1.
© Deloitte LLP and affiliated entities. 2
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2.
. 1Global Competitiveness Report 2015, 1The 2016 Deloitte Millennial Survey
© Deloitte LLP and affiliated entities. 3
Globally, Canada places 18th on
technological readiness1 and 29th on
technology absorption.
61% of Canadian millennials plan to leave
their organization in the next 5 years2.
Globally, Canadian organizations rank 23rd
in their capacity to innovate.
Canadian organizations are 23% less
productive than the US, and the gap is
growing1.
STATE OF INNOVATION

3.
4© Deloitte LLP and affiliated entities.
What talent issues are important to Canadian business
and HR leaders? And how ready are they really to
address them? Our survey reveals some discrepancies.

4.
5
IMPORTANCE AND READINESS
© Deloitte LLP and affiliated entities.
Engagement
Culture
Leadership awakened
Organizational structure
HR skills
Learning
People analytics
Design thinking
Digital HR
Contingent workforce
41%
21%
27%
22%
36%
32%
48%
33%
52%
42%
62%
67%
74%
76%
78%
79%
89%
90%
90%
91%
Importance Readiness

5.
6
TREND 1
ENGAGEMENT
© Deloitte LLP and affiliated entities.
Canadian companies have yet to catch up
with the realities of their workforce. It’s
causing employees to disengage.

6.
7
TREND 2
CULTURE
There is a significant gap in how leaders and
employees view their organization’s ability to
drive the desired culture.
© Deloitte LLP and affiliated entities.

7.
8
TREND 3
LEADERSHIP
© Deloitte LLP and affiliated entities.
Only 18% of respondents
have faith in their leadership
bench strength.
54%
Adequate
23%
Weak
5%
Very weak
2%
Very strong
16%
Strong

8.
9
TREND 4
ORGANIZATION DESIGN
Only 7% of organizations are structured by cross-function or
by project/program. A greater percentage (43%) is still
structured by function.
© Deloitte LLP and affiliated entities.
The external business environment demands flexible, adaptable
networks of teams and resources. Companies are decentralizing
authority and eliminating bureaucracy in response.

9.
10
TREND 5
HR SKILLS
For HR to truly be a business partner, it needs have a deep
understanding of business issues and of how HR can have an
impact on the business.
© Deloitte LLP and affiliated entities.
of respondents, both HR and non-HR, say their
company’s HR functions have a very good
understanding of their company’s products,
services and profit models.
14%
of respondents report their organization is adequate
or excellent in driving major business change (such as
organizational design and workforce transition); 30%
say it’s weak.
70%
8% report their organization’s HR is highly skilled in
addressing global HR and talent issues.

10.
of respondents cite corporate learning as the
primary means of employee development.
of respondents rate the effectiveness of current
training and development programs as either
effective or very effective.
11
18%
16%
TREND 6
LEARNING
© Deloitte LLP and affiliated entities.
18% Of respondents say their organizations use Massive
Open Online Courses (MOOCs) to support employee
development.

11.
of respondents rate the quality of the data
they have available for HR analytics as
poor, and only 2% says it’s very good.
12
28%
TREND 7
PEOPLE ANALYTICS
© Deloitte LLP and affiliated entities.
5%5%
15%
14%
18%
13%13%
18%
Areas where HR analytics is used
Recruiting
and sourcing
Retention
and attrition
prediction
Workforce
planning
Compensation Benefits Performance
management
Career
progression
and succession
management
Other

12.
of respondents say they have a very good
understanding of design thinking and 14%
have a good understanding.
of respondents say design thinking is
not very or not at all prevalent in their
HR and talent programs.
13
65%
11%
TREND 8
DESIGN THINKING
Design thinking puts the employee experience first,
helping to improve productivity by designing
enjoyable, compelling and simple solutions. It’s most
commonly practised in the brand/marketing, product
development, and customer-service areas.
© Deloitte LLP and affiliated entities.

13.
of respondents say their organization
has an understanding of best-in-class
in digital HR.
of respondents say their organization is
considering changes in its digital HR
capability, and 31% are currently
revamping theirs.
14
10%
33%
TREND 9
DIGITAL HR
The workforce is filling with digital natives, who expect digital
experiences on the job. HR has an opportunity to take the
lead and show the C-suite how digitization is a business
transformation, not “just” an HR one.
© Deloitte LLP and affiliated entities.

14.
15
42%
64%
say the impact of increasing
automation will decrease their overall
staffing levels in the next 1-3 years.
say there is a need for new skills in the
workforce.
TREND 10
CONTINGENT WORKFORCE
Contingent workforce refers to networks of people who make a living working
without any formal employment agreement, and to using machines as talent.
© Deloitte LLP and affiliated entities.
The increased use of these new labour models require a new approach to
talent management and engagement.

15.
Act now to get in sync
Canadian business and HR leaders need to join forces, embrace
organizational complexity, and become great at managing transformational
change. How can Canadian organizations kick-start their drive forward?
Here are a few ideas to spark conversation—and action:
16
✓ Embrace the digital experience
✓ Make designing the organization a priority
✓ Close the gaps
✓ Rethink how you engage the on-demand workforce
✓ Get the right mindset
✓ Simplify
✓ Use what works
✓ Learn from disruptors
© Deloitte LLP and affiliated entities.

16.
Authors
Heather Stockton
416-601-6483
hstockton@deloitte.ca
Karen Pastakia
416-601-5286
kapastakia@deloitte.ca
www.deloitte.ca/hctrends
Read the full report
Human Capital Trends 2016:
Out of sync?
Contact
Carolyn Lawrence
416-775-8850
clawrence@deloitte.ca
Kate Morican
613-799-1730
kmorican@deloitte.ca

17.
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increases workplace diversity:
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contact@ideal.com
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