The Future of HR - cdn.ymaws.com · Business Role of HR 29 Leverage Strategic Workforce Planning A key business role for HR is to be a contributing partner in the organization’s

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The Future of HR: Promoting Business Success

in a

Changing Global Workplace

Daniel Griffiths, SHRM-CP HR Academy, Pittsburgh HR Association

March 17, 2017

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2 HR Value

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3 HR Value

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4 HR Value

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5 Today’s Agenda

1) The Changing Global Workplace 2) The Role of HR in Promoting Business Success 3) Three Key HR Tools for Advancing Business Goals

Ø Measurement and Analytics Ø Leadership Development Ø Workplace Flexibility

4) SHRM-SHRM Foundation Support Resources

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6 How is the Global Workplace Changing?

•  Demographic Shifts

•  Growing Workforce Diversity

•  Increased Employee Mobility

•  Global War for Talent

•  Better Educated and skilled Workers

•  Advances in Technology

•  Flexible Work Arrangements

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7 Changing Global Workplace

Growing Workforce Diversity

Workforces throughout the world have become more diverse as cultural and ethnic populations have moved in greater numbers within countries and across national borders Also, in recent years large numbers of women have been entering the workforce, especially in the developing world

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8 Changing Global Workplace Increased Employee Mobility

Global talent is increasingly flowing to the U.S. and other developed countries with low birth rates, aging workforces, and skills gaps in science, technology, engineering, and math At the same time, global businesses are streaming to emerging markets with growing populations and attractive investment opportunities

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Global War for Talent Global talent mobility means companies will be competing ever more fiercely for top talent in a global pool and against virtually connected work teams PricewaterhouseCoopers Global CEO Survey confirmed the difficulty companies are facing in finding the talent they need to succeed One in four CEOs said they were unable to pursue a market opportunity or have had to cancel or delay a strategic initiative because of talent challenges

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Better Educated/Skilled Workers

The world as a whole is becoming more educated as countries invest to increase their competitiveness in a global knowledge economy If current trends continue, China and India alone will account for 40 percent of young people with a post-secondary education by 2020 among all G20 and OECD countries

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11 Changing Global Workplace Advances in Technology

Internet and communications advances are moving us towards a world in which companies will be able to deliver customized products and services to hand-held devices anywhere Rapidly evolving technology has enabled previously isolated countries to participate in global business and allowed work to be more easily distributed and performed far from its original source

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Flexible Work Arrangements

Flexible work arrangements are among the most valued benefits by workers today, so employers are under increasing pressure to allow employees to work when and where they prefer A Reuters global survey of employees who could connect virtually to their workplaces found that employees in the Middle East and Africa, Latin America, and Asia-Pacific were more likely than those in North America and Europe to telecommute frequently

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1.  Demographic shifts 2.  Loss of middle-skilled jobs 3.  Skills gap: Disconnect between educational

standards and organizational demand 4.  Eroding physical barriers and increased

globalization 5.  New models of work: Crowdsourcing

Changing Global Workplace

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14 Expected Changes: Demographic Shifts

•  Your employees and contractors will be more global

•  Older workers will be working longer and will make up a larger percentage of the U.S. workforce, creating a multigenerational workplace

•  The U.S. workforce will include more highly educated women, military veterans and people with disabilities

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15 Expected Changes: Demographic Shifts

•  Expectations will increase for customized benefits, mobility of benefits and flexible work options

•  The Millennial generation will have different work motivations and will expect greater work/life balance

•  Governments will be pressured to revise migration laws to facilitate the movement of talent around the globe

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16 How HR Can Prepare

•  Offer more options for flexible work programs

•  Engage in proactive workforce planning •  Educate new employees and provide a

realistic job preview •  Ensure your employer branding as a ‘great

place to work’ does not provide an unrealistic picture of the workplace

•  Offer accommodations for people with disabilities and older workers

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•  Learn how to recruit globally and become familiar with immigration rules

•  When recruiting in a new country or region, take time to learn about the unique needs of your workforce.

•  Become familiar with differing educational standards between countries

•  Reassess your organization’s globalization and expatriation policies.

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•  Create a sense of urgency for managers to address job enrichment

•  Consider enhanced investments in employee education

•  Offer opportunities for cross-training and lateral moves to keep low-wage workers learning and engaged

•  Encourage managers to promote from within the organization to provide new opportunities to qualified workers

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•  Educate your employees about where your

organization is headed

•  Identify ways to support employees working to obtain needed degrees

•  Partner with technical schools, colleges and universities

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20 Expected Changes: Skills Gap

•  Many high school and college graduates will not be prepared for the workplace

•  Filling STEM (science, technology, engineering and math) positions will continue to be challenging

•  As technology and business continue to change rapidly, new skills shortages will arise

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•  Partner with learning institutions

•  Promote importance of middle-skill and technical jobs

•  Broaden your recruiting pool

•  Offer internship and/or apprentice programs

•  From an ethical perspective, ensure that interns are compensated fairly

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22 Expected Changes: Increased Globalization

•  Telecommuting will increase, and more jobs will be conducted virtually with remote workers

•  More companies will have workers and suppliers located in multiple countries around the globe

•  The talent pool will grow as people in multiple countries become available to work

•  Leaders will encounter greater challenges in managing remote workers, evaluating productivity and fostering feelings of connection to the organization

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•  Learn to effectively manage remote workers •  Provide support and training for working

effectively in global teams •  If operating in multiple countries, adjust your

engagement and retention strategies to fit the local culture and demographics

•  Ensure your organization’s telework policy is administered consistently

•  Learn about diverse individual work and learning styles

•  Monitor changing wage and hour laws and regulations

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•  Stay abreast of the new technologies and ensure employees receive appropriate training for using them

•  Partner with IT and explore using technology •  Learn more about data security •  Explore ways to change the old manager

mindset •  To build greater cultural intelligence,

consider taking a global mindset assessment

•  Provide cultural awareness training for staff

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25 Expected Changes: Crowdsourcing

•  People unable to work a traditional schedule (students, stay-at-home parents, retirees, etc.) will now be able to participate in the job market via crowdsourcing sites and work whenever it is most convenient

•  Organizations may begin breaking down traditional jobs into a set of smaller tasks (task decomposition) that can then be accomplished via crowdsourcing

•  Many start-up businesses will increasingly get work done via crowdsourcing rather than hiring permanent staff.

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•  Learn how crowdsourcing works

•  Identify alternative work arrangements (crowdsourcing, phased retirement, short-term projects, etc.) that might help your organization tap into new pools of talent

•  Before creating a new staff position,

experiment with breaking down the job into a series of tasks that could be outsourced

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27 How Can HR Promote Business Success?

1) Understand and support the business strategy 2)  Leverage strategic workforce planning

3)  Measure organizational effectiveness

4)  Retain, engage, and develop critical talent

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28 Business Role of HR

Understand and Support Business Strategy

To be credible business leaders, HR practitioners must understand their organizations’ business strategy and the environment in which it operates They must align the HR and business plans, develop and communicate the organization’s core values, and establish strategic relationships inside and outside of the organization

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Leverage Strategic Workforce Planning

A key business role for HR is to be a contributing partner in the organization’s strategic planning Especially important is leading the strategic workforce planning process, including developing and presenting long-term forecasts of future human capital needs at the organizational level

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Measure Organizational Effectiveness

HR should develop and utilize customized business metrics to measure the achievement of organizational goals These metrics – such as performance indicators and balanced scorecards -- will help to ensure that organizational policies and practices are based on solid evidence

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Retain, Engage, and Develop Critical Talent

HR can contribute significantly to the bottom line through innovative strategies to retain, engage, and develop critical talent

Since hiring on the outside is expensive and time-consuming, keeping critical talent on board and motivated is key to business success and the ability to compete

To be most effective, the HR talent management plan must be aligned with the organizational business plan

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32 What 3 HR Tools are Key to Success?

1)  Leadership Development

2)  Metrics and Analytics

3)  Workplace Flexibility

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33 Key Tool: Leadership Development

Creative development of potential leaders means much more than traditional classroom education or online learning “Real-life” learning stretches employee capabilities and can significantly decrease employee churn and bolster retention People learn the most form those they trust – bosses, subordinates, peers, and mentors Mentoring and coaching – with clear expectations and defined goals – are crucial to any development strategy

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34 Key Tool: Metrics/Analytics

SHRM Workforce Analytics Model

1) Assess and Plan 2) Link and Align 3)  Identify and Build 4)  Implement and Execute

Metrics gather information in reports – often from an accounting perspective. Analytics use that information to ask relevant questions and feed strategic decisions.

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1) Assess and Plan

In the initial phase, HR must acquire knowledge of the organizational strategy, goals, and plans Then, HR should identify a metrics team, similar to a steering committee, of 3 or more individuals To build credibility, individuals from different departments should be on the metrics team

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2) Link and Align

Begin by answering the question, “What impact does the business strategy have on the workforce?”

When this question is answered, identify workforce drivers that support the business strategy

Example: The business strategy of a retail store is to open 20 stores in a year. The potential drivers include the need to hire additional staff, provide training for store managers, and develop onboarding

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3) Identify and Build

Next, determine which metrics and analytics support the workforce drivers for each HR function Previous example: Analytics to support hiring additional retail staff would include the time required to fill positions, the number of recruiters required, and the recruiting investment needed All of these metrics support the organizational business strategy

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4) Implement and Execute

In this phase, HR needs to specify how often the analytics will be delivered and to whom HR practitioners should use a feedback loop to receive comments from internal constituents to improve the quality of data that is being distributed

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39 Key Tool: Workplace Flexibility

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Workplace Flexibility Delivers Bottom-line Results

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41 Key Findings

Small employers (50-99 employees) were more likely than large employers (1,000 or more employees) to offer all or most employees: •  Traditional flextime, the ability to periodically

change start and stop times (36% vs. 17%)

•  Control over when to take breaks (63% vs. 47%)

•  Time off during the work day to attend to important family or personal needs without loss of pay (51% vs. 33%)

National Study of Employers 2016

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42 Key Findings

Growth of workplace flexibility has been stable over the past four years. Out of 18 forms of flexibility studied, there were only four changes: •  An increase in employers that offer telework, allowing

employees to work at least some of their paid hours at home on a regular basis (40% in 2016 vs. 33% in 2012)

•  An increase in employers that allow employees to return to work gradually after childbirth or adoption (81% in 2016 vs. 73% in 2012)

•  An increase in organizations that allow employees to receive special consideration after a career break for personal/family responsibilities (28% in 2016 vs. 21% in 2012)

•  A decrease in organizations that allow employees to take time off during the workday to attend to important family or personal needs without loss of pay (81% in 2016 vs. 87% in 2012)


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43 Four Trends in Workplace Flexibility

Trend #1: 12 weeks of leave is becoming the norm, especially for maternity leave, though less so for spouse/partner (paternity) leave; while at same time, longer leaves are less available

Trend #2: While more companies offer pay for maternity leave, fewer companies provide full pay

Trend #3: Telecommuting rates continue to rise

Trend #4: Small organizations are leaders in a number of forms of flexibility


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Tactics for Success in implementing Workflex

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Tactics for Success in implementing Workflex

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46 Business Acumen as a Competency

www.shrm.org/hrcompetencies/documents

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Definition: Business Acumen is defined as the knowledge, skills, abilities and other characteristics (KSAOs) needed to understand the organization’s operations, functions and external environment, and to apply business tools and analyses that inform HR initiatives and operations consistent with the overall strategic direction of the organization.

Business Acumen as a Competency

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Key Concepts: Foundational Knowledge •  Business terms and concepts (ROI)

•  Analyzing and interpreting business documents (e.g., balance sheets, budgets, cash flow statements, profit and loss statements)

•  Elements of a business case

•  Business intelligence techniques and tools (e.g., online analytical processing, advanced analytics, business intelligence portals)

•  Financial analysis and methods for assessing business health

Business Acumen as a Competency

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Keep Relevant

Know your organization Keep your skills sharp Become certified or upgrade Continued education

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For Consideration

Has HR in your organization become a strategic business partner?

What lends to HR becoming more of a

strategic partner? Does spending time on strategic partner

activities help increase effectiveness of HR? Why/Why not?

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What does the future of HR look like in your organization?

What do you wish it would look like?

What do you think?

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Innovation

How can HR be innovative?

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Where to Start?

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Be Flexible to Remain Competitive

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Retention

Employee Engagement &

Satisfaction Recruitment

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©SHRM 2017 ©SHRM 2014

Daniel Griffiths Field Services Director 1800 Duke Street Alexandria, VA 22314 703-535-6364 @SHRMDGriffiths [email protected] www.shrm.org

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The Future of HR - cdn.ymaws.com · Business Role of HR 29 Leverage Strategic Workforce Planning A key business role for HR is to be a contributing partner in the organization’s