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The findings The name of this trend—“people analytics”—brings together HR and business data to improve and inform management, business, and HR decisions throughout the company. While HR organizations have been talking about building analytics teams for several years, in 2016 we see a major leap forward in capabilities.
Why is this? Driven by competitive pressures and the greater availability of more integrated systems, organizations are aggressively building people analytics teams, buying analytics offerings, and developing analytics solutions. First, companies are rapidly adopting more integrated cloud-based HR systems, enabling them to examine HR data in an integrated way for the first time. Nearly 40 percent of all global firms are either replacing or plan to replace their core HR systems over the next two years. Second, people with analytics backgrounds are coming into HR. Third, nearly every ERP vendor and talent management provider now offers off-the-shelf analytics tools, and many include embedded models. Experienced consultants are sharing ideas and bringing expertise to companies new to the domain. Finally, CEOs are pressing their CHROs to build this capability
What’s needed? We expect the trend toward analytics-driven HR to continue gathering strength over the coming year. As this happens, analytics will penetrate deeper within HR, extending beyond talent acquisition to learning and development and operations. However, providing great data and insights is only part of the solution. The real value is in turning that insight into change that delivers business value, which requires sound change management practices.
Rewrote Lady Gaga Video and used “Can I get some Hands”- which is a cheesesteak culture. Used to have a culture of “no cell phones” in front of guest, in Kitchen we don’t allow it for safety reasons. They do this at the end of their shift, beginning of shift. “New Restaurant Openings” – we send 50 high performers to open a new restaurant. Hype. Tiger Team – stocks, sets up new systems, builds an amazing community. New restaurant which is opening can keep all this info. How we roll the perfect strawberry for a cheesecake. “learning channel” to look for videos. If we embed video into training, they get credit for it. They’re all excited to be publishing this. Right now we’re doing a video on culture, and we want the consistency across all sites, so we’re created the “you’re so cheesecake” channel – “why you’re so cheesecake” I take pride in the food that I make for every guest.
What are you using – are you using these?
The findings Data and analytics are key to solving many of the top challenges we identify in these trends: engagement, leadership, learning, and recruitment. Still too few organizations are actively implementing people analytics capabilities to address complex business and talent needs. Three in four companies (75 percent) believe using people analytics is important, but just 8 percent believe their organizations are “strong” in this area—almost no change over 2014.
Why is this? Leading companies are using analytics to gain a competitive advantage by understanding all elements of the workforce, including to: Understand and predict retention Boost employee engagement Expand talent sources and improve quality of hires Profile high performers in sales and customer service Yet, our survey confirms that most organizations have been slow to get started, showing very little progress in implementing analytics. In fact, this year’s study shows that there has been little year-over-year improvement in analytics capabilities.
What’s needed? People analytics, a capability built over years, is one of the biggest differentiating factors for high-performing HR organizations today. Without early, substantial investments, it is difficult to get traction. Companies must therefore make a serious commitment to this discipline, search for robust solutions from their core system vendors, and hire people into HR who have an interest and background in analytics and statistics.
(c) Bersin and Associates
The full Human Capital Trends 2016 report goes much deeper. You’ll find stories of how leading companies are leveraging these trends for competitive advantage. And if this all seems overwhelming, we’ve incorporated practical advice for companies and HR leaders on where to start.
Our advice is straightforward: [Josh, I need your help here, too.]
Corporate Learning in 2016 The
ten trends shaping learning for 2016 The New World of Work: Learning at the Center 1. Economics: The Learning Curve is the Earning Curve 2. Growth of Corporate L&D: Faster than Ever 3. Shift in the Learning Mix: Content and Curation as King 4. Managing Content: Today’s New Challenge 5. Design Thinking: Triumph of Experience over Instruction 6. 21st Century Career Management: A New Opportunity 7. Leadership Rewired: Rethink Leadership Strategy 8. Modernizing L&D: Transformation of the Function 9. Training Measurement: Shift toward People Analytics 10. The New CLO: Chief Culture, Change, and Career Officer
Culture and engagement Leadership gaps
Learning and development HR Skills and capability 87% 86% 86% 80% Workforce capability Performance management HR and people analytics Simplifying work Machines as talent People data everywhere 71% 57% 52% 80% 75% 75% % VERY IMPORTANT 50% 51% 40% 39% 35% 34% 29% 26% 20% 14% 2015 Deloitte Human Capital Trends Importance of trends to business
Surveyed Millennials also … 60%
think 7 months of work means they’re “loyal” 2/3 want to be “creative” at work in their job 80% want to give performance appraisals to the boss Their “team mates” are the most important people at work Expect feedback weekly and progression annually
Average 3.1 What are these
companies doing? Glassdoor ratings of employer recommendations — 200,000+ respondents Engagement appears to be a global challenge
Culture, value, leadership, and career
(The Big Four) The issues that matter to employees 0.00 0.12 0.13 0.22 0.28 0.30 0.00 0.05 0.10 0.15 0.20 0.25 0.30 0.35 Year founded (age) Compensation & benefits Work life balance Career opportunities Senior leadership Culture and values Correlation of employment factors to glassdoor recommendations as place to work Culture and leadership are 3X more important than salary in your employment brand. Career development and learning are almost 2X more important than comp, benefits, and work environment.
Training is key to Millennial
engagement Millennials are desperate for development 6% 6% 8% 14% 19% 22% 0% 5% 10% 15% 20% 25% Greater vacation allowance Retirement funding Free private healthcare Cash bonuses Flexible working hours Training and development The alliance: Millennials in the workforce For Millennials, “Training and development” is the most coveted job benefit Source: KPCB Percent indicating job benefit in first place
Sources: Deloitte Human Capital Trends
2014 and 2015 The overwhelmed employee The “average” US worker now spends 25% of their day reading or answering emails Fewer than 16% of companies have a program to “simplify work” or help employees deal with stress. More than 80% of all companies rate their business “highly complex” or “complex” for employees. The average mobile phone user checks their device 150 times a day. The “average” US worker works 47 hours and 49% work 50 hours or more per week, with 20% at 60+ hours per week 40% of the US population believes it is impossible to succeed at work and have a balanced family life.
Performance management The process is
broken Only 12% of companies believe their existing performance management process is “worth the time put into it.” — Deloitte Human Capital Trends 2015
We are here The industrial
corporation Hierarchical leadership Collaborative management Networks of teams <1950s 1960s-80s Today1990s Andrew Carnegie Henry Ford Netflix, Google, Facebook, Amazon Jack Welch Peter Drucker Howard Schulz Steve Jobs Profit, growth, financial engineering Customer service, employees as leaders Mission, purpose, sustainability Operational efficiency 2020 Purpose,meaning, andempowerment? Industrial age people as workers Management by objective Servant leadership work together Empower the team The corporation is king The executives are king The teams and team leaders are kings The people are king(s) Historic perspective on performance and management The evolution of management thinking
The economics of learning Income
inequality drives demand Top 1% 8% of wealth Bottom 50% 18% of wealth US economy in 1980 Levelofearnings Top 1% 20% of wealth Bottom 50% 12% of wealth US economy in 2012 Levelofearnings
“Over 300 years of economic
history, the principal and most enduring mechanism for distribution of wealth and reduction in inequality is the diffusion of skills and knowledge.” Why learning is so important to employees The learning curve is the earning curve
1975 2014 “In 2015, only
50 percent of college graduates were working in the field they studied and over a third indicated they would have chosen a different major. Nearly 40 percent of college graduates believed that their school did not prepare them well for employment.” — GSV 2020 Report “By 2020, India is expected to have more college graduates (200 million) than the entire US Workforce.” —GSV 2020 Report Education leads to employment US education falling short
L&D spending has grown in
double digits for four years in a row Leadership development spending grew by 14% YTY in 2014, highest growth in decade Learning technology (LMS) spending grew by 21% in 2014, representing a major “technology replacement” cycle beginning More than $6.4 billion of financing invested in education and training companies in 2015 (up from 3.2 Billion in 2011) The corporate learning market A hot growth marketplace
Consumerization of education has arrived
MOOCs are explosive 400+ universities. 2,400+ courses. 16-18 million students. Harvard has an in-house course production studio with over 50 staff, including specialists in instructional design, production, research, technical operations, and program support
35 Million people have enrolled
in MOOCs in the last four years, with 2015 enrollments doubling 2014 Self-authored video (ie. Snapchat) is now >55% of all internet traffic (KP Internet Trends 12/2015) India alone is estimated to be a $3-4 billion market for corporate learning and MOOCs Expert and user authored video is taking over Explosive growth in video content
12% 6% 26% 13% Using
MOOCs Advanced media (video, gaming, mobile) 2015 2016 110% Growth 130% Growth Companies rapidly maturing their approaches (% of companies rating their practices “excellent”) Source: Deloitte Global Human Capital Trends 2016, n=7,000 Digital content everywhere Companies are adopting MOOCs and video
77% 53% 32% 4% 6%
13% 10% 15% 26% 4% 14% 15% 5% 10% 13% 2009 2012 2015 ILT Virtual ILT Online self-study On the Job Collaboration ILT shrinking in volume, growing in importance Online and collaborative learning Is finally working OTJ and apprenticeship is growing rapidly Today only 16% of L&D spending is allocated to instructor delivery, vs. 21% in 2011 and 33% in 2006” Bersin Corporate Learning Factbook® 2015 Shifting resources away from ILT, toward online and on the job Huge shift in content strategy
Spaced learning, gaming, and adaptive
learning Game based safety training Walmart associates log into the system daily and spend a couple of minutes receiving safety culture content, often in the form of questions. The system provides instant feedback, so associates know which questions they get right and where they need improvement. The system also shows associates how they measure up against their peers. The next time associates log in, the system remembers their responses and asks questions to reinforce information they know, to ensure learning progresses, behaviors improve and associates don’t forget what they learned previously. 58% improvement in safety measures in the first year.
# Top 22 best practices
Impact Area 1 Coaching: formal or well established coaching programs for employees. 48% Performance management 2 Consolidating staffing requirements across the organization 42% Sourcing and recruiting 3 Ability of current workforce planning process to identify current and future talent gaps 38% Workforce planning 4 Competencies maintained through annual maintenance process 34% Competency management 5 Staffing metrics: measuring time to hire, cost to hire, and quality of hire 33% Sourcing and recruiting 6 Cascading goals: aligning goals to manager or corporate goals 33% Performance management 7 Development planning: creating consistent development plans across the organization 33% Performance management 8 Establishing goals: establishing clear and measurable goals for all employees in organization 32% Performance management 9 Job functional competencies well established and used throughout the organization 32% Competency management 10 Competencies used in recruiting process for assessment and interviewing 32% Competency management 11 Managed recruiting process: carefully monitoring and tracking interview process 31% Sourcing and recruiting 12 Assessing performance: delivering an annual performance appraisal and evaluation 30% Performance management 13 Internal sourcing: internal job postings, career planning, and promotion to recruit from within 29% Sourcing and recruiting 14 Leadership competencies well established and used across the organization 29% Competency management 15 Performance based compensation: consistently linking compensation to performance ratings 27% Performance management 16 Competencies used in performance management for assessment, review, and development 27% Performance management 17 Developmental training: training tied to developmental goals of individuals & organization 27% Learning and development 18 Competencies used in leadership development programs for training 24% Competency management 19 Pre-hire assessment: assessing candidates against competencies for a position 23% Competency management 20 Employer brand: using web, collateral, and marketing to position well for recruiting 22% Sourcing and recruiting 21 University recruiting: working with educational institutions to obtain qualified candidates 22% Sourcing and recruiting 22 Maturity level of leadership development: Strategic Leadership Development (level 4) 21% Leadership development Bersin & Associates High-Impact Talent Management, 2007 Coaching is the process most highly correlated with impact. Coaching and development model Data proves coaching pays off
Many companies are desperately looking
for ways to build leaders from Millennials Mentors and mentor programs are often among the hottest programs to build new leadership When asked “how would you like to learn to lead,” more than 60% of Millennials surveyed say “I’d like a mentor.” Salesforce found that 95% of leaders who have mentors were promoted within 18 months What millennials likely want (and need) The mentor next door
12% 15% 26% 24% Collaboration
with educational institutions Apprenticeship programs 2015 2016 60% growth 120% growth Rapid rise in programs to build new career skills (Nursing, Technology, IT) Need for new career management Apprenticeship programs
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 Whitepapers Case studies Articles Visual aids Presentations Books Corp websites Manuals Performance support Product demonstrations Instructions Observations Journaling Standard 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 Content explosion
80% of utilization use 1%
of the learning programs The “Long Tail” of content usage in training People cannot absorb all we give them Typical learning portfolio: Lots of waste
Run the business WIN in
the market Custom to you Off the shelf IT Training Desktop Skills General Management Skills Project Management Sales Techniques Customer Service Techniques ERP Rollout Call Center Application Training Product Introduction Your secret sauce Business critical Skills, competencies, and processes for your company 40% 10% 20% 30% Focus here Outsource Training Investment Model® “The Blended Learning Book,” by Josh Bersin Training investment model Need for portfolio analysis
Careers today are different 21st
Century careers: No longer for life People change jobs: average tenure at work is <4 years Part time and contingent: “Uberization of Work: • 55 Million people (32%) in the US work part-time, contingent, or as contractors Skilled workers in high demand: • 30% of Tech workers believe they could get a better job within 60 days if they looked (Dice) This means: • Without a facilitated talent mobility strategy good people will likely leave • Alumni networks, external mentoring, job rotation inside and outside the company are all important today
Career development means upward progression
Career development means growth through new experiences New positions are offered to me when I am ready I seek out and assess myself against new positions and jobs Development funding focuses on senior leaders Development funding is applied to all roles and functions My manager decides when I am ready for a new position I decide when I’m ready to move, with support from the organization. My manager helps me with career when he or she has time My manager, mentor, and others help me find job opportunities Taking a new assignment can be risky if I fail or the project fails Moving to new positions is respected and considered key to everyone’s growth Career management today Building the new career
Desired competencies (knowledge, behavior, skills)
Open positions & opportunities Individual needs/desires Vision Strategic initiatives Desired business outcomes Values Mission Organization needs Mobility Strengths Development needs Career aspirations Annual goals Succession management Career development Individual Development Plan (IDP) Strategic competencies Workforce planning Performance management Development planning A method for bringing the talent system together The talent mobility formula
Back office, operational, contingent employees
Top Management Senior management First line management SMES (Consultants) Senior specialists Functional specialists/front-line employees Middle management Career management The traditional view
Back office, operational, contingent employees
Top Management Senior management First line management SMES (Consultants) Senior specialists Functional specialists/front-line employees Middle management Career management The reality Contract hire Job intern Developmental assignment Lateral promotion Stretch assignment External assignment Upward promotion Lateral assignment New assignment Part time loan New candidate New leader Exec succession
Open job descriptions, levels, and
job demands Job assessments online for self-assessment and development Professional career counselors in HR Career explorer tools are available for all employees Wide variety of online learning for technical, professional, and managerial growth Apprenticeship model adopted internally Cross functional projects are valued as development Line / Staff / Line / Staff transitions are valued and managed carefully Development includes industry, company, and functional training Career Resource Center available All external positions are posted internally Internal candidates given fair or preference to external “Job rotation” programs into and out of functions are valued Specialist roles are valued, rewarded, celebrated Storytelling celebrating career paths of varied types “HIPO” programs are not sacrosanct as the only way to get ahead Clear and agile goal setting Managers rewarded for “talent production” not only “talent consumption” Managers measured by engagement and progression of team Learning funded and valued by top management Tolerance of failure without blaming the people “Career Advisor” or “sponsor” separate from manager Return guaranteed for risky assignments Network building rewarded for progression and leadership Managers rewarded for coaching and development Design thinking about lifecycle of employee in a role for first 2 years Onboarding and performance support valued part of manager and L&D role Professional Ladder separate from Management Ladder Rewards for New Assignments and stretch assignments Inclusive culture enables anyone to take any job Making mistakes is valued as learning and discussed openly Tolerance of staff who are “incompetent” and new at job Promotions and Salary Increases for Non- Management Jobs Meritocracy as culture of reward and growth PM process focuses on development and coaching All jobs defined around similar competency model Active mentoring program with internal and external mentors Mentoring is valued, institutionalized, rewarded, and mentor development programs exist Multi-year management or career development programs exist and are honored Social and video sharing tools are used for learning Job Seeking Career Advice Management Culture L&D and Talent Mgt. Job Transition Culture and Reward Systems Career management in the digital age New culture of management
• Identify career goals •
Maintain profiles • Demonstrate values • Socialize interests • Create internal network • Share specializations Employee • Define job profiles • Provide coaching • Assess potential • Identify development opportunities • Provide candid feedback • Share talent openly Manager • Provide tools & resources • Develop career models • Facilitate process • Offer career coaching • Offer Career development training • Integrate with talent mgmt HR • Develop Infrastructure — process, technology, people • Create culture of mobility • Communicate expectations • Create transparent marketplace Company Only 11% of companies surveyed have a clear strategy for career development Talent mobility takes a complete commitment
Fuel50 Example of career management
solution Results After a 3 month program, the following was achieved: 50% reduction in voluntary attrition 46% strongly agree with Transcom cares about my career (compared to 29% in April) 16% reduction in involuntary attrition Absenteeism decreased from 16.12% to 12.13% 93% would recommend Transcom as employer (an increase from 86.6%) 76% have had a career conversation with their team leader within the last week (compared to 43% in April)
Percent of companies rating leadership
“important” jumped from 87% in 2015 to 89% in 2016. Percent of companies rating the problem “urgent” jumped from 51% to 57% from 2015 to 2016. The problem is getting more urgent Yet progress is uneven and inconsistent 61% of companies are revamping or just revamped their leadership program in the last year and 30% are doing it this year. Yet 38% have no plans and 21% have no leadership development programs at all. Deloitte Global Human Capital Trends Leadership trends in 2016 Deloitte 2016 Human Capital Trends n=7,000
Inconsistent Management Training Content Available
• No Development Process • Benefit to Employees Level 1 Structured Leadership Training Core Competencies • Well-Defined Curriculum • Developing Individuals Level 2 Focused Leadership Development Culture-Setting • Future-Focused • Developing Organization Level 3 Strategic Leadership Development Championed by Executives • Talent Management Integration Level 4 BersinbyDeloitte 25% 38% 28% 10% Leadership rewired Why is the leadership market so broken?
8% 15% 9% 6% 13%
20% 15% 7% Global skills and experiences in leadership program Leadership programs for all levels (new, mid- level, senior) Experiential leadership programs Targeted Millennial leadership programs 2016 2015 Maturity growth in global and experiential programs, but not enough focus on Millennials (% companies who are “excellent” at these areas) Deloitte Global Human Capital Trends 2016, n=7,000 70% of Millennials tell us they are receiving no leadership development at all. Focus areas Weakest area seems to be Millennial programs
New model for leaders Creativity,
not planning Quick decision-making Getting closer to customers Globalization, diversity Continuous change Manage unexpectedness Agility, not control “We have to push young professionals into leadership positions before they’re ready.” Global Pharma The concept of a HIPO or “readiness” has now become obsolete.” Global Tech Company 21st Century leadership models Leading in a network of teams
Level 1: Incidental Training Source
of Ad-hoc Job Support | Mentoring & Apprenticeship | Emerging Need for Professional Training | SME Focused Level 2: Training & Development Excellence Source of Designed Instruction | Evolving Governance & Operations Improving L&D Core Processes | Program Focused Level 3: Talent & Performance Improvement Source of Talent Development & Performance. Consulting | Integrated with HR/TM Development Planning | Career Models | Leadership vs. Professional Level 4: Organizational Capability Source of Business Performance Capability & Learning Agility Executive Driven | Cultural & Systemic Focus Utilitarian Training & Job Shadowing Formal Design, Architecture Talent Driven Learning Cultural Continuous Career High-Impact Learning Organization® Maturity Model Evolution of the L&D Function
The “full stack” L&D professionalLMS
Design Thinking X-API Employee Engagement Analytics Learning experience design Video Social systems MOOCs Performance SupportContent tools Product Management Professional Development Coaching Content Management GamificationMetadata Taxonomies UI Design Instructional design Mobile app design Career management Adaptive Learning Spaced learning Culture Neuroscience Digital HR hits L&D The new skills and roles for L&D
Recruiting & Workforce Planning Comp
and Benefits, Rewards Performance Succession Engagement Learning & Leadership HRMS Employee Data Engagement & Assessment + Sales Revenue Productivity Customer Retention Product Mix Accidents, Errors, and Fraud Quality Downtime Losses Groundbreaking new insights and tools for managers to make better decisions (not HR) Data management, Analytics, IT, and Business Consulting Expertise + = Location, Travel, Meeting Time Organizational Network Analysis Sentiment, Heart rate, Voice + This is NOT HR ANALYTICS! The new world of people analytics
Operational reporting Reactive reporting of
operational & compliance measures • Focus on data accuracy, consistency & timeliness Level 1 Advanced reporting Proactive reporting for decision-making • Analysis of trends & benchmarks • Customizable, self-service dashboards Level 2 Advanced analytics Statistical analysis to help solve business problems • Identification of issues & actionable solutions • Centralized staffing & integrated data Level 3 Predictive analytics Development of predictive models • Scenario planning • Integration with business & workforce planning • Data governance model Level 4BersinbyDeloitte 56% 30% 10% 4% What our research discovered Bersin by Deloitte Talent Analytics Maturity Model