Key predictions for HR in 2016

Amelore comment on the key predictions for HR made by Bersin of Deloitte. Here is the first part of two blogs with a summary of Bersin’s predictions and our observations.

  1. wheel_of_fortuneDigital HR arrives – we are not talking employee databases here. 8 million have smart phones, 3 billion use internet. Deloitte research says people check their phones 8 billion times a day!

The trend predicted is a design centric digital focus within HR. Apps will become king.  Clouds sit behind scenes. Traditional software will start to fade out. Any new technology need to be as easy as Facebook or Instagram to use.
Organisations are building HR platforms to allow rapidly built solutions, collect data and people and business process – easily. So they can quickly iterate & improve employee digital experience. Eg 2015 Sidekick Commonwealth Bank of Australia – brings together employees HR, collaboration, admin & support apps to their phones. 20,000 users in 2 weeks of roll out. V successful launch.

Think all my HR programs are apps…

“Of course the actual reality in many organisations is no HR database or something clunky that produces data that has inaccuracies.  When we talk to HR leaders about what technology they are investing in, it tends to be an HR system.

Because of poor organisational experience in the past there can be a reluctance to invest. Cross corridors into the Marketing department and you may see a very different picture.  Employees just like consumers are critical to the success of the business.”

  1. Rush to replace outdated HR systems

Why? To improve employee experience.  Harness people data. 60% of large companies are replacing software. Workday, SAP, Oracle, ADP, Ultimate Software, Cornerstone OnDemand, Ceridan etc are popular choices.

Offering solutions for recruitment, on-boarding, learning, performance, talent management compensation, succession, talent analytics.

The global trend is reduction of HR systems (average is 7) modernising with cloud technology sitting behind.

  1. Global rush to replace and re-engineer Performance Management

This is the hottest and most disruptive area of HR – redesign of performance management. 60% of companies are doing this.

Existing process too complex say 88% of managers.

End to end talent management market fairly mature – core HRMS, payroll with talent management module is a core tool on offer from many.

Trend is around check in’s, feedback, and more focus on development. Followship. Moving away from leaders. Building systems and tools to let people work flexibly and network.

“Many fast growing businesses have been practicing followship for a while. Younger and flatter teams without the traditional hierachy. And checking in with their staff. And with a development led focus which is a core retainer. 

In 2015 Amelore conducted some independent research into the cost and effectiveness of appraisals. Results varied but the core message was that it was a disproportionately costly activity at a time when organisations weren’t investing in staff development and losing them.  If you got rid of your appraisal process tomorrow and replaced it with a career development led focus you’d save money and retain more staff.”

  1. Engagement, Retention and Culture persist as top priorities

The job market is hot, hot, hot. Many scare skills are in scare supply, the economy is growing so the employment experience is highly transparent.

Open feedback is increasingly expected – 80% of millennials want to give their bosses an appraisal!  Employment brand a big thing. Staff engagement once a year surveys is old fashioned. Real time and continuous feedback is king.

There are 5 different types of feedback systems emerging:

Pulse survey tools – managers and HR rapidly take the pulse of the people’s feelings and opinions supplemented by annual survey.

Feedback apps – Employees can randomly provide an open suggestion box of comments that can be analysed, filtered, up-voted, down-voted & evaluated at any time.

Performance feedback systems – Give employees an opportunity to provide team or manager feedback as part of the performance management cycle.

New Work Environments – people work in teams through collaboration with tools (Slack, Workboard, Trello, Impraise) & give feedback immediately on anything.

Social Recognition Tools – Employees can give thanks, points & other forms of positive feedback to others in an open and social way.

Trend is towards letting employees “Like” or “Yelp” things at work which provides valuable data about work practices, safety situations, customer service issues and of course management.

“Some organisations are struggling with this new way of working particularly senior teams who seek to impose something that is more familiar to them. This gives the younger CEO the advantage that experience gives someone older.  Resisting large scale changes in the workplace is like attempting to type better internal memorandums as email emerges.”  

  1. Career and Talent mobility continues – investment in Coaching and Mentoring grow rapidly.

Investment in leadership is inconsistent. At highest level this is only £2,600 per leader per year. This is a very modest investment in great leadership.

Roles of leaders have changed. Spans of control have increased by 11 percent for lower-level leaders.  Todays leaders are ‘team leaders’ more than ‘top down executives’ learning how to lead cross functional global teams.

Approximately 50% of all leaders in every company are first or second line leaders – getting younger each year. Coaching and mentoring are therefore critical for their development.

New leadership model is followship – ability to set an example, empower and encourage others, drive change, alignment and inspiration.

Companies still far too attracted to old models of leadership inc long development times, slow progression & traditional HiPo (high potential) programmes. High performing companies promote young leaders at a highly accelerated rate and enable them to learn on the job.

“The smart money is on those with potential. Whatever their age. One of our clients Monica Vinader, who have trebled their turnover in the last 3 years and grown rapidly, have always identified and backed potential. A hallmark of their success has been the dedicated and hands on approach that both Monica and her sister Gabriela have shown in being very clear what is expected of individuals.  This has enabled a number of talented individuals to thrive and flourish along with the company.”

Summarised from Predictions for 2016 – A bold new world of Talent, Learning, Leadership and HR Technology ahead. Bersin by Deloitte with commentary by Amelore.

 

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