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Rewriting the rules for the digital age 2017 Deloitte Global Human Capital Trends

COVER AND CHAPTER ILLUSTRATIONS BY LUCIE RICE

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Deloitte’s Human Capital professionals leverage research, analytics, and industry insights to help design and execute the HR, talent, leadership, organization, and change programs that enable business performance through people performance. Visit the Human Capital area of www.deloitte.com to learn more.

Rewriting the rules for the digital age

PREFACE

WELCOME to Deloitte’s fifth annual Global Human Capital Trends report and survey. This year’s report takes stock of the challenges ahead for business and HR leaders in a dramatically changing digital, economic, demographic, and social landscape. In an age of disruption, business and HR leaders are being pressed to rewrite the rules for how they organize, recruit, develop, manage, and engage the 21st-century workforce.

This workforce is changing. It’s more digital, more global, diverse, automation-savvy, and social media- proficient. At the same time, business expectations, needs, and demands are evolving faster than ever before. While some view this as a challenge, we see it as an opportunity. An opportunity to reimagine HR, talent, and organizational practices. An opportunity to create platforms, processes, and tools that will continue to evolve and sustain their value over time. An opportunity to take the lead in what will likely be among the most signifi- cant changes to the workforce that we have seen.

Hence, our call for new rules for HR in the digital age.

The 2017 report began last summer with us reaching out to hundreds of organizations, academics, and practi- tioners around the world. This year, it includes a survey of more than 10,000 HR and business leaders across 140 countries. The report reveals how leaders are turning to new organizational models that highlight the networked nature of today’s world of work; innovation-based HR platforms; learning and career programs driven by social and cognitive technologies; and employee experience strategies that put the workforce at the center. The report closes with a discussion of the future of work amid the changes being driven by advances in automation and an expanded definition of the workforce.

We are pleased to present this year’s Global Human Capital Trends report and survey and look forward to your comments. 2017 is positioned to be a year of change as we all manage new levels of transformation and disruption. The only question now is: Are you ready?

Brett Walsh Global leader, Human Capital Deloitte LLP

Erica Volini US leader, Human Capital Deloitte Consulting LLP

CONTENTS

Introduction:

2017 Deloitte Global Human Capital Trends

Rewriting the rules for the digital age

The 2017 Deloitte Global Human Capital Trends

of business. This new era, often called the Fourth Industrial Revolution1—or, as we have earlier labeled it, the Big Shift2— has fundamentally transformed busi- ness, the broader economy, and society.

WE Rewriting the rules for the digital age -

- -

Forces for change driven by the digital revolution

Introduction Rewriting the rules for the digital age

- 3

- - -

Fortune -

Thank You for Being Late -

Deloitte University Press | dupress.deloitte.com

Ra te

o f c

ha ng

Time

Technology change

Business productivity

Gap in business performance potential

• Mobile, sensors, AI, cognitive computing • Access to technology by consumers globally

Figure 1. What appears to be happening

Organizations face a radically shifting context

for the workforce, the workplace, and the world of work.

2017 Deloitte Global Human Capital Trends

Rewriting the rules for the digital age

- -

Deloitte University Press | dupress.deloitte.com

Ra te

o f c

ha ng

2000s 2010s Today1990s1980s1970s

HR’s opportunity is to help close the gaps among technology, individuals, businesses, and society and governments.

Technology

Individuals

Businesses

Public policy

Figure 2. What is really happening

Curve 4

Curve 1

Curve 2

Curve 3

OUR GLOBAL RESEARCH The 2017 survey is our largest and most extensive to date, with input from more than 10,400 business and HR leaders across 140 countries. Twenty-two percent of respondents were from large companies (more than 10,000 employees), 29 percent from medium-sized companies (1,000–10,000 employees), and 49 percent from small companies (fewer than 1,000 employees). Respondents from the Americas accounted for 31 percent of the total; Europe, Middle East, and Africa contributed 51

telecommunications; and manufacturing. Sixty-three percent of the respondents were HR professionals, with other business executives comprising 37 percent. C-level executives accounted for 30 percent (more than 3,100) of the respondents.

The appendix contains additional details on respondent demographics.

RAPID AND DISRUPTIVE CHANGE IS NOT NEW

- - -

The 10 human capital trends

TREND 1. THE ORGANIZATION OF THE FUTURE: ARRIVING NOW

- -

actively building

2017 Deloitte Global Human Capital Trends

Rewriting the rules for the digital age

TREND 2. CAREERS AND LEARNING: REAL TIME, ALL THE TIME

- The 100-Year

Life

TREND 3. TALENT ACQUISITION: ENTER THE COGNITIVE RECRUITER

Deloitte University Press | dupress.deloitte.com

Organization of the future

Careers and learning

Talent acquisition

Employee experience

Performance management

Leadership

Digital HR

People analytics

Diversity and inclusion

The augmented workforce

Robotics, cognitive computing, and AI

Percentage of total responses

Not/somewhat important Important/very important

Note: Ratings for “The augmented workforce” and “Robotics, cognitive computing, and AI” both relate to the broader trend on “The future of work” discussed in this report.

Figure 3. The 2017 trends by importance

88%

83%

81%

79%

78%

73%

71%

69%

63%

40%

12%

17%

19%

21%

22%

27%

29%

31%

37%

60%

TREND 4. THE EMPLOYEE EXPERIENCE: CULTURE, ENGAGEMENT, AND BEYOND

TREND 5. PERFORMANCE MANAGEMENT: PLAY A WINNING HAND

- -

TREND 6. LEADERSHIP DISRUPTED: PUSHING THE BOUNDARIES

- -

TREND 7. DIGITAL HR: PLATFORMS, PEOPLE, AND WORK

RECALCULATING THE ROUTE

TREND 9. DIVERSITY AND INCLUSION: THE REALITY GAP

2017 Deloitte Global Human Capital Trends

Rewriting the rules for the digital age

Deloitte University Press | dupress.deloitte.com

How we redesign the organization and its leadership for the future

TREND 1 The organization of the future: Arriving now

TREND 6 Leadership disrupted: Pushing the boundaries

How we build a new management system to empower and engage the teams

TREND 5 Performance management: Play a winning hand

TREND 9 Diversity and inclusion: The reality gapHow we design the employee

experience for engagement, productivity, and growth

TREND 4 The employee experience: Culture, engagement, and beyond

How we build a culture of continuous learning, adaptability, growth, and personal development

How we leverage digital technology to design and improve work, the workplace, and the workforce

How we leverage data, cognitive technologies, and AI to improve the organization and its teams

TREND 3 Talent acquisition: Enter the cognitive recruiter

TREND 8 People analytics: Recalculating the route

TREND 7 Digital HR: Platforms, people, and work

TREND 10 The future of work: The augmented workforce

Figure 4. Rewriting the rules for the digital age

2017 Deloitte Human Capital Trends

T Pe m wwwwwwwwwwwww

TREND 2 Careers and learning: Real time, all the time

rce

e, T TTT E r

TTT PPP RRR ro

TREND 10. THE FUTURE OF WORK: THE AUGMENTED WORKFORCE

New game, new rules

Global Human Capital Trends -

Deloitte University Press | dupress.deloitte.com

Scale used: Excellent (4), Good (3), Adequate (2), Getting by (1), Underperforming (0)

2015 2016 2017

The proportion of respondents rating their HR capabilities as “Getting by” and “Adequate” has marginally increased, and that rating their

capabilities as “Good” has marginally decreased, since 2016

10%

22%

32% 31%

21%

32% 33%

6% 9%

21%

34%

30%

10%

15%

20%

25%

30%

35%

40%

Underperforming Getting by Adequate Good Excellent

GPA (grade)

2015 2016 2017

2.0 (C) 2.0 (C)2.1 (C+)

Figure 5. HR performance scorecard, 2015–2017

2017 Deloitte Global Human Capital Trends

Rewriting the rules for the digital age

HR scorecard: How well is HR keeping up?

- -

Join us: Riding the wave to its crest

Deloitte University Press | dupress.deloitte.com

Non-HR (GPA: 1.8) HR (GPA: 2.1)

Excellent

Good

Adequate

Getting by

Underperforming

25%

33%

23%

14%

33%

35%

20%

Figure 6. 2017 HR scorecard by job function

Appendix

Note: Figures represent the percentage of respondents rating each trend “important” or “very important.” Ratings for “The augmented workforce” and “Robotics, cognitive computing, and AI” both relate to the broader trend on “The future of work” discussed in this report.

Lower %Higher %

AMERICAS EUROPE, MIDDLE EAST, & AFRICA ASIA PACIFIC

Region Global Latin & South

America

North America Africa

Central and

Eastern Europe

Middle East

Nordic countries

Western Europe Asia Oceania

Organization of the future

Careers and learning

Talent acquisition

Employee experience

Performance management

Leadership

Digital HR

People analytics

Diversity and inclusion

The augmented workforce

Robotics, cognitive computing, and AI

2017 Deloitte Global Human Capital Trends

Rewriting the rules for the digital age

Trend in order of global

importance Global Consumer business

Energy & resources

Financial services

Life sciences & health care

Manu- facturing

Pro- fessional services

Public sector

Real estate

Technology, media, &

telecommuni- cations

Organization of the future 88 85 92 87 83 90 85 81 94

Careers and learning 81 80 83 82 82 86 73 81 84

Talent acquisition 82 76 82 82 82 84 76 83 84

Employee experience 79 77 79 80 76 83 72 79 83

Performance management 81 80 80 77 81 77 68 83 80

Leadership 75 74 82 74 75 80 73 74 85

Digital HR 74 75 74 75 72 75 72 68 76

People analytics 72 69 71 75 68 72 67 67 74

Diversity and inclusion 69 70 71 69 68 70 68 65 67

The augmented workforce

59 63 61 63 59 73 63 62 62

Robotics, cognitive computing, and AI

34 37 41 38 44 45 34 28 46

Lower %Higher %

Trend in order of global importance Global Large (10,000+) Medium (1,001

to 10,000) Small

(1 to 1,000)

Organization of the future

Careers and learning

Talent acquisition

Employee experience

Performance management

Leadership

Digital HR

People analytics

Diversity and inclusion

The augmented workforce

Robotics, cognitive computing, and AI

Lower %Higher %

2017 Deloitte Global Human Capital Trends

Rewriting the rules for the digital age

Deloitte University Press | dupress.deloitte.com

Our survey includes data from 10,447 business and HR leaders

Region

Country

Western Europe

Latin & South America

Asia

North America

Africa

Central & Eastern Europe

Nordic countries

Oceania

Middle East

25%

17%

15%

14%

10%

Industry

Professional services

Financial services

Consumer business Technology, media,

& telecommunications Manufacturing

Public sector

Energy & resources

Life sciences & health care

Real estate

16%

13%

12%

Other 12%

11%

Respondent job function

63% 37%

Non-HR

Respondent job level

51%

20%

30%

Mid-level

Individual contributor

C-suite

Organization size (employees)

49% 22%

29%

Small (1 to 1,000)

Large (10,001+)

Medium (1,001 to 10,000)

United States Belgium

India Norway

China Canada France

South Africa Mexico

Costa Rica Colombia

Spain Germany

United Kingdom Japan

Australia Ireland Poland Finland

Kenya Brazil

Russia Netherlands

Greece Peru

Uruguay Switzerland

Portugal Denmark

Ecuador Austria Turkey

1,115 779 616 379 351 318 299 295 281 262 245 235 229 215 205 197 196 188 182 181 159 156 142 136 136 134 126 123 111 101

98 97

Singapore Nigeria

Guatemala Argentina

Serbia United Arab Emirates

New Zealand Ukraine

El Salvador Italy

Tunisia Chile

Romania Cyprus

Luxembourg Malaysia

Indonesia Angola

Senegal Namibia

Ivory Coast Zimbabwe

Czech Republic Ethiopia

Hong Kong Thailand

Dutch Caribbean Panama

Venezuela Korea

Sweden All others

94 89 88 78 78 77 76 74 72 72 72 68 68 58 53 53 52 48 48 47 46 46 45 45 42 42 34 33 31 30 30

371

Figure 10. Survey demographics

1. Klaus Schwab, The Fourth Industrial Revolution (World Economic Forum, 2016).

2. John Hagel, John Seely Brown, and Lang Davison, “The Big Shift: Measuring the forces of change,” Harvard Busi- ness Review, July–August 2009.

3. The overwhelmed employee: Simplify the work environment, Deloitte University Press, March 7, 2014, https://dupress.deloitte.com/dup-us-en/focus/human-capital-trends/2014/hc-trends-2014-overwhelmed-

4. Bureau of Labor Statistics, “Labor productivity and costs,” https://www.bls.gov/lpc/prodybar.htm, accessed Janu- ary 13, 2017.

5. Thomas L. Friedman, Thank You for Being Late (Farrar, Straus & Gioux, 2016), pp. 213–219.

6. PRNewswire, December 9, 2015, http://www.prnewswire.com/news-releases/deloitte-survey-americans-look-

2017.

7. Lynda Gratton and Andrew Scott, The 100-Year Life (Bloomsbury, 2016).

ENDNOTES

2017 Deloitte Global Human Capital Trends

Rewriting the rules for the digital age

Josh Bersin, Bersin by Deloitte, Deloitte Consulting LLP | [email protected]

Josh Bersin founded Bersin & Associates, now Bersin by Deloitte, in 2001 to provide research and advisory services focused on corporate learning. He is a frequent speaker at industry events and a popular blogger. Bersin spent 25 years in product development, product management, marketing, and sales of e-learning and other enterprise technologies. He has a BS in engineering from Cornell, an MS in engineering from Stanford, and an MBA from the Haas School of Business at the University of California, Berkeley.

Bill Pelster, Deloitte Consulting LLP | [email protected]

Bill Pelster has more than 25 years of industry and consulting experience. In his current role, Pelster is responsible for leading the Bersin by Deloitte Research and Products practice and is a senior advisor to the Integrated Talent Management practice. A well-respected speaker and author, he has recently led, supported, or authored key research pieces including Talent 2020, Global Human Capital Trends, and The Leadership Premium. In his previous role as

of Deloitte professionals, and was one of the key architects of Deloitte University, Deloitte’s $300 million learning facility outside Dallas. Pelster is a former US board member for Deloitte Consulting LLP.

is an advisor to senior business leaders in global companies, focusing on organization, HR,

Tech Terminal (ITT) connecting US and global companies with the Israeli start-up ecosystem. He is a frequent speaker and writer on issues at the nexus of talent, human resources, global business challenges, and the “future of work.” In 2011, Schwartz led the launch of Deloitte’s Global Human Capital Trends survey and report series and continues to serve as one of the executive editors.

Bernard van der Vyver, Deloitte Consulting BV | [email protected]

Bernard van der Vyver is a leading advisor on human capital matters, focusing on learning

the development of people, van der Vyver brings a unique strength to the HR domain. As Deloitte’s global Learning Solutions leader, he aspires to grow and strengthen the global learning community by leveraging the organization’s knowledge and expertise to deliver learning solutions that create unique value for clients.

CONTRIBUTORS David Mallon, Julie May, Jen Stempel

AUTHORS

Rewriting the rules for the digital age

High-performing organizations operate as empowered networks, coordinated through culture, information systems, and talent mobility. Companies are focused on redesigning the organization itself, with nearly half actively studying and developing new models. And many organizations are not only designing but also building this new organization. As networks and ecosystems replace organizational hierarchies, the traditional question “For whom do you work?” has been replaced by “With whom do you work?”

• - zation of the future is an important or very important issue.

• increase from last year.

• Yet challenges remain: Only 11 percent of survey respondents believe they under- stand how to build the organization of the future.

The organization of the future Arriving now

WHY -Global Human Capital Trends

2017 Deloitte Global Human Capital Trends

Rewriting the rules for the digital age

ORGANIZING FOR SPEED, AGILITY, AND ADAPTABILITY

- -

THE POWER OF NETWORKS OF TEAMS

1 -

Percentages by region:

Latin & South America

North America

Americas 92 87

Asia Oceania 89 85

Africa Central & Eastern Europe

Middle East Nordic countries

Western Europe

Europe, Middle East, and Africa 87 83 83 90 87

Italy 89

UK 88

Canada 87

Belgium 82

85 Netherlands

Spain 91

74 South Africa

USA 87

Mexico 89

95 Brazil 84 Australia

89 China

96 India

France 88

Germany 90 70 Japan

Figure 1. Organization of the future: Percentage of respondents rating this trend “important” or “very important”

Deloitte University Press | dupress.deloitte.com

Lower %Higher %

Percentages in selected countries:

Lower %Higher %

India

Brazil

Spain

Germany

Mexico

Italy

China

France

United Kingdom

United States

Canada

Netherlands

Australia

Belgium

South Africa

Japan

STARTING AT THE EDGE

Deloitte University Press | dupress.deloitte.com

How things were

C D E

How things are

A B

How things work

• Shared values and culture • Transparent goals and projects

Figure 2. A network of teams

2017 Deloitte Global Human Capital Trends

Rewriting the rules for the digital age

NEXT STEP: BUILDING THE ORGANIZATION OF THE FUTURE

Global Human Capital Trends

- -

Among this year’s survey respondents, 32 percent say that

they are now designing their organization to be more adaptable and team-centric.

- -

4 -

BUILDING IN ACCOUNTABILITY

- -

Lessons from the front lines

- - -

- -

2017 Deloitte Global Human Capital Trends

Rewriting the rules for the digital age

- -

Start here • Embrace the speed of change: -

• Make talent mobility a core value:

• Form an organizational performance group:

• Examine new communication tools: - -

• Adopt continuous, feedback-based per- formance management:

Old rules New rules

Organized for learning, innovation, and customer impact

Company viewed as a hierarchy, with hierarchical decision rights, structure, and leadership progression

Company viewed as an agile network, empowered by team leaders and fueled by collaboration and knowledge-sharing

Structure based on business function with functional leaders and global functional groups

Structure based on work and projects, with teams focused on products, customers, and services

Advancement through promotion upward with many levels to progress through

Advancement through many assignments, diverse experiences, and multifunctional leadership assignments

People “become leaders” through promotion authority

Lead by direction Lead by orchestration

Culture ruled by fear of failure and perceptions of others

Culture of safety, abundance, and importance of risk- taking and innovation

Rules-based Playbook-based

and job titles change regularly

Process-based Project-based

FAST FORWARD

As this new type of organization takes hold, working in teams will likely become the norm in business, and dynamism will become an organizational hallmark. Building and

from teaming may also become standard.

to build their careers, while companies that continue to operate in the old manner will likely struggle to keep up. In this new world, more nimble organizations will have certain advantages, but successful large organizations will keep pace by building stronger ecosystems and partnerships that broaden their workforces and capabilities.

2017 Deloitte Global Human Capital Trends

Rewriting the rules for the digital age

1. rise of teams,” Deloitte Global Human Capital Trends 2016, February 29, 2016, https://dupress.deloitte.com/dup- us-en/focus/human-capital-trends/2016/organizational-models-network-of-teams.html, accessed December 21, 2016.

2. - tional design for an uncertain future, Deloitte, 2016, https://www2.deloitte.com/content/dam/Deloitte/global/

3. Report by Rob Cross, http://www.robcross.org/consortia.htm.

4. Josh Bersin, HR technology disruptions for 2017: Nine trends reinventing the HR software market, Bersin by Deloitte, 2016.

5. Quentin Hardy, “The new workplace is agile, and nonstop. Can you keep up?” New York Times, November 25, 2016, http://www.nytimes.com/2016/11/25/technology/the-new-workplace-is-agile-and-nonstop-can-you-keep- up.html, accessed December 21, 2016.

6. Andrea Derler, High-impact leadership: The new leadership maturity model, Bersin by Deloitte, 2016.

7. Conversation with the CEO of the Asian telecommunications company, August 2016.

Deloitte, A new global HR software solution supports HR transformation and drives innovation at Philips, https:// www2.deloitte.com/content/dam/Deloitte/uk/Documents/consultancy/deloitte-uk-consulting-philips-hr-digital. pdf, accessed February 12, 2017.

ENDNOTES

Josh Bersin, Bersin by Deloitte, Deloitte Consulting LLP | [email protected]

[email protected]

years of business and consulting experience, delivering operating model, organization design, talent strategy, decision optimization, and change management solutions. Her focus is on

McDowell holds an MBA and a doctorate in industrial/organizational psychology.

Amir Rahnema, Deloitte Canada | [email protected]

Amir Rahnema is Deloitte’s global leader for Organization Design services. He focuses on working with both private- and public-sector clients to drive large-scale organizational

technology implementations, and complex workforce transitions. His work has spanned reorganizations in numerous industries, including banks, regulatory agencies, consumer

Yves van Durme, Deloitte Consulting | [email protected]

Yves van Durme is a partner with Deloitte’s Belgian consulting practice and the global leader of Deloitte’s Strategic Change practice. He specializes in leadership and organizational development and talent and HR strategy in business transformation contexts. Van Durme has nearly 20 years of experience as a consultant, project manager, and program developer

multinationals, family businesses, and small and medium enterprises. His experience

organizational development work, focusing on the balance between processes, structures, and systems on the one hand and cultural and people-related elements on the other.

CONTRIBUTORS Garth Andrus, David Mallon, Phil Neal

AUTHORS

2017 Deloitte Global Human Capital Trends

Rewriting the rules for the digital age

The concept of career is being shaken to its core. Employees now enjoy the prospect of 60-year careers. Yet at the same time, the half-life of skills is rapidly falling. These new realities are forcing companies to rethink the way they manage careers and deliver always-on learning and development (L&D) opportunities. Leading companies are moving to overhaul their career models and L&D infrastructure for the digital age, though most organizations are still in the early stages of this transformation.

• This year, the issue of improving employee careers and transforming corporate

last year.

• Learning technology is changing rapidly. Traditional learning management systems are being complemented with and replaced by a wide range of new technologies for content curation, delivery, video distribution, and mobile use.

• This upheaval in learning and careers has become a catalyst for radical change. Nearly half of our surveyed executives (45 percent) cite this problem as urgent or

dropped by 5 percent.

Careers and learning Real time, all the time

WHAT - WHAT EMPLOYEES EXPECT FROM THE 100-YEAR LIFE1 -

2 -

2017 Deloitte Global Human Capital Trends

Rewriting the rules for the digital age

- -

4 The 100-Year Life

- -

THE NEED FOR RAPID SKILL DEVELOPMENT AND THE COMMODITIZATION OF CONTENT

Companies worldwide are scrambling to catch up with employees’ desires.

Deloitte University Press | dupress.deloitte.com

Length of career Average tenure in a job Half-life of a learned skill

60 to 70 years 4.5 years 5 years

Figure 1. The changing nature of a career

Sources: Lynda Gratton and Andrew Scott, The 100-Year Life: Living and Working in an Age of Longevity (Bloomsbury, 2016); Douglas Thomas and John Seely Brown, A New Culture of Learning: Cultivating the Imagination for a World of Constant Change (CreateSpace, January 4, 2011).

NEW TOOLS ARE LEAVING BEHIND TRADITIONAL LMS

- -

Percentages by region:

Latin & South America

North America

Americas 86 80

Asia Oceania 88 79

Africa Central & Eastern Europe

Middle East Nordic countries

Western Europe

Europe, Middle East, and Africa 86 84 78 81 78

Italy 76

UK 84

Canada 78

Belgium 68

86 Netherlands

Spain 81

81 South Africa

USA 80

Mexico 82

87 Brazil 78 Australia

91 China

88 India

France 82

Germany 83 86 Japan

Figure 2. Careers and learning: Percentage of respondents rating this trend “important” or “very important”

Deloitte University Press | dupress.deloitte.com

Lower %Higher %

Percentages in selected countries:

Lower %Higher %

China

India

Brazil

Netherlands

Japan

United Kingdom

Germany

Mexico

France

Spain

South Africa

United States

Canada

Australia

Italy

Belgium

2017 Deloitte Global Human Capital Trends

Rewriting the rules for the digital age

THE NEW LOOK OF L&D

THE CHANGING ROLE OF L&D LEADERSHIP

11 - 12

Lessons from the front lines

- -

For business and HR leaders, the new models are a wake-

up call to adapt or risk falling behind in hiring, employee engagement,

productivity, and product innovation.

2017 Deloitte Global Human Capital Trends

Rewriting the rules for the digital age

FAST FORWARD

The impact of the fourth industrial revolution is fundamentally changing the nature of work and the meaning of career, and making it imperative to constantly refresh

create the environment and systems to allow employees to constantly learn and relearn. The explosion of free content means that the learning organization should seamlessly integrate internal and external content into its platforms.

Start here • Evaluate internal mobility:

- -

• Review the organization’s job architec- ture:

• Build a culture of hiring from within: -

• Track learning metrics: -

• Refocus the L&D team:

• Rethink the entire L&D technology infra- structure:

• Rethink the corporate university: - -

• Manage the employment brand: - -

Old rules New rules

Employees are told what to learn by their managers or the career model

Employees decide what to learn based on their

Careers go “up or out” Careers go in every direction

Managers direct careers for people leaders and others

Corporate L&D owns development and training Corporate L&D curates development and creates a useful learning experience

People learn in the classroom and, sometimes, online

People learn all the time, in micro-learning, courses, classrooms, and groups

The corporate university is a training center The corporate university is a “corporate commons,” bringing leaders and cross-functional groups together

Learning technology focuses on compliance and course catalog

Learning technology creates an always-on, collaborative, curated learning experience

Learning content is provided by L&D and experts Learning content is provided by everyone in the organization, and curated by employees as well as HR

Credentials are provided by universities and

through credentials

Credentials come in the form of “unbundled

many ways

2017 Deloitte Global Human Capital Trends

Rewriting the rules for the digital age

1. Lynda Gratton and Andrew Scott, The 100-Year Life: Living and Working in an Age of Longevity (Bloomsbury, 2016).

2. Bersin by Deloitte proprietary research with Glassdoor.

3. Christie Smith and Stephanie Turner, The Millennial majority is transforming your culture, Deloitte, 2016, pp. 1–15, https://www2.deloitte.com/content/dam/Deloitte/us/Documents/about-deloitte/us-millennial-majority-will- transform-your-culture.pdf, accessed December 21, 2016.

4. Dani Johnson, The career management framework, Bersin by Deloitte, 2016; Dani Johnson, Applying the career management framework, Bersin by Deloitte, 2016.

5. Gratton and Scott, The 100-Year Life.

6. Gerald C. Kane, Doug Palmer, Anh Nguyen Phillips, David Kiron, and Natasha Buckley, for its digital future, MIT Sloan Management Review and Deloitte University Press, July 25, 2016, https://dupress. deloitte.com/dup-us-en/topics/emerging-technologies/mit-smr-deloitte-digital-transformation-strategy.html.

7. GitHub, https://github.com/.

9. Stacey Harris and Erin Spencer, Sierra-Cedar 2016–2017 HR systems survey, 19th annual edition, Sierra-Cedar, 2016.

10. Thomas L. Friedman, Thank You for Being Late (Farrar, Straus & Giroux, 2016), pp. 213–219.

11. Harvard Business Review, October, 2016, https://hbr. org/2016/10/atts-talent-overhaul, accessed October 3, 2016.

12. Ibid.

13. Ibid.

14. Michael Quirk (provost, University of Southern California), in discussion with the authors, October 2016.

15. Ibid.

16. Dr. Erica Muhl (dean of the Roski School of Art and Design, University of Southern California), in discussion with the authors, fall 2016.

17. Executive conversations with the authors.

ENDNOTES

Bill Pelster, Deloitte Consulting LLP | [email protected]

Dani Johnson, Bersin by Deloitte, Deloitte Consulting LLP [email protected]

Dani Johnson has spent the majority of her career writing about, conducting research in, designing, and consulting on human capital practices. Johnson led the Human Resource Competency Study with the University of Michigan and six other professional organizations around the world, and co-authored the resulting book, HR Competencies: Mastery at the Intersection of People and Business (Society for Human Resource Management, 2008).

Jen Stempel, Deloitte Consulting LLP | [email protected]

Jen Stempel has more than 20 years of experience in corporate learning. She leads Deloitte’s Americas Learning Solutions practice and the US Learning Advisory practice, working with large, complex, global companies to help them optimize their learning functions and realize

and business strategy alignment. Stempel is a frequent writer and speaker on learning and talent topics.

Bernard van der Vyver, Deloitte Consulting BV | [email protected]

Bernard van der Vyver is a leading advisor on human capital matters, focusing on learning

AUTHORS

CONTRIBUTORS Jason Galea, Greg Stoskopf

2017 Deloitte Global Human Capital Trends

Rewriting the rules for the digital age

Talent sourcing and recruitment face tremendous pressure. Talent and skill short- ages are widespread. Employees are demanding new careers and career models. And

- laboration, crowds, and the sharing economy—are reshaping the workforce. Leading companies are turning the open talent economy into an opportunity by embracing

balance-sheet talent sources.

• Attracting skilled resources is no longer simply the responsibility of HR. It now stands as a top concern of business leaders, ranking third in our survey this year.

• very important.

Talent acquisition

FINDING -

BUILDING A STRATEGIC AND DIGITAL EMPLOYMENT BRAND

- -

2017 Deloitte Global Human Capital Trends

Rewriting the rules for the digital age

LEVERAGING NEW TECHNOLOGIES— FROM SOCIAL TO COGNITIVE

- 3

- - -

Percentages by region:

Latin & South America

North America

Americas 83 81

Asia Oceania 87 70

Africa Central & Eastern Europe

Middle East Nordic countries

Western Europe

Europe, Middle East, and Africa 84 81 82 75 78

Italy 79

UK 87

Canada 79

Belgium 70

81 Netherlands

Spain 83

81 South Africa

USA 82

Mexico 80

79 Brazil 70 Australia

84 China

89 India

France 75

Germany 77

83 Japan

Figure 1. Talent acquisition: Percentage of respondents rating this trend “important” or “very important”

Deloitte University Press | dupress.deloitte.com

Lower %Higher %

Percentages in selected countries:

Lower %Higher %

India

United Kingdom

China

Japan

Spain

United States

South Africa

Netherlands

Mexico

Italy

Brazil

Canada

Germany

France

Australia

Belgium

- -

USING VIDEO AS A TOOL FOR A COMPELLING CANDIDATE EXPERIENCE

- -

Deloitte University Press | dupress.deloitte.com

71% 23% 6% Using games and simulations to attract

and assess potential candidates

Weak ExcellentAdequate

Percentage of total responses

Figure 2. Respondents’ ratings of their ability to use games and simulations to attract and assess potential candidates

2017 Deloitte Global Human Capital Trends

Rewriting the rules for the digital age

FROM CREDENTIALS TO SKILLS

- -

- 11

- -

OPTIMIZING SOURCING CHANNELS

In the open talent economy, technology allows talent to move

more freely than before—from role to

role, within and outside the enterprise, and

across organizational and geographic

boundaries.

- -

OPTIMIZING THE TALENT ACQUISITION OPERATING MODEL

Lessons from the front lines -

Deloitte University Press | dupress.deloitte.com

Managing contingent, outsourced, contracted, and part-time sources of labor

Understanding emerging skills and critical capability gaps

Managing gig and talent-sharing economy resources

Managing crowdsourcing as part of the organization’s workforce and talent

programs

25% 57% 19%

53% 39% 9%

59% 33% 8%

Percentage of total responses

Weak ExcellentAdequate

14%62%24%

Figure 3. Respondent ratings of sub-capabilities related to talent acquisition

2017 Deloitte Global Human Capital Trends

Rewriting the rules for the digital age

- -

Start here • Leverage new technologies:

Given the expense, corporate HR is the most likely choice to invest in the talent

acquisition products that can make the

company stand out.

• Build a digital employment brand: - - -

• Create a compelling candidate experi- ence:

• Broaden and expand sourcing channels:

• Integrate sourcing: -

2017 Deloitte Global Human Capital Trends

Rewriting the rules for the digital age

Figure 4. Talent acquisition: Old rules vs. new rules

Old rules New rules

Recruiters continuously expand their use of social media sites for sourcing, including Twitter, Facebook, Glassdoor, Pinterest, and Quora, in addition to LinkedIn

Employment brand is viewed as a marketing strategy Employment brand has a complete strategy, reaching into all possible candidate pools and channels

Recruiters run the recruiting process Recruiters partner with hiring managers throughout the search process, leveraging their networks, cultural needs, and success criteria

Job descriptions communicate what the organization demands from the potential employee

Job descriptions focus on the needs of the candidates—a tactic that yields three times as many highly rated applicants*

An applicant tracking system is the only required talent acquisition technology

Companies have talent acquisition technology platforms that manage sourcing, video interviewing, interview management, candidate relationship management, and onboarding

for the enterprise

The candidate and hiring manager are front and center in talent acquisition processes, tailoring the candidate experience around the moments that matter in the talent acquisition journey with the organization

* Andre Lavoie, “How to attract the best talent with your job descriptions,” Aberdeen Essentials, September 25, 2015, www.aberdeenessentials.com/hcm-essentials/how-to-attract-the-best-talent-with-your-job-descriptions/.

FAST FORWARD

Accelerating digital, video, and cognitive technologies and ever-increasing transparency

continuing to focus on sourcing and selection, recruiters are now relationship builders and managers. They are looking to enable a positive candidate experience for new employees—a task that requires both new responsibilities and new skills.

Savvy recruiters will continue to embrace new TA technologies and hone their relationship-building skills. Indeed, this is the promise of cognitive recruiting. As AI and other technologies take over the basic, time-consuming tasks of sourcing candidates, human jobs will shift. A recruiter in this new world can add value by building psychological and emotional connections with candidates and constantly strengthening the employment brand.

1. AdWeek,

2. Robin Erickson and Denise Moulton, Reimagining talent attraction: Dell transforms its employment brand by going social, Bersin by Deloitte, November 9, 2016, http://bersinone.bersin.com/resources/research/?docid=20355.

3. Katherine Jones, Buyer’s guide to talent acquisition management and onboarding solutions 2013, Bersin by Deloitte, July 2013, www.bersin.com/Practice/Detail.aspx?docid=16724.

4. ATC Events and Media, “Chat bot interviews recruiter, recruiter gets smitten,” November 25, 2016, http://atchub. net/news/chat-bot-interviews-recruiter-recruiter-gets-smitten/.

5. Jonathan Nicholson (cofounder and managing director, PredictiveHire), in discussion with Robin Erickson, De- cember 5, 2016.

6. Richard George, “Interview: How SAP is using cartoons, video games and more to change recruiting standards,” LinkedIn, September 19, 2016, https://business.linkedin.com/talent-solutions/blog/recruiting-strategy/2016/ interview-how-sap-is-using-cartoons-video-games-and-more-to-change-recruiting-standards.

7. PeopleScout, Innovative sourcing strategies for mastering the talent landscape: It’s a marathon, not a sprint, 2015, http://www.peoplescout.com/innovative-sourcing-strategies-for-mastering-the-talent-landscape/, accessed Feb- ruary 12, 2017.

PR Newswire, “HireVue honors IBM, Hilton Worldwide, Vodafone, and ten other customers with 3rd annual ‘Digi-

hirevue-honors-ibm-hilton-worldwide-vodafone-and-ten-other-customers-with-3rd-annual-digital-disruptor-

9. Curt Rice, “How blind auditions help orchestras to eliminate gender bias,” Guardian, October 14, 2013, www. theguardian.com/women-in-leadership/2013/oct/14/blind-auditions-orchestras-gender-bias.

10. 31, 2017.

11. Robin Erickson, From the armed forces to the workforce: Why veteran hiring is both the right thing to do & a smart move to make, Bersin by Deloitte, May 2015, http://marketing.bersin.com/veteran-hiring.html.

12. Lisa Smith-Strother, “The role of social advocacy in diversity & inclusion recruiting,” presented at Glassdoor Sum- mit, September 13, 2016, https://youtu.be/IdsqQMV4V_0.

13. Robin Erickson, Strategic talent sourcing: Improve blend of high-quality channels (part I), Bersin by Deloitte, 2017.

14. Talent Tech Labs, “Talent acquisition ecosystem #5,” https://talenttechlabs.com/ecosystem/, accessed December 16, 2016.

15. news/news-and-features/2016/game-on-our-graduate-recruitment-drives-gone-digital.html.

16. Ibid.

17. Erickson, Strategic talent sourcing

ENDNOTES

2017 Deloitte Global Human Capital Trends

Rewriting the rules for the digital age

Michael Stephan, Deloitte Consulting LLP | [email protected]

Michael Stephan is the global leader for Deloitte’s HR Transformation practice. He develops and integrates HR service delivery models across the operations and technology spectrum, with a focus on optimizing HR service delivery around the world. His global consulting experience includes HR strategy, HR operating model design and implementation, HR business process outsourcing (BPO), global technology deployment, and enterprise transition management.

David Brown, Deloitte Touche Tohmatsu | [email protected]

David Brown leads the Human Capital practice in Australia. He has over 30 years’ experience in the human capital space in both corporate HR and advisory roles, including considerable

specializes in HR strategy and execution, strategic change, workforce productivity and engagement, and talent management and development.

Robin Erickson, Bersin by Deloitte, Deloitte Consulting LLP | [email protected]

she draws on her deep experience in talent strategies consulting and related research for

in organizational communication and change, a master’s degree in communication from Northwestern University, a master’s degree in theology from Northern Seminary, and a bachelor of arts degree from the University of Chicago.

AUTHORS

Rewriting the rules for the digital age

Millennials, employees expect a productive, engaging, enjoyable work experience. Rather than focus narrowly on employee engagement and culture, organizations are developing an integrated focus on the entire employee experience, bringing together all the workplace, HR, and management practices that impact people on the job. A

employee self-service tools is helping HR departments understand and improve this experience. Through new approaches such as design thinking and employee journey maps, HR departments are now focusing on understanding and improving this com- plete experience and using tools such as employee net promoter scores to measure employee satisfaction.1

• Organizational culture, engagement, and employee brand proposition remain top priorities in 2017; employee experience ranks as a major trend again this year.

• -

• Fifty-nine percent of survey respondents reported they were not ready or only somewhat ready to address the employee experience challenge.

The employee experience Culture, engagement, and beyond

A PRODUCTIVE,

- -

Global Human Capital Trends

2017 Deloitte Global Human Capital Trends

Rewriting the rules for the digital age

Change

Helping employees balance personal and professional life/work demands 23% 19% 21% better

Aligning employees and personal goals with corporate purpose 24% 23% 4% better

Providing programs for younger, older, and a multi-generational workforce

11% 11% Flat

Understanding and using design thinking as part of the employee experience

10% 13% 23% worse

Percentages by region:

Latin & South America

North America

Americas 85 84

Asia Oceania 85 85

Africa Central & Eastern Europe

Middle East Nordic countries

Western Europe

Europe, Middle East, and Africa 82 77 77 69 71

Italy 79

UK 84

Canada 80

Belgium 63

76 Netherlands

Spain 77

83 South Africa

USA 85

Mexico 83

93 Brazil 85 Australia

88 China

89 India

France 64

Germany 70

75 Japan

Figure 2. Employee experience: Percentage of respondents rating this trend “important” or “very important”

Deloitte University Press | dupress.deloitte.com

Lower %Higher %

Percentages in selected countries:

Lower %Higher %

Brazil

India

China

United States

Australia

United Kingdom

Mexico

South Africa

Canada

Italy

Spain

Netherlands

Japan

Germany

France

Belgium

- -

• -

•

• -

•

A GROWING CHALLENGE

- -

Deloitte University Press | dupress.deloitte.com

Understanding and using design thinking as part of the employee experience

Using design thinking in developing HR and talent programs

Providing programs for younger, older, and a multi-generational workforce

Considering diverse employee preferences when designing work

employee experience brand

Aligning employees and personal goals with corporate purpose

Helping employees balance personal and professional life/work demands

Integrating social, community, and corporate programs

Weak ExcellentAdequate

39% 12%49%

38% 13%49%

48% 10%42%

46% 11%43%

23% 23%54%

25% 23%52%

22% 22%57%

22% 23%55%

Figure 3. Respondent ratings of sub-capabilities related to employee experience

Percentage of total responses

2017 Deloitte Global Human Capital Trends

Rewriting the rules for the digital age

THE GROWING NEED FOR A HOLISTIC SOLUTION

- - -

Companies need a new approach—one that builds on the foundation of culture and engagement to

focus on the employee experience holistically, considering all the contributors to worker

satisfaction, engagement, wellness, and alignment.

GETTING THE DESIGN AND DELIVERY RIGHT

FOCUS ON EMPLOYEE FEEDBACK IS IMPROVING, BUT NOT FAST ENOUGH

- -

Figure 4. Factors that contribute to a positive employee experience

Simply Irresistible OrganizationTM model

Meaningful work Supportive management Positive work environment

Growth opportunity

Trust in leadership

Autonomy Clear and transparent goals Flexible work environment

Training and support on the job

Mission and purpose

Coaching Humanistic workplace Facilitated talent

mobility

Continuous investment in

people

Small, empowered teams

Investment in development of

managers

Culture of recognition

Self-directed, dynamic learning

Transparency and honesty

Time for slack Agile performance management

Fair, inclusive, diverse work environment

High-impact learning culture Inspiration

Cross-organization collaboration and communication

2017 Deloitte Global Human Capital Trends

Rewriting the rules for the digital age

- -

• Productivity and collaboration apps:

- -

• Engagement and feedback apps:

• Performance management apps: -

• Well-being apps: - - -

• Employee service platforms: - -

THE CENTRALITY OF THE EMPLOYEE EXPERIENCE

High-performing companies have found ways to

enrich the employee experience, leading to purposeful, productive,

meaningful work.

- 9

- -

12 - 13

14 15 -

Lessons from the front lines

19 -

- -

2017 Deloitte Global Human Capital Trends

Rewriting the rules for the digital age

- -

By focusing on the employee experience,

HR leaders can improve employee

engagement, empower teams and leaders,

and develop workforce solutions that will be

useful and compelling to employees.

Start here • Elevate the employee experience and

make it a priority: -

• Designate a senior leader or team to own it:

• Embrace design thinking:

- -

• Consider experiences for the entire work- force: -

• Look outside: -

- -

• Enlist C-suite and team leader support:

• Consider the impact of geography: - -

• Measure it:

2017 Deloitte Global Human Capital Trends

Rewriting the rules for the digital age

Old rules New rules

surveys life at work, requiring constant feedback, action, and monitoring

Culture is a topic on the company website and

through behavior

Company uses tools and behaviors to measure, align, and improve culture during change, M&A, and other major initiatives

Companies have a series of HR leaders across recruiting, learning, rewards, engagement, and other HR services

Companies have someone responsible for the complete employee experience, focused on employee journeys, experiences, engagement, and culture

with a focus on benchmarking and fairness

Wellness and health programs are focused on safety and managing insurance costs

Companies have an integrated program for employee well-being focused on the employee, her family, and her entire experience at life and work

Rewards are designed to cover salary, overtime,

programs

Employee self-service is viewed as a technology platform that makes it easy to complete HR transactions and reports

The employee experience platform is designed, mobile, and includes digital apps, prescriptive solutions based on employee journeys, and ongoing communications that support and inspire employees

FAST FORWARD

increasing transparency (“What does Glassdoor say about us?”), and the rising demand for talented professionals and workers with fast-changing skills, employee experience will become an increasingly important dimension of competing for and engaging your workforce. Employee brand and reputation—the story that employees in the

through net promoter tools, social media monitoring, and customer segmentation, so will HR rigorously monitor the health and productivity of its employees. Real-time feedback tools will explode as pulse surveys and always-on feedback systems become

the experience of contractors, contingent, and gig workers too.

1. Wikipedia, “NetPromoter,” https://en.wikipedia.org/wiki/Net_Promoter. NetPromoter asks a simple question: “On a scale of zero to ten, how likely is it you would recommend this company as a place to work?” Using this question, organizations can sort employees into promoters, passives, and detractors, similar to the identical question used widely with customers.

2. Josh Bersin, “Becoming irresistible: A new model for employee engagement,” Deloitte Review 16, January 26, 2015, https://dupress.deloitte.com/dup-us-en/deloitte-review/issue-16/employee-engagement-strategies.html.

3. Bersin by Deloitte proprietary research with Glassdoor.

4. Business Insider

5. Deloitte and Facebook, “Transitioning to the future of work and the workplace,” November 2016.

6. Bureau of Labor Statistics, “Overview of BLS productivity stats,” www.bls.gov/bls/productivity.htm, accessed December 21, 2016.

7. The state of American vacation 2016: How vacation became a casualty of our work culture, p. 6,

Jeanne Meister, “Cisco HR breakathon: Reimagining the employee experience,” Forbes, March 10, 2016, www. forbes.com/sites/jeannemeister/2016/03/10/the-cisco-hr-breakathon/.

9. Executive conversations with authors.

10. Ben Whitter, “Bye, bye, human resources,” LinkedIn, July 27, 2015, www.linkedin.com/pulse/bye-human-

11. Executive conversations with authors.

12. Washington Post, November 30, 2015, http://wpo.st/93cX2.

13. Executive conversations with authors.

14. Gensler, Workplace_Survey_07_15_2013.pdf, accessed December 21, 2016.

15. Steelcase, Boosting employee engagement, November 12, 2014, www.steelcase.com/insights/articles/boosting- employee-engagement-place-matters/.

16. Leesman, Leesman_review

17. Creative Bloq, February 19, 2016, www.creative- Work en-

vironment redesign: Accelerate performance through talent, Deloitte University Press, June 3, 2013, https://dupress. deloitte.com/dup-us-en/topics/talent/work-environment-redesign.html.

Fordpass, “Home,” www.fordpass.com/, accessed January 30, 2017.

19. Fortune, January 12, 2016, http://for.tn/1mStuQp.

20. Conversations with Ford senior management, November 2016.

ENDNOTES

2017 Deloitte Global Human Capital Trends

Rewriting the rules for the digital age

Josh Bersin, Bersin by Deloitte, Deloitte Consulting LLP | [email protected]

Jason Flynn, Deloitte Consulting LLP |

Jason Flynn leads Deloitte’s global Rewards practice. He has more than 20 years of consulting experience, helping multinational organizations design, deliver, communicate, and manage total rewards programs to support their business and talent strategies. Flynn’s broader HR consulting experience includes supporting talent management, HR transformation, and other human capital initiatives.

Art Mazor, Deloitte Consulting LLP | [email protected]

Art Mazor is Deloitte’s global leader for HR Service Delivery and a thought leader in HR transformation strategy. He collaborates with global clients to achieve business impact with a focus on transforming human capital strategies, programs, and services. With a balance of strategic planning, operating model and organization design, process transformation, technology deployment, governance, and change management, Mazor helps generate tangible results through innovative and pragmatic solutions.

Verónica Melián, Deloitte SC | [email protected]

Verónica Melián is the Human Capital practice leader for Deloitte LATCO and the global leader of Deloitte’s Culture practice. She has more than 20 years of consulting experience, specializing in large-scale global transformation projects. Melián’s work focuses primarily on culture change, leadership alignment, communication, HR, and talent strategies.

AUTHORS

CONTRIBUTORS David Brown, Alyson Daichendt, Robin Erickson, David Mallon, Yves van Durme

Rewriting the rules for the digital age

evaluate, and recognize employee performance. Today, with much initial experimen- tation, continuous performance management practices are being deployed on a wide scale. While not all the tools are in place at every organization, the new practices are

management, check-ins, and continuous feedback are becoming common, and new models of evaluation and rewards are being adopted next.

• The redesign of performance management is picking up speed: 79 percent of ex-

calling the problem “very important.”

• Company capabilities to implement performance management have improved. Our research shows organizations are 10 percent more capable than they were in 2015, and most are heavily focused on retraining leaders to implement agile, developmental management approaches.

• The impact of these new performance practices is high: 90 percent of companies that have redesigned performance management see direct improvements in en-

the quality of conversations between employees and managers going up.1

Performance management Play a winning hand

THE -- AS WORK SHIFTS, SO DOES PM - Global Human Capital Trends

2017 Deloitte Global Human Capital Trends

Rewriting the rules for the digital age

- - -

3 4

• -

Global Human

Capital Trends 2016 -

• -

•

Percentages by region:

Latin & South America

North America

Americas 86 74

Asia Oceania 86 73

Africa Central & Eastern Europe

Middle East Nordic countries

Western Europe

Europe, Middle East, and Africa 85 80 85 67 71

Italy 78

UK 77

Canada 71

Belgium 61

79 Netherlands

Spain 82

80 South Africa

USA 75

Mexico 86

87 Brazil 71 Australia

85 China

91 India

France 64

Germany 73

80 Japan

Figure 1. Performance management: Percentage of respondents rating this trend “important” or “very important”

Deloitte University Press | dupress.deloitte.com

Lower %Higher %

Percentages in selected countries:

Lower %Higher %

India

Brazil

Mexico

China

Spain

Japan

South Africa

Netherlands

Italy

United Kingdom

United States

Germany

Canada

Australia

France

Belgium

• -

- -

about people to with

TEAM EFFECTIVENESS, DEVELOPMENT, COLLABORATION, AND INDIVIDUAL PERFORMANCE

- 12

The focus has shifted from talking about people to talking

with people in open conversations.

2017 Deloitte Global Human Capital Trends

Rewriting the rules for the digital age

- -

THE PROMISE AND USES OF BETTER DATA

THE CHALLENGES OF NEW PM MODELS

- -

Finding the right solution takes time and commitment.

- -

SOFTWARE LEADING IN A NEW DIRECTION

• Enabling goal making to be more so- cial and transparent, mobile, and digi- tal:

• Enabling easy progress tracking:

• Providing continuous feedback: -

• Providing instant information: -

• Deploying data/analytics: -

• Supporting career development:

•

- -

2017 Deloitte Global Human Capital Trends

Rewriting the rules for the digital age

Lessons from the front lines

- -

Start here • Identify a strategy and philosophy for

PM:

• Look to peers: - - -

• See what is working: - -

• Tailor PM to strategic and organizational needs:

• Upskill managers in coaching skills: - -

• Put it all together:

FAST FORWARD

In the future, leading companies will create a continuous, highly agile process among employees and teams, as well as among employees and leaders. Many will take advantage of new software tools that integrate PM into daily work and use the greater quantity and richer quality of data now available. The dreaded end-of-year

and managers.

These changes are not merely new processes, but rather new organizational muscles. As such, they will take time to develop and need constant exercise to maintain. But

stages of transformation become more natural over time. As trust grows, feedback becomes more direct and constructive, and changes are accepted.

2017 Deloitte Global Human Capital Trends

Rewriting the rules for the digital age

Old rules New rules

Performance appraisals and goal-setting conducted once per year

Check-ins conducted quarterly or more frequently; regular goal-setting occurs in an open, collaborative process

Feedback collected by manager at end of year Feedback collected continuously and easily reviewed at end of year (often through apps and mobile tools)

achievement Goals made public and transparent with increased focus on team achievement

Employees evaluated by their manager Managers also evaluated by their employees

Employees force-ranked on a quantitative scale Employees rated on a qualitative scale; rankings considered, not forced

equity; bands based on performance ratings

Compensation levels more transparent, more frequently discussed, and focused more on pay for performance than on equity

Managers focused on evaluating performance Managers focused on coaching and developing people

One leader evaluates each individual in a qualitative, opinion-based process evaluation; evaluation draws heavily on data

Process considered to be a burden and waste of time Process is agile, faster, continuous, and lighter

1. David Rock, Beth Jones, and Camille Inge, Reengineering performance management: How companies are evolving PM beyond ratings, NeuroLeadership Institute, 2015.

2. after all,” Personnel Psychology 63, no. 1 (spring 2010): pp. 119–151.

3. now,” 2017 Deloitte Global Human Capital Trends: Rewriting the rules for the digital age, Deloitte University Press, February 27, 2017.

4. Bill Pelster, Dani Johnson, Jen Stempel, and Bernard van der Vyver, “Careers and learning: Real time, all the time,” 2017 Deloitte Global Human Capital Trends: Rewriting the rules for the digital age, Deloitte University Press, February 27, 2017.

5. augmented workforce,” 2017 Deloitte Global Human Capital Trends: Rewriting the rules for the digital age, Deloitte University Press, February 27, 2017.

6. rise of teams,” in , Deloitte University Press, February 29, 2016.

7. Schwartz et al., “Careers and learning: Real time, all the time.”

Rock et al., Is transforming performance management worth it?

9. Executive conversations with the authors.

10. Executive conversations with the authors.

11. Amy Berg (Adidas), in discussion with the authors, November 2016.

12. Executive conversations with the authors.

13. GE executives, in discussion with the authors, January 2017.

14. Janice Semper (GE), in discussion with the authors, August 2016.

15. Amy Berg (Adidas), in discussion with the authors, November 2016.

16. Rock et al., Is transforming performance management worth it?

17. Josh Bersin, HR technology in 2017: Disruption ahead, Bersin by Deloitte, October 4, 2016, http://joshbersin. com/2016/10/hr-technology-in-2017-disruption-ahead/. OKR (Objective and Key Results) is a goal-setting ap- proach originally developed at Intel. Also see Josh Bersin, “Becoming irresistible: A new model for employee engagement,” Deloitte Review 16, Deloitte University Press, January 26, 2015, https://dupress.deloitte.com/dup- us-en/deloitte-review/issue-16/employee-engagement-strategies.html.

Patagonia senior management, in discussion with the authors, November 2016.

19. Angela Szymusiak (senior talent development partner, Adobe), in discussion with the authors, December 2016.

ENDNOTES

2017 Deloitte Global Human Capital Trends

Rewriting the rules for the digital age

Nathan Sloan, Deloitte Consulting LLP | [email protected]

States, and oversees the US Organization Strategies, Talent Strategies, Strategic Change, and Functional Transformation practice areas. He works with global companies to determine the organizational structures, talent programs, and HR priorities required to implement their business strategies. He is also the US Human Capital leader for Retail and Wholesale Distribution.

Dimple Agarwal, Deloitte MCS Limited | [email protected]

Dimple Agarwal is the global leader of Organization Transformation and Talent for the Human Capital practice. She consults at the C-suite level on operating model and organizational design, HR and talent strategies, leadership strategies and development, merger integration, and major transformation programs. Her 20-plus years of consulting experience includes work in the United Kingdom, Netherlands, France, Switzerland, India,

Stacia Sherman Garr, Bersin by Deloitte, Deloitte Consulting LLP [email protected]

Stacia Sherman Garr is responsible for research on human resources, talent strategy, integrated talent management, performance management, career management, diversity and inclusion, employee recognition, competencies, and workforce planning. Garr holds an MBA from the University of California, Berkeley, a master’s degree from the London School

Woman’s College.

Karen Pastakia, Deloitte Canada | [email protected]

Karen Pastakia has more than 20 years’ experience in HR and talent consulting. Currently, she leads Deloitte’s Human Capital practice in Toronto. She works with clients to ensure alignment between their HR and talent objectives and investments and the overall business strategy. Pastakia is also one of Deloitte Canada’s marketplace inclusion leaders and has been intimately involved in the evolution of Deloitte University globally.

AUTHORS

CONTRIBUTORS Maren Hauptmann

Rewriting the rules for the digital age

around the world, as the transition to the new digital organization creates even larger

than in generations past, yet most organizations have not moved rapidly enough to develop digital leaders, promote young leaders, and build new leadership models.

• The leadership gap has become larger; organizational capabilities to address lead- ership dropped by 2 percent.

• Forty-two percent of companies cite “leadership development” as very important.

• The percentage of companies with strong or adequate experiential programs for leaders rose by 2 percent this year.

Leadership disrupted Pushing the boundaries

AS -

- -

- - -

- -

2017 Deloitte Global Human Capital Trends

Rewriting the rules for the digital age

- -

DEMOGRAPHICS AND LEADERSHIP DESTINY

Percentages by region:

Latin & South America

North America

Americas 81 74

Asia Oceania 85 76

Africa Central & Eastern Europe

Middle East Nordic countries

Western Europe

Europe, Middle East, and Africa 78 73 78 79 74

Italy 79

UK 78

Canada 79

Belgium 64

83 Netherlands

Spain 78

76 South Africa

USA 72

Mexico 78

95 Brazil 73 Australia

86 China

86 India

France 65

Germany 86 78 Japan

Figure 1. Leadership: Percentage of respondents rating this trend “important” or “very important”

Deloitte University Press | dupress.deloitte.com

Lower %Higher %

Percentages in selected countries:

Lower %Higher %

Germany

China

India

Netherlands

Brazil

Canada

Italy

Japan

Spain

United Kingdom

Mexico

South Africa

Australia

United States

France

Belgium

- -

and 5

THE DIGITAL LEADER

Global Human Capital Trends -

their organizations succeed in a digital world

Cognitive transformation Behavioral transformation Emotional transformation

Conceptualizing possibilities in a virtual world

Adapting to constantly shifting Tolerating an environment of risk and ambiguity

Handling ever-increasing cognitive complexity

Collaborating with ease across Showing resilience in the face of constant change

Thinking divergently about new ways of doing things

Valuing the contribution of new

interest groups

Being brave in challenging how things are being done

Making decisions quickly without all of the information

Investing huge amounts of energy into getting things right; try, fail,

try again lead in driving change

2017 Deloitte Global Human Capital Trends

Rewriting the rules for the digital age

DIGITAL LEADERS: A FIELD GUIDE

• Cognitive transformation: think

• Behavioral transformation: to act

• Emotional transformation: to react

- -

• Digital investors: -

• Digital pioneers: -

• Digital transformers: - -

Getting there is hard. Our research on digital leadership, based on studies done with MIT,

shows a shift in leadership capabilities in three areas: how leaders must think, how leaders

must act, and how leaders must react.

- -

- - -

- -

Lessons from the front lines

- -

Start here • Rethink the organization’s leadership

model: -

• Identify the likely digital leaders in the organization: -

• Ensure accountability:

• Promote younger people into leadership much faster:

2017 Deloitte Global Human Capital Trends

Rewriting the rules for the digital age

• Foster risk-taking and experimentation through leadership strategy:

FAST FORWARD

Great leaders have always been expected to succeed in the context of ambiguity. Now, they face even greater pressures as the speed of technology accelerates. The role that leaders play will continue to change, becoming even more digital-focused and team- centric. A focus on organizational practice, including culture and organizational design, will become an ever-more important part of leadership development. Despite this more challenging environment, leaders will be asked to execute at a higher level—and ensure that their organizations do not lag behind in the digital transformation.

• Move beyond traditional leadership training: -

Old rules New rules

experience, tenure, and business performance Leaders are assessed early in their careers for agility, creativity, and ability to lead and connect teams

Leaders must “pay their dues” to work their way up the leadership pipeline responsibility to test and develop their leadership skills

Leaders are expected to know what to do and bring judgment and experience to new business challenges

Leaders are expected to innovate, collaborate, and use client teams, crowdsourcing, and hackathons to

Leadership development focuses on assessments, training, coaching, and 360-degree development programs

Leadership development focuses on culture, context, knowledge-sharing, risk-taking, and exposure to others

Leaders are assessed and developed based on behavior and style

Leaders are assessed and developed based on thinking patterns and problem-solving ability

Leaders are developed through training and professional development programs

Leaders are developed through simulation, problem solving, and real-world projects

Diversity of leadership is considered a goal and important benchmark to measure

Leaders are assessed and trained to understand unconscious bias, inclusion, and diversity in their role

is sacrosanct in the organization Leadership is considered a role that all play; everyone has opportunities to become a leader

Leaders lead organizations and functions Leaders lead teams, projects, and networks of teams

2017 Deloitte Global Human Capital Trends

Rewriting the rules for the digital age

1. Korn Ferry, “Korn Ferry global study: Majority of CEOs see more value in technology than their workforce,” BusinessWire, September 17, 2016, http://www.businesswire.com/news/home/20161117006293/en/Korn-Ferry- Global-Study-Majority-CEOs-Technology, accessed December 21, 2016.

2. Executive conversations with authors.

3. Executive conversations with authors.

4. BrainyQuote, “Mark Zuckerberg Quotes,” https://www.brainyquote.com/quotes/quotes/m/markzucker453450. html, January 17, 2017.

5. Andrea Derler, High-impact leadership: The new leadership maturity model, Bersin by Deloitte, 2016, http://www.

6. Deloitte, , 2016.

7. Deloitte, The 2016 Deloitte Millennial Survey, p. 6.

Derler, High-impact leadership.

9. Gerald Kane et al., Strategy, not technology, drives digital transformation, MIT Sloan Management Review and Deloitte University Press, 2015, https://dupress.deloitte.com/content/dam/dup-us-en/articles/digital-transfor- mation-strategy-digitally-mature/15-MIT-DD-Strategy_small.pdf, accessed December 21, 2016.

ENDNOTES

Anthony Abbatiello, Deloitte Consulting LLP | [email protected]

Anthony Abbatiello is the global leader of Deloitte’s Leadership practice. He specializes in leadership strategy and development, succession management, and HR/talent strategy. Abbatiello has led industry and functional human capital practices and is a respected global thought leader as a SHRM Trendsetter and a resident talent blogger for . He advises senior global clients on executive readiness, transformational leadership, and building future leadership pipelines.

Margorie Knight, Deloitte MCS Limited | [email protected]

Marjorie Knight was the co-founder and chairman of Kaisen Consulting, a boutique global leadership consultancy acquired by Deloitte in 2015. As a seasoned business psychologist, she specializes in the assessment, coaching, and development of C-suite leaders and high potentials and in supporting organizations with succession planning. Based in the United Kingdom, Knight has over 25 years’ experience working with leaders in more than 25 countries across a wide range of sectors.

Stacey Philpot, Deloitte Consulting LLP | [email protected]

Stacey Philpot is a principal with Deloitte’s Leadership practice. She specializes in implementing cutting-edge programs and processes that help senior executives lead, innovate, and adapt to volatile markets and changing industries. As an organizational psychologist, her areas of expertise are leadership development, succession planning, and talent strategy implementation. Philpot is the author of several book chapters and articles and a frequent speaker on women’s leadership topics.

Indranil Roy, Deloitte Consulting Pte Ltd | [email protected]

advisor on innovation and digital, leadership, strategy, organization, and culture. He has

India, Korea, the United Kingdom, and the United States across a wide range of sectors,

AUTHORS

CONTRIBUTORS John Crump, Andrea Derler, Karen Pastakia, Mohinish Sinha

2017 Deloitte Global Human Capital Trends

Rewriting the rules for the digital age

HR is undergoing rapid and profound change. Once viewed as a support function that delivered employee services, HR is now being asked to help lead the digital transformation sweeping organizations worldwide. We see this change taking place in three areas:

• Digital workforce: How can organizations drive new management practices (which we call “digital DNA”1), a culture of innovation and sharing, and a set of tal- ent practices that facilitate a new network-based organization?2

• Digital workplace: How can organizations design a working environment that enables productivity; uses modern communication tools (such as Slack, Work- place by Facebook, Microsoft Teams, and many others); and promotes engage- ment, wellness, and a sense of purpose?

• Digital HR: How can organizations change the HR function itself to operate in a digital way, use digital tools and apps to deliver solutions, and continuously ex- periment and innovate?

This shift is happening rapidly, as HR leaders are being pushed to take on a larger role in helping to drive the organization to “be digital,” not just “do digital.”

• Fifty-six percent of companies we surveyed this year are redesigning their HR programs to leverage digital and mobile tools.

• Fifty-one percent of companies are currently in the process of redesigning their organizations for digital business models.

• - gence (AI) technology to deliver HR solutions, and 41 percent are actively building mobile apps to deliver HR services.

Digital HR Platforms, people, and work

2017 Deloitte Global Human Capital Trends

Rewriting the rules for the digital age

OVER

- -

Percentages by region:

Latin & South America

North America

Americas 81 65

Asia Oceania 79 67

Africa Central & Eastern Europe

Middle East Nordic countries

Western Europe

Europe, Middle East, and Africa 79 69 76 72 67

Italy 74

UK 67

Canada 63

Belgium 61

75 Netherlands

Spain 73

74 South Africa

USA 65

Mexico 79

82 Brazil 68 Australia

73 China

87 India

France 63

Germany 75

64 Japan

Figure 1. Digital HR: Percentage of respondents rating this trend “important” or “very important”

Deloitte University Press | dupress.deloitte.com

Lower %Higher %

Percentages in selected countries:

Lower %Higher %

India

Brazil

Mexico

Germany

Netherlands

South Africa

Italy

China

Spain

Australia

United Kingdom

United States

Japan

Canada

France

Belgium

REWRITING THE RULES FOR DIGITAL HR

- -

As companies become networks and the employee

base becomes both older and younger,

new approaches are needed in almost every HR domain.

2017 Deloitte Global Human Capital Trends

Rewriting the rules for the digital age

NEWS TOOLS AND EXPANDED TRANSPARENCY FACILITATE DIGITAL HR

• -

•

• - -

•

12 -

Lessons from the front lines

- 14

- - -

Start here • -

• Upgrade core technology:

• Develop a multiyear HR technology strat- egy: -

• Build a digital HR team:

• Organize HR into networks of expertise with strong business partners:

• Make innovation a core strategy within HR:

• Rotate younger people into the HR pro- fession: -

• Benchmark:

2017 Deloitte Global Human Capital Trends

Rewriting the rules for the digital age

Old rules New rules

HR departments focus on process design and harmonization to create standard HR practices

HR departments focus on optimizing employee productivity, engagement, teamwork, and career growth

HR selects a cloud vendor and implements out-of- the-box practices to create scale develops apps, and leverages the platform for scale

HR technology teams focus on ERP implementation and integrated analytics, with a focus on “ease of use”

HR technology team moves beyond ERP to develop digital capabilities and mobile apps with a focus on

“productivity at work”

HR centers of excellence focus on process design and process excellence

HR centers of excellence leverage AI, chat, apps, and other advanced technologies to scale and empower employees

HR programs are designed for scale and consistency around the world

HR programs target employee segments, personae,

maps relevant to their jobs and careers

HR focuses on “self-service” as a way to scale services and support

HR focuses on “enablement” to help people get work

HR builds an employee “self-service portal” as a

transactional needs and programs

HR builds an integrated “employee experience platform” using digital apps, case management, AI, and bots to support ongoing employee needs

FAST FORWARD

HR has a critical opportunity to help lead the transformation to a digital enterprise. In the next several years, HR teams that embrace digital platforms to take up the dual challenge of transforming HR operations on the one hand, and transforming the workforce and the way work is done on the other, will be game changers. HR leaders who “lean into” new technologies, platforms, and ways of working, and who explore and invest in enabling agility through constant reinvention, will be strongly positioned to have an impact on business results and employee experience.

1. Deloitte LLP, Building your digital DNA, 2014, https://www2.deloitte.com/bh/en/pages/technology/articles/build- ing-your-digital-dna.html.

2. now,” Global Human Capital Trends 2017: Rewriting the rules for the digital age, Deloitte University Press, 2017, https://dupress.deloitte.com/dup-us-en/focus/human-capital-trends.html.

3. Executive conversations with the authors.

4. Josh Bersin, “The HR software market reinvents itself,” Forbes

5. Executive conversations with the authors.

6. Executive conversations with the authors.

7. David Mallon et al., , Bersin by Deloitte, July 24, 2014.

Michael Stephan, David Brown, and Robin Erickson, “Talent acquisition: Enter the cognitive recruiter,” Global Human Capital Trends 2017: Rewriting the rules for the digital age, Deloitte University Press, 2017, https://dupress. deloitte.com/dup-us-en/focus/human-capital-trends.html.

9. Wade and Wendy, http://wadeandwendy.ai/, accessed January 17, 2017.

10. BI Intelligence, “Chatbots increase recruitment opportunities,” Business Insider, July 12, 2016, http://www. businessinsider.com/chatbots-increase-recruitment-opportunities-2016-7; Khari Johnson, “Recruitment chat- bot Mya automates 75% of hiring process,” Venture Beat, July 11, 2016, http://venturebeat.com/2016/07/11/ recruitment-chatbot-mya-automates-75-of-hiring-process/.

11. Switch, http://www.switchapp.com/, accessed January 17, 2017.

12. Executive conversations with the authors.

13. CNN Tech, October 19, 2016, http:// money.cnn.com/2016/10/19/technology/glassdoor-know-your-worth-tool/.

14. Diane Gherson (senior vice president, Human Resources, IBM), interview with the authors, December 2016.

15. Claire Zillman, “IBM is blowing up its annual performance review,” Fortune, February 1, 2016, http://fortune. com/2016/02/01/ibm-employee-performance-reviews/.

16. Alison DeNisco, “Three guiding principles for ethical AI, from IBM CEO Ginni Rometty,” Tech Republic, January 17, 2017, http://www.techrepublic.com/article/3-guiding-principles-for-ethical-ai-from-ibm-ceo-ginni-rometty/.

17. Per Scott (vice president, Human Resources, Royal Bank of Canada), interview with Josh Bersin, December 2016.

Executive conversations with the authors.

ENDNOTES

2017 Deloitte Global Human Capital Trends

Rewriting the rules for the digital age

Erica Volini, Deloitte Consulting LLP | [email protected]

businesses optimize their performance. Throughout her 20-year consulting career, Volini has worked with organizations to determine how best to deliver HR services, which enable

Pascal Occean, Deloitte Canada | [email protected]

Pascal Occean leads Deloitte’s Canadian HR Transformation practice. With more than 18 years of experience serving domestic and global clients, Occean specializes in all aspects of HR transformation, including strategy, service delivery, process reengineering, outsourcing, service center transitions, implementations, and support. Occean also has in-depth knowledge of HR technology implementations for solutions such as SAP, Oracle, and Workday.

Michael Stephan, Deloitte Consulting LLP | [email protected]

Brett Walsh, Deloitte MCS Limited | [email protected]

Brett Walsh is Deloitte’s global Human Capital leader and a global lead client service partner. He has over 25 years of international experience consulting with executives on HR transformation, HR technologies, and the “future of work.” A frequent speaker and author, Walsh has an MBA from Warwick University and is a fellow of the Institute of Business Consultants.

AUTHORS

CONTRIBUTORS

Rewriting the rules for the digital age

People analytics in HR is undergoing a seismic shift. Driven by the widespread adop- tion of cloud HR systems, companies are investing heavily in programs to use data for all aspects of workforce planning, talent management, and operational improve- ment. People analytics, a discipline that started as a small technical group that ana- lyzed engagement and retention, has now gone mainstream. Organizations are redesigning their technical analytics groups to build out digitally powered enterprise analytics solutions. These new solutions, whether developed internally or embedded in new digital solutions, are enabling organizations to conduct real-time analytics at the point of need in the business process. This allows for a deeper understanding of issues and actionable insights for the business.

• While 71 percent of companies see people analytics as a high priority in their orga- nizations (31 percent rate it very important), progress has been slow. The percent- age of companies correlating HR data to business outcomes, performing predic- tive analytics, and deploying enterprise scorecards barely changed from last year.

• Analytics is being applied to a wide range of business challenges: Recruiting remains the No. 1 area of focus, followed by performance measurement, compensation, workforce planning, and retention. We see an explosive growth in the use of orga- nizational network analysis (ONA) and the use of “interaction analytics” (studying employee behavior) to better understand opportunities for business improvement.

• - cent report they have usable data; only 9 percent believe they have a good under- standing of which talent dimensions drive performance in their organizations; and only 15 percent have broadly deployed HR and talent scorecards for line managers.

People analytics Recalculating the route

2017 Deloitte Global Human Capital Trends

Rewriting the rules for the digital age

THE -1 -

NEW TOOLS PROVIDE DEEP NEW INSIGHTS TO DRIVE PERFORMANCE

•

- -

•

Percentages by region:

Latin & South America

North America

Americas 75 75

Asia Oceania 85 81

Africa Central & Eastern Europe

Middle East Nordic countries

Western Europe

Europe, Middle East, and Africa 75 75 78 83 85

Germany 66

Italy 76

UK 78

Canada 72

Belgium 55

75 Netherlands

Spain 61

71 South Africa

USA 76

Mexico 71

85 Brazil 73 Australia

81 China

83 India

France 48 77 Japan

Figure 1. People analytics: Percentage of respondents rating this trend “important” or “very important”

Deloitte University Press | dupress.deloitte.com

Lower %Higher %

Percentages in selected countries:

Lower %Higher %

Brazil

India

China

Japan

Italy

USA

Netherlands

Australia

Canada

South Africa

Mexico

Germany

Spain

Belgium

France

• -

•

• -

•

• -

IMAGINING NEW USES FOR DATA TO DRIVE BUSINESS RESULTS

Predictive analytics tools from many HR technology vendors

have arrived, making it possible to analyze data regarding recruitment,

performance, employee mobility, and other factors.

2017 Deloitte Global Human Capital Trends

Rewriting the rules for the digital age

12 -

- -

- 13

Lessons from the front lines

- - -

- -

Start here

• Invest at a senior level in people analyt- ics:

• Establish clear leadership:

• Prioritize clean and reliable data across HR and the organization:

• Understand that analytics is multidis- ciplinary:

2017 Deloitte Global Human Capital Trends

Rewriting the rules for the digital age

FAST FORWARD

Over the next few years, the number of data sources will continue to rise, leading to a fusion of external and internal data in predicting employee behavior. At leading companies, analytics will become even more interdisciplinary, along the lines of ONA. Eventually, people analytics will be fully integrated into systems and always in the background, rather than a separate source of information.

Going forward, analytics technology will have the capability to deliver increasingly personalized recommendations. Due to the sensitive nature of some people analytics programs, organizations will likely need to become far more serious about data

public disclosure of private information on the organization and its employees.

• the organization:

• Develop a two- to three-year roadmap for investment in analytics programs:

• - -

• Integrate HR, organizational, and exter- nal data:

Old rules New rules

People analytics is viewed as an HR team focused on advanced analytics within HR

People analytics is viewed as a business analytics team that works across the business to drive business results

Analytics focuses on HR topics such as retention, engagement, learning, and recruitment metrics

Analytics focuses on business problems such as sales

retention, fraud, accident patterns, and other operational needs

The organization makes a business case for better data integration, quality, and tools

The organization has already committed to accurate and integrated data, and has tools and processes to ensure quality and ease of analysis

The people analytics team has a strong understanding of HR data

The people analytics team understands HR data,

relationships with all the other analytics groups in the company

The people analytics team lives in HR operations and reports to HR technology, or in functional areas

The people analytics team operates at a senior level, reports to the CHRO, and serves business leaders across the company

The people analytics team is a small set of technical experts with data management and statistical skills

The people analytics team is a multidisciplinary team, with a focus on business consulting, visual communications, and problem solving

primary focus is the development of models and data warehouses

People analytics is a consulting function that helps business leaders solve problems

People analytics focuses on employees People analytics focuses on the entire workforce, including employees and contingent labor

The people analytics team focuses heavily on engagement survey data and employee happiness and culture

The people analytics team moves beyond engagement to understand the detailed drivers of engagement and builds culture models to understand what drives the workforce

2017 Deloitte Global Human Capital Trends

Rewriting the rules for the digital age

1. Erica Volini, Pascal Occean, Michael Stephan, and Brett Walsh, “Digital HR: Platforms, people, and work,” Global Human Capital Trends 2017: Rewriting the rules for the digital age, Deloitte University Press, 2017, https://dupress. deloitte.com/dup-us-en/focus/human-capital-trends.html.

2. Executive conversations with the authors.

3. Ibid.

4. Ibid.

5. Josh Bersin, “Workday acquires Platfora: Analytics race accelerates,” Forbes, July 25, 2016, http://www.forbes.

6. Peter A. Gloor, “What email reveals about your organization,” MIT Sloan Management Review, November 17, 2015, http://sloanreview.mit.edu/article/what-email-reveals-about-your-organization/.

7. Reuters, June 7, 2016, http://www.reuters.com/article/us-banks-hiring-ai-idUSKCN0YT163, accessed December 2016.

millions of dollars,” press release, June 16, 2016, https://www2.deloitte.com/us/en/pages/about-deloitte/articles/ press-releases/laborwise-solution-pinpoints-overages-in-labor-spending.html.

9. Executive conversations with the authors.

10. Financial Times

11. Michael Stephan, David Brown, and Robin Erickson, “Talent acquisition: Enter the cognitive recruiter,” Global Human Capital Trends 2017: Rewriting the rules for the digital age, Deloitte University Press, 2017, https://dupress. deloitte.com/dup-us-en/focus/human-capital-trends.html.

12. hiQ, “Enterprise solutions,” https://www.hiqlabs.com/solutions/, accessed January 31, 2017.

13. Executive conversations with the authors.

14. Ibid.

15. Madhura Chakrabarti, Scaling people analytics globally: Chevron takes a multipronged approach to building organi- , Bersin by Deloitte, November 2, 2016, https://www.bersin.com/Practice/

Detail.aspx?id=20290, accessed December 21, 2016.

ENDNOTES

Laurence Collins, Deloitte MCS Limited | [email protected]

Laurence Collins leads the United Kingdom’s HR Digital, Workforce Planning and Analytics practices, helping clients drive productivity and performance in the context of the “future of work.” He focuses on applying a variety of approaches such as predictive analytics, robotics, and strategic workforce planning for improved business impact. His work includes reimagining the role of HR and linking the resulting outcomes of new capabilities back to the economic contribution of human capital.

Dave Fineman, Deloitte Consulting LLP |

Dave Fineman leads the HR Transformation People Analytics and Workforce Planning program in the United States. In this role, he collaborates with Deloitte colleagues from

and delivering solutions that build capability, deploy technology, and advance people analytics and workforce planning capabilities within client organizations. In addition to his client work, Fineman has presented people analytics and workforce planning topics at

sessions. He has an MBA from the Amos Tuck School of Business at Dartmouth College and a BA from Clark University.

Akio Tsuchida, Deloitte Tohmatsu Consulting Co., Ltd | [email protected]

Akio Tsuchida is Deloitte’s Human Capital leader for Japan. With more than 20 years of human capital consulting experience, Tsuchida has rich expertise in total rewards and performance management, executive compensation, workforce planning, and talent management. He has led large-scale business transformation projects related to cross- border M&A, post-merger integration, corporate restructuring, and globalization. He has a master’s degree in labor relations and human resources from Michigan State University.

AUTHORS

CONTRIBUTORS Madhura Chakrabarti, Stavros Demetriou, Jim Guszcza, John Houston, Luk Smeyers

2017 Deloitte Global Human Capital Trends

Rewriting the rules for the digital age

Diversity and inclusion has become a CEO-level issue around the world. The digital organization of today, which operates as a network of teams, thrives on empower- ment, open dialogue, and inclusive working styles. Leading organizations now see diversity and inclusion as a comprehensive strategy woven into every aspect of the talent life cycle to enhance employee engagement, improve brand, and drive perfor- mance. The era of diversity as a “check the box” initiative owned by HR is over. CEOs must take ownership and drive accountability among leaders at all levels to close the gap between what is said and actual impact.

• - ority has risen by 32 percent compared with our 2014 survey.

• Over two-thirds (69 percent) of executives rate diversity and inclusion an impor- tant issue (up from 59 percent in 2014).

• Thirty-eight percent of executives report that the primary sponsor of the compa-

Diversity and inclusion The reality gap

1 -

- - -

2017 Deloitte Global Human Capital Trends

Rewriting the rules for the digital age

3 - -

- - -

- -

Percentages by region:

Latin & South America

North America

Americas 73 67

Asia Oceania 78 75

Africa Central & Eastern Europe

Middle East Nordic countries

Western Europe

Europe, Middle East, and Africa 79 60 67 62 62

Italy 61

UK 74

Canada 68

Belgium 56

65 Netherlands

Spain 66

80 South Africa

USA 66

Mexico 79

69 Brazil 77 Australia

81 China

78 India

France 59

Germany 61

86 Japan

Figure 1. Diversity and inclusion: Percentage of respondents rating this trend “important” or “very important”

Deloitte University Press | dupress.deloitte.com

Lower %Higher %

Percentages in selected countries:

Lower %Higher %

Japan

China

South Africa

Mexico

India

Australia

United Kingdom

Brazil

Canada

United States

Spain

Netherlands

Italy

Germany

France

Belgium

- -

WHAT IS DRIVING THE RISE IN CONCERN?

- 9

- -

A set of “new rules” is being written that will demand a new focus on experiential

learning, process change, data-driven tools, transparency, and accountability.

2017 Deloitte Global Human Capital Trends

Rewriting the rules for the digital age

MANY COMPANIES ARE STILL NOT SEIZING OPPORTUNITIES

COMPANIES MUST UNDERSTAND THE COMPLEXITY OF THEIR WORKFORCE

Global Human Capital Trends re-

- -

- - -

- -

THE ROLE OF LEADERSHIP

Lessons from the front lines -

- -

We identify commitment, courage,

cognizance of bias, curiosity, cultural intelligence, and collaboration as

the six traits of an inclusive leader.

2017 Deloitte Global Human Capital Trends

Rewriting the rules for the digital age

- -

- 23

Times’ 25

- -

- 29

- -

Start here • Ensure that top leadership understands

the importance of diversity:

• Use technology and data to identify prob- lems and measure progress:

• Move beyond HR: -

FAST FORWARD

Old models of diversity and inclusion are undergoing change, and this trend is expected to accelerate. As employee demands shift and diversity receives greater

large Baby Boomer population ages, the need to broaden the focus on diversity and inclusion to account for the elderly in the workplace will increase. In inclusive organizations, the way people operate will shift, and the everyday language of the business will change.

• -

2017 Deloitte Global Human Capital Trends

Rewriting the rules for the digital age

Old rules New rules

Diversity is considered a reporting goal driven by compliance and brand priorities

Diversity and inclusion is a CEO-level priority and considered important throughout all levels of management

Work-life balance is considered a challenge for employees to manage, with some support from the organization

Work-life balance, family, and individual wellness are all considered part of the total employee experience

Companies measure diversity through the

attributes such as gender, race, nationality, or age

Companies measure inclusion, diversity, and lack of bias in all recruitment, promotion, pay, and other talent practices

concepts of “diversity of thought,” also addressing

Leaders are promoted on “merit” and experience “Merit” is unpacked to identify built-in biases; leaders are promoted on their ability to lead inclusively

Diversity and inclusion is a program of education, training, and discussion

Diversity and inclusion goes beyond education to focus on debiasing business processes and holding leaders accountable for inclusive behavior

Companies regularly report progress on diversity measures

Companies hold managers accountable for creating an inclusive culture, using metrics to compare them against each other

1. Bonnie Marcus, “The lack of diversity in tech is a cultural issue,” Forbes, August 12, 2015, http://www.forbes.com/

2. Deloitte Touche Tohmatsu Limited, summary, January 2014, http://www2.deloitte.com/content/dam/Deloitte/global/Documents/About-Deloitte/gx- dttl-2014-millennial-survey-report.pdf.

3. M. Christie Smith and Stephanie Turner, - ence, Deloitte, 2015, http://www2.deloitte.com/us/en/pages/about-deloitte/articles/radical-transformation-of- diversity-and-inclusion.html, accessed October 12, 2016.

4. now,” Global Human Capital Trends 2017: Rewriting the rules for the digital age, Deloitte University Press, 2017, https://dupress.deloitte.com/dup-us-en/focus/human-capital-trends.html.

5. Juliet Bourke, Decisions (Australian Institute of Company Directors, 2016); David Rock and Heidi Grant, “Why diverse teams are smarter,” Harvard Business Review, November 4, 2015, https://hbr.org/2016/11/why-diverse-teams-are-smarter, accessed December 21, 2016; Stacia Sherman Garr, Candace Atamanik, and David Mallon, High-impact talent management: The new talent management maturity model, Bersin by Deloitte, 2015, http://marketing.bersin.com/ high-impact-talent-management.html, accessed December 21, 2016.

6. Bernadette Dillon and Juliet Bourke, Waiter, is that inclusion in my soup? A new recipe to improve business perfor- mance, Deloitte, May 2013, https://www2.deloitte.com/content/dam/Deloitte/au/Documents/human-capital/de- loitte-au-hc-diversity-inclusion-soup-0513.pdf, accessed December 21, 2016; Natasha Doherty and Juliet Bourke, Toward gender parity: Women on Boards Initiative, Deloitte Access Economics, 2016, https://www2.deloitte.com/ content/dam/Deloitte/au/Documents/Economics/deloitte-au-toward-gender-parity-women-on-boards-initia- tive-041016.pdf, accessed December 21, 2016.

7. Fast Company, October 6, 2014, https://www.fastcompany. com/3036627/strong-female-lead/youre-more-biased-than-you-think, accessed December 21, 2016.

Stacia Sherman Garr, The diversity and inclusion primer: An introduction, Bersin by Deloitte, 2014.

9. Bourke, ; Garr, Atamanik, and Mallon, High-impact talent management.

10. Garr, Atamanik, and Mallon, High-impact talent management.

11. Global News, November 5, 2015, http://globalnews.ca/news/2320795/because-its-2015-trudeaus-gender-equal- cabinet-makes-headlines-around-world-social-media/, accessed December 21, 2016.

12. Alexander K. Song, “Dodd-Frank and executive compensation—part 1: Status update,” National Law Review, April

13. Cindy Robbins, “Equality at Salesforce: The equal pay assessment update,” Salesforce Blog www.salesforce.com/blog/2016/03/equality-at-salesforce-equal-pay.html, accessed December 21, 2016.

14. Steven Greenhouse, “The age premium: Retaining older workers,” New York Times, May 14, 2014, http://www. nytimes.com/2014/05/15/business/retirementspecial/the-age-premium-retaining-older-workers.html, accessed December 21, 2016.

ENDNOTES

2017 Deloitte Global Human Capital Trends

Rewriting the rules for the digital age

15. Stacia Sherman Garr, The diversity and inclusion benchmarking report, Bersin by Deloitte, March 2014.

16. Stacia Sherman Garr and Candace Atamanik, High-impact diversity and inclusion, Bersin by Deloitte, forthcoming, April 2017.

17. Catalyst, “Statistical overview of women in the workforce,” April 6, 2016, http://www.catalyst.org/knowledge/ statistical-overview-women-workforce.

Miki Perkins, “Victorian government trials blind job applications to overcome hiring bias,” Age, May 20, 2016, http://www.theage.com.au/victoria/victorian-government-trials-blind-job-applications-to-overcome-hiring-bias-

19. Matthew Lieberman et al., “Breaking bias: The SEEDS model,” NeuroLeadership Journal, November 2015, https:// neuroleadership.com/portfolio-items/breaking-bias-updated-the-seeds-model-2/, accessed December 21, 2016.

20. Bernadette Dillon and Juliet Bourke, , Deloitte University Press, April 14, 2016, https://dupress.deloitte.com/dup-us-en/topics/talent/six-signature- traits-of-inclusive-leadership.html, accessed December 21, 2016.

21. - tion with Juliet Bourke, January 2017.

22. studies/think-act-report-lloyds-banking-group, November 4, 2014.

23. Virgin Money, , March 2016, http:// uk.virginmoney.com/virgin/assets/pdf/Virgin-Money-Empowering-Productivity-Report.pdf.

24. Ibid.

25.

26. Virgin Money, Empowering productivity.

27. P&G, 2015 diversity & inclusion annual report: Enabling a culture of innovation & productivity, http://cdn.pg.com/-/ media/PGCOMUS/Documents/PDF/Who_We_Are/DiversityandInclusion/PG_DiversityInclusion_AR_2012%20pdf. pdf?la=en-US&v=1-201506230605.

Catalyst, Disrupt the default: Catalyst Awards Conference, March 26, 2015, https://www.google.co.uk/url?sa=t&r-

MAE&url=http%3A%2F%2Fwww.catalyst.org%2Fuploads%2F2015_catalyst_awards_conference_program-1. pdf&usg=AFQjCNEcPhISCHjaihIvkWo_zbpeZN2DSQ&bvm=bv.144224172,d.bGs.

29. P&G, 2015 diversity & inclusion annual report.

30. Cincinnati Business Courier

31. P&G, 2010 global sustainability report, June 30, 2010, http://cdn.pgcom.pgsitecore.com/en-gb/-/media/PG- COMUK/Documents/PDF/Sustanability_PDF/sustainability_reports/PG2010SustainabilityReport%20pdf. pdf?la=en-GB&v=1-201601061549.

32. P&G, 2015 diversity & inclusion annual report.

Juliet Bourke, Deloitte Touche Tohmatsu | [email protected]

Juliet Bourke leads Deloitte Australia’s Diversity and Inclusion consulting practice and co-leads its Leadership practice. She has over 25 years’ experience in human capital, management, and law. Her latest book, Which Two Heads Are Better than One?, focuses on diversity of

and sits on a number of boards and award panels. Bourke has also keynoted at hundreds of

Stacia Sherman Garr, Bersin by Deloitte, Deloitte Consulting LLP [email protected]

Woman’s College.

Ardie van Berkel, Deloitte Consulting BV | [email protected]

leading human capital practice in the market, and her team has contributed to numerous

integrations, organizational design, HR strategies, and change management to support major transformation programs, primarily in the public sector.

Jungle Wong, Deloitte Consulting (Shanghai) Co. Ltd, Beijing Branch [email protected]

region. He has extensive experience working with multinational enterprises located in China, as well as state-owned enterprises, on solving talent and HR issues. He is a frequent speaker at HR conferences and an assessor for the Chinese Business Leaders’ Awards. Wong is a regular writer for HR magazines in China.

AUTHORS

CONTRIBUTORS Candace Atamanik, Carolyn Lawrence

2017 Deloitte Global Human Capital Trends

Rewriting the rules for the digital age

Driven by the acceleration of connectivity and cognitive technology, the nature of work is changing. As AI systems, robotics, and cognitive tools grow in sophistication, almost every job is being reinvented, creating what many call the “augmented work- force.” As this trend gathers speed, organizations must reconsider how they design jobs, organize work, and plan for future growth.

• This year, 41 percent of companies reported they have fully implemented or

their workforce.

• Another 34 percent of survey respondents are in the midst of pilot programs.

• But only 17 percent of global executives report they are ready to manage a work- force with people, robots, and AI working side by side—the lowest readiness level

The future of work The augmented workforce

FOR - 1

- 2

RETHINKING WORK FOR THE AUGMENTED WORKFORCE

- -

2017 Deloitte Global Human Capital Trends

Rewriting the rules for the digital age

- more 5

- -

WHERE DO COMPANIES STAND TODAY?

Global Human

Percentages by region:

Latin & South America

North America

Americas 45 32

Asia Oceania 50 37

Africa Central & Eastern Europe

Middle East Nordic countries

Western Europe

Europe, Middle East, and Africa 33 34 38 48 38

Italy 36

UK 43

Canada 33

Belgium 39

37 Netherlands

Spain 40

34 South Africa

USA 31

Mexico 44

42 Brazil 36 Australia

51 China

54 India

France 32

Germany 40 48 Japan

Figure 1. Robotics, cognitive computing, and AI: Percentage of respondents rating this trend “important” or “very important”

Deloitte University Press | dupress.deloitte.com

Lower %Higher %

Percentages in selected countries:

Lower %Higher %

India

China

Japan

Mexico

United Kingdom

Brazil

Germany

Spain

Belgium

Netherlands

Italy

Australia

South Africa

Canada

France

United States

Capital Trends

- -

Percentages by region:

Latin & South America

North America

Americas 62 58

Asia Oceania 72 61

Africa Central & Eastern Europe

Middle East Nordic countries

Western Europe

Europe, Middle East, and Africa 66 61 64 56 62

Italy 64

UK 63

Canada 56

Belgium 67

70 Netherlands

Spain 63

64 South Africa

USA 59

Mexico 66

63 Brazil 65 Australia

73 China

76 India

France 49

Germany 61 68 Japan

Figure 2. Augmented workforce: Percentage of respondents rating this trend “important” or “very important”

Deloitte University Press | dupress.deloitte.com

Lower %Higher %

Percentages in selected countries:

Lower %Higher %

India

China

Netherlands

Japan

Belgium

Mexico

Australia

Italy

South Africa

United Kingdom

Spain

Brazil

Germany

United States

Canada

France

2017 Deloitte Global Human Capital Trends

Rewriting the rules for the digital age

UNEVEN PROGRESS TOWARD THE FUTURE WORKFORCE

RETHINKING TALENT, TECHNOLOGY, AND THE WORKPLACE

- -

Deloitte University Press | dupress.deloitte.com

Managing contingent, outsourced, contracted, and part-time sources of labor

Understanding emerging skills and critical capability gaps

Managing gig and talent-sharing economy resources

Managing crowdsourcing as part of the organization’s workforce and talent

programs

25% 57% 19%

53% 39% 9%

59% 33% 8%

Weak ExcellentAdequate

14%62%24%

Percentage of total responses

Figure 3. Respondent ratings of sub-capabilities related to the augmented workforce

•

• -

•

- - -

• -

Deloitte University Press | dupress.deloitte.com

Aligning competency models/frameworks to account for new robotics/cognitive computing/

AI requirements

Reskilling employees to complement robotics/cognitive computing/AI

Redeploying employees replaced by robotics/cognitive computing/AI resources

elsewhere in the organization

Identifying external sources of robotics/cognitive computing/AI talent

Understanding the future impact of robotics/cognitive computing/AI on talent

Percentage of total responses

Weak ExcellentAdequate

51% 10%40%

43% 11%47%

34% 21%45%

56% 6%38%

51% 9%40%

Figure 4. Respondent ratings of sub-capabilities related to robotics, cognitive computing, and AI

2017 Deloitte Global Human Capital Trends

Rewriting the rules for the digital age

RETHINKING THE BOUNDARIES OF WORK BETWEEN HUMANS AND MACHINES

skills tasks

Only Humans Need Apply -

Robots and cognitive technologies are making steady

advances, particularly in jobs and tasks that

follow set, standardized rules and logic.

Lessons from the front lines

12 -

- -

- 14

Start here • Consider how the core work actually gets

done:

• Identify all human workforce segments:

• Examine all types of nonhuman work- forces: -

• Redesign multiyear strategic and annual operational workforce planning:

- -

The future of work has arrived, and companies

should embrace this disruptive opportunity.

2017 Deloitte Global Human Capital Trends

Rewriting the rules for the digital age

FAST FORWARD

power continue to grow exponentially, driving advances in robotics and machine learning. Cognitive tools to augment, and in some cases replace, knowledge work will continue to accelerate and become widely deployed and adopted. We would not be surprised if the future of work, workforce, and workplace issues come to dominate the concerns and agenda of HR and business leaders in the near future. This challenge

• Collaborate across functions to plan and implement new work and workforce so- lutions: -

• Invest in critical human skills for the fu- ture workforce:

• Plan and manage the workforce transfor- mation:

Old rules New rules

jobs (replacement)

Jobs and tasks are being redesigned to use more essential human skills, and are augmented by technology (augmentation)

Full-time employees are the main source of talent A continuum of talent is available, including contractors, gig employees, crowds, and competitions

Workforce planning focuses on full-time workforce and skill requirements

The focus in workforce planning shifts to start with work and analyzing options across multiple workforces and technologies

The half-life of skills continues to decrease rapidly, and work is being constantly reinvented

Jobs and career ladders are the foundation of work and the workforce

Projects, assignments, and tours of duty are building blocks for work; careers are portfolios of projects and experiences

Robotics and cognitive technologies are IT projects Integrating people and technology is a multidisciplinary task

management and workforce transition

HR has a strategic role to facilitate and orchestrate the redesign of jobs and train the augmented workforce

The fundamental elements of work are “jobs,” with formally developed “job descriptions”

The fundamental elements of work are “tasks,” which are aggregated into jobs and roles

2017 Deloitte Global Human Capital Trends

Rewriting the rules for the digital age

1. The open talent economy: Beyond corporate borders to talent ecosystems, Deloitte University Press, July 24, 2013, https://dupress.deloitte.com/dup-us-en/deloitte-review/is- sue-13/the-open-talent-economy.html, accessed December 13, 2016.

2. Machines as talent: Collaboration, not competition, Deloitte University Press, Feb- ruary 27, 2015, https://dupress.deloitte.com/dup-us-en/focus/human-capital-trends/2015/cognitive-technology- in-hr-human-capital-trends-2015.html, accessed December 13, 2016.

3. The gig economy: Distraction or disruption?, Deloitte University Press, February 29, 2016, https://dupress.deloitte.com/dup-us-en/focus/human-capital-trends/2016/gig-economy-freelance-workforce. html, accessed December 13, 2016.

4. Angus Knowles-Cutler and Harvey Lewis, Essential skills for working in the machine age, Deloitte, https://www2. deloitte.com/uk/en/pages/growth/articles/essential-skills-for-working-in-machine-age.html; Bersin by Deloitte Glassdoor research.

5. Angus Knowles-Cutler and Harvey Lewis, Talent for survival: Essential skills for humans working in the machine age, Deloitte, 2016, p. 1, https://www2.deloitte.com/content/dam/Deloitte/uk/Documents/Growth/deloitte-uk-talent- for-survival-report.pdf, accessed December 13, 2016.

6. Laura Stevens, “How Amazon gets its holiday hires up to speed in two days,” Wall Street Journal

accessed December 13, 2016.

7. Harvard Business Review, October 2016, https://hbr. org/2016/10/atts-talent-overhaul, accessed October 3, 2016.

, Deloitte,

9. Erik Brynjolfsson and Andrew McAfee, Race against the Machine: How the Digital Revolution is Accelerating Innova- tion, Driving Productivity, and Irreversibly Transforming Employment and the Economy (Digital Frontier Press, 2011); Erik Brynjolfsson and Andrew McAfee, The Second Machine Age: Work Progress, and Prosperity in a Time of Brilliant Technologies (W.W. Norton & Company, 2016); Thomas H. Davenport and Julia Kirby, Winners and Losers in the Age of Smart Machines (HarperBusiness, 2016).

10. Knowles-Cutler and Lewis, Talent for survival.

11. Davenport and Kirby, .

12. Stevens, “How Amazon gets its holiday hires up to speed in two days.”

13. Ibid.

14. Ibid.

15. James Bessen, “Toil and technology,” Finance and Development 52, no. 1 (March 2015), http://www.imf.org/exter- nal/pubs/ft/fandd/2015/03/bessen.htm, accessed December 13, 2016.

16. James Bessen, , Boston University School

ENDNOTES

is an advisor to senior business leaders in global companies, focusing on organization, HR,

Laurence Collins, Deloitte MCS Limited | [email protected]

Heather Stockton, Deloitte Canada | [email protected]

Heather Stockton serves the banking sector, advising clients on governance and management practices, leadership, operating models, and business transformation. She leads Deloitte’s Americas Human Capital business and is also the organization’s global Financial Services Industry leader for human capital. She is also a global leader of Deloitte’s “future of work” research and client solution development. Stockton is a director on the Deloitte Canada board and chairs its governance committee.

Darryl Wagner, Deloitte Consulting LLP | [email protected]

Darryl Wagner is the global leader for Deloitte’s Actuarial, Rewards, and Analytics practice.

measurement and management. He has worked with clients around the world on many accounting and valuation frameworks, helping them with technical, process-oriented, and organizational aspects of implementation, execution, and evaluation. Wagner is a fellow of the Society of Actuaries and a member of the American Academy of Actuaries.

Brett Walsh, Deloitte MCS Limited | [email protected]

AUTHORS

CONTRIBUTORS Raj Attra, Stacia Garr, Bob Kaunert, Peter Lowes, Christa Manning, Sarah Rogers, David Schatsky, Nathan Sloan

2017 Deloitte Global Human Capital Trends

Rewriting the rules for the digital age

EXECUTIVE EDITORS

Bill Pelster, Deloitte Consulting LLP | [email protected]

is an advisor to senior business leaders in global companies, focusing on organization, HR,

LEAD RESEARCHER

Josh Bersin, Bersin by Deloitte, Deloitte Consulting LLP | [email protected]

ACKNOWLEDGEMENTS

Global Human Capital Trends

Julie May Global Human Capital Trends

Jen Stempel Bernard van der Vyver David Mallon Luke Monck

Elizabeth Chodaczek Alejandra Arrue Mia Farnham Anna Martin Lauren Shevlin -

Junko Kaji Troy Bishop

Katrina Drake Hudson Christy Hodgson Laura Elias - Melissa

Doyle Susan Ostaszewski Stephen Soyland Lesley Stephen -

Ankita Jain Udita Arora Mukta Goyal Shivank Gupta Maansi Pandey

Saylee Bhorkar Diptarka Chakraborty Srishti Dayal Garima Tyagi Dubey Karan Gurung Rachit Jain Swati Jain Ashish Kumar Kainth Harsh Khandelwal Navti Narang Sangeet Sabharwal Sonia Sharma Manan Vij

Brett Walsh Jason Geller Erica Volini

2017 Deloitte Global Human Capital Trends

Rewriting the rules for the digital age

BERSIN BY DELOITTE RESEARCH TEAM

David Mallon, head of research, Bersin by Deloitte, Deloitte Consulting LLP

and drives continuous innovation among Bersin by Deloitte’s research team. He is the former steward for Bersin by Deloitte’s learning and development research practice and has been the primary force behind its work in continuous learning, learning cultures, high-impact learning organization maturity, and learning management systems. He is also central to developing thought leadership related to HR’s operating models, governance, and the evolution of key roles such as the HR business partner.

Candace Atamanik, talent management research leader, Bersin by Deloitte, Deloitte Consulting LLP Candace Atamanik’s research focuses on talent strategy, talent management, performance management, and competencies. Atamanik has a BS in psychology from Pepperdine University and an MS in industrial and organizational psychology from Florida International University. She was also a PhD candidate in industrial and organizational psychology at Florida International University.

Madhura Chakrabarti, people analytics research leader, Bersin by Deloitte, Deloitte Consulting LLP Madhura Chakrabarti has a bachelor’s degree in psychology from the University of Delhi and an MA and PhD in industrial/organizational psychology from Wayne State University, Michigan. Previously, Chakrabarti worked at Dell and Ford Motor Company in various roles spanning people analytics, employee engagement, and pre-employment assessments

Vikram Datta Choudhury, India leader, Bersin by Deloitte, Deloitte Consulting LLP

member organizations. Before his current role, he headed research initiatives at People Matters, a leading

Janet Clarey, learning and development research leader, Bersin by Deloitte, Deloitte Janet Clarey focuses on the areas of learning culture, high-impact learning, organization maturity, and learning technology. She holds a BA in communications from the State University of New York at Oswego and a master’s degree in instructional design for online learning from Capella University. She has also completed coursework toward a doctorate from Syracuse University in instructional design, development, and evaluation.

Andrea Derler, leadership and succession research leader, Bersin by Deloitte, Deloitte Consulting LLP Andrea Derler holds a doctoral degree in economics (leadership and organization) and a master’s degree in philosophy. Prior to joining Bersin by Deloitte, she collaborated closely with organizations in the

BERSIN BY DELOITTE RESEARCH TEAM, CONT.

Robin Erickson, vice president, talent acquisition research, Bersin by Deloitte, Deloitte Consulting LLP

her deep experience in talent strategies consulting and related research for Deloitte’s Human Capital

and change, a master’s degree in communication from Northwestern University, a master’s degree in theology from Northern Seminary, and a bachelor of arts degree from the University of Chicago.

Stacia Sherman Garr, vice president, talent management research, Bersin by Deloitte, Deloitte Consulting LLP Stacia Sherman Garr is responsible for research on human resources, talent strategy, integrated talent management, performance management, career management, diversity and inclusion, employee recognition, competencies, and workforce planning. Garr holds an MBA from the University of

in history and political science from Randolph-Macon Woman’s College.

Dani Johnson, vice president, learning and development research, Bersin by Deloitte, Deloitte Consulting LLP Dani Johnson has spent the majority of her career writing about, conducting research in, designing, and consulting on human capital practices. Johnson led the Human Resource Competency Study with the University of Michigan and six other professional organizations around the world, and co-authored the resulting book, HR Competencies: Mastery at the Intersection of People and Business (Society for Human Resource Management, 2008).

Christa Manning, vice president, HR solution provider research, Bersin by Deloitte, Deloitte Consulting LLP Christa Manning helps businesses align their workforce support strategies with the right third-party software, service partners, and governance models. She also helps solution providers map their capabilities and go-to-market activities to solution users’ needs. Manning holds a bachelor’s degree

Bersin by Deloitte, Deloitte Consulting LLP

He has also been a faculty member in human resources development at Al Akhawayn University,

and a master’s degree in organizational development and strategic human resources from Johns Hopkins University.

Denise Moulton, mid-market HR and talent research leader, Bersin by Deloitte, Deloitte Consulting LLP Denise Moulton has several years of practitioner experience focusing on talent acquisition, talent management, and human resources operations. Previously, she was a talent acquisition leader at Hasbro, Inc., where she provided recruitment management for global and commercial business

Internet recruiter.

2017 Deloitte Global Human Capital Trends

Rewriting the rules for the digital age

GLOBAL HUMAN CAPITAL LEADERS

HUMAN CAPITAL COUNTRY LEADERS

Global Human Capital leader Brett Walsh Deloitte MCS Limited [email protected]

Global Organization Transformation and Talent leader Dimple Agarwal Deloitte MCS Limited [email protected]

Global HR Transformation leader Michael Stephan Deloitte Consulting LLP [email protected]

Global Actuarial, Rewards, and Analytics leader Darryl Wagner Deloitte Consulting LLP [email protected]

Global Employment Services leader Nichola Holt Deloitte Tax LLP [email protected]

Global Human Capital leader, Marketing, Eminence, and Brand

Deloitte Consulting LLP

Americas Heather Stockton Deloitte Canada [email protected]

United States Erica Volini Deloitte Consulting LLP [email protected]

Canada

Deloitte Canada [email protected]

Chile Jaime Valenzuela Deloitte Audit y Consult. [email protected]

Mexico Tomas Fernandez Deloitte Consulting Mexico [email protected]

AMERICAS Argentina Leonardo Pena Deloitte & Co. S.A. [email protected]

Brazil Roberta Yoshida Deloitte Consultores [email protected]

Colombia and Peru Alejandra D’Agostino Deloitte & Touche SRL [email protected]

Costa Rica Paula Lenero Deloitte & Touche S.A. [email protected]

Dutch Caribbean Maghalie van der Bunt Deloitte Dutch Caribbean [email protected]

Ecuador Roberto Estrada Andeanecuador Consultores [email protected]

AMERICAS (CONT.)

Panama Jessika Malek Deloitte Consultores [email protected]

Uruguay, LATCO Verónica Melián Deloitte SC [email protected]

Jungle Wong Deloitte Consulting (Shanghai) Co. Ltd, Beijing Branch [email protected]

Australia David Brown Deloitte Touche Tohmatsu [email protected]

India Gaurav Lahiri Deloitte India [email protected]

Japan Akio Tsuchida Deloitte Tohmatsu Consulting Co. Ltd [email protected]

ASIA PACIFIC

Korea Eric Seok Hoon Yang Deloitte Consulting [email protected]

New Zealand Hamish Wilson Deloitte [email protected]

Southeast Asia Mark Maclean Deloitte Consulting Pte Ltd [email protected]

2017 Deloitte Global Human Capital Trends

Rewriting the rules for the digital age

EMEA Ardie Van Berkel Deloitte Consulting BV [email protected]

United Kingdom Anne-Marie Malley Deloitte MCS Limited [email protected]

Africa Abrie Olivier Deloitte Consulting Pty [email protected]

Austria Christian Havranek Deloitte Austria [email protected]

Belgium Yves van Durme Deloitte Consulting [email protected]

Central Europe Evzen Kordenko Deloitte Advisory s.r.o. [email protected]

CIS

CJSC Deloitte & Touche CIS [email protected]

Cyprus George Pantelides Deloitte Ltd [email protected]

Denmark and Nordics Filip Gilbert Deloitte Denmark [email protected]

Finland Eva Tuominen Deloitte Oy

EUROPE, MIDDLE EAST, AND AFRICA

France Philippe Burger Deloitte Conseil [email protected]

Germany

Deloitte Consulting GmbH [email protected]

Ireland Valarie Daunt Deloitte & Touche [email protected]

Israel Zohar Yami Brightman Almagor Zohar & Co. [email protected]

Italy Lorenzo Manganini Deloitte Consulting SRL [email protected]

Kenya George Hapisu Deloitte Consulting Ltd [email protected]

Luxembourg Basil Sommerfeld Deloitte Tax & Consulting [email protected]

Middle East Ghassan Turqieh Deloitte & Touche (M.E.) [email protected]

Netherlands Petra Tito Deloitte Consulting BV [email protected]

Norway Eva Gjovikli Deloitte AS [email protected]

EUROPE, MIDDLE EAST, AND AFRICA

Poland

Deloitte Business Consulting S.A. [email protected]

Portugal José Subtil Deloitte Consultores, S.A. [email protected]

Spain Enrique de la Villa Deloitte Advisory, S.L. [email protected]

Sweden Jonas Malmlund Deloitte Sweden [email protected]

Switzerland Myriam Denk Deloitte Consulting Switzerland [email protected]

Turkey Tolga Yaveroglu Deloitte Turkey [email protected]

2017 Deloitte Global Human Capital Trends

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