The SHRM FoundationShaping the future of HRTom Darrow, SHRM-SCP & Mark Schmit, Ph.D., SHRM-SCPApril, 2015

Who we are:

• SHRM Foundation Vision

The SHRM Foundation is the globally recognized catalyst for

shaping human resource thought leadership and research.

• SHRM Foundation Mission

The SHRM Foundation advances global human capital knowledge

and practice by

– providing thought leadership and educational support, and sponsoring,

funding and

– driving the adoption of cutting-edge, actionable, evidence-based

research.

3

Thought Leadership Initiative

Conducting a multi-phase program with the Economist Intelligence Unit (EIU) to identify and analyze critical trends likely to impact the workplace in the next 5-10 years.

Three themes that have been identified:

1. Evolution of Work and the Worker (2014)

2. Engaging and Integrating a Global Workforce (2015)

3. Use of Talent Analytics for

Competitive Advantage (2016)

Additional resources available here:

Digital Hub: futurehrtrends.eiu.com

Follow on twitter: #FutureHRTrends

Research

More than $4 million awarded since 2007.

In 2014, 68 research grant proposals were received and reviewed. Three multi-year projects were selected for funding, totaling $284,617:

• Can Human Resource Management Policy Reduce Workplace Telepressure? Effects on Employee and Organization Outcomesled by Larissa K. Barber, Ph.D., Northern Illinois University

• Free-Riding in Global Virtual Teams: An Experimental Study of Antecedents and Strategies to Minimize the Problem led by Vas Taras, Ph.D., University of North Carolina at Greensboro

• Bridging Communication Gaps in HR by Mapping Constructs and Findings led by Frank A. Bosco, Ph.D., Virginia Commonwealth University and Krista L. Uggerslev, Ph.D., Northern Alberta Institute of Technology

Currently funding 14 active research grants totaling nearly $1.5 million.

The SHRM Foundation is a leading funder of HR research.

Scholarship Programs

More than 100 scholarships awarded in 2014.

• SHRM Foundation Scholarships for HR Professionals

– Academic and professional certification scholarships

– Application deadline: mid-July 2015

• SHRM Foundation Student Scholarships

– Undergraduate and graduate academic scholarships and

Assurance of Learning exam scholarships

– Application deadline: November 2015

• Susan R. Meisinger Fellowship for Graduate Study in HR

– First-time master’s student seeking degree in HR

– Application deadline: mid-August 2015

Awards• Michael R. Losey Excellence in Human Resource Research

Awarded to Patrick Wright, Ph.D.University of South Carolina Darla Moore School of Business

• Susan R. Meisinger Fellowship for Graduate Study in HRAwarded to Mandy R. Woulfe

Walden University, Minneapolis

• Dissertation GrantsPatricia C. Dahm, University of Minnesota; Minneapolis, MN

Sung Doo Kim, University of Cincinnati; Cincinnati, OH

Eric Lin, Harvard Business School; Cambridge, MA

Margaret M. Luciano, University of Connecticut; Stores, CT

• SHRM Advisor of the Year AwardPresented to Debbie L. Mackey, SPHRUniversity of Tennessee SHRM

• HRM Impact AwardsCargill

Federal Bureau of Investigation (FBI)

Sears Holdings

Educational Products

Effective Practice Guidelines

DVD Case Studies

Executive Briefings

Complimentary, research-based resources

How is the

SHRM Foundation funded?

Annual Campaign:The SHRM Foundation's fundraising efforts, called the Annual Campaign, includes donations, sponsorship, and revenue from fundraising events.

Support from SHRM:The SHRM Foundation is a 501(c)(3) public charity. As the charity affiliate of SHRM, the SHRM Foundation is grateful for the significant support received from SHRM, including:

– In-kind services

– Matching gift for donations received during the Annual Campaign

The support received from SHRM allows the SHRM Foundationto use every dollar raised to advance our mission

through scholarships, educational resources, HR research and thought leadership.

The SHRM FoundationShaping the future of HR

Mark Schmit, Ph.D., SHRM-SCP

April, 2015

Research Inputs

ResearchResearch

Publication

Accumulation and

Translation

Practitioner Use

4 to 7 Years

Thought Leadership Initiative

• Foundation Board developed a strategy to have a greater impact on HR research and practice

• In 2012 specifically defined “HR Thought Leadership”

o “Future Focused” informing “What’s Next” (3-5+ years out)

o Primary audience of “Progressive Organizational Leaders in Global Fortune 1000 Companies”

• Designed means of operationalizing our Vision

• In 2013, selected Economist Intelligence Unit (EIU) as our partner and initiated the “Thought Leadership Initiative”.

Corporations, the

public sector and

NGOs go to the EIU

for insights on global

talent, particularly in

emerging markets.

The Economist:

Access to global

executives.

SHRM Foundation:

Access to largest

network of HR

professionals. 13

The Economist Intelligence Unit (EIU)

4/28/2015

CLICK TO EDIT PICTURE SLIDE TITLE

Demographers

Thinks Tanks

Technologists

Anthropologists

Economists

Futurists

Research Centers

Academicians

Sociologists

HR Executives

Consultants

EIU with SHRM-F

Synthesis &

Analysis to Identify

Trends Impacting

Future Workforce

3 Major

“What’s Next”

Themes

SHRM & Affiliate Boards

resulting

in…

Government Leaders

SHRM Members/HR Practitioners

Business Leaders

will

drive…

Political Scientists

SHRM Foundation:

• directed contract research

• academic research funding

• publications/media

• events

• products

EIU:

• directed research

• publications/media

• events

• products

Others:

• Research Institutes

• Consultants & Knowledge Providers

• Large Companies

• Think Tanks

• Non-Profit Research Groups

Evolution of“Work”and the

“Worker”

Globalization of

business, changing

demographics and

changing patterns of

mobility will continue

to change the nature

of work and the

worker over the next

5 to 10 years.

“What’s Next “Theme 1

Engaging and integrating

a globalworkforce

Cultural integration

and clashes/unrest

will continue to grow

globally at both

societal and

corporate level over

the next 5 to 10

years.

“What’s Next “Theme 2

Use of Talent Analytics for Competitive Advantage

Talent shortages will

continue to grow

globally over the

next 5 to 10 years

requiring HR to

become the provider

of human capital

analytics for input

into strategic

business decision

making.

“What’s Next “Theme 3

18

Major EIU findings from the Work and Worker research

Demographic shifts pose conflicting

challenges

Young populations will elevate concerns of a lost generation

Burgeoning workplace diversity

requires sophisticated response

Disconnect between educational standards

and market needs

Services sector on rise at expense of

industry & agriculture

Technology transforms workforce

composition and culture

Wage expectations conflict with increased focus on shareholder

value

Inequality on the rise as technology

decimates the mid-skilled tier

Companies balance pros and cons of

investment in new regions of

development

Major findings from Theme 1: The Evolution of Work and Worker

Trend 1: Demographic Shifts

• The population is aging in much of the developed world.

• In emerging markets, however, the population is overwhelmingly young, and those countries face challenges in providing education and jobs.

• Workforces are becoming more geographically diverse.

• In the next decade nearly one billion women—primarily from the developing world—are expected to enter the labor force.

Trend 1: Demographic Shifts – Expected Changes

• Increased global workforce.

• Growth in multi-generational workforce multi-generational workplace.

• Changes in employee expectations.

• Changes in work motivations.

• Revisions to immigration laws.

Trend 2: Loss of Middle-Skills Jobs

• Technological advances in developed countries have automated many routine tasks.

• New technology jobs require different, higher-level skills.

• Mid-skill workers pushed either to lower-wage jobs (more frequent) or into training for higher-skilled jobs (less frequent).

• Polarization of job market into high- and low-skilled jobs.

Trend 2: Loss of Middle-Skills Jobs – Expected Changes

• Overqualified applicants for low-skilled jobs.

• Decreased engagement, productivity, and retention.

• Further separation of wealthy and poor.

• Potential social disruption and societal upheaval.

Trend 3: Skills gap: Disconnect Between Educational Standards and

Organizational Demand

• Educational systems are not fully meeting the needs of the modern economy.

• Mismatch of skills needed by employers and those held by workers and applicants.

• STEM skills in short supply in labor market.

• Shortage of highly skilled manufacturing workers and skilled trades workers.

24

Educational profile is shifting; on path to meet market demands?

• Closing educational gap: In 2000, there were 51 million 25-to-34-year-olds with tertiary degrees in OECD, and 39 million within non-OECD G20 countries; by 2010, this gap had nearly closed, with respective figures at 66 and 64 million.

• Power of China & India: These 2 markets alone will account for 40% of young people with a tertiary education in G20 and OECD countries by 2020; US and EU combined will contribute just over one-quarter.

• Quantity is not everything: Higher enrollment rates do not necessarily translate into better skills (i.e., quality of China’s huge number of engineers has been disputed).

• Gap with market needs: In Europe, 74% of education providers were confident their graduates were prepared for work, but only 38% of youth & 35% of employers agreed.

Trend 3: Skills gap: Disconnect Between Educational Standards and

Organizational Demand – Expected Changes

• Graduates will not be prepared for the workplace.

• Filling STEM positions – challenge will increase significantly.

• New skill shortages will continue to emerge.

Trend 4: Eroding Physical Barriers and Increased Globalization

• Technology is reducing physical barriers to work.

• Workers and organizations in developing countries are increasing in their ability to participate in developed markets.

• Globalization of business will grow on a steep upward curve.

Trend 4: Eroding Physical Barriers and Increased Globalization –

Expected Changes

• Increase in telecommuting and remote workers.

• Workers located around the globe.

• Talent pools will increase for some jobs.

• Leaders will be challenged in managing remote workers.

Trend 5: New Models of Work will Emerge

• When skills are not available for complete jobs, jobs will be broken into tasks that can be completed by contract workers.

• New models of work and technology innovations will then emerge to fill the gaps, such as crowdsourcing is now starting to do.

Trend 5: New Models of Work Will Emerge – Expected Changes

• New models of work will continue to emerge as jobs are decomposed to tasks.

• New models of work will allow for new populations of workers to be employed.

• New types of business will emerge from these changes in how work gets done, disrupting traditional workplaces and work models.

30

Major EIU findings from the Work and Worker research

Growing cross-cultural workforces

Global interdependencies

increase exposure to risks

Workforce is ageing and becoming

gender/ethnically diverse

Workers from emerging countries seeking

higher wages

Cultural diversity contributes to success

Cultural differences affect management

styles and employee development

Organizations struggle to balance societal

culture and their corporate culture

Temps and flex workers create new

management challenges

Corporate social responsibility helps manage risk while

boosting the bottom line

Major findings from Theme 2: Engaging and Integrating a Global

Workforce

Outcome

Work with SHRM and its affiliates to provide the answers to HR practitioners when they need them in the future.

Currently Available

• Theme 1 Report: Evolution of Work and the Worker

• Theme 1 Roundtable Summary

• Theme 1 Five Key Trends

• Theme 2 Report: Engaging and Integrating a Global Workforce

• SHRM Foundation site: – http://www.shrmfoundation.org/

• EIU Hub: : http://futurehrtrends.eiu.com/– Reports

– Topical articles

– Expert videos

– Infographics

– SHRM Foundation Resources

Thank You!

Questions?