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Megatrends for HR

Peter Cheese

CEO, CIPD

Key drivers shaping our future

Technology and digital

Economic changes and nature of work

Workforce and demographics

UK workforce trends since the GFC

• 15% of total employment now self-employed

• 90% of the increase in the workforce is the 50+ segment, or 1.12m people

• High skill jobs (managerial, professional etc) account for 71% of employment rise

• 10% decline in average earnings in real terms since 2008

Sources: ONS, CIPD Research, E&Y

High job creation, low productivity and wages growth

Over the period 1998 to 2010 the share of private sector employment in the largest businesses (250+) fell from 50% to 40%. For the smallest (1 to 4 employees) it increased from 11% to 22%.

Source: BIS

The Challenge…

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An inflection point – time of opportunity for HR

‘Rethinking’ the workforce relationship

Voice Empowerment Recognition Support Playing to strengths

Meaning Purpose Well-being Energy! The extra mile Passion

Alignment Collaboration Shared values Commitment

Happiness….. and Trust

HR a key enabler, but developing managers is critical

• Source• Attract• Select• Orient

• Build skills• Develop• Reward• ProgressWelcome to our Company

Orientation begins here

So are our People Management practices good enough?

Where are your biggest challenges today? Where will they be tomorrow?

Are we focused enough on organisation and culture?

• Job design• Roles• Org structures• Operating models

• Managing change• Culture• Leadership• Capabilities

• Most business leaders believe that analytics is vital to identifying current and future skill gaps

• But only 15% believe HR is providing insightful analytics (KPMG survey 2013)

Too much data, not enough information

But not everything that can be counted counts…

Volume Velocity

Variety Veracity

Getting back to our roots…

Understanding human and organisational behaviour

NeurosciencePositive Psychology

Behavioural EconomicsSystems thinkingValues and ethics

….

Trust, Ethics and Morals

Empowerment

Trust

Ethics of Reason

Ethics of Care

Ethics of Obedience

Roger Steare: “Ethicability”

From control to enablement

Integrity has no need of rules

– Albert Camus

Need for a strategic response‘Content is king, but context is kingdom’

Business Strategy

Human Capital Strategy

HR Strategy

DrivesEnables

Enables Drives

• Business priorities• Business needs

• Talent and skills• Leadership • Organisation and operating

model• Culture

• HR capabilities• HR structure and operating model• Practices, policies & processes

Framework for Future of HR and People Development

Insight on Changing Context

Science of human and

organisational behaviour

HR & Learning Processes, Practices, Policies

Business, Commercial Insight, and

Analytics

Better work and working lives

Evolving the Profession

Principles

Policy and Regulation

Profession for the Future

Human Capital Standards

InternationalisationProfessionalisation

Knowledge Base – Future of HR Framework

Better BusinessBetter Work and Working Lives

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