32
5. HR IN 2020 A NEW EMPLOYMENT LANDSCAPE A RESOURCE MANAGEMENT WHITE PAPER • WWW.RESOURCE-MANAGEMENT.CO.UK PRESENTED IN ASSOCIATION WITH THE HR WORLD WWW.THEHRWORLD.CO.UK

HR in 2020; a new employment landscape

Embed Size (px)

DESCRIPTION

With a foreword by Helen Norris, Head of HR, Group Operations at Nationwide Building Society, this white paper explores how technology is changing the HR landscape. With the effects of a generational shift, it also discusses the benefits and pitfalls of this new global village.

Citation preview

Page 1: HR in 2020; a new employment landscape

5. HR IN 2020A NEW EMPLOYMENT LANDSCAPE

A R E S O U R C E M A N A G E M E N T W H I T E P A P E R • W W W . R E S O U R C E - M A N A G E M E N T . C O . U K

P R E S E N T E D I N A S S O C I A T I O N W I T H T H E H R W O R L D

W W W . T H E H R W O R L D . C O . U K

Page 2: HR in 2020; a new employment landscape

ABOUT RESOURCE MANAGEMENTWith forty years of experience, we are experts in the

provision of RPO (Recruitment Process Outsourcing) and

MSP (Managed Service Provider) solutions.

At RM we pride ourselves on ‘knowledge-based

recruitment’. We believe the role of a resourcing partner is

to add knowledge, market insight and thought leadership.

Through our consultative approach, which is ‘high touch’

and supportive, our intellectual partnership-led solutions

are implemented and managed by real experts. Our position

of ‘trusted advisor’ is underpinned by a commitment to

continuous improvement and evolution of our services to

meet the business objectives of our clients.

ABOUT THE HR WORLDLaunched in June 2014, The HR World is the premier

networking destination aimed exclusively at senior HR,

talent and resourcing professionals. It is a community for

like-minded peers to sculpt the conversation surrounding

HR best practice, attend quality networking events,

contribute to respected thought leadership content and

build their profiles within the HR arena.

We want our members to shape the direction The HR

World takes by offering them the opportunity to discuss the

most pressing topics, contribute to publications such as

our white papers and attend exclusive networking events.

RSG’s HR Networking ForumThe HR World - Logotype

EXPERT RPO & MSP SOLUTIONS

02

Page 3: HR in 2020; a new employment landscape

CONTENTS02 About Resource Management & The HR World

03 Contents & Acknowledgements

05 Foreword - Helen Norris, Head of HR, Group Operations, Nationwide Building Society

07 Technology; the Effect and Application

10 Human Resource Management in 2020; the Role of IT by David Beard, Senior HRM Lecturer, UWE

12 The Effects of Diversity on Talent

14 Adapt to Survive; can leadership respond?

20 Generalisation Y; in defence of Millennials by Steve Devereux, Marketing Assistant, RSG

21 The transformational challenge; how HR must evolve to be ready for 2020

25 Conclusion – Mike Beesley, CEO, RSG

26 Glossary of terms

27 Guest Profiles

30 Contact Details

ACKNOWLEDGEMENTSResource Management and The HR World are very grateful to those individuals who gave their time to take part in The HR

World Debate and who contributed to the content of this white paper. We give special thanks to Helen Norris for leading the

Debate.

03

Page 4: HR in 2020; a new employment landscape

AS A COMMUNITY OF HR PROFESSIONALS, THE FIRST QUESTION THAT COMES TO MIND IS ‘HOW SHOULD WE RESPOND TO TECHNOLOGY?’

04

Page 5: HR in 2020; a new employment landscape

FOREWORDBY HELEN NORRIS, HEAD OF HR, GROUP OPERATIONS, NATIONWIDE BUILDING SOCIETY

When The HR World asked me to lead the latest round table

discussion, I was delighted to have the opportunity to raise

the topic of ‘HR in 2020 – are we ready?’ Factors such as

the explosive growth in digital and social media technologies

are opening up a whole new role for those in HR, including

the opportunity to take a lead in shaping organisations for the

future.

I grew up with a communal phone in the hall and the delight

of sitting at the bottom of the stairs, trying to have a private

conversation with my friends. For children today the world of

mobile phones, Facebook, Twitter and other means of ‘on

the go’ communication is part of everyday life, so the thought

of working 9-5 in an office seems very dreary. However, as

economic power shifts from the West to the emerging markets

of Latin America, Eastern Europe and Asia, it is not simply

technology and the attitudes of the emerging workforce that are

changing. Rapid growth in these parts of the world is creating a

new global middle class with impressive spending power. This

is leading to intense competition for new markets, each with its

own unique local flavour. People no longer want to be treated

as a commodity; they want to be personally engaged by their

employer.

As the ‘Baby Boom Generation’, those born between

1946 and 1964, hits ‘normal’ retirement age, experienced

talent will be at a premium. This in turn puts pressure on

younger workers to quickly become mature, skilled leaders.

Should we therefore be leveraging the ‘mature’ workforce

in an effort to upskill incoming talent? Many believe that

the emerging ‘Generation Y’ or ’Millennials’, those born

between 1975 and 1995, have a strong focus on the

future, expecting opportunities to progress, to build skills in

multiple areas and to receive frequent constructive feedback.

However, with a held view that much of ‘Gen Y’ are CV building

and interested in citizenship and sustainability, how do we deal

with the fact that these demanding employees may not give

loyalty in return?

As a community of HR professionals, the first question that

comes to mind is ‘how should we respond to technology?’

Do we embrace the wealth of innovations available, reaping

the benefits of being an early adopter? Or do we observe a

more selective approach, carefully choosing which changes to

make, yet potentially missing out on the next big thing? Many

businesses will become increasingly reliant on better technology

and self-service, with employees inputting data independently.

Consequently, entry level HR jobs as they currently exist

will reduce significantly. To evolve, HR may need to embrace

analytics and ‘big data’ to become a more strategic function.

One thing is for certain; to successfully navigate this increasingly

turbulent environment, strong decision makers (and inevitably

good leaders) will be required.

So the big question is, are we ready? Some businesses will

feel sufficiently equipped to face these new challenges but

for others, drastic changes may be required to keep pace in

an increasingly demanding and competitive climate. However

ready we as HR professionals feel, we should take comfort in

the fact that we don’t have to face these issues alone. HR can

greatly benefit from cross-function collaboration with disciplines

such as IT, Legal and Marketing.

Although some believe that the challenges facing HR have been

exaggerated, there is no denying that HR needs to leave its

comfort zone and respond in some capacity to be ready for 2020.

05

Page 6: HR in 2020; a new employment landscape

06

IF PEOPLE CAN WORK AT ANY TIME AND IN ANY LOCATION, WHERE DOES WORK STOP AND PERSONAL TIME BEGIN?

Page 7: HR in 2020; a new employment landscape

TECHNOLOGY; THE EFFECT AND APPLICATION

1 The Law of Accelerating Returns - Ray Kurzweil, 2001 http://www.kurzweilai.net/the-law-of-accelerating-returns

2 The Future of work: A journey to 2022 – PwC, 2014 http://www.pwc.co.uk/human-resource-services/publications/the-future-of-work-a-journey-to-2022.jhtml

3 Big, Bad Data: How Talent Analytics Will Make It Work In HR – Forbes - Meghan M. Biro, 2014 http://www.forbes.com/sites/meghanbiro/2014/08/07/big-bad-data-how-talent-analytics-will-make-it-work-in-hr/

4 Innovating Using Big Data: A Social Capital Perspective – Big Data Expo, 2014 http://www.bigdata-expo.org/EN/news-content.asp?id=9226&sortType=1&columnsid=244

5 Is HR Failing To Capitalize On Big Data? – Forbes - Karen Higginbottom, 2014 http://www.forbes.com/sites/karenhigginbottom/2014/10/09/is-hr-failing-to-capitalize-on-big-data/

6 Layar website: features - https://www.layar.com/features/

BIG DATA AND VITAL ANALYTICSTechnology and data go hand in hand. IBM’s discovery that

90% of all current data was created in the last two years3 means

it comes as no surprise that big data has become an industry

hot topic. Big data can be defined as ‘datasets whose size is

beyond the ability of typical database software tools to capture,

store, manage, and analyse’4. An accurate analysis of big data

may lead to more confident decision making, greater operational

efficiencies, cost reductions and reduced risk. Within HR,

software can utilise data to track employee turnover, retention,

CV suitability and much more; the question is what can be done

with it? The problem is that many organisations still have closed

views on collected data, failing to invest in how it can benefit

performance5. If big data is embraced, organisations can reap

the benefits of proactivity, becoming anticipatory businesses

that predict gaps and solve problems before they occur. The

Debate guests agreed that HR is underutilising big data, a

view in line with findings that only 18% of HR professionals see

themselves as effective anticipators5.

At the dawn of the century, Ray Kurzweil (Chief Engineer, Google) predicted that 20,000 years of progress would happen in 1001; in

reality, change has occurred even faster than that. Technology is transforming society and with it, the ways in which people operate and

work every day. 53% of people believe technology will drive the most significant changes for HR and employment over the next decade2,

impacting the way we plan, review, communicate, engage and recruit.

TALENT MANAGEMENT; HOW TECHNOLOGY CAN HELPIn terms of attracting talented candidates, tech-aided targeting

strategies are helping to fish where the fish are. Helen Norris

(Nationwide) shared how an advanced targeting technique called

‘geo-fencing’ is being trialled by Nationwide, placing a virtual

fence around geographical areas and sending promotional

text messages to individuals who match their criteria (e.g.

cinema patrons). Nationwide also utilises Layar6, an augmented

reality print application, throughout their graduate brochure.

This enables them to bring to life a career at Nationwide with

video clips, whilst also channelling candidates to the graduate

website.

IN TERMS OF ATTRACTING TALENTED CANDIDATES, TECH-AIDED TARGETING STRATEGIES ARE HELPING TO FISH WHERE THE FISH ARE“

07

Page 8: HR in 2020; a new employment landscape

08

TECHNOLOGY’S ROLE IN THE EMPLOYMENT LIFECYCLE

7 Gamification: not fun and games, but a serious HR tool – Information Age - Ben Rossi, 2014 http://www.information-age.com/it-management/skills-training-and-leadership/123458498/gamification-not-fun-and-games-serious-hr-tool

8 Twitter website: about, 2015 https://about.twitter.com/

9 Why Employee Engagement? – Forbes - Kevin Kruse, 2012 http://www.forbes.com/sites/kevinkruse/2012/09/04/why-employee-engagement/

10 LinkedIn website: about, 2015 https://www.linkedin.com/about-us?trk=hb_ft_about

11 Glassdoor website: companies and reviews, 2015 http://www.glassdoor.co.uk/Reviews/index.htm

EMPLOYEE ENGAGEMENTWhen candidates become

employees, technology can be

beneficial in helping to solve the

engagement problem. One Debate

guest gave a great example

of how their company uses an

internal Twitter8 feed to engage

their workforce. The platform has

defied generational, geographical

and hierarchical divides, with

a diverse range of employees

sharing content such as pictures,

charitable endeavours and work-

based achievements company-

wide. The combination of humour,

information and accomplishments

has engaged the majority of

the business, whilst the risk

of offensive content is nullified

by near-real time moderation.

Gamification can also be used

at this stage for onboarding,

learning and development. Forbes

contributor Kevin Kruse stated

that engaged employees ‘care

more, are more productive, give

better service and even stay in

their jobs longer’9.

ATTRACTION; THE HIRING PROCESS One of the biggest technology-driven

transformations is happening in the hiring

process. A job interview used to consist of a

paper-based application form and a face-to-

face interview; these days, video CVs and

virtual interviews allow candidates to progress

to the latter application stages without

physically meeting anyone. Automated systems

are commonly in place to test, evaluate and

either ‘auto-reject’ or progress candidates in

the early application stages. The overall Debate

response to this process was negative, due

to its impersonal nature. However, for large

corporations with high volumes of applicants, it

was accepted that this may be the only option.

In addition to using video, mobile device

optimisation, social media and apps in

recruitment, proactive businesses are also

utilising gamification. Gamification ‘selectively

uses the mechanics that bring out people’s

natural desires for competition, achievement,

status, self-expression and closure’,7 replacing

presentations and surveys with a more

interactive and enjoyable medium. Using this

can help businesses to evaluate a candidate’s

behaviours, views and overall suitability. There

are some inspiring examples of gamification

in practice; the Marriott Hotel Group’s app

enables users to perform virtual hotel service

tasks (to sieve out applicants who lack the

required aptitude), and HCL Technologies send

an interactive game to job-offered applicants7

thirty days before they start, to onboard, record

engagement and predict offer rejections.

MONITORING GOOD LEAVERSMany businesses treat an employee

leaving like a bad break up, but

does it always have to be that way?

Technology can help businesses

communicate with and track those

ex-employees regarded as ‘good

leavers’, enabling them to potentially

call upon their services again in

the future. For example, LinkedIn10

profiles can often reveal where they

are working and any additional

skills they have gained. This means

organisations may have access

to current data on a talent pool of

ex-employees that could become

candidates in the future. Many

large organisations also utilise a

well established alumni network to

remain connected, with supporting

emails and events. These can also

lead to future opportunities, as

organisations are monitoring and

communicating with a pool of ex-

employees at other businesses, so

already have one foot in the door

for any future interactions. If an

employee’s departure was handled

poorly however, they are unlikely

to remain in contact. This is in

fact where technology becomes a

threat; dissatisfied leavers can use

social media and platforms such as

Glassdoor11 to publically criticise and

damage employer brand.

Page 9: HR in 2020; a new employment landscape

09

REVOLUTIONISING THE WAY WE WORKDebate guest Martin Spencer (Gocompare.com) revealed that

it is very difficult for his company to take their website down for

maintenance, even on Christmas Day or in the small hours of the

morning, due to the risk of losing customers. This demonstrates

perfectly the emergence of an ‘always on’ culture, both for

business and employees. As the workplace shifts to ‘the cloud’

and technology continues to break down geographical barriers,

remote and flexible working is becoming increasingly common.

An employee no longer needs to be at work to be working and

instead, employees are using their personal devices to operate

wherever and whenever they find most convenient.

People are now able to collaborate in virtual teams, regardless

of location and without physically meeting. These factors enable

employees to demand far more flexibility and autonomy in their

working life, and the capability of managing projects

and workloads is becoming an essential skill for both employer

and employee12. So if people can work at any time and in any

location, where does work stop and personal time begin?

Guests of The HR World Debate discussed Bring Your Own

Device (BYOD), always on, the virtual office and flexible/remote

working at length, but what was most interesting is the degree

to which their approaches and views varied. Whilst on annual

leave, one guest chooses to check their emails for an hour per

day. Others regularly respond to emails, and some try to shut off

completely. Adam Meadows (RSG) stated a preference to work

face-to-face with people and meet those he’s collaborating

with, yet other guests seemed much more comfortable with the

concept of virtual working. The diversity of opinion in a room filled

with senior industry professionals tells us that these technology-

driven changes will be a differentiator for businesses, potentially

having a significant impact on success.

12 The jobs evolution is already here – CIPD - Claire Churchard, 2014 http://www.cipd.co.uk/pm/peoplemanagement/b/weblog/archive/2014/12/11/the-jobs-evolution-is-already-here.aspx

7 Gamification: not fun and games, but a serious HR tool – Information Age - Ben Rossi, 2014 http://www.information-age.com/it-management/skills-training-and-leadership/123458498/gamification-not-fun-and-games-serious-hr-tool

8 Twitter website: about, 2015 https://about.twitter.com/

9 Why Employee Engagement? – Forbes - Kevin Kruse, 2012 http://www.forbes.com/sites/kevinkruse/2012/09/04/why-employee-engagement/

10 LinkedIn website: about, 2015 https://www.linkedin.com/about-us?trk=hb_ft_about

11 Glassdoor website: companies and reviews, 2015 http://www.glassdoor.co.uk/Reviews/index.htm

Page 10: HR in 2020; a new employment landscape

As we emerge from recession and look towards 2020,

the future of Human Resources Management (HRM)

seems uncertain and is likely to be influenced by the pace

of recovery. However, the future role of IT in HRM may

be easier to predict. Recent studies highlight a growing

trend towards cloud-based HRM (e-HRM), accessed

via corporate intranets13. Many large organisations are

investing in such services and the effects will be felt for

many years to come, yet these investments are often

made in the absence of a clear strategy. Research points

to a lack of theoretical frameworks in the deployment

of e-HRM14, suggesting poor strategic alignment. The

adoption of e-HRM is frequently HR-driven and motivated

by ‘dissatisfaction avoidance’15; that is, the desire to avoid

frustration and complaints from employees with HR service

delivery, rather than business strategy.

The key emerging e-HRM adoption trends which may

influence future HRM include:

10

We would like to give special thanks to David Beard, Senior Human Resource Management

Lecturer at the University of the West of England, for providing this case study.

CASE STUDY:

HUMAN RESOURCE MANAGEMENT

IN 2020BY DAVID BEARD,

SENIOR HUMAN RESOURCE MANAGEMENT LECTURERUNIVERSITY OF THE WEST OF ENGLAND

Page 11: HR in 2020; a new employment landscape

13 For example, Stavrou, E. T., Brewster, C., & Charalambous, C. Human resource management and firm performance in Europe through the lens of business systems: best fit, best practice or both? The International Journal of Human Resource

Management, 2010, 21(7), 933-962.

14 Schalk, R., Timmerman, V. and Heuvel, van den, S. “How strategic considerations influence decision making on e-HRM applications”, Human Resource Management Review; Volume 23, Issue 1, 2013, 84-92

15 Stavrou and Brewster

16 Oracle website: about http://www.oracle.com/uk/corporate/index.html

17 Karakanian, M. (2000). Are human resources departments ready for e-HR? Information Systems Management, 17(4), 35-39.

‘BEST PRACTICE’ INSTEAD OF ‘BEST FIT’ HRM

Customised and expensive early generation HR systems are being replaced with standard cloud-based services,

accessed under license from giant software suppliers such as Oracle16. For many organisations, the advantages

of cloud-based systems are clear; state-of-the art service delivery at a reasonable cost, maintained by third party

experts. An unexplored consequence of this is the forced adoption of systems-driven ‘best practice’ HRM, rather

than a ‘best fit’ approach as advocated in HRM theory13. New e-HRM is standard and often requires organisations

to re-engineer HR processes around them. For example, a UK-based global telecommunications company recently

deployed an Oracle Fusion e-HRM system across its world-wide operations, replacing various heavily customised

versions of an earlier e-PeopleSoft system. Extensive process changes were required and the functionality of the

new e-HRM became lower than its predecessor, raising questions about its alignment with other systems and its

acceptability to users.

SMALLER, MORE SPECIALISED HRM DEPARTMENTS

New e-HRM provides self-service for users, reducing, or even eliminating, the need for HR staff in basic service

delivery. Its introduction has accelerated a trend towards smaller HR departments, offering specialist business

partnering services contributing to business strategy. The ability of e-HRM to generate a wealth of real-time data

supports these new strategic activities. More and more of HR’s time is being spent in a service broker or contract

manager role17, mediating between internal customers and external suppliers. Evidence in the marketplace

suggests that a well-planned e-HRM investment can fully recover costs within 18-24 months.

REVERSAL OF OUTSOURCING

Simplified self-service e-HRM with dynamic approvals routing is reducing demand for large HR service centres.

Earlier outsourcing models, using third party suppliers in low-cost locations for high-volume delivery, are rapidly

becoming obsolete. New cloud-based e-HRM offers automated services which were previously delivered by HR

services centres, providing real-time data for smaller services centres to manage remaining HR transactions.

Recently, a UK-based global telecommunications and broadcast company invested in cloud-based systems to

reduce HR delivery volumes by its service centres. This allowed their return to the UK from locations in Eastern

Europe and India. Interestingly, the company is now considering using its cloud-based capabilities for revenue

generation, by selling managed HR services to other organisations.

As these brief case studies illustrate, IT is likely to have a profound influence on HRM in 2020. It will enable smaller,

specialist HR functions to offer strategic services and demonstrate a return on investment. It may also allow

successful HR departments to sell managed services for profit.

3

2

1

11

Page 12: HR in 2020; a new employment landscape

12

18 The Future of work: A journey to 2022 – PwC, 2014 http://www.pwc.co.uk/human-resource-services/publications/the-future-of-work-a-journey-to-2022.jhtml

19 The Gutenberg Galaxy: the Making of Typographic Man – Marshall McLuhan, 1962

20 Working with 5 generations in the workplace – Forbes – Rawn Shah, 2014 http://www.forbes.com/sites/rawnshah/2011/04/20/working-with-five-generations-in-the-workplace/

THE EFFECT OF

DIVERSITY ON TALENT THE GLOBAL VILLAGEWhilst technology will evidently impact how we work in 2020,

the workforce itself is also growing increasingly diverse. Diversity

extends beyond gender, race and religion, encompassing sexual

orientation, culture, age, disability and all ways in which people

differ. A global study of over 10,000 people found that 33%

believe demographic shifts, and increased workplace diversity,

will have the biggest impact on HR in the next 10 years18.

Technology’s creation of a ‘global village’19 means that modern

working can involve collaboration across time zones and

continents, with people of different cultures working together in

global teams. Debate leader Helen Norris (Nationwide) shared

that one of her UK-based peers gives tasks to an assistant

in Australia, which are then completed by the time she starts

work the next day, perfectly demonstrating cross time zone

collaboration.

Increased diversity due to globalisation is also likely to have a

huge impact on employee mobility, providing opportunities to

move to different offices around the world. Modern businesses

are a collage of gender, ethnicity, age, nationality, culture and

more, but why is this important? The Debate guests supported

the view that the significance of this for HR regards workplace

behaviours, how to drive employee engagement and the

practices and tools employees require to interact20.

TECHNOLOGY’S CREATION OF A ‘GLOBAL VILLAGE’19 MEANS THAT MODERN WORKING CAN INVOLVE COLLABORATION ACROSS TIME ZONES “

Page 13: HR in 2020; a new employment landscape

21 Employers face new challenges from ageing workforce – The Telegraph, 2014 http://www.telegraph.co.uk/finance/jobs/10634819/Employers-face-new-challenges-from-ageing-workforce.html

22 What’s true about Millennials and what’s not: the why of Gen Y – CEB, 2014 http://www.executiveboard.com/exbd/human-resources/millennial-talent/index.page?cid=701800000019Tyy

23 The 2020 workforce: building a strategic workforce for the future – Success Factors and Oxford Economics (Webinar), 2014 http://www.successfactors.com/en_us/lp/oxford-economics-workforce-hub-pr.html#.VP1nAsmeYcs

24 The Future of work: A journey to 2022 – PwC - http://www.pwc.co.uk/human-resource-services/publications/the-future-of-work-a-journey-to-2022.jhtml

25 Lexicon – Financial Times, 2015 http://lexicon.ft.com/term?term=principal/agent-problem

18 The Future of work: A journey to 2022 – PwC, 2014 http://www.pwc.co.uk/human-resource-services/publications/the-future-of-work-a-journey-to-2022.jhtml

19 The Gutenberg Galaxy: the Making of Typographic Man – Marshall McLuhan, 1962

20 Working with 5 generations in the workplace – Forbes – Rawn Shah, 2014 http://www.forbes.com/sites/rawnshah/2011/04/20/working-with-five-generations-in-the-workplace/

13

WHEN GENERATIONS COLLIDEAn increasing life expectancy and an ageing population means

that people are working beyond ‘normal’ retirement age, leading

to an overall ageing of the UK labour market21. However, there

is also an influx of smart young talent, pushing the boundaries

of working culture. Jeanne Meister (co-author of ‘The 2020

Workplace’) observed that ‘in four years, Millennials will account

for nearly half the employees in the world’20. There are many

preconceptions about Gen Y, who are a heavily stereotyped

demographic. Common assumptions include an absence of

employee loyalty, a tendency to ‘job hop’, a sense of entitlement

regarding earnings, progression and training, a high degree of

technological competency and confidence, and an expectation

of employer loyalty and attention. Neil Ellett (Xerox) shared his

view that many Millennials expect employer loyalty but don’t

necessarily feel obliged to return the favour, whilst Martin

Spencer (Gocompare.com) added that they now expect fringe

benefits and perks as standard (because other companies are

offering the same). Whilst there is some truth in this impression,

many agree that there exists a ‘Millennial misunderstanding’.

In comparison with other generations, research has confirmed

that to some extent, Millennials do expect to be paid more

and promoted faster, are more likely to leave their jobs and do

demand more career development opportunities22. However,

any business hoping to effectively manage Gen Y needs to read

between the lines. The Debate guests expressed their belief

that the differences between Millennials and other generations

are exaggerated, with the media playing a large part. Mike

Beesley (RSG) championed this view, stating that in most cases

the core motivations of the Gen Y workforce are the same as

the workforce of 30 years ago , and that the ‘career for life’

decline is not a recent phenomenon. Employers must consider

for a moment the environment in which modern employees

and jobseekers exist, where information is readily available on

company salaries, employee satisfaction and benefits. Many

guests agreed that Gen Y’s desire for comparative information

is turning job interviews into a two-way process, whereby the

candidate is simultaneously assessing the interviewer, job

role and business. In addition, Caroline Beer (The HR World)

reminded guests that Millennials are also regularly targeted

with employment opportunities through advertising, recruitment

specialists and platforms such as LinkedIn. People are, to

some extent, a product of their environment, so is it really that

surprising that the wealth of information and opportunities

in modern society is producing informed and demanding

individuals?

With this demographic set to form the workforce of the

future, businesses must aim to understand and satisfy their

demands, in addition to managing and integrating a mixture of

generations. In fact, how effectively 2020 leadership responds

will likely be another key indicator of future talent management

and inevitably, business performance.

A POTENTIAL SHIFT IN THE EMPLOYMENT LANDSCAPEIn addition to the changes in how we work and who we work

with, many also believe that we could see a significant shift in

how we are employed. 83% of executives employ temporary

workers and 46% believe that over a fifth of their workforce will

soon be contingent23. This trend looks set to continue, ensuring

that the 2020 workforce will be increasingly flexible. It has even

been suggested that traditional employment could disappear,

replaced entirely by self-branded individuals selling their skills.

Whilst this may not come to fruition, there has certainly been

a significant rise in contracting, with an increasing number

viewing themselves as members of a discipline, as opposed

to part of a company24. From an organisational perspective this

increase in flexibility appears positive, but it comes at a cost.

Many non-permanent workers are not sufficiently integrated into

a business, often experiencing mistreatment, exclusion and the

inappropriate delegation of unfavourable tasks, reducing their

productivity.

Another issue is the ‘principle-agent problem’ (agency theory),

which is the challenge of motivating one party (the agent) to

act in the best interests of another (the principal)25. Temporary

workers may prioritise work for other clients or rush jobs so that

they can take on new business, due to less attachment to a

company than a permanent employee. So, should businesses

invest time and money into integrating and training these

temporary workers?

The impact on work driven by factors such as employment type,

culture, gender and religion could form a white paper in itself,

but conversation at this Debate centred on demographics and

in particular, workplace generations.

COULD TRADITIONAL EMPLOYMENT BE REPLACED ENTIRELY BY SELF-BRANDED INDIVIDUALS SELLING THEIR SKILLS?“

Page 14: HR in 2020; a new employment landscape

14

26 The Future of work: A journey to 2022 – PwC, 2014 http://www.pwc.co.uk/human-resource-services/publications/the-future-of-work-a-journey-to-2022.jhtml

27 The 2020 workforce – building a strategic workforce for the future – Success Factors and Oxford Economics (Webinar), 2014 http://www.successfactors.com/en_us/lp/oxford-economics-workforce-hub-pr.html#.VP1nAsmeYcs

28 Working with 5 generations in the workplace – Forbes - Rawn Shah, 2011http://www.forbes.com/sites/rawnshah/2011/04/20/working-with-five-generations-in-the-workplace/

29 Prezi website, 2015 http://prezi.com/business-8/?gclid=CNiG4O3kncQCFcXItAodL14A5w

ADAPT TO SURVIVECAN LEADERSHIP RESPOND?Many senior figures believe that the required shift in management

practices, to accommodate the rapidly changing workplace, will

have the single biggest impact on the way we work in the next

ten years26. It is therefore concerning that in an international

employee study, only 34% believe that management is

prepared to lead a diverse workforce, and just 47% think they

can effectively lead global teams27. With a lot of inexperienced

talent entering the workforce through entry level positions and

graduate schemes, is there a danger of the ‘blind leading the

blind?’ Guests of The HR World Debate discussed the ways in

which leadership must respond to key areas of change, with

technology at the heart of the discussion once again.

LEADERSHIP’S RESPONSE TO TECHNOLOGYGen Y workers are not just familiar with new technology, but

expect to see it integrated into their working environment28.

With technology experiencing constant innovation, the task

of deciding which technologies to adopt and which to reject

becomes increasingly difficult. It was suggested at the Debate

that a ‘sheep mentality’ has emerged, with people fearing that

they are missing out by not adopting popular innovations in their

industry. One guest shared a cautionary tale; their business

purchased presentation software Prezi29 because it was a ‘hot

product’, only to discover that it lacked the level of flexibility they

required. The agreed upon solution was that leaders need to

ask themselves which innovations are relevant and appropriate,

only adopting new technology if it is likely to solve a business

need, improve a function or create a new opportunity.

IT IS CONCERNING THAT ONLY 34% OF EMPLOYEES BELIEVE THAT MANAGEMENT IS PREPARED TO LEAD A DIVERSE WORKFORCE

THE TASK OF DECIDING WHICH TECHNOLOGIES TO ADOPT AND WHICH TO REJECT IS BECOMING INCREASINGLY DIFFICULT

Page 15: HR in 2020; a new employment landscape

30 ‘Wear your own device,’ WYOD, is coming to a workplace near you – ZDNet – Joe McKendrick, 2013 http://www.zdnet.com/article/wear-your-own-device-wyod-is-coming-to-a-workplace-near-you/

31 Facebook remarks that justify dismissal – CIPD - Jennie Atefi, 2014 http://www.cipd.co.uk/pm/peoplemanagement/b/weblog/archive/2014/10/24/facebook-remarks-that-justify-dismissal.aspx

26 The Future of work: A journey to 2022 – PwC, 2014 http://www.pwc.co.uk/human-resource-services/publications/the-future-of-work-a-journey-to-2022.jhtml

27 The 2020 workforce – building a strategic workforce for the future – Success Factors and Oxford Economics (Webinar), 2014 http://www.successfactors.com/en_us/lp/oxford-economics-workforce-hub-pr.html#.VP1nAsmeYcs

28 Working with 5 generations in the workplace – Forbes - Rawn Shah, 2011http://www.forbes.com/sites/rawnshah/2011/04/20/working-with-five-generations-in-the-workplace/

29 Prezi website, 2015 http://prezi.com/business-8/?gclid=CNiG4O3kncQCFcXItAodL14A5w

15

FISH WHERE THE FISH AREOne of the key influences technology exerts on business is

through social media. The vast majority of organisations,

stakeholders and customers use a variety of social media

platforms, creating numerous risks and opportunities that

require a leadership response. The Debate guests agreed that

many businesses do not sufficiently align their social media

with corporate strategies, wasting valuable opportunities for

brand development and business generation. Adam Meadows

(RSG) asked, “who’s friends with or following Xerox or First

Great Western and why? Some follow to keep updated and

some follow to complain. You must consider your followers

and produce content accordingly; one size doesn’t fit all”.

Organisations need to understand their target audience,

ensuring that their social media output contributes to business

efforts by tailoring content across platforms. Again, leaders need

to be effective decision makers; if certain social media platforms

aren’t appropriate for their business, they shouldn’t be afraid

of avoiding them. What they should avoid is worshipping false

idols, valuing the number of followers, friends or views as more

important than relevant connections and interactions. For those

leaders struggling to grasp the power of social media due to its

un-quantifiable ROI, Neil Ellett (Xerox) provided a great example:

“when the Ministry of Defence (MOD) entered Libya, they felt

they didn’t need social media or PR. In the end, Al Jazeera’s PR

and social media teams were destroying them publically, so the

MOD brought in a significant PR and Comms team to protect

and develop their brand in response”.

SOCIAL MEDIA; THE RISKS AND THE REWARDSLeaders need to understand how technology can blur the

boundaries between work and personal life, specifically through

social media, BYOD and now, Wear Your Own Device (WYOD)30.

The mobilisation of technology means that employees can

access their social media profiles and work emails from various

devices in most locations. This both creates and solves problems;

unrestricted access can lead to procrastination at work, but it

can also improve productivity for those who use social media

as part of their job (such as Marketing and Comms). Leaders

need to decide the extent to which they empower employees

with trust and responsibility or alternatively, control access with

server filters and restrictive policies.

Social media can become a serious problem when employees

use work or personal accounts inappropriately. Leaders

therefore need to ensure that there exists an education in

correct social media conduct, including the consequences

of posting inappropriate content for public consumption. In a

2011 case entitled ‘Crisp vs. Apple Retail’31, an employee made

disparaging comments on Facebook about his employer and

the company’s products. The employment tribunal concluded

that the comments were damaging the employer’s reputation. In

this case, the employee had received specific training on how to

properly use social media in the context of his employment and

therefore, the employee’s dismissal was deemed fair.

Page 16: HR in 2020; a new employment landscape

16

ALWAYS ON!Matters are complicated further as the prevalence of BYOD increases. Personal devices

can raise security and confidentiality issues (concerning company data and files), are

often immune to restrictive filters and increase the likelihood of receiving work-related

communications when out of the office. The latter contributes to the ‘always on’

phenomenon, with the methods of tackling this one of the more divisive topics of the

evening. Suggested out of office approaches included only answering phone calls,

checking emails just once a day and shutting off devices completely. Neil Ellett (Xerox)

shared his philosophy of empowerment, which is achieved by shutting off from work

when away and challenging his team to manage his inbox, duties and responsibilities. The

Debate guests suggested that empowerment could also be referred back to social media;

whilst some restriction may be necessary, leaders need to learn to focus on measuring

output and not input. What seemed evident is that the appropriate leadership response

is subjective, and as long as a healthy work-life balance is maintained, leaders should

decide on an approach that suits themselves and their team best.

AGILE WORKINGAs the 9-5 Monday-Friday working week becomes less and less uniform, modern

managers face the challenge of leading an increasingly remote and flexible workforce.

Technology allows employees to access work networks from devices in most locations,

meaning they no longer have to be in work to be at work. Modern leaders must decide

the extent to which they embrace this new flexibility, or enforce a more traditional model.

Some guests felt that a physical hub or office space was still important, and that people

work together more effectively in person. Mike Beesley (RSG) shared his strong belief

that employees still want a workplace and seek the community environment; this was

supported by Sam Blackie (Royal London Group), who commented that people are tribal

at heart and want to belong. However, the multi-national nature of modern business

means that individuals may have to work in virtual teams, where face-to-face interactions

are rare or non-existent.

VIRTUAL COLLABORATIONSo is virtual collaboration inferior to working in the same room? Many issues were raised

including time zone disparity, contrasting convenience and communication problems in

group tele-conferences. John Power (Legal & General) had a positive view on virtual

working, championing video conferences in particular; he stated that they enable the

immediate feedback of face-to-face interactions, providing the best of both worlds.

Whichever method of remote communication is utilised, Helen Norris (Nationwide) believes

that leaders need to ensure an etiquette is adhered to, with participants communicating

regularly, engaged in interactions and allowing everyone to contribute. The Debate

response was supportive of remote teams meeting face-to-face on occasion, to better

understand each other’s personalities and characteristics. This in turn helps shape the

tone and nature of virtual collaboration and communication in the future.

PERSONAL DEVICES CAN RAISE SECURITY ISSUES CONCERNING COMPANY DATA AND ARE OFTEN IMMUNE TO RESTRICTIVE FILTERS

MODERN MANAGERS FACE THE CHALLENGE OF LEADING AN INCREASINGLY REMOTE AND FLEXIBLE WORKFORCE

VIDEO CONFERENCES ENABLE THE IMMEDIATE FEEDBACK OF FACE-TO-FACE INTERACTIONS, PROVIDING THE BEST OF BOTH WORLDS

Page 17: HR in 2020; a new employment landscape

32 Three ways HR can understand the workplace of the future – Personnel Today - Cath Everett, 2015 http://www.personneltoday.com/hr/three-ways-hr-can-understand-the-workplace-of-the-future/

33 Flexible working overview – Gov.uk, 2015 https://www.gov.uk/flexible-working/overview

17

OUTPUT OVER INPUTAccording to Mandy Moore (Hay Group), one of the key leadership challenges will be “learning how to manage remote staff, potentially

from a range of different cultures and geographies, based on output rather than input”32. The flexible working trend is gathering pace,

especially given the recent legislation that ‘encourages working that suits an employee’s needs, e.g. having flexible start and finish times,

or working from home’33. For traditionalists in particular, embracing the fluctuating timetable of the working week may be problematic.

Combine this with the fact that many businesses are outsourcing activities or employing contractors, and the required shift in approach to

manage work taking place in multiple locations, at varying times and by various people becomes clear. The Debate response supported

the theory that leaders need to become more output focused. Organisational structures will continue to flatten, with a decentralisation of

command necessitated by the need for flexible workers to manage their own schedule and input.

It will take time for managers to accept that a member of their team may choose to do their weekly shop on a Wednesday afternoon.

However, if an employee is able to deliver great results whilst working flexibly or remotely, does it really matter how? Working flexibly

enables individuals to strike a healthier work-life balance, and if leaders are happy with the results, then this should be a win-win scenario.

Whilst Helen Norris (Nationwide) shared that she doesn’t believe remote management is natural to most managers, Chris Buckingham

(Resource Management) believes it is a necessary skill, as more and more employees demand choice and flexibility. This view was echoed

by Neil Ellett (Xerox), who stated that “customers have a preference as to how they contact you, just as employees have a preference

as to how they work”. A further issue raised at the Debate was that whilst a flexible or remote worker’s output may be sufficient, it could

be significantly below their potential, which is harder to assess without supervision. When a manager can oversee the means to which

employees achieve an end, they can advise and correct poor practice; empowering employees with independence requires a lot of trust.

An effective leadership response could be the communication of specific output-based targets and goals, with leaders available in a

consultancy role where required.

Page 18: HR in 2020; a new employment landscape

18

34 Diversity at Work: Elements of a diverse workforce – Hrcouncil, 2014 http://hrcouncil.ca/hr-toolkit/diversity-workforce.cfm

35 Managing a Geographically diverse workforce – HR magazine - Nicholas Roi, 2013 http://www.hrmagazine.co.uk/hro/features/1077582/managing-geographically-diverse-workforce

36 Job Hopping Is the ‘New Normal’ for Millennials – Forbes – Jeanne Meister, 2012 http://www.forbes.com/sites/jeannemeister/2012/08/14/job-hopping-is-the-new-normal-for-millennials-three-ways-to-prevent-a-human-resource-nightmare/

37 Attrition rates for contact centres leap – HR Zone – Neil Davey, 2015 http://www.hrzone.com/lead/change/attrition-rates-for-contact-centre-staff-leap

DIVERSITY AND DEMOGRAPHICSWith an increasingly diverse workforce to manage, leaders must

understand unique circumstances and how they need to be

incorporated into work34. Senior management behaviour needs

to set the tone, aligning with organisational values and ensuring

that employee integration is a priority. Beginning with effective

onboarding, specific systems (universal to the organisation)

need to be in place for all divisions of the workforce to remain

cohesive and productive35. The Debate focused heavily on

the diversity of generations in the workforce, specifically the

collision of demographics and managing Millennials. Many Gen

Y stereotypes were highlighted and Helen Norris (Nationwide)

shared her view that mature employees need to mentor Gen Y, in

exchange for assistance with new technologies and processes

in a dual learning process. However, an important point raised

early on in the discussion was that employees may not exhibit

the perceived behaviours of their generation group. Sam Blackie

(Royal London Group) added that whilst there are generational

trends, leaders should segment based on need, not age.

One of the most discussed stereotypes of Millennials centres

around disloyalty and the job hopping trend. Research suggests

that the average worker stays at their job for 4.4 years; however

the figure for Gen Y is said to be just half that36. Claiming that

this is simply due to Gen Y’s supposed disloyal and demanding

nature carries little weight; it is less about different generations

and more about the fact that the world of work today is very

different. In this environment, more and more young people

find themselves in low quality jobs lacking reward and content,

where there is a casual attitude towards staff turnover. Call

centres are a great example, with the industry staff turnover

figure expected to be around 26%37. Asda decided to take action

regarding their own call centre; they revamped their employee

engagement strategy, prioritising empowerment and career

progression. As a result, the number of Asda call centre staff

leaving for other jobs fell to an impressive 1.3% in 201438. So is

it really fair to treat people as disposable commodities and then

blame their departure on a generational lack of loyalty?

Interestingly, it was also suggested that an increasingly high

employee turnover can actually present an opportunity, with

talented people regularly becoming available. However, Martin

Spencer (Gocompare.com) countered that for roles requiring

rare skill sets, this still presents an issue. The guests also agreed

that a negative stigma can be attached to ‘ex-employees’, when

in reality their reasons for leaving could be a lack of progression

opportunities, life circumstances, low engagement or poor

management. Chris Buckingham (Resource Management)

believes that if the door is kept open for ‘good leavers’ and they

remain engaged with the business they are leaving, businesses

can re-hire upskilled talent in the future, whilst also gaining

valuable competitor intelligence. The Debate guests concluded

that leaders need to establish their own management philosophy

regarding staff and the social contract, which will likely differ

on career management responsibility, employee loyalty, good

leavers and the acceptable length of employment.

DOES HIGH EMPLOYEE TURNOVER ACTUALLY PRESENT AN OPPORTUNITY, WITH TALENTED PEOPLE REGULARLY BECOMING AVAILABLE?“

Page 19: HR in 2020; a new employment landscape

39 What’s true about Millennials and what’s not: the why of Gen Y – CEB (Corp Exec Board company), 2014 http://www.executiveboard.com/exbd/human-resources/millennial-talent/index.page?cid=701800000019Tyy

40 The 2020 workforce –building a strategic workforce for the future – Success Factors and Oxford Economics (Webinar), 2014 http://www.successfactors.com/en_us/lp/oxford-economics-workforce-hub-pr.html#.VP1nAsmeYcs

34 Diversity at Work: Elements of a diverse workforce – Hrcouncil, 2014 http://hrcouncil.ca/hr-toolkit/diversity-workforce.cfm

35 Managing a Geographically diverse workforce – HR magazine - Nicholas Roi, 2013 http://www.hrmagazine.co.uk/hro/features/1077582/managing-geographically-diverse-workforce

36 Job Hopping Is the ‘New Normal’ for Millennials – Forbes – Jeanne Meister, 2012 http://www.forbes.com/sites/jeannemeister/2012/08/14/job-hopping-is-the-new-normal-for-millennials-three-ways-to-prevent-a-human-resource-nightmare/

37 Attrition rates for contact centres leap – HR Zone – Neil Davey, 2015 http://www.hrzone.com/lead/change/attrition-rates-for-contact-centre-staff-leap

19

MANAGING MILLENNIALSWhilst the figures suggest that some acceptance of increasing

employee ‘churn’ will be required, leaders do not need to stand

idly by. An analysis of the reasons behind this increasing trend

among Gen Y reveals opportunities, especially regarding career

development and job content. It is a common misconception that

Millennials want to job hop; in reality they want to ‘experience

hop’, with most stating that other internal opportunities are just

as desirable39. John Power (Legal & General) commented that

those on graduate schemes, accountants and military personnel

experience varied roles and locations, and that more leaders

should endeavour to provide a similar offering to non-graduates

and entry level employees. This not only holds an employee’s

interest, but simultaneously creates a pool of talent with cross-

functional experience, although a specialism vs. transferrable

skills debate is raised as a result. Whilst in practice there can be

a reluctance to move staff across functions, research has shown

that companies can retain staff by offering diverse experiences

as opposed to fast promotion39. The guests supported this

philosophy of shifting career development back to the employer,

adding that offering a long-term progressive and varied pathway

will help retain more of Gen Y.

So what else can leaders try? 50% of Millennials expect regular

managerial feedback and 58% view themselves as competitive,

frequently comparing their work with their peers40. Leaders can

create comparison opportunities, for instance games, leader

boards and competitions where individual output is visible, whilst

providing feedback on performance and areas of improvement.

Other examples of businesses accommodating Gen Y include

encouraging loyalty through employee recognition schemes and

job changes every few years, offering global opportunities and

using digital specialists to modernise technology and culture.

It is clear that there are numerous opportunities for leadership

response, attempting to meet future trends and developments

head on; however the Debate guests concluded that what we

really need are more effective leaders. These leaders need to

be identified based upon their management competencies and

character, as opposed to length of tenure.

IT IS A COMMON MISCONCEPTION THAT MILLENNIALS WANT TO JOB HOP; IN REALITY THEY WANT TO ‘EXPERIENCE HOP’“

Page 20: HR in 2020; a new employment landscape

GENERALISATION Y; IN DEFENCE OF MILLENNIALS

BY STEVE DEVEREUXMARKETING ASSISTANT

RESOURCE SOLUTIONS GROUP (RSG)

Entering the workplace in my early 20’s and straight out of university,

it is strange to think that I am part of the Gen Y demographic so

heavily featured in the media. I believe that stereotypes such as being

demanding, disloyal and impatient are offensive; in my eyes, much of this

generation’s behaviour is in fact motivated by ambition. Technology has

opened up a whole world of opportunity when it comes to communication

and information, meaning that we are aware of, and constantly compare,

what others are doing. If you know what is out there and what others are

experiencing, this can often lead to higher expectations.

As well as being ambitious, I think that much of Gen Y are confident in

their ability to gain employment, with job boards, recruitment agencies

and LinkedIn constantly presenting opportunities. The modern employee

is therefore more likely to consider leaving a company if the social contract

has not been maintained, or if there are insufficient opportunities to

progress. A friend of mine is employed by a company that offers job and

location rotation, training, a payment schedule and a planned progression

timeline. As a result, he intends to make a long-term commitment to that

business. So you could argue that it is often the quality of jobs on offer,

as opposed to the people taking them, that are the problem.

A 2014 Oxford Economics global study of 5,500 employees found that

the motivations and views of Gen Y are in fact extremely similar to those

of Gen X (those born around the 60s and 70s) et al. Some of their core

motivations were competitive compensation (Gen Y 68% vs. other 64%),

bonuses/merit awards (Gen Y 55% vs. other 56%) and annual leave (43%

each)41, with the generational variance marginal. These findings support

the view that Millennials are not so alien, just a product of (and willing to

exploit) an environment that they perceive to be filled with opportunity.

20

41 The 2020 workforce –building a strategic workforce for the future – Success Factors and Oxford Economics (Webinar), 2014 http://www.successfactors.com/en_us/lp/oxford-economics-workforce-hub-pr.html#.VP1nAsmeYcs

Page 21: HR in 2020; a new employment landscape

THE TRANSFORMATIONAL CHALLENGE; HOW HR MUST EVOLVE TO BE READY FOR 2020HR is at a crossroads. Perceived by many to be as passive and service orientated42, the function needs to evolve and develop. Elements

of HR and the hiring function are already being replaced by technology43, and disruptive innovations are rendering many junior HR roles

obsolete due to self service. As a result, the view that much of HR’s procedures could be absorbed into other functions was raised at the

Debate. Whilst procedural knowledge and experience is vital, John Power (Legal & General) expressed his opinion that senior HR leaders

could come from other business management roles, enabling a more well-rounded view of business challenges (a topic addressed at

a future The HR World Debate in July 2015). Many of the most successful HR professionals are strong managers in other disciplines,

and Martin Spencer (Gocompare.com) added that you don’t have to come through HR to be a great HR manager. In addition, Neil Ellett

(Xerox) predicted that line managers will become more self supporting and that the trend of outsourcing procedures will intensify. Some

guests went as far as to claim that HR is in dire need of a rebrand, so how should HR respond?

41 The 2020 workforce –building a strategic workforce for the future – Success Factors and Oxford Economics (Webinar), 2014 http://www.successfactors.com/en_us/lp/oxford-economics-workforce-hub-pr.html#.VP1nAsmeYcs

42 The Future of work: A journey to 2022 – PwC, 2014 http://www.pwc.co.uk/human-resource-services/publications/the-future-of-work-a-journey-to-2022.jhtml

43 “Will HR be replaced by robots and software?” – Bloomberg video on Yahoo finance – Burton Goldfield, 2014 http://www.bloomberg.com/video/robots-software-will-hr-be-replaced-1NeDDvSOTPazEs7QK2yHVQ.html

21

Page 22: HR in 2020; a new employment landscape

22

44 How collaboration with HR can drive growth: Partnering for performance – EY, 2015 http://www.ey.com/GL/en/Issues/Managing-finance/EY-CFO-program-high-performing-partnering-for-performance-CFO-and-CHROs

45 The Future of work: A journey to 2022 – PwC, 2014 http://www.pwc.co.uk/human-resource-services/publications/the-future-of-work-a-journey-to-2022.jhtml

46 The problem is HR, not HR technology – ZDNet – Brian Sommer, 2014 http://www.zdnet.com/article/the-problem-is-hr-not-hr-technology/

47 HR Technology Trends In The Workplace In 2015 – Forbes – Karen Higginbottom, 2015 http://www.forbes.com/sites/karenhigginbottom/2015/01/06/hr-technology-trends-in-the-workplace-in-2015/

BETTER TOGETHER; HR NEEDS TO COLLABORATEA lot of HR departments work in their own silos, so the first

transformational challenge is to learn to effectively collaborate.

The Debate response was that the three main departments

HR needs to embrace are Marketing, Finance and IT, resulting

in more Board-level involvement. The guests felt that the

employee experience should be as important as the customer

experience. To achieve this, HR must collaborate with

Marketing; the communication experts that can help change

the business. Many guests agreed that HR and Marketing have

a shared purpose, and should therefore align their initiatives for

greater effect. A Debate guest shared an example of this kind

of co-operation from a Financial Services firm; their HR function

influenced Marketing to make reward a key message in external

communication campaigns, aligning with their HR-led internal

focus on rewarding employee behaviour.

With Finance, interaction is required because scarcity of

funding and a shortage of human capital are two of the key

obstacles when companies around the world seek to grow.

The transformation of both departments’ operating models

has already begun through the establishment of shared

service centres and centres of excellence44, but collaboration

needs to continue as they are both important human capital

decision makers. The Debate began to align with the recent

PricewaterhouseCoopers (PwC) hypothesis that by 2018, HR

and Finance could even be working as a combined function45.

UPSKILLING FOR THE FUTUREDiscussion around collaboration with IT brought to light another

significant challenge; the need for HR to upskill. There is an

emerging view that the discipline is becoming increasingly

outdated and as a result, HR decision makers often stick to

purchasing ‘get out of jail technology and analytics’46, as

highlighted in David Beard’s case study. These are usually

based around transactional activities such as payroll and are

only adopted for compliance reasons.

The Debate guests agreed that before HR embraces disruptive

technologies and capitalises on big data and analytics, it needs

new employees who understand how best to utilise them.

Brian Sommer, former Senior Director at Andersen Consulting

(now Accenture), recently said that “giving powerful analytic

tools to many HR folks today (who lack awareness or skills in

these technologies and disciplines), is like giving a chainsaw

to a 4-year old”46. If there is a significant upskill in technology,

then we could see HR utilising big data to help businesses

plan and identify opportunities, helping to address the

disengagement problem (through gamification and interactive

tools) and revolutionising talent management. With workplaces

varying both in demographics and technological proficiency,

the challenge then becomes to conduct an integration process

that doesn’t create resistance or conflict, and that doesn’t

empower some and isolate others47. Attendees agreed that a

balance needs to be struck between adopting quickly enough

to satisfy ‘tech savvy’ employee demand, and dedicating time

and resources to ensure that everyone is on board and benefits.

A RE-BALANCING OF COMPETENCIESIt isn’t just concerning technology, however, that an HR upskill

is required. The guests cited quantitative thinking, integration

skills, proactive learning and general business savvy as common

departmental shortages.

GIVING POWERFUL ANALYTIC TOOLS TO MANY HR FOLKS TODAY IS LIKE GIVING A CHAINSAW TO A FOUR YEAR OLD“

Page 23: HR in 2020; a new employment landscape

48 The problem is HR, not HR technology – ZDNet – Brian Sommer, 2014 http://www.zdnet.com/article/the-problem-is-hr-not-hr-technology/

49 “Is HR Failing To Capitalize On Big Data?” – Forbes – Karen Higginbottom, 2014 http://www.forbes.com/sites/karenhigginbottom/2014/10/09/is-hr-failing-to-capitalize-on-big-data/

50 The 2020 workforce – building a strategic workforce for the future – Success Factors and Oxford Economics (webinar), 2014 http://www.successfactors.com/en_us/lp/oxford-economics-workforce-hub-pr.html#.VP1nAsmeYcs

51 On the cusp of change; the future of HR – HayGroup, 2014 http://www.haygroup.com/uk/downloads/details.aspx?id=43441

52 The Future of work: A journey to 2022 – PwC, 2014 http://www.pwc.co.uk/human-resource-services/publications/the-future-of-work-a-journey-to-2022.jhtml

44 How collaboration with HR can drive growth: Partnering for performance – EY, 2015 http://www.ey.com/GL/en/Issues/Managing-finance/EY-CFO-program-high-performing-partnering-for-performance-CFO-and-CHROs

45 The Future of work: A journey to 2022 – PwC, 2014 http://www.pwc.co.uk/human-resource-services/publications/the-future-of-work-a-journey-to-2022.jhtml

46 The problem is HR, not HR technology – ZDNet – Brian Sommer, 2014 http://www.zdnet.com/article/the-problem-is-hr-not-hr-technology/

47 HR Technology Trends In The Workplace In 2015 – Forbes – Karen Higginbottom, 2015 http://www.forbes.com/sites/karenhigginbottom/2015/01/06/hr-technology-trends-in-the-workplace-in-2015/

23

THE FUTURE OF HRThe Debate guests agreed that the key roles for HR going

forward should be talent management and people strategy. HR

needs to understand technology and big data and put them

to work, transforming into a highly analytical and anticipatory

function. Becoming a more strategic arm of the business will give

HR a ‘seat at the table’ and the ear of the Board. Anticipatory

HR departments are already 43% more likely to be involved

in the long-term business planning process. Businesses that

involve HR at this level are also over six times more likely to

have exhibited strong financial performance, versus those

where the involvement of HR in the planning process is late

or non-existent49. HR has the opportunity to revolutionise talent

management, using data, analytics and technology to source,

hire, engage, retain and monitor talent. Only 46% of executives

globally feel capable of extracting meaningful insights from

available data, with 52% of these simply using workforce

issues to drive strategy. HR can adopt a proactive mindset, not

simply considering where you can find an accountant now, but

where you could source accountants in potential expansion

destinations in the future50. Successful examples already in

operation include Boeing’s using of web-based workforce

planning tools to continually evaluate long and short-term skills

requirements, and the National Grid, who use business growth

and ageing workforce statistics to identify gaps over a 3-5 year

period51. A report by PwC claims that with sufficient collaboration

and strategic focus, we could see HR leaders evolve into a Chief

People Officer (CPO) role, a powerful and influential component

of business leadership52.

If HR remains transactional then it will continue to be replaced

by technology and outsourced; therefore, HR needs to think

outside the box. Neil Ellett (Xerox) questioned that when

it comes to talent management, instead of always hiring

specific skill sets for specific roles, why not hire the most

talented people available and fit them in? Regarding existing

employees, Chris Buckingham (Resource Management)

suggested that HR could ask their new influx of talent for input

on their desired methods and platforms for communication,

instead of dictating a set procedure. Helen Norris (Nationwide)

shared a communicative innovation formulated by Nationwide

employees; the ‘unconference’. This involves employees

congregating to showcase activities and projects in an informal

and flat-structured format. It is clear that HR departments are

beginning to react, but with research finding that only 24% of

executives believe HR is thinking long-term and anticipating

multiple versions of the future, it is also clear that for many, the

alarm bells are not ringing loudly enough.

UPSKILLING IN TIME FOR 2020

The below diagram details how upskilling could benefit a HR

department and inevitably, a business.

An influx of these capabilities will equip HR to greet tomorrow’s

challenges with open arms, allowing HR to grow in relevance

for the future.

Integration Existing integration skills will be taxed by the influx of non-transactional innovations, which need to be adopted at a rate which attempts to satisfy demand, yet keeps everyone up to date.

Quantitative skills Statistical experts are required to exploit

big data and utilise modern HR technologies and analytical tools. Data derived from workforce analytics, ROI

and employee contribution needs to be mined for key information, interpreted

and then put to use.

Curious/continuous learnersIt has become a competitive necessity to keep up to date with the latest HR trends and innovations. Businesses who fail to take a proactive approach will likely be left playing catch up, making these type of individuals a valuable asset.

Business savvyHR teams now require people with

current operational knowledge, enabling anticipation of future business plans and

requirements. This allows HR to align their activities with the overall strategy of

the business.

48

Page 24: HR in 2020; a new employment landscape

0424

Page 25: HR in 2020; a new employment landscape

0425

After an insightful debate, I reflected on the concept of change; one of the key themes throughout

the evening. The rate at which we are experiencing change is incredible, demonstrated by recent

findings that most things students learn at university are already outdated by the time they

graduate. Technology has been a key driver of change, and it will continue to influence both work

and leisure for those who embrace the digital world. Whilst virtual communication and remote

collaboration is now a common feature in the workplace, it is still my view that, where possible,

meeting face-to-face is the best method.

That being said, many changes have been exaggerated, most notably regarding Gen Y. In

my opinion, the values held by this generation are not that different from others. Things have

changed, but people haven’t and given the opportunity, I think that they seek the same things I

did; a positive career in a great work environment, clear opportunities for development and

progression and a good earning potential that allows them to shape their world outside of work. I

have always enjoyed working with this demographic, often finding them easier to work with than

older generations who can be reluctant to change. We have created the world that Gen Y exists in

and it was our generation of managers that have decreased the value of many of today’s job roles.

Leadership needs to respond, and the effort exerted in providing a better offering for employees

is likely to be repaid in loyalty, regardless of the demographic.

Finally, I believe that it is HR’s time to shine. HR is in danger of becoming a general function, but

its fate is in its own hands. In order to respond to the changing employment landscape HR needs

to collaborate and upskill, embracing new technologies and disruptive innovations. Strategic

analysis, proactive staffing and employee engagement policies, all viewed in both the short and

long-term, are all ways in which HR can and must evolve to be ready for 2020 and beyond.

THINGS HAVE CHANGED BUT PEOPLE HAVEN’T

CONCLUSIONBY MIKE BEESLEYCHIEF EXECUTIVE OFFICERRESOURCE SOLUTIONS GROUP

Page 26: HR in 2020; a new employment landscape

0404

AGILE WORKINGThis encompasses flexible hours, hot desking and/or home

working. Agile working takes the view that work is an activity

and not a place, with value placed on output above input.

ALWAYS ONThe concept of being constantly connected by technology,

blurring the lines between personal time and work.

AUGMENTED REALITY (AR)Taking an existing picture, digital or print, and blending new

information into it. Using applications, print-based images or

symbols can be scanned by devices to reveal the encoded

content (e.g.: scanning an image with a phone to reveal a

related video).

BABY BOOM GENERATION (BABY BOOMERS) Those born approximately between 1946 and 1964.

BIG DATA Extremely large data sets that may be analysed to reveal

patterns, trends, and associations, especially relating to human

behaviour and interactions.

DISRUPTIVE INNOVATIONS/TECHNOLOGIES New innovations that drive change, often displacing established

technologies or processes.

e-HRM The use of web-based technologies to provide Human Resource

Management services. It can be used by businesses to deliver

appraisals, plan training and development, evaluate labour costs

and examine indicators for turnover and absenteeism.

GAMIFICATION Utilising interactive game mechanics to engage users to achieve

a set purpose (e.g. onboarding). It aims to tap into the user’s

desires and needs, which often revolve around the ideas of

exploration and achievement.

GENERATION (GEN) X Those born approximately between 1960 and 1970.

GENERATION (GEN) Y/MILLENNIALS Those born approximately between 1975 and 1995.

GEO-FENCING A geo-fence is a geographical virtual barrier, defined by an

administrator. A text message or email alert is sent to the

devices of everyone who enters it, enabling it to be utilised as a

marketing tool.

ONBOARDING The process through which new employees acquire the

necessary skills, knowledge and behaviours to become effective

organisational members.

PRINCIPLE AGENT PROBLEM (AGENCY THEORY) The challenge of motivating one party (the agent) to act on

behalf of another (the principal), is known as the principal-

agent problem, or agency theory for short.

SOCIAL/PSYCHOLOGICAL CONTRACTThe unwritten set of expectations of the employment

relationship, as distinct from the formal employment contract.

Taken together, the psychological and employment contracts

define the employer-employee relationship.

THE CLOUD The concept of storing and accessing data and programs over

the Internet, instead of on your computer’s hard drive.

UPSKILLTo teach or learn additional skills.

GLOSSARY

26

Page 27: HR in 2020; a new employment landscape

DEBATE LEAD

HELEN NORRIS, HEAD OF HR, GROUP OPERATIONS, NATIONWIDE BUILDING SOCIETY

Helen moved to Nationwide in 2012 from her position as Global Head of HR at HSBC. Her dedication to driving major change programmes

for business transformation has allowed Helen to develop a reputation for delivering results in growth, turnaround and constrained

environments within the international blue-chip Financial Services and Telecommunications sectors. A strategic and commercial board

level HR professional, Helen has extensive experience of developing and retaining talent and building capability frameworks. She has also

managed direct and virtual teams within Europe, Asia, the Middle East, North America and Latin America.

DEBATE CHAIR

MIKE BEESLEY, CHIEF EXECUTIVE OFFICER, RESOURCE SOLUTIONS GROUP

With more than three decades in the recruitment industry, Mike is Chief Executive of international recruitment organisation Resource

Solutions Group (RSG). With a strong belief in the power of relationships and business insight, he considers one of his greatest

achievements to be still working alongside many of his clients for more than a decade, successfully helping them meet their goals. Mike’s

main aim in hosting a series of RSG thought-leadership debates is to uncover examples of best practice and innovative approaches to a

number of topical issues and further the knowledge of how RSG can assist its clients in achieving their business objectives.

DEBATE GUESTS

CAROLINE BEER, BUSINESS MANAGER, THE HR WORLD

Caroline joined RSG to establish and grow The HR World - an exclusive community providing senior HR professionals with the opportunity

to participate in thought leadership forums, network and share experiences with an extended peer group. With over 20 years of global

experience in the resourcing industry in the UK, Europe, Middle East and Africa, Caroline has worked in executive search, attraction

strategy, RPO, outplacement, diversity and as a resourcing consultant. Her cross-sector executive search expertise has covered corporate

functions such as HR, IT, Marketing, Sales and Finance; clients have included Sainsbury’s, Accenture, L’Oreal and GE.

GUEST PROFILES

27

Page 28: HR in 2020; a new employment landscape

SAM BLACKIE, PEOPLE AND CORPORATE AFFAIRS DIRECTOR, ROYAL LONDON GROUP

Sam joined Royal London Group in January 2012 as the Group People and Corporate Affairs Director. Previously, Sam held a number

of roles at Lloyds Banking Group where she developed wide ranging experience in a number of senior HR and Communications roles,

including in the IT division, Life & Pensions, Asset Finance and General Insurance Businesses. Sam has a wealth of experience in HR and

communications management. Her experience includes working with AXA Sun Life, Arcadia Group, WH Smith and ASDA.

CHRIS BUCKINGHAM, HEAD OF PRACTICE AND IMPLEMENTATION, RESOURCE MANAGEMENT

With 13 years in the recruitment industry, Chris has held a number of senior positions within RSG and Resource Management, RSG’s RPO

and Managed Service operation. He is MCIPD and an experienced Prince2 Resourcing Programme Manager specialising in the design

and implementation of bespoke RPO and talent acquisition solutions across a variety of industry sectors including Financial Services,

Communications and Pharma. In his current role, Chris manages the portfolio of RPO implementation projects and is responsible for

sharing best practice across Resource Management.

STEVE DEVEREUX, MARKETING ASSISTANT, RESOURCE SOLUTIONS GROUP

Steve graduated from the University of the West of England where he read Business Studies with Marketing. He recently joined RSG

as part of the marketing team and also heads up all sports sponsorship related activities with Bristol Sport. Whilst studying, Steve was

employed as a Brand Ambassador for Gatorade (Pepsi Co.) and held a Student Union role as President of the University’s Basketball

Society. Steve was taking notes at the event to aid the construction of this white paper.

FRANCES EARL, GLOBAL HR DIRECTOR FOR PRODUCTS CLIENT PORTFOLIO, ACCENTURE

Frances has held many senior HR Director roles within Accenture, both at a local (UKI) and global level. She is currently HR Director for a

$7 billion business supporting over 50,000 personnel. Her roles have covered all aspects of HR including talent strategy, HR operations,

HR transformation, reward, talent supply chain/resourcing and recruitment. Prior to Accenture, she held a number of roles with leading

headhunting firms.

NEIL ELLETT, CLIENT MANAGING DIRECTOR, XEROX

Neil is a senior executive in BPO, technology and professional business services organisations. He has previously run large and small

organisations, been a consulting partner focusing on strategic change and outsourcing, and started life as a helicopter pilot. He has

worked in most sectors (public and private) and specialities include: Technology (IT/Software), Pharmaceutical, Financial Services, Central

Government, Aviation and Defence/Security.

ALISON FORWARD, HEAD OF HR CORPORATE STRUCTURING, HSBC

Alison is currently leading the people strategy and implementation of the Bank Reform Act (2013) for HSBC. She has held roles as Head

of HR for Global Insurance and Head of HR for the Global Retail Bank where she lead the global initiative to fundamentally change global

incentive schemes in the retail bank. She has held senior roles in National Air Traffic Services, Environment Agency, AXA and Prudential,

concentrating on business and strategic operational and cultural change programmes. Alison is experienced in global disposals, joint

ventures, transformations and re-structuring businesses in key global markets.

040428

Page 29: HR in 2020; a new employment landscape

DEBBIE MCGLASHAN, DIVISIONAL HR DIRECTOR, TOWERGATE INSURANCE

A generalist HR Director with experience in Retail, Automotive and Media industries amongst others. Debbie counts organisation

development, employment relations (including union negotiation), acquisition & divestment, colleague engagement and internal

communication strategies amongst her specialities. Her previous projects include establishing an own brand offshore operation and the

integration of acquired businesses.

ADAM MEADOWS, GROUP SOLUTIONS DIRECTOR, RESOURCE SOLUTIONS GROUP

Adam has been with RSG for 16 years following a short career in the Software industry. After training as a permanent and contract

recruitment consultant, in 2003 he specialised in delivering value added solutions to the RSG client base. Since that time, he has

developed a series of innovative products delivered through a range of RSG businesses and is currently the Group Solutions Director.

He believes that there is an ever-increasing desire within UK companies for recruitment businesses to deliver more bespoke and creative

resourcing solutions, meeting their needs for flexibility, agility, quality and value.

JOHN POWER, STRATEGY, CHANGE & GOVERNANCE DIRECTOR, RETAIL SAVINGS, LEGAL & GENERAL

John is a Financial Services professional with over 25 years’ experience working in strategy development, business planning, change

management consultancy, shared service organisational structures and project management. John specialises in strategic planning,

distribution strategies, service delivery, leadership coaching & development and change. John has worked at Legal & General since 2013

and in his current role is responsible for driving the strategic development of the Retail Savings businesses L&G, Cofunds and Suffolk Life

brands, oversight of related investment in change and the governance frameworks that support the business area. Previously, John has

worked in a wide variety of roles at MetLife, HBOS/Clerical Medical and AXA Sun Life, as well as his own consulting business.

MARTIN SPENCER, HR & OD DIRECTOR, GOCOMPARE.COM

After spending 3 years doing secret doctoral research for the Admiralty (which he says is much less interesting than it sounds), Martin

spent his early career working for British Gas and in HR consulting before joining the Zurich Group in the UK, where he held several senior

roles including Capability Development Director for the UK (he calls this his best ever job title). He was latterly HR Director of Openwork,

the UK’s second largest network of financial advisers, and he is now HR & OD Director at Gocompare.com, one of the UK’s leading

price comparison sites. He tries to utilise his core expertise as a psychologist in organisational change, assessment & development,

performance management and staff engagement.

29

Page 30: HR in 2020; a new employment landscape

0404

THE HR WORLDRESOURCE MANAGEMENT

E [email protected]

W www.thehrworld.co.uk

T 07772 136 284

37 Lombard Street

Plough Court

London

EC3V 9BQ

E [email protected]

W www.resource-management.co.uk

T 0207 337 9901

37 Lombard Street

Plough Court

London

EC3V 9BQ

0430

CONTACTEXPERT RPO & MSP SOLUTIONS

RSG’s HR Networking ForumProposal #5 - The HR World - Logotype

Page 31: HR in 2020; a new employment landscape
Page 32: HR in 2020; a new employment landscape

A M S T E R D A M • B R I S T O L • C A R D I F F • E D I N B U R G H • L O N D O N • M A N C H E S T E R • M U N I C H

W W W . R E S O U R C E - M A N A G E M E N T . C O . U K

EXPERT RPO & MSP SOLUTIONS