HR in 2020; a new employment landscape

P R E S E N T E D I N A S S O C I AT I O N W I T H T H E H R W O R L D WWW.THEHRWORLD.CO.UK

5. HR IN 2020

A NEW EMPLOYMENT LANDSCAPE A R E S O U R C E M A N A G E M E N T W H I T E PA P E R • W W W . R E S O U R C E - M A N A G E M E N T . C O . U K

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CONTENTS 02 About Resource Management & The HR World 03 Contents & Acknowledgements 05 Foreword - Helen Norris, Head of HR, Group Operations, Nationwide Building Society 07 Technology; the Effect and Application 10 Human Resource Management in 2020; the Role of IT by David Beard, Senior HRM Lecturer, UWE 12 The Effects of Diversity on Talent 14 Adapt to Survive; can leadership respond?

20 Generalisation Y; in defence of Millennials by Steve Devereux, Marketing Assistant, RSG 21 The transformational challenge; how HR must evolve to be ready for 2020 25 Conclusion – Mike Beesley, CEO, RSG

26 Glossary of terms 27 Guest Profiles 30 Contact Details

ACKNOWLEDGEMENTS Resource Management and The HR World are very grateful to those individuals who gave their time to take part in The HR World Debate and who contributed to the content of this white paper. We give special thanks to Helen Norris for leading the Debate.

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AS A COMMUNITY OF HR PROFESSIONALS, THE FIRST QUESTION THAT COMES TO MIND IS ‘HOW SHOULD WE RESPOND TO TECHNOLOGY?’

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FOREWORD

BY HELEN NORRIS, HEAD OF HR, GROUP OPERATIONS, NATIONWIDE BUILDING SOCIETY When The HR World asked me to lead the latest round table

multiple areas and to receive frequent constructive feedback.

discussion, I was delighted to have the opportunity to raise

However, with a held view that much of ‘Gen Y’ are CV building

the topic of ‘HR in 2020 – are we ready?’ Factors such as

and interested in citizenship and sustainability, how do we deal

the explosive growth in digital and social media technologies

with the fact that these demanding employees may not give

are opening up a whole new role for those in HR, including

loyalty in return?

the opportunity to take a lead in shaping organisations for the As a community of HR professionals, the first question that

future.

comes to mind is ‘how should we respond to technology?’

I grew up with a communal phone in the hall and the delight

Do we embrace the wealth of innovations available, reaping

of sitting at the bottom of the stairs, trying to have a private

the benefits of being an early adopter? Or do we observe a

conversation with my friends. For children today the world of

more selective approach, carefully choosing which changes to

mobile phones, Facebook, Twitter and other means of ‘on

make, yet potentially missing out on the next big thing? Many

the go’ communication is part of everyday life, so the thought

businesses will become increasingly reliant on better technology

of working 9-5 in an office seems very dreary. However, as

and self-service, with employees inputting data independently.

economic power shifts from the West to the emerging markets

Consequently, entry level HR jobs as they currently exist

of Latin America, Eastern Europe and Asia, it is not simply

will reduce significantly. To evolve, HR may need to embrace

technology and the attitudes of the emerging workforce that are

analytics and ‘big data’ to become a more strategic function.

changing. Rapid growth in these parts of the world is creating a

One thing is for certain; to successfully navigate this increasingly

new global middle class with impressive spending power. This

turbulent environment, strong decision makers (and inevitably

is leading to intense competition for new markets, each with its

good leaders) will be required.

own unique local flavour. People no longer want to be treated as a commodity; they want to be personally engaged by their

So the big question is, are we ready? Some businesses will

employer.

feel sufficiently equipped to face these new challenges but for others, drastic changes may be required to keep pace in

As the ‘Baby Boom Generation’, those born between

an increasingly demanding and competitive climate. However

1946 and 1964, hits ‘normal’ retirement age, experienced

ready we as HR professionals feel, we should take comfort in

talent will be at a premium. This in turn puts pressure on

the fact that we don’t have to face these issues alone. HR can

younger workers to quickly become mature, skilled leaders.

greatly benefit from cross-function collaboration with disciplines

Should we therefore be leveraging the ‘mature’ workforce

such as IT, Legal and Marketing.

in an effort to upskill incoming talent? Many believe that those born

Although some believe that the challenges facing HR have been

between 1975 and 1995, have a strong focus on the

exaggerated, there is no denying that HR needs to leave its

future, expecting opportunities to progress, to build skills in

comfort zone and respond in some capacity to be ready for 2020.

the emerging ‘Generation Y’ or ’Millennials’,

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IF PEOPLE CAN WORK AT ANY TIME AND IN ANY LOCATION, WHERE DOES WORK STOP AND PERSONAL TIME BEGIN? 06

TECHNOLOGY; THE EFFECT AND APPLICATION

At the dawn of the century, Ray Kurzweil (Chief Engineer, Google) predicted that 20,000 years of progress would happen in 1001; in reality, change has occurred even faster than that. Technology is transforming society and with it, the ways in which people operate and work every day. 53% of people believe technology will drive the most significant changes for HR and employment over the next decade2, impacting the way we plan, review, communicate, engage and recruit.

BIG DATA AND VITAL ANALYTICS Technology and data go hand in hand. IBM’s discovery that 90% of all current data was created in the last two years3 means it comes as no surprise that big data has become an industry hot topic. Big data can be defined as ‘datasets whose size is

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IN TERMS OF ATTRACTING TALENTED CANDIDATES, TECH-AIDED TARGETING STRATEGIES ARE HELPING TO FISH WHERE THE FISH ARE

beyond the ability of typical database software tools to capture, store, manage, and analyse’4. An accurate analysis of big data may lead to more confident decision making, greater operational efficiencies, cost reductions and reduced risk. Within HR, software can utilise data to track employee turnover, retention,

TALENT MANAGEMENT; HOW TECHNOLOGY CAN HELP

CV suitability and much more; the question is what can be done with it? The problem is that many organisations still have closed

In terms of attracting talented candidates, tech-aided targeting

views on collected data, failing to invest in how it can benefit

strategies are helping to fish where the fish are. Helen Norris

performance5. If big data is embraced, organisations can reap

(Nationwide) shared how an advanced targeting technique called

the benefits of proactivity, becoming anticipatory businesses

‘geo-fencing’ is being trialled by Nationwide, placing a virtual

that predict gaps and solve problems before they occur. The

fence around geographical areas and sending promotional

Debate guests agreed that HR is underutilising big data, a

text messages to individuals who match their criteria (e.g.

view in line with findings that only 18% of HR professionals see

cinema patrons). Nationwide also utilises Layar6, an augmented

themselves as effective anticipators .

reality print application, throughout their graduate brochure.

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This enables them to bring to life a career at Nationwide with video clips, whilst also channelling candidates to the graduate website.

1 The Law of Accelerating Returns - Ray Kurzweil, 2001 http://www.kurzweilai.net/the-law-of-accelerating-returns 2 The Future of work: A journey to 2022 – PwC, 2014 http://www.pwc.co.uk/human-resource-services/publications/the-future-of-work-a-journey-to-2022.jhtml 3 Big, Bad Data: How Talent Analytics Will Make It Work In HR – Forbes - Meghan M. Biro, 2014 http://www.forbes.com/sites/meghanbiro/2014/08/07/big-bad-data-how-talent-analytics-will-make-it-work-in-hr/ 4 Innovating Using Big Data: A Social Capital Perspective – Big Data Expo, 2014 http://www.bigdata-expo.org/EN/news-content.asp?id=9226&sortType=1&columnsid=244 5 Is HR Failing To Capitalize On Big Data? – Forbes - Karen Higginbottom, 2014 http://www.forbes.com/sites/karenhigginbottom/2014/10/09/is-hr-failing-to-capitalize-on-big-data/ 6 Layar website: features - https://www.layar.com/features/

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TECHNOLOGY’S ROLE IN THE EMPLOYMENT LIFECYCLE

ATTRACTION; THE HIRING PROCESS

EMPLOYEE ENGAGEMENT

MONITORING GOOD LEAVERS

One

When

become

Many businesses treat an employee

transformations is happening in the hiring

of

employees, technology can be

leaving like a bad break up, but

process. A job interview used to consist of a

beneficial in helping to solve the

does it always have to be that way?

paper-based application form and a face-to-

engagement problem. One Debate

Technology can help businesses

face interview; these days, video CVs and

guest gave a great example

communicate with and track those

virtual interviews allow candidates to progress

of how their company uses an

ex-employees regarded as ‘good

to

without

internal Twitter8 feed to engage

leavers’, enabling them to potentially

physically meeting anyone. Automated systems

their workforce. The platform has

call upon their services again in

are commonly in place to test, evaluate and

defied generational, geographical

the future. For example, LinkedIn10

either ‘auto-reject’ or progress candidates in

and

with

profiles can often reveal where they

the early application stages. The overall Debate

a diverse range of employees

are working and any additional

response to this process was negative, due

sharing content such as pictures,

skills they have gained. This means

to its impersonal nature. However, for large

charitable endeavours and work-

organisations

corporations with high volumes of applicants, it

based achievements company-

to current data on a talent pool of

was accepted that this may be the only option.

wide. The combination of humour,

ex-employees that could become

information and accomplishments

candidates in the future. Many

In addition to using video, mobile device

has engaged the majority of

large organisations also utilise a

optimisation,

the

risk

well established alumni network to

recruitment, proactive businesses are also

of offensive content is nullified

remain connected, with supporting

utilising gamification. Gamification ‘selectively

by near-real time moderation.

emails and events. These can also

uses the mechanics that bring out people’s

Gamification can also be used

lead to future opportunities, as

natural desires for competition, achievement,

at this stage for onboarding,

organisations are monitoring and

status, self-expression and closure’,7 replacing

learning and development. Forbes

communicating with a pool of ex-

presentations

more

contributor Kevin Kruse stated

employees at other businesses, so

interactive and enjoyable medium. Using this

that engaged employees ‘care

already have one foot in the door

can help businesses to evaluate a candidate’s

more, are more productive, give

for any future interactions. If an

behaviours, views and overall suitability. There

better service and even stay in

employee’s departure was handled

are some inspiring examples of gamification

their jobs longer’9.

poorly however, they are unlikely

the

the

latter

biggest

technology-driven

application

social

and

media

surveys

stages

and

with

apps

a

in

candidates

hierarchical

business,

divides,

whilst

the

may

have

in practice; the Marriott Hotel Group’s app

to remain in contact. This is in

enables users to perform virtual hotel service

fact where technology becomes a

tasks (to sieve out applicants who lack the

threat; dissatisfied leavers can use

required aptitude), and HCL Technologies send

social media and platforms such as

an interactive game to job-offered applicants

Glassdoor11 to publically criticise and

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thirty days before they start, to onboard, record

damage employer brand.

engagement and predict offer rejections.

7 Gamification: not fun and games, but a serious HR tool – Information Age - Ben Rossi, 2014 http://www.information-age.com/it-management/skills-training-and-leadership/123458498/gamification-not-fun-and-games-serious-hr-tool 8 Twitter website: about, 2015 https://about.twitter.com/ 9 Why Employee Engagement? – Forbes - Kevin Kruse, 2012 http://www.forbes.com/sites/kevinkruse/2012/09/04/why-employee-engagement/ 10 LinkedIn website: about, 2015 https://www.linkedin.com/about-us?trk=hb_ft_about 11 Glassdoor website: companies and reviews, 2015 http://www.glassdoor.co.uk/Reviews/index.htm

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access

REVOLUTIONISING THE WAY WE WORK Debate guest Martin Spencer (Gocompare.com) revealed that

and workloads is becoming an essential skill for both employer

it is very difficult for his company to take their website down for

and employee12. So if people can work at any time and in any

maintenance, even on Christmas Day or in the small hours of the

location, where does work stop and personal time begin?

morning, due to the risk of losing customers. This demonstrates perfectly the emergence of an ‘always on’ culture, both for

Guests of The HR World Debate discussed Bring Your Own

business and employees. As the workplace shifts to ‘the cloud’

Device (BYOD), always on, the virtual office and flexible/remote

and technology continues to break down geographical barriers,

working at length, but what was most interesting is the degree

remote and flexible working is becoming increasingly common.

to which their approaches and views varied. Whilst on annual

An employee no longer needs to be at work to be working and

leave, one guest chooses to check their emails for an hour per

instead, employees are using their personal devices to operate

day. Others regularly respond to emails, and some try to shut off

wherever and whenever they find most convenient.

completely. Adam Meadows (RSG) stated a preference to work face-to-face with people and meet those he’s collaborating

People are now able to collaborate in virtual teams, regardless

with, yet other guests seemed much more comfortable with the

of location and without physically meeting. These factors enable

concept of virtual working. The diversity of opinion in a room filled

employees to demand far more flexibility and autonomy in their

with senior industry professionals tells us that these technology-

working life, and the capability of managing projects

driven changes will be a differentiator for businesses, potentially having a significant impact on success.

12 The jobs evolution is already here – CIPD - Claire Churchard, 2014 http://www.cipd.co.uk/pm/peoplemanagement/b/weblog/archive/2014/12/11/the-jobs-evolution-is-already-here.aspx

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CASE STUDY:

HUMAN RESOURCE MANAGEMENT IN 2020

BY DAVID BEARD, SENIOR HUMAN RESOURCE MANAGEMENT LECTURER UNIVERSITY OF THE WEST OF ENGLAND As we emerge from recession and look towards 2020, the future of Human Resources Management (HRM) seems uncertain and is likely to be influenced by the pace of recovery. However, the future role of IT in HRM may be easier to predict. Recent studies highlight a growing trend towards cloud-based HRM (e-HRM), accessed via corporate intranets13. Many large organisations are investing in such services and the effects will be felt for many years to come, yet these investments are often made in the absence of a clear strategy. Research points to a lack of theoretical frameworks in the deployment of e-HRM14, suggesting poor strategic alignment. The adoption of e-HRM is frequently HR-driven and motivated by ‘dissatisfaction avoidance’15; that is, the desire to avoid frustration and complaints from employees with HR service delivery, rather than business strategy.

The key emerging e-HRM adoption trends which may influence future HRM include:

We would like to give special thanks to David Beard, Senior Human Resource Management Lecturer at the University of the West of England, for providing this case study.

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1

‘BEST PRACTICE’ INSTEAD OF ‘BEST FIT’ HRM Customised and expensive early generation HR systems are being replaced with standard cloud-based services, accessed under license from giant software suppliers such as Oracle16. For many organisations, the advantages of cloud-based systems are clear; state-of-the art service delivery at a reasonable cost, maintained by third party experts. An unexplored consequence of this is the forced adoption of systems-driven ‘best practice’ HRM, rather than a ‘best fit’ approach as advocated in HRM theory13. New e-HRM is standard and often requires organisations to re-engineer HR processes around them. For example, a UK-based global telecommunications company recently deployed an Oracle Fusion e-HRM system across its world-wide operations, replacing various heavily customised versions of an earlier e-PeopleSoft system. Extensive process changes were required and the functionality of the new e-HRM became lower than its predecessor, raising questions about its alignment with other systems and its acceptability to users.

2

SMALLER, MORE SPECIALISED HRM DEPARTMENTS New e-HRM provides self-service for users, reducing, or even eliminating, the need for HR staff in basic service delivery. Its introduction has accelerated a trend towards smaller HR departments, offering specialist business partnering services contributing to business strategy. The ability of e-HRM to generate a wealth of real-time data supports these new strategic activities. More and more of HR’s time is being spent in a service broker or contract manager role17, mediating between internal customers and external suppliers.

Evidence in the marketplace

suggests that a well-planned e-HRM investment can fully recover costs within 18-24 months.

3

REVERSAL OF OUTSOURCING Simplified self-service e-HRM with dynamic approvals routing is reducing demand for large HR service centres.

Earlier outsourcing models, using third party suppliers in low-cost locations for high-volume delivery, are rapidly becoming obsolete. New cloud-based e-HRM offers automated services which were previously delivered by HR services centres, providing real-time data for smaller services centres to manage remaining HR transactions.

Recently, a UK-based global telecommunications and broadcast company invested in cloud-based systems to reduce HR delivery volumes by its service centres. This allowed their return to the UK from locations in Eastern Europe and India. Interestingly, the company is now considering using its cloud-based capabilities for revenue generation, by selling managed HR services to other organisations.

As these brief case studies illustrate, IT is likely to have a profound influence on HRM in 2020. It will enable smaller, specialist HR functions to offer strategic services and demonstrate a return on investment. It may also allow successful HR departments to sell managed services for profit.

13 For example, Stavrou, E. T., Brewster, C., & Charalambous, C. Human resource management and firm performance in Europe through the lens of business systems: best fit, best practice or both? The International Journal of Human Resource Management, 2010, 21(7), 933-962.

14 Schalk, R., Timmerman, V. and Heuvel, van den, S. “How strategic considerations influence decision making on e-HRM applications”, Human Resource Management Review; Volume 23, Issue 1, 2013, 84-92 15 Stavrou and Brewster 16 Oracle website: about http://www.oracle.com/uk/corporate/index.html 17 Karakanian, M. (2000). Are human resources departments ready for e-HR? Information Systems Management, 17(4), 35-39.

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THE EFFECT OF

DIVERSITY ON TALENT THE GLOBAL VILLAGE Whilst technology will evidently impact how we work in 2020, the workforce itself is also growing increasingly diverse. Diversity extends beyond gender, race and religion, encompassing sexual orientation, culture, age, disability and all ways in which people differ. A global study of over 10,000 people found that 33% believe demographic shifts, and increased workplace diversity, will have the biggest impact on HR in the next 10 years18.

Technology’s creation of a ‘global village’19 means that modern working can involve collaboration across time zones and continents, with people of different cultures working together in global teams. Debate leader Helen Norris (Nationwide) shared that one of her UK-based peers gives tasks to an assistant in Australia, which are then completed by the time she starts work the next day, perfectly demonstrating cross time zone collaboration.

Increased diversity due to globalisation is also likely to have a huge impact on employee mobility, providing opportunities to move to different offices around the world. Modern businesses are a collage of gender, ethnicity, age, nationality, culture and more, but why is this important? The Debate guests supported the view that the significance of this for HR regards workplace behaviours, how to drive employee engagement and the practices and tools employees require to interact20.

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TECHNOLOGY’S CREATION OF A ‘GLOBAL VILLAGE’19 MEANS THAT MODERN WORKING CAN INVOLVE COLLABORATION ACROSS TIME ZONES

18 The Future of work: A journey to 2022 – PwC, 2014 http://www.pwc.co.uk/human-resource-services/publications/the-future-of-work-a-journey-to-2022.jhtml 19 The Gutenberg Galaxy: the Making of Typographic Man – Marshall McLuhan, 1962 20 Working with 5 generations in the workplace – Forbes – Rawn Shah, 2014 http://www.forbes.com/sites/rawnshah/2011/04/20/working-with-five-generations-in-the-workplace/

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WHEN GENERATIONS COLLIDE

With this demographic set to form the workforce of the future, businesses must aim to understand and satisfy their demands, in addition to managing and integrating a mixture of

An increasing life expectancy and an ageing population means

generations. In fact, how effectively 2020 leadership responds

that people are working beyond ‘normal’ retirement age, leading

will likely be another key indicator of future talent management

to an overall ageing of the UK labour market21. However, there

and inevitably, business performance.

is also an influx of smart young talent, pushing the boundaries of working culture. Jeanne Meister (co-author of ‘The 2020 Workplace’) observed that ‘in four years, Millennials will account for nearly half the employees in the world’20. There are many preconceptions about Gen Y, who are a heavily stereotyped demographic. Common assumptions include an absence of employee loyalty, a tendency to ‘job hop’, a sense of entitlement regarding earnings, progression and training, a high degree of technological competency and confidence, and an expectation of employer loyalty and attention. Neil Ellett (Xerox) shared his view that many Millennials expect employer loyalty but don’t

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COULD TRADITIONAL EMPLOYMENT BE REPLACED ENTIRELY BY SELF-BRANDED INDIVIDUALS SELLING THEIR SKILLS?

A POTENTIAL SHIFT IN THE EMPLOYMENT LANDSCAPE

necessarily feel obliged to return the favour, whilst Martin Spencer (Gocompare.com) added that they now expect fringe

In addition to the changes in how we work and who we work

benefits and perks as standard (because other companies are

with, many also believe that we could see a significant shift in

offering the same). Whilst there is some truth in this impression,

how we are employed. 83% of executives employ temporary

many agree that there exists a ‘Millennial misunderstanding’.

workers and 46% believe that over a fifth of their workforce will soon be contingent23. This trend looks set to continue, ensuring

In comparison with other generations, research has confirmed

that the 2020 workforce will be increasingly flexible. It has even

that to some extent, Millennials do expect to be paid more

been suggested that traditional employment could disappear,

and promoted faster, are more likely to leave their jobs and do

replaced entirely by self-branded individuals selling their skills.

demand more career development opportunities22. However,

Whilst this may not come to fruition, there has certainly been

any business hoping to effectively manage Gen Y needs to read

a significant rise in contracting, with an increasing number

between the lines. The Debate guests expressed their belief

viewing themselves as members of a discipline, as opposed

that the differences between Millennials and other generations

to part of a company24. From an organisational perspective this

are exaggerated, with the media playing a large part. Mike

increase in flexibility appears positive, but it comes at a cost.

Beesley (RSG) championed this view, stating that in most cases

Many non-permanent workers are not sufficiently integrated into

the core motivations of the Gen Y workforce are the same as

a business, often experiencing mistreatment, exclusion and the

the workforce of 30 years ago , and that the ‘career for life’

inappropriate delegation of unfavourable tasks, reducing their

decline is not a recent phenomenon. Employers must consider

productivity.

for a moment the environment in which modern employees and jobseekers exist, where information is readily available on

Another issue is the ‘principle-agent problem’ (agency theory),

company salaries, employee satisfaction and benefits. Many

which is the challenge of motivating one party (the agent) to

guests agreed that Gen Y’s desire for comparative information

act in the best interests of another (the principal)25. Temporary

is turning job interviews into a two-way process, whereby the

workers may prioritise work for other clients or rush jobs so that

candidate is simultaneously assessing the interviewer, job

they can take on new business, due to less attachment to a

role and business. In addition, Caroline Beer (The HR World)

company than a permanent employee. So, should businesses

reminded guests that Millennials are also regularly targeted

invest time and money into integrating and training these

with employment opportunities through advertising, recruitment

temporary workers?

specialists and platforms such as LinkedIn. People are, to some extent, a product of their environment, so is it really that

The impact on work driven by factors such as employment type,

surprising that the wealth of information and opportunities

culture, gender and religion could form a white paper in itself,

in modern society is producing informed and demanding

but conversation at this Debate centred on demographics and

individuals?

in particular, workplace generations.

21 Employers face new challenges from ageing workforce – The Telegraph, 2014 http://www.telegraph.co.uk/finance/jobs/10634819/Employers-face-new-challenges-from-ageing-workforce.html 22 What’s true about Millennials and what’s not: the why of Gen Y – CEB, 2014 http://www.executiveboard.com/exbd/human-resources/millennial-talent/index.page?cid=701800000019Tyy 23 The 2020 workforce: building a strategic workforce for the future – Success Factors and Oxford Economics (Webinar), 2014 http://www.successfactors.com/en_us/lp/oxford-economics-workforce-hub-pr.html#.VP1nAsmeYcs 24 The Future of work: A journey to 2022 – PwC - http://www.pwc.co.uk/human-resource-services/publications/the-future-of-work-a-journey-to-2022.jhtml 25 Lexicon – Financial Times, 2015 http://lexicon.ft.com/term?term=principal/agent-problem

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ADAPT TO SURVIVE CAN LEADERSHIP RESPOND? Many senior figures believe that the required shift in management practices, to accommodate the rapidly changing workplace, will have the single biggest impact on the way we work in the next ten years . It is therefore concerning that in an international 26

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THE TASK OF DECIDING WHICH TECHNOLOGIES TO ADOPT AND WHICH TO REJECT IS BECOMING INCREASINGLY DIFFICULT

employee study, only 34% believe that management is prepared to lead a diverse workforce, and just 47% think they can effectively lead global teams27. With a lot of inexperienced

LEADERSHIP’S RESPONSE TO TECHNOLOGY

talent entering the workforce through entry level positions and graduate schemes, is there a danger of the ‘blind leading the

Gen Y workers are not just familiar with new technology, but

blind?’ Guests of The HR World Debate discussed the ways in

expect to see it integrated into their working environment28.

which leadership must respond to key areas of change, with

With technology experiencing constant innovation, the task

technology at the heart of the discussion once again.

of deciding which technologies to adopt and which to reject becomes increasingly difficult. It was suggested at the Debate

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IT IS CONCERNING THAT ONLY 34% OF EMPLOYEES BELIEVE THAT MANAGEMENT IS PREPARED TO LEAD A DIVERSE WORKFORCE

that a ‘sheep mentality’ has emerged, with people fearing that they are missing out by not adopting popular innovations in their industry. One guest shared a cautionary tale; their business purchased presentation software Prezi29 because it was a ‘hot product’, only to discover that it lacked the level of flexibility they required. The agreed upon solution was that leaders need to ask themselves which innovations are relevant and appropriate, only adopting new technology if it is likely to solve a business need, improve a function or create a new opportunity.

26 The Future of work: A journey to 2022 – PwC, 2014 http://www.pwc.co.uk/human-resource-services/publications/the-future-of-work-a-journey-to-2022.jhtml 27 The 2020 workforce – building a strategic workforce for the future – Success Factors and Oxford Economics (Webinar), 2014 http://www.successfactors.com/en_us/lp/oxford-economics-workforce-hub-pr.html#.VP1nAsmeYcs 28 Working with 5 generations in the workplace – Forbes - Rawn Shah, 2011http://www.forbes.com/sites/rawnshah/2011/04/20/working-with-five-generations-in-the-workplace/ 29 Prezi website, 2015 http://prezi.com/business-8/?gclid=CNiG4O3kncQCFcXItAodL14A5w

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FISH WHERE THE FISH ARE

SOCIAL MEDIA; THE RISKS AND THE REWARDS

One of the key influences technology exerts on business is

Leaders need to understand how technology can blur the

through social media. The vast majority of organisations,

boundaries between work and personal life, specifically through

stakeholders and customers use a variety of social media

social media, BYOD and now, Wear Your Own Device (WYOD)30.

platforms, creating numerous risks and opportunities that

The mobilisation of technology means that employees can

require a leadership response. The Debate guests agreed that

access their social media profiles and work emails from various

many businesses do not sufficiently align their social media

devices in most locations. This both creates and solves problems;

with corporate strategies, wasting valuable opportunities for

unrestricted access can lead to procrastination at work, but it

brand development and business generation. Adam Meadows

can also improve productivity for those who use social media

(RSG) asked, “who’s friends with or following Xerox or First

as part of their job (such as Marketing and Comms). Leaders

Great Western and why? Some follow to keep updated and

need to decide the extent to which they empower employees

some follow to complain. You must consider your followers

with trust and responsibility or alternatively, control access with

and produce content accordingly; one size doesn’t fit all”.

server filters and restrictive policies.

Organisations need to understand their target audience, ensuring that their social media output contributes to business

Social media can become a serious problem when employees

efforts by tailoring content across platforms. Again, leaders need

use work or personal accounts inappropriately. Leaders

to be effective decision makers; if certain social media platforms

therefore need to ensure that there exists an education in

aren’t appropriate for their business, they shouldn’t be afraid

correct social media conduct, including the consequences

of avoiding them. What they should avoid is worshipping false

of posting inappropriate content for public consumption. In a

idols, valuing the number of followers, friends or views as more

2011 case entitled ‘Crisp vs. Apple Retail’31, an employee made

important than relevant connections and interactions. For those

disparaging comments on Facebook about his employer and

leaders struggling to grasp the power of social media due to its

the company’s products. The employment tribunal concluded

un-quantifiable ROI, Neil Ellett (Xerox) provided a great example:

that the comments were damaging the employer’s reputation. In

“when the Ministry of Defence (MOD) entered Libya, they felt

this case, the employee had received specific training on how to

they didn’t need social media or PR. In the end, Al Jazeera’s PR

properly use social media in the context of his employment and

and social media teams were destroying them publically, so the

therefore, the employee’s dismissal was deemed fair.

MOD brought in a significant PR and Comms team to protect and develop their brand in response”.

30 ‘Wear your own device,’ WYOD, is coming to a workplace near you – ZDNet – Joe McKendrick, 2013

http://www.zdnet.com/article/wear-your-own-device-wyod-is-coming-to-a-workplace-near-you/

31 Facebook remarks that justify dismissal – CIPD - Jennie Atefi, 2014 http://www.cipd.co.uk/pm/peoplemanagement/b/weblog/archive/2014/10/24/facebook-remarks-that-justify-dismissal.aspx

15

“

PERSONAL DEVICES CAN RAISE SECURITY ISSUES CONCERNING COMPANY DATA AND ARE OFTEN IMMUNE TO RESTRICTIVE FILTERS

ALWAYS ON! Matters are complicated further as the prevalence of BYOD increases. Personal devices can raise security and confidentiality issues (concerning company data and files), are often immune to restrictive filters and increase the likelihood of receiving work-related communications when out of the office. The latter contributes to the ‘always on’ phenomenon, with the methods of tackling this one of the more divisive topics of the evening. Suggested out of office approaches included only answering phone calls, checking emails just once a day and shutting off devices completely. Neil Ellett (Xerox) shared his philosophy of empowerment, which is achieved by shutting off from work when away and challenging his team to manage his inbox, duties and responsibilities. The Debate guests suggested that empowerment could also be referred back to social media; whilst some restriction may be necessary, leaders need to learn to focus on measuring output and not input. What seemed evident is that the appropriate leadership response is subjective, and as long as a healthy work-life balance is maintained, leaders should decide on an approach that suits themselves and their team best.

“

MODERN MANAGERS FACE THE CHALLENGE OF LEADING AN INCREASINGLY REMOTE AND FLEXIBLE WORKFORCE

AGILE WORKING As the 9-5 Monday-Friday working week becomes less and less uniform, modern managers face the challenge of leading an increasingly remote and flexible workforce.

Technology allows employees to access work networks from devices in most locations, meaning they no longer have to be in work to be at work. Modern leaders must decide the extent to which they embrace this new flexibility, or enforce a more traditional model.

Some guests felt that a physical hub or office space was still important, and that people work together more effectively in person. Mike Beesley (RSG) shared his strong belief that employees still want a workplace and seek the community environment; this was supported by Sam Blackie (Royal London Group), who commented that people are tribal at heart and want to belong. However, the multi-national nature of modern business means that individuals may have to work in virtual teams, where face-to-face interactions are rare or non-existent.

“

VIDEO CONFERENCES ENABLE THE IMMEDIATE FEEDBACK OF FACE-TO-FACE INTERACTIONS, PROVIDING THE BEST OF BOTH WORLDS

VIRTUAL COLLABORATION So is virtual collaboration inferior to working in the same room? Many issues were raised including time zone disparity, contrasting convenience and communication problems in group tele-conferences. John Power (Legal & General) had a positive view on virtual working, championing video conferences in particular; he stated that they enable the immediate feedback of face-to-face interactions, providing the best of both worlds.

Whichever method of remote communication is utilised, Helen Norris (Nationwide) believes that leaders need to ensure an etiquette is adhered to, with participants communicating regularly, engaged in interactions and allowing everyone to contribute. The Debate response was supportive of remote teams meeting face-to-face on occasion, to better understand each other’s personalities and characteristics. This in turn helps shape the tone and nature of virtual collaboration and communication in the future.

16

OUTPUT OVER INPUT According to Mandy Moore (Hay Group), one of the key leadership challenges will be “learning how to manage remote staff, potentially from a range of different cultures and geographies, based on output rather than input”32. The flexible working trend is gathering pace, especially given the recent legislation that ‘encourages working that suits an employee’s needs, e.g. having flexible start and finish times, or working from home’33. For traditionalists in particular, embracing the fluctuating timetable of the working week may be problematic.

Combine this with the fact that many businesses are outsourcing activities or employing contractors, and the required shift in approach to manage work taking place in multiple locations, at varying times and by various people becomes clear. The Debate response supported the theory that leaders need to become more output focused. Organisational structures will continue to flatten, with a decentralisation of command necessitated by the need for flexible workers to manage their own schedule and input.

It will take time for managers to accept that a member of their team may choose to do their weekly shop on a Wednesday afternoon.

However, if an employee is able to deliver great results whilst working flexibly or remotely, does it really matter how? Working flexibly enables individuals to strike a healthier work-life balance, and if leaders are happy with the results, then this should be a win-win scenario.

Whilst Helen Norris (Nationwide) shared that she doesn’t believe remote management is natural to most managers, Chris Buckingham (Resource Management) believes it is a necessary skill, as more and more employees demand choice and flexibility. This view was echoed

by Neil Ellett (Xerox), who stated that “customers have a preference as to how they contact you, just as employees have a preference as to how they work”. A further issue raised at the Debate was that whilst a flexible or remote worker’s output may be sufficient, it could be significantly below their potential, which is harder to assess without supervision. When a manager can oversee the means to which employees achieve an end, they can advise and correct poor practice; empowering employees with independence requires a lot of trust.

An effective leadership response could be the communication of specific output-based targets and goals, with leaders available in a consultancy role where required.

32 Three ways HR can understand the workplace of the future – Personnel Today - Cath Everett, 2015 http://www.personneltoday.com/hr/three-ways-hr-can-understand-the-workplace-of-the-future/ 33 Flexible working overview – Gov.uk, 2015 https://www.gov.uk/flexible-working/overview

17

DIVERSITY AND DEMOGRAPHICS With an increasingly diverse workforce to manage, leaders must

engagement strategy, prioritising empowerment and career

understand unique circumstances and how they need to be

progression. As a result, the number of Asda call centre staff

incorporated into work34. Senior management behaviour needs

leaving for other jobs fell to an impressive 1.3% in 201438. So is

to set the tone, aligning with organisational values and ensuring

it really fair to treat people as disposable commodities and then

that employee integration is a priority. Beginning with effective

blame their departure on a generational lack of loyalty?

onboarding, specific systems (universal to the organisation) need to be in place for all divisions of the workforce to remain cohesive and productive35. The Debate focused heavily on the diversity of generations in the workforce, specifically the collision of demographics and managing Millennials. Many Gen Y stereotypes were highlighted and Helen Norris (Nationwide) shared her view that mature employees need to mentor Gen Y, in exchange for assistance with new technologies and processes

“

DOES HIGH EMPLOYEE TURNOVER ACTUALLY PRESENT AN OPPORTUNITY, WITH TALENTED PEOPLE REGULARLY BECOMING AVAILABLE?

in a dual learning process. However, an important point raised early on in the discussion was that employees may not exhibit

Interestingly, it was also suggested that an increasingly high

the perceived behaviours of their generation group. Sam Blackie

employee turnover can actually present an opportunity, with

(Royal London Group) added that whilst there are generational

talented people regularly becoming available. However, Martin

trends, leaders should segment based on need, not age.

Spencer (Gocompare.com) countered that for roles requiring rare skill sets, this still presents an issue. The guests also agreed

One of the most discussed stereotypes of Millennials centres

that a negative stigma can be attached to ‘ex-employees’, when

around disloyalty and the job hopping trend. Research suggests

in reality their reasons for leaving could be a lack of progression

that the average worker stays at their job for 4.4 years; however

opportunities, life circumstances, low engagement or poor

the figure for Gen Y is said to be just half that36. Claiming that

management. Chris Buckingham (Resource Management)

this is simply due to Gen Y’s supposed disloyal and demanding

believes that if the door is kept open for ‘good leavers’ and they

nature carries little weight; it is less about different generations

remain engaged with the business they are leaving, businesses

and more about the fact that the world of work today is very

can re-hire upskilled talent in the future, whilst also gaining

different. In this environment, more and more young people

valuable competitor intelligence. The Debate guests concluded

find themselves in low quality jobs lacking reward and content,

that leaders need to establish their own management philosophy

where there is a casual attitude towards staff turnover. Call

regarding staff and the social contract, which will likely differ

centres are a great example, with the industry staff turnover

on career management responsibility, employee loyalty, good

figure expected to be around 26%37. Asda decided to take action

leavers and the acceptable length of employment.

regarding their own call centre; they revamped their employee

34 Diversity at Work: Elements of a diverse workforce – Hrcouncil, 2014 http://hrcouncil.ca/hr-toolkit/diversity-workforce.cfm 35 Managing a Geographically diverse workforce – HR magazine - Nicholas Roi, 2013 http://www.hrmagazine.co.uk/hro/features/1077582/managing-geographically-diverse-workforce 36 Job Hopping Is the ‘New Normal’ for Millennials – Forbes – Jeanne Meister, 2012 http://www.forbes.com/sites/jeannemeister/2012/08/14/job-hopping-is-the-new-normal-for-millennials-three-ways-to-prevent-a-human-resource-nightmare/ 37 Attrition rates for contact centres leap – HR Zone – Neil Davey, 2015 http://www.hrzone.com/lead/change/attrition-rates-for-contact-centre-staff-leap

18

MANAGING MILLENNIALS Whilst the figures suggest that some acceptance of increasing

frequently comparing their work with their peers40. Leaders can

employee ‘churn’ will be required, leaders do not need to stand

create comparison opportunities, for instance games, leader

idly by. An analysis of the reasons behind this increasing trend

boards and competitions where individual output is visible, whilst

among Gen Y reveals opportunities, especially regarding career

providing feedback on performance and areas of improvement.

development and job content. It is a common misconception that

Other examples of businesses accommodating Gen Y include

Millennials want to job hop; in reality they want to ‘experience

encouraging loyalty through employee recognition schemes and

hop’, with most stating that other internal opportunities are just

job changes every few years, offering global opportunities and

as desirable39. John Power (Legal & General) commented that

using digital specialists to modernise technology and culture.

those on graduate schemes, accountants and military personnel experience varied roles and locations, and that more leaders

It is clear that there are numerous opportunities for leadership

should endeavour to provide a similar offering to non-graduates

response, attempting to meet future trends and developments

and entry level employees. This not only holds an employee’s

head on; however the Debate guests concluded that what we

interest, but simultaneously creates a pool of talent with cross-

really need are more effective leaders. These leaders need to

functional experience, although a specialism vs. transferrable

be identified based upon their management competencies and

skills debate is raised as a result. Whilst in practice there can be

character, as opposed to length of tenure.

a reluctance to move staff across functions, research has shown that companies can retain staff by offering diverse experiences as opposed to fast promotion39. The guests supported this philosophy of shifting career development back to the employer, adding that offering a long-term progressive and varied pathway will help retain more of Gen Y. So what else can leaders try? 50% of Millennials expect regular managerial feedback and 58% view themselves as competitive,

“

IT IS A COMMON MISCONCEPTION THAT MILLENNIALS WANT TO JOB HOP; IN REALITY THEY WANT TO ‘EXPERIENCE HOP’

39 What’s true about Millennials and what’s not: the why of Gen Y – CEB (Corp Exec Board company), 2014 http://www.executiveboard.com/exbd/human-resources/millennial-talent/index.page?cid=701800000019Tyy 40 The 2020 workforce –building a strategic workforce for the future – Success Factors and Oxford Economics (Webinar), 2014 http://www.successfactors.com/en_us/lp/oxford-economics-workforce-hub-pr.html#.VP1nAsmeYcs

19

GENERALISATION Y; IN DEFENCE OF MILLENNIALS

BY STEVE DEVEREUX MARKETING ASSISTANT RESOURCE SOLUTIONS GROUP (RSG) Entering the workplace in my early 20’s and straight out of university, it is strange to think that I am part of the Gen Y demographic so heavily featured in the media. I believe that stereotypes such as being demanding, disloyal and impatient are offensive; in my eyes, much of this generation’s behaviour is in fact motivated by ambition. Technology has opened up a whole world of opportunity when it comes to communication and information, meaning that we are aware of, and constantly compare, what others are doing. If you know what is out there and what others are experiencing, this can often lead to higher expectations.

As well as being ambitious, I think that much of Gen Y are confident in their ability to gain employment, with job boards, recruitment agencies and LinkedIn constantly presenting opportunities. The modern employee is therefore more likely to consider leaving a company if the social contract has not been maintained, or if there are insufficient opportunities to progress. A friend of mine is employed by a company that offers job and location rotation, training, a payment schedule and a planned progression timeline. As a result, he intends to make a long-term commitment to that business. So you could argue that it is often the quality of jobs on offer, as opposed to the people taking them, that are the problem.

A 2014 Oxford Economics global study of 5,500 employees found that the motivations and views of Gen Y are in fact extremely similar to those of Gen X (those born around the 60s and 70s) et al. Some of their core motivations were competitive compensation (Gen Y 68% vs. other 64%), bonuses/merit awards (Gen Y 55% vs. other 56%) and annual leave (43% each)41, with the generational variance marginal. These findings support the view that Millennials are not so alien, just a product of (and willing to exploit) an environment that they perceive to be filled with opportunity.

41 The 2020 workforce –building a strategic workforce for the future – Success Factors and Oxford Economics (Webinar), 2014 http://www.successfactors.com/en_us/lp/oxford-economics-workforce-hub-pr.html#.VP1nAsmeYcs

20

THE TRANSFORMATIONAL CHALLENGE; HOW HR MUST EVOLVE TO BE READY FOR 2020

HR is at a crossroads. Perceived by many to be as passive and service orientated42, the function needs to evolve and develop. Elements of HR and the hiring function are already being replaced by technology43, and disruptive innovations are rendering many junior HR roles obsolete due to self service. As a result, the view that much of HR’s procedures could be absorbed into other functions was raised at the Debate. Whilst procedural knowledge and experience is vital, John Power (Legal & General) expressed his opinion that senior HR leaders could come from other business management roles, enabling a more well-rounded view of business challenges (a topic addressed at a future The HR World Debate in July 2015). Many of the most successful HR professionals are strong managers in other disciplines, and Martin Spencer (Gocompare.com) added that you don’t have to come through HR to be a great HR manager. In addition, Neil Ellett (Xerox) predicted that line managers will become more self supporting and that the trend of outsourcing procedures will intensify. Some guests went as far as to claim that HR is in dire need of a rebrand, so how should HR respond?

42 The Future of work: A journey to 2022 – PwC, 2014 http://www.pwc.co.uk/human-resource-services/publications/the-future-of-work-a-journey-to-2022.jhtml 43 “Will HR be replaced by robots and software?” – Bloomberg video on Yahoo finance – Burton Goldfield, 2014 http://www.bloomberg.com/video/robots-software-will-hr-be-replaced-1NeDDvSOTPazEs7QK2yHVQ.html

21

BETTER TOGETHER; HR NEEDS TO COLLABORATE

UPSKILLING FOR THE FUTURE

A lot of HR departments work in their own silos, so the first

Discussion around collaboration with IT brought to light another

transformational challenge is to learn to effectively collaborate.

significant challenge; the need for HR to upskill. There is an

The Debate response was that the three main departments

emerging view that the discipline is becoming increasingly

HR needs to embrace are Marketing, Finance and IT, resulting

outdated and as a result, HR decision makers often stick to

in more Board-level involvement. The guests felt that the

purchasing ‘get out of jail technology and analytics’46, as

employee experience should be as important as the customer

highlighted in David Beard’s case study. These are usually

experience. To achieve this, HR must collaborate with

based around transactional activities such as payroll and are

Marketing; the communication experts that can help change

only adopted for compliance reasons.

the business. Many guests agreed that HR and Marketing have a shared purpose, and should therefore align their initiatives for

The Debate guests agreed that before HR embraces disruptive

greater effect. A Debate guest shared an example of this kind

technologies and capitalises on big data and analytics, it needs

of co-operation from a Financial Services firm; their HR function

new employees who understand how best to utilise them.

influenced Marketing to make reward a key message in external

Brian Sommer, former Senior Director at Andersen Consulting

communication campaigns, aligning with their HR-led internal

(now Accenture), recently said that “giving powerful analytic

focus on rewarding employee behaviour.

tools to many HR folks today (who lack awareness or skills in these technologies and disciplines), is like giving a chainsaw

With Finance, interaction is required because scarcity of

to a 4-year old”46. If there is a significant upskill in technology,

funding and a shortage of human capital are two of the key

then we could see HR utilising big data to help businesses

obstacles when companies around the world seek to grow.

plan and identify opportunities, helping to address the

The transformation of both departments’ operating models

disengagement problem (through gamification and interactive

has already begun through the establishment of shared

tools) and revolutionising talent management. With workplaces

service centres and centres of excellence , but collaboration

varying both in demographics and technological proficiency,

needs to continue as they are both important human capital

the challenge then becomes to conduct an integration process

decision makers. The Debate began to align with the recent

that doesn’t create resistance or conflict, and that doesn’t

PricewaterhouseCoopers (PwC) hypothesis that by 2018, HR

empower some and isolate others47. Attendees agreed that a

and Finance could even be working as a combined function45.

balance needs to be struck between adopting quickly enough

44

to satisfy ‘tech savvy’ employee demand, and dedicating time and resources to ensure that everyone is on board and benefits.

“

GIVING POWERFUL ANALYTIC TOOLS TO MANY HR FOLKS TODAY IS LIKE GIVING A CHAINSAW TO A FOUR YEAR OLD

A RE-BALANCING OF COMPETENCIES It isn’t just concerning technology, however, that an HR upskill is required. The guests cited quantitative thinking, integration skills, proactive learning and general business savvy as common departmental shortages.

44 How collaboration with HR can drive growth: Partnering for performance – EY, 2015 http://www.ey.com/GL/en/Issues/Managing-finance/EY-CFO-program-high-performing-partnering-for-performance-CFO-and-CHROs 45 The Future of work: A journey to 2022 – PwC, 2014 http://www.pwc.co.uk/human-resource-services/publications/the-future-of-work-a-journey-to-2022.jhtml 46 The problem is HR, not HR technology – ZDNet – Brian Sommer, 2014 http://www.zdnet.com/article/the-problem-is-hr-not-hr-technology/ 47 HR Technology Trends In The Workplace In 2015 – Forbes – Karen Higginbottom, 2015 http://www.forbes.com/sites/karenhigginbottom/2015/01/06/hr-technology-trends-in-the-workplace-in-2015/

22

THE FUTURE OF HR

UPSKILLING IN TIME FOR 2020 The below diagram details how upskilling could benefit a HR department and inevitably, a business.

The Debate guests agreed that the key roles for HR going forward should be talent management and people strategy. HR needs to understand technology and big data and put them

Integration Existing integration skills will be taxed by the influx of non-transactional innovations, which need to be adopted at a rate which attempts to satisfy demand, yet keeps everyone up to date.

to work, transforming into a highly analytical and anticipatory function. Becoming a more strategic arm of the business will give HR a ‘seat at the table’ and the ear of the Board. Anticipatory HR departments are already 43% more likely to be involved in the long-term business planning process. Businesses that involve HR at this level are also over six times more likely to have exhibited strong financial performance, versus those where the involvement of HR in the planning process is late or non-existent49. HR has the opportunity to revolutionise talent management, using data, analytics and technology to source,

Quantitative skills

hire, engage, retain and monitor talent. Only 46% of executives

Statistical experts are required to exploit

globally feel capable of extracting meaningful insights from

big data and utilise modern HR

available data, with 52% of these simply using workforce

technologies and analytical tools. Data

issues to drive strategy. HR can adopt a proactive mindset, not

derived from workforce analytics, ROI and employee contribution needs to be

simply considering where you can find an accountant now, but

mined for key information, interpreted

where you could source accountants in potential expansion

and then put to use.

48

destinations in the future50. Successful examples already in operation include Boeing’s using of web-based workforce planning tools to continually evaluate long and short-term skills

Curious/continuous learners It has become a competitive necessity to keep up to date with the latest HR trends and innovations. Businesses who fail to take a proactive approach will likely be left playing

requirements, and the National Grid, who use business growth and ageing workforce statistics to identify gaps over a 3-5 year period51. A report by PwC claims that with sufficient collaboration and strategic focus, we could see HR leaders evolve into a Chief People Officer (CPO) role, a powerful and influential component of business leadership52.

catch up, making these type of individuals a valuable asset.

If HR remains transactional then it will continue to be replaced by technology and outsourced; therefore, HR needs to think

Business savvy HR teams now require people with current operational knowledge, enabling anticipation of future business plans and requirements. This allows HR to align

outside the box. Neil Ellett (Xerox) questioned that when it comes to talent management, instead of always hiring specific skill sets for specific roles, why not hire the most talented people available and fit them in? Regarding existing employees,

Chris

Buckingham

(Resource

Management)

their activities with the overall strategy of

suggested that HR could ask their new influx of talent for input

the business.

on their desired methods and platforms for communication, instead of dictating a set procedure. Helen Norris (Nationwide)

An influx of these capabilities will equip HR to greet tomorrow’s challenges with open arms, allowing HR to grow in relevance for the future.

shared a communicative innovation formulated by Nationwide employees; the ‘unconference’. This involves employees congregating to showcase activities and projects in an informal and flat-structured format. It is clear that HR departments are beginning to react, but with research finding that only 24% of executives believe HR is thinking long-term and anticipating multiple versions of the future, it is also clear that for many, the alarm bells are not ringing loudly enough.

48 The problem is HR, not HR technology – ZDNet – Brian Sommer, 2014 http://www.zdnet.com/article/the-problem-is-hr-not-hr-technology/ 49 “Is HR Failing To Capitalize On Big Data?” – Forbes – Karen Higginbottom, 2014 http://www.forbes.com/sites/karenhigginbottom/2014/10/09/is-hr-failing-to-capitalize-on-big-data/ 50 The 2020 workforce – building a strategic workforce for the future – Success Factors and Oxford Economics (webinar), 2014 http://www.successfactors.com/en_us/lp/oxford-economics-workforce-hub-pr.html#.VP1nAsmeYcs 51 On the cusp of change; the future of HR – HayGroup, 2014 http://www.haygroup.com/uk/downloads/details.aspx?id=43441 52 The Future of work: A journey to 2022 – PwC, 2014 http://www.pwc.co.uk/human-resource-services/publications/the-future-of-work-a-journey-to-2022.jhtml

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04 24

CONCLUSION

BY MIKE BEESLEY CHIEF EXECUTIVE OFFICER RESOURCE SOLUTIONS GROUP

“

THINGS HAVE CHANGED BUT PEOPLE HAVEN’T

After an insightful debate, I reflected on the concept of change; one of the key themes throughout the evening. The rate at which we are experiencing change is incredible, demonstrated by recent findings that most things students learn at university are already outdated by the time they

“

graduate. Technology has been a key driver of change, and it will continue to influence both work and leisure for those who embrace the digital world. Whilst virtual communication and remote collaboration is now a common feature in the workplace, it is still my view that, where possible, meeting face-to-face is the best method.

That being said, many changes have been exaggerated, most notably regarding Gen Y. In my opinion, the values held by this generation are not that different from others. Things have changed, but people haven’t and given the opportunity, I think that they seek the same things I did; a positive career in a great work environment, clear opportunities for development and progression and a good earning potential that allows them to shape their world outside of work. I have always enjoyed working with this demographic, often finding them easier to work with than older generations who can be reluctant to change. We have created the world that Gen Y exists in and it was our generation of managers that have decreased the value of many of today’s job roles.

Leadership needs to respond, and the effort exerted in providing a better offering for employees is likely to be repaid in loyalty, regardless of the demographic.

Finally, I believe that it is HR’s time to shine. HR is in danger of becoming a general function, but its fate is in its own hands. In order to respond to the changing employment landscape HR needs to collaborate and upskill, embracing new technologies and disruptive innovations. Strategic analysis, proactive staffing and employee engagement policies, all viewed in both the short and long-term, are all ways in which HR can and must evolve to be ready for 2020 and beyond.

04 25

GLOSSARY AGILE WORKING

GENERATION (GEN) X

This encompasses flexible hours, hot desking and/or home

Those born approximately between 1960 and 1970.

working. Agile working takes the view that work is an activity and not a place, with value placed on output above input.

ALWAYS ON The concept of being constantly connected by technology, blurring the lines between personal time and work.

AUGMENTED REALITY (AR) Taking an existing picture, digital or print, and blending new

GENERATION (GEN) Y/MILLENNIALS Those born approximately between 1975 and 1995.

GEO-FENCING A geo-fence is a geographical virtual barrier, defined by an administrator. A text message or email alert is sent to the devices of everyone who enters it, enabling it to be utilised as a marketing tool.

information into it. Using applications, print-based images or symbols can be scanned by devices to reveal the encoded content (e.g.: scanning an image with a phone to reveal a related video).

BABY BOOM GENERATION (BABY BOOMERS) Those born approximately between 1946 and 1964.

BIG DATA Extremely large data sets that may be analysed to reveal

ONBOARDING The process through which new employees acquire the necessary skills, knowledge and behaviours to become effective organisational members.

PRINCIPLE AGENT PROBLEM (AGENCY THEORY) The challenge of motivating one party (the agent) to act on behalf of another (the principal), is known as the principalagent problem, or agency theory for short.

patterns, trends, and associations, especially relating to human behaviour and interactions.

DISRUPTIVE INNOVATIONS/TECHNOLOGIES

SOCIAL/PSYCHOLOGICAL CONTRACT The

unwritten

set

of

expectations

of

the

employment

relationship, as distinct from the formal employment contract.

New innovations that drive change, often displacing established

Taken together, the psychological and employment contracts

technologies or processes.

define the employer-employee relationship.

e-HRM

THE CLOUD

The use of web-based technologies to provide Human Resource

The concept of storing and accessing data and programs over

Management services. It can be used by businesses to deliver

the Internet, instead of on your computer’s hard drive.

appraisals, plan training and development, evaluate labour costs and examine indicators for turnover and absenteeism.

GAMIFICATION

UPSKILL To teach or learn additional skills.

Utilising interactive game mechanics to engage users to achieve a set purpose (e.g. onboarding). It aims to tap into the user’s desires and needs, which often revolve around the ideas of exploration and achievement.

26

04

GUEST PROFILES DEBATE LEAD HELEN NORRIS, HEAD OF HR, GROUP OPERATIONS, NATIONWIDE BUILDING SOCIETY Helen moved to Nationwide in 2012 from her position as Global Head of HR at HSBC. Her dedication to driving major change programmes for business transformation has allowed Helen to develop a reputation for delivering results in growth, turnaround and constrained environments within the international blue-chip Financial Services and Telecommunications sectors. A strategic and commercial board level HR professional, Helen has extensive experience of developing and retaining talent and building capability frameworks. She has also managed direct and virtual teams within Europe, Asia, the Middle East, North America and Latin America.

DEBATE CHAIR MIKE BEESLEY, CHIEF EXECUTIVE OFFICER, RESOURCE SOLUTIONS GROUP With more than three decades in the recruitment industry, Mike is Chief Executive of international recruitment organisation Resource Solutions Group (RSG). With a strong belief in the power of relationships and business insight, he considers one of his greatest achievements to be still working alongside many of his clients for more than a decade, successfully helping them meet their goals. Mike’s main aim in hosting a series of RSG thought-leadership debates is to uncover examples of best practice and innovative approaches to a number of topical issues and further the knowledge of how RSG can assist its clients in achieving their business objectives.

DEBATE GUESTS CAROLINE BEER, BUSINESS MANAGER, THE HR WORLD Caroline joined RSG to establish and grow The HR World - an exclusive community providing senior HR professionals with the opportunity to participate in thought leadership forums, network and share experiences with an extended peer group. With over 20 years of global experience in the resourcing industry in the UK, Europe, Middle East and Africa, Caroline has worked in executive search, attraction strategy, RPO, outplacement, diversity and as a resourcing consultant. Her cross-sector executive search expertise has covered corporate functions such as HR, IT, Marketing, Sales and Finance; clients have included Sainsbury’s, Accenture, L’Oreal and GE.

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SAM BLACKIE, PEOPLE AND CORPORATE AFFAIRS DIRECTOR, ROYAL LONDON GROUP Sam joined Royal London Group in January 2012 as the Group People and Corporate Affairs Director. Previously, Sam held a number of roles at Lloyds Banking Group where she developed wide ranging experience in a number of senior HR and Communications roles, including in the IT division, Life & Pensions, Asset Finance and General Insurance Businesses. Sam has a wealth of experience in HR and communications management. Her experience includes working with AXA Sun Life, Arcadia Group, WH Smith and ASDA.

CHRIS BUCKINGHAM, HEAD OF PRACTICE AND IMPLEMENTATION, RESOURCE MANAGEMENT With 13 years in the recruitment industry, Chris has held a number of senior positions within RSG and Resource Management, RSG’s RPO and Managed Service operation. He is MCIPD and an experienced Prince2 Resourcing Programme Manager specialising in the design and implementation of bespoke RPO and talent acquisition solutions across a variety of industry sectors including Financial Services, Communications and Pharma. In his current role, Chris manages the portfolio of RPO implementation projects and is responsible for sharing best practice across Resource Management.

STEVE DEVEREUX, MARKETING ASSISTANT, RESOURCE SOLUTIONS GROUP Steve graduated from the University of the West of England where he read Business Studies with Marketing. He recently joined RSG as part of the marketing team and also heads up all sports sponsorship related activities with Bristol Sport. Whilst studying, Steve was employed as a Brand Ambassador for Gatorade (Pepsi Co.) and held a Student Union role as President of the University’s Basketball Society. Steve was taking notes at the event to aid the construction of this white paper.

FRANCES EARL, GLOBAL HR DIRECTOR FOR PRODUCTS CLIENT PORTFOLIO, ACCENTURE Frances has held many senior HR Director roles within Accenture, both at a local (UKI) and global level. She is currently HR Director for a $7 billion business supporting over 50,000 personnel. Her roles have covered all aspects of HR including talent strategy, HR operations, HR transformation, reward, talent supply chain/resourcing and recruitment. Prior to Accenture, she held a number of roles with leading headhunting firms.

NEIL ELLETT, CLIENT MANAGING DIRECTOR, XEROX Neil is a senior executive in BPO, technology and professional business services organisations. He has previously run large and small organisations, been a consulting partner focusing on strategic change and outsourcing, and started life as a helicopter pilot. He has worked in most sectors (public and private) and specialities include: Technology (IT/Software), Pharmaceutical, Financial Services, Central Government, Aviation and Defence/Security.

ALISON FORWARD, HEAD OF HR CORPORATE STRUCTURING, HSBC Alison is currently leading the people strategy and implementation of the Bank Reform Act (2013) for HSBC. She has held roles as Head of HR for Global Insurance and Head of HR for the Global Retail Bank where she lead the global initiative to fundamentally change global incentive schemes in the retail bank. She has held senior roles in National Air Traffic Services, Environment Agency, AXA and Prudential, concentrating on business and strategic operational and cultural change programmes. Alison is experienced in global disposals, joint ventures, transformations and re-structuring businesses in key global markets.

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DEBBIE MCGLASHAN, DIVISIONAL HR DIRECTOR, TOWERGATE INSURANCE A generalist HR Director with experience in Retail, Automotive and Media industries amongst others. Debbie counts organisation development, employment relations (including union negotiation), acquisition & divestment, colleague engagement and internal communication strategies amongst her specialities. Her previous projects include establishing an own brand offshore operation and the integration of acquired businesses.

ADAM MEADOWS, GROUP SOLUTIONS DIRECTOR, RESOURCE SOLUTIONS GROUP Adam has been with RSG for 16 years following a short career in the Software industry. After training as a permanent and contract recruitment consultant, in 2003 he specialised in delivering value added solutions to the RSG client base. Since that time, he has developed a series of innovative products delivered through a range of RSG businesses and is currently the Group Solutions Director.

He believes that there is an ever-increasing desire within UK companies for recruitment businesses to deliver more bespoke and creative resourcing solutions, meeting their needs for flexibility, agility, quality and value.

JOHN POWER, STRATEGY, CHANGE & GOVERNANCE DIRECTOR, RETAIL SAVINGS, LEGAL & GENERAL John is a Financial Services professional with over 25 years’ experience working in strategy development, business planning, change management consultancy, shared service organisational structures and project management. John specialises in strategic planning, distribution strategies, service delivery, leadership coaching & development and change. John has worked at Legal & General since 2013 and in his current role is responsible for driving the strategic development of the Retail Savings businesses L&G, Cofunds and Suffolk Life brands, oversight of related investment in change and the governance frameworks that support the business area. Previously, John has worked in a wide variety of roles at MetLife, HBOS/Clerical Medical and AXA Sun Life, as well as his own consulting business.

MARTIN SPENCER, HR & OD DIRECTOR, GOCOMPARE.COM After spending 3 years doing secret doctoral research for the Admiralty (which he says is much less interesting than it sounds), Martin spent his early career working for British Gas and in HR consulting before joining the Zurich Group in the UK, where he held several senior roles including Capability Development Director for the UK (he calls this his best ever job title). He was latterly HR Director of Openwork, the UK’s second largest network of financial advisers, and he is now HR & OD Director at Gocompare.com, one of the UK’s leading price comparison sites. He tries to utilise his core expertise as a psychologist in organisational change, assessment & development, performance management and staff engagement.

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