Bersin by Deloitte HR Trends Report Overview 2016

Global Human Capital Trends 2016

The new organization: Different by design

March 2016

One of the largest-ever HR and talent studies

Unless otherwise cited, all data referenced in this presentation is from the Global Human Capital Trends 2016 report.

7,000+Business and HR leaders

130countries


Demographic upheavals: Millennials make up more than half the workforce, and Boomers are working into their 70s and 80s.

Digital technology is everywhere: Technology is disrupting business models and radically changing the workplace and how work is done.

Rate of change has accelerated: Business must become more agile to keep up with the rapid pace of change.

New social contract between companies and workers: Younger workers demand rapid career growth, compelling and flexible workplace, and a sense of purpose at work.

Disrupting the workforce landscape

Organizational design: The rise of teams


Culture: Shape culture, drive strategy

Design thinking: Crafting the employee experience

Digital HR: Revolution, not evolution

HR: Growing momentum toward a new mandate

People analytics: Gaining speed

Learning: Employees take charge

Engagement: Always on

Leadership awakened: Generations, teams, science

The gig economy: Distraction or disruption?

Percent rating trend important

Importance of Human Capital trends to business

Organizational design

Leadership

Culture

Engagement

92%

89%

86%

85%

Learning

Design thinking

Skills of HR organization

People analytics

Digital HR

Workforce management

77%

74%

71%

84%

79%

78%

% very impor tant

2016

56%

57%

54%

48%

44%

39%

36%

36%

32%

28%

% very impor tant

2015

…

50%

50%

39%

…

39%

29%

…

…

SHAPE CULTUREDrive strategy

ORGANIZATIONAL DESIGN The rise of teams

LEADERSHIP AWAKENEDGenerations, teams, science

ENGAGEMENTAlways on

LEARNINGEmployees take charge

Succession Planning and Talent Review help identify key talent and strengthen leadership pipelines. Workforce Reputation can further identify SMEs and strategically partner people into meaningful mentor relationships.

Kudos / Competitions / Compensation and Work Life apps allow organizations to define their workforce’s reward structure to encourage and enable appropriate values and culture.

My Wellness / My Reputation / Oracle Social Network enable engagement within the organization through the concepts of networking and gamification.

Learning Management / Career Development change the face of on-demand learning and help employees to own their careers.

Matrix Management and a flexible Workforce Structure design allows organizations to fluidly group workers into diverse teams, as well as enable an effective pay for performance strategy by collecting inputs from different team leaders. Embedded social functionality allows teams to make relevant goals and track progress collectively.

Global Human Capital Trends Oracle HCM as the Enabler

DESIGN THINKINGCrafting the employee experience

HRGrow momentum to a new mandate

PEOPLE ANALYTICSGaining speed

DIGITAL HRRevolution, not evolution

THE GIG ECONOMYDistraction or disruption?

Enabling Employees and Managers to perform simplified transactions allows HR to focus on being a strategic business partner to the business and find the right talent for the key roles.

Enterprise and embedded analytics analyze data across multiple systems and processes providing key insights to front line leaders giving them access to the data they need to make proactive decisions.

Easily view real-time data and make HR transactions using a variety of platforms that allow access anytime, anywhere. Oracle’s “app” user experience make the experience more intuitive and in less clicks.

Workforce Management and Contingent worker management enables tracking of all types of personnel within any global organization by accommodating legislative regulations while offering the flexibility to capture specific business need.

Simplified workflows, dashboards, and analytics make it easy to simplify and customize the user experience. Leveraging Oracle’s flexible security and personalization structure provides an enhanced personalized view.

Global Human Capital Trends Oracle HCM as the Enabler


The rise of teamssay the trendis “very important”or “important” 92%

of large companiesare organizedfunctionally today

25%OnlyShift from top-

down hierarchy to a network of

teams to deliver results faster

are reorganizingor plan to this year

feel expert at building cross-functional teams

believe their companies are very ready to effectively redesign their organizations

understand the way their people work together in networks

21%

14%

12%

83%

Shared values and culture

Transparent goals and projects

Free flow of information and feedback

People rewarded for their skills and abilities,

not position


A network of teams

BA

DCF

A

C D E

B

G

How things were How things “are” How things work

E

Oracle HCM as the Enabler

Organization Design

Matrix ManagementAllows you to track multiple types of managers for employees, such as team leads, project managers, and counselor relationships

Organization StructureThe ability capture multiple types of workforce structures enables organizations to group workers into diverse teams, as well as enable an effective pay for performance strategy by collecting inputs from different team leaders

Work TeamsSocial HCM and Workforce Reputation Management enables teams to communicate and share goals, as well as track mentors and influences across the enterprise

Culture

Shape culture, drive strategy

Senior leaders must work with HR to align culture to business goals

Culture helps bind people

together and can drive execution and consistency

say the trendis “very important”or “important” 86%

believe “culture is a potential competitive advantage”

believe they understand their culture well today

believe they have the “right culture”

28%

19%

82%

Engagement

Always onsay the trendis “very important”or “important” 85%

Engagement is shifting from

once per year to an always on

employee listening process of organizations still

measure employee engagement only once a year

64%

Despite the emergence of many tools for frequently evaluating employee sentiment,

11%

4%

are excellent at providing programs for young, old, and multi-generational workforce

believe they fully engage Millennials and other generations

The relationship between culture and engagement


Culture and Engagement

My WellnessWellness gives employees them up-to-date information about their activities in a glance, and Let them choose whether to only track activities, set wellness goals, and/or enter competitions

My CompetitionsCompetitions align individual motivations and behaviors to business outcomes by allowing the organization to run contests so employees can better complete work assignments

Social HCMSocial HCM brings the entire enterprise together to help foster relationships and information sharing across the organization

People analytics

Gaining speed

of companies are “ready” for people

analytics, up 1/3 from last year

32%of companies report replacing core HR systems over next

two years

40%


People analytics brings

together HRand business

data Challenge will

be to transform insights into

business value

are now using HR data to predict and improve workforce performance51%

feel they are conducting multi-year workforce planning48%


People Analytics

Embedded AnalyticsEmbedded analytics across the application give employees and managers the ability to see the information they need from within a transaction

BI Cloud ServiceEnterprise analytics analyze data across multiple systems and processes providing key insights to front line leaders giving them access to the data they need to make proactive decision

Predictive AnalyticsProvides managers with proactive insight to their top performers and people likely to leave the organization, helping them to take proactive steps to prevent issues and impacts that result from voluntary turnover.

Digital HR

Revolution, not evolution

Digital HR brings together SMAC technologies to

improve the employee and candidate

experience


Digital HR increases employee

engagement —some report 10X more responses

20%

59%

are deploying HR mobile apps today

are developing mobile apps for HR transactions

Fewer than

of companies are “very ready” for digital HR

9%

Only


Digital HRMobileAccess to the Cloud is available through any device with a unified user experience across all platforms. This gives employees and managers the ability to access the functionality they need anytime, anywhere

Work Life / SocialAlign individual motivations and behaviors to business outcomes by allowing the organization to run contests

Analyze talent reputation within social communities and among peers

Communicate throughout the application, from groups, and share information across the enterprise

2016 will be a disruptive year, as new models of

management, open feedback, new HR

platforms, and organization design

take center stage for the human capital agenda

A year of change and disruption

The digital world of work has disrupted

the way we operate, enabling

an "always-on" organization, focused

on culture, engagement,

open communication, and feedback

HR leaders are responding rapidly, focused on analytics,

design thinking, employee-driven

learning, and digital HR

A new breed of leaders is emerging:

Younger, more connected, more

agile, always learning, developed

through science

A new organizationa has emerged, a

"network of teams," forcing companies to reorganize, redesign roles and rewards,

redefine careers, and change the role of

management

Enabling this organization, talent focus is focusing on

the employee experience, influenced by

design thinking, the app economy, and transparency

This publication contains general information only and Deloitte is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may 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.

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 the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.

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Bersin by Deloitte HR Trends Report Overview 2016