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#NewWayToWork
Building a
#SmarterWorkforce:
What Is the
Future of HR?
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Futurist Insights Series
2 | Building a #SmarterWorkforce: The Future of HR
Foreword
Written by Brian Moran, Roundtable Event Moderator
Recently I had the chance to serve as the roundtable
moderator at an IBM influencer roundtable initiative
during the Society of Human Resource Management 2015
Conference (#SHRM15).
We brought together some of the brightest and most talented individuals in the HR
space for a roundtable discussion on building a smarter workforce and the future of
work. Their backgrounds varied, but all of the participants are recognized as thought
leaders and visionaries in their respective disciplines.
The attendees discussed many key HR topics, including workforce analytics, open HR,
employee engagement and talent acquisition. They shared a variety of insights in these
areas and answers to many questions, such as:
• What are some of the biggest pain points that companies deal with today?
• What innovations in HR are taking place?
• What development or trend will have the largest impact on the future of HR?
The results of the roundtable discussion shed light on the current challenges of HR,
and also created a roadmap outlining the future of HR and showing how companies
can prepare for the changes ahead.
We had a number of great conversations at the event, which I’m very excited to recap
and share with you.
3 | Building a #SmarterWorkforce: The Future of HR
Chapter 1: Workforce Analytics
Investment in human capital is a critical aspect of
any corporate strategy. Today, more than ever before,
HR professionals need to define their human capital
requirements in a business performance context.
And yet more often than not, organizations have only a
partial understanding of their current and future workforce
needs because they’re not using workforce analytics.
According to a 2014 Aberdeen/IBM study,1
best-in-class companies are 3.7 times
more likely to train for analytics skills and five times more prone to hire analytics
professionals. This is probably because workforce analytics provide a fact-based
framework that empowers HR professionals to make more informed decisions that
ultimately allow their organization to seize opportunities and differentiate their value in
the market. Many companies, however, are struggling with the adoption of analytics.
Adopting Talent Analytics
One of the biggest hurdles for companies to overcome is really understanding analytics:
how they work and how to use them. “Companies are leaving a lot of talent behind
because they don’t have the insights or they aren’t looking at enough different things,”
says Janine Truitt, Chief Innovations Officer at Talent Think Innovations. “We’re sitting
on gold mines in a lot of situations.”
Truitt further explains that many companies that she has worked for are not yet
at a point of understanding analytics. “They see it, they read about it, but it’s a
larger-than-life concept for them because they have issues even reporting at an ad hoc
level,” says Truitt. As highlighted in the IBM Business Tech Trends study,2
the use of
analytics is a key differentiating factor for leading businesses. With the huge quantity of
people data in many organizations, the HR function could be at the forefront of realizing
the benefits of this strategic capability, but many HR executives say that they don’t
know where to start.
4 | Building a #SmarterWorkforce: The Future of HR
Leading analyst Josh Bersin recently pointed out
that HR is sitting on a large amount of untapped data
but is only just starting to find ways to put it to work.
According to Inside the mind of Generation D, a study
of how organizations are using data and analytics,3
HR is currently one of the lowest-ranked functions in
terms of benefiting from analytics. This is validated by
a recent IBM Smarter Workforce Institute and Institute
for Business Value report that found that “less than 20
percent of organizations are able to apply predictive
analytics to address important people issues.”4
Another pain point for many companies is building capability. To be successful, they
must figure out why they need the data, and what having the data will help them
change. They also need people on their team who are good not only at analytics and
but also at sharing the significance of the results. The absence of this skill combination
is a stumbling block for many companies.
“I saw that at one company they hired a couple of Ph.D.s who are excellent in analytics,
but not very good at telling the story and visualizing the data,” says Peter Vermeulen,
VP HR Americas, The Linde Group. “So you need that mixture of different capabilities
to be successful.”
A balance must also be struck between analyzing the historical data and using
predictive analytics. Truitt explains that she has observed a few companies that
have hired statisticians to work in that capacity. But in the future, this could be an
entirely different role—one with a unique intersection of talents: A person who not
only understands industrial psychology but also has a background as a statistician.
Furthermore, the adoption of talent analytics will be a powerful tool for this shifting role.
5 | Building a #SmarterWorkforce: The Future of HR
For example, IBM®
Kenexa®
Talent Insights enables human resource professionals
to make strategic, fact-based decisions based on talent analytics that can help drive
business outcomes. HR professionals can type in what they need from their talent
data, and the results are quickly displayed in an easily understood visual format.
Through this helpful resource, organizations are able to access tools to:
•	Get answers to talent questions faster, using talent analytics on any HR data
•	Make more fact-based talent decisions through cognitive capabilities that 		
	 understand the HR language
•	Discover new relevant paths to explore for better decision-making 	
	 using patterns and relationships in the data that surface automatically as
	 visualizations, with the option to explore alternative relevant paths.
	 They can begin the analysis by asking a question or selecting a suggested
	 question. (Watch this Talent Insight demo to learn more)
Creating a Data-Driven HR Culture
As companies grow, they often use automation software to support and fuel that
growth. But a stronger reliance on automation also means that they must work
diligently to maintain and preserve their company’s culture.
Bryan Kramer, CEO and Founder of PureMatter, recently visited Tesla Motors.
He received a tour of the entire factory, which covers 54 million square feet.
The company is building 1,000 cars a week, and they want to double and perhaps
even triple that number. He asked every single person why he or she works there, and
the consensus was that they all want to rid cars of the need for gas. Every employee,
without exception, was clear about that distinct vision.
6 | Building a #SmarterWorkforce: The Future of HR
“My whole point on that is that Tesla instilled a culture of automation within the context
of building cars,” says Kramer. “They are all building the same car, 1,000 of them a
week, yet they all know that they are ridding the world of the need for gas.”
The reason the culture was consistent and clear was because of leadership. “It must
start from the top,” says Mike Haberman, Consultant and Partner at Omega HR
Solutions Inc. “Because if the person leading the company doesn’t have that purpose,
your employees are not going to have that purpose.”
Wendy Tandon, Director of Product Management at IBM, explains that workforce
analytics isn’t driving the culture. The culture exists first. After that, you’re just
cultivating and using analytics to find the people who are the right fit for that culture.
What makes this possible is cross-collaboration between different functions, suggests
Truitt. Truitt explains that there are specific industries where finding the right people is
exceedingly difficult. Moreover, many organizations are leaving a lot of talent behind
because they lack access to insights, or they’re not looking at the right elements. In a
lot of situations we have a golden harvest we’re not capturing; we’re not cultivating the
people that we already have.
Additional Resources
Report Starting the Workforce Analytics Journey: The First 100 Days
Report Building a Business Case for Talent Analytics: MWD Analyst Report
Video 10 Steps to Workforce Analytics Success in The First 100 Days
White Paper Active Employee Participation in Workforce Analytics
Guide How Analytics Are Shaping a Smarter Workforce
Demo IBM Kenexa Talent Insights Powered by Watson Analytics
7 | Building a #SmarterWorkforce: The Future of HR
Case Study
McDonald’s
Using assessments to improve the customer experience and drive better
business results.
The Need
The McDonald’s UK recruitment team needed to enhance its selection process for new
employees by using a customer-centric strategy to attract and hire candidates with the
right fit for every job.
The Solution
McDonald’s selected IBM to create a series of assessment tests designed to pinpoint
suitable candidates faster.
The Benefit
• Four months after the launch, the number of applicants for crew positions dropped
35 percent, while the number of managerial applicants dropped 50 percent, ensuring
those who applied understood and wanted to work for the company.
• The savings allowed McDonald’s to establish and support a centralized assessment
schedule for management positions across the UK, leading to greater consistency
of hiring practices.
• The new assessment centers cut time to hire for management positions by
2 percent, and slashed the applicants to hire ratio by nearly 66 percent.
Solution components:
• IBM Kenexa Behavioral Assessments for Hourly Roles on Cloud
• IBM Kenexa Behavioral Assessments for Managerial Roles on Cloud
Read the full case study
8 | Building a #SmarterWorkforce: The Future of HR
Chapter 2: Open HR
We live in a world of increasing integration within
the cloud, and human capital management (HCM)
is no exception. HCM has typically been the purview
of one-size-fits-all suites hosted onsite. The cloud
ecosystem, however, creates new opportunities
for integration and cooperation between
software providers.
This means that HR professionals can access a
greater array of tools from multiple vendors to
emulate an experience that’s consistent with
working with a single company. `
Innovations Taking Place
The average human resources department has deployed a plethora of applications that
simply aren’t talking to each other, explains China Gorman, Strategic Advisor to the
Board of Great Place to Work Institute.
“It’s something like an average of 18 different HR applications that aren’t plugged in to
anything central,” says Gorman. “Yet, they are running concurrently, and the location of
the devices is variable, with some residing on premises and others in the cloud. But the
point is they are not communicating, so getting to the analytics would just
be impossible.”
#NewWayToWork
“I see Open HR being akin to
crowdsourcing. It allows companies
to use the wisdom of the cloud ecosystem
to find the best solution to their HCM
software issues.”
- Michael D. Haberman
@HRComplianceGuy
Futurists Share Why
Open HR Is Transforming
a #SmarterWorkforce
The Kenexa Open HR initiative gives clients choice
and flexibility as they build out their next generation
HR systems by welcoming all HR data and
applications to assist in achieving business goals.
To learn more about IBM Kenexa Open HR Solutions
visit www.ibm.com/kenexa-unlocked
“An open solution allows big HR and
Talent shops to move quickly and
engage the technology they need to
better their business.”
- Tim Sackett
@TimSackett
“Simply put..best tech + best tools =
best talent and more profits.”
- JoAnn Corley
@JoAnnCorley
“Companies adopting open HR,
cloud-based solutions will realize clear
competitive advantages in workforce
producitivity and employee engagement
as business becomes more mobile
and remote.”
- Brian Moran
@BrianMoran
“Much in the way open source code
allowed for rapid development and
improvement of software, open HR
allows for custom self-enhancement
by those who know their needs the
best, the customer!”
- Dr. Woody
@DrWoody
“All sustainable change happens at the
ground level, and with 'employees'
increasingly being treated as 'consumers'
of HR services, an open approach is
foundational to the future of our industry.”
- Mark Stelzner
@stelzner
“Open HR allows vendors to better serve
the customer. Regardless of their niche,
HR tech vendors can collaborate and
compliment one another that may allow
better fluidity of information and
increased productivity for customers.”
- Janine Truitt
@CzarinaofHR
“I like Open Anything. Seems odd to me
that anyone would consider anything
but Open once they move to Open.”
- Warren Whitlock
@WarrenWhitlock
Meet all of our
#NewWayToWork Futurists
Click to see infographic
9 | Building a #SmarterWorkforce: The Future of HR
She says that if the open environment is really coming, the
real value will be for businesses that are able to have their
18 different systems centrally plugged in. Once the systems
are connected, companies have the power to extract all
that data.
For example, Joel Peterson, Associate Director of Human
Resources at Goshow Architects, explains that his company
decided to take the leap into the cloud for two reasons. First, it was the way of the
future, and second, he didn’t have time to manage everything as the HR department
of one. So he migrated to the cloud within a single platform that allows him to be
cutting-edge and get everything done at once.
“We’ve got two different things happening out there in a cloud,” says Peterson.
“And together, they made us about 200 percent more efficient. Now I can tell my
employees, ‘Hey, you want to work from home? Work from home.’ And that’s
because we’ve got the platforms up in the cloud that allow anywhere access.”
In addition to integrating HR applications, continuity of service will also remain
important in the future, explains Truitt. She has worked in enterprise resource planning
(ERP) and observed firsthand how you can customize something almost to paralysis,
and then go through a system update and lose everything you just customized.
“This is painful, because you’ve lost productivity, which spurs frustration,” says Truitt.
“But with the cloud, you eliminate all of that. Because overall, the main concern of
businesses is keeping things going no matter what, and this is one of the main pluses
of being in the cloud.”
10 | Building a #SmarterWorkforce: The Future of HR
Open Solution Changes
A large barrier to adopting this technology is that people
within organizations greatly overestimate their ability to
identify talent. They often believe they are good at hiring
people with the best fit; however, as human beings, our
decision-making is flawed. It’s through analytics that we
can minimize the blind spots during this process.
Michael “Dr. Woody” Woodward, Ph.D., an organizational psychologist and executive
coach, says that through his work with executives and managers, he’s gained insight
into the crazy criteria that they’re using to determine who will be great at managing
other people. They are often falsely assuming that since an individual is talented at a
job, that person must be great at managing other people.
“So we’re failing miserably,” says Dr. Woody. “And it’s partly, I believe, because we’re
not using good data and good metrics. We’re not being objective about it.”
People within organizations greatly overestimate
their ability to identify talent.
Brian Moran
Click to Tweet
11 | Building a #SmarterWorkforce: The Future of HR
As we learn more about the faulty decision-making of humans, analytics will no doubt
become more appealing to organizations as they gravitate away from “gut-based”
hiring decisions. A multi-vendor approach not only assists with solving these challenges
but also assists HR professionals with productivity. They have a complete and
consistent view of everything they need to perform their job within a familiar,
common interface.
However, until recently HR teams were forced to select a one-size-fits-all suite for talent
management and core HR applications. But this model is changing through new and
unlikely partnerships.
Take, for example, the IBM and SAP partnership. They came together for
cloud-to-cloud product integrations, in which they are integrating elements of their
talent management and core HCM offerings. This makes product selection easier,
and gets rid of standalone talent management and core suites. These changes will
positively alter the experience moving forward, as HR teams have access to better
data, stronger solutions and an overall more powerful experience. As we learn more
about the faulty decision-making of humans, analytics will no doubt become more
appealing to organizations as they gravitate away from “gut-based” hiring decisions.
Additional Resources
Article IBM and SAP Partnership: An Unlikely Marriage or a Force to Be Reckoned With?
Article IBM and SAP Integrated Talent Management Offerings Will Disrupt the HCM Market
Article IBM, SAP Team to Advance Talent Management
Announcement Influencer Sentiments on IBM SAP Partnership Announcement
Guide Opening up New Possibilities in HR
Interview Jim Lundy on IBM and SAP coming together for better client value
12 | Building a #SmarterWorkforce: The Future of HR
Chapter 3: Employee Engagement and Acquisition
Seventy-eight percent of business leaders rated retention and engagement urgent or
important, according to the 2014 Deloitte Global Human Capital Trends report.1
Giving
rise to this concern is the fact that the increasingly global economy and the ability to
telework are making it easier than ever for high performers to switch jobs.
The workforce is also changing. It’s multigenerational, and this transition brings a
new set of employee expectations and pain points. Moreover, it further highlights why
HR professionals need to be empowered to effectively engage with employees on a
consistent basis.
“Companies today are facing a really unique and awesome challenge, in the sense
that, they have so many generations represented in their workforce,” says Peterson.
“Right now, I have four different generations: the Silent Generation, the Baby Boomers,
the Gen Xers and the Gen Y. And it’s a very dynamic time for everyone to step up
and engage.”
So how can talent management professionals measure employee engagement in a
more holistic, integrated and real-time way? And what does it take to drive high levels
of employee commitment and passion?
Hiring a Diverse Workplace
When thinking about engagement and the future of work, it’s important to realize that
we’re going to have to be open to much more diversity in the workplace, explains
Haberman. “If we continue with the behavioral interviewing, ‘look like me, sound like
me,’ we’re not going to increase that diversity at all,” says Haberman.
Analytics could provide an opportunity to hire more diverse talent in the workplace,
explains Peter Vermeulen.
13 | Building a #SmarterWorkforce: The Future of HR
“One of the most exciting things about talent analytics, where it meets human
resources and humans, is we’re moving beyond the gut check for, ‘Hey, that person is
a good fit for your organization,’ to ‘we have more data now and we can actually back
this up,’” says Meghan Biro, CEO and Founder of TalentCulture Consulting Group/
TalentCulture World of Work.
The ability to hire a more
diverse workforce through
analytics and to engaging
existing high-potential
talent will largely contribute
to success in the future.
Engaging High-Potential Employees
Only 31 percent of CHROs believe they understand their customers well today, while 78
percent believe they will need to have a greater understanding in the next three to five
years. Unsurprisingly, financial outperformers are more likely to already have a stronger
understanding of their customers (44 percent versus 28 percent of all
other firms).2
Therefore, companies should be engaging high-potential employees very differently
than they engage the typical employee in a company. “So the fact is that you have
performers out there who are special folks, who are really proactive, performing at a
high level,” says Dr. Woody. “And really, these are the folks you want to hold on to, so
you must think differently about how you will engage them.”
Treating all employees in the same way is a failing proposition. You should start
with targeting performance, and then zero in on who is really doing well. IBM talent
analytics and surveys, which are powered by Watson Analytics, can place cognitive
analytics into the hands of all HR professionals, enabling them to gain valuable insights
from recruiting, onboarding and performance management data.
14 | Building a #SmarterWorkforce: The Future of HR
How great could we be if we knew as much about
our people as we know about customers?
Duke Daehling
Since this HR solution understands the language of HR, users simply type in what
they wish to see, and the results are displayed in easy-to-consume interactive
visualizations. Patterns and relationships in the data are automatically uncovered,
and recommendations on alternative paths to explore are offered.
Peterson suggests that how you engage with high-potential employees also integrates
with developing managers. “If you don’t acknowledge and engage people who are
naturally, or through their passion, demonstrating leadership, you’re going to lose
them,” he says. “So by all means, I think that any company that is in touch with their
employees is going to engage a high-potential person in a different way. That doesn’t
have to be about money, though.”
In fact, 69 percent of high-potential employees feel they are fairly paid, compared to
44 percent of all other employees.3
Yet, they may also feel a push to go to another
organization. A manager’s worst nightmare is learning that a competitor has poached
his or her best employee.
Peterson explains that while money is important, giving employees space to take on
projects they feel passionate about, such as community involvement, and finding
ways to work their passions into what they do at the office are very effective forms
of engagement. High-potential employees are altruistic to a point, but they must be
acknowledged, or they will leave.
Click to Tweet
15 | Building a #SmarterWorkforce: The Future of HR
Annual Employee Engagement Surveys versus Continuous Listening
Many HR teams struggle with the best way to gather feedback from employees.
They wonder whether they should focus on annual engagement surveys or continual
listening—or perhaps a combination of both. Peterson feels that continual listening is
very important, but it needs to be tied in to any sort of feedback mechanism you put
in place.
He further explains that the annual survey is a very effective check-in. The survey may
be anonymous, and therefore provides employees with time to sit down, focus and
share what’s on their minds. In contrast, continual listening is more in the moment and
spontaneous, yet also very valuable.
However, with annual surveys, there are risks. For example, Truitt explains that many
employees are “over engagement surveys” because they have been doing them
for so long. They’ve invested their time, poured their heart and soul into it, and feel
disappointment when nothing happens as a result of their efforts.
“So there’s just a whole lot of
information sitting on somebody’s
desk without any action,” says
Truitt. “But I still think annual
surveys are valuable. It’s the
easiest way that you can actually
elicit that kind of information
from somebody.”
Many employees are over engagement surveys
because they have been doing them so long.
Janine Truitt
Click to Tweet
16 | Building a #SmarterWorkforce: The Future of HR
Truitt recommends that companies using annual surveys be very clear about telling
employees that the provided information is valued. Once this is communicated, action
must follow. Continuous listening must also be carried on, with leaders keeping their
ears to the ground. They should also be willing to have individual conversations with
people about how to fix various things.
Haberman explains that the annual survey has always been a
method for taking your employees’ temperature.
“The unfortunate thing with that is it is a once-a-year event,”
he says. “If you’re in a very busy part of your year when you
take that temperature, you’re going to get a whole different
set of feelings than if you take it six months later when
everybody is a little bit more relaxed.”
Haberman favors pulse-type surveys, where you put together a very short survey once
a month or once a week. “I have one client that does annual surveys, and one was
done almost a year ago,” he says. “They’re still working off the data they found from
that annual survey. And now it’s a year later, and how relevant is that information?”
An effective way of handling these challenges is through IBM employee engagement
surveys. They delve into what matters most to employees, which gives HR insights for
driving engagement, because understanding what motivates and engages employees
can help drive behavior change, improve workgroup effectiveness, enhance individual
development and increase retention.
17 | Building a #SmarterWorkforce: The Future of HR
The Socially Connected Workforce
In addition to annual surveys and continual listening, the future will hold new and
innovative ways to capture employee feedback. For example, Haberman explains that
the DNA of business is going to be changed through crowdsourcing. “By listening to
employees’ voices through crowdsourcing, we’ll get a much better idea of what really
appeals to them,” he says.
HR teams have long wondered whether employees are engaged, connected and
happy, and they will no longer need to guess. However, the value of crowdsourcing is
really in the information, Haberman points out. He believes that it will significantly alter
how we engage with people and what structures we put in place, as compared to the
past, when HR teams were forced to figure this information out themselves.
Additional Resources
Demo IBM Kenexa Talent Insights Powered by Watson Analytics
Brief Solution Brief Brandon Hall: Talent Acquisition in Retail
Report Analyst Research Talent Acquisition Technology: Today, Tomorrow, and Beyond
White Paper Independent Workers: Does National Culture Matter?
White Paper The Art of Sourcing the Right Talent
Case Study Helping Fossil Attract, Hire and Onboard the Right Talent
Case Study Cabela
Case Study MSCCN
Video Case Study Shell
Video Case Study Recruiting Process Is No Longer Taxing for H&R Block
18 | Building a #SmarterWorkforce: The Future of HR
Case Study
Regus chose to work with IBM because it needed a partner with comprehensive
recruitment and assessment solutions that could lead the company through a completely
new way of working.
Overview
Regus is a global workplace provider. Nearly 2 million people across more than 100 countries
use its 2,000 locations to work daily. With an ever-expanding range of innovative products and
services, Regus enables people to work their way, whether it’s from home, on the road or in
an office.
The Need
As part of the company’s strategy to rapidly expand its network, Regus executives realized its
current recruitment practices were inadequate and radical change was needed in this area.
The Solution
Regus implemented IBM’s applicant-tracking system to standardize the recruitment process,
and added an IBM assessment tool to effectively find candidates who were better suited for
positions they applied for.
The Benefit
Regus was able to identify potential top performers faster so the company was able to meet
all its hiring needs and build a solid talent pipeline for the future. Seventy-one percent of hiring
managers indicated complete satisfaction with the new recruitment strategy. Regus’ aggressive
implementation schedule for its new recruitment strategy was on time. In 13 months, Regus
had a fully global system available in 94 countries and in 14 languages.
Read the full case study
19 | Building a #SmarterWorkforce: The Future of HR
What Is the Future of HR?
We are living in a society where information is everywhere. But in the future months
and years, what trends will unfold? Dr. Woody suggests that the use of automation
will grow. “We are entering what most people will call ‘the second machine age.’”
He explains that automation is really just augmentation, and that workers aren’t going
away, but rather gaining new skills and roles within the organization.
“We often think of automation as ‘mechanizing stuff,’ taking away jobs, and then
employees are out on the streets wondering around somewhere,” says Dr. Woody.
“When in fact, we should look at it as augmentation. Tools are helping us to do better
work so these folks can upscale. And it’s up to us to train them.”
Truitt believes that in the future, employees will be more empowered than ever.
She explains that they know what they’re worth and what they can get from companies.
Employers haven’t really caught up with this notion, but she thinks they are beginning
to listen. Truitt anticipates the need for a revolution in regard to how we treat people.
More specifically, not treating employees as a means to an end, but looking at them as
the true assets that they are.
Leadership is also changing, explains Peterson. We are transitioning from baby boomer
leadership to generation Y, and these leaders will have a different energy, which will
shift the HR industry. “So I think you’re going to see, for the better, a more engaged
and creative and personal HR industry in the near future,” says Peterson.
People power the business more so than ever
before, so we’re going to have to invest in our
employees or get back to basics.
Janine Truitt
Click to Tweet
20 | Building a #SmarterWorkforce: The Future of HR
What does this all mean for the future?
And what does 2020 look like?
Employees will want more meaning in their work life, and this will drive changes in the
future of work. There is a movement toward creating more human kinds of workplaces,
points out Gorman. She explains that we have generations who are working because
they need to pay the bills, but they’re also working for meaning.
Employees are working to integrate all the pieces of their lives so that at the end of the
day, they feel good about the meaning that’s being created in their lives.
“So the question is, how do we use talent analytics, how do we use predictive analytics
to ensure that the kinds of meaning that our employees are creating is the stuff that’s
going to keep them here and working for us?” says Gorman.
And furthermore, how can we recognize and reward in a way that doesn’t
feel meaningless?
As the byproduct, we’re seeing a rise of social entrepreneurs, socially conscious
organizations like Toms, the Kind Bar and Warby Parker, explains Dr. Woody.
“Because that’s helping attach meaning to the actual thing they’re doing, it’s the
whole ‘doing well by doing good.’”
Based on these changes, predictive hiring will no longer be optional and instead will
be a “must-have” application. Many people are still learning about this tool and how to
effectively use it. But it will play an increasingly important role as companies work to
navigate the upcoming transformations into the future of work.
There is a movement toward creating more
human kinds of workplaces.
China Gorman
Click to Tweet
21 | Building a #SmarterWorkforce: The Future of HR
References
Chapter 1
1. Aberdeen/IBM study, “Best in Class,” 2014.
2. IBM, “Raising the game – The IBM Business Tech Trends Study,” 2014.
3. IBM,” Inside the mind of Generation D,” 2014.
4. IBM, “IBM Smarter Workforce Institute and Institute for Business Value report,” 2014.
Chapter 3
1. Deloitte, “Global Human Capital Trends 2014,” 2014.
2. IBM, “New expectations for a new era,” 2014.
3. IBM, “Are traditional HR practices keeping your organization average?” October 2014.
Additional Video Resources
Futurist Interviews
Driving Innovation Using Talent Management and Analytics (China Gorman)
Mike Haberman on HR and Crowdsourcing Employee Intelligence
Joel Peterson on HR and the Growing Multigenerational Workforce
Janine Truitt on HR and Engaging Employees through Technology
Building a Smarter Workforce w/Futurist Peter Vermeulen
Dr. Woody on The Myths and Realities of Engaging Your People
22 | Building a #SmarterWorkforce: The Future of HR
Meghan M. Biro @MeghanMBiro
CEO + Founder, TalentCulture Consulting
Group/TalentCulture World of Work
Meghan M. Biro is a globally recognized HR + Talent Management practitioner, thought leader, author,
speaker and digital influencer. As founder and CEO of TalentCulture Consulting Group, she has
worked with hundreds of companies ranging from Microsoft and Google to start-ups, helping them
recruit and empower stellar talent. She also leads a worldwide online community of HR and
business leaders.
China Gorman @ChinaGorman
Strategic Advisor to Board, Great Place to Work Institute
China Gorman has extensive experience in growing high-performing, mission-driven organizations
within the competitive human capital management (HCM) marketplace, and has built a reputation
as an effective turn-around leader based on her success in improving operational effectiveness and
driving business growth.
Mike Haberman @MikeHaberman
Consultant and Partner, Omega HR Solutions, Inc.
As an experienced HR consultant, advisor, speaker and instructor, Mike Haberman primarily works
with small to mid-size organizations on all HR issues with a focus on consulting in employment
compliance and supervisory training. He has been teaching the SHRM certification preparation
course for approximately 15 years as well as HR fundamentals. Mike is the author of the HR
Observations blog and writes for Blogging4Jobs and several other blogs.
Bryan Kramer @bryankramer
CEO & Founder, PureMatter
Author of the new book Human to Human: #H2H, Bryan Kramer has extensive experience in brand
marketing with a focus on integrated communications and strategic business planning. Brian is
an active blogger with more than 12K readers each month. He’s often a featured contributor on
SocialMediaToday and Business2Community.
Appendix
The roundtable included a wide variety of industry experts and IBM subject matter experts. Here are a
few whose insights were key contributions to this eBook.
23 | Building a #SmarterWorkforce: The Future of HR
Brian Moran @brianmoran
Founder & CEO, Brian Moran & Associates
Brian Moran spent the last 20+ years helping America’s entrepreneurs realize their dreams. Prior to
starting his third company in 2012, he was the Executive Director of Sales Development at the Wall
Street Journal overseeing the financial and small business markets across the WSJ franchise.
Joel Peterson @joelyoh
Associate, Director of Human Resources, Goshow Architects
Joel Peterson is an HR generalist and business partner with progressive human resources experience
focused on change management, organizational development, talent management, and retention
strategy. Joel oversees all aspects of the HR function, including administration of HR policies and
procedures, recruitment, benefits and compensation, performance management, professional
development and training, and employee relations.
Janine Truitt @CzarinaofHR
Chief Innovations Officer, Talent Think Innovations
Janine Truitt is certified in employee relations, human resources, selection and staffing, strategic HR
management and the HR directors graduate program through Cornell University. She has over nine
years of experience as an HR professional in healthcare, home care, scientific, staffing and
consulting companies.
Peter Vermeulen @pvermeul_peter
VP HR Americas, The Linde Group
Peter Vermeulen is a global HR professional with significant cross-country and cross-functional
expertise in top companies. Peter is GPHR certified, has 15+ years of experience in all areas of
human resources management, and has led teams to achieve best practices.
Michael “Dr. Woody” Woodward @DrWoody
Organizational Psychologist & Executive Coach, Human Capital Integrated
Dr. Woody is a Ph.D., organizational psychologist, executive coach, speaker, and media personality.
He is the author of the Amazon.com top-selling career book The You Plan and he writes a weekly
column called The Career Hot Seat focused on workplace challenges. Dr. Woody works with clients
on team challenges and building management and leadership capacity through custom training
programs and corporate retreats.
24 | Building a #SmarterWorkforce: The Future of HR
IBM Kenexa Solutions
IBM Kenexa Talent Acquisition Suite is a set of products
that work together to help streamline and optimize employee
recruitment and onboarding. This comprehensive hiring
solution helps organizations attract, hire and onboard top
talent using an automated process, incorporating the latest
mobile and enterprise-grade social technologies. And its
resources like this one that will promote engagement as
never before.
As companies build out their next-generation HR systems, Kenexa provides choice
and flexibility by welcoming all HR data and applications to assist in achieving
business goals.
The multivendor approach makes HR professionals more productive, with a complete
and consistent view of everything they need to effectively perform the job in a familiar,
common interface. They can analyze any HR data for deeper insights into workforce
issues, which allows a deeper focus on strategic initiatives that will positively impact
and grow the business.
To learn more about IBM Kenexa solutions,
go to IBM.com/kenexa-unlocked
25 | Building a #SmarterWorkforce: The Future of HR
© Copyright IBM Corporation 2015
IBM
Route 100
Somers, NY 10589
U.S.A.
Produced in the United States of America
June 2015
All Rights Reserved
IBM, the IBM logo, ibm.com and Social Business are trademarks or registered trademarks of International
Business Machines Corporation in the United States, other countries, or both. If these and other IBM
trademarked terms are marked on their first occurrence in this information with a trademark symbol (® or ™),
these symbols indicate U.S. registered or common law trademarks owned by IBM at the time this information
was published. Such trademarks may also be registered or common law trademarks in other countries.
A current list of IBM trademarks is available on the Web at “Copyright and trademark information” at
ibm.com/legal/copytrade.shtml. Other company, product and service names may be trademarks or service
marks of others. References in this publication to IBM products and services do not imply that IBM intends to
make them available in all countries in which IBM operates.

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Building a Smarter Workforce: What Is the Future of HR?

  • 1. #NewWayToWork Building a #SmarterWorkforce: What Is the Future of HR? Share this eBook Futurist Insights Series
  • 2. 2 | Building a #SmarterWorkforce: The Future of HR Foreword Written by Brian Moran, Roundtable Event Moderator Recently I had the chance to serve as the roundtable moderator at an IBM influencer roundtable initiative during the Society of Human Resource Management 2015 Conference (#SHRM15). We brought together some of the brightest and most talented individuals in the HR space for a roundtable discussion on building a smarter workforce and the future of work. Their backgrounds varied, but all of the participants are recognized as thought leaders and visionaries in their respective disciplines. The attendees discussed many key HR topics, including workforce analytics, open HR, employee engagement and talent acquisition. They shared a variety of insights in these areas and answers to many questions, such as: • What are some of the biggest pain points that companies deal with today? • What innovations in HR are taking place? • What development or trend will have the largest impact on the future of HR? The results of the roundtable discussion shed light on the current challenges of HR, and also created a roadmap outlining the future of HR and showing how companies can prepare for the changes ahead. We had a number of great conversations at the event, which I’m very excited to recap and share with you.
  • 3. 3 | Building a #SmarterWorkforce: The Future of HR Chapter 1: Workforce Analytics Investment in human capital is a critical aspect of any corporate strategy. Today, more than ever before, HR professionals need to define their human capital requirements in a business performance context. And yet more often than not, organizations have only a partial understanding of their current and future workforce needs because they’re not using workforce analytics. According to a 2014 Aberdeen/IBM study,1 best-in-class companies are 3.7 times more likely to train for analytics skills and five times more prone to hire analytics professionals. This is probably because workforce analytics provide a fact-based framework that empowers HR professionals to make more informed decisions that ultimately allow their organization to seize opportunities and differentiate their value in the market. Many companies, however, are struggling with the adoption of analytics. Adopting Talent Analytics One of the biggest hurdles for companies to overcome is really understanding analytics: how they work and how to use them. “Companies are leaving a lot of talent behind because they don’t have the insights or they aren’t looking at enough different things,” says Janine Truitt, Chief Innovations Officer at Talent Think Innovations. “We’re sitting on gold mines in a lot of situations.” Truitt further explains that many companies that she has worked for are not yet at a point of understanding analytics. “They see it, they read about it, but it’s a larger-than-life concept for them because they have issues even reporting at an ad hoc level,” says Truitt. As highlighted in the IBM Business Tech Trends study,2 the use of analytics is a key differentiating factor for leading businesses. With the huge quantity of people data in many organizations, the HR function could be at the forefront of realizing the benefits of this strategic capability, but many HR executives say that they don’t know where to start.
  • 4. 4 | Building a #SmarterWorkforce: The Future of HR Leading analyst Josh Bersin recently pointed out that HR is sitting on a large amount of untapped data but is only just starting to find ways to put it to work. According to Inside the mind of Generation D, a study of how organizations are using data and analytics,3 HR is currently one of the lowest-ranked functions in terms of benefiting from analytics. This is validated by a recent IBM Smarter Workforce Institute and Institute for Business Value report that found that “less than 20 percent of organizations are able to apply predictive analytics to address important people issues.”4 Another pain point for many companies is building capability. To be successful, they must figure out why they need the data, and what having the data will help them change. They also need people on their team who are good not only at analytics and but also at sharing the significance of the results. The absence of this skill combination is a stumbling block for many companies. “I saw that at one company they hired a couple of Ph.D.s who are excellent in analytics, but not very good at telling the story and visualizing the data,” says Peter Vermeulen, VP HR Americas, The Linde Group. “So you need that mixture of different capabilities to be successful.” A balance must also be struck between analyzing the historical data and using predictive analytics. Truitt explains that she has observed a few companies that have hired statisticians to work in that capacity. But in the future, this could be an entirely different role—one with a unique intersection of talents: A person who not only understands industrial psychology but also has a background as a statistician. Furthermore, the adoption of talent analytics will be a powerful tool for this shifting role.
  • 5. 5 | Building a #SmarterWorkforce: The Future of HR For example, IBM® Kenexa® Talent Insights enables human resource professionals to make strategic, fact-based decisions based on talent analytics that can help drive business outcomes. HR professionals can type in what they need from their talent data, and the results are quickly displayed in an easily understood visual format. Through this helpful resource, organizations are able to access tools to: • Get answers to talent questions faster, using talent analytics on any HR data • Make more fact-based talent decisions through cognitive capabilities that understand the HR language • Discover new relevant paths to explore for better decision-making using patterns and relationships in the data that surface automatically as visualizations, with the option to explore alternative relevant paths. They can begin the analysis by asking a question or selecting a suggested question. (Watch this Talent Insight demo to learn more) Creating a Data-Driven HR Culture As companies grow, they often use automation software to support and fuel that growth. But a stronger reliance on automation also means that they must work diligently to maintain and preserve their company’s culture. Bryan Kramer, CEO and Founder of PureMatter, recently visited Tesla Motors. He received a tour of the entire factory, which covers 54 million square feet. The company is building 1,000 cars a week, and they want to double and perhaps even triple that number. He asked every single person why he or she works there, and the consensus was that they all want to rid cars of the need for gas. Every employee, without exception, was clear about that distinct vision.
  • 6. 6 | Building a #SmarterWorkforce: The Future of HR “My whole point on that is that Tesla instilled a culture of automation within the context of building cars,” says Kramer. “They are all building the same car, 1,000 of them a week, yet they all know that they are ridding the world of the need for gas.” The reason the culture was consistent and clear was because of leadership. “It must start from the top,” says Mike Haberman, Consultant and Partner at Omega HR Solutions Inc. “Because if the person leading the company doesn’t have that purpose, your employees are not going to have that purpose.” Wendy Tandon, Director of Product Management at IBM, explains that workforce analytics isn’t driving the culture. The culture exists first. After that, you’re just cultivating and using analytics to find the people who are the right fit for that culture. What makes this possible is cross-collaboration between different functions, suggests Truitt. Truitt explains that there are specific industries where finding the right people is exceedingly difficult. Moreover, many organizations are leaving a lot of talent behind because they lack access to insights, or they’re not looking at the right elements. In a lot of situations we have a golden harvest we’re not capturing; we’re not cultivating the people that we already have. Additional Resources Report Starting the Workforce Analytics Journey: The First 100 Days Report Building a Business Case for Talent Analytics: MWD Analyst Report Video 10 Steps to Workforce Analytics Success in The First 100 Days White Paper Active Employee Participation in Workforce Analytics Guide How Analytics Are Shaping a Smarter Workforce Demo IBM Kenexa Talent Insights Powered by Watson Analytics
  • 7. 7 | Building a #SmarterWorkforce: The Future of HR Case Study McDonald’s Using assessments to improve the customer experience and drive better business results. The Need The McDonald’s UK recruitment team needed to enhance its selection process for new employees by using a customer-centric strategy to attract and hire candidates with the right fit for every job. The Solution McDonald’s selected IBM to create a series of assessment tests designed to pinpoint suitable candidates faster. The Benefit • Four months after the launch, the number of applicants for crew positions dropped 35 percent, while the number of managerial applicants dropped 50 percent, ensuring those who applied understood and wanted to work for the company. • The savings allowed McDonald’s to establish and support a centralized assessment schedule for management positions across the UK, leading to greater consistency of hiring practices. • The new assessment centers cut time to hire for management positions by 2 percent, and slashed the applicants to hire ratio by nearly 66 percent. Solution components: • IBM Kenexa Behavioral Assessments for Hourly Roles on Cloud • IBM Kenexa Behavioral Assessments for Managerial Roles on Cloud Read the full case study
  • 8. 8 | Building a #SmarterWorkforce: The Future of HR Chapter 2: Open HR We live in a world of increasing integration within the cloud, and human capital management (HCM) is no exception. HCM has typically been the purview of one-size-fits-all suites hosted onsite. The cloud ecosystem, however, creates new opportunities for integration and cooperation between software providers. This means that HR professionals can access a greater array of tools from multiple vendors to emulate an experience that’s consistent with working with a single company. ` Innovations Taking Place The average human resources department has deployed a plethora of applications that simply aren’t talking to each other, explains China Gorman, Strategic Advisor to the Board of Great Place to Work Institute. “It’s something like an average of 18 different HR applications that aren’t plugged in to anything central,” says Gorman. “Yet, they are running concurrently, and the location of the devices is variable, with some residing on premises and others in the cloud. But the point is they are not communicating, so getting to the analytics would just be impossible.” #NewWayToWork “I see Open HR being akin to crowdsourcing. It allows companies to use the wisdom of the cloud ecosystem to find the best solution to their HCM software issues.” - Michael D. Haberman @HRComplianceGuy Futurists Share Why Open HR Is Transforming a #SmarterWorkforce The Kenexa Open HR initiative gives clients choice and flexibility as they build out their next generation HR systems by welcoming all HR data and applications to assist in achieving business goals. To learn more about IBM Kenexa Open HR Solutions visit www.ibm.com/kenexa-unlocked “An open solution allows big HR and Talent shops to move quickly and engage the technology they need to better their business.” - Tim Sackett @TimSackett “Simply put..best tech + best tools = best talent and more profits.” - JoAnn Corley @JoAnnCorley “Companies adopting open HR, cloud-based solutions will realize clear competitive advantages in workforce producitivity and employee engagement as business becomes more mobile and remote.” - Brian Moran @BrianMoran “Much in the way open source code allowed for rapid development and improvement of software, open HR allows for custom self-enhancement by those who know their needs the best, the customer!” - Dr. Woody @DrWoody “All sustainable change happens at the ground level, and with 'employees' increasingly being treated as 'consumers' of HR services, an open approach is foundational to the future of our industry.” - Mark Stelzner @stelzner “Open HR allows vendors to better serve the customer. Regardless of their niche, HR tech vendors can collaborate and compliment one another that may allow better fluidity of information and increased productivity for customers.” - Janine Truitt @CzarinaofHR “I like Open Anything. Seems odd to me that anyone would consider anything but Open once they move to Open.” - Warren Whitlock @WarrenWhitlock Meet all of our #NewWayToWork Futurists Click to see infographic
  • 9. 9 | Building a #SmarterWorkforce: The Future of HR She says that if the open environment is really coming, the real value will be for businesses that are able to have their 18 different systems centrally plugged in. Once the systems are connected, companies have the power to extract all that data. For example, Joel Peterson, Associate Director of Human Resources at Goshow Architects, explains that his company decided to take the leap into the cloud for two reasons. First, it was the way of the future, and second, he didn’t have time to manage everything as the HR department of one. So he migrated to the cloud within a single platform that allows him to be cutting-edge and get everything done at once. “We’ve got two different things happening out there in a cloud,” says Peterson. “And together, they made us about 200 percent more efficient. Now I can tell my employees, ‘Hey, you want to work from home? Work from home.’ And that’s because we’ve got the platforms up in the cloud that allow anywhere access.” In addition to integrating HR applications, continuity of service will also remain important in the future, explains Truitt. She has worked in enterprise resource planning (ERP) and observed firsthand how you can customize something almost to paralysis, and then go through a system update and lose everything you just customized. “This is painful, because you’ve lost productivity, which spurs frustration,” says Truitt. “But with the cloud, you eliminate all of that. Because overall, the main concern of businesses is keeping things going no matter what, and this is one of the main pluses of being in the cloud.”
  • 10. 10 | Building a #SmarterWorkforce: The Future of HR Open Solution Changes A large barrier to adopting this technology is that people within organizations greatly overestimate their ability to identify talent. They often believe they are good at hiring people with the best fit; however, as human beings, our decision-making is flawed. It’s through analytics that we can minimize the blind spots during this process. Michael “Dr. Woody” Woodward, Ph.D., an organizational psychologist and executive coach, says that through his work with executives and managers, he’s gained insight into the crazy criteria that they’re using to determine who will be great at managing other people. They are often falsely assuming that since an individual is talented at a job, that person must be great at managing other people. “So we’re failing miserably,” says Dr. Woody. “And it’s partly, I believe, because we’re not using good data and good metrics. We’re not being objective about it.” People within organizations greatly overestimate their ability to identify talent. Brian Moran Click to Tweet
  • 11. 11 | Building a #SmarterWorkforce: The Future of HR As we learn more about the faulty decision-making of humans, analytics will no doubt become more appealing to organizations as they gravitate away from “gut-based” hiring decisions. A multi-vendor approach not only assists with solving these challenges but also assists HR professionals with productivity. They have a complete and consistent view of everything they need to perform their job within a familiar, common interface. However, until recently HR teams were forced to select a one-size-fits-all suite for talent management and core HR applications. But this model is changing through new and unlikely partnerships. Take, for example, the IBM and SAP partnership. They came together for cloud-to-cloud product integrations, in which they are integrating elements of their talent management and core HCM offerings. This makes product selection easier, and gets rid of standalone talent management and core suites. These changes will positively alter the experience moving forward, as HR teams have access to better data, stronger solutions and an overall more powerful experience. As we learn more about the faulty decision-making of humans, analytics will no doubt become more appealing to organizations as they gravitate away from “gut-based” hiring decisions. Additional Resources Article IBM and SAP Partnership: An Unlikely Marriage or a Force to Be Reckoned With? Article IBM and SAP Integrated Talent Management Offerings Will Disrupt the HCM Market Article IBM, SAP Team to Advance Talent Management Announcement Influencer Sentiments on IBM SAP Partnership Announcement Guide Opening up New Possibilities in HR Interview Jim Lundy on IBM and SAP coming together for better client value
  • 12. 12 | Building a #SmarterWorkforce: The Future of HR Chapter 3: Employee Engagement and Acquisition Seventy-eight percent of business leaders rated retention and engagement urgent or important, according to the 2014 Deloitte Global Human Capital Trends report.1 Giving rise to this concern is the fact that the increasingly global economy and the ability to telework are making it easier than ever for high performers to switch jobs. The workforce is also changing. It’s multigenerational, and this transition brings a new set of employee expectations and pain points. Moreover, it further highlights why HR professionals need to be empowered to effectively engage with employees on a consistent basis. “Companies today are facing a really unique and awesome challenge, in the sense that, they have so many generations represented in their workforce,” says Peterson. “Right now, I have four different generations: the Silent Generation, the Baby Boomers, the Gen Xers and the Gen Y. And it’s a very dynamic time for everyone to step up and engage.” So how can talent management professionals measure employee engagement in a more holistic, integrated and real-time way? And what does it take to drive high levels of employee commitment and passion? Hiring a Diverse Workplace When thinking about engagement and the future of work, it’s important to realize that we’re going to have to be open to much more diversity in the workplace, explains Haberman. “If we continue with the behavioral interviewing, ‘look like me, sound like me,’ we’re not going to increase that diversity at all,” says Haberman. Analytics could provide an opportunity to hire more diverse talent in the workplace, explains Peter Vermeulen.
  • 13. 13 | Building a #SmarterWorkforce: The Future of HR “One of the most exciting things about talent analytics, where it meets human resources and humans, is we’re moving beyond the gut check for, ‘Hey, that person is a good fit for your organization,’ to ‘we have more data now and we can actually back this up,’” says Meghan Biro, CEO and Founder of TalentCulture Consulting Group/ TalentCulture World of Work. The ability to hire a more diverse workforce through analytics and to engaging existing high-potential talent will largely contribute to success in the future. Engaging High-Potential Employees Only 31 percent of CHROs believe they understand their customers well today, while 78 percent believe they will need to have a greater understanding in the next three to five years. Unsurprisingly, financial outperformers are more likely to already have a stronger understanding of their customers (44 percent versus 28 percent of all other firms).2 Therefore, companies should be engaging high-potential employees very differently than they engage the typical employee in a company. “So the fact is that you have performers out there who are special folks, who are really proactive, performing at a high level,” says Dr. Woody. “And really, these are the folks you want to hold on to, so you must think differently about how you will engage them.” Treating all employees in the same way is a failing proposition. You should start with targeting performance, and then zero in on who is really doing well. IBM talent analytics and surveys, which are powered by Watson Analytics, can place cognitive analytics into the hands of all HR professionals, enabling them to gain valuable insights from recruiting, onboarding and performance management data.
  • 14. 14 | Building a #SmarterWorkforce: The Future of HR How great could we be if we knew as much about our people as we know about customers? Duke Daehling Since this HR solution understands the language of HR, users simply type in what they wish to see, and the results are displayed in easy-to-consume interactive visualizations. Patterns and relationships in the data are automatically uncovered, and recommendations on alternative paths to explore are offered. Peterson suggests that how you engage with high-potential employees also integrates with developing managers. “If you don’t acknowledge and engage people who are naturally, or through their passion, demonstrating leadership, you’re going to lose them,” he says. “So by all means, I think that any company that is in touch with their employees is going to engage a high-potential person in a different way. That doesn’t have to be about money, though.” In fact, 69 percent of high-potential employees feel they are fairly paid, compared to 44 percent of all other employees.3 Yet, they may also feel a push to go to another organization. A manager’s worst nightmare is learning that a competitor has poached his or her best employee. Peterson explains that while money is important, giving employees space to take on projects they feel passionate about, such as community involvement, and finding ways to work their passions into what they do at the office are very effective forms of engagement. High-potential employees are altruistic to a point, but they must be acknowledged, or they will leave. Click to Tweet
  • 15. 15 | Building a #SmarterWorkforce: The Future of HR Annual Employee Engagement Surveys versus Continuous Listening Many HR teams struggle with the best way to gather feedback from employees. They wonder whether they should focus on annual engagement surveys or continual listening—or perhaps a combination of both. Peterson feels that continual listening is very important, but it needs to be tied in to any sort of feedback mechanism you put in place. He further explains that the annual survey is a very effective check-in. The survey may be anonymous, and therefore provides employees with time to sit down, focus and share what’s on their minds. In contrast, continual listening is more in the moment and spontaneous, yet also very valuable. However, with annual surveys, there are risks. For example, Truitt explains that many employees are “over engagement surveys” because they have been doing them for so long. They’ve invested their time, poured their heart and soul into it, and feel disappointment when nothing happens as a result of their efforts. “So there’s just a whole lot of information sitting on somebody’s desk without any action,” says Truitt. “But I still think annual surveys are valuable. It’s the easiest way that you can actually elicit that kind of information from somebody.” Many employees are over engagement surveys because they have been doing them so long. Janine Truitt Click to Tweet
  • 16. 16 | Building a #SmarterWorkforce: The Future of HR Truitt recommends that companies using annual surveys be very clear about telling employees that the provided information is valued. Once this is communicated, action must follow. Continuous listening must also be carried on, with leaders keeping their ears to the ground. They should also be willing to have individual conversations with people about how to fix various things. Haberman explains that the annual survey has always been a method for taking your employees’ temperature. “The unfortunate thing with that is it is a once-a-year event,” he says. “If you’re in a very busy part of your year when you take that temperature, you’re going to get a whole different set of feelings than if you take it six months later when everybody is a little bit more relaxed.” Haberman favors pulse-type surveys, where you put together a very short survey once a month or once a week. “I have one client that does annual surveys, and one was done almost a year ago,” he says. “They’re still working off the data they found from that annual survey. And now it’s a year later, and how relevant is that information?” An effective way of handling these challenges is through IBM employee engagement surveys. They delve into what matters most to employees, which gives HR insights for driving engagement, because understanding what motivates and engages employees can help drive behavior change, improve workgroup effectiveness, enhance individual development and increase retention.
  • 17. 17 | Building a #SmarterWorkforce: The Future of HR The Socially Connected Workforce In addition to annual surveys and continual listening, the future will hold new and innovative ways to capture employee feedback. For example, Haberman explains that the DNA of business is going to be changed through crowdsourcing. “By listening to employees’ voices through crowdsourcing, we’ll get a much better idea of what really appeals to them,” he says. HR teams have long wondered whether employees are engaged, connected and happy, and they will no longer need to guess. However, the value of crowdsourcing is really in the information, Haberman points out. He believes that it will significantly alter how we engage with people and what structures we put in place, as compared to the past, when HR teams were forced to figure this information out themselves. Additional Resources Demo IBM Kenexa Talent Insights Powered by Watson Analytics Brief Solution Brief Brandon Hall: Talent Acquisition in Retail Report Analyst Research Talent Acquisition Technology: Today, Tomorrow, and Beyond White Paper Independent Workers: Does National Culture Matter? White Paper The Art of Sourcing the Right Talent Case Study Helping Fossil Attract, Hire and Onboard the Right Talent Case Study Cabela Case Study MSCCN Video Case Study Shell Video Case Study Recruiting Process Is No Longer Taxing for H&R Block
  • 18. 18 | Building a #SmarterWorkforce: The Future of HR Case Study Regus chose to work with IBM because it needed a partner with comprehensive recruitment and assessment solutions that could lead the company through a completely new way of working. Overview Regus is a global workplace provider. Nearly 2 million people across more than 100 countries use its 2,000 locations to work daily. With an ever-expanding range of innovative products and services, Regus enables people to work their way, whether it’s from home, on the road or in an office. The Need As part of the company’s strategy to rapidly expand its network, Regus executives realized its current recruitment practices were inadequate and radical change was needed in this area. The Solution Regus implemented IBM’s applicant-tracking system to standardize the recruitment process, and added an IBM assessment tool to effectively find candidates who were better suited for positions they applied for. The Benefit Regus was able to identify potential top performers faster so the company was able to meet all its hiring needs and build a solid talent pipeline for the future. Seventy-one percent of hiring managers indicated complete satisfaction with the new recruitment strategy. Regus’ aggressive implementation schedule for its new recruitment strategy was on time. In 13 months, Regus had a fully global system available in 94 countries and in 14 languages. Read the full case study
  • 19. 19 | Building a #SmarterWorkforce: The Future of HR What Is the Future of HR? We are living in a society where information is everywhere. But in the future months and years, what trends will unfold? Dr. Woody suggests that the use of automation will grow. “We are entering what most people will call ‘the second machine age.’” He explains that automation is really just augmentation, and that workers aren’t going away, but rather gaining new skills and roles within the organization. “We often think of automation as ‘mechanizing stuff,’ taking away jobs, and then employees are out on the streets wondering around somewhere,” says Dr. Woody. “When in fact, we should look at it as augmentation. Tools are helping us to do better work so these folks can upscale. And it’s up to us to train them.” Truitt believes that in the future, employees will be more empowered than ever. She explains that they know what they’re worth and what they can get from companies. Employers haven’t really caught up with this notion, but she thinks they are beginning to listen. Truitt anticipates the need for a revolution in regard to how we treat people. More specifically, not treating employees as a means to an end, but looking at them as the true assets that they are. Leadership is also changing, explains Peterson. We are transitioning from baby boomer leadership to generation Y, and these leaders will have a different energy, which will shift the HR industry. “So I think you’re going to see, for the better, a more engaged and creative and personal HR industry in the near future,” says Peterson. People power the business more so than ever before, so we’re going to have to invest in our employees or get back to basics. Janine Truitt Click to Tweet
  • 20. 20 | Building a #SmarterWorkforce: The Future of HR What does this all mean for the future? And what does 2020 look like? Employees will want more meaning in their work life, and this will drive changes in the future of work. There is a movement toward creating more human kinds of workplaces, points out Gorman. She explains that we have generations who are working because they need to pay the bills, but they’re also working for meaning. Employees are working to integrate all the pieces of their lives so that at the end of the day, they feel good about the meaning that’s being created in their lives. “So the question is, how do we use talent analytics, how do we use predictive analytics to ensure that the kinds of meaning that our employees are creating is the stuff that’s going to keep them here and working for us?” says Gorman. And furthermore, how can we recognize and reward in a way that doesn’t feel meaningless? As the byproduct, we’re seeing a rise of social entrepreneurs, socially conscious organizations like Toms, the Kind Bar and Warby Parker, explains Dr. Woody. “Because that’s helping attach meaning to the actual thing they’re doing, it’s the whole ‘doing well by doing good.’” Based on these changes, predictive hiring will no longer be optional and instead will be a “must-have” application. Many people are still learning about this tool and how to effectively use it. But it will play an increasingly important role as companies work to navigate the upcoming transformations into the future of work. There is a movement toward creating more human kinds of workplaces. China Gorman Click to Tweet
  • 21. 21 | Building a #SmarterWorkforce: The Future of HR References Chapter 1 1. Aberdeen/IBM study, “Best in Class,” 2014. 2. IBM, “Raising the game – The IBM Business Tech Trends Study,” 2014. 3. IBM,” Inside the mind of Generation D,” 2014. 4. IBM, “IBM Smarter Workforce Institute and Institute for Business Value report,” 2014. Chapter 3 1. Deloitte, “Global Human Capital Trends 2014,” 2014. 2. IBM, “New expectations for a new era,” 2014. 3. IBM, “Are traditional HR practices keeping your organization average?” October 2014. Additional Video Resources Futurist Interviews Driving Innovation Using Talent Management and Analytics (China Gorman) Mike Haberman on HR and Crowdsourcing Employee Intelligence Joel Peterson on HR and the Growing Multigenerational Workforce Janine Truitt on HR and Engaging Employees through Technology Building a Smarter Workforce w/Futurist Peter Vermeulen Dr. Woody on The Myths and Realities of Engaging Your People
  • 22. 22 | Building a #SmarterWorkforce: The Future of HR Meghan M. Biro @MeghanMBiro CEO + Founder, TalentCulture Consulting Group/TalentCulture World of Work Meghan M. Biro is a globally recognized HR + Talent Management practitioner, thought leader, author, speaker and digital influencer. As founder and CEO of TalentCulture Consulting Group, she has worked with hundreds of companies ranging from Microsoft and Google to start-ups, helping them recruit and empower stellar talent. She also leads a worldwide online community of HR and business leaders. China Gorman @ChinaGorman Strategic Advisor to Board, Great Place to Work Institute China Gorman has extensive experience in growing high-performing, mission-driven organizations within the competitive human capital management (HCM) marketplace, and has built a reputation as an effective turn-around leader based on her success in improving operational effectiveness and driving business growth. Mike Haberman @MikeHaberman Consultant and Partner, Omega HR Solutions, Inc. As an experienced HR consultant, advisor, speaker and instructor, Mike Haberman primarily works with small to mid-size organizations on all HR issues with a focus on consulting in employment compliance and supervisory training. He has been teaching the SHRM certification preparation course for approximately 15 years as well as HR fundamentals. Mike is the author of the HR Observations blog and writes for Blogging4Jobs and several other blogs. Bryan Kramer @bryankramer CEO & Founder, PureMatter Author of the new book Human to Human: #H2H, Bryan Kramer has extensive experience in brand marketing with a focus on integrated communications and strategic business planning. Brian is an active blogger with more than 12K readers each month. He’s often a featured contributor on SocialMediaToday and Business2Community. Appendix The roundtable included a wide variety of industry experts and IBM subject matter experts. Here are a few whose insights were key contributions to this eBook.
  • 23. 23 | Building a #SmarterWorkforce: The Future of HR Brian Moran @brianmoran Founder & CEO, Brian Moran & Associates Brian Moran spent the last 20+ years helping America’s entrepreneurs realize their dreams. Prior to starting his third company in 2012, he was the Executive Director of Sales Development at the Wall Street Journal overseeing the financial and small business markets across the WSJ franchise. Joel Peterson @joelyoh Associate, Director of Human Resources, Goshow Architects Joel Peterson is an HR generalist and business partner with progressive human resources experience focused on change management, organizational development, talent management, and retention strategy. Joel oversees all aspects of the HR function, including administration of HR policies and procedures, recruitment, benefits and compensation, performance management, professional development and training, and employee relations. Janine Truitt @CzarinaofHR Chief Innovations Officer, Talent Think Innovations Janine Truitt is certified in employee relations, human resources, selection and staffing, strategic HR management and the HR directors graduate program through Cornell University. She has over nine years of experience as an HR professional in healthcare, home care, scientific, staffing and consulting companies. Peter Vermeulen @pvermeul_peter VP HR Americas, The Linde Group Peter Vermeulen is a global HR professional with significant cross-country and cross-functional expertise in top companies. Peter is GPHR certified, has 15+ years of experience in all areas of human resources management, and has led teams to achieve best practices. Michael “Dr. Woody” Woodward @DrWoody Organizational Psychologist & Executive Coach, Human Capital Integrated Dr. Woody is a Ph.D., organizational psychologist, executive coach, speaker, and media personality. He is the author of the Amazon.com top-selling career book The You Plan and he writes a weekly column called The Career Hot Seat focused on workplace challenges. Dr. Woody works with clients on team challenges and building management and leadership capacity through custom training programs and corporate retreats.
  • 24. 24 | Building a #SmarterWorkforce: The Future of HR IBM Kenexa Solutions IBM Kenexa Talent Acquisition Suite is a set of products that work together to help streamline and optimize employee recruitment and onboarding. This comprehensive hiring solution helps organizations attract, hire and onboard top talent using an automated process, incorporating the latest mobile and enterprise-grade social technologies. And its resources like this one that will promote engagement as never before. As companies build out their next-generation HR systems, Kenexa provides choice and flexibility by welcoming all HR data and applications to assist in achieving business goals. The multivendor approach makes HR professionals more productive, with a complete and consistent view of everything they need to effectively perform the job in a familiar, common interface. They can analyze any HR data for deeper insights into workforce issues, which allows a deeper focus on strategic initiatives that will positively impact and grow the business. To learn more about IBM Kenexa solutions, go to IBM.com/kenexa-unlocked
  • 25. 25 | Building a #SmarterWorkforce: The Future of HR © Copyright IBM Corporation 2015 IBM Route 100 Somers, NY 10589 U.S.A. Produced in the United States of America June 2015 All Rights Reserved IBM, the IBM logo, ibm.com and Social Business are trademarks or registered trademarks of International Business Machines Corporation in the United States, other countries, or both. If these and other IBM trademarked terms are marked on their first occurrence in this information with a trademark symbol (® or ™), these symbols indicate U.S. registered or common law trademarks owned by IBM at the time this information was published. Such trademarks may also be registered or common law trademarks in other countries. A current list of IBM trademarks is available on the Web at “Copyright and trademark information” at ibm.com/legal/copytrade.shtml. Other company, product and service names may be trademarks or service marks of others. References in this publication to IBM products and services do not imply that IBM intends to make them available in all countries in which IBM operates.