Ten Disruptions in HR Technology for 2015: Ignore At Your Peril
1 HR Technology 2015 Ten
Disruptions: Ignore Them At Your Peril Josh Bersin Principal, Deloitte Consulting LLP December, 2014
2 Who We Are
- Global provider of leading practices, trends, and benchmarking research in talent management, learning, and strategic HR. - 60% of the Fortune 100 are Bersin by Deloitte research members, with more than 19.5 million employees managed by HR teams using Bersin Research. Broad Research Practices • Human Resources • Leadership Development • Learning & Development • Talent Acquisition • Talent Management Offerings - WhatWorks® Membership: Research, Tools, Education, Benchmarking - IMPACT®: The industry’s premiere conference on the Business of Talent - Advisory Services & Consulting Human Resources Leadership Development Learning & Development Talent Acquisition Talent Management
4 Zero to $1 Billion
Valuation in 1-2 Years – What can we learn? Slack, Dropbox, Snapchat “Free” file sharing and “Free” collaboration software that is very easy to use - Over 200 million users now (Dropbox) - 260,000 new users per month (Slack) No training required Free, mobile enabled from day 1 Elegant simple user interface Both hit over $1 Billion in valuation in first two years
5 Top Global Talent Priorities
% Rated “Urgent” or “Important” 63% 68% 69% 73% 74% 76% 76% 79% 81% 84% 87% 88% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% The Overwhelmed Employee Simplify Work Diversity & Inclusion Fix Performance Management Integrate HR Technology Globalize Talent Mgt. Talent & HR Analytics Talent Acquisition Reskilling HR Reinvent Learning & Devt. Retention & Engagement Gaps in Leadership Pipeline Deloitte Global Human Capital Trends Research, n=3,000, 11/2014 All These Areas Heavily Impacted by HR Technology
6 How the Talent World
has Changed “Our candidates today are not looking for a career…” “They’re looking for an Experience.”
7 Engagement Still Startlingly Low
Worldwide only 13% of employees are “highly engaged” in their jobs. 63% “disengaged” and 24% “actively disengaged.” (Australia and NZ are twice as “engaged” as the rest of the world!) with 25% “highly engaged” China, Middle East, Africa, India are the lowest at 6-8% fully engaged
8 Only 54% of employees
would recommend company to a friend - Glassdoor, Bersin Analysis, October, 2014 And Even Worse
9 The “Haves” and “Have
Nots” In Engagement Distribution of Glassdoor “Recommend My Company” Averages Average 3.1 Companies in Trouble Companies Getting By Companies Winning the Talent War
10 Benefits & Compensation Hiring
Recruiting E-Learning Performance Talent Network Based Applications New Systems of Engagement 15 Year Evolution of HR Systems MARKETGROWTH-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 & “Systems of Engagement”
14 Growth in HR Technology
Markets People Management Software is One of the Biggest ERP Segments Market Category Market Size (2014) CAGR 5 Years Core HRMS $6.2 Billion 7-9% Recruiting $2.6 Billion 8-10% Learning Management $2.4 Billion 10-12% Performance / Compensation $1.4 Billion 8-10% Workforce Management $1.5 Billion 4-6% Engagement, Recognition, Sensing $1.0 Billion 10-15% IDC Market Size 2014, Bersin Estimates
15 Two Major Marketplace Issues
1. Too Many HR Systems 33% of companies have 10+ HR systems 47% will replace to integrate and consolidate vendors 2. Systems Aging Rapidly HRIS systems 47% are 7+ years old Time & Attendance 40% are 7+ years old Performance Mgt 19% are 7+ years old Learning Management 17% are 7+ Years old
16 Explosion in Mobile Access
1.5 Million Laptop/Desktop Users 1.6 Billion Smartphone Users 5.2 Billion Mobile Phone Users Mobile now 25% of web traffic 60% of time on internet is through Mobile devices
23 The Overwhelmed Employee The
average mobile phone user checks their device 150 times a day. 40% of the US population believes it is impossible to succeed at work and have a balanced family life. The “average” US worker works 47 hours and 49% work 50 hours or more per week, with 20% at 60+ hours per week The “average” US worker now spends 25% of their day reading or answering emails More than 80% of all companies rate their business “highly complex” or “complex” for employees. Fewer than 16% of companies have a program to “simplify work” or help employees deal with stress. Sources: Deloitte Human Capital Trends 2014 and 2015
25 Standardized, Simplified People Practices
Measuring Coaching Performance Self Directed Learning – When I Need It Social Collaboration & Transparency Systems of Record Engagement Make Work Simple Employees = Customers “People not Talent” Mobile and Contingent Workforce People Management Today
28 1. Shift from System
of Record to System of Engagement 67% of buyers now select a system based on its ease of use, far greater than the “feature set”
29 Simplicity Trumps Functionality Value
Time Highly Functional System, Difficult to Learn Simpler System, Easy to Use “Harmonization of HR processes before implementation of systems was one of the biggest drivers of successful implementations.” Source: Deploying HCM Technologies: Making Change Work, Katherine Jones, Bersin by Deloitte, 2014.
32 Mobile: A System of
Engagement Employees expect mobile access for: Time and expense reporting Travel planning Employee directory Message Collaborate Knowledge sharing Learning Training Goals Performance Engagement Recruiting… Applying Screening Source: Global Human Capital Trends
35 What Our Research Discovered
Bersin by Deloitte Talent Analytics Maturity Model® Level 4: Predictive Analytics Development of predictive models, scenario planning Risk analysis and mitigation, integration with strategic planning 4% Level 3: Advanced Analytics Segmentation, statistical analysis, development of “people models”; Analysis of dimensions to understand cause and delivery of actionable solutions 10% Level 2: Proactive – Advanced Reporting Operational reporting for benchmarking and decision making Multi-dimensional analysis and dashboards 30% Level 1: Reactive – Operational Reporting Ad-Hoc Operational Reporting Reactive to business demands, data in isolation and difficult to analyze 56%
36 Analytics Drives Huge ROI
Today, 14% of HR ORGANIZATIONS believe they “regularly use data to make talent and HR strategy decisions”… …and these organizations, are… 2X as likely to believe they are excellent at selecting the right candidates 2X as likely to believe they are delivering a strong leadership pipeline Generating 30% higher stock returns than the S&P 500 over the last three years 3X as likely to believe they are efficiently operating HR
38 “People Data Everywhere™” Retention
Analytics Models Internal Data • Performance • Mobility • Compensation • Goals • Education • Work History External Data • Location • Job • Social Profile • Compensation • Connections • Work History Flight Risks Drivers of Retention Talent Problems to Fix
40 Big Data meets Assessment
Big Data Analytics Candidate Profile Education Background Assessment Data Job Experience Performance Training Assignments Fit With Job Fit With Company Fit With Team
41 How Do We Select
the “Right” People? 2/3 of hiring done without any significant assessment Background checking: 79% Managerial interviews: 64% Interview training: 47% Behavioral assessments: 34% Reference calls: 32% Skills-based assessments: 25% % of Organizations Which Regularly Use Following Assessment Practices Bersin & Associates High-Impact Talent Acquisition Study, Fall 2012, 158 organizations responded The most important criteria of success is fit, which is driven by clear understanding of role and culture
42 5. Sensing and the
Quantified Employee Less than 50% of the companies in The Engagement Institute know what to do with engagement data Data is slow to collect, too broad, and not local Technology changes the market: - Fast - Local - Open - Transparent
44 Engagement Surveys Shift to
Continuous Employee Feedback and Sentiment Traditional Engagement Surveys Continuous Feedback and Sentiment Analysis Once per year Every month, week or day Standard questions Widely varied questions Some but little open feedback Any comment considered Anonymous Anonymous but… “voted” up and down Internal use only May be posted to public Survey based Mobile app based Questions based on large longitudinal database Questions based on modern engagement issues
46 6. Network Recruiting Platforms
Replace Traditional Recruitment Hiring Manager Relationships Candidate Pool Development Social Media Campaign Recruiter Training Governance & Decision Making Employee Referral Program TA Program Management Optimized TA Technology Diverse Candidate Slates Employment Branding Assessment Against Requirements Reporting & Analytics
47 The top three drivers
of talent acquisition maturity are: 1. Building strong relationships with hiring managers 2. Cultivating pools of potential candidates long before hire 3. Driving employment brand 62% Create new products more quickly than competitors 88% Meet or exceed financial targets 100 % Meet or exceed customers’ expectations Source: High-Impact Talent Acquisition®, Bersin by Deloitte, 2014 Three Key Drivers of Impact
48 Reactive Tactical Recruiting Recruiters
are “order takers;” posting of positions on an as-needed basis. Minimal hiring compliance standards met; no real processes defined. No strategic focus on candidate experience. Level 1 Standardized Operational Recruiting Effective assessment of candidates against job requirements. Begin to establish strong relationships with hiring managers. Some link to workforce planning. Standard interview documents. Level 2 Integrated Talent Acquisition Strong employment brand. Active pipeline of candidates. Robust TA programs (e.g., diversity, alumni, employee referral). Investment in new TA products and services. Level 3 Optimized Talent Acquisition Strategic enabler of the business. Successful social media campaign. Recruiter training builds strategic capabilities. Ability to predict external forces & remain agile. Level 4 Talent Acquisition Maturity ModelBersinbyDeloitte Source: High-Impact Talent Acquisition®, Bersin by Deloitte, 2014 35% 29% 23% 13%
49 Professional Networking Sites* Traditional
Recruiting Network Recruiting Sourcing and engaging both active and passive candidates through employees’ and company networks to build talent pools for current and future hiring needs Engagement Channel Print Job Boards Agencies Job Search Aggregators University Recruiting Internal Talent Mobility Talent Communities Employee Referrals Network Recruiting Sourcing active candidates through recruiters or 3rd party agencies to fill current hiring needs How Recruiting Has Changed From “Active” to “Network Recruiting”
52 7. Radical changes to
performance management, goals, and talent mobility Only 8% of organizations believe their performance management process is worth the time they’re putting into it.
53 The evolution of performance
management requires a fundamental shift in thinking driven by emerging business trends Ongoing, Continuous: Annual and semi-annual review supplemented with more frequent informal manager – employee check-ins and other simple communications Flexible, Agile. Simple: Light touch, low impact processes to gather performance data. Non-value add administrative activities are eliminated Data Driven: Performance data collected from multiple sources throughout the year and analyzed to provide balanced performance insights Local Real–Time: Real time feedback and recognition provided through use of frequent check-in and social media tools to improve performance and drive engagement Development Focused: Shift towards long term employee development vs. appraisal Strengths: Individual strengths identified and leveraged to maximize employee potential and build high performing teams Summary of Our Research Philosophy & Business Goals
57 But Keep it Simple
Coaching for Development Talent Decisions Performance Improvement Legal Documents Employee Motivation Compensation Performance Feedback PERFORMANCE MANAGEMENT Coaching for Development Talent Decisions Performance Improvement Legal Documents Employee Motivation Compensation Performance Feedback PERFORMANCE MANAGEMENT Kelly Services Source: “Getting Away from the Score: Creating Better Ongoing Performance Feedback,” Bersin & Associates, 2012. .
58 Major Trends Will Disrupt
Incumbents Traditional top-down goal management is going away Agile, transparent “OKR” models will replace in most cultures Performance Management is directly linked to engagement and retention and is causing pain Performance Management process has been too tightly linked to other talent processes in most organizations Recognition, rewards, coaching, and developmental feedback will become integrated parts of the process Tools are far too complex, time consuming, and administrative for today’s workforce and speed Pulse surveys, supervisor coaching, and feedback must become part of the process
59 Back Office, Operational, Contingent
Employees Top Management Senior Management First Line Management Traditional View Talent Mobility SMEs (Consultants) Senior Specialists Functional Specialists / Front-Line Employees Middle Management
60 Back Office, Operational, Contingent
Employees Top Management Senior Management First Line Management The Reality SMEs (Consultants) Senior Specialists Functional Specialists / Front-Line Employees Middle Management Top Management Contract Hire Job Intern Developmental Assignment Lateral Promotion Stretch Assignment External AssignmentUpward Promotion Lateral Assignment New Assignment Part Time Loan New Candidate New Leader Exec Succession
61 Entire Organization Must Contribute
to World-Class Career Management • Identify Career Goals • Maintain Profiles • Demonstrate Values • Socialize Interests • Create Internal Network • Share Expertise Employee • Define Job Profiles • Provide Coaching • Assess Potential • Identify Development Opportunities • Provide Candid Feedback • Share Talent Openly Manager • Provides Tools & Resources • Develop Career Models • Facilitate Process • Offer Career Coaching • Career Development Training • Integrate with Talent Mgmt HR • Infrastructure – Process, Technology, People • Create Culture of Mobility • Communicate Expectations • Create Transparent Marketplace Company
62 8. LMS Market Transformed
and Expanded The 21st century employee wants easy- to-use learning approaches and resources. Yet 63% of companies say they are “weak” in providing mobile and social learning as development tools and only 6% are “expert” at advanced media for learning.
63 The LMS Market Is
Being Reinvented The 1990s-2000s LMS Course Administration Enrollment and Scheduling Resource Management Extended enterprise e-learning e-commerce Virtual classroom Assessment tool Security and roles Reporting LearningAdministration Collaboration “Discussion Group” Portals Learning Experience The Modern LMS “Old LMS” Feature Set + Deeper Analytics Dynamic Profile Expert Directory Communities Tagging Content Management Ratings Multi-rater coaching Feedback Content Sharing Content Management Mobile “New” virtual classroom Highly Flexible UI Talent Management Features Administration &Talent Social&Collaboration User Experience MORE IMPORTANT THAN EVER – BUT NEED SIMPLICITY AND SCALE
64 24x7LEARNING BANKERS ACADEMY CORPEDIA
LMS EMENEO IKONAMI LTD LATITUDE LEARNING MINDONSITE PRODUCTIVITY4YOU STAM INTERACTIVE VELOCEDGE 360training.com BIT.MEDIA COURSE PEER ELMSTONE SYSTEMS LTD IMC LAUREN INNOVATIONS MIRAPOLIS PROFISCIENCE PARTNERS STEAG VENU 4CSoft BLACKBOARD COURSE SOURCE EMTRAIN IMPACT LEARNING SYSTEM LEANFORWARD MODALLOGIC PROLEARNING SOLUTIONS STARFIELD VERTICAL ALLIANCE GROUP 4system BLACKSTAD CLASSROOM MANAGER CourseAvenue, Inc. ENGRADE IN2ITIVE LEARN SOMETHING (Xerox) MOODLEROOMS PROMETEUS STONEHOUSE MEDIA VERZTEC ABSC BLOOMFIRE COURSEWEBS EPATH LEARNING INCHONE LEARNAHOLIC MYKNOWLEDGEMAP PROMETHEUS DEVELOPMENT STRATBEANS VI DESKTOP ABSORB LMS BLUEGEM SOFTWARE CREATIVELMS EPSILEN INDECOMM GLOBAL SERVICES LEARNCAST MYLEARNINGPOINT PROSPERO LEARNING SOLUTIONS STUDYWIZ VIA LEARNING ACCESS IPD BLUEVOLT BLUEDROP PERFORMANCE LEARNING EMPOWER TRAINING SOLUTIONS INDUSTRIAL TRAINING ZONE LEARNDASH MYNETWORK PTC SUCCESS FACTORS VIAECOLE ACCESSPLANIT Bodes IT CrossKnowledge ENTERPRISE STUDY INFOLOGIX LEARNEVERYWHERE MZINGA PULSE LEARNING SUMMIT TRAINING SOURCE VIDIZMO ACCENTURE BRAINSHARK CU Training ENVISAGE TECHNOLOGIES INFOR: Certpoint LEARNKEY M-LEARN ON THE GO Q2LEARNING SUMTOTAL VILLAGE88 ACCORD BRIDGE PEOPLE & TECHNOLOGY CUNA ePALS INFORMASYSTEMS LEARNING & PERFORMANCE SOLUTIONS NAVEX QPHARMA SWANK LMS VIRTUAL COLLEGE ACF CONSULTANTS BRIGHTWAVE CYBERWISDOM EPIC INFORMETICA LEARNING ACADEMY SYSTEMS NEOVATION QUBE LEARNING SYBERWORKS VITALECT ACROSERVICES BRITANNICA KNOWLEDGE SYSTEMS CYGNET INFOTECH PVT LTD EPICOR Infosys LEARNING EVOLUTION NETCERTIFICATION QUINTETTO OLS Syfadis Group VIVA LEARNING ACTIVATE SYSTEMS BUSINESS TRAINING LIBRARY DANISH PROBE A/S ESCHOOLS INSTRUCTURE LEARNING FOX NETDIMENSIONS RAINMAKER SYSTEMS SYNTRIO VIVID LEARNING SYSTEMS ADMINISTRATE BVS DAULSOFT RELIAS LEARNING INGENIA LEARNING LIBRARY NETLOGIC RAPID INTAKE T FACTOR VOCAM ADOBE CAPABILITY LMS DELFI SOFTWARE ESSENTIAL SKILLZ Inquestra LEARNING MANAGEMENT.COM NETOP Raytheon TACTIC SOFTWARE WBT Systems ACP COMPUTER TRAINING SCHOOL CAE DELL ETHOSCE INREACH LEARNING RESOURCES INTERNATIONAL NETSMART UNIVERSITY RCAMPUS Tactis Software WBT.IT ADP CALLSOURCE DELTAK (Wiley) eTrainCenter Inspired E-Learning LEARNING SEAT NETEX READYGO Talent2 WEB COURSEWORKS ADDRENNA CAMPUSCRUISER DELTAL ETRIOX INSTANCY LEARNING SPAN NEUSOFT REALABILITY TalentSoft WEB SYNERGIES ADURO CAPITA IT SERVICES DESIRE2LEARN INC EUPHORIA INTEGRITY ELEARNING LEARNING TECHNOLOGY PARTNERS NEWSGATOR REALPAGE Tata Interactive LMS WEB TRAINING ADVANCED NFP CAPSULE COMPANY DESKERA EVOLUSENT INTELEX LEARNING.NET NEXIO REDTRAY TECHNOMEDIA WEBDUCATE AEROSTUDIES CARDNO DICAMPUS EVOLVE E-LEARNING SOLUTIONS Intellum LEARNINGZEN NEXLEARN REFINED TRAINING TEDS WEBSE AFFERO CARE2LEARN DIGITAL CHALK E-WORK.COM Interactyx LEARNIN3.com NORMAL MODES REFLECTION SOFTWARE TEKEGE SOLUTIONS Websoft Agileview CAREER MANTRA DIGITAL IGNITE eXact Learning Solutions INTRALEARN LEARNOPIA NP TRAINING WORKS RELIANT LIVE TELEMATICA WESTNET LEARNING AGILIX CBT PLANET DIGITEC INTERACTIVE EXCELSOFT INTRAFINITY LEARNBIT NUVEDA REMOTE LEARNER TELETECH Wisetail AJ SQUARE CECITY DISCOVERY CAMPUS EXPERTUS INTERNEXIA LEARNOHOLIC NVOLVE Thomson Reuters (formerly Reqwired) TESTRACK WIZLEARN Akuter CEGOS GROUP DOCEBO FIRMWATER INTUITION LEARNSHARE OAKTREE SYSTEMS RESOURCE DEVELOPMENT CORPORATION THE CAPSULE COMPANY WIZDOM LMS ALCHEMY SYSTEMS CENGAGE LEARNING INC DOCNITO FLEXLS INTUITEXT LEARNSOFT ODIJOO RESOURCE BRIDGE THE KELLY COMPANIES WOLTERS KLUWER ALLANTRA CENTRELEARN DOMINKNOW LEARNING FLEXTRAINING INTUTO LEARNUPON OILENNIUM RIGHT REASON TECHNOLOGIES THE LEARNING PARTNERSHIP WORLD LEARN ALLEN COMMUNICATIONS LEARNING SERVICES CERIDIAN DOKEOS FROG IPRESENTONLINE LEARN-WISE OMNIPLEX RISC THE WORKING MANAGER XCEED LEARNING ALTALENT CERTILEARN DOTS TALENT SOLUTIONS FRONTER COMMUNICATIONS CORP IRIS NFP Solutions LIGHTSPEED SYSTEMS OMNITRACK+ RUSSELL ASSOCIATES THE QUALITY GROUP XERCEO AMBOW CEU360 DUAL CODE FRONTLINE DATA SOLUTIONS IQITY LIKNO LMS ONPOINT DIGITAL RUSTICI THINKINGCAP Xerox (ACS) AMVONET Cezanne DuPont Sustainable Solutions FTS SOLUTIONS ISOPH LINAC Onsoft Computer Systems RXSCHOOL THREE LEARNING XSTREAMSOFTWARE American Research Institute Chamilo D'VINCI INTERACTIVE FULLPARTNER ISOTRAIN LIQWID KRYSTAL ONTUITIVE SABA TIER 1 PERFORMANCE XTRACTOR ANCILE SOLUTIONS CHALKABLE DYNDEVICE FUTURSKILL ISPRING LITESPEED OPANGO SAFFRON INTERATIVE TIME4YOU XYLEME ANEMA CINET E3 LEARNING GCUBE ITC LEARNING LITMOS OPENELMS SAKAI TORTAL YARDSTICK SOFTWARE ANEWSPRING CIRRUS E-LEARNING EADBOX GEENIUS ITRIVIO LMS GLOBAL OPENTEC SALMAT Totara LMS ZAPOINT APPOINTLINK CLARITY EASY AUTHORING GEMINI ITS LEARNING LOGICBAY OpenText (OPERITEL) SAP TPC TRAINING SYSTEMS ZENLER APPSTRONIC CLASSROOM MANAGER EASY COURSE CREATOR Generation21 INTERNATIONAL TECHNOLOGY SOLUTIONS LOMALEARN ONLINE OPTIONC SAVV-E Traincaster ZEUS LEARNING APROPOS CLICKSAFETY ECOLOGIC SYSTEMS GeoMetrix Data Systems Inc. JENZABAR LOUDCLOUD SYSTEMS Oracle EBS SCHOLARIS TRACORP ZIIVA APTEK CM LUMINOSITY ECOM SCOTLAND Global Knowledge JONES & BARTLETT LynxOnline Oracle Fusion SCHOLAR LMS TRAINING EVIDENCE SYSTEMS Zoologic APTIFY Cnergyis eCORNELL Global Vision Technologies KAIZEN SOFTWARE SOLUTIONS Lumesse Oracle Peoplesoft SCHOOLMASTER TRAINING JUMP START ZUMO SOFTWARE Aragon-eRH COBENT LTD. EDGENUITY GRADE K ALLIANCE MAESTRO ELEARNING Oracle Taleo SCHOOLOGY TRAINING PORTAL ARDENT LEARNING COGGNO EDMENTUM GRASPLINK Kallidus (E2TRAIN) MARINE LMS OZTIME SEERTECH SOLUTIONS TRAINEASE AQT SOLUTIONS Cognitive Advisors Edoceo GROWTH ENGINEERING KENEXA (IBM) MARTEC INTERNATIONAL PALAMORE SEMINAR E-LEARNING SYSTEM Training-Orchestra Articulate COGNIZANT TECHNOLOGY SOLUTIONS EDU 2.0 GROUP LEARNER KESDEE MARTONHOUSE PEACH NEW MEDIA SIFY TECHNOLOGIES LIMITED TREATMENT BASICS ASPIRE GOGENTYS EDUBRITE GUIWEB ONLINE SOLUTIONS KMC OnDemand MARSHAL CAVENDISH ONLINE PEAK SKILLS LEARNING SILKROAD THREE RIVERS SYSTEMS ASSERION COLLINS LEARNING EDUCATE GLOBAL GYRUS SYSTEMS KMSI MASTER CONTROL PEARSON LEARNING SOLUTIONS SIMBIONIX TRIVANTIS ASTRA COLONI EDUMATE HAIKU LEARNING KNOWBASE MASTERY LMS PELESYS SIMPLYDIGI TRUE SOLUTION ATHAND SOLUTIONS COMMELIUS EDVANCE 360 HALOGEN KNOWLAGENT MAXIT PEOPLEFLUENT SIMPLYLEARN TTG SYSTEMS ATHENA COMMON GOAL SYSTEMS eFront Learning HCCS KNOWLEDGE ANYWHERE MEDIA DEFINED PEOPLEMATTER SIMULWARE TTN LEARNING Atrixware COMPETENTUM USA LTD. ELCOM HealthcareSource KNOWLEDGE FACTOR MEDIAPRO PERCOLATE LMS SITEL TUTOR PRO ATUTOR COMPLIANCE TRAINING SOLUTIONS ELEAP SOFTWARE HEALTHSTREAM KNOWLEDGE MANAGEMENT INTERACTIVE MEDIKLY PERFORMANCE SOLUTIONS NETWORK SIVECO UDUTU Aunwesha Knowledge Technologies Private Limited COMPUTER AIDED ELEARNING ELEARNING FORCE INTERNATIONAL HR Smart KNOWLEDGE POOL MEDIOPIA PILOT GROUP SKILLPAD Ultimate Software AUTONOMY (HP) Computer Generated Solutions E-LEARNING IDEA SOLUTIONS HUGHES KNOWLEDGE PRESENTER MEDWORXX PING PONG SKILLSOFT ULTRANET Avilar CONNECT LEARNING E-LEARNING WMB HURIX SYSTEMS KNOVIVA MELON Technologies PINPOINT GLOBAL COMMUNICATIONS SKILLSSCORECARD UNDERWRITERS LABORATORIES (ComplianceWire) AXG TECNONEXO CONVENIENCE LEARNING ELEARNING ZOOM HYPERMETHOD IBS KRATOS MERIDIAN KSI PLATTE CANYON SMARTPROS UNISERVITY BAI CONVERGENCE TRAINING ELOGIC LEARNING iCOHERE KRAWLER METALEARN SERVICES PORTALCMS SOLO LEARNING UPSIDE LEARNING SOLUTIONS PVT LTD BANCINTRANETS CORE LEARNING SERVICES ELSEVIER MC STRATEGIES INC. ICS LEARNING GROUP LAMPA MICROPOWER POWERFUL LMS SOLIDSTATE LEARNING V CAMPUS BANKERSEDGE CORNERSTONE ONDEMAND ELUCIDO IC-UC LEARNING Lanteria MINDFLASH PRESENT ELEARNING SYSTEMS SSE VELSOFT MORE THAN 600 LMS PROVIDERS WORLDWIDE
65 SumTotal Skillsoft Clear Consolidation
at the Top Massive Growth in Middle SAP Oracle Cornerstone On Demand Saba Blackboard SkillSoft Dupont NetDimensions Healthstream Cross Knowledge Meridian Halogen SilkroadPeoplefluent RISC Elsevier imc IBM Intellum Kallidus Technomedia Absorb RedTray Expertus Open Text Lumesse OnPoint Digital Intuition ADP Cegos Bloomfire Wisetail Desire2Learn Docebo Cyberwisdom Digital Ignite Healthcare Source INFOR Litmos CoursePeer Thomson Reuters Underwriters Labs BrainHoney Schoolology TMS K-12 / Higher Ed Vertical Specialists Social / Mobile Content The New Middle Compliance
66 Blogs Ratings Mentoring Wiki’s
Video Podcasts Discussion Boards Social Networking Tagging Micro-blogs Virtual Worlds Stretch Assignments Communities of Practice Collaboration Search Simulations Surveys Content Explosion Whitepapers Case Studies Articles Visual Aids Presentations Books Corp Websites Manuals Performance Support Product Demonstrations Instructions Observations JournalingStandard Operating Procedures Newsletters Corporate Communications Marketing Collateral Business Process Documentation Programs Role Playing Classroom Conferences eLearning Coaching Webinars Lunch ‘n Learns Chalk Talks Onboarding Debates Consulting Lectures Experiments Labs Teaching Courses Workshops Interviews Feedback Mistakes Successes Job Rotations Peers Project Post-Mortems Meetings Role Models Job Shadows After Action Reviews Customer Data Goals Play Conversations Dialogue Reports Memos Appraisals Business Performance Data CRM Records Proposals
67 Spend time and money
differently (think beyond courses and LMSs). - 1,700,000 live classes - 250,000 elearning courses - 318,000 books - 187,000 articles - 344,000 videos - 1,200+ providers Brand New L&D methods, infrastructure and tools Source: Degreed, 12/2014
68 The Four E’s Take
Over Learning Informal Education Experiences Exposure Environment - More mature L&D teams deliver 16% less training via ILT and vILT classes +More mature L&D teams deliver 31% more learning via on-the-job experiences +More mature L&D teams deliver 140% more learning via coaching & collaboration +More mature L&D teams are 91% more likely to use performance support tools Formal Source: Bersin by Deloitte, 2013 and 2014 Corporate Learning Factbooks
74 What we have learned:
An Integrated Approach is Needed The Simply Irresistible Organization® Meaningful Work Great Management Fantastic Environment Growth Opportunity Trust in Leadership Autonomy Agile Goal Setting (ie. OKR) 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 work spaces Self and formal development Transparency and communication Time for Slack Modernized Performance Mgt. Inclusive, diverse culture High impact learning culture Inspiration
Worldwide, only 13 percent of employees across 142 countries are emotionally invested in their jobs. Gallup also found that those who are actively disengaged – that is those who are negative and potentially hostile to their employers, outnumber engaged employees at a rate of 2:1. Gallup believes this is costing businesses more than $800 billion in lost productivity and hiring costs around the world. Think about this: who owns the whole “retention and engagement” problem in your organization? How well do you really know what’s on people’s minds on a day to day basis. Do you measure retention regularly and study why it varies from place to place? While around 60% of businesses deploy some kind of engagement survey, our research shows that today’s process for measuring and managing engagement has become obsolete. Employee engagement is far more complex than it seems – and the old adage “people leave managers, not organizations” is definitely no longer true. New research shows that engagement is much more highly linked to ability to grow and top leadership than management: in other words good managers won’t get you to stay, but bad managers may make you want to leave. Companies like Adobe and JP Morgan Chase, who I spoke with in the last few weeks, told me that they are now taking a holistic look at engagement – considering the entire work environment, culture, supervisory skills, leadership, as well as the work itself. We believe this may be the the secret: over the next few years you will have to rethink your engagement and retention strategy in a highly integrated way. And technology is here to help. New social networking tools, pulse engagement tools, and analytics tools are now able to “predict” retention using Big Data. Some even monitor your employees’ changes to their social networking sites. Karen and I will be leading a panel of analytics experts to help you understand how world class companies manage data and we’re very lucky to have Hilary Mason, a real data scientist, talk with us on Wednesday afternoon.
(c) Bersin and Associates
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But what about this issue of the “overwhelmed employee”? Where does that fit into the calculus of building the “irresistible organization”? First, it’s a big problem. Research shows that the average cell phone user checks his mobile device 150 times a day. Neurologist Larry Rosen has found that today’s office worker can only focus for six minutes on a single task, and then opens a window to check Facebook or do something else. We have become physically and emotionally addicted to the buzz, beep, or flash that comes from our devices. Julian Birkenshaw and Jordan Cohen noted in the Harvard Business Review that knowledge workers spend 41% of their time on discretionary activities that could be handled by others? Why? Because it’s easier to “complete” these little tasks than it is to ponder and struggle with more complex and difficult projects at work. They found that by changing work habits and reducing time-wasting meetings, people could save 15% of their time in a typical insurance company. The bigger issue, of course, is that society is now wired this way. Twitter’s explosive IPO says it all: if you can squeeze your message into 140 characters and blast it out by the millisecond, people will get addicted. Have you noticed how TV shows move faster than ever? They do. The broadcasters now change scenes 35% more frequently than they did only four years ago. This problem is here to stay, and our job is to figure out what to do about it. Mindfulness has become a fast-growing industry, moving beyond the best-seller list and newsstand. Pfizer recently told me they are putting “mindfulness” into their leadership curriculum, and “self-awareness” came up as one of the most important competencies in new leadership programs. Google and Patagonia offer yoga and meditation at work. Huffington Post has nap rooms. Arianna Huffington’s new website The Third Metric, which focuses on work-life balance, is the fastest growing part of her online presence.
Approximately 50% of HR professionals feel that PM processes do not help managers make strategic operational decisions1 45% of human resources leaders don’t think annual performance reviews are an accurate appraisal for employees’ work2
Only 8% feel their perf managemet effort drives significant value
And now poor HR has to catch up. The book Moneyball certainly educated us that data can make a big difference in selection, and people like Malcolm Gladwell and many others have popularized the idea of using data to make more scientific decisions about people.
I seem to read an article in the New York Times every week about this topic now.
We just completed two years of research in this area and found that yes, a small number of HR organizations (14% in fact) are well ahead of the curve and have effectively “datafied” their operation. These unique companies are seeing tremendous improvements in business performance: they are two times better at recruiting, twice as capable of building the right leadership pipeline, their HR organizations are typically 3X more efficient, and their stock prices rose 30% higher than the average of the S&P 500 over the last three years. The question one has to ask is who are these companies and how did they get here?
One of the most important things HR does in the company is to help in hiring the right people. This includes employment brand, talent networking, scientific assessment, mobile recruiting tools, manager and recruiter training, and analytics. One specific topic of discussion is the localization of talent acquisition. We are in a war for talent around the world: the war for the best people. Today’s workforce is more diverse than ever – in age, expectations, location and mobility. Our research shows that 70% of organizations are still recruiting baby boomers, while 30% will still consider hiring a candidate who has inappropriate postings on social media. Further, our new High Impact HR research shows that organizations with mixed age work forces perform better than those that are highly skewed toward younger or older workers. Nearly every organization we work with is looking for ways to grow. Whether this is geographical or line of business expansion, HR professionals are striving to develop workforces that can manage through ambiguity and rapid change. This is why AT&T chose Bersin to redesign its performance management system, resulting in a 15% improvement in productivity in the first two years When Pfizer merged with Wyatt, they looked to Bersin to effectively consolidate two training groups into one organization, 2/3 the size of the previous team. This group cut training costs by 32% while creating innovative, high performing learning programs JetBlue University transformed their training team from request managers to performance consultants by using Bersin’s research to create a business alignment tool that ensures that the University’s resources are spent on strategically significant programs.
Developing relationships with hiring managers is the most influential driver of TA performance outcomes, as it is 4 times more influential than other drivers. A staggering 97% of Level 4 organizations report that they have strong relationships with hiring managers. Hiring managers and recruiters are on the front line shepherding tomorrow’s talent through the door. Hiring managers and recruiters must be in lock-step, delivering a positive candidate experience, true and authentic employment brand messaging and timely talent solutions. Not to be overlooked, developing candidate pools is the second most influential driver of TA performance outcomes times at 2x more influential than other drivers. 91% of Level 4 organizations report that they successfully develop candidate pools. Building relationships with prospective candidates is an integral part of the recruiter function. When done well, recruiters can deliver talent on demand. With the presence of online Talent Communities, as well as the more traditional pools of talent, recruiters have a lot of key constituents to engage. Volume concerns and eager hiring managers are a constant in the world of Talent Acquisition. Finding the balance between engaging, communicating, and sustaining a positive employer brand image is vital to recruiter success.
You should have been given a handout that looks like this when you entered the room. If you don’t have one for some reason, please raise your hand and we’ll make sure you get one. If you’ve seen our maturity models before, what I’m about to show you will look familiar as all of our maturity models are organized the same way. Let’s start at the beginning – or at Level 1, at the lowest level of maturity. At Level 1, recruiting is a tactical activity, often done locally, and is viewed as a cost of doing business. Recruiters are basically order takers where the hiring manager submits a job requisition to the recruiter, the recruiter screens candidates, and hiring manager interviews candidates. Hiring processes are not typically well defined, minimal hiring standards are adhered to and there is no strategic focus on candidate experience. At Level 2, recruiting has become standardized and is a corporate-wide support function for hiring managers to fill open positions. Organizations begin to define their TA technology strategy, typically starting with an applicant tracking system. Moreover, a strategy is being established to cultivate existing candidates and build long-term relationships. The interview strategy and rating systems are developed and there is some standardization of processes. At Level 3, talent acquisition is considered an essential partner in attracting and selecting the right talent for the organization. Executive buy-in and sponsorship contribute to TA success. Recruiters partner with hiring managers to establish a recruitment strategy and timeline. Demand and supply forecasting are used to make proactive decisions and close anticipated gaps. Employment brand and employee value proposition resonate with current employees, often resulting in employer of choice status. TA measurement becomes standardized with key performance indicators defined for critical metrics. A link to succession and performance management is formed, providing TA with an understanding of the workforce and existing talent capabilities, while facilitating internal talent mobility. At Level 4 – highest maturity, talent acquisition is seen as a strategic enabler of the business and a necessary investment to drive competitive advantage. The attraction and hiring of top talent is an essential part of the culture. A well-developed governance structure is in place and charts a strategic direction for the acquisition of talent within the organization. Recruiters act as true consultants to hiring managers. They understand trends in the labor market, use various sourcing tools to build talent pipelines, and are well-versed in engaging and converting high-caliber candidates. Integrated workforce plan is evaluated annually, and sophisticated predictive modeling is used in scenario-based analysis Based on our study of 297 companies, we found that 35% of companies were at the lower levels of maturity (Levels 1 and 2), the majority (52%) of companies were at Level 3 TA maturity, and 13% at the highest level or Level 4. We were happily surprised to see few organizations at Level 1 as it shows that organizations have already moved to standardize their TA functions at Level 2. It’s also important to note that some organizations may be between levels, possessing some characteristics of one level and also exhibiting many of the improved behaviors of the next level up. Our research showed that there were key dimensions and factors to consider when evaluating maturity. We’re going to examine each in detail to help tie this all together.
If you don’t believe me on this topic, let me introduce you to the science. An Australian neuro scientist named David Rock has conducted research showing that we humans have different regions in our brain. These include the front part (prefrontal cortex), which helps us with learning, creativity, problem-solving, organization, and other important skills. And a deeper region called the limbic system, where the amygdala resides. The amygdala is the “survival” part of the brain.” Dr. Rock’s team discovered that when we as humans are threatened, our cognitive processing immediately shifts from the front to the back. In other words, we are “survival” machines. So if you’re at work, happily working away to solve a problem, work in a team, or learn something new and you suddenly feel threatened, all your productivity goes away. In fact, not only do you become defensive, but you start to make mistakes, avoid risks, communicate poorly, and generally worry and become unproductive. What causes this shift in processing from the front to the back of your brain? A loss of status, certainty, autonomy, relatedness, or fairness. What causes these things? Your boss criticizes you. You don’t get promoted. You hear about a reorg which wasn’t announced. Your boss micro-manages you. You aren’t invited to a meeting. Someone else gets promoted and you don’t. In fact, most of the things that happen in traditional performance reviews create this effect. This is such a strong effect that companies can measure its result. Steven Rice, the CHRO of Juniper, actually looked at Juniper’s business performance right after their twice per year performance reviews and saw a measureable dip. He concluded that their entire performance management process was doing exactly the wrong thing – forcing their entire company to shift from “front brain thinking” to “rear brain thinking” twice a year every year. And that is why they totally revamped their performance management process. Which is now one of the biggest topics in business.
Kelly Services offers outsourcing and consulting services, including recruitment, HR management and vendor management to companies worldwide. The organization, which had $5.5 billion in revenue in 2012, has about 1,100 permanent employees at its headquarters in Troy, Michigan, and about 6,800 more in branch offices worldwide. The company provides temporary employment to about 560,000 people each year. In 2008, the HR leadership team at Kelly decided it was time to take a fresh approach to performance management. There was a general sense that the old way was not working, but it was unclear exactly what lay at the root of the problem.
Kelly assembled a team to set a new course – purposely without a vision for what that course would look like. Open-mindedness and candor were important elements of what participants recall as a deeply introspective process. A key element of the process was a focus on Kelly’s fundamental beliefs and assumptions about its people. Specifically, Kelly looked at how policies and procedures can either communicate or undermine the core beliefs and expectations that leaders have regarding employees. For example, too much emphasis on monitoring behavior through tools like time clocks and activity logs can suggest distrust or an expectation that employees work only for their paychecks, not out of integrity or a desire to do a good job. Kelly took a step back to identify what managers and leaders believed about employees, then let those beliefs guide subsequent decisions.
Leaders at Kelly ultimately decided that past approaches to performance management had been paternalistic, rather than collegial. In examining their core beliefs about employees, leaders concluded that such a tone did not accurately reflect their expectations of employees. The leaders believed most employees cared about their jobs and wanted to do them well.
It followed that the aim of performance management should be to help employees follow through on their natural motivation. But conversation after conversation revealed that many regarded the performance management score as a hindrance.
Kelly could have renewed efforts to standardize the scoring process, but that began to seem like a case of the tail wagging the dog. What leaders and employees primarily wanted wasn’t more consistent scoring; it was more fruitful performance-management conversations.
In the end, the decision came down to what the scores represented for Kelly and its workforce. Rightly or wrongly, the scores had become emblematic of a management-driven, red-tape-laden approach to performance management. So, Kelly decided to abolish them. In one sense, abandoning scores was a tactical move. But in perhaps an even more important sense, the change was strategic and symbolic – an opportunity to redirect thinking across the enterprise.
Since Kelly has abolished performance scores, they have seen higher levels of engagement from employees and received reports that performance conversations are much more honest and effective.
(c) Bersin and Associates
What are you using – are you using these?
Rallyteam(?) – “they take the career portal we designed and put it on steroids” (…like Pathgather?)