2015 Top 10 Human Capital and HCM Technology …€¦ · 2015 Top 10 Human Capital and HCM Technology Trends (Partner Version) Confidential – SAP Partner Use Only The Talent Battle

2015 Top 10 Human Capital and HCM

Technology Trends

(Partner Version)

Confidential – SAP Partner Use Only

The Talent Battle The Increasing

Skills Gap

The Leadership

Pipeline Conundrum Maximizing the

Millennial Differences

Employee Engagement

Reaches Critical Low

Digital Radically

Disrupts HR

Analytics Drive HR

The New Contingent

Workplace Experience

The Learning

Management Revolution

HCM Suite’s

Become the Norm

Disclaimer

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SAP shall have no liability for damages of any kind including without limitation direct, special, indirect, or consequential damages that may result from the use of these materials. This limitation shall not apply in cases of intent or gross negligence. The statutory liability for personal injury and defective products is not affected. SAP has no control over the information that you may access through the use of hot links contained in these materials and does not endorse your use of third-party Web pages nor provide any warranty whatsoever relating to third-party Web pages.

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© 2015 SAP / Competitive and Market Intelligence Confidential – SAP Partner Use Only

Executive Summary

© 2015 SAP / Competitive and Market Intelligence

Many HR organizations are looking to modernize core operational HR areas in order to help transform

their organizations to focus on being a strategic differentiators in their business. In order to do so, HR

organization must manage begin to embrace analytics, cloud and the digitization of foundational HR

processes.

SAP needs to continue establishing and exert its leadership with SuccessFactors’ ability to offer the

most modern and fully integrated extensible HCM Suite to meet HR growing strategic demands.

CMI is predicting that as human capital trends such as The Talent Battle, Growing Skills Gap,

and dramatically low Employee Engagement will force HR to invest in technology solutions

such as HR Analytics, Digital HR technology and New HCM Suites, which will help

modernizing HR and help solve critical business needs.

SAP will need to closely follow these trends as they materialize into tangible demand-side

opportunity in order to maintain its innovation edge and defend market share from competitors.

The HR technology landscape is exploding with growth and innovation. The result: We are seeing

one of the most tumultuous times ever in the evolution of the HR technology market as processes,

products, and people are radically being disrupted.

SAP should clearly define and communicate its strategy, positioning the SuccessFactors offerings as

a foundational and strategic HCM offering which will help modernize HR Organizations.



Skills Gap

The Leadership



Employee Engagement


HCM Suite’s Become the Norm Buyers seek replacements for HRIS, a better end-user

experience, faster technologies, improved integration across

talent platforms and improved analytics

The New Contingent Workplace Experience Contingent workforces become the new normal, forcing

employers to offer more flexible and dynamic models to

manage people

The Learning Management Revolution Traditional employee training is being revolutionized and

an explosion of content delivered over a variety of new

online and mobile platforms

Analytics Drive HR Transformation and change drives HR Analytics to inform

future business strategy

Digital Disrupts HR Staying ahead of digital disruption is a critical requirement for

HR leaders to ensure employee engagement, enable talent

and recruiting and to drive future business strategies

Top Five HCM Trends Top Five Human Capital Trends

The Leadership Pipeline Conundrum An urgent need exists to develop leaders at all level of the

organization

Top Trends for 2015


1

2

3

4

6

7

8

9

5

Critically Low Employee Engagement Information overload and the always-connected 24/7 work

environment are overwhelming workers, undermining productivity

and contributing to low employee engagement

Maximizing the Millennial Differences Managing the often conflicting views and needs of a diverse

workforce is a challenge for many organizations.

The Talent Battle Globalization, technology, social media, changing workforce

expectations, and the shrinking half-life of skills and technical

knowledge are significantly affecting talent acquisition strategy

The Increasing Skills Gap Skills are now currency; corporate learning takes on increasing

importance as increased specialization of workforce skills has

directly impacted the whole economy

10

Digital Radically

Disrupts HR

Analytics Drive HR

The New Contingent


The Learning


HCM Suites

Become the Norm



Sources: 1 PWC – “17th Annual Global CEO Survey” Oct 2014 2Deloitte – “Talent Acquisition Revisited” – Mar 2014 3Deloitte – “Human Capital Trends 2014 Survey” – Mar 2014

The Talent Battle

• 93% of CEO’s recognize the need to make a change in their strategy for

attracting and retaining talent, but 61% haven’t yet taken the first step

• 60% of companies have updated or are currently updating and revamping

their talent sourcing strategy, and another 27% are considering changes

• In talent acquisition, learning, talent management, and technology

innovation is driving growth.

• Almost 50% of the hiring managers and human resource professionals

review social media content of candidates, providing a good sense of

whether the candidate would be a fit within the company

• Several vendors, including SuccessFactors, Ultimate Software, and

Workday, have recently announced increase solution offerings around

candidate engagement and talent sourcing

Globalization, technology, social media, changing workforce expectations, and the shrinking half-life of

skills and technical knowledge are significantly affecting talent acquisition strategy

2015 HR/HCM

Trends The Talent Battle The Increasing

Skills Gap

The Leadership

Pipeline Conundrum

Maximizing the

Millennial Differences Employee Engagement


Digital Radically

Disrupts HR Analytics Drive HR

The New Contingent


The Learning


HCM Suites

Become the Norm


The Increasing

Skills Gap


Sources: 1Forbes - 10 Trends Driving The Mandate For Modern HCM- Dec 2013 2Jobvite – “2014 Job Seeker Nation Report”” – Nov 2013; 3SAP.com 4Gallup – “State of the Global

Workplace” – Oct 2013 5Glassdoor - 50 HR & Recruiting Stats That Make You Think – Jun 2014

• Almost 50% of the jobs we have today will likely be totally eliminated in the

next 10 years as technology radically defines the new working life

• Currently, 46% of executives confirmed that a skills gap persists for their

business

• Among executives who have or anticipate a skills shortage; 41% said it is

because they cannot attract candidates with the skills needed to their

industry; 38% would hire more people if they were getting qualified

candidates; 26% cannot pay what candidates want; and 19% did not

anticipate the skills they would need

• Consequences of skills gaps; 69% believe that a lack of critical skills will

result in increased operating costs. Two-thirds anticipate a loss of business

to competitors; and 64 percent expect an impact both on revenues and on

reaching revenue growth objectives

Skills are now employer currency; corporate learning takes on increasing importance as increased

specialization of workforce skills has directly impacted the whole economy

The Skills Gap

2015 HR/HCM

Trends The Talent Battle The Leadership

Pipeline Conundrum

Maximizing the



Digital Radically

Disrupts HR

Analytics Drive HR

The New Contingent


The Learning


HCM Suites

Become the Norm


http://www.sap.com/pc/analytics/predictive-analytics.html


Sources: 1Gallup – “State of the Global Workplace: Employee Engagement Insights for Business Leaders Worldwide” – Oct 2013; 2CareerBuilder – “Number of Employers Passing on

Applicants Due to Social Media Posts Continues to Rise” – Dec 2013, 3Deloitte – “Human Capital Trends 2014 Survey” – Mar 2014 4Jobvite – 2014 Jobvite Job Seeker Nation Study

2015 HR/HCM

Trends

Employee Engagement Reaches Critical Lows

• Worldwide only 13% of employees are “highly engaged” in their jobs,

while 63% are “disengaged”

• More than two-thirds of all organizations believe that their employees

are “overwhelmed” with too much information, too many projects, too

many meetings and phone calls, and an always-on 24/7 work

environment

• 51% of employed workers are either actively seeking or open to a

new job

• Solutions that embed social, mobile, native SaaS, and analytics

technology are better able to adapt to changing paradigms for

employee engagement, talent sourcing, performance, rewards, and

informal learning

Information overload and the always-connected 24/7 work environment are overwhelming workers,

undermining productivity, and contributing to low employee engagement


Skills Gap

The Leadership

Pipeline Conundrum

Maximizing the



Digital Radically

Disrupts HR

Analytics Drive HR

The New Contingent


The Learning


HCM Suites

Become the Norm


The Leadership

Pipeline Conundrum


The Leadership Pipeline Conundrum

Companies face an urgent need to develop leaders at all levels—from bringing younger leaders online

faster to developing leaders globally to keeping senior leaders relevant and engaged longer

Source: 1Deloitte – “Global Human Capital Trends 2014: Engaging the 21st-century workforce ” – Apr 2014; 2IDC – “Building a Successful CMO + CIO Relationship” – Sep 2013, IDC – “IDC

2014 Predictions: CIO Agenda” – Dec 2013; 2IDC – “Building a Successful CMO + CIO Relationship” – Sep 2013, [Source: IDC – “IDC 2014 Predictions: CIO Agenda” – Dec 2013; 2IDC –

“Building a Successful CMO + CIO Relationship” – Sep 2013

• 83% of companies are worried about their leadership pipelines while

fewer than 33% have formal succession plans at all levels but the top

• 66% of companies believe they have “weak” capabilities when it comes

to providing focused leadership programs for millennials. Further, 58%

of executives reported “weak” capabilities in “providing programs for

younger, older, and multi-generation workforce”

• Only 14% of leaders believe they have enough “ready now” successors

and fewer than 50% of all CXOs feel that they are receiving any

development to help them to move into top executive positions

• Evolv (acquired by Cornerstone), Good.co, IBM/Kenexa, and Kaisen

are combining traditional assessment with Big Data and “social sensing”

to better understand the relationship between skills, personality, and

organizational culture to help solve this issue

2015 HR/HCM


Skills Gap

Maximizing the



Digital Radically

Disrupts HR

Analytics Drive HR

The New Contingent


The Learning


HCM Suites

Become the Norm



Maximizing the Millennial Differences

Managing the often conflicting views and needs of a diverse workforce is a challenge for

many organizations as changing views of disrupt long held generational standards

• The millennial generation will make up 34% of the global workforce, the

largest portion of any age segmentation, and will swell to 75% by 2025

• 27% of millennials are already managers, and in 10 years, 47% want to

be managers or senior managers

• Most baby boomers (41%) said workers should stay with an employer at

least five years before looking for a new job; only 13% of millennials

agreed and 58% of millennials plan to leave their jobs in three years or

less

• 60% of millennials consider the most attractive perk to be growth

opportunities, while 46% left their last job due to lack of career growth

Sources: 1Elance Odesk: The 2015 Millennial Majority Workforce” Oct 2014 2Indeed: One in Every Two Job Searches Is Now on a Mobile Device – Jun 2014 3Glassdoor - 50 HR &

Recruiting Stats That Make You Think – Nov 2014 4Glassdoor - 50 HR & Recruiting Stats That Make You Think – Jun 2014

2015 HR/HCM

Trends

PwC’s 14th Annual Global Survey claims that

the millennial generation is becoming more

valuable as they continue working to support

the older generations as life expectancies

increase. Recruiting and retaining a younger

workforce is a big challenge for CEOs.


Skills Gap

The Leadership

Pipeline Conundrum

Maximizing the



Digital Radically

Disrupts HR

Analytics Drive HR

The New Contingent


The Learning


HCM Suites

Become the Norm



Source: 1Bersin by Deloitte — Talent Analytics in Practice – Oct 14 2Bersin by Deloitte – High-impact talent analytics: Building a world-class HR measurement and analytics function” Oct

2013 – TE007-000719 3 Corporate Executive Board - Your Corporate Strategy is Your Talent Strategy – Oct 2013

• HR is evolving into a data-driven function, with the focus shifting from simply

reporting data to enabling the business to make informed talent decisions,

predict employee performance, and conduct advanced workforce planning

• 86% of companies report no analytics capability in the HR function, compared

to 81% of companies that utilize analytics in finance, 77 % in operations, 58%

in sales, and 56% in marketing

• Only 4% of large organizations have any ability to “predict” or “model” their

workforce; but more than 90% can model and predict budgets, financial

results, and expenses. The problem is not “lack of skills,” it is more a historic

problem of lack of investment, poor data quality, and an underfunded talent

analytics team

• Recently, Ceridian announced Dayforce Dashboards, Cornerstone

OnDemand announced it acquired machine learning and data science

platform, Evolv Inc. and IBM announced IBM Kenexa Talent Insights,

powered by Watson Analytics

2015 HR/HCM

Trends

Analytics-Driven HR

Transformation and change drives HR Analytics to inform future business strategy


Skills Gap

The Leadership



Employee Engagement


Digital Radically

Disrupts HR

Analytics Drive HR

The New Contingent


The Learning


HCM Suites

Become the Norm



Digital Disrupts HR

Sources: 1Forbes – “Top 10 Disruptions in HR Technology” – Oct 2014 2Deloitte – “HR Technology for 2015: Ten Big Disruptions Ahead” – Nov 2014 3Indeed –One in Every Two Job

Searches Is Now on a Mobile Device– Jun2014

Staying ahead of the digital curve is a critical requirement for HR leaders to ensure

employee engagement, enable talent and drive recruiting

• Employees are now two to five times more likely to access HR

applications on their smartphones than on a PC meaning HR

systems need to be mobile first, interactive and easy to use

• Almost 50% of job seekers globally now search and apply for

jobs using a mobile device

• Younger workers expect mobile access and view an employer

without mobile savvy as a Luddite, making it difficult for such

employers to attract and hire young talent

• Besides the typical recruiting functions that have been mobile

enabled such as candidate job application, vendors like HireVue

and Montage are offering video interviewing via mobile device

2015 HR/HCM


Skills Gap

The Leadership



Employee Engagement


Digital Radically

Disrupts HR

Analytics Drive HR

The New Contingent


The Learning


HCM Suites

Become the Norm



HCM Suite’s Renews Itself

• One in four organizations plans on replacing a current HRIS system in the

next 12 to 18 months. Of these, 14% of global companies are looking to

replace their HRIS/HRMS. Twenty percent indicated that they will replace

their talent management applications with an integrated suite

• 75% of suite-seekers want integrated learning and development, performance

management, recruiting, and onboarding to simplify their IT landscape

• The ability to integrate with other talent and business applications and

improving user experience are the key driver for those moving from

standalone applications to a suite

• The expansion of talent management and recruiting offerings natively built

within core HRMS platforms continues with Ceridian HCM Dayforce, Ultimate

Software, and Workday having all introduced new recruitment capabilities within their SaaS HRMS platforms

Buyers seek replacements for Human Resource Information Systems, a better end-user experience,

faster technologies, improved integration across talent platforms, and improved analytics available in

the cloud

Source: Deloitte - Managing Talent through Technology: HCM Buying Trends in 2013 – Apr 2013 “Using a plan-build-run organizational model to drive IT infrastructure objectives”

2015 HR/HCM


Skills Gap

The Leadership



Employee Engagement


Digital Radically

Disrupts HR

Analytics Drive HR

The New Contingent


The Learning


HCM Suites

Become the Norm



The Learning Management Revolution Traditional employee training is being revolutionized and an explosion of content delivered over

a variety of new online and mobile platforms

• More than 66% of companies see Corporate Learnings “urgent” or “important,” yet

only 6% believe they have mastered the content and technology capabilities

needed to make online learning an accessible tool and a compelling experience for

their employees

• Executives are continuing to use new methods of delivering training to employees.

42% use mobile delivery for training; 35% use social media; 27% use massive open

online courses (MOOCs); and 13% use gamification

• MOOCs and content marketplaces (such as Udacity, Udemy, NovoEd, Lynda.com,

and Open Sesame) have contributed to an explosion in availability of high-quality,

low-cost content (MOOCs are now delivering as many enrollments as corporate

training content around the world)

• LMS providers are starting to deliver Big Data analytics to provide learning

recommendations and smart learning paths for employees (Skillsoft, SumTotal,

SAP, IBM, and Saba have all announced solutions)

Sources: 1IDC “Worldwide and U.S. Human Capital Management Applications 2014–2018 Forecast”, May 2014 2Accenture – 2013 Skills and Employment Trends– Dec 2013 3Center for

Learning & Performance “Learning in the Workplace Survey” – Jun 2014

913

1,297

+9%

2014 2018

2015 HR/HCM

Trends

IDC’s Worldwide LMS Applications

Market (in $M)


Skills Gap

The Leadership



Employee Engagement


Digital Radically

Disrupts HR

Analytics Drive HR

The New Contingent

Workplace Experience The Learning


HCM Suites

Become the Norm



The New Contingent Workplace Experience

Sources: 1PWC – “The Talent Challenge : Adapting to growth” – Sep 2014, 2Deloitte – “Prehire Assessments: A Four-Step Model” – Apr 2013 3SHRM– “Recruiting and Attracting Talent” –

2013 4The CBI Group – “Trends of the Contingent Workforce A 21st Century Reality” – 2013

Contingent workforces become the new normal, forcing employers to offer more

flexible and dynamic models to manage people

2015 HR/HCM

Trends

• 83% of organizations are increasing their part-time, contingent, or

contractor workforces

• Experts believe that nearly 50% of the U.S. workforce may be

contingent within the next five years

• 40% of organizations indicted that they have low visibility into the total

picture of use of non-employee workers and only 20% of organizations

have robust measures in place for tracking and forecasting the quality

of projects and services delivered by these workers

• New modules and systems to manage contract, contingent, and part-

time workers as “talent,” not just “expense” so that we can onboard,

develop, manage, and engage with the one-third to one-half of our

workforce who are not full-time salaried employees. This includes

software tools to help in optimizing hourly workers using analytics


Skills Gap

The Leadership

Pipeline Conundrum

Maximizing the



Digital Radically

Disrupts HR

Analytics Drive HR

The New Contingent


The Learning


HCM Suites

Become the Norm


© 2015 SAP / Competitive and Market Intelligence Confidential – SAP Partner Use Only

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2015 Trends

Documents

2015 Top 10 Human Capital and HCM Technology …€¦ · 2015 Top 10 Human Capital and HCM Technology Trends (Partner Version) Confidential – SAP Partner Use Only The Talent Battle