The Truth about Digital HR
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- Griselda Day
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1 The Truth about Digital HR Technology, Transformation & Realities David Wilson, CEO / June 18 1
2 Europe s #1 HR Analyst Founded 1996 In-depth corporate research on Next Gen HR, Talent and Learning Analyst & advisory services to European & International companies Independent vendor research and EMEA market commentary June 18 2
3 How do we help clients? Expert research, analyst input and independent advice - Strategies, transformation, key priorities, new solutions, benchmarking, vendor options - Qualitative & quantitative research Critical friend / virtual advisor Private advice for accelerated engagement and success June 18 3
4 What are the facts about Digital HR? June 18 4
5 TRUTH #1 The Workforce & Work is changing rapidly, so must HR June 18 5
6 MODERN WORKFORCE 50% 50% On their way. BABY BOOMERS GEN X GEN Y GEN Z Post wwll baby boom, born roughly Born early mid 1960s to early 1980s. Often called Millennials. Born 1980 to late 1990s. Born early 2000s and on. June 18 6
7 We know work is changing Learning, Talent & the Modern Workforce Fosway Group % 68% 55% 44% more often working in diverse teams more often working with virtual technology collaboration and social media tools are more often key to working employees work primarily using mobile devices June 18 7
8 Work is changing People are experiencing more Service AR + 50% 46% 31% 30% 30% Employees more often use self service to do their work & maintain their data Employees more often experience virtual & augmented technologies at work Automation & AI is more often replacing employee's work Employees are more often tracked using real time performance measures, polling & sensors Employees have more and more flexibility over where and when they work June 18 8
9 How are workers expectations changing? what do they expect of employers? 69% 64% 63% 62% 58% 56% Personal & Professional Development Career Progression utilise the latest technologies flexible working progressive & dynamic organisational culture Brand Reputation June 18 9
10 The top 6 reasons why people want to join your organisation 1. always learning new skills 2. are involved in varied projects 3. have high levels of autonomy 4. can change roles regularly 5. leadership culture is built around coaching & mentoring 6. work with a wide range of cultures June 18 10
11 HR s view of the most influential parts of organisations Employee Value Proposition (EVP) 57% 55% 47% 47% Our employer brand & reputation for being a great place to work Reputation of our services or products Our organisation s vision & purpose Our organisation s values 41% 40% Our approach to personal & professional development Our proactive approach to career progression June 18 11
12 In the war to attract & retain TOP talent, too few organisations are differentiating around Career and Talent Management, especially when the availability of skills is so scarce June 18 12
13 TRUTH #2 Digitising HR is about much more than a new system of record June 18 13
14 The Digital Transformation of HR is a REALITY 66% are in progress 21% are still planning! 5% think they have completed Where is your organisation in its journey with the digital transformation of HR? Planning 21% Not Applicable 8% Completed 5% In progress 66% This is marginally behind the wider Business Transformation Digital Learning Realities, Fosway Group 2018 June 18 14
15 Do you expect your organisation's investment in the HR function to increase, decrease or stay the same over the year ahead? HR technology & innovation Develop HR expertise Use of HR out-source partners Overall HR headcount Use of external consultants 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Increase Stay the Same Decrease June 18 15
16 HR HEADCOUNT IS THE BIGGEST FOCUS FOR REDUCING INVESTMENT IN HR % Expect to see a Reduction in Investment in HR Headcount 71% Expect investment in Headcount to Stay the Same or Reduce June 18 16
17 How satisfied do you believe your executives are with your HR systems? Payroll Core HR Employee engagement Learning & development Performance management Recruiting / talent acquisition Talent & succession management Reward - compensation & benefits Analytics Onboarding Workforce management 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Very satisfied Satisfied Dissatisfied Very dissatisfied June 18 17
18 THE TOP 5 DRIVERS FOR CHANGING HR SYSTEMS 1. Quality of End User Experience 2. Need for Enhanced Analytics 3. Lack of Business Agility and Flexibility 4. Current Solutions Functionality 5. Level of Innovation June 18 18
19 The European Landscape The consolidation of platforms is seen as a significant opportunity June 18 19
20 THE POWER OF ONE The lure of single suite HCM and the Cloud! But what are your: Real goals Key business priorities June 18 20
21 Alternative Strategies to Single Suite HCM Masking Unifying the HR Experience across Multiple Systems Mastering single HRIS System across Multiple HR Systems Centring on Talent - Talent Management as the HUB June 18 21
22 TRUTH #3 HR must innovate much faster, and truly impact the business 22 June /06/2
23 What innovations in HR Tech do you think will be most influential for your organisation over the next 5 years? June 18 23
24 19% Planning to Use 26% Actively Considering 16% Planning to Use 28% Actively Considering 25% Planning to Use 31% Actively Considering 7% Planning to Use 18% Actively Considering Top 4 rated HR Innovations How likely do you think your organisation is to adopt the following HR approaches in the future? 38% Already Using Video based Virtual Recruiting 31% Already Using Meet-Ups & Social Connection 26% Already Using Continuous Employee Appreciation 24% Already Using Employee Sabbaticals June 18 24
25 20% Planning to Use 30% Actively Considering 11% Planning to Use 30% Actively Considering 15% Planning to Use 28% Actively Considering 4% Planning to Use 10% Actively Considering Other Innovations to Watch How likely do you think your organisation is to adopt the following HR approaches in the future? 21% Already Using 31% Already Using 16% Already Using 1% Already Using Flexing Roles to Fit Talent Using freelancer marketplaces HR Hackathons Bitcoin & Blockchain June 18 25
26 How do you manage HR systems innovation in your organisation? 44.6% 41.4% 24.2% 26.9% 24.7% 15.6% 6.5% By having an innovation plan By proactively working with vendors on their systems roadmap By managing innovation through HR systems governance processes By working with NEW disruptive providers / solutions By waiting for innovation from existing providers There is no innovation management and planning Other (please specify) June 18 26
27 The most HYPED solutions are your biggest risk Manage innovation carefully! June 18 27
28 TRUTH #4 AI / Deep Learning will significantly impact all parts of Digital HR June 18 28
29 Who in HR is using AI? Less than 12% are currently using Artificial Intelligence in any part of HR today! June 18 29
30 How likely is your organisation is to HR AI technologies in the future? Predictive analytics Chatbots - i.e. replacing HR help-desk agents Artificial intelligence (AI) led candidate short-listing and selection AI led manager dashboards & semantic reporting Artificial intelligence in HR decision making Voice activated self service HR processes i.e. using solutions like Siri, Alexa etc Artificial intelligent (AI) led personal development coaching 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Already using Planning to use Actively considering using Not thinking about using Unlikely to ever use June 18 30
31 Where is HR looking to adopt AI? Planning to use & Actively Considering 69% 45% 43% 42% Predictive Analytics Chatbots HR Decision Making Recruitment Candidate Selection June 18 31
32 TRUTH #5 HR vendors have to enable real innovation in their customers, not just in their software June 18 32
33 Waiting for vendors to innovate can be risky. across all HR Tech less than 1 in 4 customers say their solutions providers innovate their systems ALWAYS or FREQUENTLY June 18 33
34 June 18 34
35 June 18 35
36 SUMMARY: 5 Truths About Digital HR The Workforce & Work is changing rapidly, so must HR Digitising HR is about much more than a new system of record HR must innovate much faster, and truly impact the business AI / Deep Learning will significantly impact all parts of Digital HR HR vendors have to enable real innovation in their customers, not just in their software June 18 36
37 LATEST FOSWAY RESEARCH Latest Research Fosway 9-Grid Reports - Cloud HCM - Talent Management - Learning Systems - Digital Learning - Authoring Systems June 18 37
38 Europe s #1 HR Analyst Contact us to start a discussion today +44(0) June 18 38
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