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Hrexecutive.Com September 2019 SEPTEMBER 2019 • $ 8 . 9 5 Chief People Officer David Fairhurst is playing a key role as the storied brand adapts to a changing business. McDonald’s PAGE 14 New Golden Age What Drives The Case for a HR’s Elite: Tech Adoption? Specialty-Drug Strategy Class of 2018 Page 18 Page 25 Page 28 H9-19p01_FC.indd 1 8/8/2019 2:09:35 PM B:10.625” T:10.25” S:9.375” B:13.875” S:12.75” T:13.5” “I’m working for beauty that begins with nature.” — Valerie Vilbon, Boutique Manager L’Occitane en Provence The things we work for are what define us. At ADP we’re designing a better way to work, so you can achieve what you’re working for. HR, Talent, Time Management, Benefits & Payroll. Informed by data and designed for people. Learn more at design.adp.com ADP, the ADP logo, and Always Designing for People are trademarks of ADP, LLC. H9-19p02_ADP.indd 2 8/5/2019 2:42:51 PM HN16425_ADP168_M02.indd Created: 6-18-2019 5:32 PM 1_Final Path:Premedia:Prepress:_ADP:2019:16425_ADP168:Final:Prepress:HN16425_ADP168_M02.indd Modified:6-19-2019 10:19 AM Proof Job Description Mechanical Specifications Colors Font Families Contacts Initial Date Billing#: HN16425 Artist: Jorge.Soto Cyan Taub Sans (Light, Regular Italic, Regular, Medium; OpenType) Studio Manager H. WEINTRAB/M. 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Human Resourc e ® September 2019 Executıve COVER STORY Health & Benefits Executive Comp HR Leadership Prescription for The Upward Trend Learning by Example 30 McDonald’s New Golden Age Savings 25 Continues 28 BY JULIE COOK RAMIREZ BY ANDREW R. MCILVAINE BY JULIE COOK RAMIREZ BY JEN COLLETTA L&D leaders are playing increasingly Just four years ago, things were trending downward at fast- Specialty drugs account Philippe Krakowsky, executive pivotal roles in the success or failure food giant McDonald’s. Now, the company is enjoying rising for just 1% to 2% of vice president and chief of their organizations, prompting sales, profits and stock prices—and HR is chief among the prescriptions, but more strategy and talent officer, efforts to align L&D with the players credited with that turnaround. From culture change to than 40% of total U.S. drug chairman and chief executive organizational strategy. Several organizational restructuring, Chief People Officer David Fairhust spend—and that figure is officer of IPG Mediabrands companies weigh in on how they’re shares the company’s recent recipe for success. Page 14 projected to rise to 50% at the Interpublic Group of arming their L&D leaders for this by 2020, prompting many Companies Inc., topped the new business reality. HR Tech employers to go into panic list of the 50 highest-paid Driving HR-Tech Adoption 18 mode. Several organizations HR executives in 2018. As a Talent Management have employed specialty- group, the top earners brought BY TOM STARNER drug strategies to get a in 11.6% more than in 2017, Keeping Your Finger on the Employers are expected to keep ramping up their spend handle on costs, while still marking the second year in a Pulse of Engagement 36 on HR technology—but, once they buy (or build) it, how can helping their employees stay row that overall compensation BY LARRY STEVENS organizations ensure the workforce actually uses the new healthy. increased. As the employee experience takes technology? Several employers and experts share their takes center stage, many organizations on best practices for increasing HR-tech adoption. Also in this are moving to pulse surveys to section, HR Tech Influencers make the case for investment in this ensure they know what their space, while we also look back at a highlight of HR Tech China. workforce is looking for from the Columnist Josh Bersin explores some easy ways to kill trust with employer—leading to new survey technology misfires, and Jason Averbook looks at how HR can tools on the market. build the best possible employee experience. 18 28 36 30 Cover photo by George Papadakis Departments Columns HR Trends 8 HR Leadership 25 6 Roles to Put On Your Radar 5 By the Numbers 39 Talent Management HUMAN RESOURCE EXECUTIVE® Magazine (ISSN 1040-0443 USPS 002-565) is published monthly with combined issues Why Millennials Aren’t That Different 5 for January/February and July/August by LRP Magazine Group, an LRP Media Group Company, Suite 500, 747 Dresher Rd., Horsham, PA 19044, (215) 784-0910. Periodicals postage paid at Horsham, PA and additional mailing office. Single Inside HR Tech copy price: $8.95. Subscription rates: In U.S., $94.95 for one year; $138.95 for two years; $180.95 for three years. In Canada and Mexico, $106.95 for one year; $169.95 for two years; $222.95 for three years (U.S. currency). In all other How Tech Can Combat Talent Shortages 6 foreign countries, $138.95 for one year; $222.95 for two years; $307.95 for three years (U.S. currency; prices include air mail delivery). For subscription information, call 1-800-386-4176 or FAX to (215) 784-0317. POSTMASTER: Send address changes to: HUMAN RESOURCE EXECUTIVE, PO Box 2132, Skokie, IL 60076. Emerging Intelligence Why HR is Becoming a Science 6 September 2019 3 H9-19p03_TOC.indd 3 8/9/2019 10:47:44 AM Edıtorıal Welcome HRE’s New Editor A few personal details about me: that increasingly became vital in the this space. I’ll be taking you up on You can call me Elizabeth or Liz. I’m industry. those offers. Keep them coming, married and live in a quirky town Still, it’s only been in the past few especially if you don’t mind a few called Lake Worth Beach, Fla., with my months that I’ve spent much time inevitable dumb questions. And let me husband, a fellow journalist, and two thinking in-depth about that term: know who else I should meet, what teenagers. I joined the HRE team from human resources. That’s the new and events I should attend, whose podcasts the world of daily journalism in South interesting part of this job and of this I must listen to and what I’ve got to Florida—a hotbed of news even before publication: that intersection of people read. the election of our part-time neighbor and work, where we all spend so much It will take some time. Luckily, the President Trump. Most recently, I was of our time, our energy and, if we’re experienced staff here are expertly editor of the Palm Beach Daily News, lucky, our passion. leading the way through the transition. a community newspaper and website What that means is that I’ll be I also have two other HRE newbies t’s been several weeks since I serving the small, oceanfront town of editing and guiding coverage about with me on this learning curve: joined Human Resource Executive®, Palm Beach. those subjects that matter most to My boss, Tim Burke, senior vice and now that I’ve met most of my Before that, I spent many years you as HR executives leading your president/publisher of HR products, colleagues and can find the coffee as a reporter and an editor, including companies into the future. We’re and Kathryn Mayer, benefits editor and mostly work our website, it’s five years as a sports writer for the working for you, digging into such key and chair of the Health & Benefits time that I introduce myself to you, Palm Beach Post. As a newsroom topics as talent acquisition, technology, Leadership Conference, also have our HRE readers. manager for the past six years, I spent and health and benefits to provide joined the team in the past few months. I’m thrilled to say hello. And a small percentage of my time on HR information and insight—and that’s the I hope to meet many of you soon, II’m eager to hear from you about the concerns—primarily performance essence of journalism, no matter the either virtually or in person, maybe content we’re delivering and how we management, recruiting and retention, publication. during HR Tech this fall in Las Vegas. can change or improve it to better diversity and inclusion, and training If we’re doing our jobs well, we’ll Until then, please contact me with serve you. As you know, I will never be and development. In that time, I do more than tell your stories. We your suggestions for HR Executive—or able to replace editor emeritus Dave experienced the sometimes-painful will help you solve problems. We will anything else on the subject of the Shadovitz, but I’m honored to take the transitions from paper forms to online recognize your achievements. We will people, tools, themes, challenges and reins into the future. tools and HR-technology systems understand your challenges, maybe ever-changing technology of human before you do, and help you steer resources.
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