2016 HR Trends

2016 HR TrendsHelping You Meet the Challenges of the New Year

March 2016

SAP Point of View

Trends Shaping the HR Function and Financial Services Industry

• Digital economy is transforming how people live and work– AirBnB, Uber, GM investing $500M in Lyft

• Simplifying “HR Complexity” is critical to address the pace of change– flexibility and scalability are table stakes– Collaboration is driving all areas within HR

• Career and Performance Management is undergoing significant transformation

• Social and mobile technology are changing employee engagement and organizational productivity

• Evolving workforce demographics driving need for better planning and analytics

2 | SAP proprietary and confidential

What is the Digital Economy

Five Technology Trends have Converged into the “Digital Economy”:• Hyper-Connectivity• Super Computing• Cloud Computing• A smarter world based on outcomes• Cyber Security

Impact on HR?Employees EXPECT a new type of experience – one that is frictionless, where information is accessible and seamless and where technology is invisible! One that makes their lives and careers better.

SAP proprietary and confidential | 3

And Requires a Reimagining of HR Strategies with a Digital Approach

The digital economy is significantly reshaping how HR supports the organizational strategies.

Intelligent

Flexible

Cloud

Useful

McKinsey defines the digital experience as something that should be seen less as a thing and more a way of doing things with three attributes:• Creating value in the business• Creating value in the processes to support the vision• Building the foundational capabilities for the organization

Teamwork

Learning

CollaboratingManagement

Working Remote Performance Management

“Being digital requires being open to reexamining your entire way of doing business and understanding where the new frontiers of value are”.

McKinsey Digital, July 2015


What Does Digital Mean to HR

The Evolution of Management Thinking

Operational Efficiency Profit, Growth, Financial Engineering

Customer Service, Employees are

Leaders

Mission, Purpose, Sustainability

Industrial Age People as Workers

The Corporation is King

Andrew Carnegie Henry Ford

Jack Welch Peter Drucker

The Executives are King

Management by Objectives

The People are King(s)

Howard Schulz Steve Jobs

Servant Leadership Work Together

The Teams and Team Leaders are Kings

Netflix, Google, Facebook, Amazon

Empower the Team

The Industrial Corporation

Hierarchical Leadership

Collaborative Management

Network of Teams

Purpose, M

eaning, and Em

powerm

ent

<1950s 2020Today1990s1960s-80s

Bersin by Deloitte, July 2015


According to Deloitte’s new research, High Impact Talent Management (2015), the data shows that “building an inclusive culture is now the #1 predictive strategy for global financial performance”. The new digital world changes how we live and work. Through better inclusion and social collaboration the next phase of management thinking has evolved – The Network of Teams. To respond to this trend, HR needs to significantly rethink how they are meeting the needs of the new workforce.

By 2020 there will be 200 billion connected devices on the Internet of Things.Source: Intel, A Guide to the Internet of Things Infographic

“Enterprise software used to be about making existing work more efficient. Now, the opportunity for software is to transform the work itself.”Source: Aaron Levie, @levie

74% of companies believe business complexity hurts their ability to meet goals, but only 17% believe current simplification efforts are very effective.Source: Knowledge@Wharton, Business Simplification 2015: The Unmet Strategic Imperative

Useful – We Need to Simplify HR

• Integrated HCM Suite• Embedded Content• Mobile • Total Workforce Management

The Impact of the Network of Team on Customer Satisfaction

Simplified ProcessesRealize HR efficiency and ensure compliance


To support the Network of Teams and enable the “connection of brains”, organizations must have Integrated Talent Management systems and social collaboration tools to deliver on the business strategy in an intuitive, accessible and simple way.

Intelligent Services

Useful – Unmatched Solution Breadth and DepthSupporting your total workforce, partners and third-party administrators

Core HRPayroll

Time & Attendance

Global Benefits

Shared Services

Employee Recordkeeping

Organizational Management

Talent ManagementRecruiting

Onboarding

Learning

Performance & Goals

Compensation

Succession & Development

Our Partners

Time & Attendance

Payroll

Benefits

Recruiting & Onboarding

Our Partners


Everything in HR is connected. To support your total workforce, and support the network of teams, organizations need to simplify their infrastructure and focus on delivering the HR programs and services to drive collaboration and support the digital economy.

Useful – Built-in Decision SupportWe’ve learned from the best, and made it a practice

• Pre-delivered Talent Questions• Industry-specific Job Descriptions• Job Families• Skills Catalog• Competencies Catalog• Learning Reports and Dashboards• Recruiting Best-practice Templates• International and Country-specific Reports• Compensation Metrics and Reports• Workforce Analytics Metrics• Core HR Workflows• Assessment Coaching Assistant• Assessment Writing Assistant• Goals Catalog• Comprehensive Benchmarking• Live Compensation Dashboards

19,500+Unique HR content elements


Customer-experienceOmni channel

Assets and the internet of

things

Supplier collaborationbusiness networks

Digital Core

Workforce Engagement

Flexible – Total Workforce Management Integrates the Customer/Employee Experience

How do you make the employee experience flexible without significant customization? Through advanced technology you can now have a fully configurable system with pre-built connections to all your employee experience system and have the ability to build new applications which are unique to your organization.

SAP HANA Cloud Platform

Core Business and Industry Solutions


Flexibility – The “Appification” of Everything – Organizations must be Flexible and Scalable

The Financial Services sector is undergoing significant transformation. In order to meet the evolving needs of your organization you must be able to respond quickly. With the SAP SuccessFactors suite of products you don’t need to disrupt your existing core processes to design a unique solution or pilot a new program – we can help you to build the apps that meet your unique business needs.

Enterprisejungle.com


Candidates today are not looking for a career…they are looking for an experience.

Intelligence Careers have changed and so have people


The Evolution of the Talent Acquisition Process

Redefine Talent AcquisitionAs the labor market continues to shrink and the shortage of skilled labor shifts their focus to other industries, the Financial Services sector must significantly refine how they attract the necessary skills for the future. It is no longer a post and pray environment. New intelligence is required to meet the evolving business needs. To compete in the future organization need to move from the traditional six-phased approach to a Social Collaboration approach.

Job Requisition Job Posting Applications

Interviews Job Offer On Boarding

Smart Job/ Publishing Needs

SEO

Social Souring

Referral Marketing

Multiple Branded Job Sites

Talent/ Campaign Landing Pages

Social Matcher

Job Feeds

Career Site

Mobile Career Site

Job Posting

Job Application

Competency Based

Interviewing

Job Offer

Job Requisition

Candidate Talent Profile

On-boarding

Measure

Engage

Talent Com

munity

Attract Select


Traditional Six-phased Approach

Social Collaboration Approach to Talent Acquisition

Intelligence This heartbeat proves…

Engaged People = Extraordinary Results71% of respondents rank employee engagement as imperative to achieving business success.

Harvard Business Review71%


Intelligence - The New Workforce The digital economy has changed how we work

The Network of Teams and digital transformation are clearly evidenced in the top drivers of sustainable employee engagement. The need for goal alignment, flexibility, mobility and collaboration are the key drivers.

Top Drivers of Sustainable Employee Engagement


Leadership

• Effective at growing the business

• Sincere interest in employees well being

• Behavior consistent with the organization’s core values

• Trust and confidence in job being done

Goal and Objectives

• Good understanding of organization business goals and steps needed to reach the goals

• Understanding of how job contributes to the organization achieving its business goals

Workload Work/ Life Balance

• Healthy balance between work and personal life

• Work arrangements are flexible

• Enough employees in work group to get job done right

• Amount of work required is reasonable

Image

• Organization highly regarded by general public

• Organization conducts its business with honesty and integrity

Empowerment

• Management involve employees in decisions that affect them

• Organization seeks opinions/suggestions of employees

• Organization acts on employees suggestions

Source: What are the top drivers of employee attraction, retention and sustainable engagement. Towers Watson, December 2014

Intelligence - Engaged WorkforceLearning and Development

To achieve the ultimate goal of attracting, retaining and engaging your employees, one of the most important aspects is having the ability for them to grow and learn so they can enhance their personal and professional career goals. Yet, learning has changed significantly and will continue to change over the next several year. In the Network of Teams we see collaboration taking unprecedented focus in how people learn, both through communities, MOOCs and concept oriented on the job training.

Social Learning • Mentoring/development• QuickGuides• Concept oriented OJT• Near real-time knowledge objects from SMEs• Collaborative groups and communities

Mobile Learning

Role Based Access

Learning Management System • Instructor Led Training (ILT) • eLearning • Task oriented OJT• MOOCs• Exams/assessments• Reporting & Dashboards


Intelligence Trends in Performance Management

Yet, all we are hearing is how everyone is “getting ride of performance management”. So how can goal alignment, which is a key driver of employee engagement be managed in the future?

NOT Eliminating Performance Management


Trends in Performance Management

Simplify Goal Mgmt Process

• Move from annual goals to either project based or quarterly goals

• Limit the number of goals to no more than 3-4 with short and realistic time frames

Eliminate Forced Ranking

• Eliminate the forced, distribution ranking process

• No Bell Curve

Accurate Employee Rating

• Rate employees according to their performance against the job with no limit to a specific rating (i.e., no more “you were exceptional but I can only give one person that rating”)

Multiple Inputs

Consider multiple ratings based on quarterly goals, development activities, etc.• Reduces an

annual one-time impact and empowers employees with a multi-dimensional view of their contribution to the organization

Frequent Feedback

Moving from an annual review to frequent feedback sessions with a focus on:• Performance

against goals• Development for

the future• Focus is on

regularly supporting and positioning employees to perform better for the future (versus just how they did in the past)

21

3


No other area of HR is undergoing greater transformation than in the area of Performance Management. The following details the key evolving trends.

78% of employees say it is very important to work for a digitally enabled company or a digital leader.

Source: MIT Sloan Management Review, Is Your Business Ready for a Digital Future?

78%

How Does it all Come Together - AnalyticsChanging workforce demographics demands planning and analytics

Actionable Insight: Predict, plan, take action, and measure • Being digital is about using data to make better and faster decision and putting the information in the hands

of the decision maker.• Strategically forecast and grow the required talent• Scale for new, emerging competencies in the future• Make decisions based on intelligence that are personalized and relevant to the employee• Evaluate the effectiveness of the HR programs and adjust as necessary


The Analytics Journey

Predictive Analytics

Hypothesis Testing: structural equation modelling

Analytics

Statistical analysis: •correlations• test of significance

•analysis of variance

• factor analysis

Bench-marking

External & internal comparisons

Advanced Metrics

Aggregation & weighting to generate index measures

Metrics

Aggregation as ratios & percentages

Reporting

Analysis Dimensions:•segmentation• trends

Data

Definitions:• inclusions•exclusions



Summary and Next Steps

Key Trends:• Digital Economy is rapidly changing the way we work• We must simplify how employees work and enable

access to what employees need to be productive• The talent shortage and the impact of the digital world is

driving new ways of attracting, retaining and engaging our talent

• The focus on social, mobile technology is reinventing how we work and learn

• We must have the tools to plan and analyze our workforce and HR programs to maintain competitiveness

How Can We Help:• Engage with our team of HR Transformation Advisors to

assess your current HR Strategy and infrastructure to identify areas for opportunity

• Contact your Account Executive to see first hand how SAP SuccessFactors can help you meet the challenges of tomorrow.

Notes


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Leadership & Management

2016 HR Trends