analytics, compensation analytics and workforce planning. This is a key ingredient of successful analytics projects Invest in cleaning data: Do not let data management be your biggest barrier. The highest value in analytics comes after the company is running an integrated, valid and reliable database Endnotes: 1. Leadership Development Factbook 2014: Benchmarks and Trends in the U.S. Leadership Development (PPT) 2. Bersin 2016 Predictions 3. Gillian Tett, The Silo Effect: The Peril of Expertise and the Promise of Breaking Down Barriers (New York: Simon & Schuster, 2015) 17

18 Appendix Figure 8. Capability Gaps Ireland and Global PEOPLE ANALYTICS DIGITAL HR LEADERSHIP AWAKENED HR SKILLS ENGAGEMENT ORGANISATIONAL STRUCTURE DESIGN THINKING CULTURE LEARNING THE GIG ECONOMY PEOPLE ANALYTICS LEADERSHIP AWAKENED DIGITAL HR ENGAGEMENT DESIGN THINKING HR SKILLS LEARNING ORGANISATIONAL STRUCTURE CULTURE THE GIG ECONOMY IMPORTANT/VERY IMPORTANT READY/VERY READY GAP Irish Survey Respondent Demographics INDUSTRIES 6 ENERGY AND RESOURCES 9 TECHNOLOGY, MEDIA & TELECOMMUNICATIONS COMPANY SIZE PUBLIC SECTOR 12 OTHER 12 MANUFACTURING LIFE SCIENCES AND HEALTH CARE 16 CONSUMER BUSINESS BUSINESS FUNCTION PROFESSIONAL SERVICES FINANCIAL SERVICES ORGANISATION LEVEL 38 C-SUITE 50 MID LEVEL 13 INDIVIDUAL CONTRIBUTOR 100% 0% 18

19 2016 will be a year of change and disruption for many organisations in Ireland, as they prepare to deal with today s accelerated pace of change. 19

20 Contacts Cormac Hughes, Partner T: E: cohughes@deloitte.ie Valarie Daunt, Director Organisation Transformation & Talent T: E: vdaunt@deloitte.ie Diarmuid Marrinan, Director HR Transformation T: E: dmarrinan@deloitte.ie Andrew Kerr, Director Organisation Design T: E: ankerr@deloitte.ie Ian Curtin, Senior Manager Organisation Transformation & Talent T: E: icurtin@deloitte.ie Vicky Menzies, Senior Manager Organisation Transformation & Talent T: E: vmenzies@deloitte.ie Cormac Hennessy, Senior Manager Analytics T: E: cohennessy@deloitte.ie Dublin Deloitte Deloitte & Touche House Earlsfort Terrace Dublin 2 T: F: Cork Deloitte No.6 Lapp s Quay Cork T: F: Limerick Deloitte Deloitte & Touche House Charlotte Quay Limerick T: F: Galway Deloitte Galway Financial Services Centre Moneenageisha Road Galway T: F: Belfast Deloitte N.I. Limited 19 Bedford Street Belfast,BT2 7EJ Belfast, Northern Ireland T: +44 (0) F: +44 (0) deloitte.com/ie/ Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee ( DTTL ), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as Deloitte Global ) does not provide services to clients. Please see about for a more detailed description of DTTL and its member firms. At Deloitte, we make an impact that matters for our clients, our people, our profession, and in the wider society by delivering the solutions and insights they need to address their most complex business challenges. As one of the largest global professional services and consulting networks, with over 220,000 professionals in more than 150 countries, we bring world-class capabilities and high-quality services to our clients. In Ireland, Deloitte has over 2,000 people providing audit, tax, consulting, and corporate finance services to public and private clients spanning multiple industries. Our people have the leadership capabilities, experience, and insight to collaborate with clients so they can move forward with confidence. This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms, or their related entities (collectively, the Deloitte Network ) is, by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte Network shall be responsible for any loss whatsoever sustained by any person who relies on this communication Deloitte. All rights reserved