Earlier this year Deloitte released its Global Human Capital Trends Report 2016, based on a survey of more than 7,000 HR and business leaders from 130 countries. In this blog, we review the top five trends and their impact on business transformation.
- Organisational Design
The new digital landscape we live and work in is creating a shift in the way organisations are working. The traditional functional and hierarchical structure no longer serves the fast-paced global markets we see today. Instead organisations are breaking down into a product, customer or market centric network of teams to dramatically improve their effectiveness. The shift is already evident with only 38% of companies retaining a functional only structure.
What the new organisation design look like:
- Team leaders with domain expertise, driving product, customer, mission and market centric teams.
- Empowered teams with the responsibility to set their own goals, which are aligned to the business strategy.
- Information centres identify connections between teams and their desired outcomes to enable sharing and collaboration.
- Working across teams with techniques like job rotation, open office work environments and collaboration projects like “hackathons”.
- Enable movement of workers between teams. Taking on a specialist role for a project then returning to their base role.
- Leadership team focused on planning, strategy, vision, culture, and cross-team communication.
As we see a change in organisational design and a far more diverse and age varying workforce, leadership has emerged as the second biggest challenge faced by HR managers. In the report from Deloitte only 13% of companies state they are “excellent” at building global leaders. They are challenged with finding leaders within the company that can inspire across as many as five generations, in flatter hierarchies, and that fit the new attributes required of leaders. Leaders are no longer being selected for their length of time at a company and perceived position of power, instead they are being chosen due to their expertise levels and their vision for the company. To have a continuous flow of strong leadership within a company, HR leaders need to create a structured succession planning and development process to identify potential new leaders and support them into a leadership position.
It is not surprising to see culture taking the third spot in the trends report with a result of 82% saying they believe culture is a potential competitive advantage. Company culture influences the everyday behaviour of your employees, impacting on performance, engagement and customer service. As discussed in our previous blog ‘The relationship between culture and engagement’, culture is no longer just an issue for HR. Instead it’s the CEO and executive team who should be responsible for defining and then living and breathing the company culture daily. However, HR still plays an important role in this, supporting the culture through measurement, process and infrastructure. Most organisations understand that culture is important, yet many are still not measuring it and fewer than 12% believe their truly understand their culture. Currently over 50% of survey respondents are trying to change their culture, which presents an ideal opportunity for HR. Taking the role of culture champion, HR can decide who they hire based on a cultural fit, what behaviours should be rewarded, and actively be curating and shaping the culture as the organisation moves forward.
Engagement is very closely linked to culture and is often a result of the company culture in place. Instead of being the type of behaviour an employee performs in the workplace, it is the level of commitment they show to the company and their work. How people are working has changed quite dramatically over recent years and with it so does the expectations of employees. Today’s workforce is diverse, spanning across many generations and have become accustomed to an ‘always on’ mobile culture in their everyday life. With this, a new employee-centric work environment has arrived, concentrating on employee health and wellbeing, flexibility around working hours and locations, and empowering employees in their roles to give them a sense of purpose. Possibly HR’s biggest challenge around engagement is making the switch from the hefty annual survey to an ‘always on’ continuous process of monitoring, measuring and executing engagement programmes. Only 8% currently measure employee engagement on a monthly or more frequent basis.
The development and learning opportunities a company provide form part of the employee value proposition which supports culture and engagement levels. Employees are looking to work somewhere that is invested in building their skillset and HR leaders are now faced with trying to create an almost consumer-like experience to meet workplace learning expectations. To address this, organisations are implementing new learning models and technology such as massive online open courses (MOOCs), advanced video and mobile learning apps. HR are looking to create a culture which fosters continuous self-learning, enabling and empowering employees with access to on demand content. Whilst a 10% spend increase was seen in learning last year, only 37% of organisations believe their programs to be effective, so there’s still a lot of work to do in building stronger models and platforms.
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