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5. HR IN 2020
A NEW EMPLOYMENT LANDSCAPE
A R E S O U R C E M A N A G E M E N T W H I T E PA P E R • W W W . R E S O U R C E - M A N A G E M E N T . C O . U K
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02
CONTENTS
02 About Resource Management & The HR World
03 Contents & Acknowledgements
05 Foreword - Helen Norris, Head of HR, Group Operations, Nationwide Building Society
07 Technology; the Effect and Application
10 Human Resource Management in 2020; the Role of IT by David Beard, Senior HRM Lecturer, UWE
12 The Effects of Diversity on Talent
14 Adapt to Survive; can leadership respond?
20 Generalisation Y; in defence of Millennials by Steve Devereux, Marketing Assistant, RSG
21 The transformational challenge; how HR must evolve to be ready for 2020
25 Conclusion – Mike Beesley, CEO, RSG
26 Glossary of terms
27 Guest Profiles
30 Contact Details
ACKNOWLEDGEMENTS
Resource Management and The HR World are very grateful to those individuals who gave their time to take part in The HR
World Debate and who contributed to the content of this white paper. We give special thanks to Helen Norris for leading the
Debate.
03
AS A COMMUNITY OF HR PROFESSIONALS, THE FIRST
QUESTION THAT COMES TO MIND IS ‘HOW SHOULD
WE RESPOND TO TECHNOLOGY?’
04
FOREWORD
BY HELEN NORRIS, HEAD OF HR, GROUP OPERATIONS, NATIONWIDE BUILDING SOCIETY
When The HR World asked me to lead the latest round table multiple areas and to receive frequent constructive feedback.
discussion, I was delighted to have the opportunity to raise However, with a held view that much of ‘Gen Y’ are CV building
the topic of ‘HR in 2020 – are we ready?’ Factors such as and interested in citizenship and sustainability, how do we deal
the explosive growth in digital and social media technologies with the fact that these demanding employees may not give
are opening up a whole new role for those in HR, including loyalty in return?
the opportunity to take a lead in shaping organisations for the
future. As a community of HR professionals, the first question that
comes to mind is ‘how should we respond to technology?’
I grew up with a communal phone in the hall and the delight Do we embrace the wealth of innovations available, reaping
of sitting at the bottom of the stairs, trying to have a private the benefits of being an early adopter? Or do we observe a
conversation with my friends. For children today the world of more selective approach, carefully choosing which changes to
mobile phones, Facebook, Twitter and other means of ‘on make, yet potentially missing out on the next big thing? Many
the go’ communication is part of everyday life, so the thought businesses will become increasingly reliant on better technology
of working 9-5 in an office seems very dreary. However, as and self-service, with employees inputting data independently.
economic power shifts from the West to the emerging markets Consequently, entry level HR jobs as they currently exist
of Latin America, Eastern Europe and Asia, it is not simply will reduce significantly. To evolve, HR may need to embrace
technology and the attitudes of the emerging workforce that are analytics and ‘big data’ to become a more strategic function.
changing. Rapid growth in these parts of the world is creating a One thing is for certain; to successfully navigate this increasingly
new global middle class with impressive spending power. This turbulent environment, strong decision makers (and inevitably
is leading to intense competition for new markets, each with its good leaders) will be required.
own unique local flavour. People no longer want to be treated
as a commodity; they want to be personally engaged by their So the big question is, are we ready? Some businesses will
employer. feel sufficiently equipped to face these new challenges but
for others, drastic changes may be required to keep pace in
As the ‘Baby Boom Generation’, those born between an increasingly demanding and competitive climate. However
1946 and 1964, hits ‘normal’ retirement age, experienced ready we as HR professionals feel, we should take comfort in
talent will be at a premium. This in turn puts pressure on the fact that we don’t have to face these issues alone. HR can
younger workers to quickly become mature, skilled leaders. greatly benefit from cross-function collaboration with disciplines
Should we therefore be leveraging the ‘mature’ workforce such as IT, Legal and Marketing.
in an effort to upskill incoming talent? Many believe that
the emerging ‘Generation Y’ or ’Millennials’, those born Although some believe that the challenges facing HR have been
between 1975 and 1995, have a strong focus on the exaggerated, there is no denying that HR needs to leave its
future, expecting opportunities to progress, to build skills in comfort zone and respond in some capacity to be ready for 2020.
05
IF PEOPLE CAN WORK AT ANY TIME AND IN ANY
LOCATION, WHERE DOES WORK STOP AND PERSONAL
TIME BEGIN?
06
TECHNOLOGY;
THE EFFECT AND APPLICATION
At the dawn of the century, Ray Kurzweil (Chief Engineer, Google) predicted that 20,000 years of progress would happen in 1001; in
reality, change has occurred even faster than that. Technology is transforming society and with it, the ways in which people operate and
work every day. 53% of people believe technology will drive the most significant changes for HR and employment over the next decade2,
impacting the way we plan, review, communicate, engage and recruit.
“
BIG DATA AND VITAL ANALYTICS IN TERMS OF ATTRACTING TALENTED
Technology and data go hand in hand. IBM’s discovery that
CANDIDATES, TECH-AIDED TARGETING
90% of all current data was created in the last two years3 means STRATEGIES ARE HELPING TO FISH
it comes as no surprise that big data has become an industry
hot topic. Big data can be defined as ‘datasets whose size is
WHERE THE FISH ARE
beyond the ability of typical database software tools to capture,
store, manage, and analyse’4. An accurate analysis of big data
may lead to more confident decision making, greater operational
efficiencies, cost reductions and reduced risk. Within HR,
TALENT MANAGEMENT;
software can utilise data to track employee turnover, retention, HOW TECHNOLOGY CAN HELP
CV suitability and much more; the question is what can be done
with it? The problem is that many organisations still have closed In terms of attracting talented candidates, tech-aided targeting
views on collected data, failing to invest in how it can benefit strategies are helping to fish where the fish are. Helen Norris
performance5. If big data is embraced, organisations can reap (Nationwide) shared how an advanced targeting technique called
the benefits of proactivity, becoming anticipatory businesses ‘geo-fencing’ is being trialled by Nationwide, placing a virtual
that predict gaps and solve problems before they occur. The fence around geographical areas and sending promotional
Debate guests agreed that HR is underutilising big data, a text messages to individuals who match their criteria (e.g.
view in line with findings that only 18% of HR professionals see cinema patrons). Nationwide also utilises Layar6, an augmented
themselves as effective anticipators . 5
reality print application, throughout their graduate brochure.
This enables them to bring to life a career at Nationwide with
video clips, whilst also channelling candidates to the graduate
website.
07
TECHNOLOGY’S ROLE IN THE EMPLOYMENT LIFECYCLE
7 Gamification: not fun and games, but a serious HR tool – Information Age - Ben Rossi, 2014 http://www.information-age.com/it-management/skills-training-and-leadership/123458498/gamification-not-fun-and-games-serious-hr-tool
8 Twitter website: about, 2015 https://about.twitter.com/
9 Why Employee Engagement? – Forbes - Kevin Kruse, 2012 http://www.forbes.com/sites/kevinkruse/2012/09/04/why-employee-engagement/
10 LinkedIn website: about, 2015 https://www.linkedin.com/about-us?trk=hb_ft_about
11 Glassdoor website: companies and reviews, 2015 http://www.glassdoor.co.uk/Reviews/index.htm
08
REVOLUTIONISING
THE WAY WE WORK
Debate guest Martin Spencer (Gocompare.com) revealed that and workloads is becoming an essential skill for both employer
it is very difficult for his company to take their website down for and employee12. So if people can work at any time and in any
maintenance, even on Christmas Day or in the small hours of the location, where does work stop and personal time begin?
morning, due to the risk of losing customers. This demonstrates
perfectly the emergence of an ‘always on’ culture, both for Guests of The HR World Debate discussed Bring Your Own
business and employees. As the workplace shifts to ‘the cloud’ Device (BYOD), always on, the virtual office and flexible/remote
and technology continues to break down geographical barriers, working at length, but what was most interesting is the degree
remote and flexible working is becoming increasingly common. to which their approaches and views varied. Whilst on annual
An employee no longer needs to be at work to be working and leave, one guest chooses to check their emails for an hour per
instead, employees are using their personal devices to operate day. Others regularly respond to emails, and some try to shut off
wherever and whenever they find most convenient. completely. Adam Meadows (RSG) stated a preference to work
face-to-face with people and meet those he’s collaborating
People are now able to collaborate in virtual teams, regardless with, yet other guests seemed much more comfortable with the
of location and without physically meeting. These factors enable concept of virtual working. The diversity of opinion in a room filled
employees to demand far more flexibility and autonomy in their with senior industry professionals tells us that these technology-
working life, and the capability of managing projects driven changes will be a differentiator for businesses, potentially
having a significant impact on success.
12 The jobs evolution is already here – CIPD - Claire Churchard, 2014 http://www.cipd.co.uk/pm/peoplemanagement/b/weblog/archive/2014/12/11/the-jobs-evolution-is-already-here.aspx
09
CASE STUDY:
HUMAN RESOURCE
MANAGEMENT
IN 2020
BY DAVID BEARD,
SENIOR HUMAN RESOURCE MANAGEMENT LECTURER
UNIVERSITY OF THE WEST OF ENGLAND
We would like to give special thanks to David Beard, Senior Human Resource Management
Lecturer at the University of the West of England, for providing this case study.
10
1 ‘BEST PRACTICE’ INSTEAD OF ‘BEST FIT’ HRM
Customised and expensive early generation HR systems are being replaced with standard cloud-based services,
accessed under license from giant software suppliers such as Oracle16. For many organisations, the advantages
of cloud-based systems are clear; state-of-the art service delivery at a reasonable cost, maintained by third party
experts. An unexplored consequence of this is the forced adoption of systems-driven ‘best practice’ HRM, rather
than a ‘best fit’ approach as advocated in HRM theory13. New e-HRM is standard and often requires organisations
to re-engineer HR processes around them. For example, a UK-based global telecommunications company recently
deployed an Oracle Fusion e-HRM system across its world-wide operations, replacing various heavily customised
versions of an earlier e-PeopleSoft system. Extensive process changes were required and the functionality of the
new e-HRM became lower than its predecessor, raising questions about its alignment with other systems and its
acceptability to users.
3 REVERSAL OF OUTSOURCING
Simplified self-service e-HRM with dynamic approvals routing is reducing demand for large HR service centres.
Earlier outsourcing models, using third party suppliers in low-cost locations for high-volume delivery, are rapidly
becoming obsolete. New cloud-based e-HRM offers automated services which were previously delivered by HR
services centres, providing real-time data for smaller services centres to manage remaining HR transactions.
Recently, a UK-based global telecommunications and broadcast company invested in cloud-based systems to
reduce HR delivery volumes by its service centres. This allowed their return to the UK from locations in Eastern
Europe and India. Interestingly, the company is now considering using its cloud-based capabilities for revenue
generation, by selling managed HR services to other organisations.
As these brief case studies illustrate, IT is likely to have a profound influence on HRM in 2020. It will enable smaller,
specialist HR functions to offer strategic services and demonstrate a return on investment. It may also allow
successful HR departments to sell managed services for profit.
13 For example, Stavrou, E. T., Brewster, C., & Charalambous, C. Human resource management and firm performance in Europe through the lens of business systems: best fit, best practice or both? The International Journal of Human Resource
11
THE EFFECT OF
DIVERSITY
ON TALENT
THE GLOBAL VILLAGE
Whilst technology will evidently impact how we work in 2020,
the workforce itself is also growing increasingly diverse. Diversity
extends beyond gender, race and religion, encompassing sexual
orientation, culture, age, disability and all ways in which people
differ. A global study of over 10,000 people found that 33%
believe demographic shifts, and increased workplace diversity,
will have the biggest impact on HR in the next 10 years18.
Technology’s creation of a ‘global village’19 means that modern
working can involve collaboration across time zones and
continents, with people of different cultures working together in
global teams. Debate leader Helen Norris (Nationwide) shared
that one of her UK-based peers gives tasks to an assistant
in Australia, which are then completed by the time she starts
work the next day, perfectly demonstrating cross time zone
collaboration.
“
TECHNOLOGY’S CREATION OF A
‘GLOBAL VILLAGE’19 MEANS THAT
MODERN WORKING CAN INVOLVE
COLLABORATION ACROSS TIME ZONES
18 The Future of work: A journey to 2022 – PwC, 2014 http://www.pwc.co.uk/human-resource-services/publications/the-future-of-work-a-journey-to-2022.jhtml
19 The Gutenberg Galaxy: the Making of Typographic Man – Marshall McLuhan, 1962
20 Working with 5 generations in the workplace – Forbes – Rawn Shah, 2014 http://www.forbes.com/sites/rawnshah/2011/04/20/working-with-five-generations-in-the-workplace/
12
WHEN GENERATIONS COLLIDE
With this demographic set to form the workforce of the
future, businesses must aim to understand and satisfy their
demands, in addition to managing and integrating a mixture of
An increasing life expectancy and an ageing population means generations. In fact, how effectively 2020 leadership responds
that people are working beyond ‘normal’ retirement age, leading will likely be another key indicator of future talent management
to an overall ageing of the UK labour market21. However, there and inevitably, business performance.
is also an influx of smart young talent, pushing the boundaries
of working culture. Jeanne Meister (co-author of ‘The 2020
“
Workplace’) observed that ‘in four years, Millennials will account COULD TRADITIONAL EMPLOYMENT BE
for nearly half the employees in the world’20. There are many
preconceptions about Gen Y, who are a heavily stereotyped
REPLACED ENTIRELY BY SELF-BRANDED
demographic. Common assumptions include an absence of INDIVIDUALS SELLING THEIR SKILLS?
employee loyalty, a tendency to ‘job hop’, a sense of entitlement
regarding earnings, progression and training, a high degree of
technological competency and confidence, and an expectation A POTENTIAL SHIFT IN THE EMPLOYMENT
of employer loyalty and attention. Neil Ellett (Xerox) shared his
view that many Millennials expect employer loyalty but don’t LANDSCAPE
necessarily feel obliged to return the favour, whilst Martin
Spencer (Gocompare.com) added that they now expect fringe In addition to the changes in how we work and who we work
benefits and perks as standard (because other companies are with, many also believe that we could see a significant shift in
offering the same). Whilst there is some truth in this impression, how we are employed. 83% of executives employ temporary
many agree that there exists a ‘Millennial misunderstanding’. workers and 46% believe that over a fifth of their workforce will
soon be contingent23. This trend looks set to continue, ensuring
In comparison with other generations, research has confirmed that the 2020 workforce will be increasingly flexible. It has even
that to some extent, Millennials do expect to be paid more been suggested that traditional employment could disappear,
and promoted faster, are more likely to leave their jobs and do replaced entirely by self-branded individuals selling their skills.
demand more career development opportunities22. However, Whilst this may not come to fruition, there has certainly been
any business hoping to effectively manage Gen Y needs to read a significant rise in contracting, with an increasing number
between the lines. The Debate guests expressed their belief viewing themselves as members of a discipline, as opposed
that the differences between Millennials and other generations to part of a company24. From an organisational perspective this
are exaggerated, with the media playing a large part. Mike increase in flexibility appears positive, but it comes at a cost.
Beesley (RSG) championed this view, stating that in most cases Many non-permanent workers are not sufficiently integrated into
the core motivations of the Gen Y workforce are the same as a business, often experiencing mistreatment, exclusion and the
the workforce of 30 years ago , and that the ‘career for life’ inappropriate delegation of unfavourable tasks, reducing their
decline is not a recent phenomenon. Employers must consider productivity.
for a moment the environment in which modern employees
and jobseekers exist, where information is readily available on Another issue is the ‘principle-agent problem’ (agency theory),
company salaries, employee satisfaction and benefits. Many which is the challenge of motivating one party (the agent) to
guests agreed that Gen Y’s desire for comparative information act in the best interests of another (the principal)25. Temporary
is turning job interviews into a two-way process, whereby the workers may prioritise work for other clients or rush jobs so that
candidate is simultaneously assessing the interviewer, job they can take on new business, due to less attachment to a
role and business. In addition, Caroline Beer (The HR World) company than a permanent employee. So, should businesses
reminded guests that Millennials are also regularly targeted invest time and money into integrating and training these
with employment opportunities through advertising, recruitment temporary workers?
specialists and platforms such as LinkedIn. People are, to
some extent, a product of their environment, so is it really that The impact on work driven by factors such as employment type,
surprising that the wealth of information and opportunities culture, gender and religion could form a white paper in itself,
in modern society is producing informed and demanding but conversation at this Debate centred on demographics and
individuals? in particular, workplace generations.
21 Employers face new challenges from ageing workforce – The Telegraph, 2014 http://www.telegraph.co.uk/finance/jobs/10634819/Employers-face-new-challenges-from-ageing-workforce.html
22 What’s true about Millennials and what’s not: the why of Gen Y – CEB, 2014 http://www.executiveboard.com/exbd/human-resources/millennial-talent/index.page?cid=701800000019Tyy
23 The 2020 workforce: building a strategic workforce for the future – Success Factors and Oxford Economics (Webinar), 2014 http://www.successfactors.com/en_us/lp/oxford-economics-workforce-hub-pr.html#.VP1nAsmeYcs
24 The Future of work: A journey to 2022 – PwC - http://www.pwc.co.uk/human-resource-services/publications/the-future-of-work-a-journey-to-2022.jhtml
25 Lexicon – Financial Times, 2015 http://lexicon.ft.com/term?term=principal/agent-problem
13
ADAPT TO SURVIVE
“
CAN LEADERSHIP RESPOND? THE TASK OF DECIDING WHICH
Many senior figures believe that the required shift in management
TECHNOLOGIES TO ADOPT AND WHICH
practices, to accommodate the rapidly changing workplace, will TO REJECT IS BECOMING INCREASINGLY
have the single biggest impact on the way we work in the next
ten years . It is therefore concerning that in an international
26
DIFFICULT
employee study, only 34% believe that management is
prepared to lead a diverse workforce, and just 47% think they
can effectively lead global teams27. With a lot of inexperienced LEADERSHIP’S RESPONSE TO TECHNOLOGY
talent entering the workforce through entry level positions and
graduate schemes, is there a danger of the ‘blind leading the Gen Y workers are not just familiar with new technology, but
blind?’ Guests of The HR World Debate discussed the ways in expect to see it integrated into their working environment28.
which leadership must respond to key areas of change, with With technology experiencing constant innovation, the task
technology at the heart of the discussion once again. of deciding which technologies to adopt and which to reject
becomes increasingly difficult. It was suggested at the Debate
that a ‘sheep mentality’ has emerged, with people fearing that
“
IT IS CONCERNING THAT ONLY they are missing out by not adopting popular innovations in their
industry. One guest shared a cautionary tale; their business
34% OF EMPLOYEES BELIEVE THAT purchased presentation software Prezi29 because it was a ‘hot
MANAGEMENT IS PREPARED TO LEAD A product’, only to discover that it lacked the level of flexibility they
required. The agreed upon solution was that leaders need to
DIVERSE WORKFORCE ask themselves which innovations are relevant and appropriate,
only adopting new technology if it is likely to solve a business
need, improve a function or create a new opportunity.
14
FISH WHERE THE FISH ARE SOCIAL MEDIA; THE RISKS AND THE REWARDS
One of the key influences technology exerts on business is Leaders need to understand how technology can blur the
through social media. The vast majority of organisations, boundaries between work and personal life, specifically through
stakeholders and customers use a variety of social media social media, BYOD and now, Wear Your Own Device (WYOD)30.
platforms, creating numerous risks and opportunities that The mobilisation of technology means that employees can
require a leadership response. The Debate guests agreed that access their social media profiles and work emails from various
many businesses do not sufficiently align their social media devices in most locations. This both creates and solves problems;
with corporate strategies, wasting valuable opportunities for unrestricted access can lead to procrastination at work, but it
brand development and business generation. Adam Meadows can also improve productivity for those who use social media
(RSG) asked, “who’s friends with or following Xerox or First as part of their job (such as Marketing and Comms). Leaders
Great Western and why? Some follow to keep updated and need to decide the extent to which they empower employees
some follow to complain. You must consider your followers with trust and responsibility or alternatively, control access with
and produce content accordingly; one size doesn’t fit all”. server filters and restrictive policies.
Organisations need to understand their target audience,
ensuring that their social media output contributes to business Social media can become a serious problem when employees
efforts by tailoring content across platforms. Again, leaders need use work or personal accounts inappropriately. Leaders
to be effective decision makers; if certain social media platforms therefore need to ensure that there exists an education in
aren’t appropriate for their business, they shouldn’t be afraid correct social media conduct, including the consequences
of avoiding them. What they should avoid is worshipping false of posting inappropriate content for public consumption. In a
idols, valuing the number of followers, friends or views as more 2011 case entitled ‘Crisp vs. Apple Retail’31, an employee made
important than relevant connections and interactions. For those disparaging comments on Facebook about his employer and
leaders struggling to grasp the power of social media due to its the company’s products. The employment tribunal concluded
un-quantifiable ROI, Neil Ellett (Xerox) provided a great example: that the comments were damaging the employer’s reputation. In
“when the Ministry of Defence (MOD) entered Libya, they felt this case, the employee had received specific training on how to
they didn’t need social media or PR. In the end, Al Jazeera’s PR properly use social media in the context of his employment and
and social media teams were destroying them publically, so the therefore, the employee’s dismissal was deemed fair.
MOD brought in a significant PR and Comms team to protect
and develop their brand in response”.
30 ‘Wear your own device,’ WYOD, is coming to a workplace near you – ZDNet – Joe McKendrick, 2013 http://www.zdnet.com/article/wear-your-own-device-wyod-is-coming-to-a-workplace-near-you/
31 Facebook remarks that justify dismissal – CIPD - Jennie Atefi, 2014 http://www.cipd.co.uk/pm/peoplemanagement/b/weblog/archive/2014/10/24/facebook-remarks-that-justify-dismissal.aspx
15
“
PERSONAL DEVICES ALWAYS ON!
CAN RAISE SECURITY Matters are complicated further as the prevalence of BYOD increases. Personal devices
ISSUES CONCERNING can raise security and confidentiality issues (concerning company data and files), are
COMPANY DATA AND often immune to restrictive filters and increase the likelihood of receiving work-related
communications when out of the office. The latter contributes to the ‘always on’
ARE OFTEN IMMUNE TO phenomenon, with the methods of tackling this one of the more divisive topics of the
RESTRICTIVE FILTERS evening. Suggested out of office approaches included only answering phone calls,
checking emails just once a day and shutting off devices completely. Neil Ellett (Xerox)
shared his philosophy of empowerment, which is achieved by shutting off from work
when away and challenging his team to manage his inbox, duties and responsibilities. The
Debate guests suggested that empowerment could also be referred back to social media;
whilst some restriction may be necessary, leaders need to learn to focus on measuring
output and not input. What seemed evident is that the appropriate leadership response
is subjective, and as long as a healthy work-life balance is maintained, leaders should
decide on an approach that suits themselves and their team best.
“
MODERN MANAGERS AGILE WORKING
FACE THE CHALLENGE As the 9-5 Monday-Friday working week becomes less and less uniform, modern
OF LEADING AN managers face the challenge of leading an increasingly remote and flexible workforce.
INCREASINGLY Technology allows employees to access work networks from devices in most locations,
meaning they no longer have to be in work to be at work. Modern leaders must decide
REMOTE AND FLEXIBLE the extent to which they embrace this new flexibility, or enforce a more traditional model.
WORKFORCE Some guests felt that a physical hub or office space was still important, and that people
work together more effectively in person. Mike Beesley (RSG) shared his strong belief
that employees still want a workplace and seek the community environment; this was
supported by Sam Blackie (Royal London Group), who commented that people are tribal
at heart and want to belong. However, the multi-national nature of modern business
means that individuals may have to work in virtual teams, where face-to-face interactions
are rare or non-existent.
“
VIDEO CONFERENCES VIRTUAL COLLABORATION
ENABLE THE So is virtual collaboration inferior to working in the same room? Many issues were raised
IMMEDIATE FEEDBACK including time zone disparity, contrasting convenience and communication problems in
OF FACE-TO-FACE group tele-conferences. John Power (Legal & General) had a positive view on virtual
working, championing video conferences in particular; he stated that they enable the
INTERACTIONS, immediate feedback of face-to-face interactions, providing the best of both worlds.
PROVIDING THE BEST Whichever method of remote communication is utilised, Helen Norris (Nationwide) believes
that leaders need to ensure an etiquette is adhered to, with participants communicating
OF BOTH WORLDS regularly, engaged in interactions and allowing everyone to contribute. The Debate
response was supportive of remote teams meeting face-to-face on occasion, to better
understand each other’s personalities and characteristics. This in turn helps shape the
tone and nature of virtual collaboration and communication in the future.
16
OUTPUT OVER INPUT
According to Mandy Moore (Hay Group), one of the key leadership challenges will be “learning how to manage remote staff, potentially
from a range of different cultures and geographies, based on output rather than input”32. The flexible working trend is gathering pace,
especially given the recent legislation that ‘encourages working that suits an employee’s needs, e.g. having flexible start and finish times,
or working from home’33. For traditionalists in particular, embracing the fluctuating timetable of the working week may be problematic.
Combine this with the fact that many businesses are outsourcing activities or employing contractors, and the required shift in approach to
manage work taking place in multiple locations, at varying times and by various people becomes clear. The Debate response supported
the theory that leaders need to become more output focused. Organisational structures will continue to flatten, with a decentralisation of
command necessitated by the need for flexible workers to manage their own schedule and input.
It will take time for managers to accept that a member of their team may choose to do their weekly shop on a Wednesday afternoon.
However, if an employee is able to deliver great results whilst working flexibly or remotely, does it really matter how? Working flexibly
enables individuals to strike a healthier work-life balance, and if leaders are happy with the results, then this should be a win-win scenario.
Whilst Helen Norris (Nationwide) shared that she doesn’t believe remote management is natural to most managers, Chris Buckingham
(Resource Management) believes it is a necessary skill, as more and more employees demand choice and flexibility. This view was echoed
by Neil Ellett (Xerox), who stated that “customers have a preference as to how they contact you, just as employees have a preference
as to how they work”. A further issue raised at the Debate was that whilst a flexible or remote worker’s output may be sufficient, it could
be significantly below their potential, which is harder to assess without supervision. When a manager can oversee the means to which
employees achieve an end, they can advise and correct poor practice; empowering employees with independence requires a lot of trust.
An effective leadership response could be the communication of specific output-based targets and goals, with leaders available in a
consultancy role where required.
32 Three ways HR can understand the workplace of the future – Personnel Today - Cath Everett, 2015 http://www.personneltoday.com/hr/three-ways-hr-can-understand-the-workplace-of-the-future/
33 Flexible working overview – Gov.uk, 2015 https://www.gov.uk/flexible-working/overview
17
DIVERSITY AND DEMOGRAPHICS
With an increasingly diverse workforce to manage, leaders must engagement strategy, prioritising empowerment and career
understand unique circumstances and how they need to be progression. As a result, the number of Asda call centre staff
incorporated into work34. Senior management behaviour needs leaving for other jobs fell to an impressive 1.3% in 201438. So is
to set the tone, aligning with organisational values and ensuring it really fair to treat people as disposable commodities and then
that employee integration is a priority. Beginning with effective blame their departure on a generational lack of loyalty?
onboarding, specific systems (universal to the organisation)
need to be in place for all divisions of the workforce to remain
“
cohesive and productive35. The Debate focused heavily on DOES HIGH EMPLOYEE TURNOVER
ACTUALLY PRESENT AN OPPORTUNITY,
the diversity of generations in the workforce, specifically the
collision of demographics and managing Millennials. Many Gen
Y stereotypes were highlighted and Helen Norris (Nationwide) WITH TALENTED PEOPLE REGULARLY
BECOMING AVAILABLE?
shared her view that mature employees need to mentor Gen Y, in
exchange for assistance with new technologies and processes
in a dual learning process. However, an important point raised
early on in the discussion was that employees may not exhibit Interestingly, it was also suggested that an increasingly high
the perceived behaviours of their generation group. Sam Blackie employee turnover can actually present an opportunity, with
(Royal London Group) added that whilst there are generational talented people regularly becoming available. However, Martin
trends, leaders should segment based on need, not age. Spencer (Gocompare.com) countered that for roles requiring
rare skill sets, this still presents an issue. The guests also agreed
One of the most discussed stereotypes of Millennials centres that a negative stigma can be attached to ‘ex-employees’, when
around disloyalty and the job hopping trend. Research suggests in reality their reasons for leaving could be a lack of progression
that the average worker stays at their job for 4.4 years; however opportunities, life circumstances, low engagement or poor
the figure for Gen Y is said to be just half that36. Claiming that management. Chris Buckingham (Resource Management)
this is simply due to Gen Y’s supposed disloyal and demanding believes that if the door is kept open for ‘good leavers’ and they
nature carries little weight; it is less about different generations remain engaged with the business they are leaving, businesses
and more about the fact that the world of work today is very can re-hire upskilled talent in the future, whilst also gaining
different. In this environment, more and more young people valuable competitor intelligence. The Debate guests concluded
find themselves in low quality jobs lacking reward and content, that leaders need to establish their own management philosophy
where there is a casual attitude towards staff turnover. Call regarding staff and the social contract, which will likely differ
centres are a great example, with the industry staff turnover on career management responsibility, employee loyalty, good
figure expected to be around 26%37. Asda decided to take action leavers and the acceptable length of employment.
regarding their own call centre; they revamped their employee
18
MANAGING MILLENNIALS
Whilst the figures suggest that some acceptance of increasing frequently comparing their work with their peers40. Leaders can
employee ‘churn’ will be required, leaders do not need to stand create comparison opportunities, for instance games, leader
idly by. An analysis of the reasons behind this increasing trend boards and competitions where individual output is visible, whilst
among Gen Y reveals opportunities, especially regarding career providing feedback on performance and areas of improvement.
development and job content. It is a common misconception that Other examples of businesses accommodating Gen Y include
Millennials want to job hop; in reality they want to ‘experience encouraging loyalty through employee recognition schemes and
hop’, with most stating that other internal opportunities are just job changes every few years, offering global opportunities and
as desirable39. John Power (Legal & General) commented that using digital specialists to modernise technology and culture.
those on graduate schemes, accountants and military personnel
experience varied roles and locations, and that more leaders It is clear that there are numerous opportunities for leadership
should endeavour to provide a similar offering to non-graduates response, attempting to meet future trends and developments
and entry level employees. This not only holds an employee’s head on; however the Debate guests concluded that what we
interest, but simultaneously creates a pool of talent with cross- really need are more effective leaders. These leaders need to
functional experience, although a specialism vs. transferrable be identified based upon their management competencies and
skills debate is raised as a result. Whilst in practice there can be character, as opposed to length of tenure.
a reluctance to move staff across functions, research has shown
that companies can retain staff by offering diverse experiences
“
IT IS A COMMON MISCONCEPTION THAT
as opposed to fast promotion39. The guests supported this
philosophy of shifting career development back to the employer,
adding that offering a long-term progressive and varied pathway
MILLENNIALS WANT TO JOB HOP; IN
REALITY THEY WANT TO ‘EXPERIENCE
will help retain more of Gen Y.
39 What’s true about Millennials and what’s not: the why of Gen Y – CEB (Corp Exec Board company), 2014 http://www.executiveboard.com/exbd/human-resources/millennial-talent/index.page?cid=701800000019Tyy
40 The 2020 workforce –building a strategic workforce for the future – Success Factors and Oxford Economics (Webinar), 2014 http://www.successfactors.com/en_us/lp/oxford-economics-workforce-hub-pr.html#.VP1nAsmeYcs
19
GENERALISATION Y;
IN DEFENCE OF MILLENNIALS
BY STEVE DEVEREUX
MARKETING ASSISTANT
RESOURCE SOLUTIONS GROUP (RSG)
Entering the workplace in my early 20’s and straight out of university,
it is strange to think that I am part of the Gen Y demographic so
heavily featured in the media. I believe that stereotypes such as being
demanding, disloyal and impatient are offensive; in my eyes, much of this
generation’s behaviour is in fact motivated by ambition. Technology has
opened up a whole world of opportunity when it comes to communication
and information, meaning that we are aware of, and constantly compare,
what others are doing. If you know what is out there and what others are
experiencing, this can often lead to higher expectations.
41 The 2020 workforce –building a strategic workforce for the future – Success Factors and Oxford Economics (Webinar), 2014 http://www.successfactors.com/en_us/lp/oxford-economics-workforce-hub-pr.html#.VP1nAsmeYcs
20
THE TRANSFORMATIONAL CHALLENGE;
HOW HR MUST EVOLVE TO BE READY FOR 2020
HR is at a crossroads. Perceived by many to be as passive and service orientated42, the function needs to evolve and develop. Elements
of HR and the hiring function are already being replaced by technology43, and disruptive innovations are rendering many junior HR roles
obsolete due to self service. As a result, the view that much of HR’s procedures could be absorbed into other functions was raised at the
Debate. Whilst procedural knowledge and experience is vital, John Power (Legal & General) expressed his opinion that senior HR leaders
could come from other business management roles, enabling a more well-rounded view of business challenges (a topic addressed at
a future The HR World Debate in July 2015). Many of the most successful HR professionals are strong managers in other disciplines,
and Martin Spencer (Gocompare.com) added that you don’t have to come through HR to be a great HR manager. In addition, Neil Ellett
(Xerox) predicted that line managers will become more self supporting and that the trend of outsourcing procedures will intensify. Some
guests went as far as to claim that HR is in dire need of a rebrand, so how should HR respond?
21
BETTER TOGETHER; HR NEEDS TO COLLABORATE UPSKILLING FOR THE FUTURE
A lot of HR departments work in their own silos, so the first Discussion around collaboration with IT brought to light another
transformational challenge is to learn to effectively collaborate. significant challenge; the need for HR to upskill. There is an
The Debate response was that the three main departments emerging view that the discipline is becoming increasingly
HR needs to embrace are Marketing, Finance and IT, resulting outdated and as a result, HR decision makers often stick to
in more Board-level involvement. The guests felt that the purchasing ‘get out of jail technology and analytics’46, as
employee experience should be as important as the customer highlighted in David Beard’s case study. These are usually
experience. To achieve this, HR must collaborate with based around transactional activities such as payroll and are
Marketing; the communication experts that can help change only adopted for compliance reasons.
the business. Many guests agreed that HR and Marketing have
a shared purpose, and should therefore align their initiatives for The Debate guests agreed that before HR embraces disruptive
greater effect. A Debate guest shared an example of this kind technologies and capitalises on big data and analytics, it needs
of co-operation from a Financial Services firm; their HR function new employees who understand how best to utilise them.
influenced Marketing to make reward a key message in external Brian Sommer, former Senior Director at Andersen Consulting
communication campaigns, aligning with their HR-led internal (now Accenture), recently said that “giving powerful analytic
focus on rewarding employee behaviour. tools to many HR folks today (who lack awareness or skills in
these technologies and disciplines), is like giving a chainsaw
With Finance, interaction is required because scarcity of to a 4-year old”46. If there is a significant upskill in technology,
funding and a shortage of human capital are two of the key then we could see HR utilising big data to help businesses
obstacles when companies around the world seek to grow. plan and identify opportunities, helping to address the
The transformation of both departments’ operating models disengagement problem (through gamification and interactive
has already begun through the establishment of shared tools) and revolutionising talent management. With workplaces
service centres and centres of excellence , but collaboration 44
varying both in demographics and technological proficiency,
needs to continue as they are both important human capital the challenge then becomes to conduct an integration process
decision makers. The Debate began to align with the recent that doesn’t create resistance or conflict, and that doesn’t
PricewaterhouseCoopers (PwC) hypothesis that by 2018, HR empower some and isolate others47. Attendees agreed that a
and Finance could even be working as a combined function45. balance needs to be struck between adopting quickly enough
to satisfy ‘tech savvy’ employee demand, and dedicating time
and resources to ensure that everyone is on board and benefits.
“
GIVING POWERFUL ANALYTIC TOOLS TO
MANY HR FOLKS TODAY IS LIKE GIVING A RE-BALANCING OF COMPETENCIES
A CHAINSAW TO A FOUR YEAR OLD
It isn’t just concerning technology, however, that an HR upskill
is required. The guests cited quantitative thinking, integration
skills, proactive learning and general business savvy as common
departmental shortages.
44 How collaboration with HR can drive growth: Partnering for performance – EY, 2015 http://www.ey.com/GL/en/Issues/Managing-finance/EY-CFO-program-high-performing-partnering-for-performance-CFO-and-CHROs
45 The Future of work: A journey to 2022 – PwC, 2014 http://www.pwc.co.uk/human-resource-services/publications/the-future-of-work-a-journey-to-2022.jhtml
46 The problem is HR, not HR technology – ZDNet – Brian Sommer, 2014 http://www.zdnet.com/article/the-problem-is-hr-not-hr-technology/
47 HR Technology Trends In The Workplace In 2015 – Forbes – Karen Higginbottom, 2015 http://www.forbes.com/sites/karenhigginbottom/2015/01/06/hr-technology-trends-in-the-workplace-in-2015/
22
UPSKILLING IN TIME FOR 2020 THE FUTURE OF HR
The below diagram details how upskilling could benefit a HR
The Debate guests agreed that the key roles for HR going
department and inevitably, a business.
forward should be talent management and people strategy. HR
needs to understand technology and big data and put them
to work, transforming into a highly analytical and anticipatory
Integration function. Becoming a more strategic arm of the business will give
HR a ‘seat at the table’ and the ear of the Board. Anticipatory
Existing integration skills will be taxed by
the influx of non-transactional
HR departments are already 43% more likely to be involved
innovations, which need to be adopted in the long-term business planning process. Businesses that
at a rate which attempts to satisfy
demand, yet keeps everyone up to date.
involve HR at this level are also over six times more likely to
have exhibited strong financial performance, versus those
where the involvement of HR in the planning process is late
or non-existent49. HR has the opportunity to revolutionise talent
management, using data, analytics and technology to source,
Quantitative skills hire, engage, retain and monitor talent. Only 46% of executives
Statistical experts are required to exploit globally feel capable of extracting meaningful insights from
big data and utilise modern HR
available data, with 52% of these simply using workforce
technologies and analytical tools. Data
derived from workforce analytics, ROI issues to drive strategy. HR can adopt a proactive mindset, not
and employee contribution needs to be
simply considering where you can find an accountant now, but
mined for key information, interpreted
and then put to use. where you could source accountants in potential expansion
48
48 The problem is HR, not HR technology – ZDNet – Brian Sommer, 2014 http://www.zdnet.com/article/the-problem-is-hr-not-hr-technology/
49 “Is HR Failing To Capitalize On Big Data?” – Forbes – Karen Higginbottom, 2014 http://www.forbes.com/sites/karenhigginbottom/2014/10/09/is-hr-failing-to-capitalize-on-big-data/
50 The 2020 workforce – building a strategic workforce for the future – Success Factors and Oxford Economics (webinar), 2014 http://www.successfactors.com/en_us/lp/oxford-economics-workforce-hub-pr.html#.VP1nAsmeYcs
51 On the cusp of change; the future of HR – HayGroup, 2014 http://www.haygroup.com/uk/downloads/details.aspx?id=43441
52 The Future of work: A journey to 2022 – PwC, 2014 http://www.pwc.co.uk/human-resource-services/publications/the-future-of-work-a-journey-to-2022.jhtml
23
04
24
CONCLUSION
BY MIKE BEESLEY
CHIEF EXECUTIVE OFFICER
RESOURCE SOLUTIONS GROUP
“
THINGS HAVE CHANGED BUT
PEOPLE HAVEN’T
After an insightful debate, I reflected on the concept of change; one of the key themes throughout
the evening. The rate at which we are experiencing change is incredible, demonstrated by recent
findings that most things students learn at university are already outdated by the time they
“
graduate. Technology has been a key driver of change, and it will continue to influence both work
and leisure for those who embrace the digital world. Whilst virtual communication and remote
collaboration is now a common feature in the workplace, it is still my view that, where possible,
meeting face-to-face is the best method.
That being said, many changes have been exaggerated, most notably regarding Gen Y. In
my opinion, the values held by this generation are not that different from others. Things have
changed, but people haven’t and given the opportunity, I think that they seek the same things I
did; a positive career in a great work environment, clear opportunities for development and
progression and a good earning potential that allows them to shape their world outside of work. I
have always enjoyed working with this demographic, often finding them easier to work with than
older generations who can be reluctant to change. We have created the world that Gen Y exists in
and it was our generation of managers that have decreased the value of many of today’s job roles.
Leadership needs to respond, and the effort exerted in providing a better offering for employees
is likely to be repaid in loyalty, regardless of the demographic.
Finally, I believe that it is HR’s time to shine. HR is in danger of becoming a general function, but
its fate is in its own hands. In order to respond to the changing employment landscape HR needs
to collaborate and upskill, embracing new technologies and disruptive innovations. Strategic
analysis, proactive staffing and employee engagement policies, all viewed in both the short and
long-term, are all ways in which HR can and must evolve to be ready for 2020 and beyond.
04
25
GLOSSARY
AGILE WORKING GENERATION (GEN) X
This encompasses flexible hours, hot desking and/or home Those born approximately between 1960 and 1970.
working. Agile working takes the view that work is an activity
and not a place, with value placed on output above input.
GENERATION (GEN) Y/MILLENNIALS
Those born approximately between 1975 and 1995.
ALWAYS ON
The concept of being constantly connected by technology,
GEO-FENCING
blurring the lines between personal time and work.
A geo-fence is a geographical virtual barrier, defined by an
administrator. A text message or email alert is sent to the
AUGMENTED REALITY (AR) devices of everyone who enters it, enabling it to be utilised as a
Taking an existing picture, digital or print, and blending new marketing tool.
information into it. Using applications, print-based images or
symbols can be scanned by devices to reveal the encoded
ONBOARDING
content (e.g.: scanning an image with a phone to reveal a
The process through which new employees acquire the
related video).
necessary skills, knowledge and behaviours to become effective
organisational members.
BABY BOOM GENERATION (BABY BOOMERS)
Those born approximately between 1946 and 1964.
PRINCIPLE AGENT PROBLEM (AGENCY THEORY)
The challenge of motivating one party (the agent) to act on
BIG DATA behalf of another (the principal), is known as the principal-
Extremely large data sets that may be analysed to reveal agent problem, or agency theory for short.
patterns, trends, and associations, especially relating to human
behaviour and interactions.
SOCIAL/PSYCHOLOGICAL CONTRACT
The unwritten set of expectations of the employment
DISRUPTIVE INNOVATIONS/TECHNOLOGIES relationship, as distinct from the formal employment contract.
New innovations that drive change, often displacing established Taken together, the psychological and employment contracts
technologies or processes. define the employer-employee relationship.
26 04
GUEST PROFILES
DEBATE LEAD
DEBATE CHAIR
DEBATE GUESTS
27
SAM BLACKIE, PEOPLE AND CORPORATE AFFAIRS DIRECTOR, ROYAL LONDON GROUP
Sam joined Royal London Group in January 2012 as the Group People and Corporate Affairs Director. Previously, Sam held a number
of roles at Lloyds Banking Group where she developed wide ranging experience in a number of senior HR and Communications roles,
including in the IT division, Life & Pensions, Asset Finance and General Insurance Businesses. Sam has a wealth of experience in HR and
communications management. Her experience includes working with AXA Sun Life, Arcadia Group, WH Smith and ASDA.
28 04
DEBBIE MCGLASHAN, DIVISIONAL HR DIRECTOR, TOWERGATE INSURANCE
A generalist HR Director with experience in Retail, Automotive and Media industries amongst others. Debbie counts organisation
development, employment relations (including union negotiation), acquisition & divestment, colleague engagement and internal
communication strategies amongst her specialities. Her previous projects include establishing an own brand offshore operation and the
integration of acquired businesses.
JOHN POWER, STRATEGY, CHANGE & GOVERNANCE DIRECTOR, RETAIL SAVINGS, LEGAL & GENERAL
John is a Financial Services professional with over 25 years’ experience working in strategy development, business planning, change
management consultancy, shared service organisational structures and project management. John specialises in strategic planning,
distribution strategies, service delivery, leadership coaching & development and change. John has worked at Legal & General since 2013
and in his current role is responsible for driving the strategic development of the Retail Savings businesses L&G, Cofunds and Suffolk Life
brands, oversight of related investment in change and the governance frameworks that support the business area. Previously, John has
worked in a wide variety of roles at MetLife, HBOS/Clerical Medical and AXA Sun Life, as well as his own consulting business.
29
CONTACT
EXPERT RPO &
MSP SOLUTIONS
30
04 04
EXPERT RPO &
MSP SOLUTIONS
WWW.RESOURCE-MANAGEMENT.CO.UK