21-22 November 2017

Vienna, Austria

Plenary 4b: Human Capital trends and the implications for HR shared services

Brett Walsh and Emma Leonis, Deloitte

Deloitte Shared Services, GBS & BPO Conference

What is digital?

MINDSET TECHNOLOGY

• Agile

• Collaborative

• Nimble

• Risk Taking

• Challenging

• Robotics Process Automation (RPA)

• Cognitive

• Artificial Intelligence

• Analytics

• Social & Mobile

DIGITAL

Technology alone does not translate to digital. It’s the application of a new mindset that enables you to leverage the new technologies to their fullest potential.

The Fourth Industrial Revolution has fundamentally transformed business, the broader economy, and society

Steam

engine

DigitalElectricity and

telephone

Computing

Early 1800’s

1970’s to 1980

TodayEarly

1900’s

There has been massive improvement in productivity in each revolution… until now.

What is really happening

2000s 2010s Today

Rate

of

ch

an

ge

1990s1980s1970s

Public policy

Technology

Businesses

This gap is the opportunityIndividuals

Although technology is improving at an exponential pace and individuals are adapting to it quickly, the organisation and the policies that govern them are not adapting fast enough

The opportunity is here and now

of organisations surveyed by MIT and Deloitte anticipate their businesses are being disrupted

by digital business models

90%

believe they currently have the right leadership or skills to execute

30%

Need to rewrite the rules to reflect the

shifts in mindset and behaviour required to

lead, organise, motivate, manage,

and engagethe 21st-century workforce

Those new rules change how we…

Build a culture of

continuous

learning,

adaptability &

career growth

Leverage data,

cognitive and AI to

improve business

outcomes and

team productivity

and engagement

Leverage digital

technology to

design and improve

the work, the

workplace, and the

workforce

Redesign the

organisation and

its leadership for

the future

Cultivate the

employee

experience for

engagement,

productivity &

growth

Build a new

management

system to

empower &

engage teams

So what did we find?

Human Capital Trends 2017 Survey

Organisation size (employees) Respondent job function Respondent job level

These three numbers tell a story

9 areas of

focus

fundamental

shifttrends 3 1

An overview of the 2017 Deloitte Global Human Capital Trends

The Future of

Work

• Invent the future through the augmented workforce

• Disrupt leadership by pushing the boundaries

• Cultivate the employee experiencethrough culture, engagement & beyond

The Future of

the Workforce

• Create a more diverse & inclusive workforce to close the reality gap

• Evolve the careerjourney so that it’s real time, all the time

• Constantly manage and developperformance to play a winning hand

The organisation of the future is arriving now

• Embrace digital by combining platforms, people and work

• Recalculate the route for peopleanalytics

• Tackle the talent issue at the source through the cognitive recruiter

The Future of

HR

12%

17%

19%

21%

22%

22%

27%

29%

31%

37%

88%

83%

81%

79%

78%

78%

73%

71%

69%

63%

Not/somewhat important Important/very important

Ranking of 2017 trends by importance

Percentage of total responses

Organisation of the future

Careers and learning

Talent acquisition

Employee experience

Performance management

Leadership

Digital HR

People analytics

Diversity and inclusion

The augmented workforce

The organisation of the future: Arriving now 88%

Very important or important

11%believe they understand how to build the organisation of the future

94%say “agility and collaboration”are critical yet…

6%

experimenting with collaboration tools, however only

using organisationalnetwork analysis (ONA)

are highly agile today

73%

8%

The organisation of the future requires us to transform the way things work today

90% of companies are redesigning their organisations to be more dynamic, team-centric, and connected

Careers and learning: Real time, all the time

Sources: The 100-Year Life: Living and Working in an Age of Longevity; A New

Culture of Learning: Cultivating the Imagination for a World of Constant Change

The changing nature of the career

Length of career Average tenure in a job Half-life of a learned skill

60 to 70 years 4.5 years 5 years

83%are moving to open career models

83%Very important or important

Organizations need to deliver learning that is always on and always available over a range of mobile platforms

Talent acquisition:Enter the cognitive recruiter

Biggest disruptorin talent acquisition today is experimentationwith tech solutionsand services

excellent at using games & simulations to attract and assess potential candidates

6%

excellent at managing crowdsourcing 8%

excellent at managing talent-sharing resources

19%

81%Very important or important

Start where it counts: Cognitive technologies can help you acquire the talent you need to meet the ever-evolving demands of the business

Intelligent sourcing analytics

Mining resumes you have on file

Video interview analysis

Smarter quizzes and questions

Chatbots for candidates

Culture assessment through language

Diversity and bias detection

The employee experience:Culture, engagement, and beyond

believe their internal processes for

collaboration and decision making are

working well

believe their employees are fully aligned with the corporate purpose

23%

14%

are excellent at buildinga differentiated employee experience

22%

are using design thinking as part of

crafting the employee experience

10%

Deloitte and Facebook, “Transitioning to the future of work and the workplace,” November 2016

79%Very important or important

Avoid oversimplification: Designing a differentiated and integrated employee experience in the future of work must go beyond the traditional

Simply Irresistible OrganisationTM

Meaningfulwork

Supportive management

Positive workenvironment

Growth opportunity

Trust inleadership

AutonomyClear andtransparentgoals

Flexible workenvironment

Training andsupport on thejob

Mission andpurpose

Select to fit CoachingHumanistic workplace

Facilitated talentmobility

Continuous investment inpeople

Small,empoweredteams

Investment indevelopment ofmanagers

Culture ofrecognition

Self-directed, dynamiclearning

Transparencyand honesty

Time for slackAgileperformancemanagement

Fair, inclusive, diverse workenvironment

High-impact learning culture

Inspiration

Cross-organisation collaboration and communication

Performance management:Play a winning hand

Capabilities to implement

performance management

have improved by

10% since 2015

Agile goal management, check-ins, and continuous feedback are becoming common; new models of evaluation and rewards are next

The focus has shifted from talking about people to talking with people in open conversations

78%Very important or important

Avoid the hit and run: Establish a continuous performance management and development process that puts ratings in the backseat

Ongoing / Continuous

Feedback easily reviewed, often through apps and mobile tools

Goals focused on team achievement

Managers also evaluated by their employees

Employees rated on a qualitative scale

Compensation levels more transparent; pay forperformance

Managers focused on coaching and developing people

Process is agile, faster, continuous, and lighter

Annual / One - Time

Manager-driven feedback collection

Goals focused on individual achievement

Employees evaluated by their manager

Employee force-ranked on a quantitative scale

Compensation kept confidential; band based

Managers focused on evaluating performance

Burdensome process

Leadership disrupted:Pushing the boundaries

The leadership gap has become larger; organisationalcapabilities to address leadership

feel they have strong digital leaders in place

5%

72%developing newleadership programsfocused on digital management

dropped by 2%

78%Very important or important

Digital leadership required shifts in how leaders must think, how leaders must act, and how leaders must react

Push the boundaries: Leaders need to think, act and react differently to drive organisationalsuccess in a digital world

Cognitive transformation(THINK differently)

Behavioraltransformation(ACT differently)

Emotionaltransformation

(REACT differently)

Conceptualising possibilitiesin a virtual world

Adapting to constantlyshifting

power and influence

Tolerating an environmentof risk and ambiguity

Handling ever-increasingcognitive complexity

Collaborating with easeacross many different teams

Showing resiliencein the face of constant change

Thinking divergently aboutnew ways of doing things

Valuing the contribution ofnew work partners anddifferent interest groups

Being brave in challenginghow things are being done

Making decisions quicklywithout all of the information

Investing huge amounts ofenergy into getting things right;

try, fail, try again

Having the confidenceto take the lead in driving

change

are redesigning their HR programs to leverage digital and mobile tools

HR is being asked tohelp lead the digital transformation in 3 areas:

Digital HR:Platforms, people, and work

56%

Digital workforce Digital workplace Digital HR

are using someform of artificial intelligence (AI) technology todeliver HR solutions

33%

73%Very important or important

The ability to navigate the disruption will be driven by HR’s ability to move beyond the creation of capacity to truly invest in the next-generation capabilities

CAPABILITY

Enabling HR to deliver upon those

moments that matter with the right solutions in the right context at the right time

COMMUNITY

Building connections across silos, geographies, providers and

customers to form one HR

organisation

CREDIBILITY

Give HR the license – the support – of

the business to influence and

engage on the most important issues and initiatives

CAPACITY

Freeing up time for HR to focus

on the moments that truly matter

to the business and the organisation

as a whole

+ + =

EMPLOYEE TO

USABILITY TO

SYSTEM TO

COST TO

VENDOR TO

GENERALIST TO

TEAM TO

TRANSACTION TO

SELF-SERVICE TO

STRATEGIC TO

CUSTOMER

PRODUCTIVITY

PLATFORM

VALUE

PARTNER

ADVISOR

NETWORK

INTERACTION

ENABLEMENT

SUSTAINABLE

Shift your mindset: Moving beyond the cloud requires a new language for HR that is framed for the digital world

Question time

Of the issues on your card, which

three are you finding the most challenging?

Let us know by taking the poll in the

conference app or texting 22611 to 79905

To view the results click here

The New Rules

Don’t believe all the hype on jobs and automation

Push the leadership boundaries into the digital world

Avoid oversimplification when it comes to your employee’s experience

Leverage the power of inclusion to unlock the full potential of the workforce

Fully invest in your intellectual capital through a continuous focus on careers & learning

Avoid the hit and run associated with traditional performance management

Shift your mindset beyond the cloud

Beware of the shiny object in the world of people analytics

Start where it counts when beginning the cognitive journey

In today’s world of disruption, all rules will eventually be broken; it’s critical to stay in front of what’s coming next…

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

Questions?

The organisationof the future: Arriving now

Careers and learning:Real time,all the time

Talent acquisition:Enter the cognitive recruiter

The employee experience:

Culture, engagement, and beyond

Performance management:Play a winning

hand

Leadership disrupted:

Pushing the boundaries

Digital HR:Platforms,

people, and work

People analytics:

Recalculating the route

Diversityand inclusion:The reality gap

The futureof work:

The augmented workforce

Rewrite the rules

@DeloitteTalent

As used in this document, “Deloitte” means Deloitte & ToucheLLP, a subsidiary of Deloitte LLP. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte USA LLP, Deloitte LLP and their respective subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.

Copyright © 2017 Deloitte Development LLC. All rights reserved.

www.deloitte.com/hctrends

HR performance scorecard, 2015-2017

The proportion of respondents rating their HR capabilities as “Getting by” and “Adequate” has marginally increased, and that rating their capabilities as “Good” has marginally decreased, since 2016

The proportion of respondents rating their HR capabilities as “Getting by” and “Adequate” has marginally increased, and that rating their capabilities as “Good” has marginally decreased, since 2016

Scale used: Excellent (4), Good (3), Adequate (2), Getting by (1), Underperforming (0)

Don’t believe the hype: The more technology we have, the more new jobs will be created

Jobs shifting to essential human skills

Critical

thinking

skills

Near-vision

(ability)

Speaking

skills

Problem

sensitivity

(ability)

Active listening skills

English language knowledge

Oral expression

Oral comprehension

Written comprehension

Customer service

knowledge

21-22 November 2017

Vienna, Austria

Deloitte Shared Services, GBS & BPO Conference

21-22 November 2017

Vienna, Austria