The Future HR Mercuri Urval Research Study February 2012 It s all about people.
Forces shaping the future of HR: Big Picture Executive Opinions Voice of the business Future contribution of HR
Our research Statistical Office of the European Union Pews Research Centre (US) BCG / World Economic Forum European Association for People Management Mercuri Urval Research Unit S4k Research Partners Global HR Leadership Forum; 15 global HR SVPs and Directors hosted by Mercuri Urval in March 2012 Research Insights Analysis of customer requests
Work Force Macro Trends The challenge of higher demand and fewer available talents. By 2030, Western Europe needs an additional 45 million employees. Far more than current growth rates predict. Supply and demand shift and power transfers. The implications are: Difficult to hire talent Global mobility increases Successful companies fill more senior positions internally Candidate attraction market Optimizing the sub-optimal employee Motivating and keeping the empowered employee Capability Break-even 2000 2015 2030 Source: AMS EUROPEAN UNION (EU-15) Retirements Entrants Capability Gap No of Employees
Technology development accelerates Generation Y becomes the work force and globalized teams takeover This results in: Reduced barriers to competition Increased value contribution of employee relatives to product Remote and virtual working the new normal (globally)- new leadership challenges Criticality of social media and the new digital generation of leaders (80% of 16-24yr old are active daily) New service possibilities and business needs
Movement of Job Creation Where will the jobs be created in the future? From 2003 to 2008, the 50 largest global companies based in Europe lost 300 000 roles in their domestic markets and recruited 500 000 abroad. Primarily in the BRIC economies and the second wave of rapid growth economies The Next 11 there is an emergence of highly skilled workers and jobs. The implications for HR functions relate to: The global leader, manager, & HR person Knowledge companies (R&D and skills based) Diversity that reflect customers and markets Rapid in A-Pac and LatAm Global emergence of the Chinese work ethic and investment
The Voice of the Business Mercuri Urval Survey (c1500 in 27 companies) BCG Survey (2000+) 1. Leading Change 1. Managing Talent (talent pools and succession) 2. Customer Focus and Understanding 3. Performance Management 2. Leader development (the most important capability building focus) 3. HR as a strategic partner (only if HR responses are included!) 4. Profitable Growth 4. Strategic workforce planning (longer term supply and demand models) 5. Becoming one Company 5. Enhancing Employee engagement ERE 2012 PredicBons John Sullivan (Fortune 500 Talent Adviser) 1. From social media to mobile pla<orm 2. Intense niche talent shortages in 2012 3. Employee turnover increases 4. Serious data driven social media and online focus 5. Remote working takes off
Executive Opinions Maintaining and strengthening our culture through acquisition growing and staying small Getting the people part of business transformation right Cost effective matching of the right people to the right roles, especially for critical functions Fair, transparent and involved method for making key people decisions Building strength in depth and aligning people around a common transformational agenda Making the right decisions about people based on analysis not opinion Identifying what leadership capability we really need. Global resource quality. Succession and future proofing
Six Fundamental HR Competency Domains The 2012 or sixth round of the HR Competency Study identifies six fundamental competency domains that HR professionals must demonstrate to impact business performance. Participation in the study has far exceeded our expectations, with over 20,000 surveys in our data sample. This is by far the largest and broadest data set of any round of the HR Competency Study since it began in 1987. These factors address a number of themes facing global business today: Outside/in: HR must turn outside business trends and stakeholder expectations into internal actions that drive performance Business/people: HR must focus on both business results and human capital improvement; Individual/organizational: HR should target both individual ability and organization capabilities Event/sustainability over time: HR is not about an isolated activity (a training, communication, staffing, or compensation program) but sustainable and integrated solutions. Past/future: HR should respect the heritage of organizations, but also shape the future Administrative/strategic: HR must attend to both day-to-day administrative processes and long-term strategic practices; it s not one another, but both.
Conclusion: The Top 5 Challenges for HR Top 5 Quests How to make yourself diversely attractive? Which leaders actually create results? Who needs to do what, for who and where? How to lead the business? What is an elegant & efficient delivery model? Attracting and keeping emerging digital talent while keeping experience Developing leaders to succeed as individuals and as a organisational capability Building and deploying HR expertise locally and centrally Strategic and commercial workforce planning (Outside and In, business and people) Simple and easy core process integrated and sustainable
Considering the Top 5 Challenges for HR How to make yourself attractive? The best choice for the talent you need. When that talent is by definition diverse, in all aspects. Who you can attract is the new selection? How to communicate, create networks and share ideas? Why do 750million people spend more than face book for half an hour each day? Build Vs. buy, building competence might be the way to get through the scarcity? High performing companies (measured on growth and profit) fill 60% senior roles themselves, low performers 20% Leaders creating results? All Business and HR surveys reviewed rate understanding the demands of future leaders as critical. Increased complexity combined with increased focus on execution are clear themes. The best leaders will need to learn to continuously keep ahead of change and turn it to there advantage? What types of HR professionals and where? Google hire 1/3 specialists, 1/3 HR, 1/3 management consultants. Over centralisation as a threat to customer delivery?. Where to centralise and what to centralise? How to lead the business? You can t be a partner if you can t deliver the day job? Partnerships are forged in working through adversity and being active together? It is a behaviour and a concept, but mostly it is an action? Demographic trends suggest even adequate performers are getting scarce? What is the most elegant and efficient delivery model? How to use technology in a way that closes the gap between home and work IT? How to make sure HR leads IT development and not the other way round? Which processes to standardise and which to tailor?
Tomorrow s HR Professional Role Leading: HR Strategy (Shaper): Analyses, frames & facilitates Employee Growth (Builder): Ideas, capabilities & systems Transformation & Change (Catalyst): Systemic, functional & individual change Networks & Communication (Connector): Technology, People & Knowledge Operational Excellence (Achiever): Delivers, advises & creates trust
Future HR Attracts Diverse Talent Grows Great Leaders Delivers globally and locally Anchored in business need Makes things simple and easy Strategic HR Leader Leading Employee Growth Transformation & Change Enabler Networker & Communicator Operational Excellence
Delivered through aligned HR activities Flawless Execution (Organisational alignment, Operational excellence, Communication and Networking) Build Great Leaders & Managers (Leadership Development, Bench Strength, HR Thought Leadership) Culture of Development (Talent Management & Development, Culture & Change Management)