2015 Global Human Capital Trends
Leading in the new world of work
January 2015
Agenda
2015: a year of record numbers
10 Global Human Capital trends
Top 5 important issues for Oil & Gas
#1 Leadership
#2 Culture & engagement
#3 Learning & development
#4 Workforce capability
#5 Reinventing HR
Summary
Questions
2
Record numbers!
The 2015 Global HC Trends report is grounded in data
3,300+ clients
from 100+
countries responded
to the HC Trends Survey
50+ HR and
business leaders
provided case studies
and recommendations
150 HC P/D/SMs
from 30+ countries
provided input on this year’s
trends
70+ Global HC
Partners provided client
stories
3
6 Key Findings
Data and interviews delivered a number of key findings
“Softer” areas such as culture and
engagement, leadership, and
development have become urgent
priorities.
Leadership and learning have
dramatically increased in importance,
but the capability gap is widening.
HR organisations and HR skills are
not keeping up with business needs.
HR technology systems are a
growing market, but their promise
may be largely unfulfilled.
Talent and people analytics are a
high priority and a tremendous
opportunity, but progress is slow.
Simplification is an emerging theme;
HR is part of the problem.
4
Leading in the new world of work
The 10 trends for 2015 fall into four categories
Leading
Engaging
Reinventing
Leadership: Why a perennial issue? Learning: Into the spotlight
Companies are struggling to develop
leaders at all levels and are investing in
new and accelerated leadership models
Companies are actively exploring new
approaches to learning and development
as they confront increasing sk ills gaps
Culture & engagement: The naked
Organisation Organisations are
Workforce on-demand: Are you
ready? Companies are tak ing a more
recognizing the need to focus on culture sophisticated approach to managing all
and dramatically improve employee
aspects of work force including hourly,
engagement as they are facing a looming contingent, and contract work force
crisis in engagement and retention
replacing traditional performance
management with innovative
performance solutions
Reinventing HR: An extreme
Analytics: Stuck in neutral
makeover HR is undergoing an extreme Too few organisations are actively
People data everywhere: Bring the
outside in HR and talent organisations
mak eover to deliver greater business
impact and drive HR and business
innovation
Reimagining
Performance management: The
secret ingredient Organisations are
implementing talent analytics capabilities
to address complex business and talent
needs
are expanding their HR data strategies
by harnessing and integrating third party
data about their people from social media
platforms
Simplification of work: The coming Machines as talent: Collaboration
revolution Organisations are simplifying not competition The increasing power
work environments and practices in
response to increasing organisation and
system complexity, and information
overload
of computers and software to automate
and replace k nowledge work ers is
challenging organisations to rethink the
design of work , the sk ills their employees
need to succeed
5
Top 5 important issues for Oil & Gas
Energy & Resources saw leadership as the priority issue, with
culture & engagement a close second
1. Leadership
2. Culture & engagement
4. Workforce on-demand
3. Learning & development
5. Reinventing HR
6
#1 Leadership: Why a perennial issue?
Companies are struggling to develop leaders at all levels and are investing in new and
accelerated leadership models
Why the issue:
Leadership for the few,
not the many
Lack of consistent
investment
Weak leadership
pipeline
Where companies can start:
Importance index: 79
-38
Readiness index: 41
•
Commit to leadership development from the top
•
Know what you are developing leadership for
•
Develop inclusive leadership at all levels
•
Make talent development and succession a priority
•
Develop or leverage a capability model
•
Extend boundaries to create new leadership
development opportunities
86% cite leadership as one of
their most important challenges,
yet only 10% believe they have
“excellent” succession
programs
The capability gap for building great leaders has widened in every region of the world since last year
7
#2 Culture & Engagement: The Naked Organisation
Organisations are recognising the need to focus on culture and dramatically improve employee
engagement as they are facing a looming crisis in engagement and retention
Why the issue:
Glassdoor era:
Employees are now
like customers
Leaders lack an
understanding of &
models for culture
New world of work
changes the way
we engage people
Employees’
motivations have
changed
Where companies can start:
•
Engagement starts at the top
•
Measure in real time
•
Make work meaningful
-30
-38
•
Listen to the Millennials
Readiness index: 46
•
Simplify the work environment
Importance index: 76
The proportion of respondents
citing culture and engagement
as a ‘very important’ issue has
almost doubled this year, from
26% to almost 50%
Highly engaged companies can hire more easily, deliver stronger customer service, have the lowest
voluntary turnover rates and be more profitable in the long run
8
#3 Learning & development: Into the spotlight
The percentage of companies rating learning and development as very important has tripled
since last year. But even as the importance of the issue rose, the readiness to address it
went down
Why the issue:
Competition for new
technical and
professional skills
Significant digital
transformation
New employee
expectations for ondemand learning
Where companies can start:
Importance index: 73
-28
Readiness index: 45
•
Reimagine the learning experience
•
Analyse where your current L&D money is going
•
Centralise spending and strategy while carefully distributing learning capabilities
•
Redefine learning as an agile and routine experience
•
Reimagine measurement
•
Elevate the job of Chief Learning Officer to attract
experienced learning, technology and HR leaders
Importance of learning jumped
25% over the last year.
Capability gap is 3x bigger
than last year
As corporate learning undergoes a digital transformation,
this is the year to assess you current learning environment and implement a new vision to build a corporate
9
learning experience that touches every employee in a significant way
#4 Workforce on-demand: Are you ready?
Companies are taking a more sophisticated approach to managing all aspects of workforce
including hourly, contingent, and contract workforce
Why the issue:
Networked nature
of work
Multigenerational
workforce
Desire for more
flexible working
conditions
HR fails to consider
them in their talent
strategy
Where companies can start:
•
Proactively plan for a hybrid workforce
•
Educate business and HR leaders on the range of on- and off-balance-sheet
approaches to talent
Importance index: 72
•
Put in place integrated management and risk controls across the business,
procurement and HR teams
-28
•
Extend your performance management and analytics efforts to on-demand talent
•
Develop HR and IT systems to support on-demand talent
•
Assign ownership and governance of on-demand
workforce management
Readiness index: 44
50% see an increase in
contingent hiring over the
next 3 to 5 years
Highlights the need to develop better processes, policies and tools to source, evaluate and reward
talent that exists outside of the traditional corporate and organisational balance sheet
10
#5 Reinventing HR: An extreme makeover
Both HR and business leaders, on average, rated HR’s performance as low; furthermore,
business leaders rated HR performance 20% lower than HR leaders did, showing how
important it is to accelerate HRs ability to deliver value as the economy improves
Why the issue:
Traditional HR
practices are
undergoing radical
change
HR role has been
redefined as an
enabler and builder
of talent
Shift towards a
team of highly
skilled business
consultants
Requirement for
professional
development and
research capabilities
Where companies can start:
Importance index: 71
-30
Readiness index: 41
•
Design the HR organisation to deliver solutions
•
Create business-integrated “networks of excellence”
•
Make HR a talent and leadership magnet
•
Invest in HR development and skills as if the business depended on it
•
CHROs must be innovative and business-savvy and
be able to stand toe-to-toe with CEO
We saw a marked increase
in non-HR professionals
being brought in to fill the
role of CHRO
A new playbook for new times – today’s HR organisation must be agile, business-integrated, data-driven,
and be able to provide strategic advice to business leaders on developing talent and leadership
11
across the business.
So what does all of this
mean for the Oil & Gas
sector?
12
1. What are some of the
challenges for Leadership
development in O&G, and
what actions should be
taken to overcome these
challenges?
2. How can we find out what
Millennials are looking for and
proactively drive organisation
culture to suit the next
decade?
3. How can learning look
different from today to
deliver more business
aligned outcomes?
4. What changes are you
starting to see in workforce
make-up, and what are your
organisations doing to be
ready for this change? ?
5. What role should HR be
playing as many of the
MCPs move in to
operations? What should
be the focus?
13
6. Which of the global human
capital trends resonated
most with you and why?
14
Where will you focus in 2015/16?
1. Leadership
2. Culture & engagement
4. Workforce on-demand
3. Learning & development
5. Reinventing HR
15
Questions
For more information go to
www.deloitte.com/hctrends2015
16
General information only
This presentation contains general inf ormation only , and none of Deloitte Touche Tohmatsu Limited, its member f irms, or their related entities (collectiv ely the “Deloitte Network”) is, by means of this
presentation, rendering prof essional adv ice or serv ices. Bef ore making any decision or taking any action that may af f ect your f inances or y our business, y ou should consult a qualif ied prof essional adv iser. No
entity in the Deloitte Network shall be responsible f or any loss whatsoev er sustained by any person who relies on this presentation.
About Deloitte
Deloitte ref ers to one or more of Deloitte Touche Tohmatsu Limited, a UK priv ate company limited by guarantee, and its network of memb er f irms, each of which is a legally separate and independent entity .
Please see www.deloitte.com/au/about f or a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited an d its member f irms.
Deloitte prov ides audit, tax, consulting, and f inancial adv isory services to public and priv ate clients spanning multiple industries. With a globally connected network of member f irms in more than 150 countries,
Deloitte brings world-class capabilities and high-quality serv ice to clients, deliv ering the insights they need to address their most complex business challenges. Deloitte has in the region of 200,000 prof essionals,
all committed to becoming the standard of excellence.
About Deloitte Australia
In Australia, the member f irm is the Australian partnership of Deloitte Touche Tohmatsu. As one of Australia’s leading prof essional serv ices f irms. Deloitte Touche Tohmatsu and its af f iliates prov ide audit, tax,
consulting, and f inancial adv isory serv ices through approximately 6,000 people across the country . Focused on the creation of v alue and growth, and known as an employ er of choice f or innov ativ e human
resources programs, we are dedicated to helping our clients and our people excel. For more inf ormation, please v isit our web site at www.deloitte.com.au.
Liability limited by a scheme approv ed under Prof essional Standards Legislation.
Member of Deloitte Touche Tohmatsu Limited
© 2015 Deloitte Touche Tohmatsu