The Industry's HR Trends for 2014


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The Industry's HR Trends for 2014

  1. 1. The Industry’s HR Trends for 2014 Copyright NGA Human Resources. All rights reserved. 1
  2. 2. What challenges HR today? Stay aligned with the complex world of HR Keep up with global and local market evolutions Constantly improve HR service delivery How to define YOUR strategic HR priorities? NGA consolidated the TOP 15 industry’s most popular HR trends for 2014 and grouped them into 3 categories: 1. The Strategic Role of HR 2. HR Technology in Support of The Business 3. The Ever Evolving Global Workforce Copyright NGA Human Resources. All rights reserved. 2
  3. 3. The Strategic Role of HR 3 Copyright NGA Human Resources. All rights reserved. 15 May 2013 3
  4. 4. 1. The Ongoing Transformation Journey of the HR Function The need to redesign the HR function to match the evolving business needs and market trends still remains very important. Josh Bersin: ―The need to ‗Reskill HR‘ is one of the top five challenges around the world. Today‘s HR organizations are no longer judged by their administrative efficiency, but by their ability to acquire, develop, retain, and help manage talent.‖ Josh Bersin is the founder of Advisory Services Company Bersin & Associates SHRM: In many organizations, the HR function “is still holding onto traditional siloed processes and inefficient approaches.” SHRM is the „Society for Human Resource Management‟ Pat Greer: “As business growth becomes a top priority for organizations across the globe, HR leaders will be expected to partner with senior leadership to devise and implement strategic plans dealing with an effective growth, retention, engagement, and total compensation.” Pat Greer is Academic Director at the University of Denver Sources: • • Copyright NGA Human Resources. All rights reserved. 4
  5. 5. 2. HR needs to think as a marketer In 2014, a company’s employer value proposition and related brand become more important than ever. Josh Bersin: “An employer brand reflects a company‘s leadership style and work environment. All these things are connected, and how well they resonate will directly impact the company‘s ability to hire.” Melissa Bailey: “2014 will be the year that CHROs make a strong move from recruitment to attraction. This requires a different skillset and a new approach to recruiting; companies will need to set themselves up for long-term success, such as defining messages and communication strategies that generate potential candidates‘ interest.” Melissa Bailey is President Americas for Universum Sources: • • Copyright NGA Human Resources. All rights reserved. 5
  6. 6. 3. HR outsourcing is on the rise The downsizing of in-house transactional HR activities and the increase of HR outsourcing continues to be a hot topic. HRM Asia: “HR outsourcing is no longer reserved for big multinationals. SMEs are placing a greater importance on business HR which allows regional HR leaders to focus on critical challenges including talent retention and leadership development.” HRM Asia is an Asian Human Resources Management magazine NelsonHall: “the Global MPHRO market will continue to grow significantly in the years to come. Where MPHRO services are provided, payroll will continue to be the initial footprint.” NelsonHall is the industry‟s leading BPO analyst firm Michael Custers: “We expect to see HR outsourcing to fit into a wider Global Business Services ecosystem. This trend builds on demand for further standardization of services, globalization and continued cost efficiencies.” Michael Custers is VP Marketing at NGA Human Resources Sources: • • • Copyright NGA Human Resources. All rights reserved. 6
  7. 7. 4. Globalization – continued As the world becomes more globalized, understanding all aspects of the ‘globalization’ of functions has become essential, particularly in HR. Cameron Edmond: “As organizations and workforces become borderless, the ability to manage globally and execute locally is becoming increasingly important, creating the need to set up a borderless HR strategy.” Cameron Edmond is chief journalist for HC Online Pat Greer: “Moving into 2014, I expect ‗going global‘ to become more commonplace.” Josh Bersin: “Key skills and functions will increasingly be scarce. But unlike prior years, this is no longer a problem of hiring top people or recruiting better than the competition. Instead, companies must expand recruiting to a global level, and need to source and locate operations around the world to find the right skills.” Sources: • • • Copyright NGA Human Resources. All rights reserved. 7
  8. 8. 5. A holistic approach towards Talent Management In 2014, companies will have to think of talent management as one, holistic, integrated system to deal with future talent pressures. Josh Bersin: “Our research shows that, although many companies have talent management teams, many are still operating in silos.” Michael Custers: ―‗Talent Management as a Service‘ will become a model which helps answer the effectiveness question of many talent management processes. Also, HR service providers will build ‗Integration as a Service‘ offerings to help enable secure and solid application integration.” SAP: “Integration, consolidation, and ―suite‖ HR solutions will increase the interoperability of systems, databases, and tools in 2014.” SAP is a market and technology leader in client/server enterprise application software Sources: • • • Copyright NGA Human Resources. All rights reserved. 8
  9. 9. HR Technology in Support of The Business 9 Copyright NGA Human Resources. All rights reserved. 15 May 2013 9
  10. 10. 6. Simplified HR technology The HR technology market will continue to expand, but with a higher focus on simplification and easy user adaption. Josh Bersin: “Employees are already overwhelmed by new technologies, and as such HR tools and content need to be easy to use and deliver added value.” “The strategy for 2014 is not just to implement new technology, but to make it simple, easy to use, and widely adopted.” Sources: • • Copyright NGA Human Resources. All rights reserved. 10
  11. 11. 7. Ongoing evolution towards the Cloud The trend towards cloud HR solutions will continue to expand in 2014. Aliah D. Wright: “Storing HR data in the cloud will continue to be a trend in 2014, as companies focus on saving money and having their data available anytime, anywhere.” Aliah D. Wright is online editor/manager for SHRM Cameron Edmond: “New solutions to technology investments that offer deeper functionality will be delivered via a software-as-a-service (SAAS) model.” Michael Custers: “Software-as-a-service (SAAS) will continue to provide optimal solutions for workforce system needs.” SAP: “HR data is secure in the cloud. When it‘s done right, the cloud is just as secure as onsite, on-premise software solutions.” Sources: • • • • Copyright NGA Human Resources. All rights reserved. 11
  12. 12. 8. The use of HR analytics – and Talent analytics – will increase In 2014, the use of HR analytics to improve decision-making grow. Moreover, talent analytics become crucial to a company’s success. Pat Greer: “This shift toward data-driven decision-making is what can separate a good HR department from a great HR department.” Melissa Bailey: “Many organizations are even hiring data analysts into their HR departments.” Josh Bersin: “Companies that excel in talent analytics have improved their recruiting by 2X, leadership pipeline by 3X, and financial performance as well.” Sources: • • • Copyright NGA Human Resources. All rights reserved. 12
  13. 13. 9. The mobile revolution – is HR on-board? Trends such as ‘Bring Your Own Device’ (BYOD) and the creation of mobile HR applications have an important impact on HR departments. Nicholas Roi: “In 2014, the ‗bring your own device‘ (BYOD) trend will further increase in popularity, the direct result being that more companies will begin developing and formalizing BYOD strategies.” Nicholas Roi is Managing Director of SilkRoad Emma Snider: “HR is becoming more involved in the creation of BYOD policies, to regulate employee access to enterprise data & systems and to minimize security risks.” Emma Snider is Associate Site and News Editor of Cameron Edmond: “Mobile applications are expected to play a more crucial role in 2014.” Aliah D. Wright: “PeopleMatter predicts more companies will develop apps that help schedule and record time and attendance; aid employee engagement; create digital to-do lists and productivity trackers; and complete a range of other tasks.” Sources: • • • • Copyright NGA Human Resources. All rights reserved. 13
  14. 14. 10. Time to create ‘social’ HR solutions The importance of social media channels and tools for HR processes will only increase. In addition, the integration of these tools becomes a necessity. SAP: “Integrated social media will result in better communication and collaboration.” Josh Bersin: “For many years we have been dealing with social software tools in HR as ―add-ons‖ and new ways of doing old things. But now social systems are able to do ‗new things‘ — open employee communications, candidate relationship management, creating talent networks, delivering social learning, and more. In 2014, HR has to take ‗social‘ as the ‗standard‘ in every HR solution it delivers.” Sources: • • Copyright NGA Human Resources. All rights reserved. 14
  15. 15. The Ever Evolving Global Workforce 15 Copyright NGA Human Resources. All rights reserved. 15 May 2013 15
  16. 16. 11. Focus on employee retention – the ongoing war for talent In 2014, the need for HR to focus on employee retention will become a top priority. Josh Bersin: “During the past five years, companies have reduced costs, restructured, rationalized spending, and pushed people to work harder than ever. But this year the power will shift: high-performing employees will start to exert control.” “Top people with key skills will be in short supply. In addition, people want work which is meaningful, rewarding, and enjoyable. Top performers will seek out career growth. Midlevel staff will strive for leadership development. And HR will have to compete, adapt, and innovate to stay ahead.” Source: • Copyright NGA Human Resources. All rights reserved. 16
  17. 17. 12. Redefining employee engagement With employee retention becoming a top priority for organizations, HR needs to redefine staff engagement and focus on employee recognition. Josh Bersin: “HR will have to look at employee engagement from a holistic standpoint. A company‘s work environment, management practices, benefits and recognition programs, career development, and corporate mission all contribute to engagement.” Pat Greer: “Recognition is the first step towards employee engagement, beginning at the start of an employee‘s career. Employee engagement consists of meaningful work, support, tools, and wellbeing in the job.” Sources: • • Copyright NGA Human Resources. All rights reserved. 17
  18. 18. 13. Millennials are entering the job market As a new generation is entering the job market, it is important for HR to understand this generation’s specific characteristics and needs. Pat Greer: “Besides their penchant for technology, millennial employees are more global in their thinking, more invested in relationship building, and more willing to be flexible within the workplace. Knowing these values, plus the many other traits held by millennials such as having passion, believing in accountability, and being achievement driven, will help HR professionals as they seek out productive employees to fill new roles.” Melissa Bailey: “HR needs to adapt its way of working to these needs, and focus on offering a more personal touch to this generation of candidates and employees. Employers should consider how technology can help facilitate, rather than replace, a personal interaction.” Sources: • • Copyright NGA Human Resources. All rights reserved. 18
  19. 19. 14. The rise of flexible working environments Flexible working environments and work schedules are increasingly impacting employees, managers and HR departments. Nicholas Roi: “While some companies are wary of introducing flexible working in their business, most now acknowledge its benefits – including a happier and more productive workforce”. SAP: “Virtualization and globalization are increasingly transforming the workplace. Remote and flexible working arrangements will continue to proliferate, expanding outside country boundaries and forcing employers to be more innovative in how they use collaboration tools.” Sources: • • Copyright NGA Human Resources. All rights reserved. 19
  20. 20. 15. Continuous learning and development Annual employee development programs will be replaced by more continuous actions aimed at developing, engaging and motivating employees. Josh Bersin: “Companies will aggressively redesign their appraisal and evaluation programs to focus on coaching, development, continuous goal alignment, and recognition. The oldfashioned performance review will slowly be replaced by a focus on engaging people and helping them perform at extraordinary levels.” “Companies that focus on continuous learning in 2014 will attract the best and build for the future. The skills gaps in the workplace are greater than ever, and organizations must build continuous learning solutions to engage current people and attract professionals to their organization.” Jeanne Meister: “Companies are evolving towards an on-going dialogue rather than a once a year review. Some companies are even going one-step further to create a new evaluation process focusing on an informal system of real-time feedback, without any forms to fill out or submit to HR.” Jeanne Meister is Contributor at Forbes Sources: • • • Copyright NGA Human Resources. All rights reserved. 20
  21. 21. Conclusion Anita Lettink’s vision for HR in 2014: ―In 2014 your HR will be mobile, social and in the cloud, as big data will demonstrate to the business that you must recruit and develop talent. And while you‘re introducing new technology, don‘t forget to reskill your HR department.‖ Source: • Copyright NGA Human Resources. All rights reserved. 21
  22. 22. Download our latest Position Paper Visit our online Resources Center and download the Position Paper “The Evolution of HR Outsourcing: Trends for 2014” Click below to read how topics such as the move towards cloud & SaaS HR technologies, big data, Talent Management as a Service, automation, globalization and standardization will gain importance in the years to come. Copyright NGA Human Resources. All rights reserved. 22
  23. 23. Thank You. 23
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