Challenges Facing Orgs and HR in the Next 10 Years Facing... · Challenges Facing Organizations and HR in the Next 10 Years | ©SHRM 2010 Key Findings • Getting and Making the Most

September 16, 2010

SHRM Poll: Challenges Facing Organizations and HR in the Next 10 Years

Challenges Facing Organizations and HR in the Next 10 Years | ©SHRM 2010

Key Findings

• Getting and Making the Most of Human Capital Is a K ey Priority. The biggest investment challenges facing organizations over the next 10 years are 1) obtaining human capital and optimizing human capital investments (47%), 2) obtaining financial capital and optimizing financial capital investments (29%), and 3) obtaining intellectual capital and optimizing intellectual capital investments (12%).

• To Attract and Keep the Best Talent, Organizations Should Allow Flexible Work Arrangements. Providing flexibility for employees to balance their life and work responsibilities is the most effective way to attract, reward and retain top performers, according to 58% of HR managers.

• Cultivate a Culture of Trust, Open Communication an d Fairness. Creating an organizational culture where trust, open communication and fairness are emphasized and demonstrated by leaders is a key human capital strategy.

• Keep a Clear Line of Sight Between Employees’ Work and Organizational Objectives. 40% of HR managers say that designing jobs to provide employees with meaningful work that has a clear purpose in meeting the organization’s objectives optimizes the organization’s ability to engage and keep top talent.

2


2%

11%

12%

29%

47%

0% 10% 20% 30% 40% 50%

Obtaining physical capital (e.g., factories, buildings,trucks, tools, machinery and equipment) and optimizing

physical capital investments

Obtaining technology and optimizing technological capitalinvestments

Obtaining intellectual capital and optimizing intellectualcapital investments

Obtaining financial capital and optimizing financial capitalinvestments

Obtaining human capital and optimizing human capitalinvestments

3

What do you think will be the biggest investment challenge facing

organizations over the coming 10 years?

Note: n = 449. Percentages do not total 100% due to rounding.


What do you think will be the biggest investment challenge facing

organizations over the coming 10 years?

• Obtaining financial capital and optimizing financial capital investments (by operations): Organizations with U.S.-based operations (31%) were more likely than organizations with multinational operations (20%) to cite obtaining financial capital and optimizing financial capital investments as a major investment challenge facing organizations over the coming 10 years.

• Obtaining financial capital and optimizing financial capital investments (by union status): Organizations with unionized employees (40%) were more likely than non-unionized (26%) organizations to report obtaining financial capital and optimizing financial capital investments as the biggest investment challenge facing organizations over the coming 10 years.

4

Comparison by Organization’s Operations Location an d Union Status


A 2010 survey of global C-suite executives, Company of the Future, commissioned

by SHRM with the Economist Intelligence Unit, found that C-suite executives

believe the two biggest challenges facing HR over the coming 10 years will be:

1. Retaining and rewarding the best people.

2. Attracting the best people to the organization.

5


According to HR professionals, the most effective tactics of meeting the

identified challenges of retaining and rewarding the best people and

attracting the best people to the organization are:

1%

4%

11%

11%

13%

14%

15%

21%

23%

29%

40%

47%

58%

0% 10% 20% 30% 40% 50% 60%

Other

Demonstrating the organization’s commitment to corporate social responsibility and sustainability

Providing employees with the latest tools to maximize work efficiency andeffectiveness

Creating a highly inclusive culture that uses diverse perspectives to optimizeorganizational performance

Developing human capital managers at all levels of the organization

Providing employees better opportunities to use their skills and abilities

Creating an organizational culture where employees are encouraged to makedecisions and take risks

Creating a stimulating and attractive organizational culture

Offering a higher total rewards package (i.e., total compensation and benefitspackage) than organizations that compete for the same talent

Demonstrating a commitment to employee development

Having jobs designed to provide employees with meaningful work that has a clear purpose in meeting the organizations’ objectives

Creating an organizational culture where trust, open communication and fairnessare emphasized and demonstrated by leaders

Providing flexibility to balance life and work

6

Note: n = 449. Percentages do not total 100% as multiple response options were allowed. Respondents were asked to select up to three tactics.


According to HR professionals, the most effective tactics of meeting the

identified challenges of retaining and rewarding the best people and

attracting the best people to the organization are:

• Creating an organizational culture where trust, open communication and fairness are emphasized and demonstrated by leaders (by sector): Nonprofit (63%) organizations were more likely than publicly owned for-profits (40%) and privately owned for-profits (43%) to report that creating an organizational culture where trust, open communication and fairness are emphasized and demonstrated by leaders is the tactic most effective in meeting the challenges facing HR over the next 10 years.

7

Comparison by Organization’s Sector


Demographics: Organization Industry

IndustryManufacturing—other 16%

Health care, social assistance (e.g., hospitals, clinics, doctor's offices, in-home care, nursing homes, EAP providers, hospice)

11%

Financial services (e.g., banking) 9%

Services—professional, scientific, technical, legal, engineering 8%

Retail/wholesale trade 6%

Consulting 6%

Educational services/education (e.g., universities, schools) 4%

Government/public administration—federal, state/local, tribal 4%

Insurance 4%

8

Note: n = 431.


Demographics: Organization Industry (continued)

IndustryOther services (e.g., other nonprofit, church/religious organizations) 4%

High-tech 3%

Transportation, warehousing (e.g., distribution) 3%

Manufacturing—auto/auto-related 2%

Telecommunications 2%

Construction, mining, oil and gas 2%

Publishing, broadcasting, other media 2%

Pharmaceutical 2%

Real estate, rental, leasing 1%

Services—accommodation, food and drinking places 1%

Utilities 1%

Arts, entertainment, recreation 1%

Biotech 1%

Association—professional/trade 1%

Other 6%

9

Note: n = 431.


Demographics: Organization Sector

3%

6%

17%

26%

48%

0% 10% 20% 30% 40% 50% 60%

Other

Government sector

Nonprofit organization

Publicly owned for-profit organization

Privately owned for-profit organization

10

Note: n = 429


Demographics: Organization Staff Size

12%

30%28%

21%

10%

0%

10%

20%

30%

40%

50%

50 to 99 employees 100 to 499 employees 500 to 2499employees

2500 to 24999employees

25000 or moreemployees

11

Note: n = 273. Percentages do not total 100% due to rounding.


Demographics: Other

12

Note: n = 438

U.S.-based operations 72%

Multinational operations 28%

Single-unit company: Companies in which the location and the company are one and the same.

28%

Multi-unit company: Companies that have more than one location.

72%

Multi-unit headquarters determines HR policies and practices

44%

Each work location determines HR policies and practices

3%

A combination of both the work location and the multi-unit headquarters determine HR policies and practices

53%

Is the organization a single-unit company or a multi-unit company?

Are HR policies and practices determined by the multi-unit corporate headquarters, by each work location or both?

Does the organization have U.S.-based operations (business units) only or does it operate multinationally?

Note: n = 419

Note: n = 322

• 13% of organizations indicated that employees at their work location were unionized.

Note: n = 425


SHRM Poll: Challenges Facing Organizations and HR in the Next 10 Years

• Response rate = 17%• Sample comprised of 449 randomly selected HR

professionals with the job title of manager and abo ve. • Margin of error is +/- 5%• Survey fielded August 10 – August 23, 2010

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Methodology

For more poll findings, visit: www.shrm.org/surveysFollow us on Twitter: http://twitter.com/SHRM_Research

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Challenges Facing Orgs and HR in the Next 10 Years Facing... · Challenges Facing Organizations and HR in the Next 10 Years | ©SHRM 2010 Key Findings • Getting and Making the Most