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Ten Disruptions in HR Technology for 2015: Ignore At Your Peril
1. 1
HR Technology 2015
Ten Disruptions:
Ignore Them At Your Peril
Josh Bersin
Principal, Deloitte Consulting LLP
December, 2014
2. 2
Who We Are
- Global provider of leading practices, trends, and benchmarking research in
talent management, learning, and strategic HR.
- 60% of the Fortune 100 are Bersin by Deloitte research members, with
more than 19.5 million employees managed by HR teams using Bersin
Research.
Broad Research Practices
• Human Resources
• Leadership Development
• Learning & Development
• Talent Acquisition
• Talent Management
Offerings
- WhatWorks® Membership: Research, Tools, Education, Benchmarking
- IMPACT®: The industry’s premiere conference on the Business of Talent
- Advisory Services & Consulting
Human
Resources
Leadership
Development
Learning &
Development
Talent
Acquisition
Talent
Management
4. 4
Zero to $1 Billion Valuation in 1-2 Years – What can we learn?
Slack, Dropbox, Snapchat
“Free” file sharing and “Free”
collaboration software that is
very easy to use
- Over 200 million users now
(Dropbox)
- 260,000 new users per month
(Slack)
No training required
Free, mobile enabled from day 1
Elegant simple user interface
Both hit over $1 Billion in
valuation in first two years
5. 5
Top Global Talent Priorities
% Rated “Urgent” or “Important”
63%
68%
69%
73%
74%
76%
76%
79%
81%
84%
87%
88%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
The Overwhelmed Employee
Simplify Work
Diversity & Inclusion
Fix Performance Management
Integrate HR Technology
Globalize Talent Mgt.
Talent & HR Analytics
Talent Acquisition
Reskilling HR
Reinvent Learning & Devt.
Retention & Engagement
Gaps in Leadership Pipeline
Deloitte Global Human
Capital Trends
Research, n=3,000,
11/2014
All These Areas
Heavily
Impacted by
HR Technology
6. 6
How the Talent World has Changed
“Our candidates today are not
looking for a career…”
“They’re looking for an
Experience.”
7. 7
Engagement Still Startlingly Low
Worldwide only 13% of employees are
“highly engaged” in their jobs.
63% “disengaged” and 24% “actively
disengaged.”
(Australia and NZ are twice as
“engaged” as the rest of the world!)
with 25% “highly engaged”
China, Middle East, Africa, India are the
lowest at 6-8% fully engaged
8. 8
Only 54% of employees
would recommend company
to a friend
-
Glassdoor, Bersin Analysis, October, 2014
And Even Worse
9. 9
The “Haves” and “Have Nots” In Engagement
Distribution of Glassdoor “Recommend My Company” Averages
Average
3.1
Companies
in Trouble
Companies
Getting By
Companies
Winning the
Talent War
10. 10
Benefits &
Compensation
Hiring
Recruiting
E-Learning
Performance
Talent
Network Based
Applications
New Systems of
Engagement
15 Year Evolution of HR Systems
MARKETGROWTH-ADOPTION
2 0 0 0 2 0 1 5P R O G R E S S I O N O V E R T I M E
Compensation
HRIS
Benefits
Administration
Applicant
Tracking
Recruiting
Sourcing
Learning
Management
Workforce
Management
Succession
Management
Performance
Management
Integrated Talent Mgmt
Analytics
Tools
Social
Recognition
Network
Recruiting
HRMS + Talent +
Workforce Management
Self-Service
Apps
Personality
and Pre-Hire
Culture
Assessment
Predictive
Analytics
Real Time
Engagement
Mobile
Apps for HR
Process
Automation
Integration &
New Talent Apps
Analytics &
“Systems of
Engagement”
11. 14
Growth in HR Technology Markets
People Management Software is One of the Biggest ERP Segments
Market Category Market Size (2014) CAGR 5 Years
Core HRMS $6.2 Billion 7-9%
Recruiting $2.6 Billion 8-10%
Learning Management $2.4 Billion 10-12%
Performance / Compensation $1.4 Billion 8-10%
Workforce Management $1.5 Billion 4-6%
Engagement, Recognition,
Sensing
$1.0 Billion 10-15%
IDC Market Size 2014,
Bersin Estimates
12. 15
Two Major Marketplace Issues
1. Too Many HR Systems
33% of companies have 10+ HR systems
47% will replace to integrate and consolidate vendors
2. Systems Aging Rapidly
HRIS systems 47% are 7+ years old
Time & Attendance 40% are 7+ years old
Performance Mgt 19% are 7+ years old
Learning Management 17% are 7+ Years old
13. 16
Explosion in Mobile Access
1.5 Million Laptop/Desktop Users
1.6 Billion Smartphone Users
5.2 Billion Mobile Phone Users
Mobile now 25% of web traffic
60% of time on internet is
through Mobile devices
14. 18
Mobile Apps Now Generate More
Internet Traffic than PC Apps
Apps
Comscore 2014 Mobile Apps Report
15. 20
Look at Most Popular Mobile Apps
Comscore 2014 Mobile Apps Report
115 Million
46 Million
34 Million
26.5 Million
$10 Billion
Valuation
A Whole New Paradigm for Design
16. 21
Transparency: Standard & Expected
Recognition
Goals
Compensation
HiPos
Leadership
Tinypulse Engagement Survey 2013, 2014 200,000+ Respondents
The “Yelp” of HR
18. 23
The Overwhelmed Employee
The average mobile
phone user checks
their device 150
times a day.
40% of the US
population
believes it is
impossible to
succeed at work
and have a
balanced family
life.
The “average” US
worker works 47
hours and 49%
work 50 hours or
more per week,
with 20% at 60+
hours per week
The “average” US
worker now
spends 25% of
their day reading
or answering
emails
More than 80% of
all companies rate
their business
“highly complex”
or “complex” for
employees.
Fewer than 16% of
companies have a
program to
“simplify work” or
help employees
deal with stress.
Sources: Deloitte Human Capital Trends 2014 and 2015
21. 28
1. Shift from System of Record to
System of Engagement
67% of buyers now select a system based on its
ease of use, far greater than the “feature set”
22. 29
Simplicity Trumps Functionality
Value
Time
Highly Functional
System,
Difficult to Learn
Simpler System,
Easy to Use
“Harmonization of HR processes
before implementation of systems was
one of the biggest drivers of successful
implementations.” Source: Deploying HCM Technologies: Making Change Work,
Katherine Jones, Bersin by Deloitte, 2014.
24. 31
83% of orgs plan
to invest in
mobile in next 12
months
25. 32
Mobile: A System of Engagement
Employees expect mobile access for:
Time and
expense
reporting
Travel
planning
Employee
directory
Message
Collaborate
Knowledge
sharing
Learning
Training
Goals
Performance
Engagement
Recruiting…
Applying
Screening
Source: Global Human Capital Trends
28. 35
What Our Research Discovered
Bersin by Deloitte Talent Analytics Maturity Model®
Level 4: Predictive Analytics
Development of predictive models, scenario planning
Risk analysis and mitigation, integration with strategic planning
4%
Level 3: Advanced Analytics
Segmentation, statistical analysis, development of “people models”;
Analysis of dimensions to understand cause and delivery of actionable solutions
10%
Level 2: Proactive – Advanced Reporting
Operational reporting for benchmarking and decision making
Multi-dimensional analysis and dashboards
30%
Level 1: Reactive – Operational Reporting
Ad-Hoc Operational Reporting
Reactive to business demands, data in isolation and difficult to analyze
56%
29. 36
Analytics Drives Huge ROI
Today, 14% of HR ORGANIZATIONS believe they “regularly use data
to make talent and HR strategy decisions”…
…and these organizations, are…
2X
as likely to
believe they
are excellent
at selecting
the right
candidates
2X
as likely to
believe they
are delivering
a strong
leadership
pipeline
Generating
30%
higher stock
returns than
the S&P 500
over the last
three years
3X
as likely to
believe they
are efficiently
operating HR
31. 38
“People Data Everywhere™”
Retention
Analytics
Models
Internal Data
• Performance
• Mobility
• Compensation
• Goals
• Education
• Work History
External Data
• Location
• Job
• Social Profile
• Compensation
• Connections
• Work History
Flight Risks
Drivers of
Retention
Talent Problems
to Fix
32. 39
4. Science of Leadership &
Assessment Leverages Big Data
Competing Values
Framework
Big Five
Model
Dennison Model
33. 40
Big Data meets Assessment
Big Data
Analytics
Candidate Profile
Education
Background
Assessment Data
Job Experience
Performance
Training
Assignments
Fit
With Job
Fit
With Company
Fit
With Team
34. 41
How Do We Select the “Right” People?
2/3 of hiring done without any significant assessment
Background checking: 79%
Managerial interviews: 64%
Interview training: 47%
Behavioral assessments: 34%
Reference calls: 32%
Skills-based assessments: 25%
% of Organizations Which Regularly Use Following Assessment Practices
Bersin & Associates High-Impact Talent Acquisition
Study, Fall 2012, 158 organizations responded
The most important
criteria of success
is fit, which is
driven by clear
understanding of
role and culture
35. 42
5. Sensing and the Quantified
Employee
Less than 50% of the
companies in
The Engagement Institute
know what to do with
engagement data
Data is slow to collect, too
broad, and not local
Technology changes the
market:
- Fast
- Local
- Open
- Transparent
37. 44
Engagement Surveys Shift to Continuous
Employee Feedback and Sentiment
Traditional Engagement
Surveys
Continuous Feedback and
Sentiment Analysis
Once per year Every month, week or day
Standard questions Widely varied questions
Some but little open feedback Any comment considered
Anonymous Anonymous
but… “voted” up and down
Internal use only May be posted to public
Survey based Mobile app based
Questions based on large
longitudinal database
Questions based on modern
engagement issues
39. 46
6. Network Recruiting Platforms
Replace Traditional Recruitment
Hiring
Manager
Relationships
Candidate
Pool
Development
Social Media
Campaign
Recruiter
Training
Governance &
Decision
Making
Employee
Referral
Program
TA Program
Management
Optimized TA
Technology
Diverse
Candidate
Slates
Employment
Branding
Assessment
Against
Requirements
Reporting &
Analytics
40. 47
The top three drivers of
talent acquisition
maturity are:
1. Building strong
relationships with
hiring managers
2. Cultivating pools of
potential candidates
long before hire
3. Driving employment
brand
62%
Create new
products more
quickly than
competitors
88%
Meet or exceed
financial targets
100 %
Meet or exceed
customers’
expectations
Source: High-Impact Talent Acquisition®, Bersin by Deloitte, 2014
Three Key Drivers of Impact
41. 48
Reactive Tactical Recruiting
Recruiters are “order takers;” posting of positions on an as-needed basis. Minimal hiring
compliance standards met; no real processes defined. No strategic focus on candidate
experience.
Level 1
Standardized Operational Recruiting
Effective assessment of candidates against job requirements. Begin to establish strong
relationships with hiring managers. Some link to workforce planning. Standard interview
documents.
Level 2
Integrated Talent Acquisition
Strong employment brand. Active pipeline of candidates. Robust TA programs
(e.g., diversity, alumni, employee referral). Investment in new TA products and
services.
Level 3
Optimized Talent Acquisition
Strategic enabler of the business. Successful social media campaign.
Recruiter training builds strategic capabilities. Ability to predict external forces
& remain agile.
Level 4
Talent Acquisition Maturity ModelBersinbyDeloitte
Source: High-Impact Talent Acquisition®, Bersin by Deloitte, 2014
35%
29%
23%
13%
42. 49
Professional
Networking Sites*
Traditional Recruiting Network Recruiting
Sourcing and engaging both active and passive candidates
through employees’ and company networks to build talent
pools for current and future hiring needs
Engagement Channel
Print
Job Boards
Agencies
Job Search
Aggregators
University Recruiting
Internal Talent
Mobility
Talent Communities
Employee Referrals
Network
Recruiting
Sourcing active candidates through recruiters or 3rd party
agencies to fill current hiring needs
How Recruiting Has Changed
From “Active” to “Network Recruiting”
45. 52
7. Radical changes to performance
management, goals, and talent
mobility
Only 8% of organizations
believe their performance
management process is
worth the time they’re
putting into it.
46. 53
The evolution of performance management requires a fundamental shift in thinking driven by emerging
business trends
Ongoing, Continuous: Annual and semi-annual review supplemented with
more frequent informal manager – employee check-ins and other simple
communications
Flexible, Agile. Simple: Light touch, low impact processes to gather
performance data. Non-value add administrative activities are eliminated
Data Driven: Performance data collected from multiple sources
throughout the year and analyzed to provide balanced performance
insights
Local Real–Time: Real time feedback and recognition provided
through use of frequent check-in and social media tools to improve
performance and drive engagement
Development Focused: Shift towards long term employee development vs.
appraisal
Strengths: Individual strengths identified and leveraged to maximize
employee potential and build high performing teams
Summary of Our Research
Philosophy
& Business
Goals
50. 57
But Keep it Simple
Coaching for
Development
Talent
Decisions
Performance
Improvement
Legal
Documents
Employee
Motivation
Compensation
Performance
Feedback
PERFORMANCE
MANAGEMENT
Coaching for
Development
Talent
Decisions
Performance
Improvement
Legal
Documents
Employee
Motivation
Compensation
Performance
Feedback
PERFORMANCE
MANAGEMENT
Kelly Services
Source:
“Getting
Away from
the Score:
Creating
Better
Ongoing
Performance
Feedback,”
Bersin &
Associates,
2012.
.
51. 58
Major Trends Will Disrupt Incumbents
Traditional top-down goal management is going away
Agile, transparent “OKR” models will replace in most cultures
Performance Management is directly linked to engagement and
retention and is causing pain
Performance Management process has been too tightly linked to
other talent processes in most organizations
Recognition, rewards, coaching, and developmental feedback will
become integrated parts of the process
Tools are far too complex, time consuming, and administrative for
today’s workforce and speed
Pulse surveys, supervisor coaching, and feedback must become part
of the process
52. 59
Back Office, Operational, Contingent Employees
Top
Management
Senior Management
First Line Management
Traditional View Talent Mobility
SMEs
(Consultants)
Senior Specialists
Functional Specialists / Front-Line Employees
Middle Management
53. 60
Back Office, Operational, Contingent Employees
Top
Management
Senior Management
First Line Management
The Reality
SMEs
(Consultants)
Senior Specialists
Functional Specialists / Front-Line Employees
Middle Management
Top
Management
Contract
Hire
Job
Intern
Developmental
Assignment
Lateral
Promotion
Stretch
Assignment
External
AssignmentUpward
Promotion
Lateral
Assignment
New
Assignment
Part Time
Loan
New
Candidate
New
Leader
Exec
Succession
54. 61
Entire Organization Must Contribute to
World-Class Career Management
• Identify
Career
Goals
• Maintain Profiles
• Demonstrate
Values
• Socialize
Interests
• Create Internal
Network
• Share Expertise
Employee
• Define Job
Profiles
• Provide Coaching
• Assess Potential
• Identify
Development
Opportunities
• Provide Candid
Feedback
• Share Talent
Openly
Manager
• Provides Tools &
Resources
• Develop Career
Models
• Facilitate
Process
• Offer Career
Coaching
• Career
Development
Training
• Integrate with
Talent Mgmt
HR
• Infrastructure –
Process,
Technology,
People
• Create Culture of
Mobility
• Communicate
Expectations
• Create
Transparent
Marketplace
Company
55. 62
8. LMS Market Transformed and
Expanded
The 21st century
employee wants easy-
to-use learning
approaches and
resources.
Yet 63% of companies
say they are “weak” in
providing mobile and
social learning as
development tools
and only 6% are
“expert” at advanced
media for learning.
56. 63
The LMS Market Is Being Reinvented
The 1990s-2000s LMS
Course Administration
Enrollment and Scheduling
Resource Management
Extended enterprise
e-learning
e-commerce
Virtual classroom
Assessment tool
Security and roles
Reporting
LearningAdministration
Collaboration
“Discussion Group”
Portals
Learning
Experience
The Modern LMS
“Old LMS” Feature Set
+ Deeper Analytics
Dynamic Profile
Expert Directory
Communities
Tagging
Content Management
Ratings
Multi-rater coaching
Feedback
Content Sharing
Content Management
Mobile
“New” virtual classroom
Highly Flexible UI
Talent Management Features
Administration
&Talent
Social&Collaboration
User
Experience
MORE
IMPORTANT
THAN EVER –
BUT NEED
SIMPLICITY
AND SCALE
57. 64
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UPSIDE LEARNING SOLUTIONS PVT
LTD
BANCINTRANETS CORE LEARNING SERVICES ELSEVIER MC STRATEGIES INC. ICS LEARNING GROUP LAMPA MICROPOWER POWERFUL LMS SOLIDSTATE LEARNING V CAMPUS
BANKERSEDGE CORNERSTONE ONDEMAND ELUCIDO IC-UC LEARNING Lanteria MINDFLASH PRESENT ELEARNING SYSTEMS SSE VELSOFT
MORE THAN
600 LMS
PROVIDERS
WORLDWIDE
58. 65
SumTotal
Skillsoft
Clear Consolidation at the Top
Massive Growth in Middle
SAP Oracle
Cornerstone
On Demand
Saba
Blackboard
SkillSoft
Dupont
NetDimensions
Healthstream
Cross
Knowledge
Meridian
Halogen SilkroadPeoplefluent
RISC
Elsevier
imc
IBM
Intellum
Kallidus
Technomedia
Absorb
RedTray
Expertus
Open Text
Lumesse
OnPoint
Digital
Intuition
ADP
Cegos
Bloomfire Wisetail
Desire2Learn
Docebo
Cyberwisdom
Digital Ignite
Healthcare
Source
INFOR
Litmos
CoursePeer
Thomson
Reuters
Underwriters
Labs
BrainHoney Schoolology
TMS
K-12 /
Higher Ed
Vertical
Specialists
Social /
Mobile
Content
The New
Middle
Compliance
59. 66
Blogs
Ratings
Mentoring
Wiki’s
Video
Podcasts
Discussion Boards Social
Networking
Tagging
Micro-blogs
Virtual
Worlds
Stretch
Assignments
Communities
of Practice
Collaboration
Search
Simulations
Surveys
Content Explosion
Whitepapers
Case
Studies
Articles
Visual Aids
Presentations
Books
Corp
Websites
Manuals
Performance Support
Product
Demonstrations
Instructions
Observations
JournalingStandard
Operating
Procedures
Newsletters Corporate
Communications
Marketing
Collateral
Business
Process
Documentation
Programs
Role Playing
Classroom
Conferences
eLearning
Coaching
Webinars
Lunch ‘n
Learns
Chalk Talks
Onboarding
Debates
Consulting
Lectures
Experiments
Labs
Teaching
Courses
Workshops
Interviews
Feedback
Mistakes
Successes
Job
Rotations
Peers
Project Post-Mortems
Meetings
Role Models
Job Shadows
After Action Reviews
Customer Data
Goals
Play
Conversations
Dialogue
Reports Memos
Appraisals
Business
Performance
Data
CRM
Records
Proposals
60. 67
Spend time and money differently (think beyond courses and LMSs).
- 1,700,000 live classes
- 250,000 elearning courses
- 318,000 books
- 187,000 articles
- 344,000 videos
- 1,200+ providers
Brand New L&D methods,
infrastructure and tools
Source: Degreed, 12/2014
61. 68
The Four E’s Take Over Learning
Informal
Education Experiences Exposure Environment
- More mature
L&D teams
deliver 16%
less training
via ILT and
vILT classes
+More mature
L&D teams
deliver 31%
more learning
via on-the-job
experiences
+More mature
L&D teams
deliver 140%
more learning
via coaching &
collaboration
+More mature
L&D teams are
91% more
likely to use
performance
support tools
Formal
Source: Bersin by Deloitte, 2013 and 2014 Corporate Learning Factbooks
67. 74
What we have learned: An Integrated Approach is Needed
The Simply Irresistible Organization®
Meaningful
Work
Great
Management
Fantastic
Environment
Growth
Opportunity
Trust in
Leadership
Autonomy Agile Goal Setting (ie.
OKR)
Flexible, humane
work environment
Facilitated talent
mobility
Mission and purpose
Selection to Fit Coaching & feedback Recognition rich
culture
Career growth in
many paths
Investment in people,
trust
Small Teams Leadership
Development
Open flexible work
spaces
Self and formal
development
Transparency and
communication
Time for Slack Modernized
Performance Mgt.
Inclusive, diverse
culture
High impact learning
culture
Inspiration
Worldwide, only 13 percent of employees across 142 countries are emotionally invested in their jobs. Gallup also found that those who are actively disengaged – that is those who are negative and potentially hostile to their employers, outnumber engaged employees at a rate of 2:1.
Gallup believes this is costing businesses more than $800 billion in lost productivity and hiring costs around the world.
Think about this: who owns the whole “retention and engagement” problem in your organization? How well do you really know what’s on people’s minds on a day to day basis. Do you measure retention regularly and study why it varies from place to place?
While around 60% of businesses deploy some kind of engagement survey, our research shows that today’s process for measuring and managing engagement has become obsolete.
Employee engagement is far more complex than it seems – and the old adage “people leave managers, not organizations” is definitely no longer true. New research shows that engagement is much more highly linked to ability to grow and top leadership than management: in other words good managers won’t get you to stay, but bad managers may make you want to leave.
Companies like Adobe and JP Morgan Chase, who I spoke with in the last few weeks, told me that they are now taking a holistic look at engagement – considering the entire work environment, culture, supervisory skills, leadership, as well as the work itself. We believe this may be the the secret: over the next few years you will have to rethink your engagement and retention strategy in a highly integrated way.
And technology is here to help.
New social networking tools, pulse engagement tools, and analytics tools are now able to “predict” retention using Big Data. Some even monitor your employees’ changes to their social networking sites.
Karen and I will be leading a panel of analytics experts to help you understand how world class companies manage data and we’re very lucky to have Hilary Mason, a real data scientist, talk with us on Wednesday afternoon.
(c) Bersin and Associates
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allows for privacy regulations to be made.
But what about this issue of the “overwhelmed employee”? Where does that fit into the calculus of building the “irresistible organization”?
First, it’s a big problem. Research shows that the average cell phone user checks his mobile device 150 times a day. Neurologist Larry Rosen has found that today’s office worker can only focus for six minutes on a single task, and then opens a window to check Facebook or do something else. We have become physically and emotionally addicted to the buzz, beep, or flash that comes from our devices.
Julian Birkenshaw and Jordan Cohen noted in the Harvard Business Review that knowledge workers spend 41% of their time on discretionary activities that could be handled by others? Why? Because it’s easier to “complete” these little tasks than it is to ponder and struggle with more complex and difficult projects at work. They found that by changing work habits and reducing time-wasting meetings, people could save 15% of their time in a typical insurance company.
The bigger issue, of course, is that society is now wired this way. Twitter’s explosive IPO says it all: if you can squeeze your message into 140 characters and blast it out by the millisecond, people will get addicted. Have you noticed how TV shows move faster than ever? They do. The broadcasters now change scenes 35% more frequently than they did only four years ago.
This problem is here to stay, and our job is to figure out what to do about it. Mindfulness has become a fast-growing industry, moving beyond the best-seller list and newsstand.
Pfizer recently told me they are putting “mindfulness” into their leadership curriculum, and “self-awareness” came up as one of the most important competencies in new leadership programs.
Google and Patagonia offer yoga and meditation at work. Huffington Post has nap rooms. Arianna Huffington’s new website The Third Metric, which focuses on work-life balance, is the fastest growing part of her online presence.
Approximately 50% of HR professionals feel that PM processes do not help managers make strategic operational decisions1
45% of human resources leaders don’t think annual performance reviews are an accurate appraisal for employees’ work2
Only 8% feel their perf managemet effort drives significant value
And now poor HR has to catch up. The book Moneyball certainly educated us that data can make a big difference in selection, and people like Malcolm Gladwell and many others have popularized the idea of using data to make more scientific decisions about people.
I seem to read an article in the New York Times every week about this topic now.
We just completed two years of research in this area and found that yes, a small number of HR organizations (14% in fact) are well ahead of the curve and have effectively “datafied” their operation.
These unique companies are seeing tremendous improvements in business performance: they are two times better at recruiting, twice as capable of building the right leadership pipeline, their HR organizations are typically 3X more efficient, and their stock prices rose 30% higher than the average of the S&P 500 over the last three years.
The question one has to ask is who are these companies and how did they get here?
One of the most important things HR does in the company is to help in hiring the right people. This includes employment brand, talent networking, scientific assessment, mobile recruiting tools, manager and recruiter training, and analytics.
One specific topic of discussion is the localization of talent acquisition. We are in a war for talent around the world: the war for the best people.
Today’s workforce is more diverse than ever – in age, expectations, location and mobility. Our research shows that 70% of organizations are still recruiting baby boomers, while 30% will still consider hiring a candidate who has inappropriate postings on social media. Further, our new High Impact HR research shows that organizations with mixed age work forces perform better than those that are highly skewed toward younger or older workers.
Nearly every organization we work with is looking for ways to grow. Whether this is geographical or line of business expansion, HR professionals are striving to develop workforces that can manage through ambiguity and rapid change.
This is why
AT&T chose Bersin to redesign its performance management system, resulting in a 15% improvement in productivity in the first two years
When Pfizer merged with Wyatt, they looked to Bersin to effectively consolidate two training groups into one organization, 2/3 the size of the previous team. This group cut training costs by 32% while creating innovative, high performing learning programs
JetBlue University transformed their training team from request managers to performance consultants by using Bersin’s research to create a business alignment tool that ensures that the University’s resources are spent on strategically significant programs.
Developing relationships with hiring managers is the most influential driver of TA performance outcomes, as it is 4 times more influential than other drivers. A staggering 97% of Level 4 organizations report that they have strong relationships with hiring managers. Hiring managers and recruiters are on the front line shepherding tomorrow’s talent through the door. Hiring managers and recruiters must be in lock-step, delivering a positive candidate experience, true and authentic employment brand messaging and timely talent solutions.
Not to be overlooked, developing candidate pools is the second most influential driver of TA performance outcomes times at 2x more influential than other drivers. 91% of Level 4 organizations report that they successfully develop candidate pools. Building relationships with prospective candidates is an integral part of the recruiter function. When done well, recruiters can deliver talent on demand. With the presence of online Talent Communities, as well as the more traditional pools of talent, recruiters have a lot of key constituents to engage. Volume concerns and eager hiring managers are a constant in the world of Talent Acquisition. Finding the balance between engaging, communicating, and sustaining a positive employer brand image is vital to recruiter success.
You should have been given a handout that looks like this when you entered the room. If you don’t have one for some reason, please raise your hand and we’ll make sure you get one.
If you’ve seen our maturity models before, what I’m about to show you will look familiar as all of our maturity models are organized the same way. Let’s start at the beginning – or at Level 1, at the lowest level of maturity.
At Level 1, recruiting is a tactical activity, often done locally, and is viewed as a cost of doing business. Recruiters are basically order takers where the hiring manager submits a job requisition to the recruiter, the recruiter screens candidates, and hiring manager interviews candidates. Hiring processes are not typically well defined, minimal hiring standards are adhered to and there is no strategic focus on candidate experience.
At Level 2, recruiting has become standardized and is a corporate-wide support function for hiring managers to fill open positions. Organizations begin to define their TA technology strategy, typically starting with an applicant tracking system. Moreover, a strategy is being established to cultivate existing candidates and build long-term relationships. The interview strategy and rating systems are developed and there is some standardization of processes.
At Level 3, talent acquisition is considered an essential partner in attracting and selecting the right talent for the organization. Executive buy-in and sponsorship contribute to TA success. Recruiters partner with hiring managers to establish a recruitment strategy and timeline. Demand and supply forecasting are used to make proactive decisions and close anticipated gaps. Employment brand and employee value proposition resonate with current employees, often resulting in employer of choice status. TA measurement becomes standardized with key performance indicators defined for critical metrics. A link to succession and performance management is formed, providing TA with an understanding of the workforce and existing talent capabilities, while facilitating internal talent mobility.
At Level 4 – highest maturity, talent acquisition is seen as a strategic enabler of the business and a necessary investment to drive competitive advantage. The attraction and hiring of top talent is an essential part of the culture. A well-developed governance structure is in place and charts a strategic direction for the acquisition of talent within the organization. Recruiters act as true consultants to hiring managers. They understand trends in the labor market, use various sourcing tools to build talent pipelines, and are well-versed in engaging and converting high-caliber candidates. Integrated workforce plan is evaluated annually, and sophisticated predictive modeling is used in scenario-based analysis
Based on our study of 297 companies, we found that 35% of companies were at the lower levels of maturity (Levels 1 and 2), the majority (52%) of companies were at Level 3 TA maturity, and 13% at the highest level or Level 4. We were happily surprised to see few organizations at Level 1 as it shows that organizations have already moved to standardize their TA functions at Level 2. It’s also important to note that some organizations may be between levels, possessing some characteristics of one level and also exhibiting many of the improved behaviors of the next level up.
Our research showed that there were key dimensions and factors to consider when evaluating maturity. We’re going to examine each in detail to help tie this all together.
If you don’t believe me on this topic, let me introduce you to the science.
An Australian neuro scientist named David Rock has conducted research showing that we humans have different regions in our brain. These include the front part (prefrontal cortex), which helps us with learning, creativity, problem-solving, organization, and other important skills. And a deeper region called the limbic system, where the amygdala resides. The amygdala is the “survival” part of the brain.”
Dr. Rock’s team discovered that when we as humans are threatened, our cognitive processing immediately shifts from the front to the back. In other words, we are “survival” machines. So if you’re at work, happily working away to solve a problem, work in a team, or learn something new and you suddenly feel threatened, all your productivity goes away.
In fact, not only do you become defensive, but you start to make mistakes, avoid risks, communicate poorly, and generally worry and become unproductive.
What causes this shift in processing from the front to the back of your brain? A loss of status, certainty, autonomy, relatedness, or fairness. What causes these things? Your boss criticizes you. You don’t get promoted. You hear about a reorg which wasn’t announced. Your boss micro-manages you. You aren’t invited to a meeting. Someone else gets promoted and you don’t. In fact, most of the things that happen in traditional performance reviews create this effect.
This is such a strong effect that companies can measure its result. Steven Rice, the CHRO of Juniper, actually looked at Juniper’s business performance right after their twice per year performance reviews and saw a measureable dip. He concluded that their entire performance management process was doing exactly the wrong thing – forcing their entire company to shift from “front brain thinking” to “rear brain thinking” twice a year every year. And that is why they totally revamped their performance management process. Which is now one of the biggest topics in business.
SG
Kelly Services offers outsourcing and consulting services, including recruitment, HR management and vendor management to companies worldwide. The organization, which had $5.5 billion in revenue in 2012, has about 1,100 permanent employees at its headquarters in Troy, Michigan, and about 6,800 more in branch offices worldwide. The company provides temporary employment to about 560,000 people each year.
In 2008, the HR leadership team at Kelly decided it was time to take a fresh approach to performance management. There was a general sense that the old way was not working, but it was unclear exactly what lay at the root of the problem.
Kelly assembled a team to set a new course – purposely without a vision for what that course would look like. Open-mindedness and candor were important elements of what participants recall as a deeply introspective process. A key element of the process was a focus on Kelly’s fundamental beliefs and assumptions about its people. Specifically, Kelly looked at how policies and procedures can either communicate or undermine the core beliefs and expectations that leaders have regarding employees. For example, too much emphasis on monitoring behavior through tools like time clocks and activity logs can suggest distrust or an expectation that employees work only for their paychecks, not out of integrity or a desire to do a good job. Kelly took a step back to identify what managers and leaders believed about employees, then let those beliefs guide subsequent decisions.
Leaders at Kelly ultimately decided that past approaches to performance management had been paternalistic, rather than collegial. In examining their core beliefs about employees, leaders concluded that such a tone did not accurately reflect their expectations of employees. The leaders believed most employees cared about their jobs and wanted to do them well.
It followed that the aim of performance management should be to help employees follow through on their natural motivation. But conversation after conversation revealed that many regarded the performance management score as a hindrance.
Kelly could have renewed efforts to standardize the scoring process, but that began to seem like a case of the tail wagging the dog. What leaders and employees primarily wanted wasn’t more consistent scoring; it was more fruitful performance-management conversations.
In the end, the decision came down to what the scores represented for Kelly and its workforce. Rightly or wrongly, the scores had become emblematic of a management-driven, red-tape-laden approach to performance management. So, Kelly decided to abolish them. In one sense, abandoning scores was a tactical move. But in perhaps an even more important sense, the change was strategic and symbolic – an opportunity to redirect thinking across the enterprise.
Since Kelly has abolished performance scores, they have seen higher levels of engagement from employees and received reports that performance conversations are much more honest and effective.
(c) Bersin and Associates
What are you using – are you using these?
Rallyteam(?) – “they take the career portal we designed and put it on steroids” (…like Pathgather?)