shrm poll human_potential_final

September 16, 2010

SHRM Poll: Challenges Facing Organizations

and HR in the Next 10 Years

Challenges Facing Organizations and HR in the Next 10 Years | ©SHRM 2010

Key Findings

• Getting and Making the Most of Human Capital Is a Key Priority. The biggest

investment challenges facing organizations over the next 10 years are 1) obtaining

human capital and optimizing human capital investments (47%), 2) obtaining financial

capital and optimizing financial capital investments (29%), and 3) obtaining intellectual

capital and optimizing intellectual capital investments (12%).

• To Attract and Keep the Best Talent, Organizations Should Allow Flexible Work

Arrangements. Providing flexibility for employees to balance their life and work

responsibilities is the most effective way to attract, reward and retain top performers,

according to 58% of HR managers.

• Cultivate a Culture of Trust, Open Communication and Fairness. Creating an

organizational culture where trust, open communication and fairness are emphasized

and demonstrated by leaders is a key human capital strategy.

• Keep a Clear Line of Sight Between Employees’ Work and Organizational

Objectives. 40% of HR managers say that designing jobs to provide employees with

meaningful work that has a clear purpose in meeting the organization’s objectives

optimizes the organization’s ability to engage and keep top talent.

2


2%

11%

12%

29%

47%

0% 10% 20% 30% 40% 50%

Obtaining physical capital (e.g., factories, buildings, trucks, tools, machinery and equipment) and optimizing

physical capital investments

Obtaining technology and optimizing technological capital investments

Obtaining intellectual capital and optimizing intellectual capital investments

Obtaining financial capital and optimizing financial capital investments

Obtaining human capital and optimizing human capital investments

3

What do you think will be the biggest investment challenge facing organizations over the coming 10 years?

Note: n = 449. Percentages do not total 100% due to rounding.


What do you think will be the biggest investment challenge facing organizations over the coming 10 years?

• Obtaining financial capital and optimizing financial capital investments (by operations): Organizations with

U.S.-based operations (31%) were more likely than organizations with multinational operations (20%) to cite

obtaining financial capital and optimizing financial capital investments as a major investment challenge facing

organizations over the coming 10 years.

• Obtaining financial capital and optimizing financial capital investments (by union status): Organizations with

unionized employees (40%) were more likely than non-unionized (26%) organizations to report obtaining financial

capital and optimizing financial capital investments as the biggest investment challenge facing organizations over the

coming 10 years.

4

Comparison by Organization’s Operations Location and Union Status


A 2010 survey of global C-suite executives, Company of the Future, commissioned by SHRM with the Economist Intelligence Unit, found that C-suite executives believe the two biggest challenges facing HR over the coming 10 years will be:

1. Retaining and rewarding the best people.2. Attracting the best people to the organization.

5


According to HR professionals, the most effective tactics of meeting the identified challenges of retaining and rewarding the best people and attracting the best people to the organization are:

1%

4%

11%

11%

13%

14%

15%

21%

23%

29%

40%

47%

58%

0% 10% 20% 30% 40% 50% 60%

Other

Demonstrating the organization’s commitment to corporate social responsibility and sustainability

Providing employees with the latest tools to maximize work efficiency and effectiveness

Creating a highly inclusive culture that uses diverse perspectives to optimize organizational performance

Developing human capital managers at all levels of the organization

Providing employees better opportunities to use their skills and abilities

Creating an organizational culture where employees are encouraged to make decisions and take risks

Creating a stimulating and attractive organizational culture

Offering a higher total rewards package (i.e., total compensation and benefits package) than organizations that compete for the same talent

Demonstrating a commitment to employee development

Having jobs designed to provide employees with meaningful work that has a clear purpose in meeting the organizations’ objectives

Creating an organizational culture where trust, open communication and fairness are emphasized and demonstrated by leaders

Providing flexibility to balance life and work

6

Note: n = 449. Percentages do not total 100% as multiple response options were allowed. Respondents were asked to select up to three tactics.


According to HR professionals, the most effective tactics of meeting the identified challenges of retaining and rewarding the best people and attracting the best people to the organization are:

• Creating an organizational culture where trust, open communication and fairness are emphasized and

demonstrated by leaders (by sector): Nonprofit (63%) organizations were more likely than publicly owned for-

profits (40%) and privately owned for-profits (43%) to report that creating an organizational culture where trust, open

communication and fairness are emphasized and demonstrated by leaders is the tactic most effective in meeting the

challenges facing HR over the next 10 years.

7

Comparison by Organization’s Sector


Demographics: Organization Industry

Industry

Manufacturing—other 16%

Health care, social assistance (e.g., hospitals, clinics, doctor's offices, in-home care,

nursing homes, EAP providers, hospice)11%

Financial services (e.g., banking) 9%

Services—professional, scientific, technical, legal, engineering 8%

Retail/wholesale trade 6%

Consulting 6%

Educational services/education (e.g., universities, schools) 4%

Government/public administration—federal, state/local, tribal 4%

Insurance 4%

8

Note: n = 431.


Demographics: Organization Industry (continued)

Industry

Other services (e.g., other nonprofit, church/religious organizations) 4%

High-tech 3%

Transportation, warehousing (e.g., distribution) 3%

Manufacturing—auto/auto-related 2%

Telecommunications 2%

Construction, mining, oil and gas 2%

Publishing, broadcasting, other media 2%

Pharmaceutical 2%

Real estate, rental, leasing 1%

Services—accommodation, food and drinking places 1%

Utilities 1%

Arts, entertainment, recreation 1%

Biotech 1%

Association—professional/trade 1%

Other 6%

9

Note: n = 431.


Demographics: Organization Sector

3%

6%

17%

26%

48%

0% 10% 20% 30% 40% 50% 60%

Other

Government sector

Nonprofit organization

Publicly owned for-profit organization

Privately owned for-profit organization

10

Note: n = 429


Demographics: Organization Staff Size

12%

30%28%

21%

10%

0%

10%

20%

30%

40%

50%

50 to 99 employees 100 to 499 employees 500 to 2499 employees

2500 to 24999 employees

25000 or more employees

11

Note: n = 273. Percentages do not total 100% due to rounding.


Demographics: Other

12

Note: n = 438

U.S.-based operations 72%

Multinational operations 28%

Single-unit company:

Companies in which the

location and the company

are one and the same.

28%

Multi-unit company:

Companies that have more

than one location.

72%

Multi-unit headquarters determines

HR policies and practices

44%

Each work location determines HR

policies and practices

3%

A combination of both the work

location and the multi-unit

headquarters determine HR

policies and practices

53%

Is the organization a single-unit company or a

multi-unit company?

Are HR policies and practices determined by

the multi-unit corporate headquarters, by each

work location or both?

Does the organization have U.S.-based

operations (business units) only or

does it operate multinationally?

Note: n = 419

Note: n = 322

• 13% of organizations indicated that

employees at their work location were

unionized.

Note: n = 425


SHRM Poll: Challenges Facing Organizations and HR in the Next 10 Years

• Response rate = 17%

• Sample comprised of 449 randomly selected HR professionals with the job title of manager and above.

• Margin of error is +/- 5%

• Survey fielded August 10 – August 23, 2010

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Methodology

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