WSR October-December 2018 by IHRIM Publication

REVIEW WORKFORCE • SOLUTIONS

October-December 2018

The Official Journal of the International Association for Human Resource Information Management

IHRIM.ORG

Be Great at Service Delivery. Execute and Innovate for the Future.

See the Buyer’s Guide, Page 22-23

Contents

Volume 9, Number 4 October-December 2018

From the Editors 3

IHRIM Insights

Michael Rudnick

Mick Collins, IHRIM Vice-Chair

The Future of Work: Can you Answer These Strategic Questions? 7 A letter to Management and HR 30 By Ravin Jesuthasan, Willis Towers Watson and John Boudreau, Ph.D., University of Southern California As has been suggested in the authors’ books, work will be constantly reinvented as technology and automation continue their inexorable march forward. However, that evolution will not make humans obsolete. Indeed, it will often make humans not only more vital, but far more valuable in ways that were impossible without automation.

Using Analytics to Promote Organizational Agility 12 By Roy Altman, Peopleserv The term “agile” has moved beyond the original reference to a software project methodology into a framework that pervades all business functions. This article focuses on how agile relates to organizational design and structures and how the agile methodology can better prepare organizations for the challenges they face in today’s dynamic business environment.

THE DEATH OF HR: Who Killed H. (Harriet) R. (Rose) Job? 17 By Marc S. Miller, Marc S. Miller Associates This article, part one of a two-part article, is excerpted from the author’s most recent book. As the author so ably describes, it is “a cautionary tale” and describes what happens to Harriet (H) R. (Rose) Job because she was unaware of the changing environments affecting her workplace and didn’t take the initiative to make the changes necessary to benefit her company and its employees.

HR Business Partners: Are they Helping or Hurting your Efforts to be an Evidence-Based HR Function? 24 By Helen Friedman and Anna Marley, Merit Analytics Group LLC HR business partners are known change agents for organizations and, as such, analytics (and being analytical) are essential tools to help them drive and deliver change within their organizations. What better way to align leaders than to show them the facts and consequences of their actions?

The Future of Strategic Talent Acquisition 27 By Gayle Norton, DeGarmo The art and science of recruitment has become much more about strategy and relationships. In order to execute strategically you must have the right people. Use artificial intelligence to automate the tasks and let the recruiters focus on what they do best – finding the right candidates and building relationships.

By Jennifer Farris, Squadley and FarsideHR Solutions Are you out of shape...as a manager? Or perhaps, never been trained to be a manager but asked to play the role? Being a manager isn’t easy, much less being a great manager. Using the “physical fitness metaphor,” the author describes how you can be a great manager – that is, if you really want to be a manager!

Workforce Data Transformation to Insight 33 By Jeff Higgins, Human Capital Management Institute Today, some HR executives might believe they are partners at the strategy table without realizing that, in fact, they are not. This is problematic because if HR is only executing strategic decisions, or is invited to the table after strategic decisions have been made, then the strategy part is over and HR is there to do operational work, not be a strategic partner.

We Need to Talk! 36 By Dieter Kern and Hanning Kruse, Mercer HR managers have an ever-growing abundance of issues to deal with, but there is one small comfort: when it comes to work, some things never change. Three aspects remain essential: value-adding people management, advising business on organizational changes, and making the HR organization more effective and more efficient.

The Powers and Pitfalls of Artificial Intelligence 39 By Bernadette Smith, Equality Institute and Rhodes Perry, Rhodes Perry Consulting, LLC As we entrust AI with more complex and consequential decisions, it’s critical that we continuously monitor, evaluate, and train AI over the long-term, just as we educate our people, to stay up to speed on the latest changes in our industries to remain relevant and competitive. The most proactive organizations programming AI to do good will be best positioned to leverage AI to help their organization perform well.

Strategic HR Service Delivery: Are You Organized for Success? 42 By Katherine Jones, Ph.D. How the HR function in your organization is structured is within your control. How, when, and where technology and people are deployed is a crucial element in efficient and effective delivery of employee services and overall personnel management. Conduct a critical assessment of your organization and determine whether your current model is both successful today and structured to provide value in the future.

Buyer’s Guide Workforce Solutions Review (ISSN 2154-6975) is published quarterly for the International Association for Human Resource Information Management by Futura Publishing LLC, 12809 Shady Mountain Road, Leander, TX 78641. Subscription rates can be found at www.ihrimpublications.com. Please send address corrections to Workforce Solutions Review at the address above.

Page 22-23

www.ihrim.org • Workforce Solutions Review • October-December 2018

Volume 9, Number 4 October-Decmber 2018

Workforce Solutions Review is a publication of the International Association for Human Resource Information Management, whose mission is to be the leading professional association for knowledge, education and solutions supporting human capital management. Opinions expressed herein are not necessarily those of the editors, the IHRIM board of directors or the membership. © 2018 All rights reserved

EDITORIAL COMMITTEE Managing Editor

ERIK BERGGREN, VP of Research, IDC, San Mateo, CA USA JOSH BERSIN, Principal and Founder, Bersin by Deloitte, Oakland, CA USA jbersin@bersin.com SCOTT BOLMAN, HR Transformation & HR Excellence Practice, Deloitte, bolmanscott@yahoo.com YVETTE CAMERON, Global Vice President Strategy, SuccessFactors, Littleton, CO Yvette.cameron@successfactors.com LEW CONNER, Executive Director, Higher Education User Group, Gilbert, AZ USA lconner@heug.org

BRUNO QUERENET, Head of HR, Think Surgical Bruno.querenet@gmail.com

ELENA M. ORDÓÑEZ DEL CAMPO, Senior VP Global Delivery Unit, SAP AG, Frankfurt, Germany elena. ordonez@sap.com

Co-Managing Editor

GARY DURBIN, Chief Technology Officer, SynchSource, Oakland, CA USA hacker@synchsource.com

MICHAEL RUDNICK, CEO, Velaku LLC, Michael.rudnick@gmail.com

Associate Editors ROY ALTMAN, Founder/CEO, Peopleserv, New York, NY roy@peopleserv.com SCOTT BOLMAN, HR Transformation Consulting Leader, Deloitte, bolmanscott@yahoo.com SHAWN FITZGERALD, AMS Portfolio Manager, Alight Solutions, Shawn.fitzgerald@alight.com DAVID GABRIEL, ED.D., Global Reach Leadership, Berkeley, CA USA, davidgabriel@gmail.com BOB GREENE. Account Executive, Ascentis, San Mateo, CA, Bob.Greene@ascentis.com JEFF HIGGINS, CEO, Human Capital Management Institute, Marina Del Rey, CA USA jeff.higgins@hcminst.com DENISE LAFORTE, Partner, North America HR Transformation Practice Leader Mercer, Chicago, IL, USA, Denise.laforte@mercer.com

Dr. CHARLES H. FAY, Professor, School of Management & Labor Relations, Rutgers University, Highland Park, NJ USA cfay@smlr.rutgers.edu DR. URSULA CHRISTINA FELLBERG, Owner & Managing Director, UCF-StrategieBeraterin, Munich, Germany ucfell@mac.com

JIM HOLINCHECK, Leapgen, VP of Advisory Services jim.holincheck@leapgen.com CATHERINE ANN HONEY, VP Strategic Partner Relations, Safeguard World International, Boston, MA USA catherinehoney@safeguard.com KATHERINE JONES, Ph.D., Intellectual Capital Solutions, Global Head of Talent Research Katherine_ics@msn.com

DAN VANDER HEY, HR Enterprise Solutions, President and Principal Consultant, Cypress, TX, dan.vanderhey@hrenterprisesolutions.com

BOB KAUNERT, Principal, Deloitte, Philadelphia, PA USA bkaunert@yahoo.com

JULIE YOO, Founder and Chief Data Scientist, Pymetrics, julie@pymetrics.com DR. MARY YOUNG, Principal Researcher, Human Capital, The Conference Board, New York, NY USA mary.young@conference-board.org

IHRIM BOARD OF DIRECTORS Officers and Executive Committee JIM PETTIT, HRIP, SHRM-SCP, Chair MICK COLLINS, Vice Chair

STUART RUDNER, Secretary

MICHAEL J. KAVANAGH, Professor Emeritus of Management, State University of Albany (SUNY), Albany, NY USA mickey.kavanagh@gmail.com

MARK BENNETT, Work Life and Collaborative Products Strategy Director, Oracle Corp., Redwood Shores, CA USA mark.bennett@oracle.com

DAVE ULRICH, Professor, University of Michigan, Ann Arbor, MI USA dou@umich.edu

CARL C. HOFFMANN, Director, Human Capital Management & Performance LLC, Chapel Hill, NC USA cc_hoffmann@yahoo.com

DARSHANA NARAYANAN, PH.D. Research Lead at Composites Collective, New York, NY, Darshana.Narayanan@gmail.com

CECILE ALPER-LEROUX, VP Product Strategy and Development, Ultimate Software, Weston, FL cecile_leroux@ultimatesoftware.com

MARK SMITH, CEO, Chief Research Officer, and Founder of Ventana Research, San Ramon, CA USA mark.smith@ventanaresearch.com

DOUG SAMPSON, CFO

SYNCO JONKEREN, VP, HCM Applications Product Development & Management, EMEA, The Netherlands synco.jonkeren@oracle.com

EDITORIAL ADVISORY BOARD

DR. DANIEL SULLIVAN, Professor of International Business, University of Delaware, Newark, Delaware USA sullivad@lerner.udel.edu

ALSEN HSEIN, President,Take5 People Limited, Shanghai, PRC Alsen@take5people.com

JANET MERTENS, IBM, Global HR Research Lead, Toronto, ON, jmertens@ca.ibm.com

PETER WEINBERG, Founder and CEO of Qaere Solutions and The ClientBase, Chicago, IL PDWeinberg1@gmail.com

LISA STERLING, Executive Vice President, Chief People Officer, Ceridian, Lincoln, NE USA, lisa.sterling@ceridian.com

DAVID LUDLOW, Global VP, HCM Solutions, SAP, Palo Alto, CA David.ludlow@sap.com RHONDA P. MARCUCCI, CPA, Consultant for GruppoMarcucci, Chicago, IL USA rhonda@gruppomarcucci-usa.com LEXY MARTIN, Principal, Research and Customer Value, Visier, Washington, DC USA Lexy.martin1@gmail.com BRIAN RETZLAFF, ServiceNow, Executive Solution Consultant Brian.Retzlaff@servicenow.com LISA ROWAN, Program Director, HR, Learning & Talent Strategies, IDC, Framingham, MA USA lrowan@idc.com

October-December 2018 • Workforce Solutions Review • www.ihrim.org

GARY MORLOCK, COO

Board Members STACEY HARRIS, Director of Education MARY ANN MCILRAITH, Co-Director, IHRIM Communities DOROTHY NECEDA, Director, Marketing & Communications EBBY AJEGBO, Director, Member Services MATTHEW HANWELL, Co-Director, IHRIM Communities

IHRIM Staff LAURIE CARANTIT, Director of Operations MEGAN TANNER, Members Services / Communities Administrator LARRY HEMLEY, Marketing VIOLETTA TABORSKA, Graphic Designer TOM FAULKNER, WSR and Book Publisher PATTY HUBER, Advertising Sales, WSR and Web ALLISON NEWSUM, WSR and Book Designer

Michael Rudnick, Lead Editor

Michael Rudnick is the CEO and CoFounder of Velaku LLC. Previously he was Managing Partner at Prescient Digital Media and Vice President, Principal Consultant at Logical Design Solutions. He also serves as Co-Managing Editor of IHRIM’s Workforce Solutions Review magazine. He can be reached at michael.rudnick@gmail.com.

from the editor

This last issue of WSR for 2018 tackles several different subjects to help us address the challenge we all face: keeping the core, traditional, dimensions of HR and the need to do this well, while adopting new approaches, new methodologies, or technologies to address the challenges that the organization is facing today. This may look like an opposition of viewpoints, but that apparent tension between both facets of HR is what we are all facing every day. To stay relevant in the era of digital transformation, we, as HR professionals, should be focusing on building the workplaces of the future. Yet when we are spending, on average, 60 per cent or more of our work week answering emails, responding to the same questions, or manually processing forms, that there does not seem to be enough time to dedicate to innovating. You will find a blend of articles in this issue of WSR, which touch those aspects so that you can see how to better balance your time while handling those two critical success factors for HR: Be great at service delivery execution and innovate for the future. We couldn’t be more pleased, therefore, to have an article from John Boudreau and Ravin Jesuthasan on the future of work. How to account for the evolution of interactions between humans and machines? How will work and organizations be “deconstructed” as we insert more and more technology into work? The authors introduce us to their suggested frameworks to think about those questions, and are illustrating the use of those frameworks by analyzing the job of pilots and flight attendants. Roy Altman helps us understand how to drive organizational agility through analytics. His original approach uses analytics to keep organizations on track with their transformation to being more agile. It brings HR right at the core of one of the critical business evolution dictated by the volatility of the global competitive environment. Marc Miller, with his story-telling article, illustrates that HR needs to evolve. The “mom-andpop” HR is gone. Human Resource professionals must strongly depend on all types of associated HR technology to lessen their administrative burden and provide strategic actionable information to all levels of the organization. The article by Helen Friedman and Anna Marley speaks directly to HR Business Partners and their ability to use analytics. Do you feel on the side of those being analytically challenged or those being analytically savvy? And what does it mean for you as HR becomes progressively a more evidence-based organization? Gayle Norton addresses the future of Talent Acquisition. How should we look at this critical function strategically? How do we evolve it to keep it relevant, and how do we reach out to qualified candidates and keep them motivated throughout the entire hiring process? Jennifer Farris helps us look at the new requirements placed on managers as the performance management process evolves from the traditional goal setting and performance appraisal once a year to a continuous process. She suggests the use of the 6C’s to frame the change required: Clear Purpose. Cascading Goals, Clarity of Role, Continuous Feedback, Coaching, and Career Growth. In his article, Jeff Higgins reminds us about the fact that data stays data until it becomes insight. His approach to analytics for HR has been nurtured by previous roles as Finance and HR executive. Data, or number, have to tell a story. We need to make them speak to inform decisions. Dieter Kern and Hanning Kruse bring us some European perspective to the identification of the characteristics of high-performing organizations. You will see that, whether you are in Germany, where both of them work, or in the U.S., or elsewhere, what you have to look at to succeed in your digital transformation of HR has the same ingredients. Bernadette Smith and Rhodes Perry describe for us the powers and pitfalls of artificial intelligence, making us go beyond the hype of this technology and bringing awareness to its true values. We complete this issue with two articles, one from IHRIM giving us information on the organization, and the “The Back Story” article by Katherine Jones. Happy reading!! www.ihrim.org • Workforce Solutions Review • October-December 2018

(Feature - IHRIM Insights – Oct-Dec 2018)

IHRIM insights

Mick Collins, IHRIM Vice-Chair! Mick Collins, IHRIM Vice-Chair

Refocusing IHRIM for 2019…and Beyond Refocusing IHRIM for 2019…and Beyond

2019 is the 70th anniversary of NATO, the North Should seek to expand international 2019 is the 70th anniversary of •NATO, the we North American Treaty our Organization. Since itsfootprint founding in 1949, NATO sought to maintain defense for its original 12 members (now expanded to 29 American Treaty Organization. Since its founding inhas 1949, intocollective select markets? countries) against the perceived threat of attack by the Soviet Union. With the end of the Cold War, NATO has sought to maintain collective defense for its • How important are partnerships with third-party NATO’s original mission was essentially deemed a success. original 12 members (now expanded to 29 countries) organizations with similar missions? Today, NATO faces new threats• H – aow resurgent and aggressive North Korea, terrorist threats or to against the perceived threat of attack by the Soviet Union. do weRussia improve the “stickiness” of our content computing and infrastructure networks, and instability in parts of the Middle East. In response, NATO’s With the end of the Cold War, NATO’s original mission global security make more proprietary? role in underwriting mustitevolve. was essentially deemed a success. • How do we make “new technologies” work for IHRIM IHRIM – the International Association for HR Information Management – was founded in 1980 and is Today, NATO faces new threats – a resurgent Russiaits 40th year as an and our members? association dedicated to sharing expert knowledge in HR technology fast approaching with its world is changingcan rapidly. a 2017 article inthat Forbes, the and aggressive North Korea, terrorist threats to members. comput-Like NATO,•our What problems we According solve fortoour members $14 billion marketplace for HR software and platforms is reinventing itself. Fueled by mobile apps, ing and infrastructure networks, and instability in parts of they cannot easily get help with elsewhere? analytics, video, and a focus on team-centric management, we are seeing a disruptive change in the HR the Middle East. In response, NATO’s rolesoftware in underwritindustry.” 1 IHRIM’s Members Today….and Tomorrow ing global security must evolve. What does this new paradigm mean for the HRIT professional? According to Jim Pettit, IHRIM Chair, Ultimately, central the success IHRIM is a growIHRIM – the International Association“The for HR core Informaskill [of the HRIT professional] today is, andto has always been, of to really understand and be able speak business. We now have to say: 'What questions to be answered and engaged membership base. Asneed of December 31,a year tion Management – was founded in 1980toand is the fastlanguage ap- of theing from now, 18 months from now or 24 months from now that will impact the business?’ I've got to be 2017, IHRIM’s membership consisted of 757 dues-paying proaching its 40th year as an association dedicated to shar2 forward-thinking.” individuals and corporate members. While many of these ing expert knowledge in HR technology with its members. These dual pressures – to adapt to a rapidly-changing market for HR technology and building the next are dedicated, long-term members who share a very posiLike NATO, our world is changing rapidly. According to generation of strategic HRIT leaders – present IHRIM with a unique opportunity to re-envision our role in tive view of the association, the need to attract, and retain, a 2017 article in Forbes, the $14 billion marketplace for to our members. delivering education new members are undoubtedly the most important issues HR software and platforms is reinventing itself. Fueled Background to the Strategy Development Process that IHRIM must address. by mobile apps, analytics, video, and a focus on teamRecognizing the need for change andleadership to prepare a strategic plan for 2019, IHRIM staff, The team firmly believes that Board, IHRIM asand a centric management, we are seeing a disruptive change selected volunteers engaged in a three-step process to review published literature on trends in HR 1 membership organization, and an advocate for the HRIT in the HR software industry.” technology and association management, assess IHRIM performance across 2017/2018, and participate in we discussed priorities and potential investments. profession, will be strengthened if we can create an active, What does this new paradigm mean forface-to-face the HRITmeetings in which collaborative, supportive, and vocal group of members professional? According to Jim Pettit, IHRIM Chair, Examples of questions that the group discussed: who see value in the education and networking that “The core skill [of the HRIT professional] today is, and What’s in awas world of information overload and free resources? • able IHRIM founded to deliver. has always been, to really understand and be to the role of IHRIM The challenge is that our members face so many speak the language of the business. We now have to say: competing demands for their time that IHRIM needs to ‘What questions need to be answered a year from now, deliver our education in a format that alleviates members’ 18 months from now or 24 months from now that will problems and risks without the burden of wasted time. impact the business?’ I’ve got to be forward-thinking.”2 Our target markets are increasingly diverse: while our These dual pressures – to adapt to a rapidly-changing core membership is still largely drawn from the HRIT market for HR technology and building the next generarole, we see a broader group of consumers – such as tion of strategic HRIT leaders – present IHRIM with a technology buyers and implementors, vendors, analysts, unique opportunity to re-envision our role in delivering students, HR generalists, and even employees who coneducation to our members. sume HR technologies – each with their own education Background to the Strategy Development Process needs and challenges. Recognizing the need for change and to prepare a To be successful as a thriving education associastrategic plan for 2019, IHRIM Board, staff, and selected tion, IHRIM must leverage its native strengths (unique volunteers engaged in a three-step process to review position at the center of HR technology education, an published literature on trends in HR technology and asindustry-leading certification program, and long-standing sociation management, assess IHRIM performance across expertise in the HRIT field) to better serve audiences that 2017/2018, and participate in face-to-face meetings in have access to a wide range of free information sources. which we discussed priorities and potential investments. Summary of our Vision for the Future Examples of questions that the group discussed: 1. Play the Leading Role in Advocating for the • What’s the role of IHRIM in a world of information HRIT Profession overload and free resources?

October-December 2018 • Workforce Solutions Review • www.ihrim.org

IHRIM’s research shows that recent graduates joining the HRIT field care more about job opportunities and training, while experienced leaders rely on IHRIM for information on new technologies and innovative practices in HRIT management. IHRIM will become a staunch advocate for the HRIT profession – using our resources to elevate the practice, connecting HRIT to peers across the organization, and communicating the value of strong leadership in HR technology management. 2. Create an Ecosystem of HR Technology Education of which IHRIM is the Hub Our goal is to set a vision for the HR technologist of the future, cutting through the “marketing hype” to set the standards for the necessary education, learning, skills, and experiences required to achieve that vision. IHRIM’s ecosystem should be a central repository of curated educational material and experiential learning that addresses the multi-faceted needs of our members. However, critical to the success of any association is distribution – how IHRIM makes its proprietary content available to a “justin-time” education consumer. 3. Build an Unparalleled Community of Valuable, Recurring Social Connections Members typically join education associations for job and networking opportunities; IHRIM understands this and is prioritizing opportunities for professional and social collaboration that extend beyond ad-hoc interactions at events or LinkedIn connections.

What’s New for 2019?

At the time of writing, many of our new programs are just getting underway, but are organized into five distinct areas: 1. Build an industry advocacy program to promote certification, improve recognition of the profession, and create compelling careers for our members; establish brand ambassadors to deliver our message – Using a newly-formed panel of industry leaders as advisors to an advocacy program, IHRIM will build a playbook for how we see the future of the HRIT industry and the role our members will play. 2. Revamp the HRIP program to offer tiered certifications aligned with HRIT career paths and create a more immersive experience across preparation, examination, and utilization of the certification – While the revision of the current HRIP certification is underway, there are opportunities to expand the number of offerings to encompass multiple HRIT roles (junior to senior), responsibilities (implementor vs. administrator), and career paths (individual contributor or program manager) and create a more immersive experience – cohorts, online interactions – across preparation, examination, and utilization of the certification.

3. Create just-in-time education opportunities that align with the speed of change in the HR technology market; leverage technology more effectively to distribute our content – The core mission of IHRIM is to serve as the hub of HR technology education, through a combination of best practice/research around technology adoption, internal strategy, and “hot topics” (GDPR, machine learning, candidate relationship management applications). However, given the availability of free sources of education to our members, we need to improve, expand, and differentiate our offerings, with proprietary content supplemented by access to credible third-party resources. 4. Partner with adjacent HR associations, universities, consultants, and vendors to drive revenue and expand IHRIM’s reach into new member markets – Partnerships with third-party organizations – HR associations, universities, consultants, and vendors – have been episodic in nature. Alliances should benefit IHRIM in multiple ways – attracting new members, increasing revenue, distributing content, and supporting IHRIM’s brand. Existing partnerships with educational institutions such as the University of Chicago and Florida International University will supplement relationships with other content or service providers. 5. Expand the network of Communities, which serve as a feeder for membership in the national organization, create valuable relationships for local members, and provide lasting networking opportunities – In 2017, IHRIM launched its first Community, based in Florida. The organization is thriving, holding local events and Community meetings that serve to connect HRIT professionals and regularly bring subject matter experts together. IHRIM will build on the success of Florida and launch more Communities in 2019, both in the form of geographic groups and online collaborations around specific topics of interest to the membership.

A Call to Action

In summary, the next 12-18 months will be critical as IHRIM reassesses how it delivers high-quality education to an increasingly diverse membership base. The future is bright, but we need the support of readers like you to translate our vision into reality. There are many opportunities to volunteer with IHRIM, ranging from recurring participation in our education, membership or community programs to donating just a couple of hours to support a webinar or marketing activity. Please go to IHRIM.org to learn more about volunteer opportunities. It is an exciting future and we look forward to partnering with you to make the next generation of IHRIM very successful. 1 2

Forbes, “The HR Software Market Reinvents Itself,” 2017 TechTarget, “The Accidental Occupation: HRIS Administrator,” 2018

www.ihrim.org • Workforce Solutions Review • October-December 2018

ROAD TO

LOOKING FOR THE INSIDE TRACK ON A CAREER IN HRIT?

What Do They Have In Common?

They Are Invested In Their HR Technology Career It’s never a bad decision to invest in your career. Salaries in the ﬁeld of HRIT are at an all-time high...but, so are expectations. To be successful, you need a broad HR technology education that only one assocation provides.

The IHRIM HRIP Certiﬁcation brings you education in HR Technology Strategy, System Assessment & Selection, Business Process Support, Project Management, Implementation, and Operations, Get the skills and knowledge you need to your HRIT career. 6 advance October-December 2018 • Workforce Solutions Review • www.ihrim.org

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(Feature (Feature – WSR – WSR Oct-Dec Oct-Dec 2018) 2018)

feature

Ravin Jesuthasan, Willis Towers Watson and John Boudreau, Ph.D., University of Southern California

The Future of Work: Can you Answer These Strategic Questions?

Ravin RavinJesuthasan, Jesuthasan,Willis WillisTowers TowersWatson Watsonand and John JohnBoudreau, Boudreau,Ph.D., Ph.D.,University UniversityofofSouthern SouthernCalifornia California

The TheFuture FutureofofWork: Work:Can Canyou youAnswer AnswerThese TheseStrategic StrategicQuestions? Questions?

The debate about the future of work, and its there is an emerging contrast between very difsocial and organizational implications is now a ferent scenarios. For example: The The debate debate about about thethe future future ofof work, work, and and itsits social social and and organizational organizational implications implications is is now now aa constant drumbeat. For years now, economic constant constant drumbeat. drumbeat. For years years now, now, economic economic research research and and future future forecasts forecasts have have debated debated Scenario 1: research and future forecasts have debatedFor questions questions such such as as how how many many regular regular full-time full-time jobs jobs will will be be done done by by non-employees, non-employees, and and how how questions such as how many regular full-time Human Work Becomes Obsolete many many jobs jobs will will replace replace humans with with automation. automation. Many Many organization organization leaders leaders acknowledge acknowledge these these jobs will be done by non-employees, and how humans • Human work is limited to envisioning questions, questions, butbut their their primary primary focus focus is is on on the the specific specific opportunities opportunities and and challenges challenges that that they they face face many jobs will replace humans with automademand/innovating and orchestrating tion. Many organization leaders acknowledge right right now. now. They They focus focus onon whether whether toto expand expand their their talent talent acquisition acquisition options options toto include include automation options. these questions, but their primaryand focus is workers onworkers contractors contractors and giggig in• in specific specific jobs. jobs. They They focus focus onon how how toto implement new new technologies technologies Humans become primarily “consumers” ofimplement the specific opportunities and challenges that output produced by automation. like like artificial artificial intelligence intelligence (AI), (AI), machine machine learning, learning, chatbots, chatbots, robots, robots, etc., etc., how how those those new new they face right now. They focus on whether • Social and economic support such asoror technologies technologies may may displace displace their their workers, workers, and and how how best best toto reskill reskill humanely humanely transition transition thethe to expand their talentworkers acquisition options to universal basic income (UBI) become workers that that areare affected. affected. include contractors and gig workers in specific necessary to ensure continued demand for jobs. They focus on how to implement new output and a sustainable society. These These operational operational questions questions areare vitally vitally important, important, and and organization organization leaders leaders must must generally generally use use technologies like artificial intelligence (AI), mamore more sophisticated sophisticated frameworks frameworks toto address address them. them. We We have have described described such such frameworks frameworks inin our our chine learning, chatbots, robots, etc., how those In this scenario, organizations will optimize book, book, Lead Lead The The Work, Work, and and our our forthcoming forthcoming book, book, Reinventing Reinventing Jobs. Jobs. They They areare certainly certainly valuable valuable new technologies may displace their workers, human-automation work in ways that eventuforfor improving improving specific specific operational operational decisions decisions about about optimizing optimizing new new human human work work arrangements arrangements and how best to reskill or humanely transition ally vastly reduce the number of human workand and the the combination combination of of human human and and automated automated work. work. the workers that are affected. ers they employ. That would mean that their These operational questions are vitally relationship with labor markets and “employAsAs important important as such such operational operational decisions decisions are, are, leaders leaders who who exclusively exclusively focus onon improving improving such such important, and organization leadersas must ment” in society changes drastically. Their social focus operational operational decisions decisions may may miss miss anan important important emerging challenge challenge and and opportunity opportunity toto address address thethe generally use more sophisticated frameworks “license to operate” emerging would be increasingly debigger picture. picture. For For example, example, recent recent analysis analysis by by the the McKinsey McKinsey Global Global Institute Institute (McKinsey (McKinsey Global Global to address them. We bigger have described such termined by their ability to show that they treat Institute, Institute, AA Future Future that that Works: Works: Automation, Automation, Employment Employment and Productivity, Productivity, January January 2017) 2017) frameworks in our book, Lead The Work, and displaced workers humanely, that and they contribsuggests suggests a coming a coming technological revolution revolution will will eventually eventually automate automate allall economic economic activity activity our forthcoming book, Reinventing Jobs.technological They ute their fair sharethat tothat social policies that support are certainly valuableand, for improving specific almost and, most most importantly, importantly, almost allall work. work. They They forecast forecast near near complete complete automation ofof existing existing work work people’s economic viability even in the absenceautomation operational decisionswill about optimizing new huof2060 work, and that they address the inevitable will occur occur between between thethe year year 2060 and and 2100. 2100. man work arrangements and the combination inequities created when work is the province of a of human and automated work. dwindling minority of humanity. NoNo matter matter what what thethe eventual eventual future future holds, holds, there there is is anan emerging emerging contrast contrast between between very very different different As important as such operational decisions scenarios. scenarios. For For example: example: Scenario 2: are, leaders who exclusively focus on improving such operational decisions may miss an Human Work is Constantly Reinvented Scenario 1:1: Human Human Work Work Becomes Becomes Obsolete Obsolete important emerging Scenario challenge and opportunity • Work evolves continuously and rapidly as to address the bigger picture. For example, automation substitutes, augments and crerecent analysis by the McKinsey Global  Human Human work work isInstiis limited limited to to envisioning envisioning demand/innovating demand/innovating and and orchestrating orchestrating automation automation options. options. ates work.  Institute, Humans Humans become primarily primarily “consumers” of of output output produced produced by by automation. automation. tute (McKinsey Global Abecome Future that • “consumers” Work involves many different arrangeWorks: Automation, Employment and Producments beyond regular traditional employtivity, January 2017) suggests a coming technoment, such as gigs, projects, tasks, etc. logical revolution that will eventually automate • Human work remains vital and often even all economic activity and, most importantly, more valuable to economic productivity, almost all work. They forecast near complete but workers must constantly evolve to meet automation of existing work will occur between changing requirements. the year 2060 and 2100. • Reskilling and reinvention are the key No matter what the eventual future holds, determinant of social and economic status www.ihrim.org • Workforce Solutions Review • October-December 2018

and progress. • “Frictionless” access to reskilling opportunities becomes a basic social need and expectation. • Learning increasingly occurs through mechanisms that are just-in-time, bite-sized, consumer-driven, and tech-enabled. In Scenario 2, automation and human evolution will continue to create demand for “human work,” even though it will look radically different from today. As we have suggested in our books, work will be constantly reinvented as technology and automation continue their inexorable march forward. However, that evolution will not make humans obsolete. Indeed, it will often make humans not only more vital, but far more valuable in ways that were impossible without automation. Of course, any forecast is subject to uncertainty. The evolution will not be evenly distributed, either in terms of its pace or direction. Look around your organization; you can probably already see examples of the emerging patterns. You will need to look beyond simple concepts like “jobs” and “employees.” Look within your current jobs and you’ll find tasks that now or very soon won’t require any human workers. You’ll see other tasks that will require human workers, but they will be engaged in ways beyond regular full-time employment. Still other tasks will have work that will change drastically due to automation, often making human workers much more valuable, but that will require significant reskilling. Of course, you will also discover work that is likely to remain traditional for a long time, but that will not be 100 percent of the work. Responsible organization leaders should not ignore this potentially tectonic shift in the very nature of work, particularly because the eventual outcomes are already being shaped by those daily operational decisions that you make. It’s easy for organization leaders to think that it’s not their job to prepare for a future that is 40 to 60 years ahead, but the work and automation decisions your leaders are making now are already creating the patterns that will define your organization’s future position as this revolution evolves. Are those patterns setting your organization on a sustainable and defensible strategic path? Or, are they being made on an ad hoc or random basis, risking that their cumulative effect will position your organization poorly for the future?

October-December 2018 • Workforce Solutions Review • www.ihrim.org

Responsible constituents like boards, investors, and regulators are unlikely to wait much longer before they expect answers to questions like these: • What is the specific trajectory of the work in your organization? • Where will your organization likely make existing workers obsolete, and should you be staking out strategic and social positions that support large populations of displaced workers, such as UBI? • Where will your organization likely augment human value and contribution through automation that will require better-skilled and constantly evolving human workers, and should you be staking out strategic and social positions that support frictionless reskilling? • Where will your organization employ human workers, but through non-employment relationships? And, should you be staking out strategic and social positions that support making alternative work arrangements more available, lucrative and less exploitive, such as portable health and pension benefits, and task-based or skillbased employment platforms? Today, the questions are often unasked. When they are asked, the answers are often cobbled together from the daily ad hoc decisions about work and automation, often with little guiding logic, nor even a consistent framework to describe and evaluate them. We believe that leaders will be increasingly called on to offer answers that are more systematic, using common frameworks that reveal the nuanced patterns and their evolution.

Two Frameworks to See and Measure Work Evolution

We have proposed two frameworks to help leaders describe the evolution of work in their organizations. By using these frameworks consistently, they can better describe that evolution in consistent terms over time. Both frameworks rely on two fundamental principles: 1. T he patterns can only be seen at a more granular level than “jobs” and “employees,” using deconstructed elements such as tasks and capabilities. 2. T he optimal reinvention of the work depends on how the individual work tasks and worker capabilities create payoff

for the organization, something we have termed “return on improved performance (ROIP).” Using new work arrangements, technology, digitalization and artificial intelligence, the relationships between performance and value become more complex. Return on improved performance1 – similar to return on investment – measures the value of improved performance in a given position, i.e., not just the value of average performance in a job. Let’s see how these frameworks might apply. The first framework is from our book, Lead The Work: Navigating a World Beyond Employment (co-authored with David Creelman): In the first graphic, we see traditional employment and where we have been for 150 years. Work is constructed into jobs, collected in one time and a singular space, and executed through an employment relationship. The organization is self-contained, detached, insular, protective, and has a rigid shape. The reward package is permanent, collectively consistent, and uses traditional elements, i.e., money, hours, working conditions, etc. On the right, we see a world beyond employment and, arguably, the fundamental underpinnings for a world where work is constantly reinvented. Work is deconstructed into tasks, dispersed in time and space, and executed through many virtual and market relationships other than traditional employment. The organization is permeable, interconnected, collaborative and can change in shape. The reward is impermanent, individually defined, and uses imaginative elements such as game points, reputation, mission, etc. The second framework is from our forthcoming book Reinventing Jobs. There, we suggest that optimizing the combination of human and automated work also starts with the same two steps: deconstructing the work and evaluating ROIP. While Lead the Work: Navigating a World Beyond Employment shows how to construct optimal ways to engage human workers, the framework from Reinventing Jobs shows how to optimize human and automated work by considering the types of available automation, and whether automation will replace, augment or reinvent the human worker. These frameworks offer leaders a system not only for understanding work evolution at a deeper level, but also for detecting the patterns

The Assignment

The Organization

The Rewards Source: John Boudreau, Ravin Jesuthasan and David Creelman

On the left, we see traditional employment and where we have been for 150 years. Work is constructed of workinto evolution that are embedded in the dejobs, collected in one time and a singular space, and executed through an employment relationship. The organization is self-contained, detached,leaders insular, protective, and has a rigid shape. The reward cisions they make. They give a common package is permanent, collectively consistent, and uses traditional elements (money, hours, working conditions, etc.). language to describe their decisions, and then On the right, we see a world beyond employment and, arguably, the fundamental underpinnings for a to consider if the pattern of those decisions is world where work is constantly reinvented. Work is deconstructed into tasks, dispersed in time and space, and executed through many virtual and market relationships other sustainable and consistent with strategic andthan traditional employment. The organization is permeable, interconnected, collaborative and can change in shape. The reward is impermanent, individually defined, and uses imaginative elements (game points, reputation, mission, social priorities. etc.).

The second framework is from our forthcoming book Reinventing Jobs. There, we suggest that

optimizing the combination of human and automated work also starts with the same two steps: Applying the Frameworks to Airline Deconstructing the work and evaluating ROIP. While “Lead the Work” shows how to construct optimal ways to engage human workers, the framework from “Reinventing Jobs” shows how to optimize human Pilots and Flight Attendants and automated work by considering the types of available automation, and whether automation will

replace, augment reinvent the human worker.the airline Let’s look at anorexample from industry, and two prominent jobs that are evolving in some surprising ways. How should airline leaders answer questions about the strategic evolution in the work of pilots and flight at(First graphic – horizontal arrows with text sent in a PDF format tendants? What does that evolution portend for goes here) the workers that occupy those jobs now, and the workers future?employment Finally, how should On the left, of we the see traditional and where we have been for 150 years. Work is constructed into jobs, collected in oneevolved time and awork singular space, and executed through an airlines be preparing for these employment relationship. The organization is self-contained, detached, insular, protective, and roles, andpackage through their external hasboth a rigidinternally shape. The reward is permanent, collectively consistent, and uses traditional elements, i.e., money, hours, working conditions, etc. relationships and influence? Pilots critical pool of talent for an On theare right,awe see a world beyond employment and, arguably, the fundamental underpinnings for a world work is constantly airline; there must be awhere sufficient supplyreinvented. with Work is deconstructed into tasks, dispersed in time and space, and executed through many virtual and market relationships appropriate skills to operate the airline. But, other than traditional employment. The organization is permeable, interconnected, this collaborative is a segment where suffices. and can change“good in shape.enough” The reward is impermanent, individually defined, and useschart imaginative elements such as game points, reputation, mission, etc. As the below illustrates, beyond a certain standard, having higher The second framework is fromperforming our forthcomingairline book Reinventing Jobs. There, we suggest that optimizing the yield combination of human and automated work also starts with the same two steps: pilots will not additional business value deconstructing the work and evaluating ROIP. While Lead the Work: Navigating a World Beyond (defined as customer loyalty) the ways organizaEmployment shows how to construct to optimal to engage human workers, the framework Reinventing Jobs shows howone to optimize and automated work by considering the tion;from although having even pilothuman “below types of available automation, and whether automation will replace, augment or reinvent the minimum standards” can have a significantly human worker.

www.ihrim.org • Workforce Solutions Review • October-December 2018

Endnotes 1

Boudreau and Jesuthasan, Transformative HR: How Great Companies Use EvidenceBased Change for Sustainable Advantage, John Wiley & Sons, Aug 24, 2011.

https://books.google.com/boo ks?id=dPgB6KlGSlsC&pg=PT3 9&lpg=PT39&dq=Return+on+ Improved+Performance&sourc e=bl&ots=Y34nmXQSHm&sig= dU2L3lgb6sjilEsfhJW_4MaZa0 c&hl=en&sa=X&ved=0ahUKEwjjv_mC3dzOAhWmI8AKHYmeB K0Q6AEIQzAF#v=onepage&q=R eturn%20on%20Improved%20 Performance&f=false

negative impact on the performance and reputation of the organization, as well as compromise the integrity of the business model. This is the reason airlines invest in elongated career paths for pilots. For instance, it takes 20 years to move from the “right seat” of an Embraer 175 doing a short haul flight to the “left seat” of a Boeing 747 going across the Pacific Ocean. Significant investment also takes place in cockpit technology as well as in training and development, e.g., minimum simulator hours required, among other things; in order to take the left side of the curve out of play. This is a classic proficiency role: though the skills are high level, beyond a certain standard, higher performance won’t yield more value. Nevertheless, as airlines increasingly pursue competitive advantage by differentiating the customer experience – particularly for premium passengers – flight attendants become a pivotal workforce segment. Often they are the only “face of the organization” to most passengers, which suggests that higher levels of performance, particularly when it comes to delivering an experience that truly delights a passenger, can yield significantly greater customer loyalty, as the work of the flight attendant steadily shifts from the transactional to the relational. This is a classic pivotal role: higher performance yields more value. The diagram below depicts these relationships by plotting a curve showing the payoff from improved performance in the work of pilots and flight attendants. So, armed with this insight about the differential relationship between work performance and value to the company, how can we apply the rapid advances in artificial intelligence to further enhance the impact of these roles? Indeed, how can we ensure that task automation does not merely reduce labor cost, but also delivers increased performance for the human workers? To answer these questions, we need to begin deconstructing work and

Value to the Organization

Flight Attendant (Pivotal Role)

Pilot (Proficiency Role)

Legally Required to Operate

Airline Minimum Expectation

Discretionary Employee Behaviors/Effort

understand how AI can differentially handle various aspects of work. Let’s go back to our flight attendants and think specifically about how cognitive automation might enable them to take the work of delivering the optimal customer experience to a whole new level, in this case, with augmented reality powered by cognitive computing, to deliver an unprecedented level of insight. If we deconstruct the job into the three categories defined above, you would ensure that the legally required and airline minimum elements of work were highly standardized and performed to the minimum acceptable standard, while empowering and enabling the flight attendant to unleash all of his or her discretionary effort on a highly personalized level of service. Imagine flight attendants wearing a version of Google Glass, through which they can access customer data and personalized preferences. No nut dishes served to Charles in 3C given his allergy, but black coffee and a predisposition for onboard duty free; early seating meal for Sarah in 2A so she can get to sleep quickly, and so on. In scenarios such as these, machine intelligence overlaid on augmented reality further increases the steepness of the curve for the discretionary portion of this pivotal role’s work. For the flight attendant using this technology, a unit improvement in individual performance provides even greater increases in organizational value, as premium passengers are treated with a level of personalized service that would be otherwise unfathomable. Conversely, consider how social robotics can change the left side of the curve for a pilot, (i.e., the legally required element). Instead of investing the aforementioned resources to minimize the possibility of human error, AI (in this case, robot pilots or autonomous airplanes) can replace the routine and repetitive elements of the pilot role, replacing human pilots with automation in the flatter portion of the ROIP curve. That means that many traditional pilot jobs might be eliminated, for example, by allowing flights to have one less officer in the cockpit. However, it also creates new work for pilots, because it enables highly-skilled pilots to act as overseers from a distance for multiple flights. The high payoff for skilled pilots is the part of the job when unforeseen events occur, such as mechanical failures, flocks of birds that disable engines, etc. Then, the work moves beyond the routine, and requires expertise of very highly

So, armed with this insight about the differential relationship between work performance and value toSolutions the company, can we apply the rapid advances in artificial intelligence to further October-December 2018 • Workforce Reviewhow • www.ihrim.org enhance the impact of these roles? Indeed, how can we ensure that task automation does not merely reduce labor cost, but also delivers increased performance for the human workers? To

skilled pilots like Chesley “Sully” Sullenberger. Imagine having such pilots available to remotely take over the flight because they are monitoring many flights from a remote center. The organization can leverage the experience and insight of skilled pilots in a much more efficient way. The net effect is both a reduction in labor cost (as less pilots are required) and a reduction in the risk of an accident.

Answering the Strategic Work Evolution Questions

Now, recall the questions we posed earlier. • What is the specific trajectory of the work in your organization? • Where will your organization likely make existing workers obsolete, and should you be staking out strategic and social positions that support large populations of displaced workers, such as UBI? • Where will your organization likely augment human value and contribution through automation that will require better-skilled and constantly evolving human workers, and should you be staking out strategic and social positions that support frictionless reskilling? • Where will your organization employ human workers, but through non-employment relationships, and should you be staking out strategic and social positions that support making alternative work arrangements more available, lucrative and

less exploitive, such as portable health and pension benefits, and task-based or skillbased employment platforms? Airline industry leaders can give much better answers using these frameworks. They can describe the trajectory of work, not in terms of broad generalizations or simplistic attempts to estimate how many people will be displaced, but instead by deconstructing the work to describe the patterns. Work that has a flat ROIP will likely be automated, making it obsolete for humans to do that work, or at least vastly reducing the number of workers. However, within the jobs of both flight attendant and pilot are also tasks that will be significantly augmented, making the humans that do such work far more valuable. Here, reskilling is needed, such as flight attendants who evolve to be adept at working with AI and augmented reality, perhaps even teaching AI better customer service rules, and highly-skilled remote pilots that monitor many routine flights and are prepared to step in to deal with unforeseen events. Industry and company leaders are now much better equipped to focus their efforts at reskilling and humane worker reductions to the areas where they are most valuable and appropriate. They are also better prepared to work with governments, regulators, and social advocacy groups to map the implications of work evolution and encourage changes in local, national and industry policies and rules.

About the Authors

Ravin Jesuthasan is the global leader of Willis Towers Watson’s Talent and Rewards portfolio of data, software and advisory assets. He is a managing director of the firm and is based in the Chicago office. He is a recognized global thought leader and author on the future of work and human capital, and has led numerous research efforts on the global workforce, the emerging digital economy, the rise of artificial intelligence and the transformation of work. He has led numerous research projects for the World Economic Forum, including its ground-breaking study, “Shaping the Future Implications of Digital Media for Society,” and the recently launched “Creating a Shared Vision for Talent in the 4th Industrial Revolution.” He is a regular participant and presenter at the World Economic Forum’s annual meetings in Davos and Dalian/Tianjin and is a member of the forum’s Steering Committee on Work and Employment. He has been a featured speaker on the aforementioned topics at conferences in North America, Europe, Asia Pacific, the Middle East and Latin America, and quoted by leading national and international business media. He is a frequent guest lecturer at universities around the world, and has authored over 70 articles including 7 for the Harvard Business Review and his article in the HR People and Strategy Journal titled “Performance Management as a Business Discipline” received the 2014 Walker Award for the most original and valuable contribution to the HR profession. He holds a BBA (Finance) and an MBA (Finance) and is a Chartered Financial Analyst and can be reached at ravin.jesuthasan@willistowerswatson.com. John W. Boudreau, Ph.D., professor and research director at the University of Southern California’s Marshall School of Business and Center for Effective Organizations is recognized worldwide for breakthrough research on the bridge between superior human capital, talent, and sustainable competitive advantage. Dr. Boudreau consults and conducts executive development with companies worldwide that seek to maximize their employees’ effectiveness by discovering the specific strategic bottom-line impact of superior people and human capital strategies. He has more than 200 publications including books such as the Reinventing Jobs: A 4-Step Approach to Applying Automation to Work (Harvard Business, 2018); Lead The Work: Navigating a World Beyond Employment, with Ravin Jesuthasan and David Creelman (Wiley, 2015); Retooling HR: Using Proven Business Tools to Make Better Decisions about Talent, (Harvard Business, 2010); Beyond HR: The New Science of Human Capital, with Peter M. Ramstad (Harvard Business, 2007); Short Introduction to Strategic Human Resources with Wayne Cascio (Cambridge University Press, 2012); Transformative HR, with Ravin Jesuthasan (John Wiley and Sons, 2011); Global Trends in Human Resource Management: A Twenty-Year Analysis, with Edward Lawler (Stanford University Press, 2015); and Investing in People, with Wayne F. Cascio, now in its second edition (Pearson, 2011). Dr. Boudreau’s large-scale research studies and focused field research has been featured in Harvard Business Review, The Wall Street Journal, Fortune, Fast Company, Business Week, Talent Management, CFO.com, and NPR, among others. His scholarly research is published in Management Science, Academy of Management Executive, Journal of Applied Psychology, Personnel Psychology, Asia-Pacific Human Resource Management, Human Resource Management, and many others. He holds an undergraduate degree in Business from New Mexico State University, a master’s degree in Management, and Ph.D. in Industrial Relations from Purdue University’s Krannert School of Management. For more information, visit http://www.drjohnboudreau.com/ . www.ihrim.org • Workforce Solutions Review • October-December 2018

(Feature – WSR Oct-Dec 2018)

feature

Roy Altman, Peopleserv

Using Analytics to Promote Organizational Agility Roy Altman, Peopleserv The term “agile” has moved beyond the

where all activities are anticipated and planned

reference a software project methfor, organizational Usingoriginal Analytics totoPromote Organizational Agility operations have used a

odology, into a framework that pervades all hierarchical method of organizing the jobs of business functions. This article focuses on people, to anticipating that all activities will occur The term “agile” has moved beyond the original reference a software project methodology, how agile relates to organizational designfunctions. and as expected. Thefocuses reality ison more unpredictable. into a framework that pervades all business This article how agile relates to structures and how the agile methodology can People inside and outside of organizations organizational design and structures and how the agile methodology can better prepare better prepare for the challenges react business according environment. to plan, and business organizations for theorganizations challenges they face in today’sdon’t dynamic There has they face in today’s dynamic business environsituations change abruptly and frequently. a been much written lately on this subject, but this article is intended to go beyond stating theInneed ment. Thereto has been much written lately on perfect world,analytics proactive planning through for organizations get agile; it is proposing a method for using to measure how rigid agile a this subject, but this article is intended to go hierarchical organizational structures should company is, to use as a lever to pry organizations away from the traditional structures and beyond stating the need for organizations to beinto sufficient manageI’ve complex operations. In practices that are preventing them from transforming agile to entities. dubbed this metric get agile; it is proposing a method for using reality, they are woefully inadequate. the Agility Quotient (AQ). analytics to measure how agile a company is, to use analytics a lever toabout pry organizations The term agility was as originally software implementation methodologies. What Success Looks LikeRather than the away“waterfall” from the traditional and practraditional, methodstructures of managing projects, where all business activitiesenvironment, are carefully planned, In today’s even tices that are preventing them from transformthe agile methodology is more about rapid iteration of prototyping solutions. Software the best laid plans fall by the wayside once ing into work agile entities. dubbed this metric implementers closelyI’ve with business users to craft solutions that are theworkplace best fit for the the chaotic realities of the ensue. theneeds. AgilityThe Quotient (AQ). business advent of cloud-based software Former is perfect for this methodology since the boxing heavyweight champion Mike software The is configurable rather than customizable, soTyson it cansaid: be modified and onthey the fly. term agility was originally about soft“Everyone quickly has a plan until Anybody who’s ever been methodologies. part of a largeRather scale software implementation project knows that ware implementation get punched in the mouth.” That rings true often things don’t gotraditional, exactly according plan. Having a structure that morethan adaptable to changing than the “waterfall”tomethod of for many of us. is Rather create hierarchies requirements andprojects, conditions isall better suited success than one that relies on all phases managing where activities arefor careanticipating orderly business functions, we’re proceeding as planned. fully planned, the agile methodology is more better off with structures that are designed to about rapid iteration of prototyping solutions. deal with rapidly changing conditions. The concept of implementers agility has expanded beyond software When development to organizational Software work closely with busiorganizations are agile, synergies management. Just traditional software implementation used in a structured approach ness users to as craft solutions that are the best fit are created the workplace, wherebywhere resultsall activities are anticipated and planned for, organizational operations have used a hierarchical for the business needs. The advent of cloudexceed expectations. Much like a finely tuned methodbased of organizing jobsfor ofthis people, anticipatingsports that team all activities occur as expected. software isthe perfect methodology or musicwill group, championships The reality is more unpredictable. People inside and outside of organizations don’t react since the software is configurable rather than are won and great art produced when the according to plan, and situations change and frequently. In a perfect world, customizable, so itbusiness can be modified quickly and abruptly participants’ interactions mesh well. This analproactive planning through rigid hierarchical organizational structures should be sufficient to on the fly. Anybody who’s ever been part of ogy also applies to the workplace. It is human managea large complex In reality, they are woefully scaleoperations. software implementation projnatureinadequate. to try your best to excel when others ect knows that often things don’t go exactly depend on you. according to plan. Having a structure that is 1 more adaptable to changing requirements and How to Get There conditions is better suited for success than one There are major inhibitors to transforming that relies on all phases proceeding as planned. to the agile organization. Stanford’s Jeffery The concept of agility has expanded bePfeffer writes: “The hierarchical organizational yond software development to organizational structure is rooted in a worker’s need to bask in management. Just as traditional software reflected glory and be with the winners.”1 Movimplementation used a structured approach ing to an agile organization requires commit-

October-December 2018 • Workforce Solutions Review • www.ihrim.org

ment from the same people who spent their careers climbing the corporate ladder. The hierarchical management structure has been in use for thousands of years and is ingrained in our mindset. Yet, there is compelling evidence that a change in that mindset is long overdue, since it stifles the synergies that we seek. Changing an embedded culture can be hard. Organizational agility results when authority is pushed down the corporate ladder; when workers are empowered to make decisions and take ownership of their work. Therefore, achieving agility depends on executives giving up the power that they have spent their careers accruing. Therein lies the difficulty in promoting organizational agility: the willingness of executives to empower workers at lower rungs of the corporate ladder. General Stanley McChrystal realized this, as recounted in his book: Team of Teams.2 He purposely didn’t monitor the decisions of teams tasked with a mission. How can we get those with the power in corporations to embrace a methodology that entails giving up their authority? The answer in a word is: analytics. Analytics provides visibility and insight into trends in the workforce that allow us to address issues that were heretofore unknown. Analytics can be used to identify the degree to which our decisions affect organizational agility. Analytics can be used by management as a measure to determine how they are achieving the goal of organizational agility. That is the main theme of this article. “Agile” is the new buzzword, and everyone’s jumping on this bandwagon. However, many HR leaders don’t know what is entailed in getting there. I recently heard an HR leader tell her staff that they wanted to be agile, yet it was one of the most hierarchical, siloed, bureaucratic cultures going, with no commitment to change.

Ecosystem of Organizations An organization is comprised of many subgroups. In traditional organizations they are often depicted as either a hierarchical tree structure emanating down from the CEO, or a hierarchy of cost centers, divisions and departments if we’re considering the financial organizational structure. Either way, the struc-

tures themselves are pretty static, although the people can move around in the organization. In a traditional organization, there are multiple levels of management. Workers at the leaf nodes of the tree structure are often dubbed “individual contributors.” This term should be struck from the business lexicon. Hardly anyone is an individual contributor. A more accurate term is “team contributor.” A recent study3 indicated that people are essentially cooperative and “good” unless competing for scarce resources. Take the all-toocommon situation of two workers competing for a promotion – the node on the hierarchy above them. One will get it and the other will be disappointed, and may resign. Thus, hierarchical management is creating conflict in the organization where it didn’t exist before. In an agile organization, the structures are much more fluid. Teams are comprised to perform certain tasks or projects. These teams network with other teams that provide support or services. Instead of redundant levels of management, there are coaches and strategists that assist teams with experience and competencies that they may be lacking. These teams can reform from time-to-time based on the needs of the business and the status of the tasks they are performing. Thus, the agile organization can be thought of as an ecosystem of sub-organizational structures that are better equipped to deal with the unpredictable, dynamic nature of business.

Work Reimagined What if we were to reimagine the way work was organized? What if we increased the rewards to people doing the work and decreased it to the ones in the multiple layers of management, whose expertise is navigating bureaucracies and company politics? What if we pushed ownership and responsibility to the ones “in the trenches” – closest to the day-today issues? The result will be a company that is better equipped to deal with today’s business needs than the 19th century, hierarchical model we currently employ. But, how do we get there? As we mentioned before, making this transformation requires that senior executives – the very ones who are benefiting most from the status quo – relinquish their authorwww.ihrim.org • Workforce Solutions Review • October-December 2018

ity (and maybe their rewards) to the betterment of the company as a whole. Clearly, there are challenges in achieving this transition. By measuring certain aspects of our business, we can highlight behaviors that are leading to an agile transformation. Analytics can serve as the lever to prompt change from the business leaders.

Introducing the Agility Quotient We need to measure the attributes that encourage the behaviors that move companies toward a more agile workforce, so I am introducing the metrics by which an organization’s agility will be assessed: the AQ. The AQ is an amalgam of metrics that reward behavior and attributes that promote or indicate more agility, and punish those that don’t. The actual formula for the AQ is outside the scope of this article, but as a general guideline, team results matter more than individual accomplishments. Companies are rewarded for having multiple relationships across the organization identified by organizational network analysis (ONA). Companies that adhere to strict hierarchical structures, and tend to escalate issues up the hierarchy would be punished. The AQ is based on the following principles: • Measurement of how we do in groups is more important than how we do as individuals. • The lower the level in an organization where a decision is made, the better. Escalations are punished. • Workers are encouraged to contribute to multiple teams. The more connections a worker has, the better. • Workers are encouraged to experiment and not to be afraid to fail. Multiple iterations of a problem are rewarded. The AQ could be aggregated at any level, from project teams down to the individual. However, the ways individual contributions are measured are modeled on the sports stat plus/minus, which essentially rates the success of the team when each player is participating in the game. I particularly like this metric because it highlights the team chemistry role in assessing one’s contributions to their success, rather than individual statistics.

October-December 2018 • Workforce Solutions Review • www.ihrim.org

When the focus is on observing metrics, which indicate a company’s agility are transparent, it is an indication to management to alter behavior and culture and the organization to become more agile. Examples of group measurements are as follows: • On-time, on-budget completion of a project; • Survey responses of the clients the team serves; • Operating capital or income of a department or business area; • Stock price or earnings per worker for a company; and, • Return on improved performance (ROIP)4 measurement. The AQ will not only promote more agility within a company, but it will add insight into patterns and dynamics happening in the organization. For instance, it can reveal the value contributed by a worker involved in multiple projects. The CedarCrestone (now Sierra-Cedar) 2014-2015 HR Systems Survey5 introduced the concept of the Quantified Organization which, “through their HR practices and technology adoption, support an environment of datadriven decision making.” They correlated quantified practices with financial results and found that quantified organizations outperformed non-quantified organizations. It would be interesting to see a study that would indicate if companies with high AQs outperformed those with low AQs. It can be argued that agile practices are too broad to be reduced to a single metric. However, the same can be argued about IQ, which attempts to measure in one stat something as multi-faceted as human intelligence.

The Agile Operating System (AOS) Human resource systems also need to adapt to changing needs. Today’s human capital management systems (HCMs) are structured around the old paradigm: fixed processes, whose workflow adheres to hierarchical structures, where the expectation is that work will be predictable. They need to be rethought to support the agile organization, as the old mod-

el no longer holds. For instance, HR systems are geared around completing transactions, whose workflow is pre-determined, rather than providing the tools to manage uncertainty. What I foresee is the Agile Operating System (AOS), where automation provides the tools needed to effectively deal with unexpected events. The system would not be centered around the transactions, but more so around decision support and assistance in managing unforeseen situations. The AOS might include the following functions: • Ability to manage complex and fluidly changing relationships; • Ability to manage both human and nonhuman assets; • Dynamic case management, whereby new cases can be spawned and modified on the fly; • Embedded advanced analytics, including ONA; • Embedded artificial intelligence (AI), i.e., chatbots, digital assistants, etc.; • An integration hub to link together enterprise systems and data sources; and, • A flexible workflow engine to orchestrate across systems and institutionalize repeatable processes.

How to Get Started in Your Organization I do not underestimate the degree of change that I’m advocating. It will be a dramatic shift of focus from skills, knowledge, experience and capabilities, which are hallmarks of the traditional mindset, to intent, integrity, trust, honesty, transparency, which are core to the agile methodology. As we’ve seen, people in powerful positions need to abdicate some of their authority to those closer to the action. Is it all or nothing, or is it possible to do a “phased implementation” of agile HR? I believe you can begin the journey with a pilot project. But, the AQ itself will not get a company to change its culture and approach to business. You need to have executives who see the big picture and are committed to transformative changes. Without executive sponsorship, you will not succeed.

Define Project Scope Identify a business problem or project that is large enough to make a recognizable impact, but contained enough to manage independent of mission-critical business functions. For the pilot project, in line with the agile methodology, the project team and project sponsors must be in frequent contact. Not necessarily as formal meetings, but by some information sharing medium. Remember, transparency and iteration are cornerstones of the agile methodology.

Define the AQ formula Identify metrics that contribute to the AQ. Don’t worry, you can certainly change them later. The AQ itself is iteratively refined as you become more mature with the process. Identify things that can be measured. Clearly define project success based on empirical criteria. Begin tracking metrics as soon as you can. Maintain an audit trail of metrics as the definition of AQ changes. Constantly compare the AQ to goals of the project and adjust accordingly.

Restructure Teams Try to define tasks involved, independent of jobs. Assess skills and assign people with the assumption that they will need to learn new tasks. Get total buy-in from each team. Don’t be afraid to experiment – it will be time well-spent, as finding the right teams is key. Teams can interact with, and help each other so chemistry between teams is as important as within them. There will be far fewer levels of management needed in an agile organization. The discipline itself will morph into one of coaching, where the manager is filling in competencies not held by the team participants. Artificial intelligence has already had a profound impact on the workforce. As we automate more tasks, AI will fit into agile structures seamlessly. Therefore, the agile organization is a prerequisite to embedding AI within your company.

The Community’s Commitment to AQ The AQ is not a static formula, but is intended to evolve and adapt based on feedback www.ihrim.org • Workforce Solutions Review • October-December 2018

About the Author

Roy Altman is founder/CEO of Peopleserv, a software/services company whose clientele includes well-known Fortune 1000 companies in several industry sectors. Previously, he was manager of HRIS Analytics and Architecture at Memorial Sloan Kettering Cancer Center. Altman has published extensively: he has co-authored five books on Business Process Management (BPM), and has published many articles in HR, business and technology publications. He frequently presents at industry and academic conferences relating to HR and BPM. He is on the faculty of NYU’s new M.S. in Human Capital Analytics and Technology program, and has also taught at Columbia University and Baruch College. He serves on the editorial committee of IHRIM Workforce Solutions Review. He can be reached at roy@peopleserv.com.

and behaviors we want to achieve. Just like an attrition prediction algorithm, which constantly adapts and hones its formula as it gains a better understanding of the attrition which is most detrimental, and the causes of those resignations. Therefore, it is up to the community to define what we want to see in the agile organization, and the metrics which will get us there.

Going Forward The AQ is meant to be a tool that encourages adoption of agile methodologies and measures progress along that path. There is much that’s misunderstood about “agile,” and the AQ is meant to help clarify the goals and methods. It is up to the analytics community to expand on this concept and have us progress along the road to becoming dynamic organizations.

Endnotes 1

Jefferey Pfeffer, “Do Workplace Hierarchies Still Matter,” https://www.gsb.stanford.edu/insights/jeffrey-pfeffer-do-workplacehierarchies-still-matter https://journals.aom.org/doi/abs/10.5465/amp.2013.0040

General Stanley McChrystal, Tantum Collins, David Silverman, Chris Fussell, Team of Teams, Penguin Audio, 2015.

Rand, Greene and Nowack, Spontaneous Giving and Calculated Greed, https://www.nature.com/articles/nature11467. epdf?referrer_access_token=ng3Jo_aKQghgnNUxlonN9RgN0jAjWel9jnR3ZoTv0OggeQRRloNrQojESFavPzO3I6KGgkDJYPfrawPY5S1bH8sUeGYY8haO-D-uQHMTww1kfHl2z6eTM2JQoiF4bS1OqHcyLdOy3-AuFb2KTB-V7i4JDv7DmAUDRc4k_jaFExiFuPIYHRMj3ja0sGjjhKb4mMgPgOqgzyZeU0dd_LSLNN7aU9vGUgv7m0PRSZzrOz0LDOX3JWZwiMxvS3GWmOp_9WfJOqNujyysCMy5Sye0Qkioa StrwTsJIfVPohSoA0%3D&tracking_referrer=www.scientificamerican.com

oudreau, Jesuthasan, Transformative HR: How Great Companies Use Evidence-Based Change for Sustainable Advantage, JosseyB Bass, 2011; and Boudreau, Jesuthasan, “The Future of Work: Can you Answer These Strategic Questions?” in this issue of WSR.

CedarCrestone 2014-2015 HR Systems Survey: https://www.sierra-cedar.com/wp-content/uploads/sites/12/2014/11/SierraCedar_2014-2015_HRSystemsSurveyWhitePaper.pdf

October-December 2018 • Workforce Solutions Review • www.ihrim.org

(Feature – WSR Oct-Dec 2018) (If you have a better photo, that’s fine)

feature

Marc S. Miller, Marc S. Miller Associates Marc S. Miller, Marc S. Miller Associates

THE DEATH OF HR: Who Killed H. (Harriet) R. (Rose) Job?

THE DEATH OF HR: Who Killed H. A cautionary tale… (Harriet) R. (Rose) Job? A cautionary tale… Part One

The crime, crime scene, and the investiga tion to find the culprit(s) and motives.

Part One

The Investigation and the Canvas of the The crime, crime scene, and the investigation to find the culprit(s) and Neighborhood (Workplace) motives.

The police began an investigation, and “canvased” the neighborhood (aka – her work The Crime Scene environment) looking clues, things that At 7:30 p.m. on a Friday night, a member of the office cleaning staff came for upon 7:30ofp.m. on a Friday night, a member of have that have led to a disruption of may a gleaming theAtbody an employee lying alongside a cubicle on thechanged 21st floor the office cleaning staff came the body demise. office tower in a northeast city.upon The body was of foundintoher belife, thatifofnot Ms.her (H.) HarrietThis is what the an employee lying alongside a cubicle on the detectives have uncovered so far: R. (Rose) Job. The cleaning staff member called 911. 21st floor of a gleaming office tower in a northMs. Harriet Rose Job left no suicide note. Detectives found Ms.was H. found R. Job to lying upMs. near her desk. A alone. mouse She cordwas was53 years old. She had east city. The body be face that of She lived wrapped tightly her neck. Also found on the worked floor near her current body and (H.) Harriet R. around (Rose) Job. The cleaning staff at her employer for 24 years. beneath desk were stacks of paper reports, spreadsheets, manuals/binders, memberher called 911. During that time, she was promoted twice, her an Detectives appointment book, tipped over file face cabinet, a Performance Appraisal found Ms.a H. R. Job lying last promotion being 11 years ago. After interdocument (unsigned), and acord flip phone. up near her desk. A mouse was wrapped viewing some of her colleagues, the detectives tightly around her neck. Also found on the determined that she was not particularly liked, Still her computer screen – waswere an email invite to a meeting called by floorshowing near heronbody and beneath her desk but was accepted by her co-workers as being a Mr. Juan Managemento (Senor Management) at 530pm. stacks of paper reports, spreadsheets, manu“loner.” als/binders, an appointment book, a tipped over file cabinet, a Performance Appraisal What’s changed? document (unsigned), and a flip phone. Still showing on her computer screen – was an email invite to a meeting called by Mr. Juan Managemento (Senior Management) at 5:30 p.m.

The Crime Scene

While Ms. H. R. Job job every day, theher investigation While Ms. H.went R.about Job doing wentherabout doing uncovered many things that might have disrupted her work life.

job every day, the investigation uncovered The work environment surrounding Ms. Harriet Rose Job in her company, the many things that might have disrupted her work landscape, had moved from a Production-Based Industrial economy to an work life. Information-Based connected and “frictionless” economy. The work environment Ms. It was clear to The Investigation and the Canvas of the Neighborhood In her company’s industry, ”Brick andsurrounding Mortar” was disappearing. herR. company’s in general, there a new emphasis and pressure on (Workplace) H. Job inBoard herthat, company, the was work landscape,

all managers to guide the workforce at every level; seeking efficiency, effectiveness, while at the same time allowing for flexibility of thought and a high • Workforce Solutions Review • October-December 2018 degree of initiative and imaginationwww.ihrim.org from its workforce.

The police began an investigation, and “canvased” the neighborhood (aka – her work environment) looking for

had moved from a Production-Based Industrial economy to an Information-Based connected and “frictionless” economy. In her company’s industry, “Brick and Mortar” was disappearing. It was clear to her company’s board that, in general, there was a new emphasis and pressure on all managers to guide the workforce at every level; seeking efficiency, effectiveness, while at the same time allowing for flexibility of thought and a high degree of initiative and imagination from its workforce. No longer would the size of the workforce, the physical structures that house them, or even the physical assets that at any time the company might have warehoused, mattered. As such, Ms. H. R. Job found herself suddenly working in the “Knowledge Economy” (oftentimes referred to as a “Brain-based Economy.”) It was determined that Ms. H. R. Job did nothing to fit into the new mindset of the company that she was working for. Based on the follow-up “interviews” of likely suspects – it was clear that her colleagues and her management had expectations of the workforce that did not end up including the way she conducted herself and how she performed her day-to-day responsibilities. In order to survive and to thrive in a knowledge-based economy, organizations require and seek a workforce that exhibits and embraces a mindset that seeks “Breakthroughs,” desires “Exploration,” and shows “Mental Flexibility.” An ideal member of that supportive workforce must always be “Curious,” “Creative,” and “Nimble.” The most successful organizations in today’s knowledge economy are able to make, and have already accomplished on a global scale, lifestyle changing applications and tools (think Amazon, Ebay, Facebook, Uber, and the like). As organizational entities they have been able to: • Deliver market Leading, consumer pleasing, and friction-less addictive products; • Emphasize Customer Service; • Use Social Media to maximum effect and match their marketing and branding to the appropriate demographics of customer desire; and, • Understand the need to recognize the

October-December 2018 • Workforce Solutions Review • www.ihrim.org

“Window of Opportunity” for their product / app delivery. As such, these companies and Ms. Harriet Rose Job’s company (for instance) must seek out and rely on attracting and retaining a specific type of workforce. They must: • Seek the Imagination of all workers (not just employees); • Reward Ingenuity in Product Development and Marketing; • Provide their workers a team-based, but high pressure, risk taking environment; • Provide their workforce career enhancement opportunities; • Obtain and retain the best people to accomplish the above initiatives; and, • Retain employees who are seeking job enrichment and who show a willingness to gain new skills. It was clear to the detectives that were investigating the death of Ms. H. R. Job that she personally had none of the sought-after attributes. In fact, she was considered by her colleagues to be a no value-adding member of the needed workforce, if not an obstacle. This fact alone led detectives to closely focus on her colleagues and senior management as likely “Persons of Interest” in her death. Understanding this environment in which her employer was striving to survive, the detectives on the case knew soon after the investigation canvas began that the likely suspects would emerge from her workplace.

Prime Suspects and other “Persons of Interest” and their possible motives… Interview Notes and Detective Miller’s Impressions Lead Detective Miller and his investigators called all suspects and other “Persons of Interest” down to the stationhouse where they were “interviewed”/questioned. Here are some of their notes/takeaways and impressions from what they heard from the colleagues of the deceased Harriet Rose Job. Note: Suspect’s own words are emboldened and in quotes. Detective’s impressions are in bold italics.

Prime Suspects and other “Persons of Interest” and their possible motives…

Bebe Boomer

Mr. Bebe Boomer (Baby Boomer) liked to be considered a “Mentor.” H. R. Job was assigned to be his mentee. He stated that “she never listened and hardly ever showed up to any scheduled sessions and that she was a waste of his time.” Impression: Maybe Bebe Boomer was annoyed enough to do her harm?

Mel Lenial

Mr. Mel Lenial (Millennial) stated that he considered Ms. H. R. Job “old school” and that he felt he was dealing with his “grandmother,” and that she had “no patience.” stated that his time was “of course, very He valuable and was being wasted.” Impression: Maybe he wanted to get her out of the way?

Hugh Resources

Mr. Hugh Resources (Manager, Human Resources) wanted an “energetic, nimble and thoughtful staff all willing to market and sell HR’s role.” He told detectives that Ms. H. R. Job was unable to do any of this. Impression: Ms. H. R. Job reported to him, made him look bad?

Art Intelligente

Mr. Arturo Intelligente (Artificial Intelligence – AI) found Ms. H. R. Job too easy a target, He told detectives that he felt that Ms. Job was “easy to replace.” Impression: He might have wanted to get rid of her as low hanging fruit, to eliminate her lack of forward thinking towards new technology?

Ted D’Venda

Mr. Ted D’Venda (HRMS solution provider) stated that she “could not grasp the importance of new technology, could not see the future vision, nor participate as a contributing member of an implementation team.” He went on to state that any team with her on it, would suffer and the resultant implementation would go badly, thus ruining his reputation. Impression: Strong reasons for Mr. D’Venda to remove Harriet Rose Job from any possibility of being involved with an HRMS implementation effort. He would benefit from getting rid of her?

Sue “Sis” Stems

Ms. Sue “Sis” Stems told detectives that “the company needed new state-of-theart HR technology and that Ms. H. R. Job was a vocal naysayer, and unwilling to support providing any new requirements.” She also stated that Ms. H. R. Job was not “onboard” for any kind of change and that “She hated new technology.” Impression: Strong reasons to get rid of her?

Bennie Fits and Pai Roal

Mr. Fits, and Ms. Roal (Benefits and Payroll) both realized they were overburdened by inefficient workflow and spreadsheets. They wanted more empowerment and wanted to give employees direct access to their own data, thus freeing themselves from employee queries by phone or email. They both are struggling to meet expanding workforce expectations and to improve employee engagement. They both stated that Ms. H. R. Job

www.ihrim.org • Workforce Solutions Review • October-December 2018

Ed Konomy

Mr. Ed Konomy (the economy) told detectives that “our company needs to stay as an “industry leader and needed to position itself for survival and surpass others.” He specifically mentioned Mr. Jay Comp Etition (the competition) who ran their chief industry competitor. In order to survive, Mr. Konomy needed to focus on employing a smart, anticipatory mindset in all employees. He stated he needed to “remove any inefficient and non-value adding people and processes.” Impression: Maybe he started with Ms. H. R Job, an easy obstacle to remove?

was not in support of making any changes to the current HRMS and that “she was the Buzz Provement Interview Notes only and Detective Miller’s Impressions one who knew how to generate Mr “Buzz” Provement (Business Process reports from it.” Both stated that they did Lead Detective Miller and his investigators called all suspects and other “Persons Improvement) stated to detectives that “our workingwhere with they her.were Additionally, Ms of Interest” down tonot the like stationhouse “interviewed”/questioned. Painotes/takeaways Roal, and Mr. and Bennie Fits feltfrom thatwhat Ms.they H. heardorganization and its processes are full Here are some of their impressions of inconsistencies requiring multiple was an obstacle andJob would not let anyfrom the colleagues R. of Job the deceased Harriet Rose (HR Job). levels of approval, had an unnecessary thing upset her own power base and control call center, and old outdated policies Note: Suspect’s own words emboldened and in quotes. Detective’s of the oldare HRMS – of which only she knew the and procedures.” impressions are inmost. bold italics. Impression: Detectives felt that Mr. Impression: Both wanted her out of Provement was seeking to clean house the way, and were seeking new techBebe Boomer and streamline many processes. Was nology to make their work life easier – Mr. Bebe Boomer (Baby Boomer) liked to be considered a “Mentor.” H. R. Job was Ms. H. R. Job the first to go? a strong motive in itself? assigned to be his mentee. He stated that “she never listened and hardly ever showed up to any scheduled sessions and that she was a waste of his time.”

Cher Holder

Impression: Maybe Bebe was annoyed enough to dodeher harm? Ms.Boomer Cher Holder (shareholder) told

Mel Lenial

tectives that the company (in which she is a majority stockholder) “is not showing value, not performing effectively and efficiently.” Impression: Maybe she wanted to send a strong message by getting rid of Ms. H. R. Job? She was “easy pickings?”

Otto (Ot) Sur-Sing

Another external provider Mr. Otto Sur-sing (Outsourcing) was ready to take on the plentiful HR administrative work that was a time drain and inefficient throughout the company where Ms. Job worked. He told detectives that “It makes no sense to me to have the company’s internal HR function keep doing basic and repetitive administrative processes when technology provided by his firm can do it faster, cheaper, and potentially reduce headcount.” Impression: Likely that Ms. H. R. Job was against this, thus targeted?

October-December 2018 • Workforce Solutions Review • www.ihrim.org

Señor Juan Managemento

Señor Juan Managemento (Senior Management) was the highest level employee interviewed by the detectives. He is quoted as saying “I am not happy with overall performance of our workforce, and I want more “value” and need to see a better ROI overall.” He further stated that heͺ believed that Mr. Hugh Resources and Ms. H. R. Job were underperforming by not finding or building a good pipeline of talent. He said that he had “no clue” as to who were his “key employees and best performers.” He told detectives that he feels that, in general, the company’s workforce is overstaffed with “dead wood” and that he admitted to warning both Mr. Resources and Ms. Job that things had better turn around. Impression: A prime suspect with strong motive who might have targeted Ms. H. R. Job, and wanted to send a message to the rest of workforce?

Detective Miller’s impressions: It is clear that in today’s environment, with globalization, multigenerations working side-by-side, the impact of the aging baby boomers and the millennials, the already evidenced impact of Artificial Intelligence and Robotics, current societal and related behavior issues including (sexual harassment, gender bias, pay inequities, cyber threats, etc.), and the irrepressible administrative burden, all fall within the responsibilities of most HR functions within most companies. No one can doubt the importance of, and need for, a strategic HR function, one that is responsible for all these initiatives and for attracting, engaging, and retaining an effective workforce. Human Resource professionals must strongly depend on all types of associated HR technology to try to lessen their administrative burden. At the same time, they must seek to provide strategic actionable information to all levels of management throughout their organization. That dependence and critical need for the use of HR technology can be summarized as follows: • Free the People . . . by empowering them! • Identify the People that should be freed (only those willing to be empowered!) • Perform, reform and seek to reduce the Bureau-

cracy by outsourcing non-core activities. • Provide Strategic, Value-Added “Information” to the “Decision Makers” at every level of the organization. The function of HR must seize the initiative and embrace these goals. Having competent, technologically aware experts who combine an inherent thirst for information and the ability to communicate the VALUE of that information to all levels within an organization’s workforce is a necessity. HR Job in this cautionary tale, embodied by Ms. Harriet Rose Job – had not seized on any of these initiatives and in fact was unaware of the changing environments affecting her workplace. She therefore had no shield or barrier against the accusations and opinions of her colleagues. As a result…well you see what happened. To find out who killed Ms. H. R. Job and also learn about some steps to protect yourself and your HR Job…watch for part two in the next issue of Workforce Solutions Review!

About the Author (Detective)

Marc S. Miller is a nationally known thought leader, consultant, speaker, and author on many aspects of technology solutions for Human Resources. He is one of the most recognized voices in the field of HR technology. His creativity and fun attitude has been evidenced at many HR and HCM technology meetings and conferences. This article is an excerpt of his most recent book, The Death of HR: Who Killed H. (Harriet) R. (Rose) Job? It is available at www.ihrimpublications.com. You can reach Mr. Miller at marc@marcsmillerassociates.com.

www.ihrim.org • Workforce Solutions Review • October-December 2018

2018 Buyers Guide This 2018 Buyers Guide will serve as a valuable reference tool. For your convenience, the guide has two sections: a Categorical Listing and an Alphabetical listing. In the Categorical Listing, companies are listed under the product and service categories of their choice. For information on a specific company and its products and/or service, please refer to the Alphabetical Company Listing. While a listing in this guide does not constitute an endorsement by IHRIM, it does indicate that these companies are interested in serving the needs of HRIS professionals. We hope this Buyer’s Guide will assist you in your 2018 purchasing decisions.

Product Categories

Core HRIS

Optimum Solutions StarGarden Corporation

Compensation Management

Deferred Compensation DECUSOFT Executive Compensation DECUSOFT lncentive Compensation DECUSOFT

Paid Advertising

Onboarding

Optimum Solutions

Performance Management

CRG emPerform Enterprise Information Resources Inc.

Recruitment

Optimum Solutions

October-December 2018 • Workforce Solutions Review • www.ihrim.org

Trusted by organizations around the world since 2004, CRG emPerform delivers award-winning software to save time, automate & streamline vital performance management eﬀorts, and engage your company’s talent in easy, eﬀective, and ongoing feedback & development.

2018 Buyers Guide

Alphabetical Company Listing*

ONLINE REVIEWS & SELF ASSESSMENTS • 360° REVIEWS • FEEDBACK • JOURNALING & CHECK-INS NINE-BOX TALENT MATRIX • COMPENSATION PLANNING • SURVEYS • REPORTING NEW! ON-DEMAND FOR AGILEregistered, TALENT MANAGEMENT *Systems and applications referred to in this sectionFORMS are trademarked, or in progress. These names should not be used generically.

employee-performance.com

CRG emPerform

6 Antares Dr. Phase 1 Suite 200 Ottawa, ON K2E 8A9 877.711.0367 613.232.4295 info@employee-performance.com www.employee-performance.com Easy, Affordable & 100% Configurable Employee Performance Management Align, develop, reward & retain a world class workforce with award-winning performance management software backed by personal support and easy integration with existing HR systems. Join the emPerform family and see how other companies have streamline performance reviews, feedback, 360° assessments, compensation planning, succession, and surveys to engage performance and boost results. See our ad on the Back Cover.

Decusoft

70 Hilltop Rd Ste 1003 Ramsey, NJ 07446 Michele Weiss 201-258-3395 201-785-0774 Michele.Weiss@Decusoft.com www.decusoft.com You have an HCM software suite but you are managing compensation outside the system. Now what? You need COMPOSE, a specialized compensation management software solution that handles any level of variable compensation complexity, reduces your total cost of compensation administration and integrates with existing HR Solutions. Not so suite but oh so right. See our ad on the Inside Front Cover.

Enterprise Information Resources Inc.

Optimum Solutions

210 25th Ave. North, Suite 700 Nashville, TN 37203 Scott Henderson 615-329-2313 615-329-4448 sales@optimumhris.com www.optimumhris.com Optimum Solutions provides Payroll, HR, and Time & Attendance software delivered on-premise or in the cloud (OptiCloud). All applications are developed and supported internally, giving your company the individual attention it deserves while providing you with a complete, one database HRIS solution. Optimum Payroll clients currently process over 12 million paychecks annually.

StarGarden Corporation

271 Waverley Oaks Rd. Suite 207 Waltham, MA 02452 Gin O’Leary 855-589-7451 781-790-8068 info@eir-inc.com www.eir-inc.com EIR Compensation Analytics automates the delivery of compensation reports by integrating and summarizing data from multiple sources while ensuring accuracy and role-based data security. The resulting reports provide users with access to timely, accurate, actionable data to support budget decisions while reducing the time spent generating compensation analytics. See our ad on the Inside Back Cover.

300-3665 Kingsway Vancouver, BC V5R5W2 Marnie Larson 800-809-2880 604-451-0578 info@stargarden.com www.stargarden.com Let StarGarden’s 30+ years of experience help manage your most important resource. Get the right resource on task at the right time with StarGarden’s advanced HCM, Payroll, and Workflow functionality. Visit us at www.stargarden.com to learn more.

www.ihrim.org • Workforce Solutions Review • October-December 2018

feature

Helen Friedman and Anna Marley, Merit Analytics Group LLC

HR Business Partners: Are they Helping or Hurting your Efforts to be an Evidence-Based HR Function? Over our decades of experience specializing in HR analytics, we’ve seen many changes. Perhaps most dramatic is the current pervasive desire to make analytics the mainstay of HR vs. an expertise-driven sub-discipline within the domain. While we applaud and agree that data and evidence impact most — if not all — that we do in HR; as with other things, bridging from current reality to this desired way of working is no small feat. There are actually a number of strategic considerations when trying to build an HR analytics capability1 within an organization, but one stands out because it can be “make or break” for success and is seldom given sufficient time and attention.

Who can most accelerate HR analytics capability throughout your entire organization?

The initial answer for many might be having an in-house HR analytics expert. And, certainly this role is pivotal for most organizations. That said, the greatest opportunity for broad-based adoption actually may sit with an existing and more prevalent HR role: The HR business partner. This group is: • Typically closest to the business and understands their issues, priorities and tone (or, how things really work); • Usually most equipped to talk in terms that resonate with their internal customers; and, • Known to be a lynchpin to drive the HR agenda forward and make it a reality.

October-December 2018 • Workforce Solutions Review • www.ihrim.org

Yet, when we ask HR leaders whether “being analytical” is even in the HR business partner job description, the answer is still more likely to be no than yes. While few would likely argue the merits of building more analytical capability within this community, many are challenged to deliver on this need. There are several reasons for this challenge, and we’ll cover a few here. 

Typically closest to the business and understands their issues, priorities and tone

(or, how things really work); Limitations in the current analytics Usually most equipped to talk in terms that resonate with their internal customers; and, capability of the HR business partner Known to be a lynchpin to drive the HR agenda forward and make it a reality. community Yet, when we ask HR leaders whether "being analytical" is even in the HR business  

For most organizations, analytics capability inwould thelikely HRargue business community While few the merits ofpartner building more analytical capability within this community, many are challenged to deliver on this need. There are several reasons for may be quite low — as it implies knowledge of this challenge, and we’ll cover a few here. statistics, economics, industrial/organizational psychology, or some such other technical backLimitations in the current analytics capability of the HR business partner community ground. That said, being analytical is a much more fundamental capability. In effect, to what For most organizations, analytics capability in the HR business partner community may extent does your HR business partner combe quite low — as it implies knowledge of statistics, economics, industrial/organizational psychology, suchanalytically? other technical background. said, broader being analytical is a munityor some think WithThatthis much more fundamental capability. In effect, to what extent does your HR business framing in mind, you might find a somewhat partner community think analytically? With this broader framing in mind, you might find a somewhat even distribution between: even distribution between the following: partner job description, the answer is still more likely to be no than yes.

Analytically challenged Those who get discouraged or disengaged when analytical concepts and data are introduced

Analytically ready Those who understand core analytical concepts but have less exposure or rigor in data usage currently

Analytically savvy Those who use an analytical approach regularly to think through issues and build/review information

For each of these core capability levels, we may need to modify the approach and goals to be successful in building analytical capability within HR.

Analytically challenged

Analytically ready

•Strategy: This group may require the greatest degree of change management support based on their prior (often negative) exposure to analytics, but they may have the most to gain by being paired with those who are analytically ready or even savvy--as one-on-one peer support has been an effective approach to manage these stakeholders •Example: A global pharmaceutical company took a two-pronged approach to address its challenges in HR analytics by implementing both a new user-friendly technology to support basic HR analytics and strong change management efforts to drive usage

•Strategy: Analytics education can help these people apply more consistent approaches and interpretation of data to harnesss their underlying analytical nature-e.g., nurturing their natural capability •Example: One finanical services organization has implemented an education program targeting the HR business partner, teaching them how to conduct and interpret research for their business, exploring evidence-based problemsolving and basic statistical techniques

What does “being analytical” really mean?

Analytically savvy Strategy: Partnering these people with core HR analytics team/experts (internally or externally) can be an effective way to both engage this stakeholder group and enhance their capability through on-the-job learning Example: This model has been used challenged Analytically Analytically ready Analytically savvy effectively by one global consumer products company (that has been potential hypotheses and goals that can can be researched andPartnering these people •Strategy: This group may require •Strategy: Analytics education Strategy: leading the way in HR analytics) to or removed from consideration. the greatestmindset degree of change supported help these people apply more with core HR analytics embed an evidence-based across HR; while voluntary, these management support based on consistent approaches and team/experts (internally or partnerships have extended the their prior (often negative) interpretation of data to harnesss externally) can be an effective way core analytics team's reach well Let’s be blunt. is the aspect of this that this stakeholder exposureandtohas analytics, but they may theirResearch underlyingdesign analytical nature-towork both engage into their organization been a proven differentiator have the most to gain by being e.g., nurturing their natural group and enhance their capability

For each of these core capability levels, we may need to modify the approach and goals to be successful in building analytical capability within HR:

The lack of deep knowledge of analytics doesn’t have to limit an HR function from may benefit most from an educational or experiential being evidence-based or analytical. Outside Testing paired with those who are capability through on-the-job learning background in analytics. Even so, there are core analytics that 2 analytically ready or even savvy--as •Example: One finanical services Example: This model has been used of the sub-discipline of HR analytics and a are more widely used and understoodanand can provide one-on-one peer support has been organization has implemented effectively by one global consumer an effective approach to manageconstructive, few other more analytically-driven areas of education program targeting products company (that has been if not sufficient, insightsthe in most research efforts. these stakeholders HR business partner,HR teaching them leading the way in HR analytics) to business partners to be steeped HR (like Rewards), most HR professionals do •Example: A global pharmaceuticalHere, we arehownotto expecting conduct and interpret embed an evidence-based mindset complex are hoping company took a two-pronged deeply in more research for theiranalytic business,methods, but weacross HR; while voluntary, these does analytical" really mean?methods. notWhat need to "being be steeped in analytical that they can assemble and view basic factors identifying approach to address its challenges exploring evidence-based problempartnerships have extended the in HR analytics by implementing variances — solving and basic statistical core analytics or, differences within a particular factor or across team's reach well That said, regardless of the level of analytical bothfrom a newbeing user-friendly techniques into their organization and has The lack of deep knowledge of analytics doesn’t have to limit an HR function factors. One can look at variance by grouping segments (e.g., differentiator technology to support basic HR potential hypotheses been aand proven 2 and goals that can be researched evidence-based or analytical. Outsidecore of the sub-discipline of HR analyticsanalytics and a few capability, there are some fundamentals percentiles), creating standard deviations, understanding and strong change supported or removed from consideration. other more analytically-driven areas of HR (like Rewards), most HR professionals do not management efforts to drive usage medians vs. means, etc. that could be useful in raising the overall need to be steeped in analytical methods. That said, regardless of the level of analytical capability, there are someof corethe fundamentals that could be useful in raising the overall analytical mindset HR business partner Let’s be blunt. Research design is the aspect of this work that Interestingly, HR business partners frequently leave testing and analytical mindset of the HR business partner community: may benefit most fromHR an educational or experiential Interestingly, business community: Testing diagnosis to "the experts." While that model can be beneficial Diagnosis background in analytics. Even so, there are core analytics that for testing, it isfrequently not equally trueleave for diagnosis. Yes, it is generally Business leaders often describe symptoms of an HR problem partners are more widely used and understood and can provide the case that analytical experts know how to evaluate and rather than the root cause or most effective solution. While we constructive, if notdiagnosis sufficient, insights testing and to in most research efforts. Business leaders often What does "being analytical" really don’t necessarily need business leaders to be able to make these interpret the output frommean? analytical studies, but they typically Here, we are not expecting HR business partners to be steeped distinctions, do need someone translate that business are not as close to theWhile business that as HR business partners, by “the experts.” describewesymptoms oftoan deeply in more complex analytic methods, but we are hoping perspective into a productive, goal-oriented research agenda. functional design. This — albeit intentional — detachment could that they can assemble and view basic factors identifying model can be beneficial The lack of deep knowledge of analytics doesn’t have limit an HR output function HRasproblem than Just a person with rather a more severe illness might see a doctor Goal lead to missed links in the analysis ortomisunderstood and from being variances — or, differences within a particular factor or across2 and explain their symptoms, an HR business partner provides a evidence-based or analytical. Outside of the sub-discipline of HR analytics and a few for testing, it is not equally true for diagnosis. interpretation. HR business partners can be great resources in Identification the root cause or most factors. One can look at variance by grouping segments (e.g., similar service by effectively translating talent challenges into identifying these missed or misunderstood elements. other more analytically-driven areas of HR (like Rewards), most HR professionals do not Yes, it is generally percentiles), the case creating that analytical ex- understanding standard deviations, effective solution. While need to be steeped in analytical methods. That said, regardless of the level of analytical medians vs. means, etc. perts know how to evaluate and interpret the and books are popping we don’t necessarily need is not fundamentals surprising that so that manycould articlesbe capability, there are someIt core useful in raising the overall up that focus on data visualization and storytelling at a time output from analytical studies, but they typibusiness leaders to be HRpartner business partners frequently leave testing and Making Case of theInterestingly, analytical mindset HR business community: when we are trying to be more analytical. Even with the most diagnosis to "the experts." as While that model can be beneficial callyDiagnosis areChange not as close to the business HR for able to make these distinctions, we do need powerful evidence, we are repeatedly challenged to drive for testing, it is not equally true for diagnosis. Yes, it is generally business partners,Business by functional design. This leaders often describe symptoms of an HR change without a compelling way to convey key messages to problem someone to translate that business perspecthe case that analytical experts know how to evaluate and target stakeholders to influence their behavior. As thesolution. While we rather than the root or most — albeit intentional — detachment could lead interpret the output fromcause analytical studies,effective but they typically tive into a productive, goal-oriented research representative that regularly drives HR processes throughout the business leaderspartners, to be able are notnecessarily as close to the business as HR business by to make these to missed links in don’t the analysis orneed misunderorganization, HR business partners tend to be powerful agenda. Just as a person with a more severe functional design. This — albeit intentionalto —translate detachment could distinctions, we do need someone that business storytellers and this skillset business can be leveraged to cut through the stood output and interpretation. lead to missed links inHR the analysis or misunderstood output and illness might see a doctor and explain their perspective intoand a productive, goal-oriented research agenda. analytical "clutter" to focus on what’s needed to support interpretation. HR business partners can be great resources in partners can be great resources in identifying symptoms, an HR business partner provides effective Just as adecision-making. person with a misunderstood more severe elements. illness might see a doctor Goal identifying these missed or these missed or misunderstood and explain theirelements. symptoms, an HR business partner provides a a similar service by effectively translating tal- Identification similar effectively translating talent challenges into It is not service surprisingby that so many articles and books are popping ent challenges into potential hypotheses and up that focus on data visualization and storytelling at a time It is not surprising that so Case goals that can be researched andandsupported orresearchedMaking potential hypotheses goals that can be and when we are trying to be more analytical. Even with the most for Change supported or removed from consideration. many evidence, articlesweand books challenged to drive powerful are repeatedly removed from consideration. change without a compelling way to convey key messages to are popping up that focus Let’s be blunt. Research design is the aspect of this work that target stakeholders to influence their behavior. As the on data visualization and may benefit from an educational or experiential Let’s bemost blunt. Research representative that regularly drives HR processes throughout the Testing background in analytics. Even so, there are core analytics that organization, HR business partners tend to be powerful storytelling at a time when design is the of this are more widely usedaspect and understood and can provide storytellers and this skillset can be leveraged to cut through the constructive, if not sufficient, insights in most research efforts. we are trying to beanalytical more analytical. work that may benefit most "clutter" and to Even focus onwith what’s needed to support Here, we are not expecting HR business partners to be steeped effective decision-making. the most powerful evidence, we are repeatfrom an educational or deeply in more complex analytic methods, but we are hoping that they can assemble and view basic factors identifying edly challenged to drive change without a experiential background variances — or, differences within a particular factor or across compelling way to convey key messages to in analytics. Even factors. so, there are analytics One can lookcore at variance by grouping segments (e.g., percentiles), creating standard deviations, understanding target stakeholders to influence their behavthat are more widely used and understood medians vs. means, etc. and can provide constructive, if not sufficient, ior. As the representative that regularly drives Interestingly,efforts. HR business partnerswe frequently leave testing and HR processes throughout the organization, insights in most research Here, diagnosis to "the experts." While that model can be beneficial Diagnosis HR business partners tend to be powerful are not expecting HR business partners for testing, it is not equally true forto diagnosis. Yes, it is generally the case that analytical experts know how to evaluate and storytellers and this skillset can be leveraged be steeped deeply in more complex analytic interpret the output from analytical studies, but they typically to cutbythrough the analytical “clutter” and to methods, but we are hoping that they can are not as close to the business as HR business partners, functional design. This — albeit intentional — detachment could focus on what’s needed to support effective assemble and view basic factors identifying lead to missed links in the analysis or misunderstood output and decision-making. variances — or, differences within particular interpretation. HR businessapartners can be great resources in identifying these missed or misunderstood elements. factor or across factors. One can look at variWhy should HR business partners ance by grouping segments (e.g., percentiles), It is not surprising that so many articles and books are popping up that focus on data visualization and storytelling at a time creating deviations, understanding care? Makingstandard Case when we are trying to be more analytical. Even with the most for Change medians vs. means, etc. evidence, we are repeatedly challenged to drive Perhaps, rather than focus on what HR powerful change without a compelling way to convey key messages to business partners can do to be more anatarget stakeholders to influence their behavior. As the lytical (if representative that regularly drives HR processes throughout thenot already so), we should ask the

Just as change is the blessing or bane for sustained business success, … evidence is a key pillar of driving change.

organization, HR business partners tend to be powerful storytellers and this skillset can be leveraged to cut through the analytical "clutter" and to focus on what’s needed to support effective decision-making.

www.ihrim.org • Workforce Solutions Review • October-December 2018

question: Why should HR business partners care about analytics? After all, the role of the HR business partner is intense and rarely over-staffed. And, with so many HR functions either moving to, or already existing in, a strategic partnership orientation for the role of the HR business partner, one could debate the relative relevance or importance of analytics within that role’s design. In fact, analytics are well worth the time of the HR business partner and many already recognize and leverage data to inform their

leadership decision-making process. Just as change is the blessing or bane for sustained business success, analytics or, more aptly, evidence is a key pillar of driving change. HR business partners are known change agents for organizations and, as such, analytics (and being analytical) are essential tools to help them drive and deliver change within their organizations. What better way to align leaders than to show them the facts and consequences of their actions?

Endnotes 1

For reference, we are using the term “capability” in this article generally to represent the combination of knowledge, skills, abilities and behaviors that are associated with the particular capability being discussed.

hile HR functions are using different naming conventions for this work, we are using the term “HR analytics” as a general reference to the area within HR that is W focused on specific statistical studies (vs. ongoing reporting or other HR-related activities).

About the Authors

Helen Friedman is the CEO of Merit Analytics Group LLC, which she founded as a women-owned business in 2017 after more than 30 years of working in HR consulting. Her goal for the organization was to make talent analytics accessible to all HR professionals — focusing on core skill-building and opportunities to embed evidence as a foundation for effective HR management through a knowledge-transfer-centered support model. Her prior tenure has included global leadership for talent analytics consulting and technology services, where she focused on developing intellectual capital, leading the largest and most complex client engagements and tailoring technology solutions to meet unique client needs. Her work in the field of talent analytics spans all major industries and work areas, including workforce planning and optimization, talent-related dashboards, labor market analysis, and predictive/prescriptive analytics. She is an established thought leader who has spoken regularly at national conferences and has published extensively with credits in well-known media outlets, including The New York Times and the Journal of Organizational Excellence. She can be reached at admin@meritanalyticesgroup.com. Anna Marley is the COO and Market Leader at Merit Analytics Group LLC. She has over 15 years of diversified analytics experience and specific thought leadership in workforce-related analytics based on her wide range of evidenced-based workforce management engagements — from examining labor dynamics and building workforce dashboards to developing predictive and prescriptive statistical models. She differentiates her approach through her understanding of organizational business and HR strategy, which leads to more aligned, practical and effective solutions for clients. She has worked with large-scale employers across several industries, which is a testament to her versatility and cross-industry knowledge. Over her years in consulting, she has had both direct consulting responsibilities and global management roles for service development, including leading efforts to build proprietary technology to support workforce analytics and planning. She can be reached at admin@meritanalyticsgroup.com.

October-December 2018 • Workforce Solutions Review • www.ihrim.org

(Feature – WSR Oct-Dec 2018)

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Gayle Norton, DeGarmo Gayle Norton, DeGarmo

The Future of Strategic Talent Acquisition

Introduction

The Future of Strategic Talent Acquisition

We’ve gone through a 20-year period of enormous change. As the pace of technology Talent acquisition (TA) is finally being recIntroduction and innovation continues to increase and the ognized as one of most strategic aspects of HR. Talent acquisitionconsensus (TA) is finally being recognized as one shift of most aspects of HR. demographics of the workforce fromstrategic baby Surprised? There’s an overwhelming Surprised? There’s an overwhelming consensus that attracting and retaining experienced talent boomers to millennials to Gen Z, successful orthat attracting and retaining experienced talent is one of the most critical challenges companies face today. Multiple surveys point to the fact ganizations will be those who can move quickly is one of the most critical challenges compathat the availability talent isand having impact on focusing growth.on Inthe fact, a PwC survey of CEOs adapt atomajor the changes while nies face today. Multiple surveys point toofthe found of that 80ispercent see theofavailability ofworkforce. key skills as the biggest threat to their demands the changing fact that the availability talent having aof CEOs business. And,a PwC a study by the Conference Board found that the top concern of not only CEOs, major impact on growth. In fact, survey but also CHROs and CFOs, attracting talent. of CEOs found that 80 percent of CEOs see the is What Doesand Thisretaining Mean for HR Concern about the availability of never been higher. availability of keyskills skills has as the biggest threat to The impact on HR is extensive, escalating the their business. And, a study by the Conference transition from a process and administrative Board found that the top concern of not only support function to one of a strategic partner Competition foristalent is intense. One of the biggest threats to business growth today is the CEOs, but also CHROs and CFOs, attracting working alongside business leaders to deliver difficulty of finding the right talent. Companies that are on a strategic journey to transform and retaining talent. Concern about the availbusiness value. The traditional admin function productivity or continue sustainable understand thata continued the strategy behind acquiring great ability of skills has never been higher. of HR isgrowth long gone, replaced with fundamental success. In today’s world growth is Competition fortalent talent is is intense. One ofto thebusiness movement to align with thecompetitive business and business with largely dependent on the talent in your organization. biggest threats to business growth today is the a focus on analytics and business strategy. Hudifficulty of finding the right talent. Companies man Resources should lead the way in develthat are on a strategic journey to transform oping the strategies and initiatives to have the productivity or continue sustainable growth best talent mix in their organizations and build The Workforce is Evolving understand that the strategy behind acquiring the workforce of the future. great talent is fundamental to business success. In today’s competitive business world, growth The workforce as we know it Rebalancing is changing, moving toward a hybrid blended model where remote and Reskilling is largely dependent on the and talentcontingent in your orgaworkers labor continue to increase. this to hiring on-demand to solve As technology increasesIn and theshift workplace nization. key problems, organizations are rethinking the structure their future continues to evolve, jobs will beof redefined and workforces. According to SomeChallenge™ roles will change, will findings from the Conference reclassified. Board C-Suite 2018,others fewer than half (41 percent) of

The Workforce CHROs is Evolving upskilling and new career paths think their workforcesdisappear; in the next three to five years will be comprised predominantly of

The workforce as we know itfull-time is changing, willand be needed. Different skills come to the traditional, employees nearly 80 percent of will CHRO respondents foresee greater use moving toward a of hybrid blended model where withAccording a focus on digital technocontingent, non-traditional forefront, employees. to theand CEO of Intuit, gig workers already remote workers and contingent labor continue logical capabilities andainnovation. Softisskills make up 34 percent of the American workforce, number that expected to rise to 43 percent to increase. In thisbyshift to hiring on-demand to such as problem solving, leadership, creativity, 2020 solve key problems, organizations are rethinkand adaptability have become more important ing the structure of their future workforces. Acsoughtofafter. Availability of these is a of technology and We’ve gone through a 20-yearand period enormous change. As skills the pace cording to findings from the Conference Board concern not only in the general workforce, but innovation continues to increase and the demographics of the workforce shift from baby 1 C-Suite Challenge™ 2018, fewer than half (41 in the leadership team as well. boomers to millennials to Genalso Z, successful organizations will be those who can move quickly percent) of CHROs think theirtoworkforces in while focusing on the demands of the changing workforce. and adapt the changes the next three to five years will be comprised Focus on Talent Acquisition predominantly of traditional, full-time employAlign Business Strategy with Talent Strategy ees and nearly 80 percent of CHRO responTalent acquisition is 1 about delivering busidents foresee greater use of contingent, nonness value. In order to deliver value, HR must traditional employees. According to the CEO of understand the business and financial model Intuit, gig workers already make up 34 percent and what drives success for the business, and of the American workforce, a number that is how TA can help drive attainment of goals. Talk expected to rise to 43 percent by 2020. with the executive team and business leaders www.ihrim.org • Workforce Solutions Review • October-December 2018

so that you have a clear picture of the direction planned and timing for this to occur. For example, if your company is planning to expand the technology function, what roles/skills will be the critical priority – digital, automation, developers, software engineers? Are the growth plans immediate or longer term? Will the expansion be in the current location? Are there growth plans for other markets? Understanding the company’s strategic direction will enable you to outline the HR support needed to bring that to fruition.

Conduct a Recruitment Optimization

One particular strategy that can result in the most immediate return on investment involves revamping the recruitment function itself to be sure that the team is operating at maximum strength. Recruiting talent today requires broader and more sophisticated talent acquisition strategies. Think about it in terms of having the right sourcing strategy, the right number and mix of recruiters and sourcers to support the business, an employment brand (not product brand), up-to-date technologies and assessments, making sure your career site is optimized for mobile, you are onboarding candidates in a way that fits today’s market, what happens when you go through hiring spikes – and the list goes on. For many organizations, this assessment often reveals that the internal function simply can’t keep up with current needs – much less fully anticipate or handle increases in future needs. You can do this evaluation yourself if you have the internal expertise and bandwidth. However, many organizations hire consultants to conduct the assessment to get an unbiased view. Whichever approach you determine is best, it is important that this evaluation is completed. The way recruitment was done in the past won’t work in today’s environment. If you don’t have enough experienced recruiters, your team is not skilled in sourcing, or you’re still doing “post and pray,” you need to re-evaluate your strategy.

Analytics – Use Data to Tell a Story

Data is now at the forefront of talent acquisition – interpreting the data, studying the trends and analyzing the data. This can be used to answer a variety of talent questions and predict hiring outcomes. But many times, we have a lot of data and no information – the

October-December 2018 • Workforce Solutions Review • www.ihrim.org

translation of that data into the story of what it means is critical. It is important to be able to interpret the data, but also create the story, and turn it into actionable information and recommendations. According to the LI report Global Recruiting Trends 2018, the top three ways companies are using TA data is to increase retention, evaluate skills gaps and build better offers. A few examples of how data can be used: • Improve retention – One of Nielsen’s businesses wanted to better understand reasons why they were losing talent. Through analysis of people data over five years, they were able to identify that employees with a change in job responsibilities due to promotion or lateral movement with the past two years were much less likely to resign. These findings allowed them to develop a plan to improve the internal application process and proactively target high performers with opportunities • Improve quality of hire – JetBlue had been evaluating applicants against eight traits supplied by its hiring team and wanted to determine the accuracy of these traits. Through analysis of its customer feedback data, it was determined that one of the traits was not as important as one that was not included. Based on this data, JetBlue tweaked its target profile, which resulted in stronger employee engagement and higher customer satisfaction. • Identify talent location – Supply and demand data can be used to pinpoint where large pools of talent reside and focus on recruiting from these areas. This data can also be used to determine the opening of new locations or relocation of a business. If the talent pool in that area is not large enough to support the need, consideration of a different location may be in order. • Recruitment process – Analyze the data from job postings and other sourcing channels to understand the effectiveness of these resources. Analysis of the outcomes of your recruitment activities can be used to make improvements in your sourcing strategies and align dollars spent to where you can make the biggest impact.

Workforce Planning

Talent acquisition leaders need to take the lead to conduct workforce planning, divisionby-division and function-by-function with their internal clients, the line managers. To put it simply, you need to understand what type of talent you will need, where to find it, and how many hires to make for the near term as well as long term. Then, you’ll need to look to external sources to understand the depth of the talent pool in various locations for the types of jobs you need to fill. If there are only 300 engineers within a 100-mile radius of your operation, and you need to hire 50 in three years, then you need to rethink your strategy.

Why TA Matters More Now Than Ever The far-reaching impact of TA

It’s more important than ever to be strategic with TA. Why does it matter and what happens if you’re not? The case studies below provide some insight. A professional services firm identified consultant talent as a gap in their recruiting function. The firm relied heavily on staff consultants for project work with clients and these roles constituted the majority of revenuegenerating positions. Their lack of ability to attract and retain talent was seen as a major impediment to growth. Talent acquisition had become incredibly challenging and frustrating for both hiring managers and candidates, and threatened the company’s ability to compete in their market. A large new project came in and the firm needed to hire a number of specialized consultants for upcoming projects but had no consistent process to do so. They lacked a sourcing strategy, and did not have the appropriate tools to support the recruiting process. Unable to hire the consultants in the time frame needed, they lost the project. An equipment manufacturer suffered from an inefficient hiring process resulting in a very long hiring cycle. There were not enough recruiters to support the hiring demand and the fact that some of the recruiters were inexperienced added to the issue. The company also

experienced sudden hiring freezes and sharp hiring spikes, which added more pressure to the existing problems. Low success rates from the TA group led to an overreliance on agencies and disengaged/disenchanted hiring managers. A growing healthcare organization was having difficulty supporting their continuing growth and ambitious hiring goals. The recruitment structure was a traditional hospital and healthcare recruiting model where HR business partners managed both employee relations and recruiting. Requisition loads were very high, resulting in reactive recruiting versus proactive recruitment of the talent needed. The model would not support achievement of their business goals. But this one had a happy ending! Talent acquisition leadership recognized this was not a sustainable model and that changes needed to be made. A recruitment optimization was conducted and changes to the recruitment department structure, process, and technology were recommended. After implementation of the changes, outcomes showed a positive impact on candidate quality as well as time to fill and hiring manager satisfaction. Additionally, there was significant improvement in requisition close rate, decrease in vacancy rate, and a reduction in 90-day turnover along with significant savings in external search costs. As you can see, being strategic with TA is critical now and moving forward. The way we hire is changing. We are moving away from the transactional view to one where hiring is increasingly being viewed as a strategic initiative. To stay competitive it is necessary to understand and embrace these strategies. The art and science of recruitment has become much more about strategy and relationships. In order to execute strategically you must have the right people. Use artificial intelligence to automate the tasks and let the recruiters focus on what they do best – finding the right candidates and building relationships.

References

1. PwC 20th CEO Survey https:// www.pwc.com/gx/en/ceosurvey/2017/deep-dives/ceosurvey-global-talent.pdf 2. https://business.linkedin.com/ talent-solutions/blog/trendsand-research/2018/4-trendsshaping-the-future-of-hiring 3. Forbes Four Key HR Trends To Watch In 2018 https:// www.forbes.com/sites/ cheetung/2017/12/19/fourkey-hr-trends-to-watch-in2018/#78afc12619de 4. Mckinsey SKILL SHIFT AUTOMATION AND THE FUTURE OF THE WORKFORCE https://www. mckinsey.com/~/media/McKinsey/Featured%20Insights/ Future%20of%20Organizations/Skill%20shift%20Automation%20and%20the%20 future%20of%20the%20 workforce/MGI-Skill-ShiftAutomation-and-future-of-theworkforce-May-2018.ashx 5. https://www.shrm.org/resourcesandtools/hr-topics/ talent-acquisition/pages/technology-will-reshape-talentacquisition-2018.aspx 6. Conference Board C-Suite Challenge™ 2018 https:// www.conference-board.org/csuite-challenge2018/

About the Author

Gayle Norton is the director of Talent Strategy at DeGarmo, a recruitment, assessment, and consulting firm. She leads the firm’s recruitment and talent acquisition consulting practice and consults with clients on optimizing their recruitment and talent acquisition strategies to attract and retain the people they need to drive their business forward. Working in multiple industries, she has led engagements at companies ranging from startups and emerging growth companies to large, global employers including HarleyDavidson, Cadence Health, US Cellular, American College of Surgeons, USG, Ulta, and Blue Cross Blue Shield Association. She can be reached at gnorton@degarmo.com or linkedin.com/in/gaylenorton. www.ihrim.org • Workforce Solutions Review • October-December 2018

(Feature – WSR Oct-Dec 2018)

feature

Jennifer Farris, Squadley by Farside HR Solutions Jennifer Farris, Squadley and FarsideHR Solutions

A Letter to Management and HR

A Letter to Management and HR Dear Managers: Are you out of shape?

Are you out of shape...as a manager? Or perhaps, never been trained to be a manager but asked to play managers, we are told that by reading a book the role? Dear Managers: Are you out of shape? Are you out of shape...as a manager? Or

or the latest article or taking a free online

we will haveeasy, the skills Being a manager isn’t easy, much being a great manager.course, Whenthat things are not it is to in become our perhaps, never beenless trained to be a manager great managers. Sure you can say you checked nature to find excuses to not invest energy. “I have no time.” “I don’t know where to start.” “I need a but asked to play the the role? coach.” “I don’t have thearight equipment.” Being manager isn’t easy, much less being a box, but there’s no true long-term developa great manager. When things are not easy, it

ment at play, and quick fixes aren’t real fixes

forstrong athletes or managers. meanOddly, these areisthe same excuses maketotonot avoid getting in physical shape.Like As anything a chief human in our nature to findwe excuses invest resources officerthe (CHRO), coach, consultant and #MakeManagersAwesome software entrepreneur, I’ve ingful, you have to firmly commit to it if you energy. “I have no time.” “I don’t know adopted the fitness metaphor to address the resistance that leaders feel when trying to achieve their where to start.” “I need a coach.” “I don’t have want to be great. That means you must adopt vision/strategy through goal-setting, feedback, and performance processes. a regular routine that is data-driven to ensure the righttraditional equipment.” Oddly, these are the same excuses we make

continued growth and performance.

Think of it this way: no one everinreally going once ajust year result in any out Sometimes thewill idea of working to avoid getting strongbelieves physicalthat shape. As ato the gym meaningful results. In fact, most people laugh, as the answer is so obvious. To take it a step it a break into chief human resources officer (CHRO), coach, really hard is enough to make us further, actually hurts more when you work out once a year than if you worked out every day because your body sweat. However, in spite of that, at Squadley, consultant and #MakeManagersAwesome is not used to the routine. we are looking to change the conversation software entrepreneur, I’ve adopted the fitness metaphor to address the resistance that

from performance management to manage-

So why do we continue to believe that taking six their months goalsperformance. or that fillingPerformance out a performance manageleaders feel when trying to achieve vi- to setment review form once a year will achieve greatness? Does it get any better if we go the “gym” oncefeelings a quarter? evokes of sion/strategy through traditional goal-setting, ment is a phrase that often Of course not. Being a great manager, like being a great athlete, requires a shift in how you practice your angst and fear. It is often a backward-looking feedback, and performance processes. craft. It requires a commitment to a continuous routine. There is no “get rock than hardone abs” shortcut. exercise rather that focuses on mov-

Think of it this way: no one ever really ing an individual’s performance and career believes that going to the gym once a year will You Have to Really It forward. In this spirit of acceleration, great result inWant any meaningful results. In fact, most management performance can be the catalyst people laugh, as the answer is so obvious. To If we believed every ad we saw, then anyone could take a pill to in shape. Similarly, as managers, we forbe great team performance and, ultimately, take it a step further, it actually hurts more are told that by reading a book or the latest listicle or taking a free online course that we will have the business success. when you work out once a year than if you skills to become great managers. Sure you can say you checkedSo, a box, there’s no true long-term whatbut does great management perforworked out every day because your body is development at play, and quick fixes aren’t real fixes for athletes or managers. Like anything meaningful, mance look like? At Squadley we have some not used to the routine. you have to firmly commit to it if you want to be great. That means we must adopt a regular routine that is core principles (The 6 C’s) that we believe So why do we continue believe that takdata-driven to ensure continued growth to and performance. make not just great managers, but great placing six months to set goals or that filling out es to work. So if you are a manager or leader a performance review form once a year will Sometimes just the idea of working out really hard is enough to make us break into a sweat. However, in at your company, ask yourself the following achieve greatness? Does it to getchange any better spite of that, at Squadley we are looking theifconversation from performance management to questions: we go to the “gym” once a quarter? Of course management performance. Performance management is a phrase that often evokes feelings of angst and Clear Purpose – Who are we and why do Being a great manager, like beingthan a great fear. It is often anot. backward-looking exercise rather one that focuses on moving an individual's exist? athlete, requires a shift in how you practice performance and career forward. In this spirit of acceleration, greatwemanagement performance can be the craft. It requires and, a commitment a catalyst for greatyour team performance ultimately,tobusiness success. Cascading Goals – What are we doing continuous routine. There is no “get rock hard this month/quarter/year and how does abs” shortcut. it align with the purpose of the company

You Have to Really Want It

If we believed every ad we saw, then anyone could take a pill to be in shape. Similarly, as

October-December 2018 • Workforce Solutions Review • www.ihrim.org

overall?

Clarity of Role – Does everyone know their roles and expectations?

Continuous Feedback – Do we have regular feedback channels?

ness to really be impactful. At best, companies may bring in a trainer to do a few ManCoaching – Do I have effective one-to-one agement 101 sessions. But, how do you take that training and truly put it into practice? (1:1) communication and recognition with The answer also requires a shift in the role my team? of the HR team and the data we relinquish to Career Journey – Does each person on the managers directly. In the spirit of setting my team invest in their development? our talent up for success, HR should not be the “owner” of goal and performance data... Some of the answers to these questions the managers themselves should be. We are are probably found in a mix of spreadsheets, entering an era where managers need to be presentations, emails, text messages, notemore and more accountable as we evolve books, Slack messages and your memory. from a traditional workforce to one that Others may have never been considered. So, is continually more agile, not just in how yes, it takes time to sort this into something apps are a bit too disconnected from the business to in really we work towards goals, but also whobe weimpactful. At best, companies may brin cohesive that people can follow. Yes it takes a trainer to do a few Management 101 sessions. But, how do you take that training and truly put it into work with. The gig economy and the overall discipline to get into a routine of continuouspractice? competitive nature of finding great talent is ly updating the narrative around a dynamic, driving companies to seek creative ways to multi-layered plan of record. The And answer no, it’s not also requires a shift in the role of the HR team and the data we relinquish to the manager work done, including temporary easy and there’s always a reason to wait until directly. In the spirit get of setting our talent up forhiring success, HR should not be the “owner” of goal and workers, outsourcing the work, or internally tomorrow. Again, you have toperformance want it. data...the managers themselves should be. We are entering an era where managers ne hiring someoneasand them hir-workforce to one that is continually Most trainers and HR tech products disto be more and more accountable we training evolve from a versus traditional more agile, not just ing in how we workTurnover towards goals, also in who we work with. The gig economy an externally. is highbut at even some connect all these elements and many compathethem. overall competitive nature finding great is driving to seek creative ways to get of the bestof companies withtalent 1.4 years beingcompanies the nies fail to see value in some of But the work done, including hiring temporary workers, outsourcing the work, or internally hiring someone and average tenure in the tech industry for fulltruth is all of them are connected and integral training them versus hiring externally. Turnover is high at even some of the best companies with 1.4 time talent. Your managers need to deliver to having a fully productive and engaged years being the average tenure in the tech industry for full-time talent. Your managers need to deliver on certain goals, and with allinofplay, these movteam. So until your team, your division, or certain goals, and with all of these moving parts they need all the tools and data they can get ing parts in play, they need all the tools your organization can answerensure these simple that goals get met. That can’t be centralized with HR.and data they can get to ensure that goals get met. leadership questions, there’s work to be done to get your leadership game into shape. When That can’t be centralized with HR. you do, you will have more fun, be a better coach for others, spend less time in meetings, be more personally engaged and perform at levels never seen before.

How this Impacts HR

There are plenty of definitions out there as to what people think the role of HR is inside a company. The definition we subscribe to is that HR’s role is to ensure the business achieves its goals by representing the biggest investment it makes...its talent – and we are there to guide the process. Full stop. This comes in many forms. A few areas include Think of the Iron Man helmet. Jarvis is recruiting talent, being a beacon of communiconstantly displaying data so displaying that Tony Stark Think the how Iron Man helmet. Jarvis is constantly data so that Tony Stark can make the rig cation and information around whatofand decisions in the moment. That is how we need to think about our managers data. Right now, HR is th can make the right decisions in the moment. work is done, and making sure people are set channel for managing (often analyzing) and distributing performance or engagement data...but what i That is how we need to think about our manup for success in their roles with the right role of HR was not to administer data,now, but rather be the strategic coach and partner with the manager agers data. Right HR is the channel for tools, resources and skills. much like the role ofmanaging an executive coach? It would make it easier to hold managers truly accountable (often analyzing) and distributing One of the most foundational programs their roles as to the excuses of “I don’t know what the goals are” or “I don’t have the right information” no performance or engagement data...but what if guarantee business success islonger management exist. Secondly, it would most certainly raise the level of the HR function to be a true business the role of this HR type was not to administer data, development. However, executive coaching partner. If every manager had of on-demand data and but coach, just think of the accelerated rather be the strategic coach and partner with of your organization. is limited to the highest levelsperformance and coaching apps are a bit too disconnected from the busi- the manager, much like the role of an execuIt All Starts with a Routine

But, you may still be asking yourself, how can you really makeSolutions this happen? At Squadley, www.ihrim.org • Workforce Review • October-December 2018 we 31 focus on what we like to call your Base Management Index (or BMI). This determines if your managers are in

tive coach? It would make it easier to hold managers truly accountable to their roles as the excuses of “I don’t know what the goals are” or “I don’t have the right information” no longer exist. Secondly, it would most certainly raise the level of the HR function to be a true business partner. If every manager had this type of on-demand data and coach, just think of the accelerated performance of your organization.

It All Starts with a Routine

But, you may still be asking yourself, how can you really make this happen? At Squadley, we focus on what we like to call your Base Management Index (or BMI). This determines if your managers are in shape. This is a combination of key performance metrics from how people feel about the company, the

About the Author

manager, and team and individual performance. Insight into all levels is critical to really understand how managers are driving team success. But, like going to a gym for the first time, this can be overwhelming to confront all at once. Whether you are a new manager, or one that just wants to continue to improve your craft, take a moment to get some coaching on how to use the equipment and the best exercises to try from an expert. Then, make strides towards working through a routine that combines the 6 C’s. Be patient with yourself, seek advice and ask for feedback. Managing others is one of the hardest tasks, and we often don’t appreciate how that can feel, especially for those new in the role. However, you won’t get in shape by just showing up to the gym…you have to want it, and work out regularly to achieve greatness.

Jennifer Farris is a seasoned Bay Area HR executive and consultant with over 12 years’ experience in HR management. She is the CEO and co-founder of the successful consulting firm Farside HR Solutions as well as the CEO and co-founder of Squadley, a management development platform that combines the value of OKR alignment, continuous feedback and 1:1 coaching into a fast, total-management fitness routine to help #makemanagersawesome. Through her career,she has held HR leadership positions at Kabam, Practice Fusion, Ampush and Flexport. She received her bachelor’s degree from Santa Clara University and her master’s in Science from the University of Edinburgh. You can reach her at jennifer@squadley.com.

October-December 2018 • Workforce Solutions Review • www.ihrim.org

(Featureโ WSRJuly-August2018)

feature

Jeff Higgins, Human Capital Management Institute Jeff Higgins, Human Capital Management Institute

Data Transformation WorkforceWorkforce Data Transformation to Insight to Insight ย ย ย ย วก ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย

Today, some HR ย ย ย ย ย ย ย ย ย ย ย ย ย วก ย ย ย ย ย ย วก they executives might believe wasnotวค ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย also HR. are they are partners atย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย วก the strategy table with-ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย วก ย ย ย ย As an example, when I was a controller at out realizing that, in fact, they are not. This is healthcare giant Johnson & Johnson, and later ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย วก ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย วค problematic because if HR is only executing the chief financial officer for an aerospace firm, ย ย ย ย ย ย ย ย ย ย ย วก ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย วค strategic decisions, or is invited to the table I routinely would poke holes in presentations after strategic decisions have been made, then by pointing out often obvious flaws in the math ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย วก ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย the strategy part is over and HR is there to do of presentations, or failing that, asking for the ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย วค ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย operational work, not be strategic partners. story behind the data, the trend, the prediction ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย วค ย ย ย ย ย ย ย ย ย ย ย By definition, a strategic partner is helping to for next quarter or next year. However, the true ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย วก วก ย ย ย ย ย วก ย ย ย ย ย ย ย ย วก shape organizational strategy. bottom line question was, โ What is the impact ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย วก ย ย ย ย ย ย ย ย ย ย ศ ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ศ ศ ย ย ย ย วก ย ย ย ย ย ย ย ย The solutions to this problem are already to the business?โ sitting in HR, in theย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ศ ศ ย ย ย ย วก ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย วก ย ย ย ย ย ย ย ย ย ย ย workforce data captured Most of the time, the answers showed that across a variety of software systems in use at a presenters did not have actual โ realโ data to ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย วก ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย typical organization. The reality is that orgasupport their business case. For example, a ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย วค nizations are often literally drowning in HR typical conversation I had as a finance profesdata about their workforce. Starting with the sional with multiple HR professionals at differ ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย data in a typical core HR system of record such ent companies went something like this: ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย วค ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย วก ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย as Workday, SAP, Oracle, PeopleSoft, along ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย วค ย ย with payroll system data, recruiting/applicant HR: โ Many HR studies have shown that ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย วค tracking system (ATS) data, learning manageemployee turnover is a huge negative financial data, employee onboarding drain on the business.โ ment system (LMS) ย ย ย ย วก ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย system data, performance management system ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย วฆย ย ย ย ย ย ย ย ย ย ย ย ย ย วฆย ย ย ย ย ย ย ย ย วค ย ย ย ย ย ย ย data, and employee engagement survey data Finance: โ Exactly how expensive is employee ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย วก ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย just to name a few of the most common data turnover to the business? sources. ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย วก ย ย ย ย ย ย วก ย ย ย ย ย ย ย ย ย ย The path to a strategic impact role is to harHR: โ Several consulting/benchmarking orgaย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย วค ness this incredible nizations have published the cost of turnover at workforce talent data that resides across all of ย ย ย ย ย ย ย ย ย ย วก ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ฦฌ ย ย ย ย ย ย วก ย ย ย ย ย ย ย ย HR. Once such amazing 1x annual salary for exempt and ยฝ x salary for data is fully integrated, solutions to endlessly nonexempt positions.โ ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย วก ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย complex business issues can be illuminated and ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย วก ย ย ย ย ย ย ย ย ย industry plaguing challenges solved. The strate- Finance: โ So if we multiply our 20% employee ย ย ย ย วก ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย วก ย ย ย ย ย ย ย ย วก ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย gic driver role is there and only HR can harness turnover of 1,000 staff last year by an averย ย ย ย วค ย ย ย ย ย ย วก ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย วก โ What ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย business?โ the power of its data to get there. age salary of $60,000 per person, well thatโ s Sadly, the functional group that typically had $60,000,000. That amount happens to be, the ย ย ย ย ย ย ย ย ย ย ย ย วก ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย โ realโ ย ย ย ย ย ย the biggest challenge answering these quesprofit for the entire business last year. Are you ย ย ย ย ย ย ย ย ย วก ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย tions or using data ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย วค to tell a story for data-driven saying we should be unprofitable or that we ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย decision-making was HR. While any leader would have twice profit if we had no turnover?โ might be tripped upย ย ย ย วฃ by a few tough questions, the group that most Finance: โ Those numbers are completely universally missed out on the opportunity to leverage its own data for inunrealistic. Why donโ t you come back when sight, wisdom, and the true root cause of issues you have some realistic cost numbers that are www.ihrim.org โ ข Workforce Solutions Review โ ข October-December 2018

directly from our unique workforce data.” If companies can measure the value of certain types of HR talent data, they are then able to make better workforce investment decisions that can increase revenue, improve productivity, lower costs, and reduce turnover—all of which adds to the bottom line. That’s long been the problem for human resources. Everyone says that human capital is their most valuable asset, but because the value of talent can be so difficult to measure, few HR leaders have consistently tried to connect HR metrics to business impact. From an accounting standpoint, human capital is defined as a liability not an asset, since it shows up in the liabilities section of a balance sheet rather than the asset side, which is a problem. With no positive metrics for Finance to use to quantify the positive value-added contributions of employees, the default is to value only the negative employee costs. One could argue that revenue or customer satisfaction scores are such metrics, but in most organizations those metrics would only apply to customer-facing employees. Organizations need a standard analytic methodology and metric set to measure the positive value add of their talent, aka human capital, so they can quantify talent and make smarter workforce intelligence decisions. So where does one start to find and build this amazing workforce intelligence data model from everyday HR data? Start with the data. It begins by combining data from disparate sources and connecting it across multiple dimensions typically using employee identification number, aka employee id, as a key field. Even a complex metric such as Total Cost of Workforce is a combination of many common HR input metrics that can be easily found in most organizations. For example, with just 100 input metrics including some Finance and Operations data points, analytics practitioners can calculate hundreds of human capital measurements along with the change rates that shed great insight into workforce trends. It is important to note that virtually every organization I have talked to over a long career in analytics asks a nearly identical question “Our data is not clean; can we still get insight from our HR data?” Welcome to reality. No HR data is perfect! But then neither is finance data, operations data, or really most business data for that matter.

October-December 2018 • Workforce Solutions Review • www.ihrim.org

The real challenge in HR is the lack of standards for HR data, transactions, and metrics. That, combined with the tremendous flexibility of many HR systems, means there are nearly limitless ways to execute most HR transactions. The good news is that even with inconsistent, incomplete data, amazing insight and value can be obtained. Organizations don’t need the most complete and perfect data set to successfully identify and predict trends and find root causes for analytic insights. Best-in-class advanced human capital metrics and data-driven insights can come from everyday HR data such as payroll and core HR transactional data for hires, terminations, promotions, and transfers. Benchmarks and operational data can add tremendous power to HR data insights, giving added weight and understanding to the executive interpretation. For example, when HR can describe the financial dollar impact of 10 percent change in any metrics (i.e., employee engagement or turnover) the power of the story is magnified many times. Examples of such benchmarks for contextual reference and operational data include revenue for sales reps, or customer satisfaction scores for customer service staff. Every organization has some form of workforce HR data, whether in paper or electronic formats. Otherwise, organizations wouldn’t be able to run their payroll or offer benefits of any kind. They might not be easily accessible and may even be located in different database applications or departments, but HR data does exist. You get out what you put in. This is also true for workforce data and turning it into analytics insights. For example, HCMI recently helped a large publicly traded retail company answer an always challenging question, “What is the ROI of our training?” To narrow the scope, the analysis focused on organization’s sales and customer-facing staff at its 2,000 retail locations and over 6,000 sales staff. This retail organization, like many in retail had employee turnover of nearly 100 percent, with turnover rates for new hires as high as 200 percent in the first 90 days. This meant the organization generally had to hire three new sales staff in order to have just one still with the organization at the end of 90 days. Getting to the answer, required integrating three very different sets of data that included over four years of historical data included the

following: • Core HR data such as job titles, demographic data, education level, work location, store, as well as HR transactional data for all hires, terminations, promotions, transfers and re-organizations, or approximately 100 fields of data; • Sales data for all customer-facing employee staff over the four-year period; and, • Training data specifically focusing on sales and customer-facing staff training that had occurred over the last four years with attendee training hours, locations, trainer, and more. The bulk of the work involved integrating all of the disparate data from separate sources together using primarily store location, supervisor, and employee identification number. NOTE: no employee personally identifiable information was used in order to protect employee privacy and data security. Once the data was fully integrated and a series of charts comparing various metrics created, it became a matter of testing various metrics via simple statistics to look for correlation and trends that predicted success, defined by this company as increased sales and lower employee turnover. The data transformation was really a matter of using the universally understood metric of dollars to effectively value the business impact of performance changes as measured by dollars ($). Once done, the firm discovered that

the sales associates who completed a set of optional training courses led by veteran sales managers were more productive on day one than those who did not. Within three years those employees completing all courses in the “optional” training program generated on average, $250,000 more in annual revenue than their peers and turned over at less than half the rate of those who did not take the training. And yet, only 20 percent of the company’s 6,000 sales employees actually completed all of this particular training. By making it mandatory for the rest of the sales force, the company had an upside potential of $180 million in annual revenue gains, per 1,000 additional sales people completing all modules of the sales training program. Put another way, it shows a more-than-1,000 percent return on investment for one specific set of training modules for the retail company. When HR can quantify with that kind of amazing ROI, it’s easy to win support for these and other HR interventions and training programs. Once such a success is quantified and achieved, executives will be more open to supporting HR investments because they understand the ROI they can expect to achieve. According to Laurie Bassi, CEO of McBassi & Co., a consulting firm that specializes in human capital analytics, “In the absence of data, the value of the people side of the business doesn’t get the attention it deserves. Human capital metrics can ameliorate that and elevate the HR function in the eyes of leadership, stakeholders, and investors.”

About the Author

Jeff Higgins is the CEO of the Human Capital Management Institute, a driving force in workforce analytics helping companies transform data into intelligence via workforce planning and predictive analytics. With his unique experience as a senior HR executive and former CFO, he helps organizations rapidly advance their analytics and workforce planning journey to unlock billions of dollars in workforce ROI. He is a founding member of the Workforce Intelligence Consortium and a member of the SHRM Global Standards Committee on human capital. He can be reached at jeff.higgins@hcminst.com.

www.ihrim.org • Workforce Solutions Review • October-December 2018

(Feature (Feature––WSR WSROct-Dec Oct-Dec2018) 2018)

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Dieter Kern and Hanning Kruse, Mercer

We Need to Talk!

Dieter DieterKern Kernand andHanning HanningKruse, Kruse,Mercer Mercer

The list of duties for HR managers is not getpositive development. Of the more than 300 ting any smaller. This is one of the reasons why managers, predominantly from large companies, new organizational designs are now emerging surveyed in Mercer’s international HR Service in theThe field of HR. Digital “evangelists” even go Delivery study, over 40% believed they were why any This isisone reasons Thelist listofofduties dutiesfor forHR HRmanagers managersisisnot notgetting getting anysmaller. smaller. This oneofofthe the reasons why so far as to suggest that HR operations are curmeeting this requirement — a sign of progress on new designs are emerging in the HR. Digital "evangelists" neworganizational organizational arenow now emerging thefield fieldofof HR. Digital "evangelists"even evengo go rently undergoing a perioddesigns of dramatic change. the in sometimes long road to change.

We WeNeed Needto toTalk! Talk!

so that HR aaperiod ofofdramatic The reliable blueprint for HR operations has are Half ofundergoing the responding companies operate sofar faras astotosuggest suggest that HRoperations operations arecurrently currently undergoing period dramatic remained unchanged for years, and effectively with a focus on decision-making and reporting change. and change.The Thereliable reliableblueprint blueprintfor forHR HRoperations operationshas hasremained remainedunchanged unchangedfor foryears, years, and there are no real alternatives — or are there? processes, and favor centralized HR operations, effectively there are alternatives are An ofofHR effectively areno noreal real alternatives——oror arethere? there? Ananalysis analysis HRmanagement management An analysis of HRthere management consultancy while some 15% apply a decentralized model. consultancy Mercer offers further insights. Mercerconsultancy offers further insights. Mercer offers further insights. The remaining 35% opt for a combination of The authors of this article are based in Germethods. Two-thirds of the companies currently are bring perspective totothe HR manyThe and bring a of European perspective to in HR have and an organizational model that includes Theauthors authors ofthis thisarticle article arebased based inGermany Germany and bringaaEuropean European perspective HR service delivery, taking Germany and Central Europe as examples. You will find that Europe service delivery, taking Germany and Central following elements: HR Business Partner, Shared service delivery, taking Germany and Central Europe as examples. You will find that Europe Europe as examples. You of will find thatchallenges Europe Services Center, and Center of Excellence. This experiences many same North experiences many ofthe the same challengesas as NorthAmerica. America. experiences many of the same challenges as model is the leading standard in large compawith: digital HRmanagers managershave havean anever-growing ever-growingabundance abundance issues todeal deal with: digitaltransformation, transformation, NorthHR America. nies.of Aofissues total of to 83% of the companies with more HRamanagers have an ever-growing abunthan 20,000 employees combine these threeand ashortage shortageofoftalent, talent,reluctant reluctantmanagers, managers,agility agilityrequirements, requirements,employee employeeengagement engagement and dance of issues to deal with: digital transformacomponents to form a basic model for their HR experience, experience,new newmanagement managementtrends, trends,the thegeneral generaluncertainty uncertaintyand andvolatility volatilityininthe themodern modern tion, a shortage of talent, reluctant managers, functions. generation within company. worldofofwork, work,plus plusaanew new generationand withinthe the company. agilityworld requirements, employee engagement With regard to Germany, three distinct groups experience, new management trends, the general emerge. First, there are the companies that have But comfort: when ititcomes totowork, things Three Butthere there isone onesmall small comfort: when work,some some things neverchange. change.model Threefor uncertainty andis volatility in the modern world ofcomes consistently applied this never organizational work,aspects plus a new generation within the company. over 15 years, and advising expect to business stick withon iton for the remain essential: value-adding people management, aspects remain essential: value-adding people management, advising business But there is one small comfort: when it comes foreseeable future. This group includes compaorganizational organizationalchanges, changes,and andmaking makingthe theHR HRorganization organizationmore moreeffective effectiveand andmore moreefficient. efficient. to work, some things never change. Three aspects nies in the pharmaceuticals and process industry. This last enhancements specialist area, extends other This lastpoint, point, enhancements tothe theHR HRmanager's manager's specialist area,also also extendstotothat other remain essential: value-adding peopleto manThe second group consists of companies are agement, advising business on organizational at the start of a major transformation process — areas of the business and other cross-sectional functions. The HR community loves nothing areas of the business and other cross-sectional functions. The HR community loves nothing changes, and making the HR organization more such as those within the insurance industry. Fimore morethan thantalking talkingabout aboutitsitsown ownHR HRorganization. organization.So Solet's let'stalk! talk! effective and more efficient. This last point, ennally, there are some companies, primarily in the hancements to the HR manager’s specialist area, high-tech and IT industries that are rigorously Slow, Slow,Positive PositiveDevelopment Development also extends to other areas of the business and and consistently enhancing their HR organizaother cross-sectional functions. The HR comtion in line with business needs. The automotive The function of HR has been enhanced and professionalized significantly over the function HRmanagers managers been professionalized significantly munityThe loves nothingofmore than talkinghas about its enhanced industryand — which is particularly significant over in the past 20 totodemands, roles, and ––both past 20years yearswith with regard demands,tasks, tasks, roles,technology, technology, andskills skills both own HR organization. So regard let’s talk! Germany — is something of a special case, as it has always forged its own, very specific, path when it comes to HR. Against the backdrop of Slow, Positive Development digitalization, such companies often have an eye The function of HR managers has been enon what is happening at both large and small hanced and professionalized significantly over high-tech and IT companies. Ultimately, compathe past 20 years with regard to demands, tasks, nies are already finding themselves targeting the roles, technology, and skills – both domestically same employees, and this trend is set to worsen and internationally. The core idea of actively in the future. adding value is now a standard requirement in almost all HR departments — and this is a

October-December 2018 • Workforce Solutions Review • www.ihrim.org

High-Performing HR Organization — What Makes The Difference?

The results of our study show that particularly strong performance by HR departments can contribute to the success of a company by creating genuine added value for business areas and managers, responding proactively to fundamental changes and driving innovation. In companies where this is the case, the HR organization is perceived as an attractive area (86%) and is considered a “talent magnet” (91%). Approximately 70% of these high-performing HR departments apply the basic three-pillar model outlined above, which they have introduced in the last three to ten years. In the companies concerned, HR Business Partners are half as likely as their colleagues in the less successful HR organizations to be involved in the time-consuming “everyday work” such as operational requests or administrative tasks. The top-performers in our study are three times more likely to be involved in providing added value in operational areas. In practice, many HR Business Partners also see their value contribution reflected in their bonus payments. Compared with their colleagues in less effective HR departments, HR managers in successful HR organizations do three things differently. First, they consistently review and enhance their organization. Over two thirds (68%) have made changes to the structure of their organization in the past five years. They make these changes in reaction to specific contexts and work in collaboration with the business. Some 69% of board members/managers in HR discuss business and HR strategy with the CEO or COO at least twice a month. Second, they establish networks within an HR community that is working toward a common goal. The community and the individual work together in a targeted manner to enhance skills. By way of illustration, mobility within the areas of Shared Services, Centers of Excellence, and HR Business Partners, as well as between these areas, is twice as high as in average HR organizations. Somebody working as an HR Business Partner in a high-performing HR department is almost seven times more likely to benefit from a specific development activity. Third, they invest more, and more successfully, in technology. This includes standard technology such as self-services (2.6 times more common than in conventional HR organizations) and future topics such as big data and real-time evaluations (3.7 times more common).

Technology as a Guide

Technology is a constant resource when it comes to enhancing companies and HR. Established IT providers and HR startups, fueled by risk capital that is readily available, reliably and continuously supply the market with new products. Changes in recruiting illustrate how this impacts roles, and by extension organizations. Impressive technological innovations, coupled with changed labor market conditions, result in a departure from the text-book three-pillar model in this HR domain. This shows how technology, content specialization, and candidate/customer orientation lead to an end-to-end approach. Just as video interviews, virtual assessment centers, artificial intelligence, and augmented reality are used today as part of the recruitment process, we are now starting to see chatbots used in the HR Shared Services Center or leadership development.

Google as a Role Model?

Many of the ideas that come from buzzwords such as “agile HR” or “digital HR” are driven by vested interests and are simply hype generated by marketing teams. When simple HR ideas are presented at conferences or award ceremonies under these banners, some HR managers will find themselves fidgeting in their chairs, cringing with embarrassment for the speaker, or are simply irritated. Familiar organizational concepts are now resurfacing with a digital flavor. Some approaches seem to make it through even without a clear business context, based on the idea that “if it’s good enough for Google, it’s good enough for us.” Whether consciously or unconsciously, other ideas are based on a flawed theoretical approach that supposes an agile organization does not require a hierarchy. Of course, there are useful gains to be found in the buzzwords “agile” and “digital” — it’s just that tools and apps do not solve more challenging organizational matters. The weather app and the iPhone won’t help if you have to go out in miserable weather because the dog needs a walk or the daycare center is closed. What you really need are good shoes, an umbrella, and a thick coat. We have yet to see a substantial, completely new, even revolutionary, HR structure idea that has broken through to make a practical impact.

Trends

Companies such as Airbnb are also transforming the entire HR function semantically, now www.ihrim.org • Workforce Solutions Review • October-December 2018

speaking of an “EX” function. EX stands for “Employee Experience” and must be holistic and positive, so that employees will go to work engaged and with a desire to innovate. As we have seen with Facebook and co., such approaches are conceptually appealing. Outside of the tech industry, however, this holistic approach to HR is only possible for certain companies, due to the specific features of business models and workforces, and to economic factors. It’s like football: money can throw the touchdown pass, and then it gets all the attention. Seen in this context, About The Study investments in HR departments seem far more In 2016/2017, Mercer conlikely to increase than decrease. However, over ducted a global study in 43 half (56%) of the HR managers surveyed want countries and 26 industries HR spending to remain at its current level. on the subject of the HR service delivery model. The Technology companies with a Central Eurorespondents were 300 board pean headquarters are of particular interest, members and managers, in terms of general European conditions and mainly from large companies. Using the database and cultural characteristics. Companies such as SAP 21 key performance indica- have long been accustomed to operating in a tors, participating HR depart- market environment characterized by continuments were categorized as ous change brought about by technology, by either “high performance” shortages in key employee segments and by a (top 50 HR organizations), lack of superior talent. As such, HR operations “average performance” or “poor performance” (bottom and organizations in these companies often have a modern structure. What is clear in such struc50 HR organizations). In addition to details about the tures is that the role of the HR Business Partner performance of the HR func- becomes even more focused — in terms of both tion, the study also asked tasks and the hierarchical levels of managers for structural, organizational, capacity, and planning data. being overseen. This means that the role will not be eliminated. The evaluation was carried Flexibility in the HR organization is ensured out by Mercer research specialists and HR management mainly by temporary structures. What does consultants. that mean? Traditionally, this involves projects that extended across HR silos, hot housing, or workshops; the modern options are scrums, hackathons, and design thinking sessions. Flexibility enablers are developed in the form of competence pools — for HR consultants, project managers, and change experts, for example. With the need for change in terms of business models, skills, leadership, and the high frequency of reorganization, these flexibility enablers offer a sensible solution.

Conclusion: Moving, Pushing, Turning

The opportunities that digital HR represents for the HR service delivery model and its effects are controversially discussed in all quarters. In HR departments, the potential benefits of “agile” organization types understandably remain a hot topic at the moment. However, as in the past, there are “natural barriers” for HR departments in terms of technology and structure. It is important to understand and consider the basic framework. The essential conditions are generally created by the business model and the organizational context of the company in question. There are also more tangible aspects of a legal or financial nature. It is no different to any other change: the “desire” for change in the HR function (most companies) must be combined with the “ability” (fewer companies) and the “permission” (even fewer companies). The fundamental issues at the heart of good HR organization have not changed in the last 20 years. Good, modern organizational design provides the substance of the answer. The other element, the “how,” is provided by the approach to change. Change processes should be no less diverse than the practical contexts for change. In some companies, it is currently sufficient to make a gentle but continuous push toward professionalization. Elsewhere, the traditional and long-successful HR function must first be shaken up so that it can move in the direction of modernity. In the third case, it is clear that the entire company should commit to a life-sustaining transformation, and they must therefore rotate the HR function through 180 degrees — making major changes structurally, technologically, procedurally, and in terms of employees. Communication is important in all three cases, because it is vital to talk about the new HR organization. And that is all well and good, provided you do not forget about actually doing the work and trialing the system.

About the Author

Dieter Kern is a partner at Mercer and heads up the consulting firm’s Leadership and Organizational Excellence Practice. He has been advising companies and HR decision-makers on issues around HR management and organizational development for 20 years. He can be reached at dieter.kern@mercer.com. Hanning Kruse is a managing consultant in the Leadership and Organizational Excellence Practice at Mercer. For six years, he has worked as a consultant and project manager for international businesses on topics such as people strategy, HR transformation and talent management. He can be reached at hanning.kruse@mercer.com.

October-December 2018 • Workforce Solutions Review • www.ihrim.org

(Feature (Feature â&#x20AC;&#x201C;â&#x20AC;&#x201C; WSR WSR Oct-Dec Oct-Dec 2018) 2018)

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Bernadette Smith, Equality Institute and Rhodes Perry, Rhodes Perry Consulting, LLC Bernadette Rhodes Perry Perry Consulting, Consulting, Bernadette Smith, Smith, Equality Equality Institute Institute and and Rhodes Rhodes Perry, Perry, Rhodes LLC LLC

The Powers and Pitfalls of Artificial Intelligence

The The Powers Powers and and Pitfalls Pitfalls of of Artificial Artificial Intelligence Intelligence

When a workforce is diverse it has a broader understanding of the needs of its diverse clients. Naturally, when an organization better understands the needs of its target market, they can better innovate their products and services â&#x20AC;&#x201C; and that leads to an increase in revenue. According to the management consulting firm, McKinsey&Company, companies that exhibit gender and ethnic diversity are, respectively, 15 percent and 35 percent more likely to perform better than those that donâ&#x20AC;&#x2122;t. Their research shows that organizations with more racial and gender diversity also have better sales revenue, more customers and higher profits. Unfortunately, all of us, even the most wellmeaning people in Human Resources, are guilty of bias, which negatively affects the creation of a diverse and inclusive workforce. You may have heard the story of a man named Jose, who was having no luck on his job applications. He began applying with the name â&#x20AC;&#x153;Joeâ&#x20AC;? instead, and suddenly started receiving calls. This bias, called unconscious bias, is so subtle that most of us donâ&#x20AC;&#x2122;t notice it or catch ourselves. Here are some other common ways this can play out in HR: â&#x20AC;˘ Geography bias (local job candidates receiving preference over non-local job candidates); â&#x20AC;˘ Gender bias (women are given fewer opportunities than men if they have kids but then are disliked when they are not seen as nurturing); â&#x20AC;˘ Appraisal bias (when the manager compares an employeeâ&#x20AC;&#x2122;s performance to other employees instead of the company standard); and, â&#x20AC;˘ Association bias (favoring those who went to the same college, are members of the same organization, or association).

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tions to minimize bias and, therefore, create a Â&#x2026;Â&#x2026;Â&#x2018;Â&#x201D;Â&#x2020;Â&#x2039;Â?Â&#x2030; Â&#x2013;Â&#x2018; Â&#x2013;Â&#x160;Â&#x2021; Â?Â&#x192;Â?Â&#x192;Â&#x2030;Â&#x2021;Â?Â&#x2021;Â?Â&#x2013; Â&#x2026;Â&#x2018;Â?Â&#x2022;Â&#x2014;Â&#x17D;Â&#x2013;Â&#x2039;Â?Â&#x2030; Â&#x2C6;Â&#x2039;Â&#x201D;Â?ÇĄ Â&#x2026; Â&#x2039;Â?Â&#x2022;Â&#x2021;Â&#x203A;ĆŹ Â&#x2018;Â?Â&#x2019;Â&#x192;Â?Â&#x203A;ÇĄ Â&#x2026;Â&#x2018;Â?Â&#x2019;Â&#x192;Â?Â&#x2039;Â&#x2021;Â&#x2022; Â&#x2013;Â&#x160;Â&#x192;Â&#x2013; Â&#x2026;Â&#x2026;Â&#x2018;Â&#x201D;Â&#x2020;Â&#x2039;Â?Â&#x2030; Â&#x2013;Â&#x2018; Â&#x2013;Â&#x160;Â&#x2021; Â?Â&#x192;Â?Â&#x192;Â&#x2030;Â&#x2021;Â?Â&#x2021;Â?Â&#x2013; Â&#x2026;Â&#x2018;Â?Â&#x2022;Â&#x2014;Â&#x17D;Â&#x2013;Â&#x2039;Â?Â&#x2030; Â&#x2C6;Â&#x2039;Â&#x201D;Â?ÇĄ Â&#x2026; Â&#x2039;Â?Â&#x2022;Â&#x2021;Â&#x203A;ĆŹ Â&#x2018;Â?Â&#x2019;Â&#x192;Â?Â&#x203A;ÇĄ Â&#x2026;Â&#x2018;Â?Â&#x2019;Â&#x192;Â?Â&#x2039;Â&#x2021;Â&#x2022; Â&#x2013;Â&#x160;Â&#x192;Â&#x2013; more diverse workforce â&#x20AC;&#x201C;resulting in increased Â&#x2021;Â&#x161;Â&#x160;Â&#x2039;Â&#x201E;Â&#x2039;Â&#x2013; Â&#x2030;Â&#x2021;Â?Â&#x2020;Â&#x2021;Â&#x201D; Â&#x192;Â?Â&#x2020; Â&#x2021;Â&#x2013;Â&#x160;Â?Â&#x2039;Â&#x2026; Â&#x2020;Â&#x2039;Â&#x2DC;Â&#x2021;Â&#x201D;Â&#x2022;Â&#x2039;Â&#x2013;Â&#x203A; Â&#x192;Â&#x201D;Â&#x2021;ÇĄ Â&#x201D;Â&#x2021;Â&#x2022;Â&#x2019;Â&#x2021;Â&#x2026;Â&#x2013;Â&#x2039;Â&#x2DC;Â&#x2021;Â&#x17D;Â&#x203A;ÇĄ ÍłÍˇ Â&#x2019;Â&#x2021;Â&#x201D;Â&#x2026;Â&#x2021;Â?Â&#x2013; Â&#x192;Â?Â&#x2020; ÍľÍˇ Â&#x2019;Â&#x2021;Â&#x201D;Â&#x2026;Â&#x2021;Â?Â&#x2013; Â&#x2021;Â&#x161;Â&#x160;Â&#x2039;Â&#x201E;Â&#x2039;Â&#x2013; Â&#x2030;Â&#x2021;Â?Â&#x2020;Â&#x2021;Â&#x201D; Â&#x192;Â?Â&#x2020; Â&#x2021;Â&#x2013;Â&#x160;Â?Â&#x2039;Â&#x2026; Â&#x2020;Â&#x2039;Â&#x2DC;Â&#x2021;Â&#x201D;Â&#x2022;Â&#x2039;Â&#x2013;Â&#x203A; Â&#x192;Â&#x201D;Â&#x2021;ÇĄ Â&#x201D;Â&#x2021;Â&#x2022;Â&#x2019;Â&#x2021;Â&#x2026;Â&#x2013;Â&#x2039;Â&#x2DC;Â&#x2021;Â&#x17D;Â&#x203A;ÇĄ ÍłÍˇ Â&#x2019;Â&#x2021;Â&#x201D;Â&#x2026;Â&#x2021;Â?Â&#x2013; Â&#x192;Â?Â&#x2020; ÍľÍˇ Â&#x2019;Â&#x2021;Â&#x201D;Â&#x2026;Â&#x2021;Â?Â&#x2013; revenue. 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Â&#x2021;Â&#x2022;Â&#x2018;Â&#x2014;Â&#x201D;Â&#x2026;Â&#x2021;Â&#x2022;ÇĄ â&#x20AC;˘ Suggest hiring trends; Â&#x192;Â&#x201D;Â&#x2021; Â&#x2030;Â&#x2014;Â&#x2039;Â&#x17D;Â&#x2013;Â&#x203A; Â&#x2018;Â&#x2C6; Â&#x201E;Â&#x2039;Â&#x192;Â&#x2022;ÇĄ Â&#x2122;Â&#x160;Â&#x2039;Â&#x2026;Â&#x160; Â?Â&#x2021;Â&#x2030;Â&#x192;Â&#x2013;Â&#x2039;Â&#x2DC;Â&#x2021;Â&#x17D;Â&#x203A; Â&#x192;Â&#x2C6;Â&#x2C6;Â&#x2021;Â&#x2026;Â&#x2013;Â&#x2022; Â&#x2013;Â&#x160;Â&#x2021; Â&#x2026;Â&#x201D;Â&#x2021;Â&#x192;Â&#x2013;Â&#x2039;Â&#x2018;Â? 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Â&#x2021;Â&#x2018;Â&#x2030;Â&#x201D;Â&#x192;Â&#x2019;Â&#x160;Â&#x203A; Â&#x201E;Â&#x2039;Â&#x192;Â&#x2022; Č&#x2039;Â&#x17D;Â&#x2018;Â&#x2026;Â&#x192;Â&#x17D; Â&#x152;Â&#x2018;Â&#x201E; Â&#x2026;Â&#x192;Â?Â&#x2020;Â&#x2039;Â&#x2020;Â&#x192;Â&#x2013;Â&#x2021;Â&#x2022; Â&#x201D;Â&#x2021;Â&#x2026;Â&#x2021;Â&#x2039;Â&#x2DC;Â&#x2039;Â?Â&#x2030; Â&#x2019;Â&#x201D;Â&#x2021;Â&#x2C6;Â&#x2021;Â&#x201D;Â&#x2021;Â?Â&#x2026;Â&#x2021; Â&#x2018;Â&#x2DC;Â&#x2021;Â&#x201D; Â?Â&#x2018;Â?ÇŚÂ&#x17D;Â&#x2018;Â&#x2026;Â&#x192;Â&#x17D; Â&#x152;Â&#x2018;Â&#x201E; â&#x20AC;˘â&#x20AC;˘â&#x20AC;˘ Assess leaders and potential leaders (idenÂ&#x2026;Â&#x192;Â?Â&#x2020;Â&#x2039;Â&#x2020;Â&#x192;Â&#x2013;Â&#x2021;Â&#x2022;Č&#x152;Ç˘ Â&#x2026;Â&#x192;Â?Â&#x2020;Â&#x2039;Â&#x2020;Â&#x192;Â&#x2013;Â&#x2021;Â&#x2022;Č&#x152;Ç˘ tify employees for internal promotions); â&#x20AC;˘â&#x20AC;˘ Â&#x2021;Â?Â&#x2020;Â&#x2021;Â&#x201D; Â&#x201E;Â&#x2039;Â&#x192;Â&#x2022; Č&#x2039;Â&#x2122;Â&#x2018;Â?Â&#x2021;Â? Â&#x192;Â&#x201D;Â&#x2021; Â&#x2030;Â&#x2039;Â&#x2DC;Â&#x2021;Â? Â&#x2C6;Â&#x2021;Â&#x2122;Â&#x2021;Â&#x201D; Â&#x2018;Â&#x2019;Â&#x2019;Â&#x2018;Â&#x201D;Â&#x2013;Â&#x2014;Â?Â&#x2039;Â&#x2013;Â&#x2039;Â&#x2021;Â&#x2022; Â&#x2013;Â&#x160;Â&#x192;Â? Â?Â&#x2021;Â? Â&#x2039;Â&#x2C6; Â&#x2013;Â&#x160;Â&#x2021;Â&#x203A; Â&#x160;Â&#x192;Â&#x2DC;Â&#x2021;

Â&#x2021;Â?Â&#x2020;Â&#x2021;Â&#x201D; Â&#x201E;Â&#x2039;Â&#x192;Â&#x2022; Č&#x2039;Â&#x2122;Â&#x2018;Â?Â&#x2021;Â? Â&#x192;Â&#x201D;Â&#x2021; Â&#x2030;Â&#x2039;Â&#x2DC;Â&#x2021;Â? Â&#x2C6;Â&#x2021;Â&#x2122;Â&#x2021;Â&#x201D; Â&#x2018;Â&#x2019;Â&#x2019;Â&#x2018;Â&#x201D;Â&#x2013;Â&#x2014;Â?Â&#x2039;Â&#x2013;Â&#x2039;Â&#x2021;Â&#x2022; Â&#x2013;Â&#x160;Â&#x192;Â? Â?Â&#x2021;Â? Â&#x2039;Â&#x2C6; Â&#x2013;Â&#x160;Â&#x2021;Â&#x203A; Â&#x160;Â&#x192;Â&#x2DC;Â&#x2021; â&#x20AC;˘ Improve employee retention (suggest Â?Â&#x2039;Â&#x2020;Â&#x2022; Â&#x201E;Â&#x2014;Â&#x2013; Â&#x2013;Â&#x160;Â&#x2021;Â? Â&#x192;Â&#x201D;Â&#x2021; Â&#x2020;Â&#x2039;Â&#x2022;Â&#x17D;Â&#x2039;Â?Â&#x2021;Â&#x2020; Â&#x2122;Â&#x160;Â&#x2021;Â? Â&#x2013;Â&#x160;Â&#x2021;Â&#x203A; Â&#x192;Â&#x201D;Â&#x2021; Â?Â&#x2018;Â&#x2013; Â&#x2022;Â&#x2021;Â&#x2021;Â? Â&#x192;Â&#x2022; Â?Â&#x2014;Â&#x201D;Â&#x2013;Â&#x2014;Â&#x201D;Â&#x2039;Â?Â&#x2030;Č&#x152;Ç˘ Â?Â&#x2039;Â&#x2020;Â&#x2022; Â&#x201E;Â&#x2014;Â&#x2013; Â&#x2013;Â&#x160;Â&#x2021;Â? Â&#x192;Â&#x201D;Â&#x2021; Â&#x2020;Â&#x2039;Â&#x2022;Â&#x17D;Â&#x2039;Â?Â&#x2021;Â&#x2020; Â&#x2122;Â&#x160;Â&#x2021;Â? Â&#x2013;Â&#x160;Â&#x2021;Â&#x203A; Â&#x192;Â&#x201D;Â&#x2021; Â?Â&#x2018;Â&#x2013; Â&#x2022;Â&#x2021;Â&#x2021;Â? Â&#x192;Â&#x2022; Â?Â&#x2014;Â&#x201D;Â&#x2013;Â&#x2014;Â&#x201D;Â&#x2039;Â?Â&#x2030;Č&#x152;Ç˘ â&#x20AC;˘â&#x20AC;˘which ppraisal bias the employees are retainable); ppraisal bias (when (when the manager manager compares compares an an employeeâ&#x20AC;&#x2122;s employeeâ&#x20AC;&#x2122;s performance performance to to Â&#x2018;Â&#x2013;Â&#x160;Â&#x2021;Â&#x201D; Â&#x2021;Â?Â&#x2019;Â&#x17D;Â&#x2018;Â&#x203A;Â&#x2021;Â&#x2021;Â&#x2022; Â&#x2039;Â?Â&#x2022;Â&#x2013;Â&#x2021;Â&#x192;Â&#x2020; Â&#x2018;Â&#x2C6; Â&#x2013;Â&#x160;Â&#x2021; Â&#x2026;Â&#x2018;Â?Â&#x2019;Â&#x192;Â?Â&#x203A; Â&#x2022;Â&#x2013;Â&#x192;Â?Â&#x2020;Â&#x192;Â&#x201D;Â&#x2020;Č&#x152;Ç˘ Â&#x192;Â?Â&#x2020;ÇĄ Â&#x2018;Â&#x2013;Â&#x160;Â&#x2021;Â&#x201D; Â&#x2021;Â?Â&#x2019;Â&#x17D;Â&#x2018;Â&#x203A;Â&#x2021;Â&#x2021;Â&#x2022; Â&#x2039;Â?Â&#x2022;Â&#x2013;Â&#x2021;Â&#x192;Â&#x2020; Â&#x2018;Â&#x2C6; Â&#x2013;Â&#x160;Â&#x2021; Â&#x2026;Â&#x2018;Â?Â&#x2019;Â&#x192;Â?Â&#x203A; Â&#x2022;Â&#x2013;Â&#x192;Â?Â&#x2020;Â&#x192;Â&#x201D;Â&#x2020;Č&#x152;Ç˘ Â&#x192;Â?Â&#x2020;ÇĄ â&#x20AC;˘ Standardize employee assessments (cusâ&#x20AC;˘â&#x20AC;˘ Â&#x2022;Â&#x2022;Â&#x2018;Â&#x2026;Â&#x2039;Â&#x192;Â&#x2013;Â&#x2039;Â&#x2018;Â? Â&#x201E;Â&#x2039;Â&#x192;Â&#x2022; Č&#x2039;Â&#x2C6;Â&#x192;Â&#x2DC;Â&#x2018;Â&#x201D;Â&#x2039;Â?Â&#x2030; Â&#x2013;Â&#x160;Â&#x2018;Â&#x2022;Â&#x2021; Â&#x2122;Â&#x160;Â&#x2018; Â&#x2122;Â&#x2021;Â?Â&#x2013; Â&#x2013;Â&#x2018; Â&#x2013;Â&#x160;Â&#x2021; Â&#x2022;Â&#x192;Â?Â&#x2021; Â&#x2026;Â&#x2018;Â&#x17D;Â&#x17D;Â&#x2021;Â&#x2030;Â&#x2021;ÇĄ Â&#x192;Â&#x201D;Â&#x2021; Â?Â&#x2021;Â?Â&#x201E;Â&#x2021;Â&#x201D;Â&#x2022; Â&#x2022;Â&#x2022;Â&#x2018;Â&#x2026;Â&#x2039;Â&#x192;Â&#x2013;Â&#x2039;Â&#x2018;Â? Â&#x201E;Â&#x2039;Â&#x192;Â&#x2022; Č&#x2039;Â&#x2C6;Â&#x192;Â&#x2DC;Â&#x2018;Â&#x201D;Â&#x2039;Â?Â&#x2030; Â&#x2013;Â&#x160;Â&#x2018;Â&#x2022;Â&#x2021; Â&#x2122;Â&#x160;Â&#x2018; Â&#x2122;Â&#x2021;Â?Â&#x2013; Â&#x2013;Â&#x2018; Â&#x2013;Â&#x160;Â&#x2021; Â&#x2022;Â&#x192;Â?Â&#x2021; Â&#x2026;Â&#x2018;Â&#x17D;Â&#x17D;Â&#x2021;Â&#x2030;Â&#x2021;ÇĄ Â&#x192;Â&#x201D;Â&#x2021; Â?Â&#x2021;Â?Â&#x201E;Â&#x2021;Â&#x201D;Â&#x2022; tomize and automate appraisal templates); Â&#x2018;Â&#x2C6; Â&#x2013;Â&#x160;Â&#x2021; Â&#x2022;Â&#x192;Â?Â&#x2021; Â&#x2018;Â&#x201D;Â&#x2030;Â&#x192;Â?Â&#x2039;Â&#x153;Â&#x192;Â&#x2013;Â&#x2039;Â&#x2018;Â?ÇĄ Â&#x2018;Â&#x201D; Â&#x192;Â&#x2022;Â&#x2022;Â&#x2018;Â&#x2026;Â&#x2039;Â&#x192;Â&#x2013;Â&#x2039;Â&#x2018;Â?Č&#x152;Ç¤ Â&#x2018;Â&#x2C6; Â&#x2013;Â&#x160;Â&#x2021; Â&#x2022;Â&#x192;Â?Â&#x2021; Â&#x2018;Â&#x201D;Â&#x2030;Â&#x192;Â?Â&#x2039;Â&#x153;Â&#x192;Â&#x2013;Â&#x2039;Â&#x2018;Â?ÇĄ Â&#x2018;Â&#x201D; Â&#x192;Â&#x2022;Â&#x2022;Â&#x2018;Â&#x2026;Â&#x2039;Â&#x192;Â&#x2013;Â&#x2039;Â&#x2018;Â?Č&#x152;Ç¤ â&#x20AC;˘ Synthesize performance review data (sug gest specific actions per employee as area for improvement); and, â&#x20AC;˘ Synthesize exit interview data and provide Íł Íł insights on why employees leave. Â While AI can help reduce unconscious bias and lead to a more diverse workforce, itâ&#x20AC;&#x2122;s not a panacea. Simply put, AI demands all of us humans to distill the data it uses in its analysis. In its current form, AI is simply an extension of our existing culture, which is riddled with biases and stereotypes. This means, that as we program AI, and as AI learns from us through our words, data sets and programming, we run the risk of having machine learning perpetuate our cultureâ&#x20AC;&#x2122;s biases. For example,Â Googleâ&#x20AC;&#x2122;s translation softwareÂ converts gender-inclusive pronouns from several languages into male pronouns (he/him, his) when talking about www.ihrim.org â&#x20AC;˘ Workforce Solutions Review â&#x20AC;˘ October-December 2018

medical doctors, and female pronouns (she, her, hers) when talking about nurses. This built-in bias can show up in a number of ways in AI HR technology. For example, if only one employee is providing evaluation data that is used to set the standard for performance reviews, then there are not enough perspectives to establish balance and generate non-biased datasets. When a team of people is conducting interviews, they often do not use standardized questions. This can also skew the datasets because there is not enough consistency in the responses to generate unbiased data. When the datasets have a low volume of responses, they also are inherently more biased because there aren’t as many varied possibilities. Even a company like Walmart, which hires over 1,000 people per day, doesn’t generate a massive supply of data. One thousand people per day is child’s play for machine learning and the results, again, can perpetuate any biases that are unconsciously built into the company’s processes. So how do we prevent AI from perpetuating these biases? We offer five key strategies to consider that will help you keep unconscious biases in check. These strategies include: 1. Expose workplace bias. 2. Train AI to spot bias. 3. Offer AI transparency. 4. Acknowledge workplace culture. 5. Monitor and audit AI. When used properly, these strategies can actually help circumvent bias. After reviewing this section, you will realize that making these careful considerations now will give your organization a competitive advantage over other leaders in your industry.

1. Expose workplace bias.

As technology advances, AI will take on more sophisticated decisions, like identifying new markets where a company can be profitable, or finding the most qualified candidates for jobs by supporting HR to look beyond dominating groups or traditional referral networks. Before programming AI to take on these tasks, we must first design algorithms and leverage AI to expose our individual and organizational biases. By taking this action, AI will have the ability to spot bias with respect to organizational decision-making, and help redirect us to make more fair and accurate decisions that are in the

October-December 2018 • Workforce Solutions Review • www.ihrim.org

best interest of the organization’s performance, growth and profit. For example, say an organization has historically fallen short of recruiting and hiring qualified women for leadership positions. The senior executive team recognizes this historical trend, and they want to change it to get more women in their executive pipeline. When programmed correctly, AI can help the organization examine past job postings for gender biased language, which may have discouraged some applicants from pursuing these positions. Updating job postings using gender neutral language can increase the number of women applicants and, ultimately, have more women in the leadership pipeline. Once your talent pipeline has become more diverse, AI can help track the pattern of hiring decisions made by individual managers, and alert them – and HR leadership – if hidden biases against female candidates (or candidates from other underrepresented groups) arise.

2. Train AI to spot bias.

In order to train AI to spot bias, your team must first carefully program the algorithms. For the organization committed to recruiting more women for executive positions, programmers must consider how candidates for executive positions are recruited starting with the job announcements. By programming AI to spot gender-biased terms like outspoken and aggressively pursuing opportunities, terms proven to attract male job applicants, and other terms like caring and flexible, which do the opposite, AI can help alert recruiters to their unconscious biases when drafting job announcements. The initial process of training AI to spot bias currently will require a high level of human intervention. Fortunately, the more your organization invests on the front end to train AI to spot bias, the more sophisticated your HR team will become to avoid replicating unconscious biases for this aspect of your workload. Similarly, companies should look for specificity in how they program AI to search for new talent as there’s no one-size-fits-all definition of the best engineer. Rather, there is only the best engineer for one particular role or project at one particular time. When carefully programmed, AI is well suited to find the ideal candidate for that role or project.

3. Offer AI transparency.

In Cathy O’Neil’s 2016 best-selling book, Weapons of Math Destruction, she says that automotive companies wouldn’t design a car and send it out into the world without knowing whether it’s safe. Safety standards are at the center of a car design, and by the same token, algorithms have to be designed with fairness and legality in mind, with standards that are understood by everyone, from the business leader to the people being served. To try our best at riding algorithms of bias, some call for transparency in how they are constructed. Transparency, at its most basic level, is knowing whether or not a human or machine is making decisions online. Given the growing influence AI has in how it is shaping our world, it is critical that we know when a machine is making a decision, and to also know the rationale for how it made the decision. When algorithms affect human rights, public values or public decision-making, we need oversight and transparency. Unfortunately, it is difficult for outside users to understand how most algorithms are constructed. Therefore, some are strongly urging AI programmers to first consider the values and desired results of various AI technologies before designing them to ensure that they are in the best interest of the public. At this point, there is no silver bullet to holding AI accountable to the impact it has on the public. Fortunately, there is some good news with respect to concerns around transparency. A collaboration between Facebook, Google, Microsoft, IBM, and Amazon has established the Partnership on AI. The group was formed to increase the transparency of algorithms and automated processes, ultimately keeping AI in check.

4. Acknowledge Workplace Culture.

While we may have a vision for creating a future workplace culture, where we all can show up as our authentic selves, it’s also critical to acknowledge that for most workplaces, we aren’t there yet. It doesn’t take sophisticated predictive modeling to determine, for example, that women are disproportionately likely to jump off the corporate ladder at the halfway point because some may be struggling with balancing the demands of their jobs with the

demands of their family. An organization committed to smart talent management will ask what it is about the demands of senior level positions that make them incompatible with women’s lives, rather than assuming that women simply aren’t qualified for executive level positions. When the leadership team begins asking these questions about their workplace culture, they are then responsible for exploring what they can do to shift it, so that their organization doesn’t lose the talent and institutional knowledge of women, or incurs the high costs of replacing them. When leaders take this responsibility, they can supplement their efforts by applying a second layer of machine learning that looks at its own suggestions and makes further recommendations. For example, AI can be programmed in the following manner: “It looks like you’re trying to do X, so consider doing Y,” where X might be promoting more women to executive level positions, making the workforce more ethnically diverse, or improving retention statistics, and Y is redefining job responsibilities with greater flexibility, hosting recruiting events in communities of color, or redesigning benefits packages based on what similar companies offer.

About the Authors

Bernadette Smith is CEO of Equality Institute, a company whose mission is to help organizations win bigger by treating diverse workers and clients with dignity and respect. She’s spoken to thousands at conferences and her expertise has been sought after by The New York Times, The Washington Post and Fast Company, among many others and she’s appeared on the Today Show, the BBC, National Public Radio and CNN. Her clients include Hard Rock, MGM Resorts, Melia Hotels, Marriott Hotels, and Ritz-Carlton brands. She can be reached at bernadette@ theequalityinstitute.com.

Rhodes Perry, MPA, is an award winning social entrepreneur, passionate speaker, and a nationally recognized LGBTQ thought leader with two decades of government and nonprofit experience, having worked at the White House, PFLAG National, and the City of New York. Media outlets like The Wall Street Journal, The 5. Monitor and evaluate AI. Associated Press, and The When correctly programmed, AI excels at Huffington Post have featured alerting us to workplace bias; however, in isola- his work as a diversity, equity, tion, it cannot eliminate it. In order to reduce and inclusion expert. He beworkplace bias, it’s up to all of us to pay atten- lieves in the power of bringing tion to the existence of bias, leverage AI to spot authenticity into the workplace, and he helps business leaders, it, and work together to overcome it. change agents, and visionaries As we begin to entrust AI with more comat all levels cultivate workplace plex and consequential decisions, it’s critical cultures of belonging through that we continuously monitor, evaluate, and his leadership and management train AI over the long-term, just as we educate consulting firm. He also hosts a weekly podcast, The Out Entreour people, to stay up to speed on the latest preneur, which has empowered changes in our industries to remain relevant over 35,000 LGBTQ and ally and competitive. The most proactive organiza- entrepreneurs pursue their tions programming AI to do good will be best professional passions and build positioned to leverage AI to help their organithe businesses of their dreams. He earned a Bachelor of Arts in zation perform well. Economics and Gender Studies from the University of Notre For more information about the power Dame, and a Master of Public and pitfalls of AI, please consider watching Administration from New York a webinar we facilitated earlier this year for University. He can be reached at rhodes@rhodesperry.com. IHRIM members.

www.ihrim.org • Workforce Solutions Review • October-December 2018

feature

Katherine Jones, Ph.D. Katherine Jones, Ph.D.

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HR organizations have been “getting it all the HR applications themselves. Will this change together” for the last decade: consolidating and the nature of HR structure itself? Consider the HR organizations have been “getting it all together” for the last decade: consolidating and centralizing the function of HR in the organizafollowing: centralizingtion. theAfunction of HRininthis theeffort organization. A key facilitator in this effort has been key facilitator has been technology: centralized, usually usually cloud-based HR suites serve as a single integrating agent technology: centralized, cloud-based HR that1. Learning and Development for employee data HRasactivities. Centralized provide consistency in policies suites thatand serve a single integrating agentHR forapplications If existing software applications can provide employee and activities.redundancy Centralized HR and practices; they data serve toHR eliminate and streamline operations, as well as aid timely on-the-spot learning to employees, is applications provide consistency in policies analytics and synthesis of the data required for the employee that corporations require. (Recent there a role for the training department or the practices; they serve to eliminate redundancy center of expertise (COE)—that Mercer Select Intelligence research shows that at least 50%educational of HR organizations describe and streamline operations, as well as aid synthegroup ordinarily charted with learning across themselves as centralized, with 35% reporting that they are a hybrid: centralized but with some sis of the data required for the employeei analytthe organization? Are traditional traindecisions and policies solely locally managed. ) ics that corporations require. (Recent Mercer ers redundant in a world of bot-supported, Select Intelligence research shows that at least just-in-time employee education? Do existing Shared service centralization aside, otherthemselves changes are CEOs report that they are looking 50% of HR organizations describe as afoot: educational psychology theories and practices for organizational change; HR groups themselves report anticipated changes in theirtoday’s organizacentralized, with 35% reporting that they are a still apply when considering hybrid: centralized but with some decisions andeffort istional organizational structure ahead. In some cases, this “catch-up” – bringing HR in line with development? 1 policies solely locally managed. ) the rest of the organization and with the industry. In other cases, the desire for change is ledmeetby The training dilemma is three-fold: Shared service centralization aside, other ingthe the growing pressure from younger interest in increasing overall enterprise productivity (not just HR department’s productivity) changes are afoot: CEOs report that they are employees who look to their employers for and the desire to promote innovation. looking for organizational change; HR groups skill advancement; addressing the potential themselves report anticipated changes in their educational or skill gap between underskilled A commonplace model structure for HR service today is the three-pronged centralized HR, organizational ahead. delivery In some cases, job candidates and the jobs you need to fill, centers of this excellence, and HR business partners, 1996 work of David Ulrich. effort is “catch-up” – bringing HR in linebased on the and ensuring a well-prepared leadership sucMercer Select lead Karen Shellenbackcession reports that 54% HR departments with Intelligence the rest of theresearch organization and with the pipeline. The of archaic classroom-oriother cases, thethree desireorganizational for change is in a surveyindustry. last yearInemploy these elements, with most (68%) having ented model will likely not be sufficient, and 2 by interest in increasing enterprise redesignedled their HR structure fairlyoverall recently – within the past years. evengroups today’s the five content needsYet of these arehigh very productivity (not just the HR department’s prodifferent. Outsourcing is one answer; recent performing HR organizations are not complacent — they too are on the move. ductivity) and the desire to promote innovation. educational technologies such as Degreed are A commonplace model for HR service deliva critical look at theby content difRoutinization of repetitive functions, now commonplace inanother—but HR software, is augmented ery today is the three-pronged centralized HR, ferences required is imperative. artificial intelligence or machine within the HR applications themselves. Will this centers of excellence, andlearning HR business partners, change thebased nature of HR structure itself? Consider on the 1996 work of David Ulrich. Mercerthe following: 2. Recruiting and Hiring Select Intelligence research lead Karen ShellenShould technology evolve such that it can back reports that 54% of HR departments in a provide bias-free recommendations for hiring survey last year employ these three organizationand promotions, and perhaps better asceral elements, with most (68%) having redesigned taining “fit” with organizational goals than their HR structure fairly recently – within the a person can; will it supplant the need for past five years.2 Yet even today’s high performing extensive internal recruiting and sourcing HR organizations are not complacent — they too functions? If a computer application was able are on the move. to list job requirements, search the web, idenRoutinization of repetitive functions, now tify qualified applicants, perform background commonplace in HR software, is augmented by checks, and propose candidates to hiring artificial intelligence or machine learning within managers, would the function of recruiting

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disappear? (Think of the diminished role for traditional travel agents in the Expedia world.) Might hiring models similar to those of the European Union appear more frequently – in which job seekers are screened, tested, and vetted, and then put into a “ready-tohire” talent pool until such skills are needed by a hiring organization?

automation that precedes a move to true digitization, clearly affects the potential for lesser skilled employees to find positions. Jobs such as checkers at cash registers and others where people operate machines rather than letting the machines “think” for themselves may well disappear. (And the next generation is likely to ask “what is cash anyway?”)

3. Robotics at Work

5. Delivery Models

4. Changes in Hourly Jobs

6. Inner Space (The Office Plan Kind)

How will the robotic automation trend affect future staffing needs? (There is a wonderful robot barista in San Francisco’s Metreon building making gourmet coffees – each identically perfect). Will more positions that may have been considered entry-level be replaced by these highly intelligent machines? Onboarding new employees and reskilling existing workers into the robotic environment will likely be different than the onboarding and training efforts of the past. And then there is an uber-IT issue: Where will the new breed of highly skilled robot maintenance and repair people come from? Are they on your staff or outsourced? Will robot vendors support large staffs of professional service providers of robotics care and maintenance or will internal IT become Robotics Technology (RT)?

Self-checkout in retail is growing, increasing customer satisfaction by eliminating the traditionally long checkout lines. But does it work? Beyond the self-checkout machines facing shoppers as they finish, today’s scana-bag initiatives give a shopper a barcode scanner as they walk through the store — eliminating any tie-up at the end of the shopping experience. This is a common model for innovation. First, technology replaced the people managing retail check-out. The model itself didn’t change. Replacing the traditional slow checkout lines by replacing people with technology may save salaries but not improve customer satisfaction. With the realization that it is the line itself that is the problem, and today’s technology can scan the items in the cart during shopping, the model itself changes, eliminating the problematic lines. Problem solved. This trend, which we see in the move to

Your grandmother likely had milk delivered by a milkman – a trend that is returning via technology and the current view that if you need something, you need it immediately. E-commerce has surpassed analysts’ expectations as first a buying mechanism and now as a delivery mechanism. Fueled by Amazon’s efficient delivery, consumers seek delivery of bulk items such as diapers and toilet paper, not just shoes and books. This spurred a new local delivery industry – local drivers delivering packages. If your business relies on home or business delivery, consider the ideal mix of internal and contracted drivers you need and how to best train, manage, promote, and pay them. In the future, will this scenario be sustainable or replaced by drones and self-driving delivery vehicles?

How will tomorrow’s staffing models affect your organization’s floorplans and needs for space? If a business relies more on buying expertise when needed (just-intime) rather than employing a large staff (just-in-case), how will that change the role of HR in people-management, succession, and how will it affect the requirement for large amounts of dedicated office space, as gig workers can work anywhere? Companies are already questioning the efficacy of open space and hoteling plans which recently became popular in the face of seldom-used offices and infrequent employee time onsite. Better rationalizing corporate space usage can lead to big real estate savings for organizations—can HR lead this charter?

HR Service Delivery and Today’s HR Business Partner

In part, HR business partners serve as the HR missionaries, consulting with business unit www.ihrim.org • Workforce Solutions Review • October-December 2018

Endnotes

1 “How HR Needs to Change.” Karen Shellenback, Karen Piercy and Denise LaForte. Mercer Select Intelligence. Mercer. 2017. 2

management on HR-related issues, championing employees, and serving as agents of change. They are expected not only to have HR and compliance expertise, but to thoroughly understand the nature and revenue model of the unit to which they are assigned. HRBPs should not merely be assigned to a division and expected to learn on the job the nature of finance, supply chain nuances, or production operations. They need to come to the position understanding the function well AND know the practices of HR within their organization. Here is yet another challenge for HR in terms of training and organizational development: How is HR today ensuring that its decentralized business partners are continuing to learn the best business practices of their divisions in an age of rapid change? If it is HR’s responsibility to ensure that the business partners are both providing strategic value and employee support, what training is required – or given buy vs. build, are HRBPs

About the Author

best hired from external organizations? When ascertaining if your HR organization is structured for success, you will also want to evaluate the success and ROI of your HR business partners. Are they delivering the value you anticipated? Are the right people in the right places? Should they be rotated? Should they be brought into a central rather than distributed service model?

Organizational Structure Matters

How the HR function in your organization is structured is within your control. How, when, and where technology and people are deployed is a crucial element in efficient and effective delivery of employee services and overall personnel management. Use the time between now and the New Year to conduct a critical assessment of your organization and determine whether your current model is both successful today and structured to provide value in the future.

Dr. Katherine Jones, veteran high-tech market analyst, is an independent thought leader in all areas of human capital management and the technologies that support it. She has been an analyst at Aberdeen Group, Bersin by Deloitte and Mercer, following a career that includes marketing in high-tech companies such as NetSuite and academic administration in higher education. Her master’s and doctorate degrees are from Cornell University. She can be reached at katherine_ics@msn.com or @katherine_jones.

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