10 HR Trends That Are Changing The Face of Business: A Keynote Presentation Delivered
10 HR Trends That Are Changing The Face of Business: A Keynote Presentation Delivered
By
Dave MacKay
Chief Operating Officer
Ceridian Canada Ltd.
INTRODUCTION
The c-level is finally starting to realize how important your role is. They want
you to get out of the day-to-day administrivia - while still making sure
everything is done perfectly, mind you. They want you to measurably
contribute to the top-line and the bottom line, and help mitigate risk.
There are ten major trends that you need to be aware of as your role evolves
to meet these challenges. Let’s start with the most obvious.
We need to put the “human” back into human resources. Employees are
humans, not commodities, and HR departments have to start seeing them
differently. With the current push towards strategies that engage
employees, attract top talent, and contribute to the bottom line, this change
is imperative.
We need to stop whining about being at the table. These days, almost every
book or article you read about the role of HR talks about HR needing to be ‘at
the table’ or to be more strategic.
Clearly the first step is to make sure that the organization’s HR practices are
effective. The practices should create competitive advantage by building
strong organizations, strong leaders and managers, and strong teams and
employees. But few HR departments do this in a measurable way. CEOs are
demanding that HR stop giving lip service to strategic performance and find
the metrics that prove they are contributing to the growth and performance
of the company through effective people management.
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executive table and understand as much about the business as the other
leaders.
Organizations consist of people. People are real. You can see them, touch
them, hear them. And people have capabilities. And those people with their
capabilities will determine whether the organization thrives or dies. As Jim
Burns, Ceridian’s president, likes to say “people are the only company asset
that increases in value.”
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#2 - The War for Talent
The most important corporate resource over the next 20 years will be talent:
smart, sophisticated business-people who are technologically literate,
globally astute, and operationally agile. Talent really does matter – for
example “top software developers are more productive than an average
software developer not by 10x, 100x, or even 1000x … but 10,000x” (Nathan
Myhrvold, former Chief Scientist, Microsoft)
According to The Conference Board of Canada, “the war for talent is fierce,
and is likely to become more so with the massive number of employees
retiring in the next five years. Top organizations are moving beyond the
vanilla “employer of choice” concept to a more rigorous strategy of attracting
and retaining the right employees through branding.”
The key to attracting and retaining scarce skills is to be, and be seen to be, a
first-tier employer that can meet the needs of high potential/high
performance employees.
Now is not the time to sit in the ivory towers thinking you know who your
major contributors are. You need to dig deep into the organization to
identify the top talent, the high performers in every aspect of your business.
In all likelihood it’s not the people who are the most politically astute or the
most popular.
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Some recruitment effectiveness strategies include:
Employment branding
Ongoing recruiting, not stop-start
Nurturing relationships with strong candidates, even though no jobs
for them are currently available
Referrals – this is particularly effective with Generation “Y”ers. They
do everything through leveraging their networks. They are always
connected – using mobile phones, text messaging, instant messaging,
blogging or email.
Realistic job previews
Managers trained in interviewing (so that they will create a favourable
impression of company)
Selection criteria – Can they do the job? (Competencies) Will they do
the job? (Motivation) Can we offer them what they are looking for?
(Cultural Fit)
Rapid response and follow up – Hard to hire skills are in high demand
Debrief candidates as quality control monitoring for recruitment
process
Most candidates will not get jobs – but they might be current or future
customers, hence the importance of handling the rejection process
effectively.
Note: Ceridian surveys rejected candidates to get their feedback on
the entire recruiting and selection process. Even though we have not
hired those candidates, their feedback about the process and their
treatment during it is very favourable.
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#3. Outsourcing of HR Functions: The Virtual HR
Organization
If you are an HR professional I doubt that you got hired for your ability to
process employee information changes, sort resumes or process the payroll
every other week.
The primary benefit of HR outsourcing is that it will allow you to keep your
job because it will enable you to tackle these more strategic issues!
There are five good reasons why companies outsource their HR services:
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#4. The Healthy Workplace: Wellness, Work-Life
Balance
There is growing recognition that there is a definite link between the work
environment and the health and well-being of its employees. Further,
employers are now recognizing the connection between employee health and
the bottom line.
Consider…
Over half of Canadians working for large employers feel stressed, one
in three feels burned out or depressed, many are thinking of quitting
their jobs, and absenteeism is costing employers billions each year.
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Long working hours and heavy job demands were the main sources of
work stress identified in a Statistics Canada survey. Poor interpersonal
relationships and the risk of accident or injury were also cited as
sources of stress on the job.
When we look in the mirror, we see ourselves as entire human beings – not
just people with jobs and careers, but people with families, friends, beliefs,
interests, passions, responsibilities, worries and futures. We need to look at
our people through the same mirror – not just as employees or colleagues
but as total human beings. If companies ignore the full humanity of their
people, or if people find it necessary to suppress their human-ness in the
workplace, the tensions created eat away at the vitality of the organization.
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#5. The Diverse Workforce
What does diversity mean? Canada has a reputation for embracing people of
varied ethnicity, religion, culture, language and beliefs. But our multicultural
mix does not make us immune to the challenges of managing a diverse
workforce.
The reality is that today’s workforce and the workforce of the future will be
made up of a diverse, complex collection of employees, all with different
needs and experiences. And this is good, because an organization with a
broad variety of people with a diverse range of perspectives is better able to
do business with a variety of people, to solve a variety of problems and to
make a variety of decisions.
As companies become more global and are using more offshore services, it
creates the need for diversity strategies that go beyond our own national
borders. It will take a whole new level of education, tolerance and a
willingness to embrace change. HR will need to provide cross-cultural support
and training for virtual global teams.
But diversity is not just about race, colour and creed. Diversity is about
managing the demographic and psychographic characteristics of an evolving
workforce.
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The Generation Y or Millenials, now entering the workforce. They’ve grown up
in a world where the use of computers and the Internet is a basic bodily
function.
They’ve grown up in an inclusive world, with friends and peers from a myriad
of places and cultures. They’re the human embodiment of globalization.
Organizations that will attract and retain high potential younger employees
will have the following characteristics:
Because this group is often overlooked in the labour market, there are
excellent opportunities to get ‘the best of the best’ from them
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As a business strategy, the value of diversity is to bring to a company the
broadest possible spectrum of knowledge, experience and perspective. A
diverse workforce consists not just of people with a broad range of
demographic traits, but, more importantly, a broad range of educational
backgrounds, professional and other interests, work experiences, life
experiences and cultural perspectives. Ultimately the success of a diversity
strategy is measured in how well we capitalize on the skills, intelligence,
culture and experience of every employee.
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#6. The Impact of Technology
Resistance is futile!
Now we seem to be always on call, always reachable – in our cars, in the air,
at home – virtually everywhere.
We’ve entered the century of the employee and technology has to respond.
CRM or customer relationship management is giving way to ERM – employee
relationship management. Employee self-service has become as important
as customer self-service. Customized and personalized content will be king.
It’s important that we continue to embrace technology and keep our eyes on
new advances that may bring even better communication and collaboration
tools. Technology helps people connect within the work environment
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regardless of time and place. It fuels the potential for increased productivity
and creativity. Today’s virtual workers and flexible work arrangements are
made possible through communication technology. Organizations can be
physically local, yet virtually global, thanks to technology.
They are looking for solutions that provide global compliance capabilities that
can be used at the local level.
They are looking for an HR solutions framework that will enable the
management of employees from hire-to-retire.
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#7. Talent Management: Leadership Development
One of the scarcest capabilities, now and for the foreseeable future, is
leadership. As organizations, their customers, their employees and their
environment become more global, more complex, more competitive and
more subject to rapid and radical change, the competency requirements for
successful leadership are increasing exponentially.
Take a few seconds and reflect on what were the three most important
contributors to your own development – as a professional and as a leader.
If you are like most people, none of those three contributors was a course.
One of our HR consultants at Ceridian has conducted this exercise with
numerous groups of managers and executives across Canada, the U.S. and
Asia. About one in ten people mention a course – usually a very extensive
and expensive 1-3 month executive development program. But over 90% of
the items mentioned pertain to learning that occurred in the course of their
work. Among the most common are being given responsibility for a major
project – sometimes being thrown off the deep end, gaining experience in
groups outside one’s functional expertise, working on multi-disciplinary
teams, working with customers, suppliers or strategic partners, working for a
really good boss or a really bad one.
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opportunity to contribute to the development of the corporate strategies and
plans. Leadership comes with empowerment – employees can’t be leaders
unless they have the power to take risks, make decisions, innovate and lead.
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#8. Talent management: Succession Planning
We now live in a world where the jobs, the job requirements and the
organizations are constantly changing – acquisitions, divestitures, down-
sizing, mergers, technology changes and on and on.
Many of us are in jobs that did not exist three years ago. Three years from
now, many of us will be in jobs that do not exist today.
The challenge for HR professionals is to figure out how to look deep into the
organization to find talented, visionary people with a passion for the future.
They need to anticipate the skills they will need in the future.
There are more and more younger people going into leadership or
management positions. What kind of mentoring and coaching do they need?
Traditional succession planning identified who could fill what box in the
organization chart in how many years time, and what skills they would need
to get there.
Even if we have remained, or will remain, in the same box in the org chart,
the chances are very high that the skill requirements of our position will
change significantly.
Many of us are in jobs that did not exist three years ago. Three years from
now, many of us will be in jobs that do not exist today. In this context of
unceasing change, succession planning needs to be re-engineered, to focus
not on particular positions, which may or may not exist in the future but
rather on the competencies that the organization will need in the future,
regardless of how the individual positions or the organization chart changes.
Succession planning evolves into something broader – talent management.
Instead of identifying which individuals can move into which position when,
talent management identifies a pool of high potential employees who will
provide the basis for the organization’s success regardless of the changing
organizational structure. Investments must be made in these high potential
employees to help them develop the competencies that will take them and
the organization to success.
Lots of companies have succession plans but very few have done the career
planning and skills gap analysis needed to acquire the best talent. I would
hazard a guess that most of the companies in this room don’t have such a
plan.
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#9. Corporate Values and Culture
The current wave of disapproval began in 2001 with the bursting of the dot-
com bubble, the ensuing bear market and the financial scandals involving
Enron, WorldCom, Tyco and others. But this time, corporate response is
different. Companies are going well beyond the PR exercise of displaying
values statements. They’re engaging in values-driven management
improvement efforts, training staff in values and appraising executives and
staff on their adherence to values.
What is clearly evident these days is that more and more firms are unwilling
to tolerate unethical behaviour from their executives. They are taking drastic
action as in the case of the Boeing CEO who was ousted because of unethical
activities.
But what is culture? What drives it? How do values affect corporate
performance?
Culture is not a concierge serving up free fresh fruit in the cafeteria, nor is it
a values chart hanging on the wall purporting commitment to integrity,
respect, honesty and customer satisfaction. Enron had a brilliantly-crafted
set of corporate values. Obviously it was just there for decoration. .
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behaviour, honesty, integrity, and social concerns as top issues on their
companies’ agendas.
Leaders and top management must be responsible for building strong, high-
performance cultures. They are the ones who construct the social reality,
and shape the values of the organization.
A recent study on the factors that drive performance found that corporate
environments where culture is flexible, adaptable to change and ongoing
improvements will increase performance by 22.9%
Branding: the alignment of the vision of the employee with the vision
of the company. In effect, it makes a promise about the values of the
organization and delivers on it.
Engagement: The congruency between employees’ needs and those of
the employer. Culture is a key element in achieving this match.
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#10. Impact of Legal and Compliance Issues
Privacy laws are in the process of fundamentally changing the way in which
the HR department interacts with employees. This may include but is not
limited to:
If you have tried to get specific answers to these or similar questions such as
‘how much security is enough’ or ‘what is the best practice for protecting HR
data?’ from your auditors, then you probably have the same scar tissue on
your forehead as I do. On a case by case basis, the intent of each of the
regulations is grounded in a desire to make sure that we do the right thing.
Embrace the opportunity. If you take these issues on one by one and
respond, you will be stuck in response mode until the receivers knock on
your door. The silver lining to this regulatory cloud is that by taking positive
control of your assets, data as well as financial, you end up in better control
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of your business or your department. If you do it yourself, you can partner
with your compliance department and your IT group and explicitly define
your objectives and requirements. If you outsource, you can do the same
thing through the service level agreement that you have with your
outsourcer.
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Conclusion
Get rid of the stigma around mental health issues. There is no workplace
issue more important to your organization, to society, and to Canada’s
productivity. Anxiety and depression in the workplace must be dealt with or
it’s going to cost your organization in lost productivity and a lot of money.
Do real talent management – know who your Stars are, nurture them,
develop them, figure out what support they need to thrive in your
organization – because if you don’t another company will.
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