the age of change – oracle’s 2015 hcm year in review coffee break cut

Copyright © 2015, Oracle. All rights Reserved.

Human Capital Management: The Age of ChangeThe Year in ReviewOracle Coffee Break Cut


We’re living in a time of unprecedented change.

It’s having serious implications for the way companies manage their employees, serve their customers and compete.

The ability to adapt, embrace innovation and excel matters more than ever.

HR leaders have the opportunity to really make their mark – applying the right strategies and technologies to attract, grow and harness talent to propel their business ahead of the rest.


#TalentWins


While the wider economic picture is brightening, there are downsides for those looking to hire.

“The war on talent is over, and the talent won.”

– Josh Bersin, Bersin at Deloitte

http://www.forbes.com/sites/joshbersin/2013/12/19/ten-predictions-for-talent-leadership-and-hr-technology-in-2014/


The only real option is to be a more appealing employer than the next company.

“As we approach full employment, employees have more options, employers have less.”

– George Bradt, Managing Partner, Prime Genesis

http://www.forbes.com/sites/georgebradt/2015/01/07/how-to-win-the-war-for-talent-in-2015/


“46% of companies globally cite competition as the biggest obstacle in attracting top talent.”

– Oracle

http://www.oracle.com/us/products/applications/human-capital-management/infographic-new-era-growth-2555946.pdf


To lose out in this contest now could have long-lasting consequences.

“Businesses are competing for the best available workers and for the talent that will replace the retiring Boomer generation in the coming few years.”

– Reshaping the Workplace, PwC

https://www.pwc.com/gx/en/managing-tomorrows-people/future-of-work/assets/reshaping-the-workplace.pdf


“Millennials now make up one third of the workforce.”

– Fortune

“75% of the global workforce will be millennial by 2025.”

– Deloitte Global Capital Market Trends

http://www.oracle.com/us/products/applications/human-capital-management/infographic-new-era-growth-2555946.pdf


Once you’ve attracted them, you need to keep them happy.

“They will be the most high maintenance workforce in the history of the world, but they may also be the most high performing.”

– Bruce Tulgan, Consultant and Author

http://fortune.com/2015/06/23/know-your-millennial-co-workers/


“The companies that top Great Place to Work’s first-ever ranking of the 100 Best Workplaces for Millennials stand out for their ability to engage this generation, recognize their talents and give them a significant role where they can make a difference.”

– Fortune

http://fortune.com/2015/06/23/know-your-millennial-co-workers/


Because above all, they expect to be engaged.

“Millennials expect accelerated responsibility and paths to leadership. They seek purpose in their work. And they want greater flexibility in how that work is done.”

– Deloitte

http://www2.deloitte.com/content/dam/Deloitte/at/Documents/human-capital/hc-trends-2015.pdf


#EngagementGap


Part of the problem is that both of those terms feel very loose. Who decides what your culture should look like?

“87% of organizations cite culture and engagement as one of their top challenges.”

– Deloitte



Once defined, your culture needs to apply to everyone. If all employees buy in, you’ll see incredible outcomes.

“Culture is only a source of value if it matches what the customer wants… HR should now anticipate what customers want and need, and bring that into the company.”

– David Ulrich, Professor of Business, The Ross School of Business

http://www.slideshare.net/OracleEMEAPR/hr-directors-business-summit-february-2015-oracles-coffee-break-cut


To get buy-in throughout the organization, those at the top need to become true advocates of your culture.

“If you have a thousand thoughtful people thinking about how to solve a problem, you’ll make a lot more progress than if it’s 100.”

– Reed Hastings, CEO, Netflix



But ultimately, culture should belong to HR.

“When you analyse the diary of CEOs, despite claiming their people to be their biggest asset, they dedicated very little time to their people.”

– Lord John Browne, Former CEO, BP

http://www.slideshare.net/oracle/ora016-coffee-break-cut-hr-directors-conference-final


Fail to do this and you’ll cap the potential of your workforce.

“A large part of the [engagement] problem stems from the fact that in most businesses no one owns culture […] no one is better placed to take ownership of these issues than HR.”

– Loic Le Guisquet, President, Oracle

https://go.oracle.com/LP=20375?elqCampaignID=28148


“Only 13% of the global workforce is highly engaged.”

– Gallup

“Upwards of half the workforce would not recommend their employer to their peers.”

– Bersin by Deloitte / Glassdoor

http://www.gallup.com/poll/165269/worldwide-%20employees-engaged-work.aspx.



If you’re unaware of the problem, you’ll never fix it.

“67% of HR professionals think that their employees have a balanced work-life, yet 45% of employees feel that they don’t have enough time each week to do personal activities.”

– 2015 Workplace Flexibility Study

http://www.careerarc.com/blog/2015/02/workplace-flexibility-programs-increase-hr-leaders-use-as-recruitment-tool/


If those at the top aren’t championing culture, the problems can be huge.

“Having leaders simply avail of flexible working options isn’t enough. They need to use the options in a way that is visible to the rest of the organisation.”

– Lynda Gratton, Professor of Management Practice at London Business School

http://lyndagrattonfutureofwork.typepad.com/lynda-gratton-future-of-work/future-of-work/


Make sure those at the top truly believe in what they preach.

“The joke in the office was that when it came to work/life balance, work came first, life came second, and trying to find the balance came last.”

– Jason Merkoski, former Amazon Employee – Inside Amazon: Wrestling Big Ideas in a Bruising Workplace,

New York Times

http://www.nytimes.com/2015/08/16/technology/inside-amazon-wrestling-big-ideas-in-a-bruising-workplace.html?_r=0

http://recode.net/2015/08/17/jeff-bezos-responds-to-new-york-times-story-i-dont-recognize-this-amazon/


It’s really no exaggeration to say that creating a culture that engages employees and looks after their interests is a matter of life and death.

“I don’t recognize this Amazon and I very much hope you don’t, either.”

– Jeff Bezos, CEO, Amazon, internal memo in response to NYT article

http://recode.net/2015/08/17/jeff-bezos-responds-to-new-york-times-story-i-dont-recognize-this-amazon/


“Research by scientists at UCL found that those who work more than 55 hours a week have a 33% increased risk of stroke compared with those who work a 35 to 40-hour week.”

– The Lancent

http://www.theguardian.com/lifeandstyle/2015/aug/20/working-longer-hours-increases-stroke-risk


“In a study, those who had a bad manager had a 30% higher chance of experiencing a heart attack.

It’s probably fair to say that who your manager is, is more important for your health than who your GP is.”

– Peter Flade, Managing Partner, Gallup

http://www.slideshare.net/OracleEMEAPR/coffee-break-cut-hr-in-the-age-of-digital-disruption-final


Considering the impact wellbeing has on the bottom line, what could be more worthy of investment?

“If you want your workforce to work well, you have to take steps to keep them well and this means putting employee health above operational demands.”

– Ben Willmott, Head of Public Policy, CIPD

http://www.cipd.co.uk/pm/peoplemanagement/b/weblog/archive/2015/10/12/third-of-employers-see-growth-in-presenteeism-cipd-reveals-160.aspx


“Companies are increasingly using wearable devices to track employee health – as part of wellness programs.”

– Bloomberg

Oil giant BP distributed more than 24,500 Fitbit fitness trackers to staff in 2015.

http://www.bloomberg.com/news/articles/2015-08-07/wearable-technology-creeps-into-the-workplace


Only an engaged, healthy workforce can truly perform. But when they do, how do you make sure you’re recognizing them?

“Wellbeing programmes should be a mandatory for all businesses – it’s clear to see the ROI.

The top objective of wellbeing is improving health as an indirect driver of productivity, morale and engagement.”

– Dame Carol Black, Expert Advisor on Health and Work, Department of Health



#RethinkPeformance


There’s a huge risk that current methods of tracking performance don’t reward the most valuable behavior.

“Employees that do best in performance management systems tend to be the employees that are the most narcissistic and self-promoting… Those aren’t necessarily the employees you need to be the best organization going forward.”

– Brian Kropp, the HR practice leader for CEB

https://www.washingtonpost.com/news/on-leadership/wp/2015/07/21/in-big-move-accenture-will-get-rid-of-annual-performance-reviews-and-rankings/


Indeed, too often, they have very little to offer the employee at all.

“Who is the customer of performance appraisals? It’s not normally the employee.”

– Armin Trost, Professor Dean of MBA Studies, MFU Business School Furtwangen

http://www.slideshare.net/OracleEMEAPR/hr-tech-europe-2015-oracles


In fact, there’s a huge appetite for change on both sides of the appraisal process.

“95% of managers are dissatisfied with the way their companies conduct performance reviews.”

“Nearly 90% of HR leaders say the process doesn’t even yield accurate information.”

– CEB Study

https://theconsultantlounge.com/2015/07/accenture-is-set-to-scrap-their-performance-review-process/


So what does the future of performance management look like?

“86% of employees are not happy with their firm’s performance management system.

59% of employee feedback does nothing or makes things worse. There’s a line of courage that needs to be stepped over to move from rankings and ratings – from judging others to coaching.”

– Dr Jacqui Grey, Managing Director Europe, The NeuroLeadership Institute



It’s about getting your ear closer to the ground on a more regular basis.

“Performance is an ongoing activity. It’s every day, after any client interaction or business interaction or corporate interaction…. Nobody’s going to wait for an annual cycle to get that feedback. Now it’s all about instant performance management.”

– Pierre Nanterme, CEO, Accenture

https://www.washingtonpost.com/news/on-leadership/wp/2015/07/23/accenture-ceo-explains-the-reasons-why-hes-overhauling-performance-reviews/


“Investment in management training leads to a 32% increase in productivity.

But look beyond the obvious to find out more about individuals and discover whispering talent.”

– Ann Francke, CEO, CMI – Dr Caroline Curtis, Head of Talent,

Succession and Development, Santander



#LeadDon’tFollow


Reacting is no longer enough. Today you need to be shaping the path your business takes.

“HR is undergoing an extreme makeover to deliver greater business impact and drive HR and business innovation. ”

– Deloitte



Of course, with the consumerisation of work, your customers and employees expectations are likely to align.

“Now HR is at the top table, we need to shape talent, culture, leadership, in order to ensure they anticipate and serve the needs of the business’s customers.”

– Dave Ulrich, Professor of Business, The Ross School of Business



“The relationship between employee and employer is also changing. If you want folks to stick around you’d better at least match the kind of tools and technology on the job that they have access to at home. ”

– Michael George, Appirio (via Wired)

http://www.wired.com/insights/2013/10/workplace-2020-sourcing-talent-for-the-workplace-of-the-future/


This isn’t something that can wait.

“Technology is constantly evolving, and with the cloud you can always have the latest, state of the art tech – it’s key if you want to attract new employees.”

– Robert Cortenraad, VP Human Resources, Oracle



Slow adoption leads to a cycle of keep up. Changes made now create a platform for future innovation.

“The window of time in which a company can use the cloud to differentiate is shrinking every day. Chief information officers and line of business leaders can’t afford to wait. If they do, rather than achieving competitive advantage, they’ll be scrambling to keep up.”

– Shawn Price, Senior Vice-President, Oracle

http://www.forbes.com/sites/oracle/2015/09/01/cloud-choices-matter-in-business/


When you have tools that enable agility, you can better adapt to a rapidly changing world.

“In a survey by PwC of HR practitioners in the US, asking why they were moving to the cloud, the #1 answer was because HR in the cloud helps boost innovation.”

– Robert Cortent, Professor of Business, The Ross School of Business



#TheYearAhead


Collaboration is going to be key in closing the engagement gap, so make sure tools are in place to let it happen. But don’t just limit communication tools to inter-employee interactions.

“If your HR system lets employees create a personal talent profile, other employees and managers can search on skills and connect with them using built-in collaborative tools such as chats, blogs, instant messages, and networks. Better connection between employees increases worker engagement and improves the odds that the right team is working on a project.”

– Oracle

http://www.oracle.com/us/products/applications/human-capital-management/global-hr-2293610.pdf


We’re entering the second half of the decade. By its end, the ability to connect and work with others in virtual environments will be the norm. So it’s time to act.

“Changing our HCM system across all 947 of our companies allowed us to leverage a huge social sourcing network. Our referral rate has gone from 17% to 35%, saving $1m in fees in the first year alone.”

– Gary Brocklehurst, Director of Consulting Services, Hitachi Consulting EMEA

http://www.slideshare.net/OracleEMEAPR/hr-tech-europe-2015-oracles


If you can provide smarter working methods, you’ll get a more engaged workforce.

“By 2020, more than half of employees at large corporations will work in virtual project groups.”

– PwC, Strategy and Rise of Gen C

http://www.oracle.com/us/digital-disruption-2665262.pdf


Turning data into visibility will be even more important for talent managers and you can expect to see companies investing accordingly.

“Employee self-service gives employees much more visibility of their own data – they can update their own personal information and skill sets too... They can see all their information in one system which has really helped with engagement.”

– Ruth Robshaw, Manager, HRIS International and UK&I Payroll, Elizabeth Arden



Furthermore, you can expect to see these tools working their way into the hands of those who can make best use of them.

“Gartner finds that more than 75% of companies are investing or planning to invest in big data analysis in the next two years, and business unit heads rather than CIOs will initiate almost half of those projects.”

– Margaret Harrist, Oracle

http://www.forbes.com/sites/oracle/2015/09/30/is-the-data-scientist-era-coming-to-an-end/


These trends go to show the value of data. And like anything of value, this data will increasingly need to be protected.

“Top performing organizations put HR analytics into the hands of 74% of managers, while lower performing ones only put it in 20%.”

– Get Ready for a New Era of HR, Oracle

http://www.oracle.com/us/products/applications/human-capital-management/modern-hr-new-era-europe-2550513.pdf


“Nearly 9 out of 10 large organisations surveyed now suffer some form of security breach.”

“Despite the increase in staff awareness training, people are as likely to cause a breach as viruses and other types of malicious software.”

– 2015 Information Security Breaches Survey, PWC

http://www.pwc.co.uk/services/audit-assurance/insights/2015-information-security-breaches-survey.html


Aside from data, the future holds many other Ds for the world of HCM.

“Security concerns still exist, but more companies now acknowledge the fact that data can, and should be, considered more secure in the cloud than stored on a lot of the costly on-premises infrastructures. It’s cheaper, easier and more secure if they pay a cloud vendor to do it for them.”

– Philip Turner, VP EMEA, Okta

http://www.information-age.com/technology/security/123459135/great-it-myth-cloud-really-less-secure-premise


In the year ahead it’s time to start building ‘bold HR’

“6 Ds shaping the future of work:

Dolly: We’re no longer living in the age of 9-5Diversity: You will need to create common ground for 4 different generations in one workplaceDilbert: Cubicles are a thing of the past. We need to re-think working spacesDistance: We need to ensure our workforce doesn’t fragment as we cease to share physical spaceDroids: Inevitably more jobs will become automatedDr No: Despite the protestations of IT managers, BYOD is the future”

– Dr Nicola Millard, Customer Experience Futurologist, BT



But don’t fall into thinking there’s a one-size-fits-all silver bullet solution.

“ BOLD HR

Build an irresistible organization Own the leadership agenda Leverage learning everywhere Demand data”

– Josh Bersin, Bersin at Deloitte

http://www.bersin.com/blog/post/The-Four-Keys-to-Bold-HR--Lessons-for-the-Year-Ahead.aspx


Whatever happens, never lose sight of the simple, eternal truths of HR.

“One of our key messages is to move beyond the idea that there’s a best practice or perfect model, to say no, it’s about appropriate practice or good practice that’s fit for the context we’re working in.”

– Peter Cheese, CEO, CIPD

http://www.relocatemagazine.com/articles/mjohnson-11-d1-2015-7826-cipd-2015-peter-cheese-on-hrs-inflection-point


And don’t be afraid of the future.

“Enjoying what you do each day is key for a life well lived. For most people, that’s work. Get that right and you’re setting people up for life.”

– Peter Flade, Managing Partner, Gallup

http://www.slideshare.net/OracleEMEAPR/coffee-break-cut-hr-in-the-age-of-digital-disruption-final?related=1


“What’s more important than anything else? Courage, leadership and a willingness to change.”

– Safra Catz, CEO, Oracle

http://www.forbes.com/sites/oracle/2015/11/12/oracles-safra-catz-how-to-thrive-during-disruptive-times/


This is #ModernHR

Start 2016 with the Modern HCM Experience and get ahead of the pack. Register Here

http://www.modernhcmexperience.oracle.com/london/?source=WWMK15025623MPP007C005-OW:O:S:RB-HcmLondonCbcBanner1

the age of change – oracle’s 2015 hcm year in review coffee break cut

Leadership & Management