The Future of Hr

HEALTH WEALTH CAREER THE FUTURE OF HR HR 2020: WHAT THE FUTURE HOLDS DRIVEN BY DATA EMPLOYEE VALUE PROPOSITION WHAT SETS YOUR COMPANY APART? TOTAL REWARDS 2020 TOP WATCH OUT ‘FOURS’ ON THE HORIZON DRIVING DIGITAL ENGAGEMENT CONTENTS 1 HR 2020: What the Future Holds HR 2020: WHAT THE FUTURE HOLDS 2 Driven by Data Four major factors are impacting, TECHNOLOGY and will continue to impact, 3 Technology enables organizations and shaping the employees at all levels Employee Value future of work. to work virtually while easily Proposition: What Sets collaborating and sharing ideas not Your Company Apart? GLOBALIZATION only with each other, but also with outsiders. Continued advancements It is clear that the world in globalization and technology 4 will become increasingly increasingly turn work into a connected over the next 10 Total Rewards 2020 24/7 reality which blurs the lines to 20 years as the flow of products, between work- and non-work lives services, talent, and knowledge and increases the pressures and continues apace across developed 5 stress on employees sometimes with and developing countries. To unfortunate consequences for their Top Watch Out “Fours” compete and survive, a growing physical and emotional well-being. on the Horizon number of companies will intensify their efforts to explore new market Implications for HR: In a world of opportunities and develop business increasingly advanced technologies, capabilities to take advantage of where the nature of work changes these markets, while continuing to with great frequency, traditional grow in more established venues. approaches to filling jobs internally will give way to more systematic Implications for HR: Companies will and decentralized approaches to increasingly depend on building matching talent to work and work organizational and employee agility to talent. As work is redefined and rather than relying on periodic talent flows increase, new, primarily change initiatives. They will find it online approaches to employee necessary to develop the capacity development will become necessary to attract, develop, and retain top- to ensure that requisite hard and notch talent in emerging markets. soft skills are kept current. From the Center for Advanced Human Resource Studies at Cornell University, February 2015. 2 HR 2020: WHAT THE FUTURE HOLDS CONSUMERIZATION number of one-size-fits-all policies members of a given generation are and practices in their arsenals in the same, employers will see key Greater access to favor of greater overall flexibility differences across generations information, combined and, in particular, the capacity to in terms of working styles and with the spread of social media, be more responsive to employees’ approaches to collaboration, encourages the development of individual needs and wants. Leaders communication, and decision- a consumer mentality in which and managers will find it necessary making, as well as expectations customers and clients feel to improve their understanding regarding feedback, rewards, and empowered to shape their own of employees as individuals by the pace of promotions. experiences while companies are developing deeper relationships forced to adapt by customizing their Implications for HR: Nearly all with them and engaging them in products, services, and solutions. traditional HR practices are coming genuine dialogue around work, goals, These experiences are increasingly under scrutiny as companies find and processes, as well as more being replicated inside organizations it particularly difficult to motivate personal matters. as employees — particularly young people and retain this talent younger employees — come to see long enough to recoup investments “consumerization” and customization GENERATIONAL in their development. In broad terms, many, if not most, gen Ys as guiding principles on which DIFFERENCES to base the employer–employee feel entitled to jobs, projects, and relationship. Most organizations experiences that are tailored in a currently have four generations way that they (as consumers) find Implications for HR: In this new in their workforce: traditionalists/ personally meaningful. As leaders model, employees expect a greater greatest generation, baby boomers, and managers feel the pressure say in shaping the content of their generation X, and generation Y/ to individualize everything and to assignments, goals, and even work millennials — with some companies coach and mentor (and even to be environments when it comes to starting to see a fifth (generation reverse mentored), organizations issues such as where and when Z — those born in 1997 and later). will find that some leaders will and to work. Companies will find it Although there are many similarities can adapt whereas others will not necessary to cut back on the across generations and not all and cannot. IMAGINE ... Instead of HR “You have to ...” HR delivers “I needed this” delivering “Do this now ...” experiences that “This is easier” messages that associates want “You must ... or ...” “This makes my begin with: to use life better” 3 EXTERNAL FACTORS INFLUENCING TOTAL REWARDS MULTIPLE GENERATIONS: MANAGING DIFFERENT SEGMENTS REQUIRES SENSITIVITY TO VARYING GENERATIONAL NEEDS PERCENTAGE OF WORKFORCE 10% 44% 34% 12% (2014) TRADITIONALISTS BABY BOOMERS GEN X MILLENIALS (Born < 1946) (Born 1946-1963) (Born 1964-1979) (Born 1980-1995) Company loyalty: Live to work: Work to live: Work my way: “same company “office face time” “work should not “own careers, forever” define life” meaningful work” “The Conference Board’s 2014 survey of global CEO challenges ranked human capital as the number one challenge,” says Dave Ulrich, the Rensis Likert Professor at the University of Michigan’s Ross School of Business. “We’ve found that the leadership profile of successful CEOs most closely matches that of effective CHROs,” he adds, referring to a 2014 analysis he undertook in partnership with Korn Ferry that was published last year in the Harvard Business Review. This suggests that future CEOs may not only place greater importance on HR —- in a growing number of companies, they themselves will be former CHROs. 4 DRIVEN BY DATA By 2020, HR will need to be Companies such as Google use predicts that about half the adept at providing the rest of the “meeting-cancellation rates” as people working in HR today won’t organization with data that does an indicator of engagement and be working in the profession five more than simply explain what’s potential turnover challenges, says years from now. The CHRO role is a already happened — it must tell its Martin. HR will become a kind of demanding one that requires deep leaders who within the organization analytics guide, producing “the right domain in HR but also a willingness to may be thinking of leaving, who’s answers at the right times” to avoid innovate, to push the envelope, and joining and why, and why one team is negative HR outcomes. not all director-level HR people are ready for that. experiencing performance failures “Wearables” will also play an while another is thriving, says Jean important role; devices such as What sorts of skills will be Martin, talent solutions architect at smart identification badges can necessary? The ability to consulting firm CEB. predict performance. Hitachi, whose understand analytics and draw As work has become more horizontal smart badges track employee prescriptive guidance from data and collaborative, says Martin, a movement in the workplace, will be vital. HR must also be seen surfeit of data and technology revealed that engineers who move as a credible source — in other provides a new level of insight for around a lot and eat lunch with large words, CHROs who are confident obtaining more precise answers. groups of co-workers are more in their ability to deliver what the Today, she says, companies can productive than their more solitary business needs should insist on the report on their turnover rates, but counterparts. same level of support and respect granted to other C-suite members, tomorrow, they may be able to There’s some bad news, however: particularly the CFO. foresee that turnover and design Many current HR professionals won’t programs accordingly, thanks to have what it takes to measure up the level of insight offered by Excerpted from Human Resource Executive in this new world. CEB’s research Online, May 2015 predictive analytics. CONDUCT QUALITATIVE AND QUANTITATIVE ANALYSIS Insights that come from CROWD-SOURCING juxtaposing “say” and “do” Data about what employees and employers say about performance are so strong, and so often at management as caused by: variance with what comes from either approach alone, that the best way to ensure insight and successful change — for DATA the important issues — is to Data about how performance work with both. management influences employer and employee actions as captured by actions such as pay increase/ promotion linkages to ratings 5 EMPLOYEE VALUE PROPOSITION WHAT SETS YOUR COMPANY APART? The value of working needs to go beyond the traditional silos of HR programs. The glue that binds colleagues together isn’t simply the sum of the pay and benefits program. Total rewards is a part of your broader employee value proposition (EVP), which includes long-term career opportunities, workplace culture, and line of sight to the impact of jobs. The EVP has to connect to the meaningfulness — the purpose — of the work of your next generation of talent and leaders. 6 WE NEED TO RE-IMAGINE WHAT WE DO Love isn’t an abstract emotion. It’s the

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