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Global Human Capital Trends 2014 Survey Findings

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Global Human Capital Trends 2014 Survey Findings 2014


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One of the largest ever study of global human capital trends, readiness, and issues 2500+ business and HR leaders in 90+ countries Covering the major industries and all of the world’s geographies The research


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Today’s workforce demands a whole new set of leadership, talent, recruiting, and engagement strategies. HR organizations are struggling to keep up. Key findings Leadership continues to be the biggest challenge companies face around the world Technology, analytics, and the “overwhelmed employee” are acute focus areas for HR Skills gaps, rapid obsolescence of skills, the need for next-generation learning, and talent mobility will differentiate companies “The 21st Century Workforce” is different – and engagement and retention are now top issues on the minds of CEOs and CHROs HR is falling behind in structure, skills, analytics, technology, and the development of world-class recruiting and L&D Copyright © 2014 Deloitte Development LLC. All rights reserved. 3 Note: The key findings are based on the outcomes of the Global HC trends report.


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The trends This year’s 12 critical human capital trends are organized into three areas Copyright © 2014 Deloitte Development LLC. All rights reserved. 4


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Human Capital Trends 2014


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Lead and develop Copyright © 2014 Deloitte Development LLC. All rights reserved. 6


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Number 1 talent issue facing organizations around the world 21st-century leadership is different with companies facing new leadership challenges Leaders at all levels Close the gap between hype and readiness Current leadership programs falling short The challenge is to develop leadership pipelines that are global, broad, and deep, reaching to every level of the organization Copyright © 2014 Deloitte Development LLC. All rights reserved. 7


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Corporate learning redefined Prepare for a revolution Biggest problem today is the uncoordinated structure of learning and development Corporate training requires content, context, and deep expertise Slow adoption of leading-edge learning tools Focus on continuous learning and the move from “push” training to “pull” learning Copyright © 2014 Deloitte Development LLC. All rights reserved. 8


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Corporate learning redefined Prepare for a Revolution Performance management is broken Replace “rank and yank” with coaching and development Ranking- and ratings-based performance management is damaging employee engagement, alienating high performers, and costing managers valuable time A strong majority rethinking performance management 70 percent of respondents stated that they are either “currently evaluating” or have recently “reviewed and updated” their performance management systems Copyright © 2014 Deloitte Development LLC. All rights reserved. 9


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Corporate learning redefined Prepare for a Revolution Performance management is broken Replace “rank and yank” with coaching and development The quest for workforce capability Create a global skills supply chain Corporations now compete globally for increasingly scarce technical and professional skills Deep capabilities drive performance—and take years to build The gap is wider in major economies 75 percent of respondents rate workforce capability as “urgent” or “important”, however only 15 percent believe they are ready to address it Copyright © 2014 Deloitte Development LLC. All rights reserved. 10


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Attract and engage Copyright © 2014 Deloitte Development LLC. All rights reserved. 11


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Talent acquisition revisited Deploy new approaches for the new battlefield A new battlefield has been shaped by new global talent networks and social media It is being defined by employment brands and changing views of careers Most companies reviewing or changing sourcing and recruiting 60 percent of respondents have updated or are currently revamping their talent sourcing strategy, another 27 percent are considering changes Copyright © 2014 Deloitte Development LLC. All rights reserved. 12


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Number 2 priority rated by executives around the world Millennials are 34 per cent of global workforce - some 70 per cent of Millennial want to launch their own business as some point Companies struggle to instill passion and purpose Any workplace that lags in inspiring passion and purpose will suffer by losing key employees—and at an increasing rate as the global economy picks up momentum Beyond retention Build passion and purpose Copyright © 2014 Deloitte Development LLC. All rights reserved. 13


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From diversity to inclusion Move from compliance to diversity as a business strategy Organizations promote diversity however they struggle to fully leverage the business benefits of a diverse workforce Only one company in five (20 percent) believes it is fully “ready” to address this issue Wider gaps observed in major economies The gap between the urgency and companies’ readiness to address it is particularly wide in Japan, South Africa, and China Copyright © 2014 Deloitte Development LLC. All rights reserved. 14


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An explosion of information or “hyper-employment” and always-connected 24/7 work environment is overwhelming employees This undermines productivity and contributes to low employee engagement An underwhelming response to today’s overloaded employee 65 percent of executives rated the trend as “urgent” or “important”, while 44 percent said that they are “not ready” to deal with it The global and local HR function Balance scale and agility The overwhelmed employee Simplify the work environment Copyright © 2014 Deloitte Development LLC. All rights reserved. 15


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Transform and reinvent Copyright © 2014 Deloitte Development LLC. All rights reserved. 16


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Businesses report that their HR teams are “not ready” or up to the job HR teams need to develop: HR and talent skills; Business, industry, and global skills; and Management, leadership, and program implementation skills 65 per cent assess their capabilities as “Adequate” to “Under-performing” Third most urgent and important trend with 77 percent of respondents ranking it as “urgent” or “important” The overwhelmed employee Simplify the work environment The reskilled HR team Transform HR professionals into skilled business consultants Copyright © 2014 Deloitte Development LLC. All rights reserved. 17


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HR is evolving into a data-driven function However, most companies are yet to convert these capabilities into action Talent analytics in practice Go from talking to delivering on big data Nearly half of the companies surveyed are moving forward Companies that successfully leverage analytics will be positioned to outperform their peers in executing their talent strategies Copyright © 2014 Deloitte Development LLC. All rights reserved. 18


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Race to the cloud Integrate talent, HR, and business technologies Today’s integrated HR platforms are “systems of engagement” They enable improvements in productivity, capability development, collaboration, and data-driven decision making Limited investment in HR and talent systems 56 percent of the respondents say their companies are either not considering updating or have no definitive plans to update their systems Copyright © 2014 Deloitte Development LLC. All rights reserved. 19


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Today’s challenge is developing an integrated global HR operating model that allows for customizable local implementation Companies in Brazil, Japan, and the United Kingdom are struggling to adapt Wide gaps observed across economies 81 percent of large organizations report that implementing an HR global operating model is “urgent” or “important” today The global and local HR function Balance scale and agility Copyright © 2014 Deloitte Development LLC. All rights reserved. 20


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Available resources


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We’ve developed a set of tools to enable you to have conversations within your organization and your leaders How to access the report Copyright © 2014 Deloitte Development LLC. All rights reserved. 22 Read the PDF Report and share it within your organization www.deloitte.com/hctrends2014 Use the Interactive Dashboard www.deloitte.com/hcdashboard to filter the trend data by: Organization size Industry Region Country Level in organization Download the iPad App and familiarize yourself with the trends Follow us on twitter: @DeloitteTalent and @Bersin Subscribe to the HR Times blog: www.hrtimesblog.com


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Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms. Deloitte provides audit, tax, consulting, and financial advisory services to public and private clients spanning multiple industries. With a globally connected network of member firms in more than 150 countries, Deloitte brings world-class capabilities and high-quality service to clients, delivering the insights they need to address their most complex business challenges. Deloitte has in the region of 200,000 professionals, all committed to becoming the standard of excellence. This publication is for internal distribution and use only among personnel of Deloitte Touche Tohmatsu Limited, its member firms, and their related entities (collectively, the “Deloitte Network“). None of the Deloitte Network shall be responsible for any loss whatsoever sustained by any person who relies on this publication. © 2014. For information, contact Deloitte Touche Tohmatsu Limited.


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