More Related Content More from Josh Bersin (20) The HR Software Market Reinvents Itself 1. Bersin by Deloitte / The indispensable digital HR destinationCopyright © 2017 Deloitte Development LLC. All rights reserved. 0
Josh Bersin
Principal and Founder, Bersin by Deloitte, Deloitte Consulting LLP
August 2017
HR Technology Disruptions
The HR Tech Market Reinvents Itself
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Demographic
upheavals:
Millennials make up
more than half the
workforce, and Boomers
are working into their
70s and 80s.
Digital technology
everywhere:
Technology is disrupting
business models and
radically changing the
workplace and how
work is done.
Artificial Intelligence and
Robotics
Jobs becoming automated
at an increasingly rapid rate,
causing continuous change
in roles and skills needed.
New social
contract:
Younger and older workers
demand rapid career
growth, compelling and
flexible workplace, and a
sense of purpose at work.
Forces Disrupting Organizations Today
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Productivity is Suffering – Is Technology Helping?
US Productivity Last Ten Years
1 billion
smartphones
i-Phone
launched
100 million
Twitter users
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Sources: Deloitte Human Capital Trends 2014 and 2015
Employees are Overwhelmed
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.
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• Since 2000, US workers have lost an entire week of
vacation, dropping average vacation days from 20.3 to 16.2
• Americans left 658 million unused vacation days and lost
220 million of them in 2015
• 39% of Americans “want to be seen as a work
martyr” yet 86% say it’s bad for their family life.
We Are Working More Hours: A Vacation Crisis
48% of
Millennials
want to be
seen as a
“work
martyr”
Millennials
50% more
likely
to forfeit
vacation days
Source: Project :Time Off, https://www.projecttimeoff.com/research/state-american-vacation-2016
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Average
3.2
What are these
companies doing?
Engagement Remains a Challenge
Summer, 2016 Glassdoor Bersin Research, Glassdoor ratings of employer recommendations — 200,000+ respondents.
http://www.4-traders.com/AON-PLC-11994390/news/Aon-Employee-Engagement-Declining-Across-the-Globe-24083101/
AON research (March 2017)
shows global engagement
dropped by 4%
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The Modern Organization: A Network of Teams
B
A
DCF
A
C D E
B
G
How things were How things “are” How things work
Shared values and
culture
Transparent goals and
projects
Free flow of
information and
feedback
People rewarded for
their skills and
abilities, not positionE
The Way We Work Has Changed
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We Build Tools, then The Tools Change Us
How Technology Changes Us
Steam Engine - 1874 Telegraph and Electricity -
1882
TRS-80 1977
IBM PC 1981
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We Build Tools, then The Tools Change Us
How Technology Changes Us & What’s Next
Smart Phone 2007 Wearables 2011
Smart Badge 2013
Virtual News 2015
IBM Watson 2013
Amazon Echo 2015
Snap (Chat) 2017
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• 38% of companies believe they will be “fully
automated” within five years.
• In 77% of companies automation results in
“better jobs” and retraining of workers (only 20%
see job reductions).
• 33% expect to retrain people to do more
“essentially human” tasks around robotics and AI
• 50% of companies expect to retrain workers to
side by side with robotics and AI
• In 65% of companies HR is not involved at all.
Automation Has Arrived: Jobs are Changing
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Major Disruption in
Core HR Technology Markets
1
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Shift in Investment toward New HR and Workplace Tools
HR Technology Now A Hot Marketplace
$5.5 Billion in VC Investment in HR Startups
since 2014
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Automate Integrate Engage Empower
1990s-2000s 2004-2012 2012-2015 2017+
Automated Talent
Management
Integrated Talent
Management
Engagement, Fit,
Culture, Analytics
Empowerment,
Performance,
Leadership
Talent Management:
Integrated processes and
systems, Talent as core to HR
and business agenda
People Management:
Focus on culture,
engagement, environment,
leadership, empowerment,
and fit
Systems of
Automation
Practice-driven solutions
Systems of
Engagement,
Productivity-driven
solutions
From Talent Management to People Management
Engage
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The Reinvention of HR Technology
Shift in Focus To The Employee, not HR
• Appification of everything
• Reinventing performance management
• Embedded Analytics
• Feedback and pulse surveys
• Wellness, fitness apps
• AI-based recruitment platforms
• Next generation learning platforms
• Diversity and inclusion products
• Team management tools
• Emergence of Teams, Slack, Workplace, and Gsuite
ERP Vendors Under Pressure
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Benefits &
Compensation
Hiring
Recruiting
E-Learning
Performance
Talent
Network Based
Applications
New Systems of
Engagement
HR Technology Shift in FocusMARKETGROWTH-ADOPTION
2 0 0 0 2 0 1 7P 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 Driven
“Systems of
Engagement”
Apps that
“Make Work Life
Better”
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Shift to Cloud is Losing its Luster
Core HR Technology spending is slowing (41%
say it’s flat)
Clients not fully satisfied: only 21% of
customers say talent systems “always meet
their needs.”
Two biggest growth areas are Learning and
Analytics (37% yty)
Career, succession, onboarding, analytics
hottest functional needs
User satisfaction is 2/3 lower than vendor
satisfaction
Rip and Replace Pace is Slowing
How Will You Upgrade Your HR
Technology?
Sources: 2015 Cedar Crestone survey and 2015 Bersin by Deloitte, Deloitte
Consulting LLP, HR Systems Research
Ris
k
Speed
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Next Generation of
People Management Software
2
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Historic Perspective on Performance and Management
The Evolution of Management Thinking
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)
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Feedback and
Engagement
Reinventing
Performance
Video Based
Learning &
Career
Social
Recognition
Well-Being
Work – Team
Management
2016 and Beyond: A New Set of Disruptive ApplicationsMARKETGROWTH-ADOPTION
2 0 1 6
Pulse
Survey
Text
Analytics
Mobile
Feedback
2 0 2 0
Culture
Assessment
Coaching
Tools
Checkins
with Feedback
Agile, open
goal management
Org Network
Analysis
Recognition
Everywhere
Custom Rewards
Programs
Customer
Recognition
P R O G R E S S I O N O V E R T I M E
Video Learning
Content
Curation
Intelligent
Learning
Career
Planning
Gamification
Accreditation
Well Being
Fitness Tracking
Competitions
Social Sharing
Points
Gamification
Fitness Merges
w/Engagement
Virtual Work
Management
Document
Management
Goal Sharing
Goal Tracking
Communications
Messaging
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Convergence of HR Systems Ahead
Diet
Wellness
Fitness
Challenges
Goal Management
Feedback
Pulse
Survey
Surveys
Engagement Tools
Mobile
Feedback
Customer
Feedback
Check Ins
Personality
Assessment
Performance
Review
Fitness
Monitoring
Health
Behavior Change
Social Recognition
Customer based
Recognition
Community
Circles
Affinity
Groups
Anniversaries
Work Events
Engagement
Analytics
Travel
Time Management
Video Learning
Video Sharing
Gamified
Onboarding
Career
Planning
Training and
Certification
Engagement
Feedback
Performance
Recognition
RewardsLearning
Well-being &
Work Management
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From Application Tracking to Recruitment Success
Reinvention of the Talent Acquisition Market
Applicant
Tracking
Candidate
Marketing
Sourcing
Chatbots, and
AI-Based
Intelligent
Recruitment
Intelligent
sourcing,
AI-based
assessment,
gender bias,
facial
recognition
Onboarding
Manager
Tools
Integrated
Sourcing
?
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New Industrialized Tools
for Performance Management
3
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New Generation Performance Tools Are Here
The New
World of
Performance
Management
Check-ins
Transparent
Goals
Peer
Feedback
Feedback
to Manager
Engagement
Survey
Individual
Assessment Team
Assessment
Continuous
Micro-
Learning
Regular
Evaluation
Integrated
into Workflow
Mobile
App
Annual Process Continuous
Manager-Centric Team-Centric
Hierarchical Multi-Directional
Competitive Developmental
Subjective Data-Driven
Secret Transparent
Single Rating Richer Rating
Vendor
A
Vendor
C
Vendor
D
Vendor
E
Vendor
G
Vendor
FVendor
B
Fundamental Changes Are Enormous
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27 companies that redesigned their process,
found overwhelmingly positive outcomes:
• 100% said conversation quality improved
• 83% said conversation frequency increased
• 90% said employee engagement increased
• 91% say data for evaluation is better
• 96% say tools are easier and simpler
• 77% expect continuous feedback
• 45% are using check-ins to assess managers
• 50% say training process is easier and shorter
• 67% doing feedback quarterly
• 80% expect employees to drive check-ins
Yes, New Models for PM are Effective
• Bersin by Deloitte Proprietary Research, 2017
Ratings Are Not
Going Away, Just
Changing
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Feedback = Performance
Deloitte Feedback Process Helps Drive Performance
1. I am really enthusiastic about the mission of the
firm
2. At work, I clearly know what is expected of me
3. In my team, I am surrounded by people who share
my values
4. At work, I have the chance to use my strengths
every day
5. My teammates have my back
6. I know I will be recognized for excellent work
7. I have great confidence in the firm’s future
8. In my work, I am always challenged to grow
BASELINE
BOTTOM QUARTILE
TOP QUARTILE
1
2
3
4
5
6
7
8
4.4
3.2
4.2
4.0
3.8
3.6
3.4
Pulse Survey items
Questions that Predict High Performance at Deloitte
Source: Deloitte pilots FYs14-15
Questions © Marcus Buckingham Company.
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EmployeeVitality
Business Performance
Cost
Reduction
Labor
Productivity
Retention Productivity Collaboration Team
Performance
Leadership
Health
Monitoring
Employee
Assistance
Medical
Benefits
Fitness
Challenges
Nutrition
Exercise
Sleep
Stress
Sustainable Performance
Recognition
Skills and
Training
Work
Environment
Rewards
Leadership
Management
Clear
Goals
Growth
Opportunities
Drive
Well-being
Self
Discovery
Career
Purpose
Mindfulness
Abundance
Mentality
Positive Thinking
Culture Fit
Family
From Wellness to Well-being to Performance
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Culture and Engagement:
“Always-On” Feedback
4
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The Feedback System
How Does Feedback Work Today?
Engagement
Survey
Senior Management Team
Employees
Line Managers | HR
Performance
Review
Filtering and Cleaning
Time
Per
Year
Feedback is the
Killer App
Feedback Apps
are Everywhere
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Create an Enterprise Feedback Architecture
Integrated
Reporting & Analytics
Sentiment Analysis
Network Analysis
Social Media
Monitoring
Job Boards
& Ads
Employment
Brand
Customer
Satisfaction
Anonymous
Feedback Tools
Pulse Surveys
Annual
Survey
Performance
Check-ins
Exit
Interviews
Performance
Appraisals
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New Generation of Learning
Employees in Charge
5
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Video is now >55% of all internet traffic
and mobile is now over 60%
(KP Internet Trends 12/2015)
35 Million people have enrolled in
MOOCs in the last four years, with 2015
enrollments doubling 2014 (Class Central)
Over 50% of learners use mobile for
more than 1/3 of their learning (Degreed)
India is estimated to be a $3-4 billion
market for corporate learning and MOOCs
Expert and user-authored video is taking over
The Net-
Promoter
Score for L&D
is now -8
And lower
for non L&D
professionals
Video and Mobile is Taking Over Learning
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We are here
E-Learning
& Blended
Evolution of L&D Has Been Blindingly Fast
1998-2002 2005 20172010
Self-Study
Online Learning
Course Catalog
Online University
2020
Intelligent
Learning
Intelligent,Personalized,
MachineDriven
Instructional Design
Kirkpatrick
LMS as
E-Learning Platform
Talent
Management
Career Focused
Lots of Topics
Learning Path
Career Track
Blended Learning
Social Learning
LMS as Talent
Platform
Digital
Learning
Everyone, All the Time,
Everywhere
Micro-Learning
Real-time Video
Courses Everywhere
Design Thinking
Learning Experience
LMS invisible
Data Driven, Mobile
Continuous
Learning
Learning On Demand
Embedded Learning
Video, Self-Authored
Mobile, YouTube
70-20-10
Taxonomies
LMS as Experience
Platform
Formats
Philosophy
Users
Systems
© Bersin by Deloitte
From E-Learning to Digital Learning In One Generation
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Career Models In Disruption
58% of companies are
redesigning or planning to
redesign their career model
83% of companies expect to
have an “open” or “highly
flexible” career model within
the next 3-5 years
While 33% of companies
promote vertical career
moves, 67% now promote
horizontal or project based
career progression
31% of companies expect
careers to be 3-5 years long
60% expect them to be 10
years or less
Learning and career
management software is the
#1 fastest growing segment in
HR technology
(CedarCrestone 2017)
Cedar Crestone, 2017
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Result: Explosive Growth In MicroLearning
Content is everywhere, But How to Manage It All
Micro-Learning Macro-Learning
I need help now. I want to learn something new.
• 2 minutes or less
• Topic or problem based
• Search by asking a question
• Video or text
• Indexed and searchable
• Content rated for quality and utility
• Several hours or days
• Definitions, concepts, principles, and
practice
• Exercises graded by others
• People to talk with, learn from
• Coaching and support needed
Is the content useful and accurate?
Is the author authoritative and
educational?
Videos, articles, code samples, tools Courses, classes, MOOCs, programs
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How Can We Redesign Learning For Work?
New on the Job Seasoned Expert
PaceofLearning
Normal
Great
Bad
Macro
MacroMicro
Micro
Micro
Micro
Micro
Credential
Coach
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The Learning Tech Market Starting to Shake Out
Learning Experience
Platforms
Program Experience
(Delivery) Platforms
Micro Learning
Platforms
LMS Platforms
Assessment, Development,
Delivery Tools
Content Libraries
Learning
Record Store
© Bersin by Deloitte
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Major New Learning Announcements
No, the LMS is Not Dead After All!
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LEARNER
or
TEAM
• Employee Generated
• Validated
• Experiences
• Books
• Videos
• Podcasts
• Articles
Credentials
• Partner MOOCs
• MOOCs
• Classrooms
Moments
• Collections with exercises,
activities, points for
reflection
• Simulations
Collections
Integration &
Practices
• Mentors
• Reverse-Mentors
• Coaches
• Faculty
• Experts
• Critical Topics
• Critical Paths
• Academies and Colleges
• Campus
Experiences
User
Generated
Places
People
• Roles
• Competencies
• Evolving skills
The New World of Corporate Learning
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People Analytics
Now Mandatory but New
6
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2017: Where People Analytics Is Going
Interesting
Experiments,
Models, and Studies
Practical, Useful
Dashboard and
Tools
Projects Based on
Problems and
Strategies
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Progress Steady and Accelerating
% Change
Plan
Performing multi-year
workforce planning
+ 23%
Correlate
Correlating people data
to business performance
+ 56%
Predict
Using people data to predict
business performance
+ 50%
Deloitte Global Human Capital Trends, 2016 and 2015
Percent Change in Companies Excellent or Good, 2015-2017
% of Companies “Good or Excellent” Increasing
(Deloitte Human Capital Trends 2017)
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But… new types of data, and new issues arise
Markets Converge: Text Analysis | Sentiment Analysis | Organizational Network Analysis | Feedback Systems
8% of companies are now doing
some form of Organizational
Network Analysis (ONA)
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Emergence of “Relationship Analytics”
Organizational Network Analysis (ONA)
Teams Organizations The
Enterprise
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AI Applied to Recruitment and Selection
Video Intelligence Becomes Real
Source: https://www.fastcompany.com/3064863/election-2016/watch-
this-ai-platform-assess-trumps-and-clintons-emotional-intelligence
• Video interviewing now nearly
mainstream, as many as 40% of
interviews are done digitally
• AI software (such as HireVue) can
now detect race, emotion, gender,
and tendency to exaggerate or lie
through video
• While use of this data is not legally
defensible yet, companies are
actively using this data to select
candidates
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AI, Analytics, Sentiment, and Organizational Network Analysis
likely to Converge
AI Based Diversity, Coaching, Recruitment Systems
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Design Thinking and
Conversational HR
7
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believe internal
processes for
collaboration are
working well
believe their
employees are fully
aligned with the
corporate purpose
23%
14%
are excellent at building
a differentiated
employee experience
22%
are using design
thinking as part of
crafting the
employee
experience
10%
Source: Deloitte and Facebook, “Transitioning to the future of work and the workplace,” November 2016
38%
Say problem is
urgent
Culture, Engagement, and Beyond
Focus on the Employee Experience
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The Simply Irresistible Organization®
What we have learned: an integrated approach is key
Meaningful
Work
Supportive
Management
A positive work
Environment
Growth
Opportunity
Trust in
Leadership
Autonomy Clear and transparent
goals
Flexible work
environment
Training and support
on the job
Mission and purpose
Select-to-fit Coaching Humanistic workplace Facilitated talent
mobility
Continuous
investment in people
Small, empowered
teams
Investment in
development of
managers
Culture of recognition Self-directed,
dynamic learning
Transparency and
honest
Time for slack Agile performance
management
Fair, inclusive, diverse
work environment
High-impact learning
culture
Inspiration
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Example: Design Thinking Comes to HR
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Employee Experience: A Journey
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Major New Learning Announcements
Conversational HR Arrives
Learning
Goals
Self-
Service
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Bottom Line: The HR Technology Market is Reinventing Itself
54. About Deloitte
As used in this document, “Deloitte” means Deloitte Consulting LLP, a subsidiary of Deloitte LLP. Please see www.deloitte.com/us/about for a
detailed description of our legal structure. Certain services may not be available to attest clients under the rules and regulations of public
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This publication contains general information only and Deloitte is not, by means of this publication, rendering accounting, business, financial,
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affect your business, you should consult a qualified professional advisor. Deloitte shall not be responsible for any loss sustained by any person who
relies on this publication.
Copyright © 2017 Deloitte Development LLC. All rights reserved.
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