My colleague Robin Erickson, Ph.D. and I just completed a webinar called "Get Ready for 2015: Ten Top Actionable Talent Acquisition Trends." In the question and answer period at the end, one of the almost 1,000 registrants asked about the ability to actually apply for a job via a smartphone:  Will it make the recruiter’s job harder or easier? It’s a good question, isn’t it?  Is ease in applying for a job a goal?  If it is really easy, will recruiters just be flooded with junk applications?  Or should the act of applying be laborious enough that only the truly committed apply?  Is it different by industry? By age group? A poll during the webinar showed that over a quarter of participants used mobile in the recruiting process—but we really don’t know how many supported the ability to apply with a mobile phone.  And this moves us to the broader consideration—how do we in human capital management (HCM) plan to use smartphones with not only applicants but also with our existing employees? What is your company’s stance on HCM apps on smartphones?  Do you use them today? Will you add mobile aps in the year ahead?  Please let us hear from you!  Take this short survey (just a few minutes, promise!) on use and intended use of human capital related apps on Smartphones by clicking on the link below. https://bersin.qualtrics.com/SE/?SID=SV_4Oe9ZKgWotNWEVT&Source=BLG   This publication contains general information only and Deloitte is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. Deloitte shall not be responsible for any loss sustained by any person who relies on this publication. As used in this document, "Deloitte" means Deloitte Consulting LLP, a subsidiary of Deloitte LLP. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting. Copyright © 2014 Deloitte Development LLC. All rights reserved.  

You know you will need to hire new employees in the new year—but are you ready? Will your competition out-engage you in your marketplace? And what will you do if you cannot find the talent you need when you need it?   This afternoon, my colleague Katherine Jones, Ph.D. and I presented a webinar that outlined ten actionable trends that we think will make a difference in talent acquisition (TA) in 2015. If you missed it, you can check out the live tweets at #PFLiveChat and here is a brief recap: Manage Your Employment Brand: Your employment brand reflects your organization and is your strongest asset for attracting new employees and continuously attracting/retaining the high-performers you don’t want to leave. Is your employment brand simply irresistible? And are your employees brand ambassadors for your organization? Craft a Strategic Social Media Campaign: Recruiters need to "go where the puck will be" and understand where candidates are spending their time (pssst: they’re not just on social networks and job boards!). Our recently published High-Impact Talent Acquisition (HITA) industry study found that mature TA functions are five times more likely to have an effective social media campaign.[1] And leading-edge companies have dedicated social media strategists to curate content. Develop a Candidate Experience Strategy: Just like in dating, recruiters should create a good first impression with candidates. Check out my September 28th blog, It’s All About the Candidate Experience, for some suggestions on how to differentiate your organization’s candidate experience. Reimagine the On-Line Application: Unfortunately technology hasn’t kept up as job seekers today are faced with first-generation hiring management systems. Face it: many applicants are searching for jobs on their mobile devices and they’re not going to fill out a 25-page application on their phone. Want to know what’s happening with mobile? Take a short survey and check back in a couple of months for the results. Reinvent Candidate Communications: Ever applied for a job and wondered if your resume went into a black hole? Or worse, applied for a job and received an auto-reject notification within minutes? In a world where we can personalize our M&M’s (yes, I did it for Christmas!) and even our phones know our names, recruiters should be sending personalized content to candidates. Make sure the messages are authentic and representative of your employment brand. Engage Hiring Managers: According to our HITA research, recruiters developing effective relationships with hiring managers is the most influential drive of TA performance outcomes—and a staggering 97% of mature TA functions report that they have strong relationships with hiring managers.[2] And guess what? Developing relationships doesn’t cost your organization much money—just time and mindfulness! Develop Talent Pipelines: Not to be overlooked, developing candidate pools is the second most influential driver of TA performance outcomes.[3] The task of recruiting has moved from the reactive filling of requisitions to proactively courting high-quality talent. Ultimately, with talent pools done well, recruiters can deliver talent on demand. Up the Ante on Onboarding: Did you know that 22% of staff turnover occur in the first 45 days of employment and that 4% of new employees leave after a disastrous first day?[4] Organizations should customize their onboarding programs for various job roles and generational groups, but should include a consistent experience and messaging. In addition, automation is critical to both efficiency and consistency, and some onboarding can be done online before the first day (aka "preboarding). Make Your Metrics Matter: Understanding the importance of metrics and analytics is a significant challenge for the talent acquisition function. With an array of metrics available, organizations should first decide what they want to measure, then determine if they have the technology in place to support the need. The next big thing? Going beyond historical reporting to predictive analytics. Plan for Global TA: Regardless of organizational maturity level, our research found that 68 percent of TA functions were not globally prepared.[5] TA leaders should consider their unique talent landscape—which includes candidate availability and engagement, as well as technology solution and services providers—as they look to take their functions to a global level.   So what else do you think will be important for Talent Acquisition in 2015? Feel free to add a comment below, connect with me on Twitter @RAEricksonPhD, or by email at rerickson@deloitte.com   [1] High-Impact Talent Acquisition, Key Findings and Maturity Model, Robin Erickson, Ph.D., Kim Lamoureux, Denise Moulton / Bersin by Deloitte, September 2014. [2] Ibid. [3] Ibid. [4] Help New Hires Succeed: Beat the Statistics, SHRM Presentation by The Wynhurst Group, April 2007, www.masteryworks.com.; Egon Zehnder International, 2007, as quoted in http://selectmetrix.com/ blogs/category/onramping/. [5] High-Impact Talent Acquisition, Key Findings and Maturity Model, Robin Erickson, Ph.D., Kim Lamoureux, Denise Moulton / Bersin by Deloitte, September 2014.       This publication contains general information only and Deloitte is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor.   Deloitte shall not be responsible for any loss sustained by any person who relies on this publication. 

This year our Predictions for 2015 has some hard-hitting new ideas to consider - in this article I will give you some highlights, and you can download the report here. Top Line: Enormous Changes are Ahead 2015 is going to be a big year in the world of corporate talent. The economy has improved (near full employment in the US), the job market for technical and professional skills is hot, and technology is radically changing the whole nature of work. Thinking back over my 35 years as a working professional, I barely recognize what work is like today. I was joking with my children about how I used to go to work with a briefcase filled with papers, there were no computers, no voicemail, and only an office of people and a telephone to work with. We had a steno pool (people who typed letters for us), and I had an old-fashioned boss who sat in the corner office with his tie on and his jacket buttoned.  He was really a wonderful manager, but it was all about "doing your job" and getting a good performance appraisal. Today we work at home, in coffee shops, on airplanes, and often late at night. We interact with people all over the world easily, and we have tools and technologies at our fingertips to find information, write, communicate, and analyze data like never before. And thanks to the growth of cognitive computing technologies, we will all soon have thinking machines in our phones, machines that monitor where we are, what work to do, what customer problems to solve, and even what HR problems to address. Much of this transition has been positive, but much has also been difficult. Many of us are "overwhelmed employees" and our research shows that employee engagement and retention is at an all time low. While many people are still looking for work, more and more people are getting fed up with the 24/7 work environment around us, so they go to social websites like LinkedIn or Glassdoor and jobs are offered to them. The concepts of "integrated talent management" are rapidly changing, with most HR practices being reinvented.  In fact I'd say that talent management as we've known it over the last ten years is about to go away and be reinvented, with a focus on what I call Engagement, Experience, and Environment.  (Read my latest article "Is Corporate Talent Management Dead?" if you want more on that topic in particular.) The ten predictions we write about for 2015 cover topics from employee engagement to new technologies for HR, a whole new focus on culture, renewed strategies to develop leadership, and the need to revitalize HR and invest much more heavily in analytics. But overall the big trend is this:  almost everything we've done traditionally in HR has to be adjusted (or re-engineered). The younger, more mobile, more agile workforce and workplace we now live in demands new approaches: flexible work policies, more focus on empowerment and skills development, a more humane work environment, and both financial and workplace benefits which are locally relevant. As we look at 2015, we see five fundamental shifts which dramatically impact corporate talent, leadership, and HR strategies. 1. Technology has removed the barrier between work and life. Companies have to focus on culture, environment and simplification. We are working all the time, emails and messages are streaming in 24/7, and information, conversations, and content is literally streaming at us wherever we go. The work "environment" we live in today is radically different: people work wherever they want, leading to a huge wave of open offices; over-work is a tremendous challenge, and people are not sure how to deal with the overwhelming amount of information they receive each day. Design thinking, simplification, and ease of use are the new mantras for corporate talent programs. 2. Employee engagement, culture, and leadership are lifeline issues. Glassdoor data shows a split in companies. There are huge segment of companies who are "highly engaged" and a similarly large number of companies whos employees are "actively disengaged." The highly engaged companies are attracting the best people, delivering greater customer service, and innovating better. These companies are focused on mission, culture, and leadership - and they understand that people are not "talent," they are people - with their own personal needs and aspirations. This focus on engagement has impacted everything we do, because ultimately employee engagement is all a business has. Companies have to rethink their coaching and development strategies, their career mobility strategies, and how they develop and select leaders. Today's leader focuses on "building a highly engaged team" not just "delivering on business results." Unfortunately our research shows that the gaps in corporate leadership are wider than ever. Research by Deloitte and others (highlighted in the report) will show you how leadership development, assessment, and coaching has to be a top focus for 2015. 3. Learning, capabilities, and skills are the currency of success. From both an individual and organizational standpoint, technical and professional capabilities are now the currency of success. If you can attract or develop better scientists, engineers, sales people, or functional experts you will beat your competition. And once you attract these people you must give them a compelling learning environment to stay current, as technology advances at an accelerating rate. L&D organizations and strategies have not kept up, and we are in an era where corporate learning is going through as much change is we witnessed in the early 2000s when e-learning hit the scene. 4.  HR as a function is at a crossroads and must reinvent itself. Underlying most of these issues is the need to reskill and re-energize HR. It's interesting that the US organizations SHRM and HCI are now competing to sell HR certifications. The problem is not one of certification, it's one of redefining what HR professionals do. Company after company I talk with is going through a restructure of their HR team, moving HR closer to the business, and reskilling generalists into finely tuned business consultants.  I believe this is a decade-long transition taking place within the HR function. 5.  Data is now integral to all decisions HR must make. Finally, we are entering a talent world where people data is now central to every decision we make. Organizations that are investing in analytics teams, analytics tools, and analytics expertise are going to far outperform their peers. Who to hire, who to promote, how much to pay, how to develop, what next job to take - all these decisions are now "data enabled" and we expect HR technology, which is becoming more integrated every day, to become more and more like "instrumentation of your organization"- giving you data to improve organizational performance every day. Read our predictions and join me on our webinar on Friday, January 23, 2015, at 2PM EST. (Register Here.) This is my eleventh year writing the Bersin Predictions for the coming year, and I think the changes ahead are more transformational than ever before. I hope you find the report educational, inspiring, and helpful as you plan your year. I am thankful to the world community of talent and HR leaders I get to work with every day. And as always I look forward to your comments and feedback.  (Click here to download report.)

  Does your organization have the technology it needs to meet your performance management goals?  Many do not. Companies we surveyed are looking closely at both how they manage and measure their employees’ performance -- and at the technologies they have in use today.    In our recent Bersin by Deloitte study of buyers, we learned that of companies purchasing new talent management software this year, 67 percent were planning to purchase performance management software, either for the first time or as a replacement for existing solutions.[1] [2]   Why? There are several factors:   Performance management is increasingly deemed critical in today’s organizations and the historical systems are not perceived as adequately supporting next-generation practices; The current installed systems are aging;  Companies may have multiple different systems and seek to consolidate into one corporate-wide platform.   Of those replacing existing software, fully 75 percent sought to replace a standalone performance management application with an integrated suite solution.   The majority of organizations we surveyed (74 percent) use one software solution for their performance management system, but respondents reported that as many as ten or more systems are used inside their organizations today.   The source of this software varies:  41 percent of respondents reported that their performance management solutions are self-developed; 38 percent are provided by a vendor (often a suite vendor, although the module may be stand-alone) and 21 percent use modules that are within their core HR systems.   In 19 percent of organizations, the software in use is aging -- seven or more years old. This is especially the case with large organizations, where 29 percent of organizations with more than 25,000 employees have owned their performance management system for more than seven years. Reliance on home-grown, self-developed solutions for performance management may well be part of the reason for the interest in procuring new applications in the near future; the lack of any technology solution, as noted by 15 percent of respondents may be another. And twelve percent of the population we surveyed noted that they did not have a formal performance management process at all.[3] If you are one of the many HR professionals looking at new technology to aid in the management of your employees’ performance, you may also be seeking criteria to help in the selection process. Our upcoming report "The Definitive Guide to Performance Management Software: 2015 -- A Roadmap to Performance Optimization and the Solutions that Support It" overviews the key features you will want to consider and the vendors that provide them. Look for this new report shortly!     This publication contains general information only and Deloitte is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. Deloitte shall not be responsible for any loss sustained by any person who relies on this publication. As used in this document, "Deloitte" means Deloitte Consulting LLP, a subsidiary of Deloitte LLP. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting. Copyright © 2014 Deloitte Development LLC. All rights reserved.           [1] Investments in Human Capital Management Systems 2014: What Technology Users Have and What They Will Buy in the Year Ahead. Katherine Jones. Bersin by Deloitte. April 2014. [2] The four application areas most often sought as an integrated via a suite rather than have as standalone solutions are recruiting, onboarding, learning and performance management. [3] Investments in Human Capital Management Systems 2014: What Technology Users Have and What They Will Buy in the Year Ahead. Katherine Jones. Bersin by Deloitte. April 2014.

Most organizations have a limited view of their workforces in terms of both headcount numbers and costs. While HR typically reports headcount figures, the task of calculating the cost of the workforce is often left to Finance. Unfortunately, many HR groups don’t have the expertise or credibility to report costs and therefore defer to their Finance counterparts. Headcount figures are important, no doubt, but this data alone only tells part of the story. Executives and line managers want to know how much they are spending on talent, and how different decisions will impact these costs. HR, in partnership with Finance, needs to take the initiative to calculate and report these costs. The HR leaders at ConAgra Foods did not shrink away from this challenge. Until recently, ConAgra Foods struggled to collect accurate data about its workforce. Information was spread across the organization in siloed systems and was often difficult to reconcile (sound familiar?) In a relatively short timeframe, however, ConAgra Foods’ HR team has been able to leverage technology solutions to provide both current and projected headcount as well as total workforce costs. To estimate these costs, the analytics team partnered with Finance (a key relationship for HR and analytics teams) to begin mapping all of the available data and processes. The company was using two principle systems: the HRIS, managed by HR, provided data on salary and benefits; and an ERP system, technically owned by Finance, provided cost data.  Neither system held all of the necessary costs or details for accurate planning, forecasting, and analysis.  The goal was to deliver all workforce cost data, regardless of source, to the cloud-based workforce planning system (Visier) to provide a complete picture of costs. To calculate the total cost of the workforce (TCOW), the team developed a visual taxonomy of the different data elements that contribute to this figure (see Figure 1). The four major categories include direct compensation, benefits, employer costs for labor, and workforce overhead. Each of these categories, in turn, has subcategories with specific data elements.  All of these need to be considered when calculating the total cost of workforce. Many times companies only look at payroll or compensation figures, but as this chart shows, that is only part of the total cost. With all of the data in one place, ConAgra Foods’ HR and Finance teams are now able to see the impact of spending at a minute level and understand what impact its workforce costs have on its financial plan. They can also run different scenarios, for example, modeling workforce costs between two different locations, or modeling the cost of entering new markets versus continuing operations as is. In the past, this would have been a highly manual, time-consuming, and error-prone task. If your HR organization is not able to do these types of analyses, it should work to get there. Increasingly business leaders are calling on HR to step up its game in using analytics to make better workforce decisions. Cost is a key component of these decisions. So if you don't have a strong relationship with your CFO, start building that relationship now. Figure 1: Total Cost of Workforce Taxonomy        

One of the things I enjoy the most about being an analyst is the opportunity to speak with Bersin members about the Talent Acquisition issues they’re facing. Last spring, we started getting a lot of questions about campus recruiting programs, e.g., How should we structure our campus recruiting program? Do you have any frameworks, metrics, or other guidance for developing a campus recruiting strategy? What metrics should we use to measure program success?   In response to this member demand, I’m excited to announce that we’re publishing a new research report today, Developing an Effective Campus Recruiting Program, that answers these questions and more.   Why should organizations invest the time and resources in a campus recruiting program? Campus hires can provide organizations with a consistent pool of workers in today’s talent-constrained global business world, with 73 percent of large organizations hiring interns to fill full-time positions.[1] Campus programs boast high retention rates with 69 percent of campus hires remaining with an organization after five years.[2] This is good news, given that employee turnover can be costly.   Campus recruiting can deliver additional strategic benefits by helping organizations manage talent gaps and elevate their profiles as potential employers on campuses. It also can bring fresh and diverse perspectives to the organization on topics ranging from technology to contemporary workplace policies.   To help organizations assess the current state of their campus recruiting programs and identify opportunities to develop a strategic approach, the report outlines six critical steps: ·        Create a compelling business case. Present convincing business reasons for increased investment and commitment to campus programs, such as how they can tap rich talent pools, reduce turnover, and help build leadership pipelines. Presenting a clear vision for your recruiting efforts is critical to creating an effective program. ·        Identify stakeholders and decision-makers. A large number of individuals need to champion, support and ultimately manage program development and implementation. Executive buy-in and support are likely to contribute to the overall success of a campus program. ·        Develop strategy and tactics. A campus recruiting program may satisfy a variety of needs, from traditional internships and cooperative programs to entry-level positions and even experienced hiring. Organizations should align their campus recruiting initiatives with their overall talent acquisition strategy and develop a work plan. ·        Determine a budget. Some campus recruiting programs fail to launch due to lack of financial support from leadership. Set a realistic budget and look for ways to optimize efforts by using niche job posting sites, hosting virtual job fairs, and partnering with local universities. ·        Align resources. As the need to hire more skilled entry-level staff and interns in competitive fields grows, organizations should look to individuals from the business, former interns, and college alumni networks to help align campus strategies and program execution. ·        Ensure sustainability. Delivering a sustainable program requires anticipating emerging business needs and continued identification of the successes and shortcomings of a current campus recruiting program. Assessing ROI and the value of the program will be the truest measure of a program’s success.   Interested in learning more? Download the complimentary WhatWorks® Brief and join Denise Moulton and me for an online webinar, Going Back to School: Developing a More Effective Campus Recruiting Program, on February 24, 2015 2:00 p.m. ET.   As always, feel free to add a comment below, connect with me on Twitter @RAEricksonPhD, or by email at rerickson@deloitte.com                 This publication contains general information only and Deloitte is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. Deloitte shall not be responsible for any loss sustained by any person who relies on this publication.   [1] Source: "Infographic: Internships Survey and 2014 Internship Trends," Internships.com, January 23, 2014, http://www.internships.com/eyeoftheintern/news/idc-news/internships-survey-2014-internship-trends/ . [2] Source: "2014 Internship & Co-op Survey," National Association of Colleges and Employers, April 2014, http://www.naceweb.org/uploadedFiles/Content/static-assets/downloads/executive-summary/2014-internship-co-op-survey-executive-summary.pdf .  

HR organizations got a boost in investment in 2014, with budgets up an average of 4% over the prior year. Much of the extra money went to increased headcount, with HR staffing up 3%, on average. Another big area of investment was HR technology, with one-fifth organizations saying they increased their spending on HR systems during 2014. (Source: HR Factbook 2015, Bersin by Deloitte.) So how are these investments paying off? For most organizations, not very well. In Deloitte’s newly-released study, just 36% of organizations rated their HR team's performance as either "good" or "excellent." And these ratings are not significantly better than in past years (see figure 1.)   So for many organizations, that additional money has not been well spent. But some HR groups are different, and HR leaders would do well to learn some lessons from these organizations. Bersin by Deloitte's research describes a growth model in the maturity of HR capabilities. Most HR organizations start out as "compliance-driven" functions, focused on primary services such as payroll and benefits and meeting legal requirements. Over time, HR organizations need to expand their scope of initiatives and business alignment. At the highest stage of maturity, the "business-integrated" HR organization helps drive the business through workforce strategies and people data. These business-integrated HR functions do spend more than their less mature counterparts - $4,434 per employee, on average, as compared with just $2,112 among compliance-driven HR functions. But the difference is, their efforts are paying off. As evidence, business-integrated HR organizations have lower involuntary turnover compared to compliance-driven HR organizations (8% vs. 11%)—and each percentage point drop in turnover can be worth millions to a large organization. In addition, companies with business-integrated HR organizations have higher promotion rates, creating solid talent pipelines that enable them to take a long-term view of roles and future needs. So when HR organizations look at their budgets, they need to ensure their spending is helping to enhance their effectiveness. The Deloitte study recommends the following to help organizations get started: Design the HR organization to deliver solutions: For many businesses, it is time to redesign HR with a focus on consulting and service delivery, not just efficiency of administration. HR business partners must become trusted business advisors with the requisite skills to analyze, consult, and resolve critical business issues. Create business-integrated "networks of excellence." Rather than locating HR specialists in central teams, embed them into the business—but coordinate them by building a strong network of expertise. Recruitment, development, employee relations, and coaching are all strategic programs that should be centrally coordinated but locally implemented. When specialists in these areas live and work close to the business, their impact is greatly enhanced. Make HR a talent and leadership magnet: How do people get HR jobs in your company? If they accidentally move into HR, this may be holding you back. Create rigorous assessments for top HR staff and rotate high performers from the business into HR to create a magnet for strong leaders. Invest in HR development and skills as if the business depended on it: HR professionals at all levels need continuous professional development. Create your own "HR university" and invest in professional development to make sure your HR team is constantly sharpening its own saw and developing the necessary skills to survive. Focus on capabilities such as business acumen, consulting and project management skills, organizational design and change, and HR analytical skills. For more information, see Human Capital Trends 2015 study and HR Factbook 2015.

I attended the SAPinsider HR conference in Las Vegas this last week - and the energy of the audience was contagious. Let me share nuggets of what I gleaned from attendees: If your production environment is on-premise, you will not be planning any rip and replace strategies in the near term; while aspects of an ERP may in fact be more cumbersome than desired, that working business infrastructure is not up for replacement. If, on the other hand, your talent management applications (learning or hiring management, for example) are on-premise, you are not only possibly ripe for replacement, but very likely seeking a Cloud-based solution rather than on-premise software. If you are part of the 44 percent[1] who are planning to replace an HRIS system this year, you are seriously investigating a Cloud solution. Payroll is generally scary.  If users have a working solution today that covers their global payroll needs, they are unlikely to replace it. Two scenarios, however, lead to payroll replacement:  companies that are replacing an older on-premise system that had embedded payroll, and those simply contemplating a change of payroll providers; these seem "up for grabs," as the saying goes. What does all this mean?  First, the understanding of what software-as-a-service (AKA Cloud computing) has grown exponentially. Today’s HRIS/HRIT professionals in general exhibit solid understanding of the concept, the advantages and sometimes-radical changes that may emanate from cloud computing.  Second, the two fears about Cloud computing -"Is my data safe?  Can I keep employee data private?" are oh-so yesterday.  Today’s buyers are in the main comfortable with both the security of HR and talent management in the Cloud, and the ability to keep it private via multi-tenant solutions. The SAP HR Future SAP CEO Mike Ettling stated in his keynote that the company would support its on-premise HCM solution until 2025, giving its 14,000+ users ten years to consider a move to the Cloud-based Employee Central, the product that SAP is putting its longer-term Core HR development Euros into.   Today’s HR and HRIT professionals at the conference seem to be very serious in their commitment to the concept of talent management. They are also savvy buyers—and looking at the SuccessFactors’ Cloud solutions in many cases as a replacement for on-premise learning, as one prominent example. Will the Cloud be a solution for everyone? Absolutely not. There are reasons why an organization might not be bounding to the Cloud. For example: The company currently has extra capacity in its data center and an internal IT staff which is not utilized 100 percent. The organization is a highly complex setting with rigid compliance requirements. It is an environment that require extensive customization to meet its business needs. It is an extremely high-secure environment (for example, federal security or top-secret defense sites). The company is located in as region with a highly unreliable communications infrastructure. Our research shows that 52 percent of buyers planned on using Cloud-delivery as a criteria in the next HCM purchase; 41 percent indicated that their HR strategy had shifted to such Cloud support.[2]  These statistics were borne out in the views of conference attendees.   This publication contains general information only and Deloitte is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. Deloitte shall not be responsible for any loss sustained by any person who relies on this publication.   As used in this document, "Deloitte" means Deloitte Consulting LLP, a subsidiary of Deloitte LLP. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.   Copyright © 2015 Deloitte Development LLC. All rights reserved.   [1] Investments in Human Capital Management Systems 2014. Katherine Jones, Ph.D. Bersin by Deloitte. 2014.  [2] Ibid.

HR organizations got a boost in investment in 2014, with budgets up an average of 4% over the prior year. Much of the extra money went to increased headcount, with HR staffing up 3%, on average. Another big area of investment was HR technology, with one-fifth organizations saying they increased their spending on HR systems during 2014.  So how are these investments paying off? Unfortunately, for most organizations, not very well. In Deloitte’s newly-released study, just 36% of organizations rated their HR team's performance as either "good" or "excellent." And these ratings are not significantly better than in past years (see Figure 1.)   So for many organizations, the additional investments in HR technology, staffing, programs, and other intiatives have not paid off. But some HR groups are different, and HR leaders would do well to learn some lessons from these organizations. Our research describes a growth model in the maturity of HR capabilities. Most HR organizations start out as "compliance-driven" functions, focused on primary services such as payroll and benefits and meeting legal requirements. Over time, HR organizations need to expand their scope of initiatives and business alignment. At the highest stage of maturity, the "business-integrated" HR organization helps drive the business through workforce strategies and people data. These business-integrated HR functions do spend more than their less mature counterparts - $4,434 per employee, on average, as compared with just $2,112 among compliance-driven HR functions. But the difference is, their efforts are paying off. As evidence, business-integrated HR organizations have lower involuntary turnover compared to compliance-driven HR organizations (8% vs. 11%)—and each percentage point drop in turnover can be worth millions to a large organization. In addition, companies with business-integrated HR organizations have higher promotion rates, creating solid talent pipelines that enable them to take a long-term view of roles and future needs. So when HR organizations look at their budgets, they need to ensure their spending is helping to enhance their effectiveness. The Deloitte study recommends the following to help organizations get started: Design the HR organization to deliver solutions: For many businesses, it is time to redesign HR with a focus on consulting and service delivery, not just efficiency of administration. HR business partners must become trusted business advisors with the requisite skills to analyze, consult, and resolve critical business issues. Create business-integrated "networks of excellence." High-impact HR teams have different staffing models, relying more in specialists embedded in the business.  Recruitment, development, employee relations, and coaching are all strategic programs that should be centrally coordinated but locally implemented. When specialists in these areas live and work close to the business, their impact is greatly enhanced. Make HR a talent and leadership magnet: How do people get HR jobs in your company? If they accidentally move into HR, this may be holding you back. Create rigorous assessments for top HR staff and rotate high performers from the business into HR to create a magnet for strong leaders. Invest in HR development and skills as if the business depended on it:  Invest in professional development to make sure your HR team is constantly sharpening its own saw and developing the necessary skills to survive. Analytical skills are becoming a must for HR professionals, but many lack the ability to interpret data and communicate findings based on analytics.  Other capabilities to focus on include business acumen, consulting skills, and organizational design and change management. For more information, see Human Capital Trends 2015 and HR Factbook 2015.

We just published the major study Deloitte Global Human Capital Trends 2015, and the results are striking. Today, driven by shifts in both work ethos and the transparency of the job market, employee retention and engagement are now the #1 problems companies face.  (3,200 respondents from over 100 countries) This is the third year we've done this study, and we looked at more than ten different trends in the research. The results show that 87% of companies now rate "retention, engagement, and culture" as an important imperative and 50% rate it "urgent." The #2 trend, the need to build a global leadership pipeline, was a close second. As you will read about in the report, companies are struggling with their culture because of a variety of factors. First, millennials now make up the largest part of the workforce, and they demand flexibility, mobility, and accelerated development like never before. Second, every company's employment brand is now "on the internet," so if you have weak management or a poor working environment, people know about it (we call this "the naked organization"). Third, companies have not kept up with their leadership development and performance management practices - so often management itself is not driving the right behaviors to make people want to stay. (For more on the whole topic of Culture, please read the article Culture: Why It's the Most Important Topic in Business Today.)  One of the biggest factors may be learning. Our research shows that the #3 priority issue is the need to revamp and improve employee learning. This is not only a problem of skills development, but also one of engagement. The research shows that companies with high performing learning environments rank in the top for employee engagement - demonstrating how important learning is to engaging and empowering people. Another major finding is that HR skills remain a challenge. 80% of companies believe HR skills are an issue and 39% rate this problem urgent. This means we, as HR professionals, owe it to our organizations and ourselves to take the time and money to develop ourselves. Rotational assignments, bringing non-HR people into the function, and training are all part of the solution. Analytics was rated a high priority, as we may expect, but the progress is slow. And companies are very focused on fixing performance management, with almost 60% already in the process of re-engineering the process.  We've been studying performance management for almost ten years now, and our research clearly shows why and how it should be simpler, more agile, and more developmental in nature. Speaking of simple, let me conclude with a few comments on that issue. Last year we talked about "the overwhelmed employee" and how important it was for companies to make life easier at work. This year we found that one of the biggest new trends it "The Simplification of Work" - something we can all relate to. More than 60% of companies believe their work environment is too complex and now is the time to strip away clutter and get more focused. As I discuss in "The De-Cluttering of HR" - simplicity does not mean being simplistic. It is a tough effort to shift your culture away from "edge cases" and helping people focus on the basics.  We in HR have much to learn in this respect! I look forward to talking about all this with you at IMPACT this year. I'm going to be talking about Bold HR - and now is definitely the time to be bold. This report, which is filled with good information and insights, tells me (and hopefully you) that the bar is being raised for all of us. Now is the time for us to take charge, innovate, and lead our organizations to be more fulfilling, engaging, and focused. I look forward to seeing many of you in April, and I hope you really enjoy reading this research!