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Use of social networking and collaborative platforms in HR in Finnish enterprises

Use of social networking and collaborative platforms in HR in Finnish enterprises



Report from survey among 102 HR professionals in Finnish companies

Report from survey among 102 HR professionals in Finnish companies



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    Use of social networking and collaborative platforms in HR in Finnish enterprises Use of social networking and collaborative platforms in HR in Finnish enterprises Document Transcript

    • GL CONSULTING/ETHOS TECHNOLOGIES (THE LATER ACQUIRED BY SYMBIO OY) The Use of social networking and collaborative platforms in HR departments in Finnish companies Report from survey conducted in May 2011 Author: Magdalena Pawlowicz 2011GL CONSULTING/ETHOS TECHNOLOGIES, HENRY RY AND LINNAPUOMI CONSULTING
    • About the SurveyGL Consulting/Ethos Technologies (the later acquired by Symbio Oy), in consultation with HENRY ry andLinnapuomi Consulting, is proud to present the results of the survey conducted among HR professionals inFinnish organizations and businesses on their use of social networking and collaborative platforms.The survey was made independent of any vendor or company and was conducted among members of HENRYry using a web-based tool. One hundred and two HR professionals from Finnish organizations and businessesparticipated in it during last week of May 2011.Survey demographics can be found in Appendix A.About the Author:GL Consulting is a small Helsinki based consultancy specialized in helping organizations in their implementationof social and collaborative technologies. Ethos Technologies (acquired by Symbio Oy in May 2011) is a leader insocial software, collaboration platforms and cloud computing.Summary:The outcome of the survey indicates that most HR departments in Finnish organizations are not well preparedfor the future; hence, they are not fully familiar with social networking and on how collaborative tools canenable building high performers within the new context of networked organizations. The key competencies inHR that drive business results today are familiarity with integrated talent management, understanding ofworkforce planning, and comfort with social networking and collaborative HR technology1.In addition to these competencies, HR departments also have to relate to new organizational models such asincreased number of employees working remotely or from home. They interact with peers and customersthrough several channels: phone, social networking sites, instant messaging etc, and the result of this is ahighly networked organization in which HR must create alignment between business and people management,enable collaboration and at the same time increase efficiency of each euro spent on training, learning andemployee development. When we combine the networked nature of today’s organizations with the need tomore rapidly develop such “high-performing” professionals, the survey indicates that today’s HR departmentsare caught in a squeeze.The solution might lie in redefining talent management. The traditional approach of creating employeeperformance plans, goals, succession plans, assessments will naturally remain, but it must build into the moreagile and networked nature of organizations and provide e.g.: • possibilities for managers to evaluate, rank and develop a team of people who interact with each other in a networked organization, and • processes and tools so that managers are able to quickly understand the new competencies needed in a networked organization and able to co-create development plans with employees to foster success.In a report created by EVA in 2011, it is stated that Generation Y’ers in Finland have entangled theirprofessional lives with their private lives and will use external social networks such as Facebook to conduct alltheir social interactions. Therefore, they are expecting their employers to provide similar easy to use and socialconnector tools in their work environment. With the current level of use of collaboration tools and socialnetworking, it might be a challenge for Finnish organizations to attract the best and the brightest talent.1 Bersin & Associates, McKinsey Quarterly: Question for your HR chief: Are we using our ‘people data’ to create value? 2
    • Key Findings and Recommendations:Key Findings:  22% of the respondents have implemented social networking and collaboration technology in their performance management,  16% has HR software which allows for employees to join communities, collaborate, share information, discuss topics in business context, follow peers and subscribe to relevant information in their subject area  12% have integrated their social and collaboration platform with their legacy systems  55% do not use social networks in which employees and managers work together to locate logical successors  54% of the respondents in the survey answered that they are unable to indentify pools of employees with similar levels of expertise  22% of responding companies are using social networking to connect experts with new employees to speed up the employee development process  53% are not using social networking to enable new employees to share their internal competencies, profile, or areas of interest.Recommendations:When it comes to finding ways to create better linkages between employees in different departments orlocations, the HR organization is at the link. Even though the study indicates that majority of people in HR rolesseems to be in shortage of profound expertise around social networking and collaboration technologies, theystill need to be in the forefront of discovering and understanding the changing nature psychology of employeesas they interact in this ’new mode’. One of the first steps for HR could be to re-connect with people in theirorganizations who use social networking and collaborative tools to understand the issues and the opportunitiesfor HR that are emerging out of the rise in the use of social and collaborative tools by employees.Or initiate reverse monitoring, like in General Electric, when the CEO realized that he and his managementteam needed to learn about internet and technology applications. He required that he and his top executiveswould find younger mentors inside the company who were knowledgeable about the internet. Most of thementors were in their 20′s and 30′s. Younger employees are likely to be more comfortable in using these newsocial and collaborative technologies, and can pass on their knowledge to the ‘more experienced’ staff. This, ofcourse, is also an opportunity for the experienced staff to mentor the new and younger employees.1. The role of social networking in Companies’ Human Resources Practices 3
    • Seven questions in the survey were dedicated the role of social networking in the Human Resources practices.The questions were bundled around the use of social networking for the following HR processes: on-boarding,workforce planning and tool support for analyses of groups at risk, employee self-on-boarding and informallearning through participation in Communities of Practices, and open networks for enterprise widecommunication enabled by social and collaborative technology.1.1 On-boarding:60% of the respondents answered that they are connecting new employees with peers or coaches to assimilateinto the organization. However, 53% of the respondents answered that they are not using social networking toenable new employees to share their internal competencies, profile, or areas of interest, which is indicatingthat connecting with peers is done via traditional tools and processes. A study made on IMD in Lausanne showsthat overall workforce performance and time-to-productivity is improved by getting new hires on-boarded andconnected faster, significantly reducing costs associated with learning on the job. Fig 1. Are you using social networking tools to making new employees feel connected through sharing: 60 50 40 in % 30 20 10 0 Internal Own profile Areas of None of the Other competencies interest above22% of responding companies are using social networking to connect experts with new employees to speed upthe development process, whereas 71% does not and of which 20% are planning to do so in the future. Fig 2. Are you using social and collaborative networking to connect new employees to experts during training to support their development process in the first few months on the job? 7% Yes 22% 20% No Not yet, but we are planning to Do not know 51%1.2. Workforce planning: 4
    • A recent benchmark survey2 done amongst 720 global organizations indicate that conducting workforceplanning, including enterprise forecasting and skills-gap scenario planning, is one of the greatest drivers ofbusiness results. For example, companies which excel in workforce planning drive four times the value of thosewho focus on the consolidation of HR technology systems. 54% of the respondents in our Finnish surveyanswered that they are unable to indentify pools of employees with similar levels of expertise, competencies orexperience in their workforce planning though with 21% being able to do so based on competencies. Fig 3. In your workforce planning, do you have collaborative tools that enable you to identify pools of employees with similar levels of: 60% 50% i 40% n 30% 20% % 10% 0%80% of the respondents in the survey answered that they are unable to prepare real-time analyses of groups atrisk e.g. retirement skills gap due to the lack of technology enablers, with 29% of the respondents planning toimplement such enablers.. Fig 4. Do you have tools to support rapid analyses of groups at risk (e.g. retirement, skills gaps) based on demographics and skills information that are updated in real time by employees and managers themselves? Do not know Not yet, but it is in our plans No Yes 0% 10% 20% 30% 40% 50% 60%1.3. Communities of Practices and Open Networks: The two last questions in the paragraph concentrated on creation of communities of practice and opennetworks to support various HR processes. International studies indicate that network creation (e.g.,introductions) and communities-of-interest or practice can accelerate new hire on-boarding3 and that access toexperts, communities of practice by others in similar roles support 80% or more of learning on the job. In thesurvey, 30% has created Communities of Practices, with 5% not knowing if such CoPs have been created inside2 Bersin & Associates3 U.S. and U.K. employees cost businesses an estimated $37 billion every year because they do not fully understand theirjobs, according to IDC. 5
    • their own organization, and with 38% not having created and with 27% planning too. This might be anindication of that HR departments are not fully familiar with social networking and its possibilities to improveemployee engagement, and increase the company’s productivity. Fig 5. Has your organization created communities of practices that are easy to find and join, based on employees role, organization and skills? 5% Yes 30% 27% No Not yet, but we are planning 38% to Do not knowIn the Finnish survey, 34% were unaware of having created open networks to support various forms ofenterprise-wide communication and employee engagement. This might be an indication that it is difficult forHR practitioners in Finland to stay current with new HR practices. Having said that, 46% of the respondentshave created open networks, which are supported by social tools for employee communication. Fig 6. Has you organization created open networks enabled by collaborative tools for: 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Employee Executive-level Creation of open Improving Do not know Other communication discussions enterprise-wide employee lines of engagement communications2. The role of social networking and collaboration in learning:Connecting employees with the knowledge they need to have to carry out their work can increase productivityand drive innovation. Using social collaboration to reinforce traditional classroom learning in an informalsetting allows business to turn learning into an ongoing process and not only a one-time event. 38% answeredthat the company encourages employees to create learning content themselves and push it to one another,with 54% answering no, of which 15% have this in their plans. 8% said they did not know. 6
    • Fig 7. Which of the following technologies are available to support peer-to- peer learning and knowledge sharing? LinkedIn type of profiling directory (look up 45% another peer who has knowledge or experience) 40% Wall (for posting questions and getting collaborative responses from many) 35% Communities of practice 30% Company blog 25% 20% Company wiki 15% Online internal knowledge market place 10% where employees can search for information and solution to problems 5% We do not yet have any social and collaborative technologies in place to support peer-to-peer learning or knowledge sharing 0% OtherMost respondents, 43%, mentioned the company blog as being in use in their company for peer-to-peerlearning and knowledge sharing, followed by 27% having online internal knowledge market places as anenabler. 29% answered that they do not have any collaborative technologies in place to support peer-to-peerlearning.3. The role of Collaboration in Career and Succession Planning processes:Social networking can play an important role in succession planning e.g. in identifying networks of people whowork together to locate logical successors in critical roles, or connecting people in networks which enablesthem to look at their current job and other positions to understand how they can move up in the enterpriseand what it takes to get there. In the survey, 55% respondents answered no to use of networks to locate logicalsuccessors, with an additional 11% who have not yet implemented but are planning to. 27% answered yes tothis question. Fig 8. For succession planning, are there identified groups and networks of people who work together to locate logical successors in critical roles? 7% Yes 11% 27% No Not yet, but we are planning 55% to Do not knowOn the question if employees have the possibility to view the actual career paths that others have taken whohave similar skills, preferences, 90% said no (of which 16% is planning to). Only 8% said yes. 7
    • 4. The role of social and collaborative technology in Human Resources:According to a recent global survey, a strategic approach and ownership of knowledge-sharing, collaborationand social networking in HR drives greater business impact than traditional HR strategies. Companies that focuson social networking, knowledge sharing and collaboration tools for empowerment are delivering twice thebusiness improvement of those that focus on traditional HR strategies such as pay-for-performance or new HRinformation management systems4.In the Finnish survey, 72% answered that their HR software does not include social networking feature such asrich employee profile features. When asked if their HR software allows for employees to join communities,collaborate, share information, discuss topics in business context, follow peers and subscribe to relevantinformation in their subject area, 80% respondents answered no, 16% yes with an additional 2% using othertype of software for that purpose. Fig 9. Does your HR software include rich employee profile features which enable HR and the employees themselves to extend the following information to others: Training path Succession planning Expert directory Career progression Employee interest None of the above Other 0% 20% 40% 60% 80%Collaboration and social networking technology has emerged in the area of performance evaluation focusingon communication and shared interests, encourage employee involvement and provide a means for employeesto connect and provide feedback to one another, all of which work to improve individual employee results andproductivity. According to a report published by Aberdeen Group in 2009, one third of organizations achievingAberdeen ‘best in class’ status, were using or were in the process of implementing web 2.0 tools and socialnetworking in performance management. In our survey, 22% have already implemented, 46% had notimplemented, and 25% are planning to. Fig 10. Does your HR system enable managers and employees to collaborate, share information and keep track of employee performance through collaboration - and store this information in the performance management system? Do not know Other 5% 2% Yes Not yet, but we 22% are planning to 25% No 46%4 Bersin & Associates 2011 8
    • When asked if employee data are captured and mined from various channels and sources in the companies,70% said no, 11% that they are planning to and 7% answered yes. When asking why, 49% mentioned lack oftechnology as the key barrier, 35% that there is no process in place for that, and 30% that it is not in focus ofHR. Among other which constituted 8%, legal constraints in some countries were mentioned as a key barrier. Fig 11. Do you allow employee data to be captured and mined on everything from demographics and behaviors to communication or email patterns, to determine customized training offerings and career plans? 11% 1% 7% Yes 11% No Not yet, but we are planning to Do not know Other 70%In the survey, companies were asked to check off technologies that are in use for collaboration and knowledgesharing as connecting employees with the knowledge they need when they need it has proven to increaseproductivity and innovation5. In a white paper conducted by Cisco in 2009, amongst 97 companies located in20 countries, many interviewees attested to the need for web 2.0 tools and platforms to integrate seamlesslywith an organization’s existing business applications and infrastructure. Our survey shows that Finnishcompanies are using a variety of technologies but only 12% have integrated those with their legacy systems.This would indicate that Finnish companies are in the initial stages of experimenting with social andcollaborative technologies.5 Several company references including Shell, Chevron, Cisco, IBM and more. 9
    • Fig 12. Which of the following processes or tools are in place in our organization to enable knowledge sharing and collaboration? 35% Stand alone Social and collaboration platform Social and collaboration platform 30% integrated with legacy systems Communities of Practice for general knowledge sharing 25% Communities of Practice are formalized in a specific business context, e.g. sales 20% process, idea generation Collaboration and knowledge sharing is acknowledged through reward and recognition processes 15% Social and collaborative CRM solution integrated with expertise search solution/Talent Management solution Collaboration tools integrated with 10% expertise search and self service systems None of the above 5% Other 0%5. The role of social and collaborative technology and HR in the Extended Enterprise:Organizations can leverage existing investments in collaborative learning, social networking and trainingtechnologies by extending these technologies to partners and customers. Such technologies can drive revenue,productivity and loyalty by:Offering training to customers so they can learn how to use the products better and find answers to questionswhich increases engagement and loyalty and brings down support costs.For partners, social networking and collaborative training mean supply chain optimization, and setting therebya company apart from its competition.In our survey, 17% of the responding Finnish companies said they are leveraging their investments in social andcollaborative technologies to their partners (customers and vendors). 63% answered no, and only 3% areplanning to. On the question of linking people and talent management with CRM/customer intimacies, 20%answered yes, 59% answered no, 10% are planning to and 11% not knowing. Fig 13. Does your company leverage existing investments in social and collaborative training and learning technologies to these enterprise partners? Do not Yes Not yet, but it is in know 17% our plans 17% 3% No 63% 10
    • APPENDIX – Survey demographics. Size of Company 10 0-10 employees 29 12 11-100 employees 101-500 employees 501-1000 employees 16 1001-5000 employees 21 over 5001 employees 14 Industry Classification Government/Public services Professional and legal services Service Company Pharmaceutical & Chemicals Manufacturing, Engineering and Construction Healthcare 3% 0% Distribution and Retail 5% 7% Transportation 14% 18% 3% Education 5% 13% Utilities, Telecoms, Oil & Gas 9% 15% Banking, Finance and Insurance 5% 1% IT 1% Media and Publishing Marketing 3% Other Respondents Age 11% 13% 18-30 31-43 28% 44-56 48% 57-70 11
    • Glossary/Definitions: 1. The term "talent management" means different things to different organizations. To some it is about the management of high-performing individuals or "the talented" whilst to others it is about how talent is managed generally. In this report, we refer to talent management as all people have talent which just should be identified and liberated 2. A “high-potential employee” is an employee who has been identified as having the potential, ability and aspiration for successive leadership positions within the company. 3. “Integrated Talent management” is a set of integrated organizational processes supported by technologies which are integrated with company legacy systems and which are designed to attract, manage, develop, motivate and retain people. 4. A “community of practice” (or “CoP”) is often defined as a group of people who share an interest or concern about a common topic, and who deepen their knowledge in this area through ongoing interaction and relationship-building within their group. While communities often come into being spontaneously, they nonetheless require nurturing if they are to become valuable to the members and businesses and to remain viable over the course of their evolution. In many organizations, Communities of Practice have become an integral part of the organization structure. These communities take on knowledge stewarding tasks that were formerly covered by more formal organizational structures. 5. A collaboration platform is a category of business software that adds broad social networking capabilities to work processes. The goal of a collaboration platform is to foster innovation by incorporating knowledge management into business processes so employees can share information and solve business problems more efficiently. 6. Social networking is a phenomenon that has recently taken over the web, allowing more connectivity and interaction between web users. Social networking-new means of communicating and sharing information and knowledge between two or more individuals on an online community whether internally in an enterprise or externally. 12