Building the Borderless and Agile Workplace

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1 Building the Borderless and Agile Workplace Bersin & Associates Predictions for 2012 Josh Bersin President and CEO, January, 2012 Copyright 2012 Bersin & Associates. All rights reserved.

2 Bersin & Associates Who We Are Bersin & Associates is the leading global provider of best-practices, trends, and benchmarking research in talent management, learning, and strategic HR. 60% of the Fortune 100 are Bersin & Associates research members, with more than 17.5 million employees managed by HR teams using Bersin Research. Broad Research Practices - Human Resources - Leadership Development - Learning & Development - Talent Acquisition - Talent Management Offerings WhatWorks Membership: Research, Tools, Education, Consulting IMPACT: The industry s premiere conference on the Business of Talent BersinBasics : Fundamentals of Talent Management for Business Professionals at All Levels Human Resources Leadership Development Learning & Development Talent Acquisition Talent Management Copyright 2012 Bersin & Associates. All rights reserved. Page 2

3 F U N D A M E N T A L S O F T A L E N T M A N A G E M E N T F O R B U S I N E S S P R O F E S S I O N A L S Performance & Succession Management Leadership Development Fundamentals Competencies & Job Profiles Coaching & Goal Development Learning & Development Strategy Fundamentals of Performance Appraisals Introduction to Performance Management Understanding Multi-Rater Assessments Planning for Succession Management Understanding Pay for Performance Understanding Leadership Development How to Assess People Intro to Competencies in Talent Management Intro to Competencies in Talent Management Using Competencies in Talent Management Understanding and Using Job Profiles Cascading & Aligning Goals Fundamentals of Goal Setting Understanding Performance vs. Potential Conducting a Performance Appraisal Introduction to Learning & Development Strategy Introduction to Informal Learning Learning Capability Development & Culture Creating Development Plans Conducting a Performance Appraisal Fundamentals of Goal Setting Fundamentals of Coaching How to Assess People Understanding Pay for Performance Copyright 2012 Bersin & Associates. All rights reserved. Page 3

4 The Report Developed through a compilation of all Bersin & Associates and external research we conducted throughout 2011 Designed to help you understand global trends and practices and develop your HR, L&D, and recruiting plans for 2012 Supported by Bersin & Associates research, tools, professional development, and services Predictions.html Copyright 2012 Bersin & Associates. All rights reserved. Page 4

5 14 Predictions for Global workforce imbalance will drive new focus on global talent acquisition 2. HR and Talent team goes Globally Local (Glocal) 3. Talent Acquisition joins the Talent Management Team 4. Talent Acquisition goes Social, forcing reinvention of Agencies and Job Boards 5. Employee Engagement takes center stage 6. Corporate Training will continue to transform 7. Performance Management will go agile 8. Talent mobility strategies will become mainstream 9. Organizations will accelerate their focus on career development 10. Social rewards, social learning, social performance management, social recruiting, and social career management will transform practices 11. New models, diversity, and girl power will drive leadership strategies 12. Talent management software will grow, converge, and be disrupted 13. Big Data: Data Science and Segmentation will differentiate leading organizations 14. High-performing businesses will focus on reskilling their HR teams Copyright 2012 Bersin & Associates. All rights reserved. Page 5

6 Today s Business Environment Copyright 2012 Bersin & Associates. All rights reserved. Page 6

7 2012 Business Environment Globalization, Innovation, Cost Containment What Are Your Organization s Top Business Challenges for 2012? Reduce Operating Expenses 35% of organizations see the need to accelerate growth and globalize the highest level in four years. yet Expansion into New Markets Launch new Products and Services Need to Accelerate Innovation +10% Increase +60% Increase Change Business Strategy 51% struggle to hire the right talent, despite high unemployment Acquisitions or Mergers New top management team Global expansion +70% Increase Bersin & Associates, Corporate TalentWatch Research, Senior HR and Business Executives, 1/2010 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% Dec May 2011 Copyright 2012 Bersin & Associates. All rights reserved. Page 7

8 Million Vehicles Sold The Global Auto Marketplace Automobile Sales U.S. vs. China U.S. China million 10.4 million Copyright 2012 Bersin & Associates. All rights reserved. Page 8

9 Ford Figo Fastest Selling Car in India Ford Figo Story Designed in India for the Indian Market Manufactured in Chennai by Indian Staff Colors, face, and styling designed for Indian tastes Size, Shape, and features designed for lifestyle and roads in India Copyright 2012 Bersin & Associates. All rights reserved. Page 9

10 The Borderless Workplace W O R K F O R C E Connected Global Multi-Generational Mobile Transient New Models for Career Mentor Employee Partner W O R K P L A C E Transparent Dynamic Performance-driven Specialized Interconnected New Models for HR & L&D Customer Candidate Manager L I F E S T Y L E 750 million people on Facebook 135 million people on LinkedIn 75% of workers are mobile BigData is Everywhere Peer Copyright 2012 Bersin & Associates. All rights reserved. Page 10

11 Explosion in Mobile Internet Market Copyright 2012 Bersin & Associates. All rights reserved. Page 11

12 What would You Be Willing to Give Up for a Week to Keep your Mobile Phone? Caffeine: 55% Exercise: 54% Sex: 33% Brushing teeth: 22% Gaming is now the fastest growing application on mobile devices Copyright 2012 Bersin & Associates. All rights reserved. Page 12

13 Today s Talent Marketplace Out of Balance Skills and Experience Shortage Specialization Free Agent Economy Too Many Candidates Copyright 2012 Bersin & Associates. All rights reserved. Page 13

14 The Ill-Prepared US Workforce Only 32% of college graduates have excellent skills to enter the workforce Only 16% of high school graduates have such skills. Missing are: Professionalism/work ethic Creativity and Innovation Lifelong learning/self-direction Critical thinking/problem solving Only 18% of workforce training programs raise skills from deficient to adequate Copyright 2012 Bersin & Associates. All rights reserved. Page 14

15 Global Talent Deficit The Cultural Revolution created a missing generation of talent between 40-55, so expatriates fill most jobs at the top India Graduates Millions, but Too Few Are Fit to Hire 75% of technical graduates and 85% of general graduates in India are unemployable by India s high-growth industries, including IT and call centers. Regional Leadership Young workers flooding the marketplace, yet most have inferior preparation, language skills, and technical skills. Country Leadership Middle Management BofA s retail wealth management arm, Merrill Lynch, plans to hire 2,400 trainees in 2011, a 50 percent increase over last year. Entry Level China We are entering the era of unparalleled talent scarcity, which will put a brake on economic growth around the world, and will fundamentally change the way we approach workforce challenges. Copyright 2012 Bersin & Associates. All rights reserved. Page 15

16 Free Agent Workforce Job tenure for under-35 year olds is 2.5 years The average worker today will have 11 jobs by the age of 45 2/3 of all employers are increasing their percentage of contingent workers We estimate that as much as 40% of the US workforce is currently on a contingent basis Copyright 2012 Bersin & Associates. All rights reserved. Page 16

17 Increasing Specialization Expertise drives competitive advantage Specialization improves quality and reduces cost Deep skills developed through deliberate practice and reinforcement Deep skills come from a range of developmental experiences We need career development in all critical job roles The Experts Senior Specialists Top Management Senior Management Middle Management First Line Management Functional Specialists / Front-Line Employees Back Office, Operational, Contingent Employees High Performing Organizations Understand This Copyright 2012 Bersin & Associates. All rights reserved. Page 17

18 Change in Employment Contract In % of employees are planning on leaving their employers, vs. 19% two years ago 59% of employees believe their employer is a sound long term place to work vs. 65% over last three years Only 42% of employees believe that promotions go to the most qualified employees Loyalty Career Equity Mercer Whats Working Research, October 2011 Copyright 2012 Bersin & Associates. All rights reserved. Page 18

19 The Workforce is really Younger. This generation has a very different view of work and, therefore, of loyalty. They see work as a mutually beneficial exchange with their employer and, when it s no longer working for them, they plan to move on. And Younger employees are much more likely to leave their employers. There is no strong sense of allegiance to the organization or expectation of long-term employment. Their allegiance is primarily to themselves and their careers, and that has major implications for how employers manage this Under 25 year olds are 10% more likely youngest segment of their workforce. to want to leave, and under 35 are 5% more likely. Mercer October 2011 Mercer October 2011 By 2013, 47% of employees will be those born after US Census Bureau Copyright 2012 Bersin & Associates. All rights reserved. Page 19

20 Talent, Leadership, Planning Remain Key Priorities Bersin & Associates TalentWatch, Fall 2011, n=283 Copyright 2012 Bersin & Associates. All rights reserved. Page 20

21 Rapid Evolution of Talent Management Copyright 2012 Bersin & Associates. All rights reserved. Page 21

22 Integrated Talent Management Global Recruiting Efficiency and Effectiveness Sourcing & Recruiting 2 3 Performance management Team alignment Pay equity Managerial expertise Future planning Scenarios Business level talent plans Gap and risk analysis 1 Talent Strategy & Planning HR Systems & Metrics Competency Management Roles Jobs 4 Learning & Development Informal and Mobile Learning Expertise & Career Development 7 5 Effective pay equity and efficiency Comparative pay analysis Pay for performance Compensation 6 Leadership Development Succession planning New leadership models and needs Total talent mobility Talent pools and segments Copyright 2012 Bersin & Associates. All rights reserved. Page 23

23 Agile, Borderless, Global Talent Acquisition Copyright 2012 Bersin & Associates. All rights reserved. Page 25

24 The War for The Best People 52% of manufacturers are having significant challenges finding talented workers. Recruiting difficulty has increased every year since SHRM LINE Staffing Survey 1/2012, n=500 Copyright 2012 Bersin & Associates. All rights reserved. Page 26

25 Attracting the right candidate in the right place quickly, efficiently, and consistently Copyright 2012 Bersin & Associates. All rights reserved. Page 27

26 High Impact Talent Management Bersin & Associates Methodology 1 Business State Analysis and Strategy Review Business Goals and Challenges Business Units Business Units Business Units Talent Plan Talent Plan Talent Plans 2 Business-Related Talent Challenges Talent Gaps, Leadership Gaps Forecasts and Talent Plans Workforce and Marketplace Plan Economics, Demographics 3 HR Process Design and Integration Points Performance Management Strategy Talent Acquisition Strategy Competency Mgt. Strategy Leadership Devt. Succession Strategy Learning and Development Strategy Compensation & Rewards Strategy 4 Systems and Process Implementation Process Redesign Process Integration Talent Systems Strategy High Impact Talent Management Bersin & Associates Copyright 2012 Bersin & Associates. All rights reserved. Page 29

27 Candidate Experience Screening Test & Assessment Interviewing Workflow Hiring Open Positions Workforce Plan (s) Business Plan(s) Talent Acquisition is a Core Process Active Candidates Core Values Employment Brand Candidate Farming Candidate Sourcing Leadership Values Candidate Referrals Candidate Pipeline Passive Candidates Onboarding Hiring Managers Business Leaders Internal Candidates Management Feedback Copyright 2012 Bersin & Associates. All rights reserved. Page 30

28 Radical Changes in Talent Acquisition Facebook LinkedIn Advanced Analytics Internal Sourcing and Farming Electronic Resumes Classified Advertising Scanners Parsers Referral Networks Online Job Boards Online Assessments Online Reference Check Online Advertising Video Interviewing & Screening SEO for Talent Acquisition Online Advertising Candidate Relationship Mgt Talent Social Networks Job Aggregators Broad Employment Branding Candidate Referral Networks Integrated Onboarding Job Seeker Tools Talent Exchanges Integrated Employee Profile PC Tools Applicant Tracking Client/Server Resume Scan Resume Parse Search SaaS, Hosted Workflow Career Site Integration with TM Cloud Open Sourcing Social Network Mobile Late 1980s Forms Automation Early 1990s Recruiter Productivity Early 2000s Workflow and Online Leveraging the Cloud Copyright 2012 Bersin & Associates. All rights reserved. Page 31

29 New Models for Leadership Copyright 2012 Bersin & Associates. All rights reserved. Page 32

30 Major Managerial Skills Gap First line management skills rated lower than entry level workers 16% dangerously behind Current Capabilities by Role, December 2011 Highly ready Somewhat ready Top Missing 51% Not ready enough Skills in Mid-Level 46% Leaders Dangerously Behind 40% 57% 1. Coaching 2. Performance Appraisal 27% 23% 3. Developing Others 4. Managing Change 5. Communications 6. Business Acumen 4% 4% 5% 2% 25% 16% VP and Above Midlevel Manager First-Line Manager Bersin & Associates, Corporate TalentWatch Research, Senior HR and Business Executives, 12/2011 Copyright 2012 Bersin & Associates. All rights reserved. Page 33

31 21 st Century Leadership Development New Models: Creativity, not planning Quick decision-making Getting closer to customers Globalization, diversity Continuous change Manage unexpectedness Agility, not control Copyright 2012 Bersin & Associates. All rights reserved. Page 34

32 Grundfos: Redefine the Leaders 10% 12% Leader 9% 25% 26% 18% To realize our Innovation Intent (long term vision) and strategies, leaders are needed but they are not the only ones We also look for the best experts in various fields We look for innovators in all areas Based on interviews with top managers in the organization, the pools and competences required per pool were confirmed Assessment of their profile is done through a single talent centre concept Copyright 2012 Bersin & Associates. All rights reserved. Page 35

33 Lufthansa Coaching Ourselves It has been said that you should never send a changed person back to an unchanged organisation. In management development programs, we always do. (Mintzberg, 2010) Copyright 2012 Bersin & Associates. All rights reserved. Page 36

34 Emergence of Girl Power Between1970 and 2009 women went from holding 37% of all jobs to nearly 48%. (McKinsey) 76% of women now work and 58% of all college degrees go to women. Catalyst found that companies with significant female board representation had a 26% great return on capital invested. Yet the same research also found that only 14% of top executive positions are held by women. Copyright 2012 Bersin & Associates. All rights reserved. Page 37

35 Talent Mobility and Career Management Copyright 2012 Bersin & Associates. All rights reserved. Page 38

36 Creating Talent Mobility Emerging Leaders Top Management Emerging Leaders Senior Management SMEs (Consultants) Middle Management Senior Specialists First Line Management Functional Specialists / Front-Line Employees Back Office, Operational, Contingent Employees Copyright 2012 Bersin & Associates. All rights reserved. Page 39

37 Implementing Talent Mobility New Candidate Part Time Loan Job Intern SMEs (Consultants) Stretch Assignment Senior Specialists Exec Succession Top Management Senior Developmental Management Assignment Middle Management Lateral Promotion First Line Management Upward Functional Specialists Promotion / Front-Line Employees Lateral Assignment New Back Office, Operational, Contingent Employees Assignment New Leader Contract Hire External Assignment Copyright 2012 Bersin & Associates. All rights reserved. Page 40

38 High-Impact Talent Mobility Facilitated Talent Mobility New Market for Integrated Career Development Enterprise Workforce Planning Talent Assessment Talent Outreach & Exploration Talent Deployment Talent Onboarding & Development Copyright 2012 Bersin & Associates. All rights reserved. Page 41

39 Managing Talent Mobility Succession Management VALUES STRATEGIC INITIATIVES DESIRED BUSINESS OUTCOMES MISSION VISION ORGANIZATION NEEDS DESIRED COMPETENCIES (KNOWLEDGE, BEHAVIOR, SKILLS) OPEN POSITIONS & OPPORTUNITIES Individual Development INDIVIDUAL Plan (IDP) DEVELOPMENT PLAN (IDP) INDIVIDUAL NEEDS / DESIRES DEVELOPMENT NEEDS STRENGTHS ANNUAL GOALS MOBILITY Coaching Assessment CAREER ASPIRATIONS Strategic Competencies Organizational Planning / Restructuring Career Management Performance Management Copyright 2012 Bersin & Associates. All rights reserved. Page 42

40 Need for Development Planning Organizations with highly effective development planning significantly outperform those without. With Without Voluntary Turnover 8% 11% Turnover among High-Performers 2% 3% Ability to develop great leaders 23% 7% Ability to plan for future talent needs 22% 6% Median Revenue per Employee $169,000 $82,800 Copyright 2012 Bersin & Associates. All rights reserved. Page 43

41 % Improvement in business impact Career Development Models 25% 20% Relative Business Impact Business Impact (12 measures) Engagement and retention 15% 10% 5% 0% -5% Functional Career Development Strategy An Open, Social Market for Career Individually Manager Level Business Unit Level Enterprise Level -10% -15% -20% Manage your Own Career Copyright 2012 Bersin & Associates. All rights reserved. Page 44

42 Entire Organization Must Contribute to World-Class Career Management Employee Manager HR Company Identify Career Goals Maintain Profiles Demonstrate Values Socialize Interests Create Internal Network Share Expertise Define Job Profiles Provide Coaching Assess Potential Identify Development Opportunities Provide Candid Feedback Share Talent Openly Provides Tools & Resources Develop Career Models Facilitate Process Offer Career Coaching Career Development Training Integrate with Talent Mgmt Infrastructure Process, Technology, People Create Culture of Mobility Communicate Expectations Create Transparent Marketplace Copyright 2012 Bersin & Associates. All rights reserved. Page 45

43 Social Performance and Rewards Copyright 2012 Bersin & Associates. All rights reserved. Page 46

44 The Agile Organization Model: Hierarchy: Control & Alignment Agile: Speed & Market-Centric Creates: HR s Job: Continuity Execution Order Control Implement controls, standards, and systems to drive alignment & execution Change Adaptability Innovation Chaos? Implement programs, systems, strategies, which foster market agility Copyright 2012 Bersin & Associates. All rights reserved. Page 47

45 Performance Management is Underperforming Performance Management s Effectiveness at Key Activities that Drive Business Results Source: Bersin & Associates High Impact Talent Management and High Impact Performance Management research, 2011 n=290+ Copyright 2012 Bersin & Associates. All rights reserved. Page 48

46 The Evolution of Performance Management Evolving From Top-Down Approach Evolving To Collaborative Annual Event Inconsistent Paper Process Forms-Based Standalone Process Continuous Automated Enterprise-Wide People-Centric Integrated with Talent Management Copyright 2012 Bersin & Associates. All rights reserved. Page 49

47 Which means performance feedback must come from everyone Your employee s manager Your employee s team Everyone else Every employee and every team has its own Social Graph Copyright 2012 Bersin & Associates. All rights reserved. Page 50

48 Agile Performance Management Continous goal setting OKR Objectives and Key Results not cascading goals Continuous feedback from all directions including bottom up Daily or weekly scrums to review job and team performance Managers continuously look for ways to remove bottlenecks Delegate authority within guidelines Make people successful with coaching and work simplification Reward people with feedback and purpose Copyright 2012 Bersin & Associates. All rights reserved. Page 51

49 Social Tools Companies Performance Rewards Rypple (Salesforce.com) Cleargears Worksimple Teamly Confluence Small-Improvements CultureAmp Saba Impressions 7Geese Teamitt Achievers (I Love Rewards) GloboForce BI Incentive CorporateRewards Inspirus LoyalNation OC Tanner Rideau TemboSocial TerryBerry Copyright 2012 Bersin & Associates. All rights reserved. Page 52

50 Transformation of Learning & Development Copyright 2012 Bersin & Associates. All rights reserved. Page 53

51 Evolution of Enterprise Learning Change in Disciplines, Technologies, and Strategies We are Here Get Materials Online Expand, Blend Improve E-Learning Solve Talent Problems Informal Learning Skills & Specialization Rich Catalog University Building Deep and Integrated Alignment with the Business Learning Paths Role-Based Competency-Based Learning Career Development Deep Specialization Leadership Development Instructional Design Kirkpatrick Selecting and Implementing E-Learning and the LMS E-Learning Get Materials Online Interactivity Simulation Rapid E-Learning Information vs. Instruction Integrating Adapting, and Enriching Blended Learning Blended Learning Integrating and Aligning with Talent Management Search, Collaboration, Community Information Architecture Understanding Informal Learning Social Networking Mobile Collaborative / Social Learning, Content Mgt, Rich Media and Globalization 1 LMS E-Learning Platform 2 LMS Enterprise Learning Platform 3 Learning Portal Blogs, Wikis, 4 Twitter, Mobile, and Social Networks Copyright 2012 Bersin & Associates. All rights reserved. Page 54

52 The Continuous Learning Model Expert Coaching Mentoring Continuous Learning Career Curriculum Communities of Practice Social Networking E-learning courses Job Aids Training Event Mobile Learning Novice Traditional Training Time Copyright 2012 Bersin & Associates. All rights reserved. Page 55

53 Organization, Governance, and Management Approaches A New Learning Framework Bersin & Associates Enterprise Learning Framework Learning Programs Audiences, Problems, and Environment Informal Formally Designed Training On-Demand Social 20% 80% Embedded Learning Architecture New Disciplines Tools New Tools and and Technology Learning Culture Copyright 2012 Bersin & Associates. All rights reserved. Page 56

54 But do We Know what Really Matters? Great Corporate University Strong CLO and Alignment Excellent L&D Skills Use of rich media and social tools Excellent Training and E-Learning Innovative program design Have we created an organization which truly has a culture to learn? Does leadership reinforce the need to learn? Is expertise rewarded and valued? Are decisionmaking processes clear? Do people share information openly? Do people feel empowered to point out errors? Do we take the time to reflect? Do people move around and take risks? Do we listen to customers openly? Copyright 2012 Bersin & Associates. All rights reserved. Page 57

55 We found success depends on Culture 52% High Performing Organizations are 3X more likely to have a strong learning culture 32% 37% 18% 22% 24% 2% 3% 7% All High Organizations Impact Organizations 3% Poor We do not value learning Fair A few locations value learning Good Learning valued in some locations Excellent Learning is highly valued World Class Valued at all levels Strength of Learning Culture Copyright 2012 Bersin & Associates. All rights reserved. Page 58

56 High-Impact Learning Culture Model Most Difficult Areas to Address 6 Keys to an Enduring Learning Culture Business Outcomes Building Trust Encouraging Reflection Demonstrate Learning s Value Enabling Knowledge Sharing Empowering Employees Formalizing Learning As Process Learning Agility Innovation Employee Productivity Leadership Ability to Learn Motivation to Learn Customer Satisfaction Customer Responsiveness Management Acquisition + Application of Knowledge and Skills Customer Input Cost Structure Time to Market 40 Practices of a High-Impact Learning Culture Market Share Workforce Expertise Copyright 2012 Bersin & Associates. All rights reserved. Page 59

57 Organizations with a Strong Learning Culture Significantly Outperform their peers Innovation Productivity Time to Market Quality Skills for the Future Profitability 46% 37% 34% 26% 58% 17% more likely to be first to market greater employee productivity better response to customer needs greater ability to deliver quality products more prepared to meet future demand more likely to be market share leader Copyright 2012 Bersin & Associates. All rights reserved. Page 60

58 Development of a New Formal Learning Architecture Copyright 2012 Bersin & Associates. All rights reserved. Page 61

59 Convergence and Disruption of HR and TM Software Markets Copyright 2012 Bersin & Associates. All rights reserved. Page 62

60 M A R K E T G R O W T H - A D O P T I O N HR Evolution: Technologies Business Driven HR Recruiting, L&D, Org Design Total Rewards Service Center, COE HR Business Partner Integrated Talent Management Drive the Business Strategy Plan for the Future Differentiate & Segment Talent Administration Payroll Regulation Back-Office Function Personnel Development Strategic HR Serve the Workforce & Automate Enable Decisions & Management Management Succession Leadership & Coaching Integrated Processes & Systems Talent Management Plan for the Future Globalize the Workforce & HR Integrate with the Business Compliance P R O G R E S S I O N O V E R T I M E Copyright 2012 Bersin & Associates. All rights reserved. Page 63

61 M A R K E T G R O W T H - A D O P T I O N HR Evolution: Functions Benefits & Compensation Benefits Administration HRIS Hiring Recruiting Back Applicant Office Tracking on-premise ERP Recruiting Sourcing E-Learning SaaS and Hosted Systems Learning Management Performance Talent Integrated Talent Mgmt Performance Management Succession Management Competency Management Integrated TM Solutions Cloud-Integrated SaaS Solutions Connected to Social Networks Social PaaS Rewards (Salesforce.com) Workforce Planning Next Gen Recruiting People Mgmt Systems Social Everything Mobile and Tablet, HTML5 Analytics Segmentation Prediction Gamification Consumer Interfaces Compensation 2000 P R O G R E S S I O N O V E R T I M E 2012 Copyright 2012 Bersin & Associates. All rights reserved. Page 64

62 3 Trends in Talent Management Mobile Social Performance Management Employee Technology Trends Social Mobile Analytics Big Data Social Everywhere Growth by Acquisition Collaboration Mobile Big Data Sourcing Content Standards Recruiting Authoring Tools Performance Mgt Content System(s) Learning Publishing Tools Career Information Architecture Recognition Global Community time Management zones Increased Sharing Guidelines managerial time Results-based Cultural Reinforcement work Specialization Rewards and Feedback Virtual Monitoring Teams and Standards Flattened Organization Big Data Analytics Embedded analytics Predictive analytics Segmentation Differentiation Global Clouds Data Science in HR Copyright 2012 Bersin & Associates. All rights reserved. Page 65

63 Slow Move toward HRMS Integration All HRMS, ERP Providers Benefits Workforce Planning Payroll Learning Management HRMS HRMS HRMS Comp Engagement Recruiting Onboarding HRMS HRMS Performance Management Succession Workforce Management Social Collaboration Mobile Access Every TM Provider Today Copyright 2012 Bersin & Associates. All rights reserved. Page 66

64 Major Acquisitions by Talent Management Providers Approva 11 SAP Copyright 2012 Bersin & Associates. All rights reserved. Page 67

65 Learning Management Performance Management Saba Cornerstone Certpoint NetDimensions Blackboard Plateau Technomedia SumTotal Strategia Meridian Skillsoft Collapsing Market SuccessFactors PeopleFluent Rypple Sonar6 Halogen PageUp Salesforce.com Taleo Kenexa Hodes Technomedia PeopleFluent LinkedIn SilkRoad Lumesse Kronos Oracle PeopleSoft SAP Ultimate ADP Lawson Workday JobVite Jobs2Web Accero Talent Acquisition HRMS Copyright 2012 Bersin & Associates. All rights reserved. Page 68

66 Biggest Drivers of Satisfaction Careful development of talent management strategy and needs up front Careful selection of just enough technology Your experience with enterprise rollouts, change management, and communications Vendor focus on your customer type and maturity Vendor s ability to deliver partnership relationship Vendor s overall focus on customer service and support HRMS vendors lowest, mid-market vendors highest Copyright 2012 Bersin & Associates. All rights reserved. Page 69

67 The Need for New Skills in HR Copyright 2012 Bersin & Associates. All rights reserved. Page 70

68 Need to Reskill HR Itself Nearly all the 200 CHRO s cite talent as the top priority of their CEO s agenda for HR. But it s the lack of talent in the HR function that the CHRO s said is the greatest obstacle to achieving the CEO s agenda for HR. Copyright 2012 Bersin & Associates. All rights reserved. Page 71

69 How do Companies Hire People? 2/3 of hiring done without any significant assessment % of Organizations Which Regularly Use Following Assessment Practices Background checking: 79% Managerial interviews: 64% Interview training: 47% Behavioral assessments: 34% Reference calls: 32% Skills-based assessments: 25% 2/3 use no real assessment process at all leaving the process to hiring managers or recruiters Bersin & Associates High-Impact Talent Acquisition Study, Fall 2010, 158 organizations responded Copyright 2012 Bersin & Associates. All rights reserved. Page 72

70 The Surprise Effect of Data What is the most important baseball statistic that drives a winning team? Team batting average? Runs batted in (RBI)? Pitcher s earn run average (ERA)? On Base Percentage (OBP) Not a Characteristic of the Player (candidate) Copyright 2012 Bersin & Associates. All rights reserved. Page 73

71 Friendliness Cognitive Ability What Factor drives sales revenue in these three organizations? Tenure Copyright 2012 Bersin & Associates. All rights reserved. Page 74

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