Uploaded byJosh Bersin
Bold HR: Driving Business Value through People
The document discusses key trends and challenges in talent management and organizational dynamics as of 2015. It highlights millennials' preferences in the workplace, the importance of employee engagement and retention, and the need for data-driven decision-making in HR. The report identifies five critical areas for organizations to focus on: engagement, leadership, learning, culture, and data utilization in managing talent.
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Bold HR: Driving Business Value through People
- 1. BOLD HR Josh Bersin Principaland founder, Bersin by Deloitte Leading in the new world of work
- 2. Copyright © 2015Deloitte Development LLC. All rights reserved.1 IMPACT 2015 THE BUSINESS OF TALENT®
- 3. Copyright © 2015Deloitte Development LLC. All rights reserved.2 IMPACT 2015 THE BUSINESS OF TALENT® Facebook 100 million users LinkedIn 80 million users Launch of iPad LinkedIn IPO 6 billion cellphones Facebook 1 billion users iPads sold 100+ million 2008 2009 2010 2011 2012 2013 2014 Building the Enduring Organization 2008 Talent Management for Transformative Change 2009 Rebuilding the Talent Team 2010 The Borderless Workplace 2011 Building the Agile Organization 2012 The World Is Local 2013 Engaging the 21st Century Workforce 2014 The New World of WorkHistory of IMPACT ® Uber market cap reaches $41 billion
- 4. Copyright © 2015Deloitte Development LLC. All rights reserved.3 IMPACT 2015 THE BUSINESS OF TALENT® Shareoftopdecileinnationalincome 50% 45% 40% 35% 30% 25% 1910s 1920s 1930s 1940s 1950s 1960s 1970s 1980s 1990s 2000s Source: Piketty, Capital in the Twenty-First Century, 2014 Income inequality in the United States, 1910-2010 ?
- 5. Copyright © 2015Deloitte Development LLC. All rights reserved.4 IMPACT 2015 THE BUSINESS OF TALENT®
- 6. Copyright © 2015Deloitte Development LLC. All rights reserved.5 IMPACT 2015 THE BUSINESS OF TALENT® Millennials move to the forefront 90 million 70 million 50 million 30 million 10 million 2014 2028 2036 2025 75 81 6566 29 Source: Pew Research Center tabulations of U.S. Census Bureau population projections released December 2014 Note: Millennial refer to the population ages 18 to 34 as of 2015 Projectedpopulationbygeneration Millennial Gen X Boomer Silent
- 7. Copyright © 2015Deloitte Development LLC. All rights reserved.6 IMPACT 2015 THE BUSINESS OF TALENT® 80% want to give performance appraisals to the boss 60% think 7 months of work means they’re “loyal” 2/3 want to be “creative” in their job Their “team mates” are the most important people at work 60% select a company based on its “sense of purpose” What millennials want Source: Deloitte Millennial Survey 2015 and Pew Research, 2015
- 8. Copyright © 2015Deloitte Development LLC. All rights reserved.7 IMPACT 2015 THE BUSINESS OF TALENT® 2015 Global Human Capital Trends 5 KEY FINDINGS 1 #1 global talent issue is engagement, retention, and culture 4 Skills and capabilities within HR 3 Learning is in the spotlight 5 Increasing demand and need for data 2 Leadership gap continues and worsens
- 9. Copyright © 2015Deloitte Development LLC. All rights reserved.8 IMPACT 2015 THE BUSINESS OF TALENT®
- 10. Copyright © 2015Deloitte Development LLC. All rights reserved.9 IMPACT 2015 THE BUSINESS OF TALENT® B O L D Build an irresistible organization Own the leadership agenda Leverage learning everywhere Demand data
- 11. Copyright © 2015Deloitte Development LLC. All rights reserved.10 IMPACT 2015 THE BUSINESS OF TALENT® B O L D Focus on engagement in every program Build an Irresistible Organization
- 12. Copyright © 2015Deloitte Development LLC. All rights reserved.11 IMPACT 2015 THE BUSINESS OF TALENT® B O L D Measure more: capture feedback continuously Assign a chief culture officer Build an Irresistible Organization Focus on engagement in every program
- 13. Copyright © 2015Deloitte Development LLC. All rights reserved.12 IMPACT 2015 THE BUSINESS OF TALENT® B O L D Measure more: capture feedback continuously Assign a chief culture officer Boldly hire for fit Build an Irresistible Organization Focus on engagement in every program
- 14. Copyright © 2015Deloitte Development LLC. All rights reserved.13 IMPACT 2015 THE BUSINESS OF TALENT® B O L D Own the Leadership Agenda Invest consistently at all levels Invert the leadership pyramid Remember that leadership is a journey
- 15. Copyright © 2015Deloitte Development LLC. All rights reserved.14 IMPACT 2015 THE BUSINESS OF TALENT® B O L D Leverage learning everywhere Drive engagement through learning Embed learning into work Boldly reskill and retool L&D
- 16. Copyright © 2015Deloitte Development LLC. All rights reserved.15 IMPACT 2015 THE BUSINESS OF TALENT® B O L D Demand data Demand that HR get good at data Focus on where “the money is being made” Invest and build capabilities now
- 17. Copyright © 2015Deloitte Development LLC. All rights reserved.16 IMPACT 2015 THE BUSINESS OF TALENT® Be BOLD
Editor's Notes
- #2 Thank you Andrew. Hello everyone and welcome to IMPACT 2015, our 8th annual research conference. This year, as you know, the theme of our conference is Bold HR – and I think for the first time in my 15 years as an analyst, the HR function we know and love is at a crossroads. The economy has been improving, unemployment is low, and the U.S. stock market is at record highs. Yet companies tell us their talent challenges are tougher than ever. What seems to have happened is that the world of work has shifted from under our feet, and the discipline of HR is struggling to catch up. Several months ago Ram Charan, one of the most respected business leaders in the world, wrote a controversial article in Harvard Business Review that recommended breaking up HR and giving half of the function to the CFO. While I disagreed with his premise at the time, now it really makes me think. Why are business leaders frustrated with HR’s progress? Why are one-third of all new CHROs coming from business positions ? Why does HR rate itself a C- in business alignment and ability to understand and manage the workforce? And why do business leaders give us a D? The problem is not that we aren't smart enough. It’s not that we don’t work hard enough. And it’s not that we aren’t committed to our jobs. The problem is that we are not being bold -- and that is the focus of my talk. If we want to succeed in todays’ environment we have to be more creative, innovative, and assertive with our solutions. Now is the time for “Bold HR.”
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- #6 Mark Bertolini, the CEO of Aetna, was just quoted in the New York Times talking about why he decided to raise the minimum wage of all the company’s call center workers, improve benefits, and add yoga and mindfulness training for every employee. His motivator was originally the inequality in his own organization. What he found is that retention skyrocketed, employee engagement more than doubled, and company profitability has gone up by almost 4 percent.
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- #8 First, they’re willing to jump around. More than 2/3 of them want to work for themselves and they are used to finding new jobs on the internet and moving around in the early stages of their career. So if you want to keep them you have to give them a highly dynamic career environment. One company told me they are considering making “half levels” in their job model so young people could get promoted more quickly. Second, they thrive on feedback. They want to receive it and they want to give it. Witness the huge explosion of real-time engagement and feedback tools (many of the most exciting companies in HR are with us today.) Young people expect to have a “Glassdoor-like” ability to tell you everything they want you to hear, and they expect managers to give them the same kind of “every day feedback” about how they’re doing. This of course has stressed our performance management and leadership strategies in many ways. Third, they want to be creative and relate highly to their team. Sure they want to work for a company with a great brand, but they really want a team they can feel a part of – and one which lets them build something early in their career. This all probably came from the “tribal” mentality young people developed on the internet and their incredible facility with technology – but believe me if you cant give high powered young people creativew ork, they’ll find it elsewhere. And fourth, Millennials believe in purpose. 73% believe business should have a positive impact on society, and more than 60% select an employer based on that company’s “sense of purpose.” So as I discussed last year, if your company is not a “firm of endearment” you’ll feel the pinch when young people apply for work
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- #10 Which brings me to the theme of our conference: Bold HR. We have to make a change. It is time for each and every one of us to think outside the box, reinvent what we do, and show bold leadership in the world of talent. Last month I met with Jack Zenger and Joe Folkman, two pioneers in the study of leadership. They shared some amazing research with me. After assessing more than 200,000 leaders around the world, they compared the competencies of “good judgment” vs. “boldness” in their 18 level model for extraordinary leaders. What they found is that individuals who are “bold” are 11 TIMES MORE LIKELY to be extraordinary leaders than those who practice “good judgment.” So there you have it. If we aren’t pushing the envelope, we’re not leading – and that means our business counterparts are probably not happy. Over the last six months I’ve discovered many bold HR leaders, and many of them are with us today. Ben Bratt runs talent for T-Mobile, in one of the most competitive industries I can think of. Ben told me that when their deal with AT&T fell through and employees were disenchanted they had an offsite and simply said “let’s start over” – what would we do if we rebuilt HR from scratch. They radically simplified everything: the way they recruit, the way they manage performance, and the way they assess and develop leaders. Today, T-Mobile is the employer of choice in telecommunications; their Glassdoor ratings are almost 20% higher than their main competitor. SAP, a 43-year-old company known for developing highly complex software, is now practicing Bold HR. This week we have Jenny Dearborn, the CLO of SAP, with us and she is going to tell us how they have boldly re-invented learning and leadership at SAP, consolidating 62 learning organizations. . Today engagement at SAP is on a major upswing and so is their business. These companies are not making “iterative improvements.” They are throwing away what doesn’t work and starting over. This is what Ram Charan was talking about in that Harvard article – we have to step up, take the lead, and reinvent HR in this new world of work. Now let me share the four major principles of bold HR.
- #11 The first is Build an irresistible organization. Everything we do in HR has an impact on employee engagement. New research by Quantum Workplace shows that engagement is lower now than in the last 8 years. If our performance management process is poor, onboarding is weak, or we aren’t recruiting people with the right fit – we are part of the problem. The second is Own the leadership agenda. For years our research shows that the most important way HR can impact business results is through our ability to coach, develop, and support our leaders. We have to boldly re-invigorate our focus on leadership and reinvent the way we develop leaders. The third element is Leverage learning everywhere. I shared the data. Learning and development is one of the most important drivers of employee engagement and productivity. And the fourth is Demand data. We are the stewards of perhaps the largest untapped source of data in business: information about our people. We are now under the gun to build analytics capabilities, develop competency with data, and bring people data to the table to help make business decisions..
- #12 First let’s talk about engagement: how do you build the irresistible organization? First, let me make this clear: Engagement should be the goal of every HR program you build. And engagement is not an HR program, it’s a business strategy. Let me share some data. Fortune’s 100 Best Companies to Work For have outperformed the S&P 500 in 8 of the last 10 years and generated three times the stock market return of the Russell 3000 over the last 30 years. Is it easy to become Irresistible? The answer is no. It’s hard and it takes time, effort, and an integrated approach. The simply irresistible model describes five critical elements: meaningful work and job fit; strong coaching-based management; a flexible and humane work environment; ample opportunities for growth, and transparent and inspirational leadership. And by the way, there’s no “one size fits all.” You have to be creative. Salesforce lets employees bring their dogs to work; Wegmans pays for high school kids to go to college and come back as managers; Marriott gives tenured employees free hotel rooms for life: and Zappos lets call center workers bid for working times so everyone can work when they want.
- #13 Second, we have to measure more: capture feedback in a continuous way. Let’s face it: the annual satisfaction survey is becoming out of date. We need to monitor and measure engagement and feedback in real time, and provide that feedback directly to line managers. Pulse surveys, real-time engagement tools, and employee sentiment analysis are becoming the “Fitbit” of corporations around the world -- and your job as a bold HR leader is to embrace and adopt these new approaches. If we can measure the sentiment of our customers, we can certainly measure the sentiment of our employees! HubSpot, one of the fastest growing software companies in Boston, measures the engagement of its 800 employees every week. (So does Adobe.) Their CMO told me it’s the most important measure he has. HubSpot’s Glassdoor ratings are almost 30% higher than their two biggest competitors. Brenda Rigney and Mo Jesse from Earl’s Foods used a pulse survey tool to discover an amazing finding about what was hurting engagement in their restaurants. I’ll let them share that with you in their session. Even Deloitte is now embracing pulse surveys in our new performance management process. Which brings me to my third point. We need to assign “culture” a role within HR. Culture is the New Black. The word was rated by Merriam Websters as the “word of the year” for 2014, so if you aren’t starting to document, monitor, and manage your culture you’re falling behind. Pluralsight, a billion dollar valued ten year old company, has a chief culture officer . Many companies now have this role. Their Glassdoor rating is a 100% complete 5.0, everyone loves the place. Melissa Davis, the head of workplace design and culture at Quicken Loans (who I am excited to say is with us today), worked with Dan Gilbert the CEO to create the 12th best place to work in the US. Their amazing book of cultural “ISMS” is one of the most compelling manifesto’ I have ever read.
- #14 Fourth, we must boldly hire for fit. You can’t build an irresistible organization if you don’t hire the right people. And great recruiting is hard: you have to build a great brand, assess for skills, and hire for fit. This is an area were being bold REALLY pays off. Our newest talent acquisition research, just launched last week, shows that level 4 recruitment companies have 40% lower first year turnover than average, and they take 20% less time to fill jobs. How do you do it? Try new ideas. Dell has radically redesigned its employment brand and built brand ambassadors to find the right people. Southwest Airlines asks candidates to tell a joke, so they can see if they have a sense of humor. NBC Universal asks candidates to submit auditions via video, to see their skills in digital media. T-Mobile assesses fit by identifying how far a candidate lives from the store they apply to work at. I’m excited that we have some amazing, bold, recruiting leaders here to share their stories. Jennifer Jones Newbill from Dell, Marty Belle from W.W. Grainger, Stefanie Thornton from Blue Cross Blue Shield of Michigan, and Celia Harper-Guerera from Illumina will each share their stories about how they boldly redesigned recruiting to attract just the right people and make their organizations “simply irresistible.”
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- #16 The third principle of bold HR is to drive learning everywhere. As I discussed earlier, learning today is not only a way to drive performance, it is one of the most important drivers of employee engagement you have. But here I believe we are at a crossroads. Only 14% of L&D leaders believe they are viewed as strategic business partners. What’s going on? Today the corporate learning industry is experiencing a renaissance as transformative as the introduction of e-learning that began in 2000. Look at what’s available in the consumer learning market today: MOOCs, video learning content, learning marketplaces, and high-fidelity programs by experts are everywhere. Lynda.com (just acquired by LinkedIn for $1.5 billion, 10X revenues), Khan’s academy, and Pluralsight, for example, now have millions of users and their content is rigorous, expert-driven, and produced with studio quality and fidelity. Can we say the same about our own internal programs? Probably not. Let me challenge you to think about three things as you refocus and reinvigorate your corporate learning strategy. First, start to consider learning and engagement part of the same continuum. A great example of this is the work Stephane DeMeris is doing at Decker Shoe Company. Stephanie is responsible for employee learning, employee engagement, employee communication, and culture. Everything she does is designed to engage people- and she believes learning is at the core. They have one of the best employee engagement scores in their industry. As Yash Mahadik, the CLO of Philips put it to me, we don’t need instructional designers, we need “learning experience designers” now. Second, think about your job in learning as “making the business better,” not just “teaching people things.” Nick Shackleton, the head of learning innovation at BP, put it well to me the other day. As Nick put it, “learning is going away” – people don’t want to be trained, they want tools and systems that prevent them having to learn. How hard was it to learn to use Uber? How much training do you go through to use Instagram? Nick’s job is to embed learning throughout the fabric of BP – so he has developed mobile apps and embedded systems that coach people in management, leadership, and supervision. Third, it’s time for you to reskill and retool your learning organization. Dani Johnson and Deanna Cauley from Red Robin are going to share a new capability model for L&D and talk about how we need to boldly change our mindset of learning in the new world of work.. Janice Burns and Charles Silvestro of Mastercard, will how you how they “meet learners where they are” through a combination of agile development, the use of MOOCs, and rigorous study of their learner’s needs. And Susie Lee and Daniel Abdo from Bank of America will show you how to apply a “product centric approach” to learning and create a highly engaging experience in today’s “overwhelming” work environment.
- #17 Which brings me to the Fourth part of being Bold: We MUST get good at data. Listen, we in HR are the last part of business that hasn’t totally gotten our data act together. Nobody would run finance or sales without good data, so now its time to do the same with HR. This new area of People Analytics is far more serious than the “HR Analytics” we’ve done in the past. As one of our top HR leaders put it, we have to “spend time where the money is being made” We are being asked to directly advise on critical business questions: Why are some sales teams outperforming others? Why do we lose certain high performers? Why do some nursing units or service teams deliver better outcomes? And why do some parts of the organization suffer from higher fraud or errors than others? The answer to all these questions lies in people analytics, and that is our bold new charter for the coming years. AOL is using people analytics to recruit technical experts from competitors, using technology that lets them target engineers that are most likely to change companies. JP Morgan Chase is not using data about their employees’ behavior to who is likely to cheat or commit fraud. Hitachi measures employee work patterns to help identify the behaviors of the most innovative engineers. Stories like this are everywhere: today’s people analytics drives business results. This week we have Karen O’Leonard and Katherine Jones ready to show you some of the new technologies in the platform market, Akil Walton one of our pioneers in this market in the session about during “data phobes into data philes” and Robert Lanning from Rackspace to tell us about how we can all become “Dapifers.” People analytics is attracting some of the smartest mathematicians, statisticians, and engineers in business. If we want to be bold, we have to invest in analytics and being the journey toward making HR truly a data driven business function.
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