What forces are shaping the future of HR?

The Future HR
Mercuri Urval Research Study
February 2012
“
It’s all about people.
Forces shaping the future of HR:
  Big Picture
  Executive Opinions
  Voice of the business
  Future contribution of HR
Our research
Statistical Office of the European Union
Pews Research Centre (US)
BCG / World Economic Forum
European Association for People Management
Mercuri Urval Research Unit
S4k Research Partners
Global HR Leadership Forum; 15 global HR SVPs and Directors
hosted by Mercuri Urval in March 2012
  Research Insights
  Analysis of customer requests
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Work Force Macro Trends
The challenge of higher demand and fewer available talents.
By 2030, Western Europe needs an additional 45 million employees.
Far more than current growth rates predict. Supply and demand shift
and power transfers.
The implications are:
  Difficult to hire talent
  Global mobility increases
  Successful companies fill more
senior positions internally
  Candidate attraction market
  Optimizing the ‘sub-optimal
employee’
  Motivating and keeping the
empowered employee
No of
Employees
Retirements
Capability
Break-even
Capability Gap
Entrants
2000
2015
Source: AMS EUROPEAN
UNION (EU-15)
2030
Technology development accelerates
Generation ‘Y’ becomes the work force and globalized teams takeover
This results in:
  Reduced barriers to competition
  Increased value contribution of employee
relatives to product
  Remote and virtual working the ‘new
normal’ (globally)- new leadership challenges
  Criticality of social media and the new digital
generation of leaders (80% of 16-24yr old are
active daily)
  New service possibilities and business needs
Movement of Job Creation
Where will the jobs be created in the future?
From 2003 to 2008, the 50 largest global companies based in Europe
lost 300 000 roles in their domestic markets and recruited 500 000
abroad. Primarily in the BRIC economies and the second wave of rapid
growth economies “The Next 11” there is an emergence of highly
skilled workers and jobs.
The implications for HR functions relate to:
  The global leader, manager, & HR person
  Knowledge companies (R&D and skills based)
  Diversity that reflect customers and markets
  Rapid in A-Pac and LatAm
  Global emergence of the Chinese work ethic
and investment
The Voice of the Business
Mercuri Urval Survey BCG Survey (2000+) 1. Leading Change 1. Managing Talent (talent 1. From social media to pools and succession) mobile pla<orm 2. Customer Focus and Understanding 2. Leader development (the 2. Intense niche talent most important capability shortages in 2012 building focus) 3. Performance Management 3. HR as a strategic partner 3. Employee turnover (only if HR responses are increases included!) 4. Profitable Growth 4. Strategic workforce planning (longer term supply and demand models) (c1500 in 27 companies) 5. Becoming one Company 5. Enhancing Employee engagement ERE 2012 PredicBons John Sullivan (Fortune 500 Talent Adviser) 4. Serious data driven social media and online focus 5. Remote working takes off Executive Opinions
“Maintaining and strengthening our culture through acquisition –
growing and ‘staying small”
“Getting the people part of business transformation right”
“Cost effective matching of the right people to the right roles, especially
for critical functions”
“Fair, transparent and involved method for making key people decisions”
“Building strength in depth and aligning people around a common
transformational agenda”
“Making the right decisions about people – based on analysis not opinion”
“Identifying what leadership capability we really need. Global
resource quality. Succession and future proofing”
Six Fundamental HR Competency Domains
The 2012 or sixth round of the HR Competency Study identifies six fundamental
competency domains that HR professionals must demonstrate to impact
business performance. Participation in the study has far exceeded our
expectations, with over 20,000 surveys in our data sample. This is by far the
largest and broadest data set of any round of the HR Competency Study since
it began in 1987.
These factors address a number of themes facing global business today:
  Outside/in: HR must turn outside business trends and stakeholder expectations
into internal actions that drive performance
  Business/people: HR must focus on both business results and human capital
improvement;
  Individual/organizational: HR should target both individual ability and
organization capabilities
  Event/sustainability over time: HR is not about an isolated activity (a training,
communication, staffing, or compensation program) but sustainable and
integrated solutions.
  Past/future: HR should respect the heritage of organizations, but also shape the
future
  Administrative/strategic: HR must attend to both day-to-day administrative
processes and long-term strategic practices; it’s not one another, but both.
Conclusion: The Top 5 Challenges for HR
Top 5 Quests
How to make yourself diversely
attractive?
Attracting and keeping emerging
‘digital’ talent while keeping experience
Which leaders actually create
results ?
Developing leaders to succeed – as
individuals and as a organisational
capability
Who needs to do what, for who
and where?
Building and deploying HR expertise
locally and centrally
How to lead ‘the business’?
Strategic and commercial workforce
planning (Outside and In, business
and people)
What is an elegant & efficient
delivery model ?
Simple and easy core process –
integrated and sustainable
Considering the Top 5 Challenges for HR
How to make yourself attractive?
  The best choice for the talent you need. When that talent is by definition diverse, in all aspects.
Who you can attract is the new selection? How to communicate, create networks and share
ideas? Why do 750million people spend more than face book for half an hour each day? Build
Vs. buy, building competence might be the way to get through the scarcity? High performing
companies (measured on growth and profit) fill 60% senior roles themselves, low performers 20%
Leaders creating results?
  All Business and HR surveys reviewed rate understanding the demands of future leaders as
critical. Increased complexity combined with increased focus on execution are clear themes. The
best leaders will need to learn to continuously keep ahead of change and turn it to there
advantage?
What types of HR professionals and where?
  Google hire – 1/3 specialists, 1/3 HR, 1/3 management consultants. Over centralisation as a
threat to customer delivery?. Where to centralise and what to centralise?
How to lead the business?
  You can’t be a partner if you can’t deliver the day job? Partnerships are forged in working through
adversity and being active together? It is a behaviour and a concept, but mostly it is an action?
Demographic trends suggest even adequate performers are getting scarce ?
What is the most elegant and efficient delivery model?
  How to use technology in a way that closes the gap between home and work IT? How to make
sure HR leads IT development and not the other way round? Which processes to standardise and
which to tailor?
Tomorrow’s HR Professional Role
Leading:
•  HR Strategy (Shaper):
•  Analyses, frames & facilitates
•  Employee Growth (Builder):
•  Ideas, capabilities & systems
•  Transformation & Change (Catalyst):
•  Systemic, functional & individual change
•  Networks & Communication (Connector):
•  Technology, People & Knowledge
•  Operational Excellence (Achiever):
•  Delivers, advises & creates trust
Future HR
Attracts
Diverse
Talent
Grows Great
Leaders
Delivers
globally and
locally
Anchored in
business
need
Strategic HR Leader
Leading Employee Growth
Transformation & Change Enabler
Networker & Communicator
Operational Excellence
Makes things
simple and
easy
Delivered through aligned HR activities
Flawless
Execution
(Organisational
alignment,
Operational
excellence,
Communication and
Networking)
Build Great
Leaders &
Managers
(Leadership
Development, Bench
Strength, HR Thought
Leadership)
Culture of
Development
(Talent Management &
Development, Culture
& Change
Management)