1.
Global Human Capital
Trends 2016
The new
organization:
Different by
design
Josh Bersin
Principal, Founder
Bersin by Deloitte
@Josh_Bersin

2.
Demographic
upheavals:
Millennials make up
more than half the
workforce, and Boomers
are working into their
70s and 80s.
Digital technology
is everywhere:
Technology is disrupting
business models and
radically changing the
workplace and how
work is done.
Rate of change
has accelerated:
Business must become
more agile to keep
up with the rapid pace
of change.
New social
contract between
companies and workers:
Younger workers demand
rapid career growth,
compelling and flexible
workplace, and a sense
of purpose at work.
Disrupting the workforce landscape

3.
Sources: Deloitte Human Capital Trends 2014 and 2015
The overwhelmed employee
The “average” US worker now
spends 25% of their day
reading or answering emails
Fewer than 16% of companies have
a program to “simplify work” or help
employees deal with stress.
More than 80% of all
companies rate their business
“highly complex” or “complex”
for employees.
The average mobile
phone user checks their
device 150 times a day.
The “average” US worker works
47 hours and 49% work 50 hours or
more per week, with 20% at
60+ hours per week
40% of the US population believes
it is impossible to succeed at work
and have a balanced family life.

4.
Productivity is suffering — is technology helping?
US productivity last ten years
1 billion
smartphones
i-Phone
launched
100 million
Twitter users
Since 2011 productivity gains have
slowed to crawl

5.
Why skills matter so much
Shift to a service and IP-based economy

6.
Percent rating trend important
Importance of Human Capital trends to business
Organizational design
Leadership
Culture
Engagement
92%
89%
86%
85%
Learning
Design thinking
Skills of HR organization
People analytics
Digital HR
Workforce management
77%
74%
71%
84%
79%
78%
% very
important
2016
56%
57%
54%
48%
44%
39%
36%
36%
32%
28%
% very
important
2015
…
50%
50%
39%
…
39%
29%
…
…

7.
Trend 1: Structure
The Rise of Teams

8.
Organizational design
The rise of teams
say the trend
is “very important”
or “important”92%
of large companies
are organized
functionally today
25%Only
Shift from top-
down hierarchy to
a network of
teams to deliver
results faster
are reorganizing
or plan to this year
feel expert at building
cross-functional teams
believe their companies are very ready to
effectively redesign their organizations
understand the way their people
work together in networks
21%
14%
12%
83%

9.
Shared values and culture
Transparent goals and
projects
Free flow of information
and feedback
People rewarded for
their skills and abilities,
not position
Organizational design
A network of teams
B
A
DCF
A
C D E
B
G
How things were How things “are” How things work
E

10.
Historic Perspective on Performance and Goals
How Organiza,ons Evolve
Startup
Create
Sell
Functional
Hierarchy
Scale
Efficiency
Distributed
P&L
Expand
Delegate
Manage
Federated
Shared
Services
Consolidate
Rationalize
Watchdog
Network
Of
Teams
Evolve
Adapt
Collaborate
Innovate
Agile
Entrepreneurial
Control
Grow
Delegate
Decentralize
Coordinate
Standardize
Innovative
Mission-Driven
Agile, Shared,
Fast Changing
Top-Down
Structured
Delegated
Aligned
Local and
Global
Team-Centric
Coordinated

11.
Historic Perspective on Performance and Management
The Evolu,on of Management Thinking
We are Here
The Industrial
Corpora4on
Hierarchical
Leadership
Collabora4ve
Management
Networks
of Teams
<1950s 1960s-80s Today 1990s
Andrew Carnegie
Henry Ford
NeKlix, Google,
Facebook, Amazon
Jack Welch
Peter Drucker
Howard Schulz
Steve Jobs
Profit, Growth,
Financial Engineering
Customer Service,
Employees as Leaders
Mission, Purpose,
Sustainability
Opera4onal
Efficiency
2020
Purpose, Meaning,
and Empowerment?
Industrial Age
People as Workers
Management by
Objec4ve
Servant Leadership
Work Together
Empower the
Team
The Corpora4on
is King
The Execu4ves
are King
The Teams and
Team Leaders are Kings
The People are
King(s)

12.
Trend 2: Goals
Rethinking Performance
Management

13.
13
Only 12% of companies believe
their existing performance
management process is “worth the
time put into it.”
- Deloitte Human Capital Trends 2015
Performance Management
The Process is Broken

14.
Goal Management
Organizations that
revise or review goals
quarterly or more are
3.5 X more likely
to score in the top
quartile of business
performance.
More Frequent Goal Reviews
Note: Based on our employee recogni,on survey, we created a business performance index (BPI1) that averages scores on employee engagement and three business-related outcomes (customer sa,sfac,on, cost structure compared to compe,tors, and market
leadership posi,on). It then ranks organiza,ons on the scale. Organiza,ons that scored in the top 25 percent of the BPI are considered to have “strong” business outcomes.
16%
44%
21%
10%
9%
3%
24%
26%
31%
50%
No Goal Revision
Once Per Year
Twice Per Year
Quarterly
Monthly
Source: “High-Impact Performance Management Using Goals to Focus the 21st-Century Workforce,” Stacia Sherman Garr / Bersin by DeloiYe, December 2014.
Improvement in Performance
Based on Frequency of Goal Review

15.
Board of Directors / CEO
Execu,ve Team / Senior Leaders
Business Leaders
Team Managers
Team Leaders
Individual Contributors
The Industrial Age Process: Top Down Cascading Goals
The Old Model of Setting Goals

16.
From Cascading Goals to Aligned Goals
The New Model: Local Goals, but Aligned

17.
Where Goals are Going
Goals in a Networked Organization
B
A
DCF
G
E
Goals Today
Meaningful
Culturally Aligned
Transparent
Agile
Developmental

18.
Trend 3: Leadership
Rewiring the Leadership
Model

19.
Leadership awakened
Generations, teams, science
say the trend
is “very important”
or “important”89%
Need different
types of leaders,
who are effective
as an individual
and in teams,
at all levels
Initiatives to
develop versatile
leaders require
rigorous structure
backed by data
have little or no
investment on
diversity in leadership59%
have strong programs to
build Millennial leaders7%
have strong programs to
build Global leadership13%
described themselves as
“strong” at succession
planning throughout the
business
14%

20.
Percent of companies rating
leadership “important” jumped
from 87% in 2015 to 89% in
2016.
Percent of companies rating the
problem “urgent” jumped from
51% to 57% from 2015 to 2016.
The problem is getting more urgent Yet progress is uneven and inconsistent
61% of companies are revamping
or just revamped their leadership
program in the last year and 30%
are doing it this year.
Yet 38% have no plans and 21%
have no leadership development
programs at all.
Deloitte Global Human Capital Trends
Leadership trends in 2016
Deloitte 2016 Human Capital Trends n=7,000

21.
Inconsistent Management Training
Content Available • No Development Process • Benefit to Employees
Level 1
Structured Leadership Training
Core Competencies • Well-Defined Curriculum • Developing Individuals
Level 2
Focused Leadership Development
Culture-Setting • Future-Focused • Developing Organization
Level 3
Strategic Leadership Development
Championed by Executives • Talent Management Integration
Level 4
BersinbyDeloitte
25%
38%
28%
10%
Leadership rewired
Why is the leadership market so broken?

22.
8%
15%
9%
6%
13%
20%
15%
7%
Global skills and experiences in leadership
program
Leadership programs for all levels (new, mid-
level, senior)
Experiential leadership programs
Targeted Millennial leadership programs
2016 2015
Maturity growth in global and experiential programs,
but not enough focus on Millennials
(% companies who are “excellent” at these areas)
Deloitte Global Human Capital Trends 2016, n=7,000
70%
of Millennials
tell us they are
receiving no
leadership
development
at all.
Focus areas
We are not building leaders fast or early enough

23.
Essential Talent Activities
Standalone disconnected staffing, training, and performance practices
Level 1
Critical Talent Growth
Critical talent segments, focus on hiring, training, performance
Level 2
Managed Talent Relationships
Workforce planning, development planning, leadership development integrated
into talent strategy
Level 3
Inclusive Talent System
Talent strategies integrated with inclusion, diversity, and culture
Level 4
BersinbyDeloitte
10%
19%
59%
12%
The New Bersin by Deloitte Talent Management Maturity Model
Source: Bersin by Deloitte, 2015.
Talent management has changed
Inclusion and diversity are key

24.
Trend 4: Culture & Engagement
A CEO Level Issue

25.
Culture
Shape culture, drive strategy
Senior leaders
must work with HR
to align culture
to business goals
Culture helps
bind people
together and can
drive execution
and consistency
say the trend
is “very important”
or “important”86%
believe “culture is a
potential competitive
advantage”
believe they understand
their culture well today
believe they have
the “right culture”
28%
19%
82%

26.
Average
3.2
What are these
companies doing?
Glassdoor ratings of employer recommendations — 200,000+ respondents
Engagement remains a global challenge

27.
Culture, value, leadership, and career (The Big Four)
The issues that matter to employees
0.00
0.12
0.13
0.22
0.28
0.30
0.00 0.05 0.10 0.15 0.20 0.25 0.30 0.35
Year founded (age)
Compensation & benefits
Work life balance
Career opportunities
Senior leadership
Culture and values
Correlation of employment factors to glassdoor recommendations as place to work
Culture and leadership are 3X more important
than salary in your employment brand.
Career development and learning are almost
2X more important than comp, benefits,
and work environment.

28.
Companies with “soul” had a
1026%return from 1996 through 2006,
8x higher
than S&P 400 firms
Companies with “soul”
experience:
• Much higher engagement
and retention
• Better customer service
• Long-term profitability
Source: Simply Irresistible: Engaging the 21st Century Workforce, Bersin by Deloitte, 2014
Importance of Mission and Purpose

29.
The Simply Irresistible Organization®
What we have learned: An Integrated Approach is Needed
Meaningful
Work
Hands-On
Management
Fantastic
Environment
Growth Opportunity Trust in Leadership
Autonomy Clear transparent goals Flexible, humane work
environment
Facilitated talent mobility Mission and purpose
Selection to Fit Coaching & feedback Recognition rich culture Career growth in many
paths
Investment in people, trust
Small Teams Leadership Development Open flexible workspace Self and formal
development
Transparency and
communication
Time for Slack Modern Performance
Management
Inclusive, diverse culture High impact learning
culture
Inspiration
A Focus on Simplicity

30.
Trend 5: Learning
Career Models Now Key to
Success

31.
“Over 300 years of economic history,
the principal and most enduring
mechanism for distribution of wealth
and reduction in inequality is the
diffusion of skills and knowledge.”
Why learning is so important to employees
The learning curve is the earning curve

32.
Training is key to Millennial engagement
Learning as Employment Brand
6%
6%
8%
14%
19%
22%
0% 5% 10% 15% 20% 25%
Greater vacation allowance
Retirement funding
Free private healthcare
Cash bonuses
Flexible working hours
Training and development
Millennials in the workforce
For Millennials, “Training and development” is the most coveted job benefit
Source: KPCB
Percent indicating job benefit in first place

33.
Back office, operational, contingent employees
Top
Management
Senior management
First line management
SMES
(Consultants)
Senior specialists
Functional specialists/front-line employees
Middle management
Career management
The traditional view

34.
Back office, operational, contingent employees
Top
Management
Senior management
First line management
SMES
(Consultants)
Senior specialists
Functional specialists/front-line employees
Middle management
Career management
The reality
Contract
hire
Job
intern
Developmental
assignment
Lateral
promotion
Stretch
assignment
External
assignment
Upward
promotion
Lateral
assignment
New
assignment
Part time
loan
New
candidate
New
leader
Exec
succession

35.
Changing Goals to Focus on Career
Juniper Networks Goal Model

36.
Trend 6: Feedback
Always-On Listening

37.
The Feedback System
How Does Feedback Work Today?
Engagement
Survey
Senior Management Team
Employees
Line Managers | HR
Performance
Review
Filtering and Cleaning
Time
Per
Year

38.
How Engagement is Evolving
Enterprise “Listening” Architecture
Integrated
Reporting & Analytics
Sentiment Analysis
Network Analysis
Social Media
Monitoring
Job Boards
& AdsEmployment
Brand
Customer
Satisfaction
Anonymous
Feedback
Tools
Pulse
Surveys
Annual
Survey
Performance
Check-ins
Exit
Interviews
Performance
Appraisals

39.
The context of people analytics has changed
Recruiting &
Workforce
Planning
Comp and
Benefits,
Rewards
Performance
Succession
Engagement
Learning &
Leadership
HRMS
Employee
Data
Engagement &
Assessment
+
Sales Revenue
Productivity
Customer
Retention
Product Mix
Accidents,
Errors, and
Fraud
Quality
Downtime
Losses
Groundbreaking new insights and tools
for managers to make better decisions
Data management, Analytics, IT,
and Business Consulting Expertise
+
=
Defining People Analytics
Location,
Travel,
Meeting Time
Organizational
Network
Analysis
Sentiment,
Heart rate,
Voice+

40.
People Analytics: Taking Off
2015 2016 % Change
Performing multi-year workforce
planning
38% 48% + 26%
Correlating people data to business
performance
24% 39% + 63%
Correlating people data to business
performance (% excellent)
5% 11% + 120%
Using people data to predict business
performance
28% 36% + 29%
Using people data to predict
performance (% excellent)
4% 9% + 125%
Progress Rapidly Accelerating
Deloitte Global Human Capital Trends, 2016 and 2015
Plan
Correlate
Predict

41.
Using Data to Measure Performance and Goals
42

42.
Finally
Digital HR:
Design Thinking and New
Platforms Emerge

43.
Benefits &
Compensation
Hiring
Recruiting
E-Learning Performance Talent
Network Based
Applications
New Systems of
Engagement
15 Year Evolution of HR SystemsMARKETGROWTH-ADOPTION
2 0 0 0 2 0 1 5P R O G R E S S I O N O V E R T I M E
Compensation
HRIS
Benefits
Administration
Applicant Tracking
Recruiting Sourcing
Learning
Management
Workforce
Management
Succession
Management
Performance
Management
Integrated Talent Mgmt
Analytics
Tools
Social
Recognition
Network
Recruiting
HRMS + Talent +
Workforce Management
Self-Service
Apps
Personality and Pre-
Hire
Culture
Assessment
Predictive
Analytics
Real Time
Engagement
Mobile
Apps for HR
Process
Automation
Integration &
New Talent Apps
Analytics Driven
“Systems of
Engagement”
Apps that
“Make Work Life
Better”

44.
Employee Feedback
Pulse Surveys
Wellness
Life Balance
Video Learning
MOOCs, Career Devt
Culture and
Self-Assessment
Work
Productivity
Integrated
Self-Service
2016 and Beyond: A New Set of Disruptive ApplicationsMARKETGROWTH-ADOPTION
2 0 1 6
Pulse
Survey
NextGen
Engagement
Mobile
Feedback
Fitness
Self-Tracking
Location and
Travel Support
Culture
Assessment
Self-Assessment
P R O G R E S S I O N O V E R T I M E
Video Learning
Video Sharing
Gamified
Onboarding
Career
Planning
Help Desk
Case Mgt
Integrated
Self-Service
2 0 2 0
Communications
Messaging
Virtual Work
Management
Document
Management
Goal Sharing
Goal Tracking

45.
Design thinking comes to HR

46.
CommonWealth Bank of Australia — Sidekick Project

47.
GE New Performance Feedback Tool
Total Redesign for Mobile: PD@GE

48.
The New Organization: Different by Design Goals
Meaningful
Culturally Aligned
Transparent
Agile
Developmental

49.
Reinventing Goals for The Future
The new organization: Different by design
www.deloitte.com/hctrends
@Josh_Bersin