Future Proofing HR Survey Series Research Insights

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1 Future Proofing HR Survey Series Research Insights Greg Selke Business Transformation Executive SAP November 2017 San Francisco INTERNAL

2 Introduction and Session Goals 10 Topics x 5 Ideas = 50 Takeaways

3 The 10 Topics 1 Technology Upgrades 6 Digital Transformation 2 Health & Well Being 7 CHRO Metrics 3 Mentoring 8 The Heartbeat of Healthcare 4 Alumni Programs 9 Data Ethics and Analytics 5 Diversity & Inclusion 10 Continuous Performance Management 3

4 Survey Headlines

5 Technology Upgrades 1 Value 2 Process 3 Communications 4 Governance 5 Rigor 5

6 Health & Well Being 1 Traditional 2 Business 3 Drivers 4 Iterative 5 Influencers 6

7 Mentoring Programs 1 Rationale 2 Culture 3 Integration 4 Difficulty 5 Tools 7

8 Alumni Relations 1 Projects 2 Knowledge 3 Curators 4 Resource 5 Nudgers 8

9 Diversity & Inclusion 1 Compliance 2 Soft 3 Risk 4 External 5 Buoy 9

10 Digital Transformation 1 Readiness 2 Adaptability 3 Experience 4 Strategic 5 Efficiency 10

11 CHRO Metrics 1 Basic 2 Hierarchy 3 Scorecards 4 Hot 5 Upskill 11

12 Heartbeat of Healthcare 1 Talent 2 Not Cloudy 3 Easy 4 Accuracy 5 Overhaul 12

13 Data Ethics and Analytics 1 AI 2 Facebook 3 Hide n Seek 4 Myths 5 Predictive 13

14 Continuous Performance Management 1 Alignment 2 Conversations 3 Barriers 4 Overdue 5 Marketing 14

15 Q&A Discussion New Topics

16 Thank you. Contact information: Greg Selke Vice President, HR Thought Leadership Chicago, IL

17 Appendix: Research Details

18 Technology Upgrades Data Headlines Critical factors in making upgrades easier and more effective are: having a trusted advisor, defining upgrade steps, value, and risks and frequent communications Preferred communication methodology for upgrades is a mix of and live 1:1 conversations Governance is a key element for successful upgrades and accountability usually rests with higher levels of HR, not IT So What Recommendations Define and build a clear upgrade process in advance of the need to upgrade Agree on communications parameters with software partners, and implementation and third party vendors Project manage with rigor internal upgrade governance processes with focus on who makes decisions, decision making criteria and value and implications across multiple stakeholders 19

19 Health & Well Being Data Headlines Health & Well Being (HWB) is still viewed in very traditional ways including online benefits, gyms, heathy café menus, Habitat, etc. Innovative HWB elements on the horizon include wellness portals, new education and resources, revamped work spaces, and personal health monitoring HWB is strategically important to HR (83%) but not so much for business leaders; and HR typically is accountable for HWB versus business leaders HWB is an important ingredient in corporate communications (94%), but not a top priority (40%) Primary goals of doing more in the HWB arena are increased employee engagement and productivity, reduced healthcare costs and ability to attract and retain top talent So What Recommendations Get buy in from the business to move beyond traditional offerings and move forward Change is iterative and most likely not big and splashy and organizations who move early will recognize differentiation and advantages in the labor market Workforce demographics (millennials) and technology offerings (in the cloud) will push faster change 20

20 Mentoring Data Headlines Employee development and mentoring are important to engage and retain talent, drive succession management, and improve productivity Most organizational cultures do not enable or encourage mentoring programs Integrating mentoring with other HR processes is critical and does not happen as often as needed Mentoring most often fails because it is too manual to administer, difficult to scale, and hard to measure results and success Mentoring cloud tools can help with integration, simplification, flexibility, and participant collaboration So What Recommendations Create a culture that fosters an innovative environment of continuous learning, career development and mentoring Think holistically so that mentoring is not a stand alone program and tightly linked to business objectives and HR programs Leverage technology to quickly make mentoring more effective and impactful 21

21 Alumni Programs Data Headlines Alumni care about business opportunities, networking, and employment Alumni are most interested in continual education, relevant news, and being recruited; less interested in resume help, general news, job searches Alumni drive the following organization programs forward: diversity, sustainability, sales and marketing, employee referrals, and workforce reentry Alumni like to do project work (74%) Alumni prefer to be curators not creators of content So What Recommendations Alumni are the most qualified sales and talent pool available to your organization; use them! Give them what they miss most about your organization: domain knowledge and resources, perks and benefits, and volunteering and mentoring 22

22 Diversity & Inclusion Business Beyond Bias Data Headlines Diversity & Inclusion (D&I) is very important to most organizations and becoming more important D&I is more effective in compliance related HR areas such as recruiting and reporting D&I benefits are perceived more in softer areas such as culture and engagement and less on measurable talent and business metrics Barriers hindering D&I progress include lack of diverse talent, time and other priorities, and leadership support So What Recommendations Three key factors to foster forward movement on D&I are more leadership accountability, a targeted diverse workforce strategy and a digital approach to D&I Apply D&I to compensation and succession processes with more rigor Careful on risk and company image; read the press Seriously, link D&I to financials and customers Old traditions are not enough for sustained business success; look at the problem differently 23

23 Digital Workforce Transformation Data Headlines HR is ready for digital transformation, though not quite sure what it is Shared services delivery models are important Too many HR resources are doing too much transactional work versus strategic priorities, especially in talent management Digital transformation will most likely be adapted readily by millennials and GSA (office) workers, and less so by non-exempt, global, baby boomer, contingent, and union employees; with leaders and sales personnel in the middle The value of digital transformation is in operational efficiency and savings, and surprisingly employee engagement So What Recommendations Digital transformation is hot and HR has to stay engaged in this rapidly changing discussion Transformation is not just about automation and redeploying HR resources; it is much more Implementation and user adaption plans will vary greatly by employee groups; yet the receptivity for change is higher than ever (think how employees use technology outside of work for relevance) 24

24 CHRO Metrics That Matter Data Headlines Metrics are still perceived by most organizations as in basic reporting mode versus with analytics capability Metrics hierarchy remains customer first, then business, financials and lastly HR HR hot zones are engagement and turnover, recruiting and succession, and diversity Visibility into the workforce 24/7 globally has to get better HR is not ready to consult to the business on predictive analytics So What Recommendations Critical factors to upgrade metrics toward a predictive analytics maturity level include reducing manual spreadsheets, greater integration and accuracy of data, consistency in application, simplicity, and a shift from compliance to strategic focus Integrated scorecards replace balanced scorecards in that simple dashboards link customer, business, financial, and people metrics The war for talent is alive and well and metrics can help It s time to upskill HR on this topic 25

25 The Heartbeat of Healthcare HR Technology Data Headlines The biggest problem facing HR that impacts business results is finding and keeping great talent Only 8% of workforce analytics, recruiting and succession processes and solutions are in the cloud; technology is not keeping up Key value drivers for healthcare HR are delivery costs, decision making tools, and compliance and risk In healthcare, given the nature of the business, user friendly systems with real time data is critical So What Recommendations Healthcare has to begin to take technology more seriously and invest in new solutions now versus later to avoid serious consequences In a complex industry with constant evolution, the ability for HR to be agile and quick to move and act on change, will be even more critical in the future Just as other industries have experienced complete overhauls (think Airbnb, Uber, Open Table, online banking, Amazon), don t be surprised if healthcare is hit and the impact that might have on HR and employees 26

26 Data Ethics and Enterprise Analytics Data Headlines Artificial Intelligence (AI) used to automate HR and talent processes is just taking off Of several common business models, the one HR should most consider replicating into HR processes is the Revenue Maximization Model (i.e. the most productive employees receive the most company investment dollars) Only about half of organizations have a written policy regarding the ethical use of employee data A key analytic flying under the radar is around employees retiring on the job The biggest perceived workplace myth with little data to refute is that compensation is the key driver to recruiting, retention and engagement So What Recommendations Intelligent Services and AI is here and cannot be ignored Data ethics is already an ever evolving, fascinating, and risky topic that every organization has to be addressing so as to protect their business and protect their employees rights Predictive analytics help solve obvious and less visible HR and business issues; use them 27

27 Continuous Performance Management Data Headlines Performance management is still very important Performance management is not effective mostly around alignment and accuracy Organizations are intrigued by the whether to eliminate ratings discussion Barriers to major changes to current performance management processes are the link to compensation decisions, culture, and perceived legal risk Impending short term changes are cascading goals, going mobile, shift to year round feedback, determining how to engage a new workforce So What Recommendations Create a plan for performance management that improves impact to the business, better engages employees and managers, and is simple and fast Workforce demographics changes and technology options are pushing change It s about the process, not the ratings decision Incremental change and smart marketing are keys to successful evolution 28

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