The Rise of HR WISDOM FROM 73 THOUGHT LEADERS EDITORS Dave Ulrich, William A. Schiemann, gphr and Libby Sartain, sphr FOREWORD Amy Schabacker Dufrane, sphr PREFACE Provider of the globally recognized PHR®, SPHR®, GPHR®, HRBP®, HRMP®, PHR-CA® Jorge Jauregui Morales, hrmp and SPHR-CA® certifications The Rise of HR WISDOM FROM 73 THOUGHT LEADERS EDITORS Dave Ulrich, Bill Schiemann, gphr and Libby Sartain, sphr FOREWORD Amy Schabacker Dufrane, sphr PREFACE Jorge Jauregui Morales, hrmp Copyright © 2015, HR Certification Institute 1725 Duke Street, Suite 700, Alexandria, VA 22314 ISBN 978-1-329-01831-0 All rights reserved. No part of this book covered by copyright herein may be reproduced or transmitted in any form or by any means – graphic, photocopy, recording, taping, or digital – without written permission of the publisher. www.hrci.org www.riseofhr.com Every contributor to this remarkable volume has graciously donated ideas and time to the over 1 million global HR professionals who want to make a difference. HR LEADERSHIP FOR THE FUTURE WORKPLACE Amy Schabacker Dufrane First, on behalf of our more than 140,000 certificants and the HR Certification Institute (HRCI) board and staff, I would like to thank Dr. Dave Ulrich, Dr. Bill Schiemann, GPHR, and Libby Sartain, SPHR, for contributing hundreds of hours of their personal time to ensuring that this book illuminates the value and impact that HR professionals bring to organizations every day. As the industry’s foremost voice for human resources certification, HRCI has brought together the world’s leading HR experts to share insights on our profession through this inaugural Institute-sponsored publication that is being distributed globally in an effort to advance the HR profession. Seventy-three human resources thought leaders from across the globe volunteered to contribute their expertise to this compilation of wisdom regarding the HR profession. Together, their contributions offer a comprehensive look into the critical issues transforming human resources—one of the fastest-growing professions in the workplace and one that is being influenced by many factors, including technological developments and globalization. PHR • SPHR • GPHR • HRBP • HRMP • PHR-CA • SPHR-CA I FOREWORD The human resources profession sits at the center of some of the most important decisions in any business and is rapidly expanding its influence in the workplace. In the United States alone, economists predict double-digit growth for human resources managers this decade, as business operations increase in volume, complexity, and variety. Organizations across the globe recognize the contributions of HR as a means to elevate acceptable business practices to exceptional business performance. HRCI is approaching 40 years of certifying human resources professionals. Turning 40 affords us the chance to reflect on the lessons of youth and apply them to the future. During the first four decades of our organizational journey, we have faced numerous opportunities and tests of character. From these experiences, we have gained valuable knowledge about how to create still more opportunities and how to rise to meet oncoming challenges. Most importantly, we at HRCI feel privileged to have served—and to continue to serve—the HR field by helping to spread, scale, and support best practices and professional standards. As HRCI looks ahead to the next 40 years and beyond, we recognize that HR professionals will play increasingly critical leadership roles within their organizations, further underscoring the need for strong leadership in our field. As the world’s leading provider of certification for human resources professionals, HRCI has a lengthy record of propelling the HR profession to new heights. The organization began certifying HR professionals in 1976 and has evolved into providing new opportunities for ongoing career enhancement for the human resources professional. Among other HR credentials conferred by HRCI, the PHR®, SPHR®, GPHR®, HRMP®, HRBP®, and CA® are the world’s most recognized HR certifications. To date, nearly 140,000 professionals in 100 countries have earned these credentials through HRCI. It is both an honor and a pleasure to present the impressive collection of insights, observations, and provocations about the future of human resources presented in this book. Without the leadership of Dave, Bill, and Libby, the astute contributions of Virginia Lyon, PHR, and the both highly committed and competent staff of the HR Certification Institute, this publication would not exist. Thank you! II HR CERTIFICATION INSTITUTE • RISEOFHR.COM PREFACE JORGE JAUREGUI MORALES President, World Federation of People Management Associations (WFPMA) These are exciting and frightening times for professionals in HR and in other human capital roles. We are all challenged globally to respond to the rapidly changing world around us. I am privileged to serve as president of the World Federation of People Management Associations, representing more than 90 national human resource associations and more than 600,000 people management professionals. In this role, I see many global trends that will reshape our professional and personal world. These trends are influencing, and will continue to influence, the role of HR and human capital practices in organizations, whether they are private sector, government, NGOs, or nonprofits. For example, leaders in almost every country are facing shifting demographic trends, including five generations simultaneously in the workforce for the first time, the ever-expanding roles of women and minorities in organizations, and an aging population in many industries and locales. These undeniable trends are occurring amid geopolitical shifts, unprecedented economic challenges in many regions, and unstoppable acceleration in technological innovation. And, no part of the world today can survive without increasing innovation, collaboration, and productivity. PHR • SPHR • GPHR • HRBP • HRMP • PHR-CA • SPHR-CA III PREFACE Change is everywhere and all the time. For HR professionals and leaders who manage or shape human capital, whatever game you are playing will be changed not once, but many times over the next decade. This is the crucial setting in which the HR Certification Institute (HRCI) saw the need to pull together HR thought leaders from around the world from associations, universities, consulting, government, and business to discuss these challenges. I participated in the first such event in Chicago last November where the goal was to model collaboration, innovation, and global insights on human resource issues. The result of that discussion was an invitation to more than 80 global leaders to contribute their thinking to a truly remarkable anthology. Dave Ulrich, Bill Schiemann, and Libby Sartain, who moderated the event, have pulled together 73 of these leaders to answer a simple question: What do HR professionals need to know or do to be effective in today’s and tomorrow’s business world? This book contains essays from these thought leaders that provide fascinating and unique insights into the role of HR in today’s changing business environment. The contributors to this book address questions that will shape tomorrow’s HR: What will customers and investors expect of our organizations, and how will HR leaders help grow value for these external stakeholders? What can HR do to deliver and optimize talent? How can HR professionals build organizations with capabilities in innovation, collaboration, culture, and execution? How can changing technology and advanced analytics be applied to human capital management? How will the HR function be governed in the future? What competencies will be critical to success as an HR professional tomorrow? These topics—and many more—provide rich reading and a head start for those who aspire to be tomorrow’s leaders and who desire to add value through HR. What’s exciting about the organization of the book is the ability for readers to move around to topics that may be of the most interest to them. Also, in asking for essays, Dave, Bill, and Libby limited lengthy dissertations and instead focused authors on key points—making this an enjoyable read. They also added a useful overall introduction, conclusion, and section introductions that help frame the book’s contents. What is equally impressive to me is that these thought leaders have collaborated in an unheard of way to share their global insights. No one has been paid, and IV HR CERTIFICATION INSTITUTE • RISEOFHR.COM JORGE JAUREGUI MORALES everyone who has contributed has done so because of their personal commitment to the profession. HRCI has graciously spearheaded this event and is willing to help distribute this work for free. With them, I envision up to 1 million HR professionals worldwide accessing this book. What a remarkable statement about how we can further this great profession. Regardless of your current role or life stage, this anthology will provide new insights, but it is up to you to translate those insights into practice in your organization. Also, as the world shrinks and our reachable networks increase, I hope that you will share these insights with your colleagues, enabling these ideas to reach the far corners of the globe. Let us join together in the rise of HR. J. Jauregui Morales, HRMP February 2015 PHR • SPHR • GPHR • HRBP • HRMP • PHR-CA • SPHR-CA V CONTENTS IntRODUCTIOn Advocates of the HR Profession ..................................................................................1 Dave Ulrich,