THE GLOBAL WORKFORCE – WHERE ARE THEY HEADED? 3 February 2015Kara Walsh, SAP1

In the first of a new series of 20-Minute Master Classes, Kara Walsh, SAP’s Chief Human Resources Officer for Middle Central and Eastern Europe, explored the rapidly changing global workforce. Using SAP as a case study, she showed how the HR team has stepped up to the challenges presented by Workforce 2020 – specifically around people, leaders, and HR. The team has focused on talent management – recruiting and retaining the right skills, leadership behaviours and development, and HR’s transformational role in engaging employees and meeting millennials’ expectations.

The world is changing and the workforce is evolving fast. Here are some of the trends that are creating an entirely new set of challenges for every organisation.

NEW WORLD, NEW RULES

Social communities Nearly 75% of internet users are active users of social media1, plus we send 20 billion SMS and 30 billion WhatsApp messages2, and watch four billion YouTube videos every day.3

Mobile proliferation There are now more mobile devices in the world than people and there are over 1 billion mobile workers.4

Information revolution It’s estimated that more information is now recorded every two days than the total created between the dawn of civilisation and 2003.

Collaboration counts Work is no longer about a fixed time and place, it’s how you work and how flexible you can be.

Consumer patterns Women now earn more degrees than men and account for 85% of consumer spending5.

Tweet #20MMC@LiezlvRensburg: On Demand and On Device means the things I need to do my job is accessible!

Source1. InternetWorldStats, CNNIC, Facebook, Tencent 2. IHS / Industry Data / Ofcom Reuters 3. Cisco Visual Networking Index 4. American Enterprise Institute, Carpe Diem, Mark J. Perry, 2013 5. Greenfield Online for Arnold’s Women’s Insight Team

WHAT WILL WORKFORCE

2020 LOOK LIKE?By 2020, the workforce will comprise five different generations for the first time ever.

The workforce of the future will be:

More flexibleThere’ll be more non-payroll positions – consultants, intermittent employees and

contingent workers. Fixed hours and places of work will be less common than now.

More diverseThe effects of globalisation and economic

shifts will help to create a workforce comprising wider nationalities, cultures,

ages and skill sets.

More flexible and diverse, but how different will workers’ wants, needs and expectations be?

Tweet #20MMC@wdcomm: Such an important point from @KaraWSAP in the #20MMC: by FIVE different generations working side by side! #20MMC

WHAT DO EMPLOYEES REALLY WANT?

And what are employers doing about it?The 2014 Oxford Economics study, ‘Workforce 2020 – building a strategic workforce for the future’, highlights a reality gap between employee expectations and what employers are currently offering.

Competitive compensation 66%

What employees value

What employees say their companies offer

30%

26%

30%

22%

41%

31%

22%

Retirement plans 45%

Flexible work location 44%

Education 42%

Personal recognition from higher-ups 42%

Up-to-date technology 41%

Access to social media at work 37%

BY 2025, OVER 70% OF THE WORKFORCE WILL BE MILLENNIALSHow different are millennials?Born through the 80s and 90s, are our views of millennials and their behaviours myth or reality? Have we simply misunderstood the millennial worker?

Oxford Economics research suggests that millennials – the youngest segment of the workforce – are not as different to other generations as we imagine and the media may suggest:

1. Millennials and non-millennials both want to make a positive difference through work.

2. Millennials and non-millennials equally value work-life balance as important.

3. Non-millennials look for personal meaning from work marginally more than millennials.

4. Career and income goals are just as important for millennials and non-millennials.

5. Millennials are no more likely than non-millennials to leave their job in the next six months.

The findings revealed that while they want the same things from work, HOW THEY WANT TO BE ENGAGED is very different.

To meet these new employee expectations, HR must play a more strategic role to ensure that workforce issues are higher up the boardroom agenda.

WHY HR NEEDS MORE STRATEGIC INFLUENCE

52% 61% 47%20%

52% of executives say workforce issues drive strategy

at board level, but only 31% of executives say HR works

with C-suite to make strategic decisions.

Nearly 1 in 4 executives say workforce issues are an afterthought of

business planning.

The Oxford Economics study shows that high-performing companies are more likely to say that workforce issues drive

strategy – 61% v. 47% of less profitable firms.

If HR is to play a more strategic role, they need the information, metrics, tools and skills to help companies meet

workforce goals.

Tweet #20MMC@jameslkelley: Skills in analytics are critical to support HR transformation. HR needs to focus on strategic not just transactional issues

Optimise HRData is key. As employee expectations rise, so do the expectations of executives about the value that HR should deliver to the organisation. Yet, Oxford Economics found that only 42% of HR professionals can extract meaningful insights from their company data.

Empower peopleEvidence shows that many companies are facing a skills gap. And Workforce 2020 research highlighted that a third of employees expect more feedback on their performance than they currently receive. At SAP, the mantra is “everyone is a talent”. This helps to focus efforts on recruiting the right people and retaining them by creating a learning and development culture.

Embrace technologyTechnology is a game changer. Advances and innovations in analytics and cloud technologies now make it possible for executives and HR professionals to access the same ‘version of the truth’. This real-time information leads to actionable insights and data-driven decisions. SAP has embraced social channels and work communities, such as company and employee ‘Jam’ groups (SAP’s Social Collaboration platform), to encourage two-way communications.

HR TRANSFORMATION: THE RACE IS ON

Improving the access to and analysis of employee data enables

HR to be a strategic partner to the business. This transformation can improve performance across a number of areas that contribute to overall business results. It’s a

step-change in terms of workforce planning and strategy.

End-to-end global deliveryThis needs to underpin the transformation. The model that SAP is operating globally is a core group of highly trained, strategic HR Business Partners. They understand the global business and the local market’s needs and changes. They’re supported by a network of specialist HR practitioners and are supported by services centres for transactional and operational processes.

Lead people and businessResearch highlights leadership deficits at senior company echelons and employees’ dim view of middle and upper management performance. At SAP, the focus is on leadership behaviours, rather than leaders’ competences. There has been a conscious move from hierarchy to ‘circles’ to improve the connections between employees and business leaders.

Simple solutionsAn important way to increase employee engagement is to simplify processes, procedures and channels. For example, SAP moved performance management away from spreadsheets to a more intuitive and easy-to-use application that managers could access on tablet devices when they were away from the office.

Tweet #20MMC@ZoedHarris: The #HR transformation race is continuously increasing and the demands higher than ever. #20mmc #hr #hrtransformation

HR TRANSFORMATION: THE RACE IS ON

Improving the access to and analysis of employee data enables

HR to be a strategic partner to the business. This transformation can improve performance across a number of areas that contribute to overall business results. It’s a

step-change in terms of workforce planning and strategy.

Workforce 2020 is an urgent call to action to HR professionals and business leaders.

SO WHERE IS THE GLOBAL WORKFORCE HEADED?

As the global workforce of the future becomes more flexible and diverse, we need to get closer to employees, their expectations, and the strategic goals of the organisation.

1. Understand and value your people – and recognise that everyone is a talent.

2. Improve leaders’ performance and development – beware of the leadership cliff!

3. Play a pivotal, strategic role. As Kara Walsh says, “HR needs to get out of the weeds”.

Follow the series on Twitter #20MMC #hrtransformation

Join the conversation on LinkedIn

Register for this series of 20-Minute Master Classes

Watch Kara Walsh’s session on demand