April 2023 HR Leaders Monthly HR Leaders Monthly Executive Sponsor Peter Aykens Contents Editor's Note 3 Defining the Purpose and Scope of Talent Management 4 5 Priorities for Heads of Talent Management in 2023 9 How to Use Talent Resources More Effectively in a Constrained Environment 17 Strategies to Improve Succession in a High-Disruption Environment 22 Career Pathing for a Fragmented Work Landscape 30 Decoupling Work From Jobs: An Interview With Ravin Jesuthasan and John Boudreau 37 Metrics of the Month 42 Editor in Chief Jonah Shepp Managing Editor Carolina Valencia Associate Editor Tess Lawrence Contributing Editor Charlie Beekman Authors Jane Alancheril Kelly Armstrong Sarah Jackson Tess Lawrence Caroline Ogawa Jonah Shepp Nora Stechschulte Sasha Sevil Tuzel Shannon Wiest Design Walter Baumann Tim Brown Amanda Rothamer Editor Melanie Meaders Project Managers Lauren Abel Lindsay Kumpf Access to Gartner Content Caveat Some content may not be available as part of your current Gartner subscription. 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Yet talent management leaders often don’t manage these activities directly. As talent management becomes more essential in a world of dynamic labor markets and fast-changing skills needs, CHROs must work effectively with their heads of talent management. A key step is defining the scope of that role as well as its relationship to other parts of HR and the broader organization. Most fundamentally, the role of talent management leaders is to ensure the organization has the talent it needs to grow and succeed. In today’s business environment, that includes not only attracting and retaining talent but also ensuring employees can thrive within the organization and perform their best work. This issue of HR Leaders Monthly is dedicated to unpacking this definition of talent management and exploring its widening purview. First, we look at how CHROs and talent management leaders should understand the current and future scope of this role, including new and emerging aspects not addressed in traditional models. We also cover the key talent management challenges organizations are most likely to face in 2023 and how to get ahead of them. Our other articles delve deeper into some of the key aspects of talent management today, including career pathing, succession planning and creative strategies for meeting talent needs in a resource-constrained environment. We also feature an interview with Ravin Jesuthasan and John Boudreau, co-authors of “Work Without Jobs,” about their argument for decoupling tasks and skills from traditional roles. This journal is intended primarily to help talent management leaders and CHROs in designing their talent management strategies and activities. But we also encourage recruiting leaders, L&D leaders, and other HR leaders and professionals to apply these insights in their roles. Talent management is a practice with many stakeholders, and everyone has a part to play in making it successful. HR Leaders Monthly | April 2023 3 Defining the Purpose and Scope of Talent Management by Jane Alancheril, Sasha Sevil Tuzel and Jonah Shepp Talent management leaders are responsible for a wide range of talent activities and outcomes, including many they don’t directly own. To succeed in their role, they must understand the purpose of talent management and its essential elements: processes, stakeholder engagement and integration. “What is talent management?” This seemingly simple question doesn’t have a simple answer. As talent management leaders can attest, their work encompasses a variety of activities and objectives, which vary significantly by organization. Furthermore, with today’s frequent disruption and rapid change, talent management leaders and practitioners must evolve with the business environment and respond to different challenges and expectations from year to year — or month to month. So, in defining talent management, the question organizations really need to answer is more complicated: “What does talent management mean today, and what will it mean tomorrow?” When we asked talent management leaders what centers of excellence they were responsible for, we received a wide range of responses (see Figure 1). Leadership development, learning and development, succession management and performance management were the most common responsibilities. But some talent management leaders’ remit encompasses areas Figure 1: Responsibilities of Talent Management Leaders Percentage of Respondents Leadership Development 87% Learning and Development 87% 81% Succession Management 77% Performance Management Organizational Design / Organizational Effectiveness 52% 39% Diversity, Equity and Inclusion 32% Recruiting 29% Talent Analytics 19% Employee Relations Total Rewards Planning 6% 0% 50% 100% n = 31 talent management leaders Source: 2022 Gartner State of Employee Experience Survey Q. Please indicate which COEs you oversee. Select all that apply. HR Leaders Monthly | April 2023 5 such as organization design; diversity, equity and inclusion; and recruiting.1 With so many different tasks to focus on, talent management’s role and purpose can feel unclear. Worse, these activities all take place in different parts of the HR function, creating a tangled web of responsibilities (see Figure 2). Yet this complexity also reveals an essential function of talent management, which illustrates why it’s so important: Talent management revolves around the idea of creating connections between interdependent activities that impact the employee life cycle. The Purpose of Talent Management The various activities involved in talent management all support its fundamental purpose: to ensure the organization has the talent it needs to grow and succeed. To fulfill that purpose, talent management leaders must: • Attract, engage, develop and retain employees. • Enable high performance. • Enhance employee experience and well-being. Figure 2: Talent Management Activities Throughout an Organization Managing High-Potential Employees Acquiring Specific Talent Segments Managing Change Managing Diversity and Inclusion Managing Organization Design Managing Employee Value Proposition Developing Leaders Identifying Critical Talent Assessing and Hiring Talent Identifying Talent Acquisition Needs Managing Succession Analyzing L&D Needs and Investments Managing Employee Performance Building a Total Rewards Strategy Identifying and Managing Competencies Recruiting Executives Developing Critical Talent Segments Designing and Building L&D Solutions Developing Organizational Capability Conducting Talent Reviews Managing Employee Engagement Implementing L&D Solutions Managing Mobility and Career Paths Sourcing Talent Source: Gartner HR Leaders Monthly | April 2023 6 The first two are familiar terrain, but the third is a newer remit for many talent management leaders. Organizations increasingly recognize the importance of employee experience and well-being for retaining talent and driving performance in today’s work environment. Since these activities have such a significant impact on talent management’s core purpose, they should also be part of its portfolio. The Purpose of Talent Management The core role of talent management leaders is to ensure the organization has the talent it needs to grow and succeed. The Three Elements of Effective Talent Management Each talent management model incorporates a different set of activities or workstreams, all of which can be considered part of talent management. Those models often look different depending on the size or maturity of the organization. But at the end of the day, effective talent management at any organization must incorporate three elements: 1. Talent processes and activities that support the employee life cycle, from hire to retire — Talent management is everything from onboarding to hiring, to how you assess and review talent, develop employees and leaders, select and advance successors, or support internal mobility. 2. Ongoing stakeholder engagement to influence and co-create talent solutions — Effective talent management doesn’t just mean running annual processes (such as the performance management process). It requires upskilling and empowering others to effectively manage talent, and co-creating talent solutions that meet the needs of the business and employees. As a client recently told us: “Engaging our stakeholders is often the most important work we’re doing.” 3. Integration to connect talent processes using technology and talent data — Talent management must be integrated, even in organizations that don’t explicitly say they have an integrated talent management model. For example, if you are trying to build a technical talent pipeline, you have to connect your workforce planning efforts to your talent acquisition strategies as well as your development planning and strategies. HR Leaders Monthly | April 2023 7 Most talent management models only cover the first of these elements, but the other two are indispensable. Putting the right processes in place is only a start. The Future of Talent Management Talent management is always evolving, and talent management leaders should anticipate that their role will continue to change in the coming years. The current evolution in talent management is toward greater focus on improving the speed, scale and relevance of talent processes and activities through agile stakeholder engagement and integration. Thinking back to the three elements of talent management — processes, stakeholder engagement and integration — we see an increasing level of interaction among these activities. Examples of these trends include: • Developing minimum viable products to optimize moments that matter (e.g., onboarding) • Building skills strategies to more quickly close talent gaps Upcoming Virtual Events Gartner regularly hosts virtual events across a variety of Human Resource topics. These webinars present an opportunity for you to gain insights from our research experts on making better decisions for your function and organization. Defining Talent Management in an Evolving Future of Work • Scaling development and growth opportunities to all employees The Gartner 2023 HR Benchmarks and Investment Trends • Expanding talent processes (e.g., succession management) • Modifying talent processes for hybrid models Connect Your HR Technology Strategy to Transformational Business Outcomes • Co-creating and executing DEI and employee well-being strategies Strategies for HR Transformation Success in an Uncertain Environment As talent management grows in scope and becomes responsible for a greater range of talent outcomes, talent management leaders must move quickly, adapt, and leverage new tools and methodologies to address a fast-changing set of business priorities. 1 How to Identify, Fix and Prevent Change Fatigue 2022 Gartner State of Employee Experience Survey. This survey was conducted to understand and benchmark employee experience and talent management teams from a functional perspective. The research was conducted online from 31 October 2022 through 7 February 2023. The survey contains responses from 49 heads of employee experience and heads of talent management from various geographies and industries. HR Leaders Monthly | April 2023 8 5 Priorities for Heads of Talent Management in 2023 by Nora Stechschulte 2023 will bring continued disruption and innovation in talent management, including new technology; continued employee burnout; and evolutions in skills, employee expectations and the definition of “talent.” This article explains these trends and proposes next steps for talent management leaders. HR Leaders Monthly | April 2023 9 The past few years have seen continuous disruption, innovations and ever-increasing complexity in the talent management space. 2023 will be no exception. Talent management leaders must work with business leaders to find and retain the best talent amid a background of economic uncertainty, a turbulent talent market, and the continued shift to hybrid work. Following are five key trends they should be tracking in 2023, along with our recommendations for how to respond. 1. Evolving Employee Expectations and a Competitive Labor Market How to Respond: Treat Employees as Humans, Not Just Workers Amid the integration of work and life in the wake of COVID-19, employees increasingly expect their employers to treat them as humans, not just employees (see Figure 1). Despite attempts Figure 1: A Fundamental Shift in Employee Expectations Key Value Drivers for Employees Flexibility Is a Must-Have “Whether or not I can work flexibly would impact whether I stay at my organization.” 49% Disagree or Neutral Well-Being Gains Importance “How important is it to work for an organization that sees you as a person, not just an employee?” 15% Low or Medium Importance 51% Agree Growth Goes Beyond the Role “How important is it to you to work for an organization that provides opportunities to learn skills that will make you more employable outside the organization?” 23% Low or Medium Importance 85% High Importance 77% High Importance n = 4,264 employees worldwide n = 3,000 candidates n = 3,000 candidates Source: 2021 Gartner Hybrid Work Employee Survey Source: 2021 Gartner Candidate Survey Source: 2021 Gartner Candidate Survey HR Leaders Monthly | April 2023 10 to modernize the employee value proposition (EVP), employee engagement has remained stagnant since 2016.1 Meeting employees’ new expectations is critical, as employees have little hesitation and plenty of opportunity to leave: • Seventy percent of surveyed employees are actively looking for or open to new job opportunities.2 • Fifty-one percent of surveyed candidates have had a company reach out to them about a job opening without applying first.3 As part of their call for more human treatment, employees want flexibility. Eighty-six percent of employees said it was important that their organizations offer location-based flexibility, and 91% said it was important that their organizations offer hour-based flexibility.2 Employees also want more transparency, especially when it comes to pay, yet only 40% of employees say their organizations are transparent about their pay practices.4 Furthermore, as a new generation enters the workforce, employee expectations around growth and development have evolved. Young workers not only want opportunities to advance their careers but also want to develop fast-changing skills and achieve certifications to document those skills. Additionally, they want opportunities to explore multiple areas of interest to find the career paths best-suited to them. In fact, Gen Z employees are more likely than any other generation to report they would stay with an employer for upskilling and reskilling opportunities.5 To meet increasing employee expectations and improve retention rates, talent management leaders should consider: • Creating and deploying a listening strategy to understand the unique concerns of employees at their organizations 2. An Expanding Definition of Talent How to Respond: Acknowledge All Workers as Important, Not Just HIPOs and FullTime Employees The definition of talent has expanded over the past few years and will continue to evolve in the coming years. The workforce has become extremely diverse, not only in demographics but also in preferred working styles, skills and types of employment. Heads of talent management must navigate this changing workforce and adapt their organizations’ employment models to support diversity in career trajectories. One shift heads of talent management must adapt to is the increasing number of contingent or gig workers. The gig economy is expected to reach a gross volume of $455.2 billion this year.6 As contingent workers become a larger part of the workforce, they play a bigger role than ever before in driving business results. In response, talent management leaders must integrate them into the organization, instill cultural norms, and consider their development and retention. Many talent management leaders are also reevaluating their definition of high-potential (HIPO) talent and determining whether their talent assessment approaches align with their strategies and EVPs. Leaders increasingly recognize that all employees have potential. The question is, potential for what? To ensure all employees receive the right growth opportunities, progressive organizations provide actionable next steps for all talent segments, including future leaders as well as valued performers and core talent. • Finding opportunities to practice transparency with employees and encouraging other HR leaders to do the same, especially when it comes to pay • Offering employees flexibility on at least one of the following: when they work, how they work and where they work • Making career pathing and employee development a priority HR Leaders Monthly | April 2023 11 To adapt their organizations to the new definition of talent, talent management leaders should consider: • Building processes to integrate contingent workers into the organization and help them adapt to the organization’s culture • Updating talent assessment and development strategies to ensure all employees are treated as having potential for growth 3. Innovations in HR Technology How to Respond: Use Tech to Improve Efficiency and the Employee Experience, Not Just to Integrate Processes As technology continues to evolve, the head of talent management’s role in implementing innovative uses of technology and digitizing HR continues to grow. As in years past, heads of talent management will continue to integrate and automate HR processes using human capital management (HCM) platforms. However, they must be mindful that the shift to self-service or automation often redirects accountability for HR processes away from HR professionals and toward managers and employees themselves. Shifting responsibility to managers and employees through self-service can reduce unnecessary bottlenecks, and automation can improve efficiency; however, talent management leaders must ensure HR experts still support certain complicated or sensitive processes when needed. To drive engagement and retention, heads of talent management should consider the use of gamification for rewards and recognition as well as learning management platforms. Skills management and learning experience ranked as the top two priorities for HR tech leaders in 2023.7 Certificates, badges and game-like learning interfaces can help boost engagement and skills development, improving overall retention. Finally, heads of talent management should begin to explore the use of large language models, such as ChatGPT, within their function. They should determine potential use cases (such as creating job postings or drafting performance reviews), identify risks and set guardrails before introducing this technology. To improve technological maturity in talent management, talent management leaders should consider: • Continuing to streamline and automate key talent processes with support from IT and other HR leaders while considering what should and should not be made self-service • Testing the use of gamification for rewards and recognition to improve engagement • Utilizing AI to support talent acquisition and talent management through smart advertising, candidate sourcing and internal talent marketplaces • Exploring use cases and risks associated with the implementation of large language models Heads of talent management must also work within HCM platforms or with IT leaders to implement the use of AI for talent acquisition and talent management. Thirty-nine percent of HR technology leaders listed implementing AI for talent acquisition as a top three priority for 2023.7 AI can power smart advertising and candidate sourcing, reducing the time it takes to fill key positions. It can also help power an internal talent marketplace, matching employees to opportunities within the organization to improve internal talent mobility and support the shift to skills-based project placement. HR Leaders Monthly | April 2023 12 4. Continued Employee Burnout These include: How to Respond: Address the Causes of Burnout, Not Just the Symptoms • Overwhelmed teams — Teams have too much work and struggle to ensure they’re working with the right people and with the right information. Despite organizations’ increasing efforts to reduce burnout through well-being initiatives and improved benefits, employees continue to report fatigue and low levels of workforce health. Forty-four percent of employees report feeling emotionally drained from work.2 Well-being resources are a good start, but they only treat the symptoms of burnout. • Trapped resources — Legacy approaches to budgeting and staffing don’t represent the fluid way resources need to move today (see Figure 2). • Rigid processes — Centralized and standardized processes don’t flex enough for the experimentation and nonstandard ways of working needed in a more responsive culture. Heads of talent management must dig deeper and address the root causes of burnout. Figure 2: Causes of Burnout Overwhelmed Teams I struggle to find the right information to do my job. It is difficult to identify the people in my organization who can help me do my job well. Trapped Resources In my team, we don’t have sufficient budget to get our work done. The people on my team are not the people we need. We don’t tweak the operating budget throughout the year once it is set. The volume of tasks keeps rising. Rigid Processes My work is regularly delayed by specific colleagues or teams in the organization. Decisions take longer to make than they should. It takes too long to secure signoff for new approaches or ideas. Source: Gartner HR Leaders Monthly | April 2023 13 To address these root causes, talent management leaders must first offer better support to their managers and line leaders. Often, managers are responsible for ensuring the well-being of their employees without anyone looking out for the managers themselves. Only 37% of managers report high levels of health.8 Initiatives that are offered to employees, such as meeting-free days, flexibility and workload management support, must also be offered to managers. Second, heads of talent management must consider ways they design work itself to prevent employees from feeling overwhelmed. They should identify points of friction — such as multiple layers of signoff or outdated work processes — that can be eliminated to make employees’ jobs easier. They should then equip managers with the tools to help their teams reprioritize and stop doing unnecessary work. To treat the causes of burnout, talent management leaders should consider: • Providing extra support and resources to managers • Redesigning and reprioritizing work to eliminate friction and unnecessary workflows 5. Rapidly Changing Talent Needs and High Turnover How to Respond: Move From Role-Based to Skills-Based Talent Management With rapid improvements in technology and constantly changing business priorities, the skills required to meet organizational needs are continuously evolving. The total number of skills required for a single job is increasing by 5.4% annually, and 33% of the skills required in a 2019 job posting will not be required by 2024.9 Shifting skills needs, combined with high turnover rates, have made it difficult for organizations to deliver on business priorities. As a result, many heads of talent management are considering a shift to skills-based talent management, which allows flexibility in how talent is deployed and prevents critical skills from getting trapped in one area of the business. A skills-based model focuses not on the task, region or business unit but on skills proficiency. If employees are proficient in a certain skill, they can work on projects anywhere in the organization where that skill is needed rather than sticking to a particular area of the business. The shift to skills-based talent management requires heads of talent management to rethink their internal mobility strategies. When backfilling positions, creating succession plans or even staffing projects, they should consider employees who have the right skills for the position regardless of their current role. They must also encourage recruiters to look beyond experience when evaluating candidates and emphasize skills proficiency instead. HR Leaders Monthly | April 2023 14 To transition to a skills-based talent management model, talent management leaders should consider: • Designing skills-based roles during strategic workforce planning rather than task-based roles • Adapting performance management processes and total rewards to skills-based planning — for example, by creating skills-based competency frameworks and rewarding employees based on skills proficiency rather than completion of tasks 1 2016-2020 Gartner Global Labor Market Surveys. This was a panel survey carried out once every quarter. Every quarter, about 25,000 employees globally participated in this survey. Responses were collected in more than 15 different languages from employees in 40 different countries. 2 2022 Gartner New Talent Landscape and Career Pathing Survey. This survey was conducted to better understand employees’ attitudes toward the hyper competitive labor market and their feelings on career pathing in hybrid roles. The survey was conducted online from 28 February to 23 March 2022 and contains responses from 3,370 employees with representation from various regions, industries and functions. 3 2022 Gartner Candidate Survey. This survey was conducted online from 6 May through 7 June 2022. A total of 3,621 candidates from 14 countries, 23 industries and 20 functions were polled on their experiences and behaviors during the hiring process. Respondents were required to meet the following criteria: (1) applied for one or more jobs in the past 12 months, (2) contacted by at least one organization to complete an assignment or participate in an interview in the past 12 months, and (3) working at an organization of 1,000 or more employees. 4 2022 Gartner Total Rewards Pay Equity and Transparency Survey. This survey was conducted to understand various aspects of organizations’ approaches to pay equity and communication design. The research was conducted online from 14 April through 19 May 2022 among 3,523 employees with representation from various geographies, industries and functions. 5 2022 Great Resignation: The State of Internal Mobility and Employee Retention Report, Lever 6 Gig Economy in the U.S. — Statistics and Facts, Statista 7 2022 Gartner HR Technology Priorities Survey. This survey set out to learn about the most critical HR technology issues impacting HR leaders. Two surveys were conducted. The first was a client survey from 5 October to 21 October; 138 responses were received. The second was a funded non-client survey from 21 November to 13 December; 201 responses were received. Respondents were full-time, director or above in the HR, IT, or executive management function with authority in budget and purchasing decisions. 8 2022 Gartner Workforce Change Fatigue Survey. This survey was conducted to understand the levels of change fatigue among employees and the manager’s role in mitigating change fatigue. The research was conducted online from 28 February through 16 March 2022 among 3,548 respondents (including 1,705 managers) from various geographies, industries and functions. Responses to this question came from 1,705 respondents who identified themselves as managers. 9 Powered by TalentNeuron • Working with learning and development and business leaders to develop learning agility throughout the organization • Ensuring recruiters consider applicants’ skills proficiency, not just their experience Conclusion As the head of talent management role becomes more prevalent, it becomes increasingly complex and bears responsibility for ensuring the organization is equipped to build the workforce of the future. Heads of talent management must strive to proactively address challenges and disruptions in 2023, starting with these five trends. HR Leaders Monthly | April 2023 15 HR Transformation Toolkit HR transformation is more urgent now than ever before, as talent becomes an even greater driver of competitive advantage. It’s critical for success in a world with new cost pressures, hybrid work models and ever-evolving employee expectations. This toolkit provides actionable resources to support a successful HR transformation, including: World-class leadership Modern HR operating model Future-proof HR team competencies HR technology enablement Download Your HR Transformation Toolkit Source: Gartner © 2023 Gartner, Inc. and/or its affiliates. All rights reserved. CM_GBS_2154099 HR Leaders Monthly | April 2023 16 How to Use Talent Resources More Effectively in a Constrained Environment By Sarah Jackson In an environment where organizations face talent and budget constraints, HR leaders must be resourceful and adaptive in meeting talent needs. By using innovative resourcing approaches for critical work, HR leaders can deliver effective solutions in times of uncertainty and constraint. Many organizations are struggling to acquire the talent they need due to labor market shortages or budget constraints. While the underlying cause of the challenge differs by organization or industry, the result is the same: HR leaders are being asked to do more with less. In an environment of talent and budget constraints, the need to assess and allocate talent resources in line with the speed of business becomes paramount. HR leaders need to reinvent the way they address critical work and deliver talent solutions in a more adaptive way. They should start by prioritizing critical roles and deconstructing them into tasks. This process will help them understand current and near-term talent priorities and ensure they are using their limited resources in a targeted way. HR leaders should then focus their efforts on redistributing tasks across the talent ecosystem using dynamic and innovative resourcing strategies. Meet Critical Talent Needs With Dynamic Resourcing Solutions Traditionally, organizations have built or bought talent to meet their resourcing needs. In fact, HR leaders have been twice as likely to fill talent gaps through building or buying initiatives compared to any other talent strategy.1 However, when facing budget constraints, long-term demographic shifts, high turnover and fierce competition for top talent, building or buying initiatives become less viable. Instead, HR leaders need to explore more creative options, moving beyond role-based solutions to resource work tasks in a more fluid and iterative way. Figure 1: Reallocation of Tasks Beyond Building and Buying Solutions Low High Disruption New Role Creation Role Configuration Group a set of tasks into a new role. Increase scope of role or employeeowned specialization of role. Internal Redeployment Make internal movement or rotations based on tasks. Secure-Flex Work Models Connect gigified employees to projects of interest. Organizational Design Create a generalist pool that operates in a flow-to model. Task Self-Selection List all internal work in task form for employees to choose work. Automation and Artificial Intelligence Replace monotonous, rote tasks with automation or AI. Source: Gartner The resourcing solutions organizations engage in fall on a spectrum, ranging from less disruptive (such as new role creation) to more disruptive (such as task self-selection) (see Figure 1).2,3,4,5,6 Regardless of the level of disruption, each solution provides more slack in the talent ecosystem, allowing organizations to supply the business with talent inputs and complete critical tasks in resource-constrained environments. closed, but it needed more employees supporting its mortgage business, which was experiencing high demand. Rather than making layoffs in retail and hiring externally for mortgages, TDECU used internal mobility to transfer employees within the organization. It made these transfers based on tasks to ensure the transferred employees could utilize their existing skill sets in their new positions. Following are some of the innovative approaches we have seen organizations take to meet talent needs outside the build/buy paradigm. In a changing, uncertain and resource-constrained environment, these strategies benefit employees and employers alike. Internal redeployment can be mutually beneficial for the employee and the employer during times of talent and budget constraints. It provides employees with the opportunity to learn new skills, expand their networks and find new meaning in their work. And it allows organizations facing budget constraints to be more cost-effective by mobilizing their current talent to reduce the need to hire new full-time employees. For organizations facing talent constraints, redeployment increases their agility in the face of constant change. They’re able to creatively leverage existing knowledge and skills when they are unable to acquire new external talent in a timely manner. Internal Redeployment Credit union TDECU provides an interesting case for internal redeployment: a resourcing solution that 57% of HR leaders already use.7 TDECU experienced temporary areas of excess talent supply and demand during the COVID-19 pandemic. Retail branches were temporarily HR Leaders Monthly | April 2023 19 Secure-Flex Work Models Secure-flex work models provide employees with both the flexibility of gig work and the security of permanent work. An example of a secureflex work model is Unilever’s U-Work concept.3 Through the U-Work model, employees work on varying assignments rather than in a fixed role. They receive a monthly retainer and benefits, and they get paid for each assignment they complete. U-Work employees can design their own work patterns, selecting assignments that range from a few days to a few months long and align to their areas of interest and skill. In return for the flexible working approach employees get in a secure-flex model, organizations experiencing budget constraints get a more economical way to pay employees for the work they do. Organizations experiencing talent constraints can also use secure-flex approaches to access skilled talent for upcoming tasks and projects more fluidly, tapping into critical talent resources as needed. This concept also enables organizations to expand their talent pools to include workers transitioning to retirement or individuals who only want to work part-time. Using employees who are already familiar with the organization increases speed to productivity and cultural alignment, for which organizations would normally need to account when externally hiring gig or contract workers. Automation and AI Finally, organizations are exploring increasingly sophisticated ways to incorporate automation and AI into their talent strategies. White Castle, for example, has been experimenting with using robots to flip burgers in its restaurants. The intention is to alleviate some of the pressure on employees and allow them more time to focus on customers.4 By automating this routine, monotonous task, White Castle can create a less stressful, more engaging experience for its frontline workforce. While automation and AI solutions often require a substantial initial investment, they help organizations facing budget constraints by reducing the longer-term costs of hiring new fulltime employees, onboarding, training and time to productivity. For organizations facing talentconstraints, automation and AI lessen the burden on the existing workforce by removing tasks from its workload, thus reducing the risk of burnout. Automation and AI solutions work well for tasks that are repetitive, have low human centricity and don’t provide high levels of employee fulfillment. Choosing the Right Solution There is no one-size-fits-all approach here, and different resourcing solutions will suit different organizations. To find the best-fit solution, HR leaders should first assess the tasks within the critical roles at their organizations against core Table 1: Priorities for Organizations in Each EX-Ready Quadrant If ... Keep Create Expand Create Apply Use Internal Leverage Task in New Task Into Redeploy Specialized SecureDeploy Project Contigence Slated Role for Other Internally Center of File x Work AI Marketplace Labor Role Tasks Roles Excellence Model ... portability is high ... portability is low ... fulfillment is high ... fulfillment is low ... complexity is high ... complexity is low ... human centricity is high ... human centricity is low ... interdependence is high ... interdependence is low ... recurrence is high ... recurrance is low ... ease of learning is high ... ease of learning is low ... task time is high ... task time is low ... regulation is high ... regulation is low criteria such as portability, complexity and human centricity. This will allow them to consider which resourcing solutions may be an option for their specific needs (see Table 1). After identifying possible resourcing options, HR leaders should determine which solutions would be most appropriate and realistic for their organizations using criteria such as cost, time, value, viability and impact on the workforce. For example, HR leaders may have identified from the task assessment that deploying AI could be an option, but if they are facing time constraints, this may not be the most appropriate solution given the implementation time AI requires. HR leaders should also be thoughtful about the number of solutions they adopt in order to preempt challenges in accountability, talent management and work friction. Conclusion When organizations face talent and budget constraints, they must find innovative ways to meet talent needs in a resourceful and adaptive way and deliver on business priorities without burning out the existing workforce. By deconstructing critical roles into tasks and using innovative resourcing solutions to execute these tasks, HR leaders can ensure critical work gets done in the most effective way, at the speed of business. 1 2 3 4 5 6 7 2022 Gartner “Building Workforce Planning Maturity With Targeted Investments” Webinar Poll (18 May). Responses were provided by 89 HR practitioners. Questions included “Do you have a trusted system for evaluating employee skills?” and “Select the talent strategies you use to fill skills gaps.” Workforce Planning in the Age of COVID-19, SHRM. Future Workplace, Unilever. White Castle to Hire 100 Robots to Flip Burgers, Today. Should Employees Be Allowed to Choose What They Want to Do? INSEAD Knowledge. Information on the practices of Goodway Group, TDECU and BBVA was shared with Gartner through interviews with, and documentation provided by, the companies. 2023 Gartner “Does Strategic Workforce Planning Still Have a Place in 2023 and Beyond?” Webinar Poll (7 February). This poll was conducted as part of a webinar and includes responses from 101 HR leaders across all regions and all major industries. HR leaders were asked: “Which of the following alternative resourcing strategies does your organization currently use? Select all that apply.” HR Leaders Monthly | April 2023 21 Strategies to Improve Succession in a High-Disruption Environment By Kelly Armstrong In the wake of work environment changes, traditional leadership succession processes are ill-equipped to produce and retain the best successors. Talent management leaders can use this research to learn best practices for building strong leadership pipelines amid disruption. Succession is an essential talent management tool — not only for long-term planning but also for employee engagement and retention. Ninetyfour percent of HR leaders say it’s important that their formal succession processes help them retain high-caliber talent.1 However, in the current business environment, traditional succession planning strategies can’t keep up with the pace of disruption and change. Close to two-thirds of HR leaders say talent shortages and attrition will have a major impact on their 2023 talent strategies.2 High turnover weakens succession pipelines and leaves organizations with fewer options for filling critical roles. The shift to hybrid work has also created succession challenges. Underrepresented talent is often less visible in a hybrid environment, and leaders may be unaware of many potential successors. Fifty percent of HR leaders say their organizations require employees to work in the office at least once per week;3 however, on-site work requirements are unlikely to solve disparities in visibility between employees who primarily work outside the office and those who spend more time in the office. To strengthen leadership benches in this environment, talent management leaders must move beyond traditional models and evolve their succession processes to be more adaptive, equitable and human. These three attributes are the foundation of a succession strategy that meets employees’ evolving expectations while developing and retaining leaders who are equipped to handle a fast-changing set of business needs. build opportunities throughout their succession planning processes to make critical adjustments as business needs change. Roles often change with business needs, so assessing role design should be a regular part of the succession process as well. Bridgestone, for example, has adapted its approach to succession planning to reflect this reality. Engage in Adaptive Succession Planning to Meet Changing Needs Talent management leaders should regularly reevaluate their organizations’ succession plans by integrating conversations about succession planning into natural business rhythms. For example, they might encourage business leaders to invite HR business partners (HRBPs) to key recurring business unit meetings. This approach facilitates discussions about how strategy changes affect the business unit’s succession plans. Or, if a successor is involved in a critical project, talent management leaders could ask HRBPs to gather information on how the project affects the successor’s readiness for the future role. In an environment of constant change and disruption, succession processes must be resilient. Talent management leaders should Succession should be a continuous conversation to fully integrate the organization’s talent and business strategies. HR Leaders Monthly | April 2023 23 Case in Point: Agile Succession Planning Facilitate Equitable Succession Planning With Relationships and Advocacy Before discussing who should fill a critical role, Bridgestone’s HR and business leaders analyze the role itself and consider making changes based on current and future business needs. They ask questions like, “If the person in this critical role leaves, would we keep this role?” and, “Knowing our strategy and future goals, do we need this role as it looks today?” If a change is needed, Bridgestone’s leaders eliminate the role, split it up based on potential successors’ current capabilities or redesign it based on strategic goals. Organizations want more diverse leadership benches, but succession pipelines are not currently diverse. The second most common challenge for HR leaders in succession planning is that they lack a diverse set of succession candidates.1 To advance diversity within the organization, senior leaders must be aware of, and advocate for, underrepresented talent, as leaders are often the driving factor in progressing diverse talent. But it’s even more difficult for leaders to be aware of underrepresented talent in a hybrid world, as employees spend less time face-to-face with colleagues outside their immediate teams. This lack of direct interaction may cause leaders to prioritize candidates with whom they work more frequently in succession decisions, overlooking other qualified, diverse candidates. Bridgestone To prepare its talent to step into roles as business needs change, Bridgestone creates pools of potential successors for roles that are duplicated across multiple business units. (For example, multiple business units may have a vice president of finance.) These cross-business talent pools increase the number of available successors for a given role, which makes it easier to fill critical roles if someone leaves suddenly (see Figure 1). Having more successors to choose from also makes it easier to pick the right person for a critical role to fit the organization’s needs. Figure 1: Bridgestone's Talent Pools VP of Finance Talent Pool To be placed in a talent pool, employees must: • Have high-potential status. • Have relevant experience and skills for the associated role. • Be willing to move across business units. • Have learning agility (adapt well to new situations). These criteria ensure Bridgestone’s succession process is adaptive and identifies leaders who are adaptable. VP of Finance BU 1 VP of Finance BU 3 VP of Finance BU 2 Source: Adapted From Bridgestone HR Leaders Monthly | April 2023 24 Case in Point: Talent Profiles Corning HR leaders at Corning created talent profiles that leaders throughout the organization can view, improving the visibility of the global talent market (see Figure 2). These talent profiles and scorecards facilitate talent planning meetings as well as conversations among HR, managers and employees about succession, career pathing and development. Corning also developed an advanced talent search tool, enabling HR and managers to discover talent and potential successors from throughout the global organization. Employees and managers update these profiles throughout the year, making edits on Corning’s HR information system platform. The frequent use of the talent profiles and scorecards for talent conversations helps create social pressure to have up-to-date data. Figure 2: Corning's Talent Profiles Illustrative Sam D, Boston, MA, Director of Engineering Employee Talent Profile Employee Talent Scorecard Employee-Entered Information Visible Across the Organization Manager-Entered Information Visible to Select Managers and HR Work History (Corning) Glass engineer Talent Designation Emerging talent Work History (Pre-Corning) Materials engineering, tech industry Performance History 2020 — Fully met expectations 2021 — Exceeded expectations Significant Career Accomplishments Led design of cuttingedge glass tech Strengths Relationship Building, motivating others Career Aspirations (Limited VP, engineering, display View*) Areas of Development R&D management, visibility across the organization Development Objectives (Limited View*) Drive innovation across team Possible Future Positions Senior director, VP Mobility (Limited View*) Willing to relocate globally Succession Plans VP, engineering (readyfuture) Skills Profile Critical reasoning, leadership Source: Adapted From Corning * Limited View = Visible only to the employee's manager and HRBP HR Leaders Monthly | April 2023 25 Talent management leaders can counteract this reduced visibility by sharing data on equity gaps and making it easier for leaders to address them. Talent management leaders should ensure leaders are aware of all the great talent within the organization by making it easier for leaders to compare succession candidates with whom they work less frequently. Talent management leaders should also encourage leaders to form relationships with a diverse set of high-potential talent. Such relationships enable leaders to advocate for those individuals during succession conversations. Advocacy can improve the visibility of talent working in remote environments. Leaders can form such relationships, for example, by organizing a formal networking framework that empowers employees (both remote and not remote) to build and manage networks effectively. Craft a More Human Experience to Retain Successors Retaining high-caliber talent is HR leaders’ most important succession planning objective. To maximize the retention impact of succession planning, talent management leaders should consider it not just a process but an opportunity to enhance the successor’s employee experience. This successor experience should build upon the organization’s employee value proposition and deliver a more human deal that focuses on making successors feel trusted and cared for by the organization. To show successors they are trusted, talent management leaders must be transparent about the succession planning process. Currently, only 29% of HR leaders share with successors how the succession planning process works.1 HR Leaders Monthly | April 2023 26 For example, after recognizing that its employees were unsure of the value of talent profiles, Corning launched a new video campaign to be more transparent about the talent planning process and why talent profiles matter. These videos answered questions such as “How is my talent profile used in talent planning?” and “Why is talent planning important?” Corning clearly outlined the steps and intentions of its talent planning process and used various visualizations (such as animation and business leader testimonials). It also incorporated incentives, such as a gift card lottery, in its communication campaign. To ensure successors feel cared for by the organization, talent management leaders should incorporate successors’ aspirations into succession plans. Traditionally, HR and business leaders own the succession process and do not take employee aspiration into account. This can lead to potential mismatches, where an employee is included in a succession plan but has no interest in working that role. Such mismatches create engagement and attrition risks. To avoid succession mismatches, Bridgestone has managers and employees discuss the employees’ career goals. Then, managers share relevant information with HRBPs and leaders, who can update the organization’s succession plans based on the outcomes of those conversations (see Figure 3). Bringing employees into the succession process and listening to their career aspirations reassures them that the organization cares about them. High-quality career conversations will make employees feel not only cared for but also invested in the organization when those conversations are then used to alter the succession plan. On the other hand, if managers shy away from such conversations, potential successors may perceive it as a lack of trust. Organizations should not lose top talent because managers are not prepared to have high-quality career conversations or fear making talent feel entitled to certain roles. For more impactful career conversations, talent management leaders should recognize each successor’s potential, discuss that successor’s career path and focus on key experiences that will make them competitive for more senior, critical roles. Figure 3: Bridgestone’s Process for Incorporating Employee Aspiration Into Succession Manager and Employee Discuss Employee’s Career Goals The leadership team and I see a bright future for you in sales! Manager I’d actually like to try applying my skills in marketing instead. Jack HR Updates Succession Plans to Reflect Employee Aspirations Jack shared with me that he wants to move into a marketing role. Manager We should take him off the succession plan for the sales VP role then. HRBP Source: Adapted From Bridgestone HR Leaders Monthly | April 2023 27 Conclusion Traditional succession processes struggle to keep up with the new demands of the work environment. These plans are too static, and they’re not helping organizations retain the diverse and capable group of leaders they need now and in the future. To address these new demands, succession planning needs to become more adaptive, equitable and human. Adaptive succession planning allows organizations to ensure their talent strategies keep up with a fast-paced business environment. Equitable succession planning helps organizations continue to meet diversity goals in leadership in more distributed environments. Human succession planning enables organizations to take every opportunity to engage and retain the best talent. 1 2 3 2022 Gartner Leadership Development HR Leader Survey. This survey was conducted online from 29 July through 29 August 2022. Thirtythree heads of talent management and 29 other HR leaders responded with representation from various industries across 14 countries. 2022 Gartner “Benchmark With Gartner: Preparing for 2023, Workforce Planning, Talent Trends and Predictions” Webinar Survey (14 December). This poll was conducted in a benchmarking webinar attended by over 330 HR leaders from around the world (the majority based in North America) and representing a variety of industries. Of these, 159 participants responded to the question, “Which trends have you been thinking about as part of planning for your organization’s 2023 talent strategy?” Disclaimer: Results of this survey do not represent global findings or the market as a whole but reflect the sentiments of the respondents and companies surveyed. 2022 Gartner “Benchmark with Gartner: Strategies to Attract and Retain Talent in Times of Economic Volatility” Webinar Poll (16 November). This poll was conducted to benchmark strategies that organizations are using to attract, retain and engage talent. The poll was conducted online on 16 November 2022 among 150 HR leaders representing a spectrum of industries. The majority were based in North America, though the perspectives and practices they shared were developed to support their global organizations. Disclaimer: Results of this survey do not represent global findings or the market as a whole but reflect the sentiments of the respondents and companies surveyed. HR Leaders Monthly | April 2023 28 Evolve Culture & Leadership for the Hybrid Workplace Today’s workplace is hybrid by default. Accepting hybrid as a permanent feature of the modern workplace actually creates an opportunity for organizations to evolve their approach in two key areas: reshaping culture and equipping leaders. Leverage this 12-month roadmap to evolve culture and leadership for a sustainable hybrid workplace. Download your 12-month action plan © 2022 Gartner, Inc. and/or its affiliates. All rights reserved. CM_GBS_1803851 HR Leaders Monthly | April 2023 29 Career Pathing for a Fragmented Work Landscape by Shannon Wiest and Tess Lawrence Mounting turnover rates in an already hypercompetitive labor market are increasing HR leaders’ uncertainty about how to support employee career growth. CHROs can use the following tactics to maximize their investments in this area and ultimately improve employee engagement and retention. HR Leaders Monthly | April 2023 30 Career opportunities are a key attraction and retention driver. In hybrid work settings, however, employees are more likely to seek external opportunities when internal opportunities are less visible, or when they do not trust that internal opportunities will be comparable to their external options. To secure higher engagement and retention, CHROs must think differently about the careers they can offer and establish a partnership with employees to create compelling career paths. Typically, organizations rely on successful internal communication to provide information about in-role opportunities for employees to grow their careers. In addition, many organizations offer special projects outside the scope of employees’ current roles, including stretch opportunities. But, despite these investments, only 39% of job seekers said they are interested in internal roles.1 While compensation is the main driver for employees interested in external roles, jobs that provide a new start or a change in their career or environment, or that make it easier to be promoted are attracting employees at similar rates (see Figure 1). Employees are seeking new experiences and assurances that growth is achievable — and many believe they must search externally to find them. Figure 1: Why Employees Are Interested in External Roles Percentage of Employees Indicating Each Significantly Higher Compensation 45% 30% Greater Flexibility 28% A New Start 27% Change in Environment 25% Career Change Easier to be Promoted 0% n = 484 employees actively looking for a new job 23% 25% 50% Source: 2022 Gartner New Talent Landscape and Career Pathing Survey HR Leaders Monthly | April 2023 31 Figure 2: Maximum Impact of Tools on Employee Confidence in Careers Percentage of Respondents Career Management Support 31% Internal Networking Opportunities 31% Career Success Stories 19% Job Rotation Programs 19% 17% Visual Examples of Career Paths 15% Newsletters About Opportunities Limited Impact 14% Internal Job Fairs 3% Internal Job Boards Self Service Tools to Identify How to Build Skills Tools to Experience Career Options Tools to Provide Information About Career Options 0% 0% 20% 40% n = 3,370 employees Q. “I am Confident I Will Have a Successful Career at my Organization.” Source: 2022 Gartner New Talent Landscape and Career Pathing Survey To stay ahead of the curve, CHROs must ensure their career strategies are visible to employees and tailored to employees’ needs. They can improve the experience of career growth for their employees by targeting three phases: setting employees’ career trajectories, progressing employees’ careers and achieving employees’ goals. Setting Employees’ Career Trajectories As work becomes increasingly distributed, employees have fewer organic touchpoints with colleagues on different career tracks. Employees today spend 65% less time in offices than they did prior to the COVID-19 pandemic, making it more difficult to collaborate across roles and observe other career options.2 Meanwhile, only one in four employees strongly agrees they feel confident about their career at their organization.1 Limited confidence, compounded with the lack of visible opportunities, makes employees feel stuck in their careers and think they have no option but to look outside the organization. To mitigate this issue, organizations are investing in various tools to support employees’ careers. However, prioritizing investments in tools that only provide information about careers is insufficient. Employees need to experience career options in more individualized ways, such as career management support and internal networking opportunities. Investing in these areas, in particular, can boost employees’ confidence in their careers by 31% (see Figure 2). To help employees set their career trajectories, organizations should start by being transparent about job openings, internal role benefits and requirements. But more than that, they should give employees real experience in potential career trajectories by being flexible about role design and mobility. One option is providing “career experiments,” in which employees try HR Leaders Monthly | April 2023 32 different career options without the formality of applying for a new role. time, the transferred employee would expand and develop in the role (see Figure 3). TDECU does this by breaking roles down into tasks that can be performed by employees from different areas of the business — for example, by employees in either high-demand or high-supply roles. TDECU prioritizes high-level tasks that overlap between roles, meaning employees in high-supply roles will already be proficient, or can quickly upskill. Once these tasks are identified, TDECU uses temporary mobility to shift the overlapping tasks from an established employee, who is already working in a high-demand role, to a “transferred” employee, who will temporarily own some of that role’s responsibilities. This shift allows the established employee to take on other high-value tasks and stretch opportunities. In addition, making this a temporary trial period allows the transferred employee to try out a new role and determine whether they want to work for that part of the business. The experience also provides a clear development plan for how, over Progressing Employees’ Careers As the skills and experiences needed for future roles continue to rapidly evolve, employees are feeling less prepared for the transitions they’ll make in the future. Ninety-four percent of employees believe it is more or as important now, compared to before the pandemic, to develop skills outside their current roles. However, not even one in three employees has a clear sense of how to progress their career over the next five years.1 To help employees progress their careers, organizations should offer in-role development opportunities that can prepare them for potential roles. HR leaders can help employees dynamically track their career progress at the organization by crowdsourcing diverse career Figure 3: TDECU: Task-Based Redeployment Example of Identifying Task Overlap Across Roles Tasks Each Role Can Do A Employee in High-Demand Role (e.g., Mortgage FSR) B C D E D E F G Rather than moving employees in high-supply roles into existing high-demand roles, first split positions by tasks, so transferring employees can specialize where they’re already proficient or likely to be quickly proficient. H Employee in High-Supply Role (e.g., Retail FSR) Source: Adapted From TDECU HR Leaders Monthly | April 2023 33 development examples and matching employees with multiple potential routes. For example, EY has employees lead in the design and communication of their experiences. This allows them to surface more options that align with their personal interests and can boost employee engagement (see Figure 4). on commitments to a shared purpose, offer flexible work options and holistically support employees’ well-being. But, despite these expectations, less than half of employees (41%) feel comfortable sharing their concerns with their leaders — and even fewer female employees (39%) feel comfortable doing so.3 Achieving Employees’ Goals To help employees achieve their personal and professional career goals, organizations should support managers in working with employees to identify potential internal roles that will align with those goals. HR leaders can offer objective channels that provide unbiased support for employees to reflect on what career would best suit their needs. In doing so, they can help employees look beyond their current roles and see how the organization can support them in achieving their goals. Since the onset of the pandemic, employees’ perceptions of the role that work has in their lives has changed — likely indefinitely. In particular, employees are looking for opportunities to take more ownership over how and with whom they spend their time. Gartner’s 2022 New Talent Landscape and Career Pathing Survey found that:1 • Seventy-six percent of employees want to spend more time with family. • Seventy-five percent want to spend more time on their personal lives. • Sixty-eight percent want to find purpose beyond work. While these factors have always been important, employees today expect their employers to act S&P Global does this by providing employees with career coaching opportunities that prioritize their individual needs, not just the needs of the business. During these coaching conversations, employees share their personal interests, aspirations, passions and motivations. Coaches then provide a range of options for employees to pursue both within and outside the company, including temporary moves such as stretch Figure 4: Employee-Led Growth Experiences Employee Shares If All the Following Are True: • It is a skill, opportunity or insight relevant to other employees. • It extends beyond professional to include personal opportunities. • Employee is willing to connect others to the opportunity. Employee Experience Fund 1. Volunteering or Board Opportunity 2. Grad School Consideration 3. Management Coaching 4. Python Skills 5. Résumé Review 6. … Employee Uses If All the Following Are True: • They can determine how this will balance with their role. • This opportunity will expand personal or professional capabilities. • They can commit to the identified time frame or requirements. Source: Adapted From EY HR Leaders Monthly | April 2023 34 Figure 5: Interest-Focused Discovery Guide Illustrative S&P Global’s People-First Approach Part I: Background and Goals • Tell me about your career trajectory so far. • What made you seek coaching? Part II: Desired Experience • What are you passionate about? If obstacles did not exist, what would you be doing? • What activities do you love that make you lose track of time? • What kind of experiences are going to drive and energize you every day? • What does success look like to you? Focus on the person, not the employee. Part III: Next Steps • What sort of solution would be most fulfilling? Are you looking to add to your current position? Find new opportunities? Shift your trajectory entirely? Source: Adapted From S&P Global assignments and rotations, and permanent moves such as a new role (see Figure 5). Effective career coaches should be specialists who are outside the employee’s manager’s purview to ensure their views are not limited to the role, the immediate team or the manager’s network. Coaches should also be required to look beyond the business-first perspective and be available to everyone in the company, not only high-potential employees. Recommended Actions To attract and retain talent through professional development and career opportunities, CHROs should: 1 2022 Gartner New Talent Landscape and Career Pathing Survey. This survey was conducted to better understand employees’ attitudes toward the hypercompetitive labor market and their feelings on career pathing in hybrid roles. The survey was conducted online from 28 February through 23 March 2022 and contains responses from 3,370 employees with representation from various regions, industries and functions. 2 2022 Gartner Culture in a Hybrid World Employee Survey. This survey was conducted in December 2021. It included responses from 6,758 employees. The survey focused on employees’ experiences and opinions related to their organizations’ cultures and their connectedness to them, with representation from various geographies, industries and functions. 3 2022 Gartner Leadership Success in the New Environment Employee Survey. This survey was conducted online from 28 January through 22 February 2022 and contains responses from 1,000 midlevel leaders in 13 countries across multiple industries. Midlevel leaders were defined and screened based on role title, definition of responsibilities, reporting structure and level within the organization. • Create greater role flexibility to make it easier for employees to experience different career options and thus boost their confidence in careers within the organization. • Crowdsource career moves and routes from current employees to show diverse options so employees have greater clarity in how to progress their careers. • Provide dedicated resources that prompt employees to look beyond their current roles and take a wider view of how the organization can help them achieve their personal and professional career goals. HR Leaders Monthly | April 2023 35 Gartner ReimagineHR Conference 2023 Save the date 11 – 12 September 2023 London, U.K. 23 – 25 October 2023 Orlando, FL 4 – 5 December 2023 Sydney, Australia Choose Your Region HR Leaders Monthly | April 2023 36 © 2023 Gartner, Inc. and/or its affiliates. All rights reserved. EVTM_967_2244047 Decoupling Work From Jobs by Caroline Ogawa Jobs are just one way in which work is organized, and co-authors Ravin Jesuthasan and John Boudreau argue this model is fading in relevance. They believe HR leaders should embrace an experimental mindset and promote a more flexible work design to better meet the organization’s everchanging needs. HR Leaders Monthly | April 2023 37 Ravin Jesuthasan is the global leader of Mercer’s transformation services business. He is the author of four books and has led numerous research projects for the World Economic Forum on the transformation of work and the global workforce. He is a regular presenter at the World Economic Forum’s annual meeting in Davos and a member of the forum’s Steering Committee on Work and Employment. Co-authors Ravin Jesuthasan and Dr. John Boudreau argue that we’re moving toward a future of organizing work outside the traditional constructs of jobs. Jesuthasan and Boudreau recently joined our Gartner Talent Angle podcast to share why organizations must melt role boundaries to better align work. The following insights are excerpted from that conversation. Listen to the full interview at Talent Angle Podcast: Designing Work Without Jobs, With Ravin Jesuthasan and John Boudreau. It might be hard for many of us to imagine work without jobs. How do you separate those two things? Dr. John Boudreau is a leading evidence-based visionary on the future of work and organization. Boudreau is professor emeritus of management and organization and a senior research scientist with the Center for Effective Organizations at the Marshall School of Business, University of Southern California. He also helped establish the Center for Advanced Human Resource Studies at Cornell University. t Back to Contents Jesuthasan: We’re not saying that jobs are going away. Jobs will continue to be important, but the instances in which the job will continue to be the singular way of organizing work are shrinking quite rapidly. We’ve seen this for years with work moving to gig workers — the “Uberization” of work, as it’s often been called. We’ve seen this more lately with this notion of internal talent marketplaces as, increasingly, work is being done in projects and assignments — still being done by employees, but in constructs aside from that of a job. We’ve tried to illustrate this ongoing journey to an ever more agile operating system, where there is a plurality of means through which work can be done, and a job may be one of them. I don’t know about you, but I’d like my airline pilot to be a full-time employee in that job, flying the plane all the time as opposed to maybe doing Uber on the weekends. There are going to be some areas where there is a premium for competence and skill, and there may be compliance and control HR Leaders Monthly | April 2023 38 reasons for work to be done in a job. But we’ll see more and more bodies of work escape those traditional limits. Can you share the differences between the traditional job model and the new work operating system that you envision? Jesuthasan: Let me take you through the four principles of that operating system: • Firstly, instead of starting with the organizing construct of the job, start with the work. What’s the current work to be done? • Secondly, once you’ve defined the work, ask the question, what’s the optimal combination between humans and automation? This is called “reinventing jobs.” We’ve seen that when you lead with technology, you almost always end up in this binary narrative between humans and the job that existed, and the new machine that’s coming. When you lead with the work, you see where the highly repetitive rule-based work might get substituted. You see where human ingenuity, creativity, empathy, critical thinking could be augmented by tools like machine learning and deep learning or natural language processing. And you also see where work could be transformed by the presence of automation, either because there is now space for new human work within a particular body of activity or the presence of automation is giving rise to demand for new human skills. You get a much more nuanced set of outcomes. • Once you’ve gotten to that optimal combination, the third principal is to ask the question, what’s the best way to connect talent to the work? Should it be in a job? Should it be someone on an internal talent marketplace from a different part of the organization who is taking on a gig? Should it be a gig worker externally? Or maybe we should centralize the work or offshore it, etc. • And the fourth principle is, how do we continuously allow talent to flow to work and flow to the opportunities as they emerge versus being limited in fixed, traditional jobs. This flow would increase the agility with which talent is connecting to work and solve problems and challenges as they emerge, as opposed to waiting for work or workers to be somehow pulled together to connect to these new challenges through that thing called a “job.” What do these principles look like in practice, to create this kind of operating system that works fast enough and with a suitable threshold? Boudreau: I can share an example we used throughout the book. You have a nurse job description, and traditionally you count the number of nurses you have by the number of jobs you have. You count the number of nurses you have by the people who can hold that job — those with a nursing degree. Think of it as three ice cubes: the job, the job holder and the degree. Many healthcare organizations just didn’t have enough people to be nurses and enough people earning degrees, particularly with COVID-19, so they started experimenting with letting that ice cube melt. There are lots of things within that ice cube, like intubating patients, diagnosing unresponsive patients and administering medication — those things, we’d say, probably need to stay as the work of someone who has a qualification as a nurse. But there are usually lots of other things, like checking in on patients who are reasonably stable and well, taking their temperature, noting that on the chart; those things could be done by a person who held a job that used to be called something like a “receptionist.” Those tasks don’t require top-of-license work, so we melt those. We move those over and allow those to be done by this person with a job called “receptionist” HR Leaders Monthly | April 2023 39 that now has these additional duties. Now, we have more time with the people who are qualified nurses to do those things they need to do. It’s the same with scheduling. Turns out scheduling was unautomated in many healthcare organizations, and it takes hours and hours for a nurse to do the nursing schedule. A pretty obvious solution is to give that to automation. And again, you free up those hours for nurses to focus on the things they’re specially qualified to do. Now, what’s interesting to me is, that wasn’t enough to get nursing-level skill on the kinds of things that COVID-19 demanded in the hospital. Those in healthcare had to find those with the capability to do nursing work whose job is something else, and they turned to hospital administrators, the CFO, the chief operating officer. Those officers are frequently physicians. So they relicensed those people, and now those officers can melt their capability to spend a day a week on the floor and to essentially become augmentation to the things that nurses were doing. When you let the nurse job melt, and you look at the capabilities on the task level, you begin to see lots of places those parts can flow and lots of ways to make the nurse job more focused where it should be. You begin to realize that, if we define people by their capabilities to do the job, we put them in a job ice cube, and we miss a large number of those capabilities that could be melted and applied elsewhere. You mentioned earlier, this is not going to happen overnight, and some jobs are more stable than others. Do you see certain classes of jobs or certain industries that are on the front edge of these transformations and are likely to progress? Jesuthasan: I think every job is going to change in some way, shape or form. I do think this thing called a “job” will continue because of some of these regulatory and compliance and other issues, but there certainly will be a lot of change within this thing called a “job.” When we talk about work flowing beyond jobs, we often define these different ways of working as fixed versus flexible. “Fixed” meaning things like jobs, and “flexible” meaning when people might be in positions but have the flexibility to express their skills in different parts of the organization or move to acquire new skills. And then there are completely flow models, where people are connecting to work not through jobs but through assignments, gigs, initiatives, etc. It’s where you see the internal marketplace happening. Where we see movement has changed from fixed to flex. We often see that in private sector white-collar work, people with the opportunity within particular functions to express their skills elsewhere. HR Leaders Monthly | April 2023 40 In the flow model, we see organizations moving bodies of work that are fungible across the organization. So, quite different from nurses who are in very specific roles for a specific purpose, but think of digital talent — of data scientists, program managers, project managers. We need them in HR, marketing, customer analytics, revenue management. Can we create a structure where they aren’t in jobs but instead are continuously flowing to opportunities as they emerge because these skills are so in demand and fungible across the enterprise? How well-positioned is the HR function today to support the move into the new work operating system? Does it have to bring in new skills and new capabilities to first equip itself to help? Boudreau: I think the short answer to that is, “Generally, no.” I think virtually everyone in the world would say the word “job” when they mean “work,” and HR is no less susceptible to that tendency — maybe even more because the HR systems are built to scale. HR has traditionally been rewarded for producing programs that scale well across an organization, and that means things like common denominators, common taxonomies, common approaches. All can be well-justified. But in the new world of work, at the edges, job systems are going to work great for some portion of the work in the organization. But when you see those edges, and when you hear leaders and workers having real problems with agility, that’s when HR needs to step up. So the entire field of software development has shifted from the old approach that was, “We build it and then we put it out there, and we convince you it’s good, and your complaints are something we have to deal with,” to a world of agile design and, “We put it out there knowing it’s imperfect, and we invite you to tell us how it’s imperfect, and we work on the parts of that imperfection that make the most sense.” My message to HR is that they have a golden opportunity at the moment to become the hub for experiments in agile work design, to be the place that leaders, workers, organization designers come, where they can find a place that is doing the experiments — learning from the experiments in the same way that your product development or software development groups are using those tools to learn about software and products. In a nutshell, take your agile design process, substitute the word “work” for the word “software,” and substitute the word “workers” for the word “users,” and let’s bring those agile tools to bear. Is HR ready for that? I would say very, very few of the HR organizations I work with are prepared today to step up and say they will be the hub for agile work experimentation. Someone’s going to do it. I think there’s a real chance for HR to step back and ask fundamental questions about what this profession is really about. It means HR needs to accept the idea that scale isn’t the only measure; there may be small experiments going on. Think of work in the way you’d think of software or a product. It’s perfectly fine to say, “I don’t know what our product will look like in five years.” It’s perfectly fine to say, “I don’t know what our software will look like in five years.” That doesn’t mean chaos. That means perpetual reinvention, often with the insights of customers and others through AI, through transactions. HR Leaders Monthly | April 2023 41 Metrics of the Month HR Leaders Look to DEI, L&D and Flexibility to Solve Talent Shortages In March’s Benchmark with Gartner webcast, we polled over 280 HR leaders on how their organizations are responding to persistent talent shortages. Fifty-three percent of HR leaders expect talent competition to increase in the next three months. They attribute these shortages primarily to competition for talent both within and outside their industries, along with skills gaps and inadequate compensation and benefits packages. To address talent shortages, HR leaders are pursuing a mix of attraction, retention and internal skill-building strategies, such as expanding diversity, equity and inclusion (DEI) efforts (63%), providing increased training opportunities (59%) and offering flexible work arrangements (57%). In this challenging business environment, HR leaders see opportunities to exploit untapped sources of nontraditional talent both within their organizations and in the labor market. Q: How do you expect talent competition to change in the next three months? Percentage of HR Leaders 0% Significantly Less Competitive 17% Less Competitive 30% No Change 7% Significantly More Competitive 46% More Competitive 53% of HR leaders expect talent competition to become more competitive in the next three months. n = 104 (March 2023) Source: Benchmark With Gartner: Persistent Talent Shortages, Sustaining DEI and Other Emerging Issues (22 March) HR Leaders Monthly | April 2023 42 Metrics of the Month Q: Which of the following factors do you believe contribute most to persistent talent shortages in your industry? Percentage of HR Leaders 64% Limited Access/High Competition for Qualified Talent 47% Skills Gaps/Mismatched Job Requirements Cross-Industry Competition 41% Inadequate Compensation/Benefits Packages 41% 32% Limited Geographic Availability 28% Limited Investment in Employee Development 21% Economic Conditions 14% Demographic Shifts There Are No Persistent Talent Shortages in My Industry Other 1% 2% n = 98 (March 2023) Source: Benchmark With Gartner: Persistent Talent Shortages, Sustaining DEI and Other Emerging Issues (22 March) Q: Which strategies are you using to address talent shortages? Percentage of HR Leaders 63% Expand DEI Efforts 59% Provide Increased Training Opportunities Incorporate Flexible Work Arrangements 57% Expand Learning/Development Efforts to More Employees 56% 46% Promote Internal Talent Marketplaces 35% Promote Employee Retention Programs 27% Equip Managers to Increase On-the-Job Learning for Employees Considering Reinstating Defined Benefit Pensions 2% There Are No Persistent Talent Shortages in My Industry 2% Other 4% n = 103 (March 2023) Source: Benchmark With Gartner: Persistent Talent Shortages, Sustaining DEI and Other Emerging Issues (22 March) HR Leaders Monthly | April 2023 43