Ten Disruptions in HR Technology for 2015: Ignore At Your Peril
HR Technology 2015
Ignore Them At Your Peril
Principal, Deloitte Consulting LLP
Who We Are
- Global provider of leading practices, trends, and benchmarking research in
talent management, learning, and strategic HR.
- 60% of the Fortune 100 are Bersin by Deloitte research members, with
more than 19.5 million employees managed by HR teams using Bersin
Broad Research Practices
• Human Resources
• Leadership Development
• Learning & Development
• Talent Acquisition
• Talent Management
- WhatWorks® Membership: Research, Tools, Education, Benchmarking
- IMPACT®: The industry’s premiere conference on the Business of Talent
- Advisory Services & Consulting
Zero to $1 Billion Valuation in 1-2 Years – What can we learn?
Slack, Dropbox, Snapchat
“Free” file sharing and “Free”
collaboration software that is
very easy to use
- Over 200 million users now
- 260,000 new users per month
No training required
Free, mobile enabled from day 1
Elegant simple user interface
Both hit over $1 Billion in
valuation in first two years
Top Global Talent Priorities
% Rated “Urgent” or “Important”
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
The Overwhelmed Employee
Diversity & Inclusion
Fix Performance Management
Integrate HR Technology
Globalize Talent Mgt.
Talent & HR Analytics
Reinvent Learning & Devt.
Retention & Engagement
Gaps in Leadership Pipeline
Deloitte Global Human
All These Areas
How the Talent World has Changed
“Our candidates today are not
looking for a career…”
“They’re looking for an
Engagement Still Startlingly Low
Worldwide only 13% of employees are
“highly engaged” in their jobs.
63% “disengaged” and 24% “actively
(Australia and NZ are twice as
“engaged” as the rest of the world!)
with 25% “highly engaged”
China, Middle East, Africa, India are the
lowest at 6-8% fully engaged
Only 54% of employees
would recommend company
to a friend
Glassdoor, Bersin Analysis, October, 2014
And Even Worse
The “Haves” and “Have Nots” In Engagement
Distribution of Glassdoor “Recommend My Company” Averages
New Systems of
15 Year Evolution of HR Systems
2 0 0 0 2 0 1 5P R O G R E S S I O N O V E R T I M E
Integrated Talent Mgmt
HRMS + Talent +
Apps for HR
New Talent Apps
Growth in HR Technology Markets
People Management Software is One of the Biggest ERP Segments
Market Category Market Size (2014) CAGR 5 Years
Core HRMS $6.2 Billion 7-9%
Recruiting $2.6 Billion 8-10%
Learning Management $2.4 Billion 10-12%
Performance / Compensation $1.4 Billion 8-10%
Workforce Management $1.5 Billion 4-6%
$1.0 Billion 10-15%
IDC Market Size 2014,
Two Major Marketplace Issues
1. Too Many HR Systems
33% of companies have 10+ HR systems
47% will replace to integrate and consolidate vendors
2. Systems Aging Rapidly
HRIS systems 47% are 7+ years old
Time & Attendance 40% are 7+ years old
Performance Mgt 19% are 7+ years old
Learning Management 17% are 7+ Years old
Explosion in Mobile Access
1.5 Million Laptop/Desktop Users
1.6 Billion Smartphone Users
5.2 Billion Mobile Phone Users
Mobile now 25% of web traffic
60% of time on internet is
through Mobile devices
Mobile Apps Now Generate More
Internet Traffic than PC Apps
Comscore 2014 Mobile Apps Report
Look at Most Popular Mobile Apps
Comscore 2014 Mobile Apps Report
A Whole New Paradigm for Design
Transparency: Standard & Expected
Tinypulse Engagement Survey 2013, 2014 200,000+ Respondents
The “Yelp” of HR
The Overwhelmed Employee
The average mobile
phone user checks
their device 150
times a day.
40% of the US
believes it is
succeed at work
and have a
The “average” US
worker works 47
hours and 49%
work 50 hours or
more per week,
with 20% at 60+
hours per week
The “average” US
spends 25% of
their day reading
More than 80% of
all companies rate
or “complex” for
Fewer than 16% of
companies have a
“simplify work” or
deal with stress.
Sources: Deloitte Human Capital Trends 2014 and 2015
1. Shift from System of Record to
System of Engagement
67% of buyers now select a system based on its
ease of use, far greater than the “feature set”
Simplicity Trumps Functionality
Difficult to Learn
Easy to Use
“Harmonization of HR processes
before implementation of systems was
one of the biggest drivers of successful
implementations.” Source: Deploying HCM Technologies: Making Change Work,
Katherine Jones, Bersin by Deloitte, 2014.
Mobile: A System of Engagement
Employees expect mobile access for:
Source: Global Human Capital Trends
What Our Research Discovered
Bersin by Deloitte Talent Analytics Maturity Model®
Level 4: Predictive Analytics
Development of predictive models, scenario planning
Risk analysis and mitigation, integration with strategic planning
Level 3: Advanced Analytics
Segmentation, statistical analysis, development of “people models”;
Analysis of dimensions to understand cause and delivery of actionable solutions
Level 2: Proactive – Advanced Reporting
Operational reporting for benchmarking and decision making
Multi-dimensional analysis and dashboards
Level 1: Reactive – Operational Reporting
Ad-Hoc Operational Reporting
Reactive to business demands, data in isolation and difficult to analyze
Analytics Drives Huge ROI
Today, 14% of HR ORGANIZATIONS believe they “regularly use data
to make talent and HR strategy decisions”…
…and these organizations, are…
as likely to
as likely to
the S&P 500
over the last
as likely to
4. Science of Leadership &
Assessment Leverages Big Data
Big Data meets Assessment
How Do We Select the “Right” People?
2/3 of hiring done without any significant assessment
Background checking: 79%
Managerial interviews: 64%
Interview training: 47%
Behavioral assessments: 34%
Reference calls: 32%
Skills-based assessments: 25%
% of Organizations Which Regularly Use Following Assessment Practices
Bersin & Associates High-Impact Talent Acquisition
Study, Fall 2012, 158 organizations responded
The most important
criteria of success
is fit, which is
driven by clear
role and culture
5. Sensing and the Quantified
Less than 50% of the
The Engagement Institute
know what to do with
Data is slow to collect, too
broad, and not local
Technology changes the
Engagement Surveys Shift to Continuous
Employee Feedback and Sentiment
Continuous Feedback and
Once per year Every month, week or day
Standard questions Widely varied questions
Some but little open feedback Any comment considered
but… “voted” up and down
Internal use only May be posted to public
Survey based Mobile app based
Questions based on large
Questions based on modern
6. Network Recruiting Platforms
Replace Traditional Recruitment
The top three drivers of
1. Building strong
2. Cultivating pools of
long before hire
3. Driving employment
Meet or exceed
Meet or exceed
Source: High-Impact Talent Acquisition®, Bersin by Deloitte, 2014
Three Key Drivers of Impact
Reactive Tactical Recruiting
Recruiters are “order takers;” posting of positions on an as-needed basis. Minimal hiring
compliance standards met; no real processes defined. No strategic focus on candidate
Standardized Operational Recruiting
Effective assessment of candidates against job requirements. Begin to establish strong
relationships with hiring managers. Some link to workforce planning. Standard interview
Integrated Talent Acquisition
Strong employment brand. Active pipeline of candidates. Robust TA programs
(e.g., diversity, alumni, employee referral). Investment in new TA products and
Optimized Talent Acquisition
Strategic enabler of the business. Successful social media campaign.
Recruiter training builds strategic capabilities. Ability to predict external forces
& remain agile.
Talent Acquisition Maturity ModelBersinbyDeloitte
Source: High-Impact Talent Acquisition®, Bersin by Deloitte, 2014
Traditional Recruiting Network Recruiting
Sourcing and engaging both active and passive candidates
through employees’ and company networks to build talent
pools for current and future hiring needs
Sourcing active candidates through recruiters or 3rd party
agencies to fill current hiring needs
How Recruiting Has Changed
From “Active” to “Network Recruiting”
7. Radical changes to performance
management, goals, and talent
Only 8% of organizations
believe their performance
management process is
worth the time they’re
putting into it.
The evolution of performance management requires a fundamental shift in thinking driven by emerging
Ongoing, Continuous: Annual and semi-annual review supplemented with
more frequent informal manager – employee check-ins and other simple
Flexible, Agile. Simple: Light touch, low impact processes to gather
performance data. Non-value add administrative activities are eliminated
Data Driven: Performance data collected from multiple sources
throughout the year and analyzed to provide balanced performance
Local Real–Time: Real time feedback and recognition provided
through use of frequent check-in and social media tools to improve
performance and drive engagement
Development Focused: Shift towards long term employee development vs.
Strengths: Individual strengths identified and leveraged to maximize
employee potential and build high performing teams
Summary of Our Research
But Keep it Simple
Major Trends Will Disrupt Incumbents
Traditional top-down goal management is going away
Agile, transparent “OKR” models will replace in most cultures
Performance Management is directly linked to engagement and
retention and is causing pain
Performance Management process has been too tightly linked to
other talent processes in most organizations
Recognition, rewards, coaching, and developmental feedback will
become integrated parts of the process
Tools are far too complex, time consuming, and administrative for
today’s workforce and speed
Pulse surveys, supervisor coaching, and feedback must become part
of the process
Back Office, Operational, Contingent Employees
First Line Management
Traditional View Talent Mobility
Functional Specialists / Front-Line Employees
Back Office, Operational, Contingent Employees
First Line Management
Functional Specialists / Front-Line Employees
Entire Organization Must Contribute to
World-Class Career Management
• Maintain Profiles
• Create Internal
• Share Expertise
• Define Job
• Provide Coaching
• Assess Potential
• Provide Candid
• Share Talent
• Provides Tools &
• Develop Career
• Offer Career
• Integrate with
• Infrastructure –
• Create Culture of
8. LMS Market Transformed and
The 21st century
employee wants easy-
Yet 63% of companies
say they are “weak” in
providing mobile and
social learning as
and only 6% are
“expert” at advanced
media for learning.
The LMS Market Is Being Reinvented
The 1990s-2000s LMS
Enrollment and Scheduling
Security and roles
The Modern LMS
“Old LMS” Feature Set
+ Deeper Analytics
“New” virtual classroom
Highly Flexible UI
Talent Management Features
THAN EVER –
24x7LEARNING BANKERS ACADEMY CORPEDIA LMS EMENEO IKONAMI LTD LATITUDE LEARNING MINDONSITE PRODUCTIVITY4YOU STAM INTERACTIVE VELOCEDGE
360training.com BIT.MEDIA COURSE PEER ELMSTONE SYSTEMS LTD IMC LAUREN INNOVATIONS MIRAPOLIS PROFISCIENCE PARTNERS STEAG VENU
4CSoft BLACKBOARD COURSE SOURCE EMTRAIN IMPACT LEARNING SYSTEM LEANFORWARD MODALLOGIC PROLEARNING SOLUTIONS STARFIELD VERTICAL ALLIANCE GROUP
CourseAvenue, Inc. ENGRADE IN2ITIVE LEARN SOMETHING (Xerox) MOODLEROOMS PROMETEUS STONEHOUSE MEDIA VERZTEC
ABSC BLOOMFIRE COURSEWEBS EPATH LEARNING INCHONE LEARNAHOLIC MYKNOWLEDGEMAP PROMETHEUS DEVELOPMENT STRATBEANS VI DESKTOP
ABSORB LMS BLUEGEM SOFTWARE CREATIVELMS EPSILEN INDECOMM GLOBAL SERVICES LEARNCAST MYLEARNINGPOINT PROSPERO LEARNING SOLUTIONS STUDYWIZ VIA LEARNING
ACCESS IPD BLUEVOLT
EMPOWER TRAINING SOLUTIONS INDUSTRIAL TRAINING ZONE LEARNDASH MYNETWORK PTC SUCCESS FACTORS VIAECOLE
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ACCENTURE BRAINSHARK CU Training ENVISAGE TECHNOLOGIES INFOR: Certpoint LEARNKEY M-LEARN ON THE GO Q2LEARNING SUMTOTAL VILLAGE88
ACCORD BRIDGE PEOPLE & TECHNOLOGY CUNA ePALS INFORMASYSTEMS
LEARNING & PERFORMANCE
NAVEX QPHARMA SWANK LMS VIRTUAL COLLEGE
ACF CONSULTANTS BRIGHTWAVE CYBERWISDOM EPIC INFORMETICA LEARNING ACADEMY SYSTEMS NEOVATION QUBE LEARNING SYBERWORKS VITALECT
CYGNET INFOTECH PVT LTD EPICOR Infosys LEARNING EVOLUTION NETCERTIFICATION QUINTETTO OLS Syfadis Group VIVA LEARNING
ACTIVATE SYSTEMS BUSINESS TRAINING LIBRARY DANISH PROBE A/S ESCHOOLS INSTRUCTURE LEARNING FOX NETDIMENSIONS RAINMAKER SYSTEMS SYNTRIO VIVID LEARNING SYSTEMS
ADMINISTRATE BVS DAULSOFT RELIAS LEARNING INGENIA LEARNING LIBRARY NETLOGIC RAPID INTAKE T FACTOR VOCAM
ADOBE CAPABILITY LMS DELFI SOFTWARE ESSENTIAL SKILLZ Inquestra LEARNING MANAGEMENT.COM NETOP Raytheon TACTIC SOFTWARE WBT Systems
ACP COMPUTER TRAINING
CAE DELL ETHOSCE INREACH
NETSMART UNIVERSITY RCAMPUS Tactis Software WBT.IT
ADP CALLSOURCE DELTAK (Wiley) eTrainCenter Inspired E-Learning LEARNING SEAT NETEX READYGO Talent2 WEB COURSEWORKS
ADDRENNA CAMPUSCRUISER DELTAL ETRIOX INSTANCY LEARNING SPAN NEUSOFT REALABILITY TalentSoft WEB SYNERGIES
ADURO CAPITA IT SERVICES DESIRE2LEARN INC EUPHORIA INTEGRITY ELEARNING
NEWSGATOR REALPAGE Tata Interactive LMS WEB TRAINING
ADVANCED NFP CAPSULE COMPANY DESKERA EVOLUSENT INTELEX LEARNING.NET NEXIO REDTRAY TECHNOMEDIA WEBDUCATE
AEROSTUDIES CARDNO DICAMPUS EVOLVE E-LEARNING SOLUTIONS Intellum LEARNINGZEN NEXLEARN REFINED TRAINING TEDS WEBSE
AFFERO CARE2LEARN DIGITAL CHALK E-WORK.COM Interactyx LEARNIN3.com NORMAL MODES REFLECTION SOFTWARE TEKEGE SOLUTIONS Websoft
Agileview CAREER MANTRA DIGITAL IGNITE eXact Learning Solutions INTRALEARN LEARNOPIA NP TRAINING WORKS RELIANT LIVE TELEMATICA WESTNET LEARNING
AGILIX CBT PLANET DIGITEC INTERACTIVE EXCELSOFT INTRAFINITY LEARNBIT NUVEDA REMOTE LEARNER TELETECH Wisetail
AJ SQUARE CECITY DISCOVERY CAMPUS EXPERTUS INTERNEXIA LEARNOHOLIC NVOLVE
Thomson Reuters (formerly
Akuter CEGOS GROUP DOCEBO FIRMWATER INTUITION LEARNSHARE OAKTREE SYSTEMS
THE CAPSULE COMPANY WIZDOM LMS
ALCHEMY SYSTEMS CENGAGE LEARNING INC DOCNITO FLEXLS INTUITEXT LEARNSOFT ODIJOO RESOURCE BRIDGE THE KELLY COMPANIES WOLTERS KLUWER
ALLANTRA CENTRELEARN DOMINKNOW LEARNING FLEXTRAINING INTUTO LEARNUPON OILENNIUM RIGHT REASON TECHNOLOGIES THE LEARNING PARTNERSHIP WORLD LEARN
CERIDIAN DOKEOS FROG IPRESENTONLINE LEARN-WISE OMNIPLEX RISC THE WORKING MANAGER XCEED LEARNING
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IRIS NFP Solutions LIGHTSPEED SYSTEMS OMNITRACK+ RUSSELL ASSOCIATES THE QUALITY GROUP XERCEO
AMBOW CEU360 DUAL CODE FRONTLINE DATA SOLUTIONS IQITY LIKNO LMS ONPOINT DIGITAL RUSTICI THINKINGCAP Xerox (ACS)
AMVONET Cezanne DuPont Sustainable Solutions FTS SOLUTIONS ISOPH LINAC Onsoft Computer Systems RXSCHOOL THREE LEARNING XSTREAMSOFTWARE
American Research Institute Chamilo D'VINCI INTERACTIVE FULLPARTNER ISOTRAIN LIQWID KRYSTAL ONTUITIVE SABA TIER 1 PERFORMANCE XTRACTOR
ANCILE SOLUTIONS CHALKABLE DYNDEVICE FUTURSKILL ISPRING LITESPEED OPANGO SAFFRON INTERATIVE TIME4YOU XYLEME
ANEMA CINET E3 LEARNING GCUBE ITC LEARNING LITMOS OPENELMS SAKAI TORTAL YARDSTICK SOFTWARE
ANEWSPRING CIRRUS E-LEARNING EADBOX GEENIUS ITRIVIO LMS GLOBAL OPENTEC SALMAT Totara LMS ZAPOINT
APPOINTLINK CLARITY EASY AUTHORING GEMINI ITS LEARNING LOGICBAY OpenText (OPERITEL) SAP TPC TRAINING SYSTEMS ZENLER
APPSTRONIC CLASSROOM MANAGER EASY COURSE CREATOR Generation21
LOMALEARN ONLINE OPTIONC SAVV-E Traincaster ZEUS LEARNING
APROPOS CLICKSAFETY ECOLOGIC SYSTEMS GeoMetrix Data Systems Inc. JENZABAR LOUDCLOUD SYSTEMS Oracle EBS SCHOLARIS TRACORP ZIIVA
APTEK CM LUMINOSITY ECOM SCOTLAND Global Knowledge JONES & BARTLETT LynxOnline Oracle Fusion SCHOLAR LMS TRAINING EVIDENCE SYSTEMS Zoologic
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AQT SOLUTIONS Cognitive Advisors Edoceo GROWTH ENGINEERING KENEXA (IBM) MARTEC INTERNATIONAL PALAMORE SEMINAR E-LEARNING SYSTEM Training-Orchestra
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ASPIRE GOGENTYS EDUBRITE GUIWEB ONLINE SOLUTIONS KMC OnDemand MARSHAL CAVENDISH ONLINE PEAK SKILLS LEARNING SILKROAD THREE RIVERS SYSTEMS
ASSERION COLLINS LEARNING EDUCATE GLOBAL GYRUS SYSTEMS KMSI MASTER CONTROL PEARSON LEARNING SOLUTIONS SIMBIONIX TRIVANTIS
ASTRA COLONI EDUMATE HAIKU LEARNING KNOWBASE MASTERY LMS PELESYS SIMPLYDIGI TRUE SOLUTION
ATHAND SOLUTIONS COMMELIUS EDVANCE 360 HALOGEN KNOWLAGENT MAXIT PEOPLEFLUENT SIMPLYLEARN TTG SYSTEMS
ATHENA COMMON GOAL SYSTEMS eFront Learning HCCS KNOWLEDGE ANYWHERE MEDIA DEFINED PEOPLEMATTER SIMULWARE TTN LEARNING
Atrixware COMPETENTUM USA LTD. ELCOM HealthcareSource KNOWLEDGE FACTOR MEDIAPRO PERCOLATE LMS SITEL TUTOR PRO
ELEAP SOFTWARE HEALTHSTREAM
Aunwesha Knowledge Technologies
COMPUTER AIDED ELEARNING
HR Smart KNOWLEDGE POOL MEDIOPIA PILOT GROUP SKILLPAD Ultimate Software
AUTONOMY (HP) Computer Generated Solutions E-LEARNING IDEA SOLUTIONS HUGHES KNOWLEDGE PRESENTER MEDWORXX PING PONG SKILLSOFT ULTRANET
Avilar CONNECT LEARNING E-LEARNING WMB HURIX SYSTEMS KNOVIVA MELON Technologies
AXG TECNONEXO CONVENIENCE LEARNING ELEARNING ZOOM HYPERMETHOD IBS KRATOS MERIDIAN KSI PLATTE CANYON SMARTPROS UNISERVITY
BAI CONVERGENCE TRAINING ELOGIC LEARNING iCOHERE KRAWLER METALEARN SERVICES PORTALCMS SOLO LEARNING
UPSIDE LEARNING SOLUTIONS PVT
BANCINTRANETS CORE LEARNING SERVICES ELSEVIER MC STRATEGIES INC. ICS LEARNING GROUP LAMPA MICROPOWER POWERFUL LMS SOLIDSTATE LEARNING V CAMPUS
BANKERSEDGE CORNERSTONE ONDEMAND ELUCIDO IC-UC LEARNING Lanteria MINDFLASH PRESENT ELEARNING SYSTEMS SSE VELSOFT
Clear Consolidation at the Top
Massive Growth in Middle
Discussion Boards Social
After Action Reviews
Spend time and money differently (think beyond courses and LMSs).
- 1,700,000 live classes
- 250,000 elearning courses
- 318,000 books
- 187,000 articles
- 344,000 videos
- 1,200+ providers
Brand New L&D methods,
infrastructure and tools
Source: Degreed, 12/2014
The Four E’s Take Over Learning
Education Experiences Exposure Environment
- More mature
via ILT and
via coaching &
L&D teams are
likely to use
Source: Bersin by Deloitte, 2013 and 2014 Corporate Learning Factbooks
What we have learned: An Integrated Approach is Needed
The Simply Irresistible Organization®
Autonomy Agile Goal Setting (ie.
Mission and purpose
Selection to Fit Coaching & feedback Recognition rich
Career growth in
Investment in people,
Small Teams Leadership
Open flexible work
Self and formal
Time for Slack Modernized
High impact learning
Worldwide, only 13 percent of employees across 142 countries are emotionally invested in their jobs. Gallup also found that those who are actively disengaged – that is those who are negative and potentially hostile to their employers, outnumber engaged employees at a rate of 2:1.
Gallup believes this is costing businesses more than $800 billion in lost productivity and hiring costs around the world.
Think about this: who owns the whole “retention and engagement” problem in your organization? How well do you really know what’s on people’s minds on a day to day basis. Do you measure retention regularly and study why it varies from place to place?
While around 60% of businesses deploy some kind of engagement survey, our research shows that today’s process for measuring and managing engagement has become obsolete.
Employee engagement is far more complex than it seems – and the old adage “people leave managers, not organizations” is definitely no longer true. New research shows that engagement is much more highly linked to ability to grow and top leadership than management: in other words good managers won’t get you to stay, but bad managers may make you want to leave.
Companies like Adobe and JP Morgan Chase, who I spoke with in the last few weeks, told me that they are now taking a holistic look at engagement – considering the entire work environment, culture, supervisory skills, leadership, as well as the work itself. We believe this may be the the secret: over the next few years you will have to rethink your engagement and retention strategy in a highly integrated way.
And technology is here to help.
New social networking tools, pulse engagement tools, and analytics tools are now able to “predict” retention using Big Data. Some even monitor your employees’ changes to their social networking sites.
Karen and I will be leading a panel of analytics experts to help you understand how world class companies manage data and we’re very lucky to have Hilary Mason, a real data scientist, talk with us on Wednesday afternoon.
(c) Bersin and Associates
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But what about this issue of the “overwhelmed employee”? Where does that fit into the calculus of building the “irresistible organization”?
First, it’s a big problem. Research shows that the average cell phone user checks his mobile device 150 times a day. Neurologist Larry Rosen has found that today’s office worker can only focus for six minutes on a single task, and then opens a window to check Facebook or do something else. We have become physically and emotionally addicted to the buzz, beep, or flash that comes from our devices.
Julian Birkenshaw and Jordan Cohen noted in the Harvard Business Review that knowledge workers spend 41% of their time on discretionary activities that could be handled by others? Why? Because it’s easier to “complete” these little tasks than it is to ponder and struggle with more complex and difficult projects at work. They found that by changing work habits and reducing time-wasting meetings, people could save 15% of their time in a typical insurance company.
The bigger issue, of course, is that society is now wired this way. Twitter’s explosive IPO says it all: if you can squeeze your message into 140 characters and blast it out by the millisecond, people will get addicted. Have you noticed how TV shows move faster than ever? They do. The broadcasters now change scenes 35% more frequently than they did only four years ago.
This problem is here to stay, and our job is to figure out what to do about it. Mindfulness has become a fast-growing industry, moving beyond the best-seller list and newsstand.
Pfizer recently told me they are putting “mindfulness” into their leadership curriculum, and “self-awareness” came up as one of the most important competencies in new leadership programs.
Google and Patagonia offer yoga and meditation at work. Huffington Post has nap rooms. Arianna Huffington’s new website The Third Metric, which focuses on work-life balance, is the fastest growing part of her online presence.
Approximately 50% of HR professionals feel that PM processes do not help managers make strategic operational decisions1
45% of human resources leaders don’t think annual performance reviews are an accurate appraisal for employees’ work2
Only 8% feel their perf managemet effort drives significant value
And now poor HR has to catch up. The book Moneyball certainly educated us that data can make a big difference in selection, and people like Malcolm Gladwell and many others have popularized the idea of using data to make more scientific decisions about people.
I seem to read an article in the New York Times every week about this topic now.
We just completed two years of research in this area and found that yes, a small number of HR organizations (14% in fact) are well ahead of the curve and have effectively “datafied” their operation.
These unique companies are seeing tremendous improvements in business performance: they are two times better at recruiting, twice as capable of building the right leadership pipeline, their HR organizations are typically 3X more efficient, and their stock prices rose 30% higher than the average of the S&P 500 over the last three years.
The question one has to ask is who are these companies and how did they get here?
One of the most important things HR does in the company is to help in hiring the right people. This includes employment brand, talent networking, scientific assessment, mobile recruiting tools, manager and recruiter training, and analytics.
One specific topic of discussion is the localization of talent acquisition. We are in a war for talent around the world: the war for the best people.
Today’s workforce is more diverse than ever – in age, expectations, location and mobility. Our research shows that 70% of organizations are still recruiting baby boomers, while 30% will still consider hiring a candidate who has inappropriate postings on social media. Further, our new High Impact HR research shows that organizations with mixed age work forces perform better than those that are highly skewed toward younger or older workers.
Nearly every organization we work with is looking for ways to grow. Whether this is geographical or line of business expansion, HR professionals are striving to develop workforces that can manage through ambiguity and rapid change.
This is why
AT&T chose Bersin to redesign its performance management system, resulting in a 15% improvement in productivity in the first two years
When Pfizer merged with Wyatt, they looked to Bersin to effectively consolidate two training groups into one organization, 2/3 the size of the previous team. This group cut training costs by 32% while creating innovative, high performing learning programs
JetBlue University transformed their training team from request managers to performance consultants by using Bersin’s research to create a business alignment tool that ensures that the University’s resources are spent on strategically significant programs.
Developing relationships with hiring managers is the most influential driver of TA performance outcomes, as it is 4 times more influential than other drivers. A staggering 97% of Level 4 organizations report that they have strong relationships with hiring managers. Hiring managers and recruiters are on the front line shepherding tomorrow’s talent through the door. Hiring managers and recruiters must be in lock-step, delivering a positive candidate experience, true and authentic employment brand messaging and timely talent solutions.
Not to be overlooked, developing candidate pools is the second most influential driver of TA performance outcomes times at 2x more influential than other drivers. 91% of Level 4 organizations report that they successfully develop candidate pools. Building relationships with prospective candidates is an integral part of the recruiter function. When done well, recruiters can deliver talent on demand. With the presence of online Talent Communities, as well as the more traditional pools of talent, recruiters have a lot of key constituents to engage. Volume concerns and eager hiring managers are a constant in the world of Talent Acquisition. Finding the balance between engaging, communicating, and sustaining a positive employer brand image is vital to recruiter success.
You should have been given a handout that looks like this when you entered the room. If you don’t have one for some reason, please raise your hand and we’ll make sure you get one.
If you’ve seen our maturity models before, what I’m about to show you will look familiar as all of our maturity models are organized the same way. Let’s start at the beginning – or at Level 1, at the lowest level of maturity.
At Level 1, recruiting is a tactical activity, often done locally, and is viewed as a cost of doing business. Recruiters are basically order takers where the hiring manager submits a job requisition to the recruiter, the recruiter screens candidates, and hiring manager interviews candidates. Hiring processes are not typically well defined, minimal hiring standards are adhered to and there is no strategic focus on candidate experience.
At Level 2, recruiting has become standardized and is a corporate-wide support function for hiring managers to fill open positions. Organizations begin to define their TA technology strategy, typically starting with an applicant tracking system. Moreover, a strategy is being established to cultivate existing candidates and build long-term relationships. The interview strategy and rating systems are developed and there is some standardization of processes.
At Level 3, talent acquisition is considered an essential partner in attracting and selecting the right talent for the organization. Executive buy-in and sponsorship contribute to TA success. Recruiters partner with hiring managers to establish a recruitment strategy and timeline. Demand and supply forecasting are used to make proactive decisions and close anticipated gaps. Employment brand and employee value proposition resonate with current employees, often resulting in employer of choice status. TA measurement becomes standardized with key performance indicators defined for critical metrics. A link to succession and performance management is formed, providing TA with an understanding of the workforce and existing talent capabilities, while facilitating internal talent mobility.
At Level 4 – highest maturity, talent acquisition is seen as a strategic enabler of the business and a necessary investment to drive competitive advantage. The attraction and hiring of top talent is an essential part of the culture. A well-developed governance structure is in place and charts a strategic direction for the acquisition of talent within the organization. Recruiters act as true consultants to hiring managers. They understand trends in the labor market, use various sourcing tools to build talent pipelines, and are well-versed in engaging and converting high-caliber candidates. Integrated workforce plan is evaluated annually, and sophisticated predictive modeling is used in scenario-based analysis
Based on our study of 297 companies, we found that 35% of companies were at the lower levels of maturity (Levels 1 and 2), the majority (52%) of companies were at Level 3 TA maturity, and 13% at the highest level or Level 4. We were happily surprised to see few organizations at Level 1 as it shows that organizations have already moved to standardize their TA functions at Level 2. It’s also important to note that some organizations may be between levels, possessing some characteristics of one level and also exhibiting many of the improved behaviors of the next level up.
Our research showed that there were key dimensions and factors to consider when evaluating maturity. We’re going to examine each in detail to help tie this all together.
If you don’t believe me on this topic, let me introduce you to the science.
An Australian neuro scientist named David Rock has conducted research showing that we humans have different regions in our brain. These include the front part (prefrontal cortex), which helps us with learning, creativity, problem-solving, organization, and other important skills. And a deeper region called the limbic system, where the amygdala resides. The amygdala is the “survival” part of the brain.”
Dr. Rock’s team discovered that when we as humans are threatened, our cognitive processing immediately shifts from the front to the back. In other words, we are “survival” machines. So if you’re at work, happily working away to solve a problem, work in a team, or learn something new and you suddenly feel threatened, all your productivity goes away.
In fact, not only do you become defensive, but you start to make mistakes, avoid risks, communicate poorly, and generally worry and become unproductive.
What causes this shift in processing from the front to the back of your brain? A loss of status, certainty, autonomy, relatedness, or fairness. What causes these things? Your boss criticizes you. You don’t get promoted. You hear about a reorg which wasn’t announced. Your boss micro-manages you. You aren’t invited to a meeting. Someone else gets promoted and you don’t. In fact, most of the things that happen in traditional performance reviews create this effect.
This is such a strong effect that companies can measure its result. Steven Rice, the CHRO of Juniper, actually looked at Juniper’s business performance right after their twice per year performance reviews and saw a measureable dip. He concluded that their entire performance management process was doing exactly the wrong thing – forcing their entire company to shift from “front brain thinking” to “rear brain thinking” twice a year every year. And that is why they totally revamped their performance management process. Which is now one of the biggest topics in business.
Kelly Services offers outsourcing and consulting services, including recruitment, HR management and vendor management to companies worldwide. The organization, which had $5.5 billion in revenue in 2012, has about 1,100 permanent employees at its headquarters in Troy, Michigan, and about 6,800 more in branch offices worldwide. The company provides temporary employment to about 560,000 people each year.
In 2008, the HR leadership team at Kelly decided it was time to take a fresh approach to performance management. There was a general sense that the old way was not working, but it was unclear exactly what lay at the root of the problem.
Kelly assembled a team to set a new course – purposely without a vision for what that course would look like. Open-mindedness and candor were important elements of what participants recall as a deeply introspective process. A key element of the process was a focus on Kelly’s fundamental beliefs and assumptions about its people. Specifically, Kelly looked at how policies and procedures can either communicate or undermine the core beliefs and expectations that leaders have regarding employees. For example, too much emphasis on monitoring behavior through tools like time clocks and activity logs can suggest distrust or an expectation that employees work only for their paychecks, not out of integrity or a desire to do a good job. Kelly took a step back to identify what managers and leaders believed about employees, then let those beliefs guide subsequent decisions.
Leaders at Kelly ultimately decided that past approaches to performance management had been paternalistic, rather than collegial. In examining their core beliefs about employees, leaders concluded that such a tone did not accurately reflect their expectations of employees. The leaders believed most employees cared about their jobs and wanted to do them well.
It followed that the aim of performance management should be to help employees follow through on their natural motivation. But conversation after conversation revealed that many regarded the performance management score as a hindrance.
Kelly could have renewed efforts to standardize the scoring process, but that began to seem like a case of the tail wagging the dog. What leaders and employees primarily wanted wasn’t more consistent scoring; it was more fruitful performance-management conversations.
In the end, the decision came down to what the scores represented for Kelly and its workforce. Rightly or wrongly, the scores had become emblematic of a management-driven, red-tape-laden approach to performance management. So, Kelly decided to abolish them. In one sense, abandoning scores was a tactical move. But in perhaps an even more important sense, the change was strategic and symbolic – an opportunity to redirect thinking across the enterprise.
Since Kelly has abolished performance scores, they have seen higher levels of engagement from employees and received reports that performance conversations are much more honest and effective.
(c) Bersin and Associates
What are you using – are you using these?
Rallyteam(?) – “they take the career portal we designed and put it on steroids” (…like Pathgather?)