wellbeing for business resilience and growth

Josh Bersin

Global Industry AnalystJune, 2021@Josh_Bersin

Wellbeing for Business Resilience and GrowthWellbeing goes mainstream

2021 Theme: Business Transformation

CoronavirusCrash

GlobalPandemic

Back toWork

TransformedBusiness

The Business and Economy

Safe and healthy productsSafe and online retailLow touch customer serviceRemote consulting and serviceDigital entertainmentDigital healthcareHealthy living and workingCloud computing Cyber securityBitcoin, mobile commerceTalent shortage

Business Transformation Everywhere

The People and Work

Work remote and at homeWorking in agile teamsLeading in uncertainty and changeDigital and data skillsNew workforce demographicsGender, race, and income justiceFairness, equity, diversityBelonging and inclusionSkills and career growthContingent and part-time workersNew remote or hub workspace

1. A new war for talent2. Digital is now a way of life3. Employee Experience has become a corporate strategy4. Employee listening, hearing, and communications go big5. Wellbeing and safe workplace land in the board room6. Reskilling accelerates with focus on strategic capabilities7. Corporate L&D will be disrupted8. Talent mobility is taking a long-awaited strategic focus9. HR Transformation is everywhere10. DEI and equity become widespread strategies11. Citizenship, sustainability, and environment grow12. Human Resources is now a center of innovation

Predictions for 2021

https://joshbersin.com/2021/01/hr-predictions-for-2021-transformation-at-scale/

The New War for Talent

Quit Rate At All Time High 2.7% Quit Rate4 Million in one month

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Global Pharma

Payroll Provider

Midsized Bank

High Tech Mfg

Healthcare Tech

Consulting Firm

Insurance Company

Previous Applicants Employees

More Than Half Hiring Is Internal or Re-Hiring2021 Hiring Trends YTD

Eightfold customer data.

Dealing With The New World Of TalentThe Business of Work Has Radically Changed

Project workCareer modelsFacilitated mobilityInternal gig work

Internal Mobility and

Agility

New SkillsCapabilityAcademies

Skills TaxonomySkills MatchingAI Intelligence platform“Build not buy” talent

SimplifyJob

Architecture

Agile org designNew model for PMNew compensation models

EmployeeExperienceRetention

EX DesignOnboardingFeedback

Diverse Hiring and Sourcing

EducationRace, cultureGeographyGenderCognitive

Gig andContractWorkers

Side hustlesPart-timeContractGigTalent marketplaces

Demographic Labor

Shortage

RetirementBirth rateLabor market dropout

MillennialLeadership

Pipeline

Coaching and developmentStretch assignmentsLeadership model

Surprising Data About Workforce Disruption

1 in 4Employees that indicated they plan to switch occupations in 20213

1 in 5Employees that indicated they voluntarily changed employers in 20201

1 in 4Employees that indicated they plan to switch employers in 20212

2.3 MWomen were pushed out of jobs in 2020 putting female participation in workforce at lowest rate since 1988

IBM Institute of Business Value Study, 2020, Pandemic Labor Market

The Big Reset in HR: New Operating Model

Responsive (Efficient) Resilient (Adaptive)

Strategic, data-driven, experience-oriented, diverse, inclusive, passionate.

Cross-trained, highly collaborative, distributed, coordinated, agile.

• Integrated HR tech strategy• Strength in People Analytics• Self-directed learning, new career models• Integrated experience for recruitment• Strong focus on business priorities

• HR professionals work close to client needs• Teams are cross-functional by design• Agile “pools” of people who work on projects• HR professionals know each other well• Skills and capabilities valued and well known

Operating Model: central control, distributed execution

Operating Model:distributed control, centralized coordination

Success: efficiency and employee satisfaction Success: speed and quality of response

The “New”Future of Work

Source: U.S. Bureau of Labor Statistics

“Fully Grown” by Dietrich Vollrath

GapWidening

Shift to Service and IP-based Economy

Burnout Rate Increasing

October 2019, Glint “how people feel right now,” 7 million data points

Even Healthcare Workers Are Burned Out

https://www.washingtonpost.com/health/2021/04/22/health-workers-covid-quit/

Employers spend 31% of all wages on benefits and insurance.

This has increased by 21% over the last 20 years.

Continued Increase In Corporate Benefits

2000 2020 ChangePercent of Payroll Spent on Benefits 26% 31% +21%

Management 32%

Sales and Service 29%

Education 33%

Hospitals 35%

Production & Manufacturing 35%

https://www.bls.gov/news.release/ecec.t02.htm

Wage and salaries

Paid Leave7%

Supplemental Pay3%

Insurance and Health10%

Retirement and savings

5%Regulatory, state, local

Benefits as Percent of WagesDecember, 2020

The Link Between Performance and Engagement

When researchers looked through the job logs of thousands of workers for clues to their engagement, they found one overriding need:

The need to “get things done.”

Productivity and engagement are two sides of the same coin.

When People Perform Well, They Become Engaged

Engagement Performance

enables

The Relationship Goes In Both Directions – Not One Way

75% agree that “high engagement”

drives high performance

69% believe “you cannot improve performance”

without improving engagement

Glint, Harvard Business Review Study, September 2019, 717 corporate respondents

Pandemic Response Study: Ten Practices

1. Focus support on employee health and safety

2. Aggressively listen to the workforce to define return to work plans

3. Create integrated support for families and the entire worker’s life

4. Reinforce and invigorate focus on purpose and mission

5. Communicate and support agile teams to deal with ambiguity

6. Quickly adopt technology to develop new products and services

Health and Wellbeing

Take care of people and their families

Business Agility and Change

Drive agility and change through mission

Adaptive Transformation

Reinvent work, jobs, and talent practices

7. Rapidly, creatively, and strategically hire new, needed talent

8. Heavily leverage contingent and part-time workers

9. Facilitate and support teams to experiment and learn quickly

10. Simplify and speed up performance management

https://joshbersin.com/business-resilience-the-global-covid-19-pandemic-response-study/

A New Role ForManagement

The IndustrialCorporation

HierarchicalLeadership

CollaborativeManagement

Company AsA Network

<1950s 1960s-80s 20191990s

Andrew CarnegieHenry Ford

Netflix, Google, Facebook, Amazon

Jack WelchPeter Drucker

Howard SchulzSteve Jobs

Profit, Growth, Financial Engineering

Customer Service,Employees as Leaders

Mission, Purpose,Sustainability

OperationalEfficiency

Industrial AgePeople as Workers

Management byObjective

Servant LeadershipWork Together

Empower theTeam

The Corporationis King

The Executivesare King

The Teams and Team Leaders are Kings

The People areKing(s)

Citizenship, Trust,Growth, Learning

Productivity, Wellness, Responsibility

Unilever, Verizon,Patagonia, Whole Foods

The Individual, Community, and Family

Empathy, TrustResilience, Change

Management Philosophy Has Changed

What Are PowerSkills? The Skills of Success.

Learning Generosity Joy Teamwork

Optimism Curiosity Tenacity Flexibility Integrity

Humility

Drive Ethics Empathy Followership

Happiness Patience Kindness Forgiveness

TimeManagement

Source: IBM, Greater Good Science Center, Pymetrics, Josh Bersin

Enter Human-Centered LeadershipBusiness Centered Human Centered

Lead the businesspeople coming along for the ride

Lead the peoplethey drive the business forward

Goals, rewards, incentives, and alignment Inspiration, skills, empowerment, relationships

Drive innovation with execution, innovation in a silo Execution demands innovation every day

Focus on growth and change Learn from problems to evolve organization

Proud, confident, knowledgeable, decisive Humble, empathetic, listener, growth mindset

Focused on the inside, managing the company Focused on outside, listening to customers, market

Pick favorites, rely on trusted confidants to succeed Look for diverse performers, open to new people

Focused on problem solving, accountability Focused on systems thinking, why problems occur

Targets, budgets, plans Vision, goals, and growth perspectives

Driven by financial success, job promotion Driven by purpose, mission, grit, and passion

Massive change programs and initiatives Iterative change, series of small measurable steps

Business FirstPeople Second

People FirstBusiness Second

“People as ameans to an

end”

“People as athe purpose

of the business.”

Leadership Has Stepped Up:

46% of companies believe their leadership development quality is high, the highest levels since 2003. Leaders are rated higher than in the last 15 years.

New Focus On Wellbeing:

2/3 of HR leaders are teaching leaders how to be more empathetic, supportive, inclusive, and patient with their teams.

Curiosity, Energy, Joy

Work to do: 58% of HR leaders see need for stronger skills in remote work, communication, digital business, and agile organization.

A New Leadership Readiness Is Now Critical

MicrosoftLeadership Model

• Provide Clarity

• Generate Energy

• Drive Success

DDI 2021 Leadership Forecast, n=3,000+ participants

A New Look AtEmployee Experience

Digital Overload Is Climbing

Mental And Behavioral Health

What Really Matters

Physical Needs

Safety

LoveBelonging

AccomplishmentEsteem

SelfActualization

Mission and PurposePersonal Growth, Career

Meaningful WorkProgression, Feedback, Pay

Management, Small TeamPsychological Safety

Flexibility, Infection-FreeDiversity, Inclusive

Salary, BenefitsHealth, Wellbeing

MeaningfulWork

Hands-OnManagement

PositiveEnvironment

Health & Wellbeing

GrowthOpportunity

Trust in Leadership

Autonomy and agency

Clear goals with stretch opportunity

Tools and systems to get work done

Safety and security in all aspects of work

Open, facilitated job and role mobility

Mission and purpose beyond financial goals

Job and team fit Regular coachingand feedback

Appreciation, recognition, and rewards

Personal fitness, health, and wellbeing

Career growth in multiple paths

Trust, transparency, and empathy

Small, agile teams Capable, empowering leadership

Flexible workspace and workplace

Psychological and mental health and support

Formal and informal learning

Continuous investment in people

Time to focus, rest, and recover

Transparent, simple performance management

Inclusive, diverse, and culture of belonging

Family and financial support

Culture of learning at all levels and all times

Focus on society, environment, and community

The Irresistible Organization: A Complete Employee Experience

Derived from Simply Irresistible, © Deloitte Consulting LLP

MeaningfulWork

Hands-OnManagement

PositiveEnvironment

Health & Wellbeing

GrowthOpportunity

Trust in Leadership

Autonomy and agency

Clear goals with stretch opportunity

Tools and systems to get work done

Safety and security in all aspects of work

Open, facilitated job and role mobility

Mission and purpose beyond financial goals

Job and team fit Regular coachingand feedback

Appreciation, recognition, and rewards

Personal fitness, health, and wellbeing

Career growth in multiple paths

Trust, transparency, and empathy

Small, agile teams Capable, empowering leadership

Flexible workspace and workplace

Psychological and mental health and support

Formal and informal learning

Continuous investment in people

Time to focus, rest, and recover

Transparent, simple performance management

Inclusive, diverse, and culture of belonging

Family and financial support

Culture of learning at all levels and all times

Focus on society, environment, and community

The Irresistible Organization: A Complete Employee Experience

Derived from Simply Irresistible, © Deloitte Consulting LLP

Wide Range of Employee Experience Issues

Rewards

Safety

Workplace

Career

Leadership

Culture

Inclusion

Mission

IT Facilities HR Legal Manager ExecutiveTeam

Commute, Work Location, Space,

Facilities

Goals, review, projects, meetings, daily interactions

Workplace safety, work location,

commute, policies.

Opportunities, growth, mobility,

coaching, promotion

Inclusion, belonging, fairness,

trust, energy,

Succession, performance,

promotion, review

Rewards, pay, bonuses, benefits, wellbeing, support

Leadership, drive, forgiveness,

resilience, patience

Family, personal growth, long term

aspirations, purpose

Employee Experience Now A Corporate Strategy

IndustrialEngineering

EmployeeEngagement

Feedback andResponse

Design forSuccess

Focus: Output

ObservationStudyAnalysisCorrelation

Focus: Retention

SurveyBenchmarkReportImprove

Focus: Culture

PulseFeedbackAnalyticsTake action

Focus: Productivity

End to end designHR, IT, Facilities, SafetyWellbeing and resilienceRemove digital friction

EngineeringApproach

I/O PsychologyMethods, surveys

Service CentersRapid Response

Work DesignJob Design

1900s 1930-1980s 1980s-today Today forward

Employee Listening Goes Mainstream

IntegratedReporting & AnalyticsSentiment AnalysisNetwork Analysis

Candidate Experience

Case ManagementEmployment Brand

Customer Experience

CrowdsourcingOpen Feedback

Pulse SurveysAnnualSurvey

PerformanceCheck-ins

ExitInterviews

PerformanceAppraisals

EmailONA

LocationTravel, Badges

AttestationInfection

IncidentReporting

Remote Work: Creating Psychological Safety

Low Standards High Standards

High Trust, PsychologicalSafety

Low Trust, PsychologicalSafety

Derived from “The Fearless Organization,” by Amy Edmondson

Apathy

Comfort

Anxiety

Performanceand Growth

We want to be here

Essential Talent ActivitiesStandalone disconnected staffing, training, and performance practices

Level 1

Critical Talent GrowthCritical talent segments, focus on hiring, training, performance

Level 2

Managed Talent RelationshipsWorkforce planning, development planning, leadership development integrated

into talent strategy

Level 3

Inclusive Talent SystemTalent strategies integrated with inclusion, diversity, and culture

Level 4

The New Bersin by Deloitte Talent Management Maturity ModelSource: Bersin by Deloitte, Deloitte Consulting LLP, 2015.

Inclusion and Belonging: Business Issues

Elevating Equity: DEI is Not A Program, It’s SystemicSo

Talent Acquisition Performance & Growth Career, Growth, Mobility

Equity, Fairness, Diversity, Citizenship

Wellbeing As ACorporate Strategy

Business Performance

Cost Reduction

Labor Productivity

Retention Productivity Collaboration Team Performance

Leadership

HealthMonitoring

Employee Assistance

MedicalBenefits

Fitness

Challenges

Nutrition

Exercise

Stress

Sustainable Performance

Recognition

Skills andTraining

WorkEnvironment

Rewards

Leadership

Management

Clear Goals

GrowthOpportunities

Wellbeing

Self Discovery

Career

Purpose

Mindfulness

AbundanceMentality

Positive Thinking

Culture Fit

Family

Wellbeing Lands in The Board Room

VC Data: CB Insights

U.S. Suffers from Financial Illiteracy

• 40% of adults rated a C, D or F on personal finance literacy• 1/3 of Americans pay minimum credit card balance and average credit

card debt is $15,000• Median retirement balance is only $3,000• 50% of American households have no savings

This Has Huge Impact on Work

• Financial stress lowers productivity by $250 billion per year• 15% of college graduate salaries goes to student loan debt • 64% of millennials feel financially stressed, 32% say it impacts their

daily work• 33 peer reviewed studies correlate financial stress to health and

heart attacks

https://www.huffingtonpost.com/douglas-p-mccormick/financial-literacythe-big_b_10264622.html2018 TIAA Institute – GFLEC Personal Finance Index

Gaps in Financial Wellbeing

Safety PhysicalHealth

MentalFitness

FinancialFitness

CommunityBuilding

PurposeMeaning

Accident prevention Diet, weight, blood health

Stress relief, mindfulness

Financial counseling and education

ERG and community programs

Corporate purpose and mission

Safety training and compliance

Exercise, yoga, fitness, competitions

Management behavior, goals

Savings plans, loans, budget programs

In house interest groups and teams

Leaders set a healthy example for life and work style

Culture of safety and health in all roles and locations

Mindfulness, Sleep, rest, vacation

Family, community Debt reduction programs, tuition and mortgage assistance

Family relationships and support programs

Investments in career growth and employee development

Monitoring and study of accidents and injuries

Maternity, disease, special care

Addiction, coaching, psychological support

Retirement, legal, and other consulting support

Sponsorships with schools, hospitals, non-profits

Investments in environment and sustainability

Facility, workplace, and deskless worker programs

Preventive care screenings and tests

Episode support and life-event resources

Pay review, pay transparency, competitive pay

Volunteerism program, days off, sabbatical

Focus on organic, supplies and supply chain health

Six Major Elements of a Total Wellbeing Program

Culture-Enabling and Healthy Environment Matters

Coaching

Mindfulness

Self Confidence

Positivity

Empathy

Problem-Solving

Maturity Model for Wellbeing Strategy

Level 1: Wellbeing as a Healthcare BenefitValue: reduced cost, reduced turnover, improved insurance expenseFocus on disease reduction, accident prevention, overall health of workforce

Level 2: Wellbeing for Personal ImprovementValue: make work life better, reduce stress, help employees with personal and financial wellbeingFocus on personal, family, and financial support, education, job, and off the job tools and support

Level 3: Wellbeing for Business PerformanceValue: reduce wasted time and energy at work, help people with schedule, travel, priorities, train managersFocus on performance sustainability, attention, focus, education, career, and total performance at work

Level 4: Wellbeing for Social GoodValue: organization as a force for good; sustainability, health, and value to communityFocus on contribution to society outside of work, communities, localities, political alignment

Focusing On The Right Problem

The ImportantRole of Leadership

Trust Is The New Business CurrencyMajority believe the system is failing:

https://www.edelman.com/research/2019-trust-barometer-global-results

The systemis failing me

46%Believe

Trust myemployer

Yet75%

Edelman Trust Data

Only48%

Trustgovernment

https://bersinacademy.com

wellbeing for business resilience and growth

Documents

building your own health, resilience and wellbeing...

improving resilience, learning and wellbeing among young...

mental health and wellbeing - ceda - home · gabrielle...

the wellbeing and resilience paradox

growth, development and wellbeing

enhancing resilience and wellbeing in the caring...

powerpoint presentation · future focus bre trust research...

wellbeing and resilience centre assessment manual assessment...

resilience & wellbeing - ocswssw · 2017-06-06 ·...

resilience and wellbeing falconer

resilience and wellbeing

resilience and wellbeing of project managers, pmi ......1...

the 7 cs wellbeing programme to promoting wellbeing and...

wellbeing & resilience on the moorlands estate, brixton ·...

employee engagement, wellbeing and resilience in a post...

cumbria children & young people’s resilience, emotional...

can public policy shape people’s wellbeing and...

wellbeing and resilience information handbook

building your own health, resilience and wellbeing€¦ ·...

protective processes and resources that promote resilience...