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seven seismic shifts
  Trends shaking the HR profession
  and reshaping strategic HR value




kellyocg.com
Contents




     introduction / 4

01   the demographics are turning hostile / 5

02   the millenials are rewriting the rules / 9

03   the rise of the free Agent / 13

04   technology: friend or foe? / 17

05   Globalization is here to stay / 21

06   making hR a strategic priority / 25

07   maximizing recruiting efficiencies through outsourcing / 27

     conclusion / 29




                                                                   3
Introduction



    As businesses across the globe evaluate and continue to assess their recruitment needs, HR
    departments are being confronted by a daunting array of challenges.

    On one hand, in the aftermath of historical highs in unemployment, there is supposed to be
    an abundance of talent—yet attracting the best people is more difficult than ever. Additionally,
    those current employees who are dissatisfied in their roles will be looking to jump ship at the
    first available opportunity.

    A proliferation of new social networking and database technologies is transforming the
    way people look for work. As importantly, technology has changed the way companies and
    recruiters must now engage in seeking out and recruiting passive candidates. And a new
    generation of independent, transient, and globalized workers in the burgeoning knowledge
    economy is creating new rules around hiring and engagement.

    At the same time, there is unprecedented pressure on HR to lift its game, and become more
    aligned to the key strategic drivers of business performance. Measurement of HR performance
    is shifting and becoming more demanding, requiring practitioners to demonstrate their
    contribution to high-level corporate goals, not just operational outputs.

    These forces are converging at a stage when many corporate executives who look
    at HR think its job should be relatively straightforward. From a talent acquisition standpoint,
    “With so much talent on the market, why is it so hard to attract and retain
    the right people?”

    These are the key imperatives facing the HR profession worldwide. This is not simply a
    shortterm cycle, but part of a longer-term trend that is shaping the fundamental way that
    people think about work and interact with employers, families, and communities.

    This paper examines the seven meta-trends that are shaping the new workforce, and provides
    insight into how the role of HR is being severely stressed to meet the needs of business and
    commerce in the 21st century.




4
01
The demographics are turning hostile

 Despite the availability of people, hiring managers in some
 large organizations are seeing the re-emergence of talent
 shortages even in the early phase of economic recovery.




                                                               5
01   The demographics are
                           turning hostile




THIs Is noT a          Recent events have seen national economies shudder to a halt, and with that, a sudden
sHoRTage of people,    shift in the critical labor shortages that had plagued developed economies for more
                       than a decade. With millions of workers having lost their jobs in recent years, the basic
buT a sHoRTage of
                       rule of numbers would suggest that labor supply should be plentiful. And while it is true
qualIfIed people,
                       that unemployment levels in many countries remain at historical highs, the issue facing
aT a TIme wHen         HR organizations is an increasingly critical talent shortage—those individuals who bring
woRkplaCes aRe         education and occupational skills to an organization that can make an immediate and
demandIng HIgHeR       lasting impact.

levels of skIll and    Despite the availability of people, hiring managers in some large organizations are seeing
knowledge.             the re-emergence of talent shortages even in the early phase of economic recovery. As
                       economic growth gathers pace, shortages in certain industries are appearing almost
                       as acute as before the economic collapse. In some areas of healthcare, science, and IT
                       the talent shortage never actually disappeared, and those remain highly challenging
                       environments for recruiting.

                       So what’s happening? Essentially, we are entering a phase in the demographic cycle that
                       will be characterized by chronic talent shortages in certain sectors over the long haul. It is
                       part of a longer-term trend dictated by population cycles.

                       Population growth in major economies is below replacement rates, meaning there will be
                       increasingly fewer people of traditional working age, relative to the older population. The
                       total fertility rate (TFR) is a measure of the number of births per woman in the population
                       and serves as a proxy for population growth. A rate of 2.3 children per woman is generally
                       considered the replacement rate in developing counties, while 2.1 is the rate in developed
                       economies. Above this rate a population is increasing and below, it is generally falling.




6
Fertility rates are in sharp decline in the vast majority of industrialized countries, while
they are growing significantly in many underdeveloped countries. Unfortunately, many
of the countries with fast-growing populations do not have the educational infrastructure
to develop a level of skilled labor that can be readily substituted for the shortfall in
industrialized countries. This results in a paradox: we may see high unemployment while at
the same time recognizing a global shortage of talent. This paradox may be more or less
pronounced based on sector, but it is an inevitable emerging trend.




8
7
                                                                              Total Fertility Rate
                                                       Selected countries, 2009 (births per woman)
6
5
4
3                                                                                                                                                                                                      Replacement Rate (2.3)
2
1
0
    Niger
            Ethiopia
                       Chad
                                    Yemen
                                    Kenya
                                      Iraq
                              Saudi Arabia
                                                  Jordan
                                               Pakistan
                                             Philippines
                                                           Syria
                                                                   Malaysia
                                                                              Israel
                                                                                       India
                                                                                               South Africa
                                                                                                   Mexico
                                                                                                                    Brazil
                                                                                                              New Zealand
                                                                                                                             United States
                                                                                                                                     Chile
                                                                                                                                   Ireland
                                                                                                                                             China
                                                                                                                                                     Australia
                                                                                                                                                                 Denmark
                                                                                                                                                                           Sweden
                                                                                                                                                                                        Netherlands
                                                                                                                                                                                    United Kingdom
                                                                                                                                                                                                      Canada
                                                                                                                                                                                                               Switzerland
                                                                                                                                                                                                                             Germany
                                                                                                                                                                                                                                 Italy
                                                                                                                                                                                                                                         Spain
                                                                                                                                                                                                                                                 Japan
                                                                                                                                                                                                                                                         Singapore
                                                                                                                                                                                                                                                                     Hong Kong




                                                                                                                                                                                          Source: CIA World Factbook 2009




                                                                                                                                                                                                                                                                                 7
01   The demographics are
         turning hostile




     The trend is marked and becoming more acute. There is a limited global pool of skilled
     labor which is becoming more scarce each year. This is not a shortage of people, but a
     shortage of qualified people, at a time when workplaces are demanding higher levels
     of skill and knowledge. Even at times of relatively high unemployment, employers face
     difficulty in obtaining the best talent. So while conditions may have eased the headline
     skills shortage, they have really only provided a reprieve from the long-run trend of tighter
     labor supply.

     This is the new operating reality for the human resources profession. HR people will need
     to keep recruiting irrespective of short-term cycles. The best-educated and skilled technical
     and professional employees will be in greater demand, harder to find, and command a
     premium to switch or re-locate jobs.

     Just as entire countries modify their national immigration policies to counter this trend,
     companies seeking highly skilled talent will need to consider strategies that will enable
     them to circumvent this demand-supply impasse. Of all the forces that are converging
     on HR managers, few will be as daunting as this demographic shift, simply because it is
     virtually locked in for at least the next 30 years.




8
02
The millenials are rewriting the rules

 While Gen X and baby boomers have the greatest
 direct experience in the global business environment,
 Gen Y is becoming the driving force for change.




                                                         9
02   The millenials are
                          rewriting the rules




THe benefITs of       The influx of Gen Y, or the Millenials, into the workforce is changing many of the ground
dIveRs ITy In TH e    rules that prevailed for Gen X and baby boomers. Gen Y has entered the workforce
                      with different attitudes, expectations, and ambitions. There are identifiable traits and
woRkplaCe aRe
                      attitudes that range across issues of job selection, tenure, work-life balance, remuneration,
well-doCumenTed
                      promotion, and not least, the use of technology.
and gen y bRIngs a
                      Referring to that group born roughly between the mid–70s and the year 2000, Gen Y is the
RICH oppoRTunITy
                      first truly globalized generation of workers. They have grown up with technologies that have
To CHallenge          shrunk the workplace, expanded their horizons, and made them feel comfortable operating
esTablIsHed           in a borderless world. For them, the digital workplace means dealing with colleagues from
noTIons, RefResH      different cultures in different time zones.

pRaCTICes, and Tap    While Gen X and baby boomers have the greatest direct experience in the global business
InTo new THInkIng,    environment, Gen Y is becoming the driving force for change. They see global experience
                      as a positive differentiator in job selection and promotion.
TeCHnologIes, and
aTTITudes.            For Gen Y, the lines between work and personal life are blurred. They are the first
                      generation that’s been raised in a 24/7 environment. The communications revolution has
                      made that possible, and Gen Y doesn’t view it as a burden.

                      Issues around work-life balance become important because in an environment where work
                      and social life are ill-defined, there needs to be some level of compromise. The workplace
                      itself is evolving to meet some of these requirements. For the Millenials, the workplace is
                      not solely about work—it is a place for social interaction and shared learning. Workplace
                      culture, relationship building, and ongoing learning is critical to these individuals.

                      Gen Y is also bringing new approaches to the issue of ethics, the environment, and social
                      responsibility in the workplace. They are more likely to want to work for firms that have
                      a good reputation for ethical and environmental performance, and they are ready to tell
                      others when their employer is doing well or doing poorly. They are acutely sensitive to the
                      changing fortunes of brands and the way in which social, ethical, and cultural influences can
                      enhance or destroy corporate reputation.




10
The issues of career paths, responsibility, and promotion frequently arise in regard to Gen Y.
Some say they are overly ambitious, even impatient. What is apparent is a significant focus
on making the most of opportunities and advancing one’s career. This can impact decisions
around job stability and tenure.

The task of recruiting and managing these latest entrants can seem bewildering, especially
for those whose approaches are based on old notions of command and control. The
benefits of diversity in the workplace are well-documented and Gen Y brings a rich
opportunity to challenge established notions, refresh practices, and tap into new thinking,
technologies, and attitudes.

Understanding the varying needs of the different generations—everything from
communication style, management techniques, and organizational structures—becomes
important if everyone’s needs are to be met. When they are, there is more likely to be a
high-performing workplace.

HR managers and employers worldwide—some with more success than others—are
adapting to these behaviors and striving to get the best out of this diversity that
characterizes the modern workplace. Critical to recruiting this generation is an
understanding of their social and cultural drivers, something which is beyond many HR
organizations today. Additionally, once employees are hired, a renewed focus on employee
engagement must be put in place.




                                                                                                 11
03
The rise of the free agent

 Those who describe themselves as self-employed are a rising share of
 the workforce in many industrialized economies. They have redefined
 the orthodoxy of lifelong employment to one of lifelong employability.




                                                                          13
03    The rise of the
                            free agent




If key people Can      One of the most important workforce trends of the past two decades has been the rise
jump fRom one          of a new breed of independent free agents—consultants, freelancers, contractors, and
                       ‘micropreneurs.’ Many of these are professionals who have been dislodged from salaried
assIgnmenT To
                       careers as a consequence of business restructuring and economic upheaval.
THe nexT, How do
                       They may have been laid off from well-paid full-time jobs in the 1990s recession, or the
oRganIzaTIons
                       most recent global downturn. Instead of waiting for new opportunities to come to them,
ReTaIn THe CRITICal
                       they have started up their own businesses, providing services to clients on a project-by-
TalenT THaT            project basis.
pRovIdes THeIR
                       In the United States alone, there are an estimated 10 million self-employed individuals, and
CompeTITIve            almost 22 million non-employer firms, or businesses with no payroll. They are operating
advanTage?             across a vast range of industries, with the greatest numbers in the services sector.




                                                                            Non-employer Businesses (United States)
                                                                                                       Number of businesses without paid employees, 2007
                       3,500,000


                       3,000,000

                                                                                                                                                                                                                                                                    Total all sectors = 21.7 million
                       2,500,000


                       2,000,000


                       1,500,000


                       1,000,000


                        500,000


                              0
                                                                                                                                                                                                                                                                                                                                           Agriculture, forestry,
                                   Professional services


                                                           Other services


                                                                             Construction

                                                                                            Real estate, rental,




                                                                                                                                                                                      recreation
                                                                                                        leasing


                                                                                                                   Retail trade


                                                                                                                                      Administrative,
                                                                                                                                  waste management

                                                                                                                                                            Health care,
                                                                                                                                                        social assistance

                                                                                                                                                                            Arts, entertainment,


                                                                                                                                                                                                   Transportation,
                                                                                                                                                                                                      warehousing


                                                                                                                                                                                                                     Finance and insurance


                                                                                                                                                                                                                                             Educational services


                                                                                                                                                                                                                                                                       Wholesale trade


                                                                                                                                                                                                                                                                                         Manufacturing


                                                                                                                                                                                                                                                                                                          Information


                                                                                                                                                                                                                                                                                                                        Accommodation,
                                                                                                                                                                                                                                                                                                                           food services


                                                                                                                                                                                                                                                                                                                                                          fishing

                                                                                                                                                                                                                                                                                                                                                                    Mining, quarrying,
                                                                                                                                                                                                                                                                                                                                                                           oil and gas




                                                                                                                                                                                                                                                                                                         Source: U.S. Census Bureau




14
Those who describe themselves as self-employed are a rising share of the workforce in
many industrialized economies. They have redefined the orthodoxy of lifelong employment
to one of lifelong employability. How then, can an HR organization find, let alone recruit,
such talent?

As more people go solo, they need to become more flexible, entrepreneurial, and
responsive to the needs of the market. They take on personal responsibility for updating
their skills and staying relevant. They do not operate under the security of permanent
employment and thus need to think afresh about the skill sets that will sustain them for the
long haul.

There are relatively few people in today’s labor market who can honestly say that they have
job security or, in some cases, employer loyalty—certainly not in the same sense as applied
in a previous era. Now, the emphasis is on attaining the skills that will allow for lifelong
learning as a pathway to long-term employability.

The rise of this contingent workforce is also shaping new patterns of business behavior
around HR practice. The recruitment of staff needs to account for the shifting needs of
business, and the availability of a pool of workers with specific expertise suited to particular
projects. Assignments can be for a period of weeks or months. The needs of this market are
different from those of a permanent workforce, and HR professionals need new skill sets to
understand and manage a contingent workforce that may be spread across different states,
countries, and time zones.

It’s been described as the age of the ‘disposable worker’ or the ‘permanent temporary’
workforce. As organizations look to cut back on fixed costs, they have put the razor through
a wide range of employment benefits, and now have turned it on the jobs themselves.




                                                                                                   15
03   The rise of the
          free agent




      For employers, this ushers a new era of flexibility, with all the benefits that brings. But it also
      heralds a much more complex way of managing organizational talent. If key people can
      jump from one assignment to the next, how do organizations retain the critical talent that
      provides their competitive advantage? How do they protect the knowledge and IP that can
      slip out the door? How do they go about accessing the talent they need across the globe,
      juggling myriad legal, financial, and regulatory issues across jurisdictions?

      For employees, it entails a new approach to upgrading, deploying, and marketing their
      skills. They need to be alert to changes in the market that can open up new business
      opportunities, or ones which can make them redundant. This can impact the types of
      assignments they select. Those that enhance their skills or their reputation can be a win-win
      for both parties.

      The task of grappling with a shifting contingent labor force, while safeguarding critical
      knowledge, and maintaining morale in the permanent workforce, will be one of the key
      challenges of the coming decade.




16
04
Technology: friend or foe?

 Technology provides speed to market, however, recruiting and
 sourcing skills are still ultimately the driving factor in success. Having
 the right tools in your toolbox simply helps you get there faster.




                                                                              17
04   Technology: friend
                             or foe?




a key elemenT of         The days of help-wanted signs and newspaper job ads have passed, replaced by a vast
THe emeRgIng HR          array of platforms and technologies that are transforming the recruitment landscape.
                         People are on the move, and the use of electronic and social networking tools are enabling
paRadIgm, wITH ITs
                         recruiters and candidates with innovative ways of reaching their targets—people’s lifestyles
ConveRgenCe InTo
                         have changed and recruiters need to continually evolve to stay relevant.
soCIal medIa, enTaIls
                         The ready availability of these applications has led to a leveling of the playing field:
a moRe foCused,
                         organizations with media power and large advertising budgets are competing with no-
sTRaTegIC, and           cost or low-cost blogs or webcams to post information. In this environment, it is not so
non-TRadITIonal          much about the technology, but the appeal of sophisticated and savvy strategies that
appRoaCH To              penetrate the electronic noise, able to reach potential candidates, both active and passive.
                         Technology provides speed to market, however, recruiting and sourcing skills are still
ReaCHIng key
                         ultimately the driving factor in success. Having the right tools in your toolbox simply helps
audIenCes.               you get there faster.

                         This raises the issue of what the contemporary HR practitioner needs to do to adapt to this
                         new digital environment. What follows are just some of the techniques that are currently,
                         and increasingly, likely to be deployed in the recruitment space, and must be mastered in
                         order to tap into the increasingly sophisticated labor pool:

                         •	 Use	of	niche	web	sites	rather	than	general	job	boards,	which	have	become	flooded	with	
                            resumes and frequently do not focus on any one industry or passive candidate. Niche
                            sites also provide better targeting of candidates with industry expertise.

                         •	 Making	social	media	a	part	of	the	recruiter’s	toolbox.	Sites	such	as	Facebook,	XING,	
                            and LinkedIn, among others, are becoming a focal point and must be updated with
                            information and communications on an increasingly frequent basis to remain a part of
                            the evolving conversational landscape.




18
•	 Use	of	company-	or	recruiter-specific	LinkedIn	profiles,	which	are	regularly	updated	with	
   information on the company, including upcoming job expos and industry events.

•	 Authoring	or	sponsoring	industry-specific	white	papers,	posted	to	company	or	industry	
   websites, linked to advertising, blogs, and social media.

•	 Developing	and	presenting	webcasts	that	showcase	company	attributes,	industry	trends,	
   products, issues, or best practice.

•	 Blogging	in	places	that	potential	candidates	and	industry	experts	are	likely	to	visit,	and	
   use of micro-blogging platforms like Twitter to reach target groups.

•	 Automating	sourcing	efforts	with	web	tools	and	products	that	allow	recruiters	more	time	
   to communicate directly with candidates and their hiring managers.

•	 Use	of	internal	applicant	tracking	systems	(ATS).	Many	companies	have	access	to	
   an ideal database yet often neglect this as a sourcing tool. Previously considered
   candidates who are not qualified for one position may be qualified for a current
   opening.

•	 Building	a	passive	candidate	database	though	online	searches	and	use	of	sites	like	
   resumeblaster.com or resumezapper.com, to name a few.

•	 Lastly,	the	age-old	practice	of	‘smiling	and	dialing’	or	cold	calling,	and	maintaining	
   personal rapport with experts in the industry who may be added to your database or
   provide referrals.




                                                                                                 19
04   Technology: friend
          or foe?




      A key element of the emerging HR paradigm, with its convergence into social media, entails
      a more focused, strategic, and non-traditional approach to reaching key audiences—which
      may be a difficult task, given the increasing demands on the HR professional to focus on
      strategic versus tactical imperatives. Often, HR generalists and even recruiting specialists
      simply don’t have the time to stay abreast of all the tools, master the technologies, and
      use them effectively. When effort is put into learning the systems and tools, beware that
      knowledge leaves when your in-house expert leaves your company.

      By using industry expertise and thought leadership as a tool, capable recruiters cut through
      the clutter that permeates much of the traditional media, and engage in interactions that
      can uncover exceptional talent. This can be time-consuming, but for those proficient in
      such techniques, it brings results and can be successful in reaching into talent pools that are
      typically resistant to more traditional approaches.




20
05
globalization is here to stay

 Globalization has been advancing at a hectic pace in recent decades, fueled
 by greater international mobility, prosperity in the developed world, and a
 communications revolution that has transformed the exchange of information.




                                                                               21
05   globalization is
                             here to stay




In a RelaTIvely sHoRT    The march of globalization has spread across a range of markets as diverse as motor
spaCe of TIme, HR        vehicles, natural resources, energy, and food. Labor is the latest ‘market’ to be engulfed by
Has moved fRom           the tide of globalization, as human talent becomes a fluid and exchangeable asset across
                         international borders.
a ComfoRTable
posITIon In wHICH        The concept of globalization often attracts bad press. The image of hooded protesters
THe boundaRIes           hurling objects through the plate glass of McDonald’s® at a G20 summit is the ugly face
                         of the trend. But globalization, as a phenomenon, has been advancing at a hectic pace in
of ITs woRk weRe
                         recent decades, fueled by greater international mobility, prosperity in the developed world,
defIned by dIsTanCe,
                         and a communications revolution that has transformed the exchange of information.
To one wHeRe THe
                         Distance is no longer the obstacle it used to be in the pre-digital era. In many industries, a
TalenT pool Is
                         trained professional in, for example, Guangzhou can easily supplant a similar professional in
lITeRally global,
                         New York or Dubai. In certain industries where skills are highly transferrable, there is little to
and may be souRCed
                         stop workers from being recruited for assignments in any location around the world.
fRom anywHeRe.
                         This is truly revolutionizing the way that we search for, locate, and deploy talent. There are
                         still clearly many jobs that require a central locality. But there are an increasing array of jobs,
                         and elements of jobs, that can be tasked to individuals in any part of the globe.

                         E-health means that diagnostic tools can be accessed by patients and health professionals
                         remotely; scientific research is becoming highly internationalized; in construction and
                         manufacturing, standardized CAD techniques mean the design elements can be outsourced
                         to wherever they can be performed competitively. In the growing knowledge economy,
                         there is virtually no limit to the breadth and scale of functions that are open to globalization.

                         All this presents a unique challenge to the HR profession. In a relatively short space of time,
                         it has moved from a comfortable position in which the boundaries of its work were defined
                         by distance, to one where the talent pool is literally global, and may be sourced from
                         anywhere.

                         This issue raises a new hurdle for the HR organization: workforce virtualization. With the
                         growing use of these technologies, HR is faced with a decision of whether to move the




22
work, or the worker. In many cases, the work can be performed anywhere that skilled
talent exists rather than the worker having to be on-site. Workforce virtualization allows an
organization to source talent globally, but tasks IT to have an efficient, cost-effective, and
workable solution that may not yet be ready to address the problem that HR has identified.

Companies realize the potential of tapping into a vast global labor pool, especially at times
of talent shortage. They are heading in this direction and will need their HR partners to
show them the way. HR will be expected to become proficient with a range of technologies
and platforms that support an ever-broadening set of functions. They will also need
knowledge of labor markets, cultural differences, key recruiting methods, and labor laws in
a variety of different jurisdictions, requiring a level of expertise that many HR departments
have never been called on to provide.

This is a task that frequently tests many medium and even large organizations with a
wellresourced HR function, yet it is becoming a routine element of the job. It will require
practitioners who are able to exploit networks and resources across multiple locations,
and who can apply the best of their knowledge to the benefit of a local enterprise. It may
also require the organization to be willing to explore outsourcing certain HR functions to
providers with the global reach to enable their HR strategies.




                                                                                                 23
06
making HR a strategic priority

 HR practitioners are being charged to engage more in strategic
 business issues of central importance to core direction and strategy.




                                                                         25
06   making HR a
                          strategic priority




HR pRaCTITIoneRs      One of the most important chapters in the evolution of HR concerns the way it is being
aRe THInkIng moRe     forced to move to the center of organizational strategy.

lIke CoRp oRaTe       For a long period, HR has largely occupied a position on the periphery of strategic
exeCuTIves, movIng    decisionmaking in the enterprise, primarily as just another functional department. For the
                      most part, it has not been fully enmeshed in a central strategic role of corporate life.
ouT of THe HR
sIlo and puTTIng      This is somewhat hard to follow when one considers the frequency of the refrain, “people
                      are our most important asset.” If this were truly the case, HR would be closer to the
THemselves In THe
                      corporate heart, not on its margin.
mInd of THose wHo
                      The HR profession as a whole must take much of the blame for this. In the past, it has
aRe guIdIng THe
                      relegated itself to the limited value added around staff acquisition and benefits, and has not
oRganIzaTIon.
                      been able to move up the value chain in keeping with the transformation that is occurring in
                      global labor markets.

                      That operational direction, however, is rapidly changing: HR practitioners are being
                      charged to engage more in strategic business issues of central importance to core direction
                      and strategy.

                      HR is moving through a process of transformation. Practitioners are thinking more like
                      corporate executives, moving out of the HR silo and putting themselves in the mind of
                      those who are guiding the organization—indeed, frequently taking a seat at the
                      executive table.

                      This transformation will be harder for some. Essentially it requires taking a bird’s-eye view of
                      the strategic issues impacting the business, considering how different parts of the business
                      link together, and what part people play from top to bottom.

                      It will entail putting aside the narrow metrics of HR and focusing instead on broader
                      business outcomes. It will mean thinking how the ‘people element’ adds value at every
                      stage of the organization, and the factors that both enhance and dilute value.

                      This strategic shift comes at a price: HR practitioners will need to develop a broader
                      business understanding in areas such as corporate finance, marketing, and strategic
                      management. They may need to spend time in areas outside HR to better appreciate how
                      functional divisions interact as part of the big picture. HR must know business as well as it
                      knows HR.




26
07
maximizing recruiting efficiencies through outsourcing

 Increasingly, HR organizations of all sizes have been shifting their
 focus to outsourcing the recruiting and screening function.




                                                                        27
07   maximizing recruiting efficiencies
                            through outsourcing




ouTsouRCIng fRees       HR is all about people, but it’s often easy to become swamped by processes and technologies.
HR pRofessIonals        In media reporting of corporate issues, we frequently hear of financial problems or operational
                        problems, but not often HR problems.
To addRess THe
InCReasIngly            Increasingly, HR organizations of all sizes have been shifting their focus to outsourcing the
                        recruiting and screening function. Recognizing the need to take a more strategic approach to
Complex meTa-
                        their role within the organization, they realize they cannot (and should not) be all things to all
TRends affeCTIng
                        people. This doesn’t mean throwing in the towel. Outsourcing allows an organization to manage
THeIR IndusTRy, and     and participate where needed, while still providing maximum flexibility.
To Have a laseR-lIke
                        They will also need to consider how they can best add value. The complexity of the HR landscape
foCus on HIgHeR-        means that many HR professionals are becoming bogged down in transactional tasks, at the
level ImpeRaTIves.      expense of more strategic priorities. Much of the work around hiring is largely tactical, but it is
                        also increasingly complex, and moving beyond the capacity of some HR managers. These are the
                        type of jobs that are ripe for being outsourced.

                        Outsourcing some of the functionality can free time and resources for HR people to start to look
                        at how they are meeting more important corporate goals.

                        They will then be in a position to play a more strategic and valued role, availing themselves of
                        data and metrics that provide new levels of insight into HR performance and its contribution to
                        organizational results. Once removed from the straightjacket of ‘process HR’ they will be able to
                        step into the field of ‘clever HR,’ where they can utilize their knowledge in ways that are directly
                        relevant to decision-makers.

                        Armed with a range of key performance measures, HR can become the repository of critical
                        human capital intelligence, relevant and valued.

                        One of the ironies is that many HR departments devote a relatively small amount of time to
                        the recruitment function. Even during periods of labor shortage, they are so burdened with
                        transactional work that recruitment—arguably the most pressing task—is given too little attention.

                        It will be a matter for individual organizations to determine the scope of any outsourcing decision,
                        but it seems clear that this path is increasingly being taken to liberate HR as it grapples with a
                        multitude of issues. The steady growth of Recruitment Process Outsourcing (RPO) as a specialized
                        industry supporting the HR function is testimony to this.

                        Outsourcing frees HR professionals to address the increasingly complex and fast-altering meta-
                        trends affecting their industry, and to have a laser-like focus on higher-level imperatives. This trend
                        is being replicated across the globe, as witnessed by the growing number and prevalence of
                        providers focusing on the recruitment process.
28
Conclusion



The landscape for the HR profession is rapidly changing, and raising questions about the
way the industry adapts to meet a series of landmark events.

There is nothing new in the need to change—professionals across scores of industries have
had to rethink the way they work in order to meet business trends and new technologies.

Yet new ways of thinking about recruiting and sourcing labor seem to have ushered in a
sequence of reforms that have fundamentally re-ordered the way that HR has functioned
for decades. RPO in its ideal state can provide HR with the best of both worlds: a means
to ensure that their organizations find and place top talent, while at the same time freeing
them to focus on more strategic initiatives.

This means that incremental change will likely not suffice to meet the challenges ahead.
HR professionals will be required to simultaneously confront demands across areas
encompassing technology, demographics, and generational behavior.

Only as a result of these actions will HR leaders be able to take their profession up the value
chain, and deliver a talent management strategy that aligns with the workforce solutions
modern business needs—now more than ever.




                                                                                                  29
about the authors



     Lance Jensen Richards

     Lance Jensen Richards is senior director and global practice leader of the Human Resources
     Consulting (HRC) practice of Kelly Outsourcing and Consulting Group (KellyOCG).

     In his current post since 2008, Richards has overall accountability for KellyOCG’s HRC
     practice on a global basis, in addition to providing thought leadership, business planning,
     and strategic direction. The HRC activity delivers a wide range of HR solutions to Kelly
     clients worldwide. Its service lines include strategic workforce planning, global mobility,
     training and education, and human resources consulting. Prior to his current position,
     Richards was senior director of international human resources for Kelly Services®, a role that
     included managing operations globally.

     Before joining the Kelly® organization in 2003, Richards was managing director and co-
     founder of Suddenly Global LLC, a Washington, D.C.-based international human resources
     consultancy. Prior to that, he was director of global human resources for Teleglobe, the
     global networking, Internet, and data services arm of Bell Canada Enterprises.

     Earlier in his career, Richards held executive posts at Verizon International, including director
     of international staffing and country director of human resources for Verizon China. He was
     also manager of human resources – Asia/Pacific for the North American subsidiaries of British
     Telecom. Educated at the University of Georgia in Athens, GA, Richards holds a bachelor’s
     degree in communications theory.

     An internationally sought-after speaker on globalization and workforce strategy, Richards
     has presented at human resources conferences, seminars, and universities around the world.
     He currently is a visiting professor of human resource management at the Sasin Graduate
     Business School of Chulalongkorn University in Bangkok.

     Richards sits on the talent strategy board for the Human Capital Institute, and serves as an
     instructor for the Society for Human Resource Management (SHRM) global human resources
     certification preparation course, which is taught internationally. Additionally, he has served
     on the board of directors for SHRM’s global forum and its global expertise panel.

     He has been a scheduled editorial columnist in Personnel Today magazine and his
     commentary on global human resources issues has been featured in European
     Business Review.




30
about the authors



D. Zachary misko

D. Zachary Misko is global director of the Recruitment Process Outsourcing (RPO) practice of
Kelly Outsourcing and Consulting Group (KellyOCG). The group is part of Kelly Services, Inc.
(NASDAQ: KELYA, KELYB), a leader in providing workforce solutions, headquartered in Troy, MI.

In this role, Misko works with Fortune 500® companies throughout the world to develop and
implement processes that improve and drive recruitment and retention solutions. Misko joined
Kelly Services in 2002 with more than 15 years of human resource and management expertise in
areas including direct merchant, retail, biotechnology, life sciences, and staffing services. Within
these industries, Misko held various positions in the areas of recruitment, employment law,
employee relations, consulting, strategic human resources planning, performance management,
training, and compensation. His experience includes managerial posts at several companies:
Promega Corporation, Lands’ End, and Younkers, Inc.

Misko has earned many professional certifications, including Certified Diversity Recruiter (CDR),
Certified Internet Recruiter (CIR), and Professional in Human Resources (PHR). He has also completed
advanced certification from the Department of Industry, Labor, and Human Relations.

Misko holds a bachelor’s degree in business administration with an emphasis in human resources
from Carroll College in Waukesha, Wisconsin. He is currently a member of the Society for
Human Resource Management (SHRM), the Employers Management Association (EMA), and
the National Association of Personnel Services (NAPS). He is a past president of the Metro
Milwaukee SHRM chapter. He is considered an industry expert in applying Lean methodologies
in the talent acquisition process.

Currently, Misko is a senior executive board member of Best Practice Institute (BPI) and serves
on the Advisory Board for EnticeLabs. He is also co-chair of the Human Resource Outsource
Association (HROA) Research Committee and a member of the Human Resource Outsource
Association (HROA) Outreach and Education Committee. He has had articles published in many
print and online publications, including Workforce Management magazine, HRO Today, Human
Resource Executive magazine, and HR.com. Misko is a contributing author to the book, “Best
Practices in Talent Management,” published in December 2009.




                                                                                                       31
About Kelly Outsourcing and consulting Group

KellyOCG is a global leader in innovative talent management solutions in the areas of Recruitment
Process Outsourcing (RPO), Business Process Outsourcing (BPO), Human Resources Consulting,
Career Transition and Organizational Effectiveness Consulting, Executive Search, and Contingent
Workforce Outsourcing (CWO), which includes Independent Contractor Solutions. Further
information about KellyOCG may be found at kellyocg.com.
All trademarks are property of their respective owners. © 2010 Kelly Services, Inc.




kellyocg.com

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Seven seismic shifts reshaping strategic HR

  • 1. seven seismic shifts Trends shaking the HR profession and reshaping strategic HR value kellyocg.com
  • 2.
  • 3. Contents introduction / 4 01 the demographics are turning hostile / 5 02 the millenials are rewriting the rules / 9 03 the rise of the free Agent / 13 04 technology: friend or foe? / 17 05 Globalization is here to stay / 21 06 making hR a strategic priority / 25 07 maximizing recruiting efficiencies through outsourcing / 27 conclusion / 29 3
  • 4. Introduction As businesses across the globe evaluate and continue to assess their recruitment needs, HR departments are being confronted by a daunting array of challenges. On one hand, in the aftermath of historical highs in unemployment, there is supposed to be an abundance of talent—yet attracting the best people is more difficult than ever. Additionally, those current employees who are dissatisfied in their roles will be looking to jump ship at the first available opportunity. A proliferation of new social networking and database technologies is transforming the way people look for work. As importantly, technology has changed the way companies and recruiters must now engage in seeking out and recruiting passive candidates. And a new generation of independent, transient, and globalized workers in the burgeoning knowledge economy is creating new rules around hiring and engagement. At the same time, there is unprecedented pressure on HR to lift its game, and become more aligned to the key strategic drivers of business performance. Measurement of HR performance is shifting and becoming more demanding, requiring practitioners to demonstrate their contribution to high-level corporate goals, not just operational outputs. These forces are converging at a stage when many corporate executives who look at HR think its job should be relatively straightforward. From a talent acquisition standpoint, “With so much talent on the market, why is it so hard to attract and retain the right people?” These are the key imperatives facing the HR profession worldwide. This is not simply a shortterm cycle, but part of a longer-term trend that is shaping the fundamental way that people think about work and interact with employers, families, and communities. This paper examines the seven meta-trends that are shaping the new workforce, and provides insight into how the role of HR is being severely stressed to meet the needs of business and commerce in the 21st century. 4
  • 5. 01 The demographics are turning hostile Despite the availability of people, hiring managers in some large organizations are seeing the re-emergence of talent shortages even in the early phase of economic recovery. 5
  • 6. 01 The demographics are turning hostile THIs Is noT a Recent events have seen national economies shudder to a halt, and with that, a sudden sHoRTage of people, shift in the critical labor shortages that had plagued developed economies for more than a decade. With millions of workers having lost their jobs in recent years, the basic buT a sHoRTage of rule of numbers would suggest that labor supply should be plentiful. And while it is true qualIfIed people, that unemployment levels in many countries remain at historical highs, the issue facing aT a TIme wHen HR organizations is an increasingly critical talent shortage—those individuals who bring woRkplaCes aRe education and occupational skills to an organization that can make an immediate and demandIng HIgHeR lasting impact. levels of skIll and Despite the availability of people, hiring managers in some large organizations are seeing knowledge. the re-emergence of talent shortages even in the early phase of economic recovery. As economic growth gathers pace, shortages in certain industries are appearing almost as acute as before the economic collapse. In some areas of healthcare, science, and IT the talent shortage never actually disappeared, and those remain highly challenging environments for recruiting. So what’s happening? Essentially, we are entering a phase in the demographic cycle that will be characterized by chronic talent shortages in certain sectors over the long haul. It is part of a longer-term trend dictated by population cycles. Population growth in major economies is below replacement rates, meaning there will be increasingly fewer people of traditional working age, relative to the older population. The total fertility rate (TFR) is a measure of the number of births per woman in the population and serves as a proxy for population growth. A rate of 2.3 children per woman is generally considered the replacement rate in developing counties, while 2.1 is the rate in developed economies. Above this rate a population is increasing and below, it is generally falling. 6
  • 7. Fertility rates are in sharp decline in the vast majority of industrialized countries, while they are growing significantly in many underdeveloped countries. Unfortunately, many of the countries with fast-growing populations do not have the educational infrastructure to develop a level of skilled labor that can be readily substituted for the shortfall in industrialized countries. This results in a paradox: we may see high unemployment while at the same time recognizing a global shortage of talent. This paradox may be more or less pronounced based on sector, but it is an inevitable emerging trend. 8 7 Total Fertility Rate Selected countries, 2009 (births per woman) 6 5 4 3 Replacement Rate (2.3) 2 1 0 Niger Ethiopia Chad Yemen Kenya Iraq Saudi Arabia Jordan Pakistan Philippines Syria Malaysia Israel India South Africa Mexico Brazil New Zealand United States Chile Ireland China Australia Denmark Sweden Netherlands United Kingdom Canada Switzerland Germany Italy Spain Japan Singapore Hong Kong Source: CIA World Factbook 2009 7
  • 8. 01 The demographics are turning hostile The trend is marked and becoming more acute. There is a limited global pool of skilled labor which is becoming more scarce each year. This is not a shortage of people, but a shortage of qualified people, at a time when workplaces are demanding higher levels of skill and knowledge. Even at times of relatively high unemployment, employers face difficulty in obtaining the best talent. So while conditions may have eased the headline skills shortage, they have really only provided a reprieve from the long-run trend of tighter labor supply. This is the new operating reality for the human resources profession. HR people will need to keep recruiting irrespective of short-term cycles. The best-educated and skilled technical and professional employees will be in greater demand, harder to find, and command a premium to switch or re-locate jobs. Just as entire countries modify their national immigration policies to counter this trend, companies seeking highly skilled talent will need to consider strategies that will enable them to circumvent this demand-supply impasse. Of all the forces that are converging on HR managers, few will be as daunting as this demographic shift, simply because it is virtually locked in for at least the next 30 years. 8
  • 9. 02 The millenials are rewriting the rules While Gen X and baby boomers have the greatest direct experience in the global business environment, Gen Y is becoming the driving force for change. 9
  • 10. 02 The millenials are rewriting the rules THe benefITs of The influx of Gen Y, or the Millenials, into the workforce is changing many of the ground dIveRs ITy In TH e rules that prevailed for Gen X and baby boomers. Gen Y has entered the workforce with different attitudes, expectations, and ambitions. There are identifiable traits and woRkplaCe aRe attitudes that range across issues of job selection, tenure, work-life balance, remuneration, well-doCumenTed promotion, and not least, the use of technology. and gen y bRIngs a Referring to that group born roughly between the mid–70s and the year 2000, Gen Y is the RICH oppoRTunITy first truly globalized generation of workers. They have grown up with technologies that have To CHallenge shrunk the workplace, expanded their horizons, and made them feel comfortable operating esTablIsHed in a borderless world. For them, the digital workplace means dealing with colleagues from noTIons, RefResH different cultures in different time zones. pRaCTICes, and Tap While Gen X and baby boomers have the greatest direct experience in the global business InTo new THInkIng, environment, Gen Y is becoming the driving force for change. They see global experience as a positive differentiator in job selection and promotion. TeCHnologIes, and aTTITudes. For Gen Y, the lines between work and personal life are blurred. They are the first generation that’s been raised in a 24/7 environment. The communications revolution has made that possible, and Gen Y doesn’t view it as a burden. Issues around work-life balance become important because in an environment where work and social life are ill-defined, there needs to be some level of compromise. The workplace itself is evolving to meet some of these requirements. For the Millenials, the workplace is not solely about work—it is a place for social interaction and shared learning. Workplace culture, relationship building, and ongoing learning is critical to these individuals. Gen Y is also bringing new approaches to the issue of ethics, the environment, and social responsibility in the workplace. They are more likely to want to work for firms that have a good reputation for ethical and environmental performance, and they are ready to tell others when their employer is doing well or doing poorly. They are acutely sensitive to the changing fortunes of brands and the way in which social, ethical, and cultural influences can enhance or destroy corporate reputation. 10
  • 11. The issues of career paths, responsibility, and promotion frequently arise in regard to Gen Y. Some say they are overly ambitious, even impatient. What is apparent is a significant focus on making the most of opportunities and advancing one’s career. This can impact decisions around job stability and tenure. The task of recruiting and managing these latest entrants can seem bewildering, especially for those whose approaches are based on old notions of command and control. The benefits of diversity in the workplace are well-documented and Gen Y brings a rich opportunity to challenge established notions, refresh practices, and tap into new thinking, technologies, and attitudes. Understanding the varying needs of the different generations—everything from communication style, management techniques, and organizational structures—becomes important if everyone’s needs are to be met. When they are, there is more likely to be a high-performing workplace. HR managers and employers worldwide—some with more success than others—are adapting to these behaviors and striving to get the best out of this diversity that characterizes the modern workplace. Critical to recruiting this generation is an understanding of their social and cultural drivers, something which is beyond many HR organizations today. Additionally, once employees are hired, a renewed focus on employee engagement must be put in place. 11
  • 12.
  • 13. 03 The rise of the free agent Those who describe themselves as self-employed are a rising share of the workforce in many industrialized economies. They have redefined the orthodoxy of lifelong employment to one of lifelong employability. 13
  • 14. 03 The rise of the free agent If key people Can One of the most important workforce trends of the past two decades has been the rise jump fRom one of a new breed of independent free agents—consultants, freelancers, contractors, and ‘micropreneurs.’ Many of these are professionals who have been dislodged from salaried assIgnmenT To careers as a consequence of business restructuring and economic upheaval. THe nexT, How do They may have been laid off from well-paid full-time jobs in the 1990s recession, or the oRganIzaTIons most recent global downturn. Instead of waiting for new opportunities to come to them, ReTaIn THe CRITICal they have started up their own businesses, providing services to clients on a project-by- TalenT THaT project basis. pRovIdes THeIR In the United States alone, there are an estimated 10 million self-employed individuals, and CompeTITIve almost 22 million non-employer firms, or businesses with no payroll. They are operating advanTage? across a vast range of industries, with the greatest numbers in the services sector. Non-employer Businesses (United States) Number of businesses without paid employees, 2007 3,500,000 3,000,000 Total all sectors = 21.7 million 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0 Agriculture, forestry, Professional services Other services Construction Real estate, rental, recreation leasing Retail trade Administrative, waste management Health care, social assistance Arts, entertainment, Transportation, warehousing Finance and insurance Educational services Wholesale trade Manufacturing Information Accommodation, food services fishing Mining, quarrying, oil and gas Source: U.S. Census Bureau 14
  • 15. Those who describe themselves as self-employed are a rising share of the workforce in many industrialized economies. They have redefined the orthodoxy of lifelong employment to one of lifelong employability. How then, can an HR organization find, let alone recruit, such talent? As more people go solo, they need to become more flexible, entrepreneurial, and responsive to the needs of the market. They take on personal responsibility for updating their skills and staying relevant. They do not operate under the security of permanent employment and thus need to think afresh about the skill sets that will sustain them for the long haul. There are relatively few people in today’s labor market who can honestly say that they have job security or, in some cases, employer loyalty—certainly not in the same sense as applied in a previous era. Now, the emphasis is on attaining the skills that will allow for lifelong learning as a pathway to long-term employability. The rise of this contingent workforce is also shaping new patterns of business behavior around HR practice. The recruitment of staff needs to account for the shifting needs of business, and the availability of a pool of workers with specific expertise suited to particular projects. Assignments can be for a period of weeks or months. The needs of this market are different from those of a permanent workforce, and HR professionals need new skill sets to understand and manage a contingent workforce that may be spread across different states, countries, and time zones. It’s been described as the age of the ‘disposable worker’ or the ‘permanent temporary’ workforce. As organizations look to cut back on fixed costs, they have put the razor through a wide range of employment benefits, and now have turned it on the jobs themselves. 15
  • 16. 03 The rise of the free agent For employers, this ushers a new era of flexibility, with all the benefits that brings. But it also heralds a much more complex way of managing organizational talent. If key people can jump from one assignment to the next, how do organizations retain the critical talent that provides their competitive advantage? How do they protect the knowledge and IP that can slip out the door? How do they go about accessing the talent they need across the globe, juggling myriad legal, financial, and regulatory issues across jurisdictions? For employees, it entails a new approach to upgrading, deploying, and marketing their skills. They need to be alert to changes in the market that can open up new business opportunities, or ones which can make them redundant. This can impact the types of assignments they select. Those that enhance their skills or their reputation can be a win-win for both parties. The task of grappling with a shifting contingent labor force, while safeguarding critical knowledge, and maintaining morale in the permanent workforce, will be one of the key challenges of the coming decade. 16
  • 17. 04 Technology: friend or foe? Technology provides speed to market, however, recruiting and sourcing skills are still ultimately the driving factor in success. Having the right tools in your toolbox simply helps you get there faster. 17
  • 18. 04 Technology: friend or foe? a key elemenT of The days of help-wanted signs and newspaper job ads have passed, replaced by a vast THe emeRgIng HR array of platforms and technologies that are transforming the recruitment landscape. People are on the move, and the use of electronic and social networking tools are enabling paRadIgm, wITH ITs recruiters and candidates with innovative ways of reaching their targets—people’s lifestyles ConveRgenCe InTo have changed and recruiters need to continually evolve to stay relevant. soCIal medIa, enTaIls The ready availability of these applications has led to a leveling of the playing field: a moRe foCused, organizations with media power and large advertising budgets are competing with no- sTRaTegIC, and cost or low-cost blogs or webcams to post information. In this environment, it is not so non-TRadITIonal much about the technology, but the appeal of sophisticated and savvy strategies that appRoaCH To penetrate the electronic noise, able to reach potential candidates, both active and passive. Technology provides speed to market, however, recruiting and sourcing skills are still ReaCHIng key ultimately the driving factor in success. Having the right tools in your toolbox simply helps audIenCes. you get there faster. This raises the issue of what the contemporary HR practitioner needs to do to adapt to this new digital environment. What follows are just some of the techniques that are currently, and increasingly, likely to be deployed in the recruitment space, and must be mastered in order to tap into the increasingly sophisticated labor pool: • Use of niche web sites rather than general job boards, which have become flooded with resumes and frequently do not focus on any one industry or passive candidate. Niche sites also provide better targeting of candidates with industry expertise. • Making social media a part of the recruiter’s toolbox. Sites such as Facebook, XING, and LinkedIn, among others, are becoming a focal point and must be updated with information and communications on an increasingly frequent basis to remain a part of the evolving conversational landscape. 18
  • 19. • Use of company- or recruiter-specific LinkedIn profiles, which are regularly updated with information on the company, including upcoming job expos and industry events. • Authoring or sponsoring industry-specific white papers, posted to company or industry websites, linked to advertising, blogs, and social media. • Developing and presenting webcasts that showcase company attributes, industry trends, products, issues, or best practice. • Blogging in places that potential candidates and industry experts are likely to visit, and use of micro-blogging platforms like Twitter to reach target groups. • Automating sourcing efforts with web tools and products that allow recruiters more time to communicate directly with candidates and their hiring managers. • Use of internal applicant tracking systems (ATS). Many companies have access to an ideal database yet often neglect this as a sourcing tool. Previously considered candidates who are not qualified for one position may be qualified for a current opening. • Building a passive candidate database though online searches and use of sites like resumeblaster.com or resumezapper.com, to name a few. • Lastly, the age-old practice of ‘smiling and dialing’ or cold calling, and maintaining personal rapport with experts in the industry who may be added to your database or provide referrals. 19
  • 20. 04 Technology: friend or foe? A key element of the emerging HR paradigm, with its convergence into social media, entails a more focused, strategic, and non-traditional approach to reaching key audiences—which may be a difficult task, given the increasing demands on the HR professional to focus on strategic versus tactical imperatives. Often, HR generalists and even recruiting specialists simply don’t have the time to stay abreast of all the tools, master the technologies, and use them effectively. When effort is put into learning the systems and tools, beware that knowledge leaves when your in-house expert leaves your company. By using industry expertise and thought leadership as a tool, capable recruiters cut through the clutter that permeates much of the traditional media, and engage in interactions that can uncover exceptional talent. This can be time-consuming, but for those proficient in such techniques, it brings results and can be successful in reaching into talent pools that are typically resistant to more traditional approaches. 20
  • 21. 05 globalization is here to stay Globalization has been advancing at a hectic pace in recent decades, fueled by greater international mobility, prosperity in the developed world, and a communications revolution that has transformed the exchange of information. 21
  • 22. 05 globalization is here to stay In a RelaTIvely sHoRT The march of globalization has spread across a range of markets as diverse as motor spaCe of TIme, HR vehicles, natural resources, energy, and food. Labor is the latest ‘market’ to be engulfed by Has moved fRom the tide of globalization, as human talent becomes a fluid and exchangeable asset across international borders. a ComfoRTable posITIon In wHICH The concept of globalization often attracts bad press. The image of hooded protesters THe boundaRIes hurling objects through the plate glass of McDonald’s® at a G20 summit is the ugly face of the trend. But globalization, as a phenomenon, has been advancing at a hectic pace in of ITs woRk weRe recent decades, fueled by greater international mobility, prosperity in the developed world, defIned by dIsTanCe, and a communications revolution that has transformed the exchange of information. To one wHeRe THe Distance is no longer the obstacle it used to be in the pre-digital era. In many industries, a TalenT pool Is trained professional in, for example, Guangzhou can easily supplant a similar professional in lITeRally global, New York or Dubai. In certain industries where skills are highly transferrable, there is little to and may be souRCed stop workers from being recruited for assignments in any location around the world. fRom anywHeRe. This is truly revolutionizing the way that we search for, locate, and deploy talent. There are still clearly many jobs that require a central locality. But there are an increasing array of jobs, and elements of jobs, that can be tasked to individuals in any part of the globe. E-health means that diagnostic tools can be accessed by patients and health professionals remotely; scientific research is becoming highly internationalized; in construction and manufacturing, standardized CAD techniques mean the design elements can be outsourced to wherever they can be performed competitively. In the growing knowledge economy, there is virtually no limit to the breadth and scale of functions that are open to globalization. All this presents a unique challenge to the HR profession. In a relatively short space of time, it has moved from a comfortable position in which the boundaries of its work were defined by distance, to one where the talent pool is literally global, and may be sourced from anywhere. This issue raises a new hurdle for the HR organization: workforce virtualization. With the growing use of these technologies, HR is faced with a decision of whether to move the 22
  • 23. work, or the worker. In many cases, the work can be performed anywhere that skilled talent exists rather than the worker having to be on-site. Workforce virtualization allows an organization to source talent globally, but tasks IT to have an efficient, cost-effective, and workable solution that may not yet be ready to address the problem that HR has identified. Companies realize the potential of tapping into a vast global labor pool, especially at times of talent shortage. They are heading in this direction and will need their HR partners to show them the way. HR will be expected to become proficient with a range of technologies and platforms that support an ever-broadening set of functions. They will also need knowledge of labor markets, cultural differences, key recruiting methods, and labor laws in a variety of different jurisdictions, requiring a level of expertise that many HR departments have never been called on to provide. This is a task that frequently tests many medium and even large organizations with a wellresourced HR function, yet it is becoming a routine element of the job. It will require practitioners who are able to exploit networks and resources across multiple locations, and who can apply the best of their knowledge to the benefit of a local enterprise. It may also require the organization to be willing to explore outsourcing certain HR functions to providers with the global reach to enable their HR strategies. 23
  • 24.
  • 25. 06 making HR a strategic priority HR practitioners are being charged to engage more in strategic business issues of central importance to core direction and strategy. 25
  • 26. 06 making HR a strategic priority HR pRaCTITIoneRs One of the most important chapters in the evolution of HR concerns the way it is being aRe THInkIng moRe forced to move to the center of organizational strategy. lIke CoRp oRaTe For a long period, HR has largely occupied a position on the periphery of strategic exeCuTIves, movIng decisionmaking in the enterprise, primarily as just another functional department. For the most part, it has not been fully enmeshed in a central strategic role of corporate life. ouT of THe HR sIlo and puTTIng This is somewhat hard to follow when one considers the frequency of the refrain, “people are our most important asset.” If this were truly the case, HR would be closer to the THemselves In THe corporate heart, not on its margin. mInd of THose wHo The HR profession as a whole must take much of the blame for this. In the past, it has aRe guIdIng THe relegated itself to the limited value added around staff acquisition and benefits, and has not oRganIzaTIon. been able to move up the value chain in keeping with the transformation that is occurring in global labor markets. That operational direction, however, is rapidly changing: HR practitioners are being charged to engage more in strategic business issues of central importance to core direction and strategy. HR is moving through a process of transformation. Practitioners are thinking more like corporate executives, moving out of the HR silo and putting themselves in the mind of those who are guiding the organization—indeed, frequently taking a seat at the executive table. This transformation will be harder for some. Essentially it requires taking a bird’s-eye view of the strategic issues impacting the business, considering how different parts of the business link together, and what part people play from top to bottom. It will entail putting aside the narrow metrics of HR and focusing instead on broader business outcomes. It will mean thinking how the ‘people element’ adds value at every stage of the organization, and the factors that both enhance and dilute value. This strategic shift comes at a price: HR practitioners will need to develop a broader business understanding in areas such as corporate finance, marketing, and strategic management. They may need to spend time in areas outside HR to better appreciate how functional divisions interact as part of the big picture. HR must know business as well as it knows HR. 26
  • 27. 07 maximizing recruiting efficiencies through outsourcing Increasingly, HR organizations of all sizes have been shifting their focus to outsourcing the recruiting and screening function. 27
  • 28. 07 maximizing recruiting efficiencies through outsourcing ouTsouRCIng fRees HR is all about people, but it’s often easy to become swamped by processes and technologies. HR pRofessIonals In media reporting of corporate issues, we frequently hear of financial problems or operational problems, but not often HR problems. To addRess THe InCReasIngly Increasingly, HR organizations of all sizes have been shifting their focus to outsourcing the recruiting and screening function. Recognizing the need to take a more strategic approach to Complex meTa- their role within the organization, they realize they cannot (and should not) be all things to all TRends affeCTIng people. This doesn’t mean throwing in the towel. Outsourcing allows an organization to manage THeIR IndusTRy, and and participate where needed, while still providing maximum flexibility. To Have a laseR-lIke They will also need to consider how they can best add value. The complexity of the HR landscape foCus on HIgHeR- means that many HR professionals are becoming bogged down in transactional tasks, at the level ImpeRaTIves. expense of more strategic priorities. Much of the work around hiring is largely tactical, but it is also increasingly complex, and moving beyond the capacity of some HR managers. These are the type of jobs that are ripe for being outsourced. Outsourcing some of the functionality can free time and resources for HR people to start to look at how they are meeting more important corporate goals. They will then be in a position to play a more strategic and valued role, availing themselves of data and metrics that provide new levels of insight into HR performance and its contribution to organizational results. Once removed from the straightjacket of ‘process HR’ they will be able to step into the field of ‘clever HR,’ where they can utilize their knowledge in ways that are directly relevant to decision-makers. Armed with a range of key performance measures, HR can become the repository of critical human capital intelligence, relevant and valued. One of the ironies is that many HR departments devote a relatively small amount of time to the recruitment function. Even during periods of labor shortage, they are so burdened with transactional work that recruitment—arguably the most pressing task—is given too little attention. It will be a matter for individual organizations to determine the scope of any outsourcing decision, but it seems clear that this path is increasingly being taken to liberate HR as it grapples with a multitude of issues. The steady growth of Recruitment Process Outsourcing (RPO) as a specialized industry supporting the HR function is testimony to this. Outsourcing frees HR professionals to address the increasingly complex and fast-altering meta- trends affecting their industry, and to have a laser-like focus on higher-level imperatives. This trend is being replicated across the globe, as witnessed by the growing number and prevalence of providers focusing on the recruitment process. 28
  • 29. Conclusion The landscape for the HR profession is rapidly changing, and raising questions about the way the industry adapts to meet a series of landmark events. There is nothing new in the need to change—professionals across scores of industries have had to rethink the way they work in order to meet business trends and new technologies. Yet new ways of thinking about recruiting and sourcing labor seem to have ushered in a sequence of reforms that have fundamentally re-ordered the way that HR has functioned for decades. RPO in its ideal state can provide HR with the best of both worlds: a means to ensure that their organizations find and place top talent, while at the same time freeing them to focus on more strategic initiatives. This means that incremental change will likely not suffice to meet the challenges ahead. HR professionals will be required to simultaneously confront demands across areas encompassing technology, demographics, and generational behavior. Only as a result of these actions will HR leaders be able to take their profession up the value chain, and deliver a talent management strategy that aligns with the workforce solutions modern business needs—now more than ever. 29
  • 30. about the authors Lance Jensen Richards Lance Jensen Richards is senior director and global practice leader of the Human Resources Consulting (HRC) practice of Kelly Outsourcing and Consulting Group (KellyOCG). In his current post since 2008, Richards has overall accountability for KellyOCG’s HRC practice on a global basis, in addition to providing thought leadership, business planning, and strategic direction. The HRC activity delivers a wide range of HR solutions to Kelly clients worldwide. Its service lines include strategic workforce planning, global mobility, training and education, and human resources consulting. Prior to his current position, Richards was senior director of international human resources for Kelly Services®, a role that included managing operations globally. Before joining the Kelly® organization in 2003, Richards was managing director and co- founder of Suddenly Global LLC, a Washington, D.C.-based international human resources consultancy. Prior to that, he was director of global human resources for Teleglobe, the global networking, Internet, and data services arm of Bell Canada Enterprises. Earlier in his career, Richards held executive posts at Verizon International, including director of international staffing and country director of human resources for Verizon China. He was also manager of human resources – Asia/Pacific for the North American subsidiaries of British Telecom. Educated at the University of Georgia in Athens, GA, Richards holds a bachelor’s degree in communications theory. An internationally sought-after speaker on globalization and workforce strategy, Richards has presented at human resources conferences, seminars, and universities around the world. He currently is a visiting professor of human resource management at the Sasin Graduate Business School of Chulalongkorn University in Bangkok. Richards sits on the talent strategy board for the Human Capital Institute, and serves as an instructor for the Society for Human Resource Management (SHRM) global human resources certification preparation course, which is taught internationally. Additionally, he has served on the board of directors for SHRM’s global forum and its global expertise panel. He has been a scheduled editorial columnist in Personnel Today magazine and his commentary on global human resources issues has been featured in European Business Review. 30
  • 31. about the authors D. Zachary misko D. Zachary Misko is global director of the Recruitment Process Outsourcing (RPO) practice of Kelly Outsourcing and Consulting Group (KellyOCG). The group is part of Kelly Services, Inc. (NASDAQ: KELYA, KELYB), a leader in providing workforce solutions, headquartered in Troy, MI. In this role, Misko works with Fortune 500® companies throughout the world to develop and implement processes that improve and drive recruitment and retention solutions. Misko joined Kelly Services in 2002 with more than 15 years of human resource and management expertise in areas including direct merchant, retail, biotechnology, life sciences, and staffing services. Within these industries, Misko held various positions in the areas of recruitment, employment law, employee relations, consulting, strategic human resources planning, performance management, training, and compensation. His experience includes managerial posts at several companies: Promega Corporation, Lands’ End, and Younkers, Inc. Misko has earned many professional certifications, including Certified Diversity Recruiter (CDR), Certified Internet Recruiter (CIR), and Professional in Human Resources (PHR). He has also completed advanced certification from the Department of Industry, Labor, and Human Relations. Misko holds a bachelor’s degree in business administration with an emphasis in human resources from Carroll College in Waukesha, Wisconsin. He is currently a member of the Society for Human Resource Management (SHRM), the Employers Management Association (EMA), and the National Association of Personnel Services (NAPS). He is a past president of the Metro Milwaukee SHRM chapter. He is considered an industry expert in applying Lean methodologies in the talent acquisition process. Currently, Misko is a senior executive board member of Best Practice Institute (BPI) and serves on the Advisory Board for EnticeLabs. He is also co-chair of the Human Resource Outsource Association (HROA) Research Committee and a member of the Human Resource Outsource Association (HROA) Outreach and Education Committee. He has had articles published in many print and online publications, including Workforce Management magazine, HRO Today, Human Resource Executive magazine, and HR.com. Misko is a contributing author to the book, “Best Practices in Talent Management,” published in December 2009. 31
  • 32. About Kelly Outsourcing and consulting Group KellyOCG is a global leader in innovative talent management solutions in the areas of Recruitment Process Outsourcing (RPO), Business Process Outsourcing (BPO), Human Resources Consulting, Career Transition and Organizational Effectiveness Consulting, Executive Search, and Contingent Workforce Outsourcing (CWO), which includes Independent Contractor Solutions. Further information about KellyOCG may be found at kellyocg.com. All trademarks are property of their respective owners. © 2010 Kelly Services, Inc. kellyocg.com