The Future of HR: What’s
Next for the Profession?
Phyllis Shurn-Hannah, SPHR
SHRM Northeast Field Services Director
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Howard Schultz on the Role of HR
New York Times, Oct. 11, 2010:
"People ask me what’s the most important function when
you’re starting an organization or setting up the kind of
culture and values that are going to endure. The discipline I
believe so strongly in is HR… “
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Video: “we know next”
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Knowing what’s next
Because people drive change, no one is a
better expert on what’s next than HR leaders
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Today’s Agenda
1. Where we stand today, five years after the recession
2. Key HR challenges at many organizations
Low Employee Engagement
Stressed, Distrustful Workers
Reduced Resources for HR Initiatives
Employer Brands in Need of Rebuilding
3. Two-part strategy for turning challenges into opportunities
Plan for and Develop Your in-House Talent
Build or Rebuild You Employer brand
4. Best Practices Case study of Deloitte LLP
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Where We Stand Today
US Hiring and the economy are slowly picking up
A solid 192,000 new jobs were created in
March while unemployment remained at 6.7%
US GDP grew at 2.5% in 2013 and experts
expect slightly higher growth in 2014
HR professionals will need to continue to
focus on retaining talent in 2014, rather than
recruiting new talent from outside
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Outlook for HR Professionals
Things are starting to look better
Job openings posted on SHRM’s
HR Jobs web site in 2013
increased by 45% compared to
2009
Also, the U.S. Bureau of Labor
Statistics projects an increase of
22% in HR employment by 2018
– compared to a 10.7% increase
for all occupations
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Challenge #1-- Employee Engagement
Gallup 2013 State of US Workforce Study:
Only 30% of US workforce is engaged
70% of employees are disengaged or
actively disengaged
18% of these are actively disengaged,
acting out their unhappiness
Gallup calculates that low employee engagement costs US
businesses $450 billion annually – more than the GDPs of
Israel, Portugal, and Singapore
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Challenge #2 – Stressed Employees
2013 American Psychology Assn survey
More than one-third of American workers
experience chronic work stress, with low salaries,
lack of opportunity for advancement and heavy
workloads topping the list of contributing factors
Many employees feel stuck, with only 39% citing
sufficient opportunities for career advancement
and just over half saying they feel valued at work
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Challenge #3 – Reduced HR Resources
HR teams have been hit as hard as
other departments by budget cutting
Leading a rebound within the confines
of smaller HR teams will require
greater creativity
The bottom line for most HR
professionals is “Do more with less”
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Challenge #4 – Employer Brands
Many companies lost their strong
employer brands during the recession
and have not regained their former
strength
Rebuilding their employer brand will
be key to their business success and
ability to convince high performers to
stay with their companies
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Turning Challenges into Opportunities
Two-part Strategy
#1:
Grow
from Within
#2:
Build/Rebuild
Your Brand
Conduct strategic workforce planning and develop
talented employees from within to meet your postrecession and long-term workforce needs
Build or rebuild your employer brand to
retain and engage your high-performing
employees and attract new talent from
outside
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Strategy #1 – Grow from Within
Strategic Workforce Planning
SWP evaluates future talent needs
through systematic workforce
assessment
This ability to predict and fill future talent
needs is critical as companies move
towards long-term sustainability
HR must make the ROI business case to top management
for strategic workforce planning
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Turnover Costs – Really Cost!
Replacing employees from the outside is expensive
Skilled employees are still at
a premium and will be the
basis for competitive
advantage as the economy
recovers
Average cost to replace an
employee is at least 150% of
the employee’s base salary,
according to the Bliss-Gately
“Cost-to-Replace Tool”
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Strategy #1 – Grow from within
Example
If a company with 1,000 employees and an average
base salary of $50,000 lays off 100 employees -- or
10% of its workforce -- it will spend $7.5 million in
addition to their salaries to replace them
100 Employees
$75,000
$7,500,000
These costs include severance payouts, lost
productivity, recruitment and new hire costs, and
training
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Strategy #1 – Grow from Within
Strategic Workforce Planning: SHRM-AARP 2012 Poll
Joint poll had responses from 430
US HR professionals
Aimed to gauge level of SWP with
focus on potential retirements by
workers aged 50+
72% of organizations said the loss of boomers’ experience
is a current or potential problem, but only 29% had
conducted a strategic workforce analysis of the impact of
their retiring workers
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Strategy #1 – Grow from Within
•
AARP-SHRM free online Workforce Assessment Tool
www.aarp.org/workforceassessment
www.shrm.org/aarp
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Strategy #1 – Grow from Within
Develop Your Talent
Developing talent begins by creating a
culture that rewards people emotionally
and meets their professional expectations
Most employees give top priority to
interesting and challenging work and
growth opportunities
Career and leadership development programs can
provide enriching opportunities to improve skills and
knowledge
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Strategy #1 – Grow from Within
Workplace Flexibility promotes
success, productivity, and balance
President Obama at Fortune
Magazine’s 2010 Most Powerful
Women Summit:
“We must change the
structure of our workplaces…
they must be flexible enough
to give workers the ability to
be productive.”
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Strategy #1 – Grow from Within
SHRM Workplace Flexibility in the 21st Century Survey
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Strategy #1 – Grow from Within
SHRM / FWI Partnership on Workplace Flexibility
The SHRM-FWI partnership, “Moving Work Forward,” aims
to help businesses become more successful by
transforming the way they view and adopt workplace
flexibility
By highlighting strategies that enable people to do their
best work, “Moving Work Forward” promotes flexible work
arrangements that fit the 21st century workforce and create
a new competitive advantage for organizations.
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Strategy #2 – Build Your Employer Brand
Why?
Goal: Create an image of your
organization as a “Great Place to
Work” among your stakeholders
and the public
It helps you grow from within and recruit outside talent:
Improves employee retention rates
Increases employee motivation/engagement
Increases manager satisfaction
Increases unsolicited quality job candidates
Increases recruiting of younger generations and college students
Increases job acceptance rates
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Strategy #2 – Build Your Employer Brand
Communicate your company story and brand via:
•
Your website
•
Visual branding on billboards, etc
•
Print and TV ads
•
Best Places to Work lists
•
Chat rooms/forums/blogs
•
Industry magazines
•
Social Media
•
Company buildings and Intranet
•
Employee testimonials
•
Job podcasting
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Case Study: Deloitte LLP
Women’s Initiative – Culture of Flexibility
Deloitte on “Fortune 100 Best
Companies to Work For” list 15 times
20 years ago, It began WIN, its
initiative for the advancement and
retention of women
The creation of WIN marked the
beginning of a culture of flexibility at
Deloitte. View the Win video at:
www.deloitte.com
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Case Study: Deloitte LLP
Talent Strategy Based on Strong Corporate Culture
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Case Study: Deloitte LLP
Brand Building through Social and Online Media
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Summary -- Takeaways
As the economy grows slowly, HR leaders need to shift their focus to
strategies for long-term sustainability
HR leaders face four key challenges going forward:
Low employee engagement
Stressed and distrustful employees
Reduced budgets for HR initiatives
Employer brands in need of rebuilding
A two-part strategy can turn these challenges into opportunities
Plan and grow in-house capabilities for future workforce needs
Build or rebuild your employer brand
Emulate Deloitte and seek to make your organization a “Great Place to
Work”
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Final Takeaway – Innovation is Crucial
The Future: Personalized products, services for any hand-held device
The Future: Personalized products, services for any hand-held device
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Final Takeaway – Innovation is Crucial
Meet Anna and the Workplace of 2020
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Going Forward Look to SHRM for Support
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We Need Your Passion and Innovation
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