THE FUTURE OF WORK IS HERE: IS THE PEOPLE FUNCTION “FIT FOR PURPOSE”?

Dave Millner, Executive Consulting Partner, IBM Talent Management Solutions

FUTURE OF WORKHow must HR reinvent

itself?

TOMORROW’S HRWhat’s coming HR’s

way?

AGENDA

CONCLUSIONSThe Future of Work is

Here Now! How can HR add real value?

TECHNOLOGY

NEW ORGANIZATIONAL STRUCTURES& MODELS

TALENT SKILL GAPS/JOB DECONSTRUCTION

TAILORED EMPLOYEEEXPERIENCES

DISRUPTION & CHANGE(THE NEW NORMAL)

INFORMATION OVERLOAD, 24/7 DEMAND

BIG DATA & ANALYTICS

VUCA (R) WORLD

OF WORK

FUTURE OF WORK

4

TechnicalCapabilities

War for Talent

Globalization

Localization

LeadershipPipeline

Capabilities of HR

Cloud HR Systems

MOOC’s(Massive Open Online

Course)

Disruption of the CHRO

400 LMS & TM Vendors

SocialRecruiting

Employment Brand

Retention

Millennials

The “Overwhelmed” Employee

Workforce Planning

GlobalRecruitment

Evidence Based HR

HR Transformation

SocialEverything

GlobalPayrollEngagement

E-learning

Training Viability

Future of Work

Culture Change

BYOD(Bring Your Own Device)

Collaboration

Future of HR

Capability GapsBaby Boomers

Retiring

Digital Transformation

HR PredictiveAnalytics

Analytics & Metrics

Employee Voice

Innovative HCM

Disruptive HR

Agile HR

Women in Engineering and

IT

Automation

Line Manager Capability

Succession Planning

E-learningStakeholder Management

Gig Economy

Skills Gaps

Employee Experience

Still Personnel Not HR!

HR 2017: A TOUGH JOB!

Future of Work Business Targets

Digital HR

Agile HR

Lean HR

Continuous Listening

HR Data

HR Reporting

Predictive Analytics

HR Legislation

Cost Efficiencies

Productivity Efficiencies

“Best in Class” Talent

HR IS STILL OPERATING AS IT WAS 5 TO 10 YEARS AGO & YET EXPECTS DIFFERENT

RESULTS!

HR CAN’T USE AN OLD MAP TO FIND A NEW ROUTE TOWARDS THE FUTURE

THE 6 C’s ARE HOLDING US BACK!

6

THE 6 C’s

CREDIBILITY

COMMERCIAL

CONFIDENCE

COURAGE CAPABILITY

CONNECTED

7

STAGE 1 STAGE 2 STAGE 3 STAGE 4 STAGE 5OPERATIONAL EXCELLENCE

FUNCTIONAL EXCELLENCE

PERFORMANCE & PRODUCTIVITY

FOCUS

EMPLOYEE EXPERIENCE FOCUS

BUSINESS INSIGHT FOCUS

Operational Process Efficiency

Expertise Driven Programs and Improvement

Alignment of HR and Business

Outcomes

Competitive Systems of

Engagement

Proactive “Added Value” Digital

People Practices

WHERE IS YOUR HR FUNCTION OPERATING TODAY?

HR Maturity Model

It’s a shift of:• Mindset• Behaviour• Infra-structure• Focus

8

TOMORROW’S HR

9

WHAT WILL YOUR SHOP WINDOW SAY ABOUT YOUR ORGANIZATION?

TALENT ACQUISITIONBATTLEFIELD

Quality, Quality, Quality

Technology

Competitive

Advantage

Recruitment vs.

Investment

Talent Mobility

Start of the

Employee Experienc

e

10

FUTURE OF HR TRENDS

Create Experiences

Drive Business Strategy

Enable WorkforceConstant rhythm of feedback/ insights to drive engagementGame changing approaches to

employee inputPersonalized just in time

learning

HR shift from being a “cost centre” to being a “profit

centre”Show real time

insights/trends through talent data

Drive fact-based decisions for tangible ROI to the

business.

Employee experiences are as important as customer

experiencesUse analytics to understand employees insights better

Focus on touchpoints where employee experience drives productivity etc. from Day 1

SYSTEMS OF RECORD ERA

COGNITIVE ERA

Re-engineering Big Data & Analytics

Outsourcing

Cognitive

Cloud

Mobile

Social

IT’S ABOUT BUILDING A MORE PERSONALIZED EMPLOYEE EXPERIENCE

(Personal, Co-created, Engaging)

THE HR JOURNEY TO COGNITIVE

IT’S TIME TO RE-THINK HR STRATEGIES AND SYSTEMS THAT WERE DESIGNED

FOR ANOTHER ERA

REASON

They can reason, grasp underlying concepts, form

hypotheses, and make sense of and

extract ideas.

UNDERSTAND

Cognitive systems can receive and process

unstructured information (images, text, language and

data) like humans do.

LEARN

With each data point, interaction and outcome, they

develop and sharpen expertise, so they

never stop learning.

INTERACT

With abilities to see,

talk and hear, cognitive systems can interact with

humans in a natural way.

WHAT IS COGNITIVE COMPUTING?

TOO ADVANCED FOR US!!!

66% of CEOs recognize that cognitive will drive

significant valuein HR1

37% of CEOs expect to adopt cognitive

computing in the HR function in the

next 3 years2

CEO PERSPECTIVE

55% of HR executives

believe cognitive will be a disruptive

force in the next 3 years1

CHRO PERSPECTIVE

Slow response to employees

Lack of agility in response to

change

Misaligned labor costs

Overly complex HR processes

Slow trans-formation of

skills

0

10

20

30

40

50

35 38 39 39 40%

of r

espo

nden

ts

HR challenges that cognitive computing could best address

IT’S ABOUT BUILDING A MORE PERSONALIZED EMPLOYEE EXPERIENCE

14

TOO ADVANCED FOR US!!!

KEY QUESTIONS WE EXPLORED

Do employees make the same decisions when advised by cognitive

systems versus traditional HR professionals?

Do employees feel as well informed by cognitive solutions as traditional HR

approaches? To what extent do workers trust

information from cognitive systems versus traditional HR sources?

Would employees be happy to reuse the cognitive system in the future?

HR SCENARIOS

EMPLOYEE PERSPECTIVE

8,600 EMPLOYEES SAID:

They are able to glean appropriate information from

cognitive systems.

Cognitive offers an informational advantage to

employees.

In less personal situations, cognitive approaches are

equally trusted by employees. (still some work to do when

personal situations are involved)

Expect a short employee learning curve with cognitive

systems.

Transform Talent Acquisition

Transform Talent Development & Engagement

Optimize HR Operations

TOO ADVANCED FOR US!!!

• Recruitment: Tap into multiple data sources that reveal new insights and enable better

informed decisions about prospective employees• Onboarding: Utilizes hiring data to create a

unified employee experience from Day 1

• Engagement Support: Create enabling employee experiences

• Coaching & Learning Advice: Personalized recommendations for learning and career

management

• HR Call Centre Advice: Equip & empower HR advisors to provide more streamlined and

accurate information• Analytics: Provide insights that drive

investigation and better understanding

US Consumer Goods Company Global consumer products company identified

HR service needs, including desire to reduce call duration and improve employee satisfaction

Employees expected a communication channel and interaction that was supported by HR service desk advisor

Introduced a “Cognitive Agent” that provided omni-channel access to service desk

Seamlessly integrated and used information based on natural language processing to extend agent’s expertise

Immediate feedback from employees was extremely positive

20%improvement in

employee satisfaction with HR

25%reduction in HR

service call re-open rates

Improved employee and advisor experience

Cognitive HR Agent Assist

COGNITIVE HR CASE STUDY

Forum Engineering Inc. Engineering placement firm specializing in

the placement of 14,000 technical and engineering contractors per year

Business challenges included long time to hire, misalignment of candidates, and variability of sales representatives

Cognitive staffing solution introduced new ways of sourcing/matching, including digital interviews, online personality assessments and increased data types

Results include greater customer satisfaction and worker fulfillment

Agency able to fill positions more quickly than competitors and earn greater market share

matching improvement

83%reduction in matching attempts

6x Accelerated

placement process

COGNITIVE RECRUITING CASE STUDY

Cognitive Talent Staffing

Taking the first steps toward Cognitive HR need not be too scary!

Recommendations for introducing cognitive

capabilities into your HR transformation

Consider how cognitive solutions could strengthen your HR transformation

Understand and maximize the possibilities of your data

Start simple, but start smart; data is key!

Enable and expand across HR building on learnings

Build trust and engage people about automation

12345

STARTING THE COGNITIVE HR JOURNEY

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CONCLUSIONS

I don’t understand38%: Lack of understanding how to use analytics to

improve the business

I don’t have the skills28%: Lack of skills internally in the line of business

I don’t have the time34%: Lack of bandwidth due to competing priorities

Source: Analytics: The New Path to Value, a joint MIT Sloan Management Review and IBM Institute for Business Value study. Copyright © Massachusetts Institute of Technology

FUTURE OF HR: GET NUMBERS SMART!

IT”S ABOUT USING DATA TO DRIVE BETTER BUSINESS & EMPLOYEE OUTCOMES;TALENT ACQUISITION IS A GREAT PLACE TO START!

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FUTURE OF HR: PEOPLE ARE THE NEW NUMBERS

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Business Relevant Analytics

Aligned People &Technology Processes

Employee & Customer Connected

Future Proofed

High Performing & Engaged

Organization“…it’s about changing our mind-sets; are we

stuck in our comfort zone?”

FUTURE OF HR: PEOPLE ARE THE NEW NUMBERS

HR Thought Leadership

Business & Functional

Leadership

Commercial Credibility

High Performance Focus

Capability Shift

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HUMAN RESOURCES

HUMAN & ROBOTS• Don’t Fear the Robots: it’s about

augmentation not necessarily replacement.

• Start with the Problem not the Solution: every problem is an opportunity in disguise!

• Empathy: the more machines we employ the more people skills we will need!

• It’s Not Magic: it’s another level of automation that we have all lived with for years (the focus this time is on Knowledge and Service Industry Workers).

HUMAN RESOURCES

IN A WORLD THAT CHANGES SO MUST YOU!

Dave Millner,Executive Consulting Partner, IBM Talent Management Solutions

dave.millner@uk.ibm.comMobile: +44 (0) 7779 802830

Twitter: @HRCuratorTop 20 Most Influential People in HR on Twitter 2016No 1 Twitter Brand: Future of Work

HUMAN RESOURCES

Introducing Bill Boorman

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CONCLUSIONS

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HUMAN RESOURCES

Observations & Questions?