The Future of Work What It Means for HR
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1 The Future of Work What It Means for HR April, 2017 Josh Bersin, Principal & Founder, Bersin by Deloitte
2 Yes, Digital Disruption is real 90% of organizations surveyed by MIT and Deloitte anticipate their industries will be totally disrupted by digital trends.
3 What appears to be happening Mobile, sensors, AI, cognitive computing, data Access to technology by consumers globally Technology infiltrates home and political life Technology change Rate of change Gap in business performance potential Business productivity Time
4 Productivity is suffering is technology helping? US productivity last ten years i-phone launched 100 million Twitter users 1 billion smartphones
5 What is really happening HR s opportunity: help close the gap among technology, individuals, businesses, and society and governments Technology Individuals Rate of change Businesses Public policy 1970s 1980s 1990s 2000s 2010s Today
6 Employees are Overwhelmed The average US worker now spends 25% of their day reading or answering s The average mobile phone user checks their device 150 times a day. More than 80% of all companies rate their business highly complex or complex for employees. 40% of the US population believes it is impossible to succeed at work and have a balanced family life. Fewer than 16% of companies have a program to simplify work or help employees deal with stress. The average US worker works 47 hours and 49% work 50 hours or more per week, with 20% at 60+ hours per week Sources: Deloitte Human Capital Trends 2014 and 2015
7 We Are Working More Hours: The Vacation Crisis Since 2000, American workers have lost an entire week of vacation, dropping average vacation days from 20.3 to 16.2 Americans left 658 million unused vacation days and lost 220 million of them in % of Americans want to be seen as a work martyr yet 86% say it s bad for their family life. 48% of Millennials want to be seen as a work martyr Millennials 50% more likely to forfeit vacation days
8 Engagement Remains a Challenge Average 3.2 What are these companies doing? Summer, 2016 Glassdoor Bersin by Deloitte Research
9 Research overview Deloitte s largest and most extensive human capital survey to date 10,000+ business and HR leaders 140 countries Unless otherwise noted, all data referenced in this is from 2017 Deloitte Global Human Capital Trends: Rewriting the rules for the digital age.
10 Ranking of 2017 trends by importance Organization of the future Careers and learning Talent acquisition Employee experience Performance management Leadership Digital HR People analytics Diversity and inclusion The augmented workforce Robotics, cognitive computing, and AI 60% 12% 88% 17% 83% 19% 81% 21% 79% 22% 78% 22% 78% 27% 73% 29% 71% 31% 69% 37% 63% 40% Percentage of total responses Not/somewhat important Important/very important Note: Ratings for The augmented workforce and Robotics, cognitive computing, and AI both relate to the broader trends on The future of work discussed in this report.
11 The organization of the future: Arriving now 88% Very important or important 11% believe they understand how to build the organization of the future 73% experimenting with collaboration tools, however only 8% using organizational network analysis (ONA) 94% say agility and collaboration are critical yet 6% are highly agile today
12 1. Organization design will be challenged everywhere A network of teams B A F A C B D Shared values and culture Transparent goals and projects Free flow of information and feedback C D E E G People rewarded for skills and abilities, not position How things were How things are How things work
13 Careers and learning: Real time, all the time 83% Very important or important 83% are moving to open career models The changing nature of the career Length of career Average tenure in a job Half-life of a learned skill 60 to 70 years 4.5 years 5 years Organizations need to deliver learning that is always on and always available over a range of mobile platforms Sources: The 100-Year Life: Living and Working in an Age of Longevity; A New Culture of Learning: Cultivating the Imagination for a World of Constant Change
14 Why skills matter so much Shift to a service and IP-based economy Source: U.S. Bureau of Labor Statistics
15 Career Models Are In Disruption 58% of companies are redesigning or planning to redesign their career model While 33% of companies promote vertical career moves, 67% now promote horizontal or project based career progression 83% of companies expect to have an open or highly flexible career model within the next 3-5 years 31% of companies expect careers to be 3-5 years long 60% expect them to be 10 years or less Learning and career management software is the #1 fastest growing segment in HR technology (CedarCrestone 2017)
16 Four Primary Approaches To Career Management 19% 32% 33% 16% Structured Flexible Open Transitory Focused on preparing & moving workers through well-defined career paths designed to follow the organizational structure. Focused on moving workers through welldefined levels of an organization, with flexibility in career paths and jobs to accommodate development & organizational needs Focused on facilitating the work by assembling the most appropriate talent. Movement based on worker interest and organization need. Often used in team environments. Focused on facilitating the work by finding and utilizing the best talent sources either external or internal
17 What This Means for Digital Learning E-Learning & Blended Talent Management Continuous Learning Digital Learning Intelligent Learning Formats Philosophy Users Systems Course Catalog Online University Instructional Design Kirkpatrick Self-Study Online Learning LMS as E-Learning Platform Learning Path Career Track Blended Learning Social Learning Career Focused Lots of Topics LMS as Talent Platform Video, Self-Authored Mobile, YouTube Taxonomies Learning On Demand Embedded Learning LMS as Experience Platform Micro + Macro-Learning Video everywhere Design Thinking Learning Experience What You Need Where You Need It LMS invisible Data Driven, Mobile Intelligent, Personalized
18 How Do We Redesign Learning For Work? Pace of Learning Micro Micro Micro Macro Credential Micro Micro Great Coach Normal Macro Bad New on the Job Seasoned Expert
19 Talent acquisition: Enter the cognitive recruiter 81% Very important or important Biggest disruptor in talent acquisition today is experimentation with tech solutions and services excellent at managing talentsharing resources 19% excellent at managing crowdsourcing 8% excellent at using games & simulations to attract and assess potential candidates 6%
20 From Application Tracking to Recruitment Success Reinvention of the Talent Acquisition Market Candidate Marketing Sourcing Video Interview Analytics Onboarding Manager Tools Integrated Sourcing? AI-Based Intelligent Recruitment Applicant Tracking
21 The employee experience: Culture, engagement, and beyond 79% Very important or important 22% are excellent at building a differentiated employee experience 14% believe their internal processes for collaboration and decision making are working well 23% believe their employees are fully aligned with the corporate purpose 10% are using design thinking as part of crafting the employee experience Deloitte and Facebook, Transitioning to the future of work and the workplace, November 2016
22 Bersin by Deloitte Engagement Model The Simply Irresistible Organization Meaningful Work Hands-On Management Positive Work Environment Growth Opportunity Trust in Leadership Autonomy Clear transparent goals Flexible, humane work environment Selection to Fit Coaching & feedback Recognition rich culture Facilitated talent mobility Career growth in many paths Mission and purpose Investment in people, trust Small Teams Leadership Development Open flexible workspace Self and formal development Transparency and communication Time for Slack Modern Performance Management Inclusive, diverse culture High impact learning culture Inspiration Collaboration and Connection
23 Enterprise Feedback Architecture Annual Survey Anonymous Feedback Tools Pulse Surveys Customer Satisfaction Integrated Reporting & Analytics Sentiment Analysis Network Analysis Social Media Monitoring Employment Brand Exit Interviews Performance Appraisals Performance Check-ins Job Boards & Ads
24 Performance management: Play a winning hand 78% Very important or important Capabilities to implement performance management have improved by 10% since 2015 The focus has shifted from talking about people to talking with people in open conversations Agile goal management, check-ins, and continuous feedback are becoming common; new models of evaluation and rewards are next
25 And Yes, The New Models For PM Do Work 27 companies that redesigned their process, found overwhelmingly positive outcomes: 100% said conversation quality improved 83% said conversation frequency increased 90% said employee engagement increased 91% say data for evaluation is better 96% say tools are easier and simpler 77% expect continuous feedback 45% are using check-ins to assess managers 50% say training process is easier and shorter 67% doing feedback quarterly 80% expect employees to drive check-ins
26 What s Really New? Almost Everything! Peer Feedback Feedback to Manager Engagement Survey Vendor C Vendor A Check-ins Vendor B Transparent Goals The New World of Performance Management Individual Assessment Vendor D Integrated into Workflow Vendor F Vendor G Team Assessment Mobile App Regular Evaluation Continuous Micro- Learning Vendor E Fundamental Changes Are Enormous Annual Process Continuous Manager-Centric Team-Centric Hierarchical Multi-Directional Competitive Developmental Subjective Data-Driven Secret Transparent Single Rating Richer Rating
27 From Wellness to WellBeing to Performance Employee Vitality Medical Benefits Health Monitoring Family Exercise Employee Assistance Sleep Self Discovery Career Stress Fitness Nutrition Challenges Recognition Purpose Drive Skills and Training Wellbeing Mindfulness Abundance Mentality Positive Thinking Culture Fit Work Environment Sustainable Performance Rewards Leadership Management Clear Goals Growth Opportunities Cost Reduction Labor Productivity Retention Productivity Collaboration Team Performance Business Performance Leadership
28 Historic Perspective on Performance and Management Management Thinking Evolves: We are Here The Industrial Corporation Hierarchical Leadership Collaborative Management Networks of Teams Growth & Citizenship Operational Efficiency Profit, Growth, Financial Engineering Customer Service, Employees as Leaders Mission, Purpose, Sustainability Citizenship, Growth and Learning Industrial Age People as Workers Management by Objective Servant Leadership Work Together Empower the Team Productivity, Wellness, Networked Business Andrew Carnegie Henry Ford Jack Welch Peter Drucker Howard Schulz Steve Jobs Netflix, Google, Facebook, Amazon Unilever, AirBnb, Patagonia, WholeFoods The Corporation is King The Executives are King The People are King(s) The Teams and Team Leaders are Kings People, Communities, Global Networks <1950s 1960s-80s 1990s Today 2020
29 Leadership disrupted: Pushing the boundaries 78% Very important or important feel they have strong digital 5% leaders in place The leadership gap has become larger; organizational capabilities to address leadership dropped by 2% 72% developing new leadership programs focused on digital management Digital leadership required shifts in how leaders must think, how leaders must act, and how leaders must react
30 The Digital Organization Continuously Innovating Real Time & On-Demand Ongoing Shifts in Decision Rights and Power Modulating Risk & Security Boundaries Like human DNA, Digital DNA carries the 23 underlying instructions, development, functioning, and replication for being digital. These are expressed as digital traits and characteristics. They are present in all areas of the organization: business models, operating models, customer interaction, organization structure, talent, technology, cyber-security, culture, etc. There are four levels of Digital Maturity: Exploring, Doing, Becoming, and Being. Deloitte Consulting LLP Fluidity Geography Agnostic Morphing Team Structures Intentionally Collaborative Dynamic Skill Requirements Changing Nature and Typology of Work Constant Disruption Increased Customer Involvement Democratizing Information Multi-Modal Operations Uneven Velocity between Digital & Legacy Productive Mobility (non-traditional workspace options) Changing Mix of Traditional & Non-traditional Stakeholders Flattening and Changing Hierarchy Agility Continuous Ecosystem Disruption Constantly Changing Decision Criteria Fail Early, Fail Fast, Learn Faster Iterative
31 Inclusion, bias, diversity go mainstream Inclusive Talent Practices Drive Financial Results Level 4 Inclusive Talent System Talent strategies integrated with inclusion, diversity, and culture 10% Level 3 Managed Talent Relationships Workforce planning, development planning, leadership development integrated into talent strategy 19% Level 2 Critical Talent Growth Critical talent segments, focus on hiring, training, performance 59% Bersin by Deloitte Level 1 Essential Talent Activities Standalone disconnected staffing, training, and performance practices 12% Source: Bersin by Deloitte, Deloitte Consulting LLP, The New Bersin by Deloitte Talent Management Maturity Model
32 Diversity and inclusion: The reality gap 69% Very important or important 78% believe diversity and inclusion is a competitive advantage 38% report the CEO is the primary sponsor of diversity and inclusion program Traits of an inclusive leader: commitment, courage, cognizance of bias, curiosity, cultural intelligence, collaboration
33 Relationship Analytics, Diversity, and Coaching Converge AI Based Diversity, Coaching, Recruitment Systems
34 Millennials Speak Up: Citizenship On The Rise Focus on Volunteerism and Social Action 64% expect economic and political conditions to get worse in the coming two years In mature markets, 64% of millennials believe they will be less well off financially than their parents (and 69% say they will be less happy) In emerging markets 71%expect to be better off than their parents and 62% happier. 77% of Millennials actively take part in volunteerism and charity work to help improve their community 88% of Millennials believe business can be a major force for positive social change
35 Digital HR: Platforms, people, and work 73% Very important or important HR is being asked to help lead the digital transformation in 3 areas: Digital workforce Digital workplace Digital HR 56% are redesigning their HR programs to leverage digital and mobile tools 33% are using some form of artificial intelligence (AI) technology to deliver HR solutions
36 Moving beyond the cloud Rip and Replace Pace is Slowing Core HR Technology spending is slowing (41% say it s flat) How Will You Upgrade Your HR Technology? Clients not fully satisfied: only 21% of customers say talent systems always meet their needs. Two biggest growth areas are Learning and Analytics (37% yty) Career, succession, onboarding, analytics hottest functional needs Ris k User satisfaction is 2/3 lower than vendor satisfaction 2015 Cedar Crestone survey and 2015 Bersin by Deloitte HR Systems Research Speed
37 Convergence of HR Systems Ahead Mobile Feedback Pulse Survey Surveys Engagement Tools Customer Feedback Engagement Analytics Fitness Monitoring Diet Wellness Travel Time Management Fitness Challenges Health Behavior Change Engagement Feedback Well Being & Work Management Goal Management Feedback Personality Assessment Check Ins Performance Performance Review Video Learning Video Sharing Training and Certification Learning Gamified Onboarding Career Planning Social Recognition Customer based Recognition Anniversaries Work Events Community Circles Affinity Groups Recognition Rewards
38 New Work Environments Explode
39 People analytics: Recalculating the route 71% Very important or important 15% have broadly deployed HR and talent scorecards for line managers New tools are emerging and analytics are shifting from push to pull 8% report they have usable data 9% have a good understanding of which talent dimensions drive performance
40 2017: Where People Analytics Is Going Interesting Experiments, Models, and Studies Practical, Useful Dashboard and Tools Projects Based on Problems and Strategies Embedded Applications That Drive and Inform Work
41 Progress Steady and Accelerating Percent Change in Companies Excellent or Good, % Change Plan Correlate Predict Performing multi-year workforce planning Correlating people data to business performance Using people data to predict business performance + 23% + 56% + 50% Deloitte Global Human Capital Trends, 2016 and 2015
42 Emergence of Relationship Analytics Organizational Network Analysis (ONA) Teams Organizations The Enterprise
43 Future of work: The augmented workforce 63% Very important or important 17% report being ready to manage a workforce with people, robots, and AI working side by side 41% have fully implemented or made significant progress in adopting cognitive and AI technologies 66% believe their use of off-balance sheet talent will grow significantly in the next 3 5 years, but 49% are not able to manage contingent labor well
44 HR s Role In The Future Of Work: Get Involved Now In 77% of companies automation results in better jobs and retraining of workers, only 20% see job reductions. 33% expect to retrain people to do more essentially human tasks around robotics and AI 50% of companies expect to retrain workers to side by side with robotics and AI Yet, in 65% of companies HR is not involved at all.
45 HR performance scorecard, The proportion of respondents rating their HR capabilities as Getting by and Adequate has marginally increased, and that rating their capabilities as Good has marginally decreased, since 2016
46 What Should HR Teams Do? Four Imperatives for Focus on the employee experience with focus on feedback and design thinking, not programs and processes 3 Become digital: systems, architecture, process, experiments, data recruiting, learning, and employee services 2 Rethink the organization and jobs model, leadership, careers, mobility, and performance management 4 Act as One: redefine your identity, develop HR teams, standardize, and empower local HR staff
47 Rewrite the rules About Deloitte Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms. Please see 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 2017 Deloitte Development LLC. All rights reserved
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