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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.
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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
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
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
AS A COMMUNITY OF HR PROFESSIONALS, THE FIRST QUESTION THAT COMES TO MIND IS ‘HOW SHOULD WE RESPOND TO TECHNOLOGY?’
04
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
06
IF PEOPLE CAN WORK AT ANY TIME AND IN ANY LOCATION, WHERE DOES WORK STOP AND PERSONAL TIME BEGIN?
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
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.
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
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
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
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 “
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?“
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
“
“
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.
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
“
“
“
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.
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?“
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’“
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
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
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“
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
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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
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
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
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
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
0404
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T 0207 337 9901
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EC3V 9BQ
0430
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