HR Technology 2019: A Wild New World

WWW.JOSHBERSIN.COM
JOSH BERSIN
Global Industry Analyst
October, 2018
A Wild New World
of HR Technology
HR In The Flow of Work

Tremendous War
for Skills, both
Technical and
Soft-skills
Groundbreaking
Changes in
Demographics
Radical Changes
in Expectations
for Work and
Employers
Challenges with
Engagement,
Productivity, and
Employee
Experience
Forces Disrupting Organizations Today

*Source: Robots: The new low-cost worker, Dhara Ranasinghe, CNBC, April 10, 2015. https://www.cnbc.com/2015/04/10/robots-the-new-low-cost-worker.html
** Source: China Can’t Buy Enough Industrial Robots, Jethro Mullen, CNNTech, June 23, 2016 http://money.cnn.com/2016/06/23/technology/china-industrial-robots/index.html
The Future of Work
Robotics, AI, Sensors Are Here Now
42% of companies
believe AI and
automation will be widely
deployed in their
companies within 3-5
years.
Yet today only 15% have
plans to develop the
skills to meet this
change.

1 billion
smartphones
i-Phone
launched
100 million
Twitter users
Source: U.S. Bureau of Labor Statistics
Productivity Continues To Lag

Sources: Deloitte Human Capital Trends 2014 and 2015
The “average” US worker now
spends 25% of their day reading or
answering emails
Fewer than 16% of companies have
a program to “simplify work” or help
employees deal with stress.
More than 80% of all companies
rate their business “highly complex”
or “complex” for employees.
The average mobile phone user
checks their device 150 times a
day.
The “average” US worker works
47 hours and 49% work 50 hours
or more per week, with 20% at
60+ hours per week
40% of the US population believes
it is impossible to succeed at work
and have a balanced family life.
Employees Are Overwhelmed

We Are Working More Hours: A Vacation Crisis
• Since 2000, US workers lost an entire week
of vacation, dropping average vacation days
from 20.3 to 16.8
• Americans left 662 million unused vacation
days forfeiting $66 billion in benefits
• 39% “want to be seen as a work martyr” to
their boss, yet these over-workers are less
likely to receive a promotion or raise than their
peers.
• Employees who forfeit time are less likely
than non-forfeiters to be promoted or receive
a raise or bonus
Source: The State of American Vacation 2017, Project: Time Off https://www.projecttimeoff.com/state-american-vacation-2017
35% of Millennial
women feel guilty
about taking time off
(25% of men)

Average
3.2
What are these
companies doing?
Graph source: Summer 2016 Glassdoor and Bersin Research
Stat Source: 2017 Trends in Global Employee Engagement, Aon Hewitt http://www.aon.com/chile/attachments/2017-Trends-in-Global-Employee-Engagement.pdf
Employee Engagement Only Slightly Improving

Growing Lack Of Trust
Majority believe the system is failing:
https://www.edelman.com/research/2017-trust-barometer-global-results
Trust CEOsBelieve the
system is failing
53%
Only
37%
Edelman Trust Data
Only
29%
Trust
government

60% of Californians
believe tech benefits the
state, yet
only 38% believe tech
benefits me
Over 3/5 of Californians
believe tech firms over-
focus on profits and are
draining local resources
for their own benefit
58% believe tech has
failed to protect them
from data security threats
Only 29% believe tech is
being transparent and
open and 67% believe
the industry is
“secretive.”
Distrust & Backlash Against Technology
Edelman trust index, California edition, https://www.edelman.com/2018-california-trust-barometer

Automate Integrate Engage Perform
1990s-2000s 2004-2012 2012-2017 2019+
Automated Talent
Management
Integrated Talent
Management
Engagement, Fit,
Culture, Analytics
Productivity, Performance,
Teams
Talent Management:
Integrated processes and systems,
Talent as core to HR and business
agenda
Systems of Automation
Practice-driven solutions
People Management:
Focus on culture, engagement,
environment, leadership, and fit
Systems of Engagement,
Empowerment solutions
From HCM to Talent Management to HR In The Flow of Work
Engage
Team & Work
Management:
Optimizing productivity,
alignment, and teams to make
work better.
Systems of Productivity
In the Flow of Work

Accelerated Pace of
Core HR Technology Market
Big players are jumping in.
1

$16.0 Billion in Investment in HR Tech Since 2009 (2,918 companies)
Source: CB Insights
Lots of Investment in HR Tech
More than half
are brand new:
25% seed
31% series A
$6.5B last
two years
https://www.cbinsights.com/search/deals/?comLists=252745&limit=25&offset=50&displayType=table

Every Major Company Is Now Building HR Technology

Acquires
Glint
LinkedIn ATS
Talent Hub
Big Data
Talent
Insights
LinkedIn
Learning
Pro, SkillsDiversity
Insights
Real-Time AI
in Recruiter

Benefits &
Compensation
Hiring
Recruiting
E-Learning
Integrated Talent
Platforms
Cloud-Based
HCM
New Systems of
Engagement
Core HR Platforms Shifting Focus… But…
MARKETGROWTH-ADOPTION
2 0 0 0 2 0 1 9P R O G R E S S I O N O V E R T I M E
Compensation
HRIS
Benefits
Administration
Applicant Tracking
Performance
Mgt
Learning
Management
Recruitng
ATS
Learning
Management
Performance
Management
Integrated Talent
Management
Compensation
Analytics
Reporting
Cloud-Based HCM
or ERP
Payroll
HRMS
Employee
Profile
Recruiting
Learning
Workforce
Management
Wellbeing
Social Recognition
Employee
Experience
Career and
Gig Work
Learning
Experience
Real Time
Engagement
Next Gen
Performance
Cognitive, AI,
Conversational
HR Process
Automation
Integrated Talent
Applications
Cloud “Systems of
Engagement”
Meaningful Systems to
“Make Work Better”

…Becoming Spread Thin
 Payroll in new geographies
 GDPR compliance
 Reinventing performance management
 New learning platforms
 Feedback and pulse surveys
 AI-based recruitment platforms
 Wellness, fitness apps
 Diversity and inclusion products
 Team management tools
 Employee onboarding
 Employee experience
 Integration with Slack, Workplace, and G-Suite
ERP Vendors Stressed To Keep Up

Core HR: Many Disruptions Coming
Core HR
Vendors
Internal gig
projects
Gig and
alternative work
Continuous
reskilling, career
mobility
Organization as
network not
hierarchy
Performance
management of
teams and projects
Wellbeing and agile
rewards systems
Real-time and
digital pay
AI-based employee
experience services
Graph database
architectures
Engagement 3.0
and nudge engines
Augmented
analytics and
unbiased AI

A New Marketplace of
Talent Management Software
Productivity, development, and
engagement, not just HR
2

Unemployment Rate At Near Record Low
End of
Korean
War
Vietnam
War
https://www.thebalance.com/unemployment-rate-by-year-3305506
Black
Monday
Dot Com
Dot
Bomb
Financial
Crisis
1970 – 1976
6.2% jumping to 12.3% Inflation
2007
4.1% Inflation
http://dhihiringindicators.com/wp-content/uploads/2018/01/2018-01-DHI-Hiring-Indicators-Report-FINAL-2.pdf
Expected to
drop to 3.8%
There are now .87 US workers for each open position, lowest since in last 50 years.

The Industrial
Corporation
Hierarchical
Leadership
Collaborative
Management
Networks
of Teams
<1950s 1960s-80s Today1990s
Andrew Carnegie
Henry Ford
Netflix, Google,
Facebook, Amazon, etc.
Jack Welch
Peter Drucker
Howard Schulz
Steve Jobs
Profit, Growth,
Financial Engineering
Customer Service,
Employees as Leaders
Mission, Purpose,
Sustainability
Operational
Efficiency
2020
Industrial Age
People as Workers
Management by
Objective
Servant Leadership
Work Together
Empower the
Team
The Corporation
is King
The Executives
are King
The Teams and
Team Leaders are Kings
The People are
King(s)
Citizenship,
Growth and Learning
Productivity, Wellness,
Networked Business
Unilever, Patagonia,
Airbnb, Whole Foods, etc.
People, Communities,
Global Networks
Purpose, Citizenship,
Productivity
New Models of Management Thinking

Workers Living Longer, Stretching the Talent Cycle
“Since 1840 there has
been an increase in life
expectancy of three
months for every year.”
Source: Gratton, Lynda; Scott, Andrew.
The 100-Year Life
Today’s Millennials
have a 50% chance
of living to 100+
Increase in Life Expectancy Over Time
Source: http://www.mortality.org/
Will generational
bias be the hot
button of 2018?

Feedback and
Engagement
Reinventing
Performance
21st Century
Learning & Career
Next Gen
Rewards
Well-Being
Productivity
Work – Team
Management
2019 and Beyond: A New Set of Talent Applications
MARKETGROWTH-ADOPTION
2 0 1 6
Pulse
Survey
Text
Analytics
Mobile
Feedback
2 0 2 0
Culture
Assessment
Coaching
Tools
Check-ins
with Feedback
Agile, open
goal management
Org Network
Analysis
P R O G R E S S I O N O V E R T I M E
Micro-Learning
Content
Curation
Learning
Experience
Career
Planning
Gamification
Accreditation
Slack, Office,
Google Integration
Document
Management
Goal Sharing
Goal Tracking
Conversational
InterfacesRecognition
Everywhere
Custom Rewards
Programs
Customer
Recognition
Conjoint Analysis
Holistic Rewards
Real-Time Pay and
Rewards
Financial
Well-Being
Well Being
Fitness Tracking
Competitions
Social Sharing
Fitness Merges
w/Engagement
Emotional,
Psychological
Facebook, Google,
Microsoft, IBM,
Atlassian
Engagement
3.0 Nudge Engines
Team Based
HRMS Systems
Gig work
management

Market Evolution becoming Disruptive Again
Rewards Recognition
Well Being
Learning
Payroll - Talent
Engagement
Performance Management
Mid-Market SMB
Recruitment

Massive Investment in Talent Acquisition Tools
2000s
Candidate
Marketing
Assessment
2010s
Onboarding
Workflow
Integrated
Sourcing
Examples of Firms
1990s
Applicant
Tracking
Future
AI-Based
Intelligent
Recruitment
Automation
Today
Intelligent
Assessment,
Diversity
Career

AI Is Here – And It Works

Trust: Proliferation of Diversity & Inclusion Tools

Coaching: AI In The Flow Of Work

Performance, Embedded Into The Flow of Work

The Well-being Market
Explodes
And its bigger than
you thought
3

Workplace Culture is Hot: Well-being
Google Trends Search for Wellbeing since 2004
https://trends.google.com/trends/explore?date=2004-01-01%202018-07-30&q=Wellbeing

EmployeeVitality
Business Performance
Cost
Reduction
Labor
Productivity
Retention Productivity Collaboration Team
Performance
Leadership
Health
Monitoring
Employee
Assistance
Medical
Benefits
Fitness
Challenges
Nutrition
Exercise
Sleep
Stress
Sustainable Performance
Recognition
Skills and
Training
Work
Environment
Rewards
Leadership
Management
Clear Goals
Growth
Opportunities
Drive
Wellbeing
Self
Discovery
Career
Purpose
Mindfulness
Abundance
Mentality
Positive Thinking
Culture Fit
Family
From Wellness to Well-being to Performance
$1.7 Billion Venture
Invested in 12 months
VC Data: CB Insights

Wellness Apps Now Used More Than Twitter
290% reduction in
workers compensation claims
65% more engaged
than non-users
9% greater work
productivity
Source: VirginPulse Client Research, 2017

Demand for Financial Wellbeing Solutions
Epidemic In Financial Illiteracy
• 40% of adults rated a C, D or F on personal finance literacy
• 1/3 of Americans only pay minimum credit card balance and average
credit card debt is $15,000
• Median retirement balance is only $3,000
• 50% of American households have no savings
This Has Huge Impact on Work
• Financial stress lowers productivity by $250 billion per year
• 15% of college graduate salaries goes to student loan debt
• 64% of millennials feel financially stressed, 32% say it impacts their
daily work
• 33 peer reviewed studies correlate financial stress to health and
heart attacks
https://www.huffingtonpost.com/douglas-p-mccormick/financial-literacythe-big_b_10264622.html
2018 TIAA Institute – GFLEC Personal Finance Index

Pay and Rewards Are Going Digital

Convergence of Talent Applications Ahead
Diet
Wellness
Fitness
Challenges
Goal Management
Feedback
Pulse
Survey
Surveys
Engagement Tools
Mobile
Feedback
Customer
Feedback
Check Ins
Personality
Assessment
Performance
Review
Physical
Fitness
Health
Behavior Change
Social Recognition
Customer based
Recognition
Perks
Awards
Affinity
Groups
Anniversaries
Work Events
Engagement
Analytics
Travel
Time Management
Video Learning
Self-Assessment
Gamified
Onboarding
Career
Planning
Training and
Certification
Engagement
Feedback
Performance
Pay, Recognition
Rewards
Learning & Coaching
Well Being &
Work Management
Coaching
Mentoring
Financial
Fitness

Engagement, Pulse,
Culture Platforms Grow
Accelerating in value
4

Employee Engagement Market Evolves
Once per year.
Focus on management.
Benchmarked annually.
Rigid questions asked
year after year.
Focus on benchmarking.
Agile surveys as needed.
Pulse on regular basis.
Feedback on mobile or apps.
AI-based action plans.
Immediate feedback.
Focus on feedback.
Many sources of data.
Recommendations driven by
nudge and suggestion.
Open to HRMS, ONA, and other
behavioral data.
Focus on behavior change.
Engagement 1.0 Engagement 2.0 Engagement 3.0
Survey technology. Web, mobile, analytics. AI, nudges, real-time sensing.
The top-down annual
engagement survey
Pulse surveys
with intelligent sensing
Intelligent nudges,
Focus on everyone

New Tools: Upping The Game

Building an Enterprise Feedback Architecture
Integrated
Reporting & Analytics
Sentiment Analysis
Network Analysis
Social Media Monitoring
Job Boards & Ads
Employment Brand
Customer Satisfaction
Anonymous
Feedback Tools
Pulse Surveys
Annual
Survey
Performance
Check-ins
Exit
Interviews
Performance
Appraisals
Email
Sensing
Location
Travel, Badges

2019: People Analytics Is Shifting
Interesting Experiments,
Models, and Studies
Practical, Useful
Dashboards and Tools
Projects Based on
Problems and Strategies
AI-Based
Augmented Analytics

Relationship (ONA) and Augmented Analytics
Teams Organizations The Enterprise
If You Don’t Have A People Analytics Team You Should

Exciting New Generation of
Learning Platforms
Focus on experience
5

2.8
2.9
3
3.1
3.4
3.6
4.4
4.5
5.5
5.5
5.6
5.7
6.5
9.8
0 1 2 3 4 5 6 7 8 9 10
Head of Customer Experience
Reliability Engineer
Marketing Content Manager
Guest Experience Manager
Licensed Realtor
Head of Partnerships
Peronsal Loan Consultant
Brand Partner
Big Data Developer
Full Stack Engineer
Customer Success Manager
Sales Representative
Data Scientist
Machine Learning Engineer
Most In-Demand Jobs 2018
Soft Skills
Tech
https://economicgraph.linkedin.com/research/LinkedIns-2017-US-Emerging-Jobs-Report
Most In-Demand Skills
1. Management
2. Sales
3. Communication
4. Marketing
5. Start-ups
6. Python
7. Software development
8. Analytics
9. Cloud computing
10. Retail
Most In-Demand Capabilities
1. Adaptability
2. Culture fit
3. Collaboration
4. Leadership
5. Growth potential
6. Prioritization
All Skills Are In Epic Demand – Not Just Tech

And Every Company Is Reskilling … All The Time
Our software engineers need to
shift to agile development
methodologies.
Our sales teams need to learn to
use Salesforce for account
development.
Our marketing teams need to
learn digital marketing and
analytics tools like Marketo
Upskilling
Productivity
shift from client/server to mobile
or cloud development.
Our sales teams need to
understand integrated vertical
solutions
Our marketing teams need to
learn SEO and digital advertising
tools.
Reskilling
Innovation and Growth
learn AI, nudges, and gamification
models.
Our sales teams need to become
consultants and advisors.
Our marketing teams need to shift
to product management and
design thinking.
Reinvention
Survival

58% of companies are
redesigning or planning to
redesign their career model
Deloitte HC Trends 2017
83% of companies expect to have an
“open” or “highly flexible” career
model within the next 3-5 years
While 33% of companies promote
vertical career moves, 67% now
promote horizontal or project
based career progression
31% of companies expect careers
to be 3-5 years long; 60% expect
them to be 10 years or less
Learning and career management
software is the #1 fastest growing
segment in HR technology
(Sierra-Cedar 2016– 2017 Survey
HR White Paper)
Career Models in Massive Disruption

Explosive Growth In MicroLearning
Micro-Learning Macro-Learning
I need help now. I want to learn something new.
• 2 minutes or less
• Topic or problem based
• Search by asking a question
• Video or text
• Indexed and searchable
• Content rated for quality and utility
• Several hours or days
• Definitions, concepts, principles, and practice
• Exercises graded by others
• People to talk with, learn from
• Coaching and support needed
Is the content useful and accurate? Is the author authoritative and educational?
Videos, articles, code samples, tools Courses, classes, MOOCs, programs

Learning Experience
Platforms
Degreed, EdCast, PathGather
Jam, Fuse, Percipio, Cornerstone,
Valamis, Tribridge, …
Program Delivery
Platforms
CrossKnowledge, NovoEd
EdX, Everwise, OpenEdX, Blackboard,
Instructure, ...
Micro-Learning
Platforms (adaptive)
Axonify, Area9, Grovo, Qstream, Practice,
Rehearsal, Jubi, Wisetail, Mindtickle,
Trivie, Echo, EduMe, etc.
LMS and Content Platforms
Cornerstone, Saba, SuccessFactors, SumTotal
Workday, Oracle, SAP, Bridge, D2L, Litmos, Intellum, Docebo, others
Assessment, VR, Development Tools
Video Authoring, Intelligent assessment, spaced learning,
gaming, virtual reality, collaboration, simulations, …
Content Libraries
LinkedIn, Udacity, Coursera, EdX, Udemy, Pluralsight,
SkillSoft, CrossKnowledge, hundreds of others
Learning Record
Store
GrassBlade, Learning Locker,
Saltbox, Yet, Watershed
1 2 3
4 5
7 8
Digital Adoption and Workflow Learning Tools
WalkMe, EnableNow, Microsoft Teams, Slack, GSuite
6
Massive Redefinition of Learning Tech Market

… But There May Be Too Many Learning Solutions
L&D Executives
Are Becoming
Totally Confused

New Tools For The
Employee Experience:
Productivity
HR in the Flow of Work
6

believe internal
processes for
collaboration are
working well
believe their employees
are fully aligned with
the corporate purpose
23%
14%
are excellent at building
a differentiated employee
experience
22%
are using design
thinking as part of
crafting the employee
experience
10%
Source: Deloitte and Facebook, “Transitioning to the future of work and the workplace,” November 2016
38%
Say problem is
urgent
Focus on Employee Experience

Expanding World of Employee Experience Tools
Ad-Hoc Service or No Service
(deliver as needed, random, business partner driven, difficult to manage)
Managed Service and Service Delivery
(integrated service delivery strategy, call centers, outsourced HR services)
Self-Service Systems
(portals, apps, case management, knowledge base, expertise mgt)
Automated Services
(voice, apps, AI, nudges, intelligent proactive solutions)

How HR Systems Are Changing
Talent Systems of Record
embedded into ERP
(ATS, LMS, Compensation, Benefits, Surveys, Rewards)
Innovative Talent Applications
(Social sourcing, AI-based assessment, video interviewing, learning experience platforms, mobile learning, VR-
based learning, social recognition, engagement, well-being behavioral change…)
AI or Cognitive Front End

White Collar
Hourly
Senior Leaders
Contractors
External
Network
Alumni
Line Managers
Candidates
Senior Geographic
Business Partners
Talent Specialists
(OD, sourcing, recruiting,
learning, organized in networks
of excellence)
Wellbeing, safety, culture,
engagement, recognition
Analytics, Monitoring,
Predictive, WF Planning
HR Tech, App
development
Research, Market
Best Practices,
Comp, Ben,
Rewards
HR Prof
Development
HR Ops, AI and
Bots, Intelligence
Junior Geo
Bus Partners
Engagement
Feedback
Recognition
Learning
Career
Coaching
Performance
Goals
Succession
HRMS
Payroll/Time
Communications
Analytics/AI
ONA
Workforce Mgt
Wellbeing
Rewards
Benefits
Sourcing
Recruitment
Assessment
HR Technology Architecture: 2019 and Beyond
Built for the Employee Experience
Self
Service
External
Services
Case and Expertise
Management
Document, Knowledge
Management
Employee
Communications
Transition
Programs
Employee Experience Platform: Chat | Conversation | Mobile | Integration with Systems of Productivity

WWW.JOSHBERSIN.COM
JOSH BERSIN
Global Industry Analyst
October, 2018
HR In The Flow Of Work
Are You Ready?

HR Technology 2019: A Wild New World

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