Do you have a family member or friend who has been unemployed for six months or longer? Or perhaps underemployed for the last few years? It’s no secret that U.S. workers were hit hard by the Great Recession. One feature that has distinguished this recession from many past ones has been the persistence of long-term unemployment. Indeed, many workers who lost jobs during the recession have yet to find work, and many more have dropped out of the labor force completely. As of October 2014, 3 million Americans have been looking for work for six months or longer.[1] The long-term unemployed are much more likely to drop out of the workforce altogether and are also much less likely to find a job than their short-term unemployed counterparts.[2] What makes long-term unemployment so frustrating is that traditional (and even logical) explanations for unemployment seem to have no bearing on the issue. As we move toward a skill-based economy, it would make sense that under-educated workers are having a more difficult time finding work. But research has found that long-term unemployment does not discriminate. Job-seekers are just as likely to be college educated as not, and even relevant work experience does not seem to help the long-term unemployed.[3] In January 2014, the White House unveiled its plan that calls for employers to develop leading practices for recruiting and hiring the long-term unemployed, seeks to ensure that federal agencies give the long-term unemployed a fair shot, drives innovation around the issue through a Department of Labor grant competition, and enables workers to seek out training resources to increase their job-competitiveness.[4] The White House long-term unemployed initiative has received a positive reception from the business community, with over 300 companies signing the pledge. Many of these companies have already employed some leading practices with regard to recruiting the long-term unemployed, and others are sponsoring initiatives aimed at getting more Americans back to work. In response to the White House call to action, Deloitte Consulting LLP collaborated with The Rockefeller Foundation to develop three handbooks aimed at helping 3 million Americans get back to work: ·        For Employers: A Guide to Recruiting and Hiring the Long-Term Unemployed: A Handbook for Employers—this guide enables employers to leverage industry leading practices aimed at the long-term unemployed and includes a case for change, the long-term unemployed maturity model, recommendations for recruiting, an implementation toolkit, vignettes, and case studies. ·        For Job Seekers: New Guide, New Destinations: Navigating Out of Long-Term Unemployment—this guide for job seekers includes recommendations for retooling a job search, including personal stories and lessons learned from employers and the previously long-term unemployed. Also included are an overview of available resources, a checklist for successfully finding a job and interactive exercises and activities. ·        For Community Leaders: Engage Your Community: A Local Guide to Addressing the Long-Term Unemployment Challenge—this guide for local community leaders includes a four-step plan to help mobilize support in local communities, recommendations to develop a local strategy for addressing long-term unemployment, guidelines on identifying a local long-term unemployment ecosystem, sample action items for each ecosystem partner to mitigate long-term unemployment and talking points on how to advocate for the long-term unemployed. I’ve been happy to support this initiative for four reasons. First, according to leading economists, the United States’ current level of long-term unemployment could cause lasting damage to the U.S. economy as a result of skills deterioration, lower labor force participation, and higher levels of structural unemployment (the unemployment resulting from industrial reorganization, typically due to technological change rather than fluctuations in supply or demand). Second, I believe that the long-term unemployed are an overlooked labor pool. Despite decreasing unemployment, as of August 2014, there were still 4.8 million unfilled jobs in the United States.[5] It makes business sense for organizations to target the long-term unemployed with their recruiting strategies and the employer handbook will help them develop the business case for doing so. Third, like hiring veterans and the disabled, it’s a good thing to help Americans find work who may not have been given a fair shot (good from both the feel good perspective and for your employment brand!). Fourth, and much more personally, I also have family members and friends who are long-term unemployed or underemployed and I’m hopeful the job seeker handbook will help them. What can you do today to help our nation’s long-term unemployed? ·        Download a copy of the handbooks here for yourself ·        Help us get the word out: o   Share the link with your organization’s Talent Acquisition leader and recruiters and ask them to download A Guide to Recruiting and Hiring the Long-Term Unemployed: A Handbook for Employers o   Share the link with your family and friends and encourage them to download the New Guide, New Destinations: Navigating Out of Long-Term Unemployment handbook o   Share the link with your community leaders and encourage them to leverage the Engage Your Community: A Local Guide to Addressing the Long-Term Unemployment Challenge handbook ·        Tweet about the handbooks—please help us make these resources go viral! Here’s a shortened URL: bit.ly/1sIqdn7 ·        Look for the upcoming, complimentary Bersin research report Unemployed but Not Unemployable: Recruiting & Hiring the Long-Term Unemployed on www.bersin.com ·        Join me for the upcoming, complimentary Bersin webinar: Unemployed Long Term, Not Unemployable:  What Companies Can Do To Help on Thursday, November 13th at 2:00 pm ET [1] Source: "Employment Situation Summary," Bureau of Labor Statistics, September 5, 2014, www.bls.gov/news.release/empsit.nr0.htm. [2] Source: "More Gloom for the Long-Term Unemployed, from Alan Krueger," Wall Street Journal / Jon Hilsenrath, May 22, 2014, http://blogs.wsj.com/economics/2014/05/22/more-gloom-for-the-long-term-unemployed-from-alan-krueger/?KEYWORDS=long+term+unemployment. [3] Gretchen Gavett, "The American Way of Hiring Is Making Long-Term Unemployment Worse," Harvard Business Review (Online) (13 December 2013) http://blogs.hbr.org/2013/12/the-american-way-of-hiring-is-making-long-term-unemployment-worse/ [4] For more information, see the White House website: http://www.whitehouse.gov/blog/2014/02/10/more-300-companies-pledge-help-long-term-unemployed-0 [5] Source: "Job Openings and Labor Turnover—August 2014," Bureau of Labor Statistics, October 7, 2014. http://www.bls.gov/news.release/pdf/jolts.pdf 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.  

Last week I attended the Talent Analytics Leadership Roundtable hosted by Northwestern University and co-sponsored by Sears Holdings Corporation. The event included over 20 talent analytics thought leaders from companies in high tech, retail, financial services, manufacturing, and service industries - a veritable Dream Team of analytics brainpower. The discussion revolved around how organizations are deriving value from talent analytics, their use of methods, models and technologies, and trends for the future. Here is a recap of a few key themes from the discussion. 1. Predictive retention models: Coming to a desktop near you. With their advanced analytics capabilities, most of the roundtable participants have built their own predictive retention models and are using these to understand and help prevent turnover. But these models will soon be available to the masses. Solution providers big and small have jumped into this space with pre-packaged solutions: Oracle, Workday, SuccessFactors, Visier, Evolv, just to name a few. In the near future, these models will be available to thousands of organizations. The question is: are HR and business leaders ready? If the models are constructed well, they can be extremely beneficial to organizations in uncovering potential problem areas and helping organizations identify targeted initiatives to help mitigate turnover. But HR needs to be able to validate these models over time and within targeted employee segments. One Fortune 100 company I talked with recently, for example, said that its model was very accurate for individual contributor and manager-level roles, but totally fell apart for senior leadership roles. HR needs an advanced analytics capability to be able to assess the accuracy of these models. In addition, some organizations worry about disclosing the predicting turnover scores for individuals, as managers may not use this information appropriately. If a manager can only send one of two high potentials to a development event, for example, perhaps she will send the individual with a lower predicted turnover score, figuring that to send the one with high predicted attrition would be a waste of money (and eventually the attrition becomes a self-fulfilling prophecy). For these reasons, HR leaders will need to decide who has access to these models and how they are used. Both HRBPs and managers will need training on how to use the information in the models, and new talent initiatives may need to be created given the different factors related to risk. The use of predictive retention models is an exciting step forward for analytics, but HR needs to get ahead of the game to make sure they serve their purpose.   2. Continuous performance feedback replaces the dreaded annual performance appraisal. We’ve been saying for more than three years that the annual performance appraisal is dead (or should be.) For many of the participants at the roundtable, this goal has become a reality. These organizations have moved past the static, once a year performance process in favor of more continuous feedback. This approach includes regular feedback check-ins with the manager (typically two to four times per year) plus ongoing feedback from peers (sometimes called "crowdsourced" performance feedback). While these organizations are enabling broader, more immediate feedback from a variety of sources, they still emphasize the importance of managers and employees having conversations about performance. In other words, peer feedback does not completely replace managers, but rather supplements and supports manager-to-employee conversations. At Sears Holdings Corporation, for example, employees have a digital cloud-based application they can access anytime on their computer or smart phones to request and give feedback to anyone else on the platform. The tool provides a view into how they are achieving results and how they are demonstrating capabilities and living the culture. The feedback goes directly to the employee and the manager has full visibility to all feedback an employee receives, helping both quickly identify what worked well and where they can improve. The new platform was specifically designed to structure feedback in the most effective way possible and create a growth mindset, facilitating continuous improvement. Launched three months ago, the new feedback tool is catching on, with over 10,000 feedback submissions in the first months of deployment. This is the future of performance feedback. Companies that are still stuck in the once-a-year review cycles would be wise to rethink now how they conduct their performance process.   3. An overhaul in employee engagement measurement. In a similar vein, the annual employee engagement survey process is due for an overhaul, and many leading organizations have moved past the static process in favor of continual measurement. Similar to the performance review issue, why wait for a once-a-year reading on the engagement levels of your employees? If you have a problem, most of your high performers will have left by the time you analyze the survey results. Instead, organizations with advanced analytics capabilities are continually monitoring employee engagement by analyzing employee postings on internal discussion sites and communities. IBM, for example, has an initiative underway to use sentiment analysis of internal postings to monitor engagement on a regular basis. By augmenting their traditional survey approach with ongoing monitoring of engagement, the company can get a better handle of issues as they arise and take prompt action. These are exciting trends but a big change for many companies. HR needs to be at the forefront, advocating for these ideas and paving the way for these changes. That will require a savvy analytics capability, a great deal of change management to gain buy-in, and development initiatives to upskill HR and business staff to appropriately glean insights from data.   4. Prepare to address privacy and ethical issues around analytics. Analytics offers so much promise, but it also brings up a number of ethical questions and privacy concerns. From the example cited earlier (what if managers start discriminating against employees with high predicted attrition scores?) to organizations wanting to scrape employee comments off external sites , ethical questions - as well as legal ones - abound. These are even more prevalent in Europe, where the legal standards on data are higher. Even something as seemingly simple as analyzing diversity data can be fraught with legal concerns. Analytics leaders need to be thinking about these issues now and establishing partnerships with their legal teams to address these concerns. Even if an initiative is "legal" it can raise concerns among employees that will cause a backlash. Just because data can be collected and analyzed, that doesn’t mean it should be. Analytics leaders will need to tread a fine line and decide what is appropriate for their organizations. The more transparent they can be about the purposes of the research and how it will be used, the more acceptance and support may be gained among employees - and the press. (For more insights on this issue, check out this article.)

We just released new research which shows an astounding gap between what business executives say and what they do, and one of the biggest issues highlighted is a lack of focus on leadership development. Here is the data: A majority of America's business leaders (66 percent of CXOs and 63 percent of CXOs in waiting, among the 300 surveyed) say they are very confident that their organizations will outperform the competition over the next 12 months. But when asked about their confidence in their ability to address specific obstacles to growth, nearly half had some doubts (43 percent of CXOs and 44 percent of CXOs in waiting). Note: A "CXO in Waiting" is an executive in succession to take on a CXO role. What is keeping these leaders up at night? It appears to be three things. First, problems CXO's worry about (talent and skills gaps, cyber risk, competition from emerging markets) are not getting funded adequately. The data shows, for example, that 72% of the executives who worry about Cyber Risk are not prioritizing investments in funding and incident response; 67% of the executives worried about emerging markets are not adequately investing in talent and business in these markets, and 35% of the execs worried about skills shortages are not prioritizing investments in HR and people development. While the research does not explain why this gap exists, it appears that CXOs simply struggle to get their teams to develop actionable solutions to these issues. Second, and perhaps more importantly, CXOs are not confident in their leadership pipeline. Our Global Human Capital Trends research shows that leadership remains the top talent issue among businesses around the world, with only 14% of companies stating they feel they feel their leadership pipeline is "ready." Fig 1: Findings from Deloitte Business Confidence Survey Third, organizations are not adequately investing in the development of leaders. In this study the data from CXOs was striking: only 48% of top executives believe their direct reports have the skills to become part of the C-Suite in their organization, and 50% of the individuals who are CXOs in waiting have "little or no access to leadership training" to help them grow into these positions. Even worse, only 49% of the the up and coming emerging executives told us that "the organization creates opportunities for me to succeed" and only 49% of CXOs state they are committed to developing leadership skills at all levels of their organization. So one could argue that the problem is executives themselves: they are not asking for or spending time on the development of their own top teams. We have been studying leadership development practices in companies for almost ten years now, and our 2014 Leadership Development Factbook shows that spending in this area increased 14% last year and large companies spend between $7,400 and $10,600 on top executive development each year. So companies are spending the money and they are making an effort, but unfortunately the solutions are inconsistent and not delivering the impact we need. This research shows, for example, that only 26% of companies even have successors identified for their top positions - so the problem is not only one of development, but more significantly one of "selecting the right candidates." Selecting the right senior leaders is difficult. Internal experience, motivation, cognitive skills, personality, relationship skills, and entrepreneurial skills all play a role. Too many companies promote people who are "in the pipeline" or "highly successful in their prior role" and then find that it takes several years for these high-potentials to realign themselves as senior leaders. (Our data shows that only 36% of executives even have a successor identified.) Our High-Impact Leadership development research, based on the study of more than 700 companies over the last five years, shows that successful leaders have skills in four broad areas: people leadership and execution, intellectual capacity and drive, adaptability to different cultures and situations, and ability to influence and align people toward a goal. These are broad skills which must be assessed slowly and once identified, leaders who move into CXO roles need support. Coaching of these "new executives" is critical. One senior HR executive told me that "the worst thing we do is promote a highly successful VP into a SVP role and then not give him or her the right level of support in their new position, often letting them fail and go to the competition." Executives have to realize that it often takes years for new leaders to become seasoned, high performing executives. Finally, our research shows that despite the best intentions of Human Resources leaders and Leadership Development teams, without direct senior executive involvement, leadership development programs fall flat. Companies that have leaders who are directly engaged in selecting leaders, teaching, and coaching their team are more than three times more likely to have robust leadership pipelines and highly engaged leaders.   Fig 2: Financial Impact of Strong Leadership The bottom line: executive confidence is directly related to confidence in leadership, which in turn is related to executive focus on leadership development. When we asked investors to tell us how they value companies, they gave companies with "strong leadership teams" a 35% premium in valuation. Time and again stories show that companies that look at leadership as part of their competitive advantage build capability that drives innovation, performance, and engagement at the same time they're shipping new products and capturing market share.

HR already is grappling with the challenges of out of date, incomplete or potentially inaccurate about corporate employees. Analytics teams are addressing issues of data cleansing and the creation of data dictionaries to solve the linguistic and data model incompatibilities across the organization. (Note the great variation in what constitutes an "employee," or how "attrition" is defined across a company).   However, in the current flood of attention paid to analytics in human capital management, we as practitioners need to keep one more point in mind: thatbusiness-relevant (not just HR relevant) analytics will stem from the combination of HR data with production and financial data. This creates an immediate challenge for the HR professional.   The challenge for HR becomes to better understand the intersections between the workforce in total, and the mission and vision of the organization — current and future. Furthermore, HR will need a firm grasp of the comparative costs of workers of all types: not only competitive salary data and benefits;, employer costs of labor; and workforce overhead, for example,  but also the costs related to an increasingly contingent workforce.   The analytics required will need to assist the HR team in the hiring and development of a disparate, global workforce such that the team has the data necessary to deploy just-in-time talent where and when it is required. New data types abound within HR: video and telephone-derived candidate interviews and the job applications themselves are just one example. Capturing text communication between recruiters and candidates or employees and customers is another. We can anticipate that these and other data types will proliferate across the other areas of the business as well. This leads to the bigger challenge of synthesizing, extracting meaning, and storing unstructured data; data gathered from all parts of the organization. How will HRIT and IT professionals derive standard data models from these more recent types of data? How will it integrate with the structured data in the employee profile and system of record today?  The focus on business-relevance leads to cross-disciplinary analysis; the added requirement for managing new data types is an added challenge for both HR and HRIT. Begin building your analytical skill sets now! And download Karen O’Leonard’s High-Impact Talent Analytics: Building a World-Class HR Measurement and Analytics Function for more details!   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.

Workday Rising, the annual Workday conference for its customers and prospects was held in early November in San Francisco. Attendees heard from Workday executives on upcoming products, from current customers on their deployments and ensuing outcomes, and from vendors and systems integrators on the fit of their solutions with their Workday customers’ technology and implementation requirements. In addition were the well-received customer collaboration meet-ups, which were customer-driven discussions about relevant topics of customer common interest. With close to 5000 in total attendance, this year’s conference is the largest Workday Rising to date. Workday now reports close to 700 customers on its human capital management platform, 100 of which also use the financial management platform. The spring 2014 announced recruiting product has twelve companies live in production on it. All customers are on an identical version of the product, with their own configurations running on top of it. New releases are bi-annually, with, the company announced, updates that used to take 24 hours now taking as few as six. Key areas of the presentations at the conference included the ever-of-interest analytics, the new user experience, and technology updates on applications and the platform in general. Analytics: "Analytics is the new frontier ," according to Aneel Bhusri and Dave Duffield, co-founders and, respectively, the CEO and Chairman of Workday. Analytics played center stage in their joint keynote, as the two leaders of the company kicked off Workday Rising with a discussion of current and future product features from the company. They see three progressive phases in analytics of increasing sophistication and benefit to end users: the first, more common today, is data that describes the organization as it stands; the second is predictive: a theme common to many software providers in the HR community today; and the third, demonstrated in this keynote, adds the ability to recommend actions based on those predictions. Simply put, Aneel stated that the versions of analytics support moved from "that happened," to "what could happen," and finally to answer the question "what should you do about it?" Workday Insight Applications, the new suite of applications, uses advanced data science and machine learning algorithms to enable both financial and workforce-related decision-making. Each Workday Insight Application will address a specific business scenario by providing insights, surfacing predictions, and recommending actions that a decision-maker can take, all of which can be accomplished on mobile devices. To accomplish this, Workday also introduced SYMAN, an intelligent information engine that weaves a predictive engine, a recommendation engine, matching algorithms, and search relevancy throughout the Workday foundation of HR, talent, and financials.It creates industry trees, which are taxonomies organizing hundreds of job positions and job categories for more than 20 industries representative of Workday’s customer base. Here mapping of like titles and positions are classified and normalized into common definitions.As adaptive technology, the solution "learns" over time, in theory, making it more reliable in its predictions and recommendations. With its unique perspective among standalone HR and talent providers with support for a complete financial suite, Workday also provides analytics on financials. Predictive analytics — almost a buzzword in today’s software vernacular — was demonstrated at Workday Rising with this example: ascertaining the fit and likelihood of success for an existing employee in various "next jobs." In this example, an employee has a very high risk of leaving the firm (95%) and is a fairly high performer. The system evaluates the likelihood of Jack’s success in three different moves that his manager could suggest as a career advancement. The employee retention model in general contains a total of 62 factors, including evaluation of such areas as the market demand for skills, the employee’s tenure in the organization, and the length of time between promotions. To this end, Workday had acquired Identified in February 2014, using both its data scientists and technology for improved sourcing technologies, predictive analytics, and machine learning.[1] The new product sets will be available to Workday customers in 2015. User Experience Like all providers of software solutions for HCM today, Workday is focused on improving the experience that end users - employees in addition to HR staff—have with their applications. The new interfaces were designed to make the experience of technology at work mimic the ease of the consumer experience. This is the second "new look" that Workday has created over this year; this incorporates the flat design as seen in Apple’s iOS 8. With a "develop for mobile first" philosophy, Workday is close to completing a migration from Flash to HTML5 support throughout the product. Users can elect to access the new interface now if they are users of iPhone or iPads; Android users will see these in March with the release of Workday 24. Application Updates Higher education, often an ill-served industry, is the target of Workday’s student applications, developed for mobile devices. Higher ed is a key vertical for Workday; the ensuring product set was designed with input from institutions including University of Texas at Austin, Yale University, Stevens Institute of Technology,Broward College ,and Tallahassee Community College, among others. The first offering in the higher education suite is student recruiting which uses analytics to match prospective students to profiles of historically successful predecessors who actually complete their degree. Recruiter management, campaign and event management, success tracking, and the use of smartphones to keep track of likely applicants is part of the current release, with more features beyond student recruiting scheduled for the future. Other additions to applications include those to the recruiting module to support questionnaires, activity streams, and social job postings. New organization charting displays are now included in the core HR module. Unlimited custom dashboards are supported for user who want to design their own - and often many different dashboards. Enh ancements to mass operations were another area of attention in current and upcoming releases. First translations of Workday’s mobile apps on mobile devices are now available, as is embedded video for use in onboarding. Supply and demand analysis for future workforce planning is also provided. While announced earlier this fall, Workday highlighted its new Composite Reporting functionality at Rising, which enables customers to combine various data sources such as actuals, budgets, statistics, and headcount into live multi-dimensional reports that users can format, drill down into, and act on all within Workday, rather than having to export to tools such as Excel. Financial Management Betsy Bland, the VP responsible for financial management products highlighted a new application that will predict employee expense deviation and predict areas of overspending - including which workers are most likely to deviate. Upcoming functionality in Workday Financials will include financial scorecards and KPIs, as well as additional enhancements to reporting, dashboards, and analytics, according to Bland. Inventory management is also forthcoming—this will allow businesses to purchase materials, and track and manage their storage and use. For global customers, the future will include more prepackaged localizations of taxation and the like. Technical Updates Workday’s 700 customers are currently generating one billion transactions per month on the platform (which, by the way, is 45 million as an average each working day.) While they can never touch the code for the product, they can - and do - configure many processes and reports suitable to their specific organization. According to Stan Swete, Workday’s Chief Technology Officer, customers have created 448,000 custom reports, and 137,000 custom business process definition in the system. Integration is always a critical issue for customers, as companies typically have many disparate solutions across their enterprises, especially if they are large or global[2] Workday’s early acquisition of the Irish company Cape Clear resulted in the Workday Integration Cloud, comprised of an integration Platform-as-a-Service (iPaaS) that allows all application integrations to run in the Workday Cloud without a customer having to use on-premise middleware. Mr. Swete states that "Workday is committed to raising the bar on integration." Here we review what the company provides today. One option is documented APIs with which customers can create their own integrations, another is tools such as the Enterprise Integration Builder and Workday Studio, and packaged integrations. Customers can define and create their own custom APIs through Reporting Services, referred to as "Reports-as-a- Service"  to extract data out of  Workday.  They can also create integrations against the Workday API using other own middleware technologies, such as Microsoft.NET, TIBCO, or Oracle Fusion Middleware. The Workday Enterprise Interface Builder (EIB) tool is a simple graphical and guided interface to define inbound and outbound integrations without requiring any programming.  At a more complex level, Workday Studio is another development tool enabling customers and partners to build sophisticated integrations to and from Workday that are deployed and run on integration servers in Workday’s data center. Workday also provides "packaged" connectors that are tested, certified, and supported by Workday itself. These include connectors to, solely as examples, Cornerstone OnDemand for learning, HireRight for background checking, and in this release, large legacy payroll vendor integrations, such as to the SAP payroll, whether provided by ADP, NGA, or SAP itself. Workday supports an in-memory architecture, which means its data is main memory resident rather than stores on disks, which allows faster retrieval of data. It uses a database named Riak, an open source solution from Basho Technologies, the creator and developer of Riak, an open source distributed database (sometimes categorized as a NOSQL database) and Riak CS, a cloud-based object storage system that sits on top of Riak. Riak is architected for low-latency, availability, fault-tolerance, operational simplicity, and scalability. Conclusion Today, as a nine-year-old company, Workday provides enterprise cloud applications for human capital management, payroll, financial management and analytics. It has grown rapidly to the 700 customers using its software suites today. Workday Rising is the major event for those customers, who gather to hear about new products, the future roadmap, and as importantly, to talk to other customers like themselves. The growing number of technology and implementation partners is demonstrated by the increased presence of software provider and systems integrators in the exhibit halls. 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] http://www.forbes.com/sites/joshbersin/2014/02/27/workday-acquires-identified-a-potential-disruptive-move-in-recruiting/   [2] See Deploying HCM Technologies: Making Change Work. Katherine Jones, Ph.D., Bersin by Deloitte. June 2014.  

UCLA’s annual HR Roundtable Retreat featured an interesting discussion of future workforce trends. Led by Marina Gorbis of the Institute of the Future, part of the discussion focused on the growth of "microworkers," individuals who freelance a variety of projects or jobs for different employers. Although freelancers are nothing new to the workplace, numerous online platforms such as oDesk, Elance, and Freelancer.com are making it easier for these individuals to find work, so that the freelance movement appears to be growing. According to Forbes, an estimated one in three Americans (roughly 42 million workers) are freelancers. That number is expected to grow to 50 percent of the workforce by 2020. Many individuals turn to freelancing due to challenges in finding full-time employment in a tough job market. But for a growing number of workers, freelancing is a lifestyle choice. These individuals prefer the benefits of freelancing - being their own boss, flexible work schedules, and the comfort of working from home - over the structure of a full-time office job. From the organization’s perspective, freelancers provide a ready source of talent to supplement the existing workforce. Go to any of the popular freelancing sites and you can find a great many individuals with wide-ranging skills. Some of the top freelancing roles include: Writing Editing PowerPoint creation Graphics Data analysis The last item on this list, data analysis or analytics, is a prime area for freelancers. The lack of analytical skills is one of the key challenges in HR organizations today, yet most of these organizations have yet to create a clear roadmap for developing these capabilities. These organizations can turn to freelancers, who have the skills to help organizations analyze, interpret, and visualize their data. Kaggle, for example, provides a competition platform for top analytics talent. Organizations post their data, and statisticians and data scientists from all over the world compete to create the best solutions. If you are nervous about turning over your organization’s sensitive data, you can require individuals to sign confidentiality agreements through a Masters Competition. Many organizations have used Kaggle to find the expertise they need, including my own organization, Deloitte. HR leaders need to help their organizations understand how to best incorporate this talent into their workforces. If your organization has yet to utilize freelancers on a wide scale, this may initially require a bit of legwork. You may need to involve your procurement department to specify how to hire freelancers. You will likely also need to involve your compliance and legal groups to make sure you don’t run afoul of employment laws such as the Fair Labor Standards Act. You may need to modify your contracts, confidentiality and intellectual property agreements, insurance requirements, work schedules (for different time zones), and payment terms to accommodate freelancers. Furthermore, your HR systems and tools may need to be modified to track this new category of workers. For managers, hiring freelancers will require a shift in how to onboard and incorporate this new talent into work streams. The organizational culture will need to build an acceptance of freelancers as part of the workplace ecosystem. These are areas where HR can help. Many organizations are already leveraging the talents of the freelance community. According to Gorbis, one of her large tech clients staffs many of its projects with a ratio of 10 freelancers or microworkers for every one employee. Even on a less grand scale, freelancing promises to change the dynamics of the workplace. HR leaders should look at how they can help to build this larger talent ecosystem.

We are a research organization, and one of the most important thing we do is share information, data, and perspectives. Over the coming weeks there will be a lot of new insights coming, and I want to highlight some important things you can do to help. First, we are in the final stages of producing the Bersin Talent, HR and Learning Predictions for 2015, which will be out soon. I have personally spent countless hours on this research, and it brings together our combined perspectives on the ten biggest imperatives we believe HR and talent professionals should consider in the coming year. I won't give away any secrets, but stay tuned it's coming soon. The second big project I want to highlight is one you can participate in right now: Deloitte's Third Annual Global Human Capital Trends study. This is a massive global project I lead with two other partners, and it represents one of the biggest (if not the biggest) global studies of talent and HR issues around the world. Like last year, we expect to have data from more than 90 different countries and we have already found some dramatic shifts in the issues and capability gaps in HR around the world. Right now we are in the final stages of closing the survey, and we would like your help. Please take the survey here - it will help give you (and your peers) great insights into the global issues we face in 2015, and I greatly look forward to sharing results with you. I am excited to start sharing our perspectives for 2015 in the coming weeks!

Most HR organizations have been slow to adopt analytics - too slow, in fact, in the minds of many impatient business leaders.  Our research conducted last year showed that just 14% of HR organizations in the U.S are using advanced or predictive analytics to make talent decisions. These companies have created strong analytics teams with a diversity of skill sets and have established data governance processes for data quality and integration.   Despite the prognostications that 2014 would be "the year of predictive talent analytics," things haven’t changed all that much. I keep hearing the same questions from HR leaders over and over again: "How do I get started with analytics?" "How do we clean and integrate our data?" "How do we upskill our staff to be more data savvy?" If HR continues to drag its feet, it risks losing control over its data, and its chance to gain some real power within the organization. Witness the articles in support of CFOs owning analytics within corporate America. CFOs understand the value of data and are already using analytics to help them understand and predict margins, pricing models, and potential new revenue streams. For decades Finance has been using analytics to better understand where the business is strong and where it needs improvement. CFOs could be a natural fit to lead analytics across the organization - taking over responsibility for HR analytics, marketing analytics, and operational analytics. Most CFOs are in a position of power within their organizations. They already control much of that data on company financials and operations.  They have credibility and are seen (in many companies) as the source of truth.  They understand data and know how to use it. In many organizations, HR falls short on all of the above. Which is why HR risks losing control of its talent data to CFOs, who may be looking to further expand their leadership roles and spheres of influence throughout the company - and who are tired of waiting for HR leaders to "get it" when it comes to analytics.  I’ve already talked with several companies over the past two months that have centralized their analytics across functions. In a some cases, the CFO is running the analytics organization. In others, it  falls under the COO or CIO.  This should be a wake-up call for HR leaders. The battleground over corporate data is threatening to heat up, and HR can’t throw up the white flag and  lose its stake in the one area that promises to bring it credibility with executives and power over talent and business decisions. If your HR organization is still new to analytics, here is one thing you can do: Find a business leader who is willing to partner on an analytics project to solve a problem (e.g. reducing turnover, improving engagement, reducing accidents/theft/leakage, etc.) Put together a skunks works team, borrowing talent from another department if necessary or partnering with a university or external supplier, and look to get a small ‘win.’  After that, evangelize the results and find another internal stakeholder or two to partner with on another, slightly larger, project. After you have a few small wins and have built some credibility with business leaders, you can ask for some additional resources and start building an analytics team. Many HR people say, "I can’t get the funding for analytics,"  and it's no wonder...since they haven’t proven the value and their credibility yet.  So start small - look for a  supportive business leader with a pain point  - and grow from there. Any don’t wait too long, or before you know it, your CFO may be managing your talent data.  

Competencies are the language of talent management.  They provide guidance to managers and direct reports alike on the behaviors that are expected.  They also are a way to assess those behaviors, whether for the purpose of hiring, development, or performance appraisal.  Yet, for all that can potentially be right about competencies, so much can also potentially be wrong.  In many organizations we talk to, competencies are too numerous, ill-defined, or too complex.  The result is the competencies are infrequently used and ultimately cast aside.  Therefore, we have to ask ourselves, "Are competencies dead?" We are currently in the midst of a new research initiative on this question (and we’d like your help on it - see details below).  Our initial research reveals, no, competencies are not dead - in many organizations they are alive and well, working as intended.  In the organizations that are not using them effectively, though, the competencies seem to be collapsing under their own weight, dying a very slow death.  These organizations have "zombie competencies" - or "zompetencies," if you like.    So, how do leaders keep their organizations from creating zompetencies?  Here are a few suggestions: Design for criticality:  Focus on what is essential to success - not every competency necessary for doing a job.   Design for impact:  Focus on competencies that align to the organization’s business strategy and greatest areas of need.  If your organization is making a major transformation from one focused on execution to one focused on innovation, competencies should be a part of the bedrock of the change effort. Design for simplicity:  Constantly ask yourself if the competencies are necessary or can be expressed more simply.  Further, in an effort to reduce competencies, do not combine two competencies into one.  "Visionary leadership and tactical execution" is not one competency. Design for acceptance:  Avoid the trap of developing competencies in a vacuum.  Competencies need to be broadly socialized and amended as they are developed, to ensure both broad understanding and agreement on their content.  Ultimately, managers and direct reports need to understand the competencies, what they mean, and how to use them - and integrate them into how they talk about talent on a regular basis.  How does your organization keep competencies alive and well?  Or how has it gotten rid of zompetencies in the past?  We are currently looking for examples of effective approaches to competency models and how they support talent management.  Please email me at sgarr@deloitte.com if you have any examples from your or other organizations you can share. Special thanks to Joe Folkman and Candace Atamanik for their contribution to some of the concepts in this blog.

Impressive this year is the software creator’s mantra "develop for mobile first." Our survey of providers indicated that solutions are created and in the market for every area of talent:  learning, rewards, performance management and appraisal approval, succession and hiring management and many more.  Even core HR. Even content authoring tools. There is employee self-service and managerial self-service, and for hourly workers, the ability to clock in and clock out—all on their mobile phones. And the applications available for mobile use in HR vary in both number and sophistication. Oracle offers a company directory, Organization Navigator, predictive analytics, goal management, talent profile, and a personalizable dashboard on mobile devices. SumTotal offers a Smartphone app for every one of the 18 content areas we surveyed.  Close to 70 percent of the providers surveyed have mobile learning management capabilities today. Nine of 48 support the ability to supervise people and take notes on the experience for sharing later. Mobile apps are pretty much everywhere. But are companies actually using them for human capital management?  We decided that would be an interesting question to pursue! What is your company’s stance on HCM apps on Smartphones?  Do you use them today? Will you add mobile apps in the year ahead?  Or do you have no need nor plans to deploy mobile HR apps in the future? Whatever your stance, 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.     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.  

How is your week going?  If you are anything like many of the people I have spoken with this week, you are having one of the most productive weeks of the year.  Your focus is like a laser, your to-do list is pared back, and your eyes are on the prize:  to finish up the most critical items before the end of the year.  So, I have to ask you:  why is every week not more like this one? The likely answer is that in other weeks you lack the goal clarity that is helping you focus now.  Our new research, High-Impact Performance Management: Using Goals to Focus the 21st-Century (Not a Bersin member?  Click here for the summary), which we launched yesterday, supports this hypothesis: that many employees lack the clarity they need.  Here are a few findings from the study: Though 76 percent of organizations cascade goals, only 36 percent of organizations have a standard, enterprise-wide approach, which often results in inconsistencies in approach and, potentially, the goals themselves. While more than half (51 percent) of senior leaders convene a series of meetings throughout the year to discuss goals with business leaders, only six percent of team managers /  middle managers receive their goals in the same way, which can result in inconsistent goal messaging.  Though nearly 60 percent of organizations said senior leaders revise their goals during the course of the year, only 36 percent of respondents indicated middle managers make similar revisions to align to new directions being defined by their supervisors.  This can result in the organization’s leaders thinking the company is headed in one direction, but the day-to-day actions of employees taking it in an entirely different one. Our research finds that having that goal clarity - both at the start of the year and on a continuous basis - is a critical factor in predicting business performance.  Specifically, we found that employees with a high level of goal clarity were four times more likely to score in the top quartile of business performance.  Further, organizations that have employees revise or review their goals quarterly or more frequently were three-and-a-half times more likely to score in the top quartile of business performance. This new research summarizes the current state of goal-setting and management, including an overview of common goal-setting practices; a review of the academic debate around goals; our analysis of the challenges of modern goal-setting and management; current trends in goal-setting and revising; and the three key principles and seven related practices that our data indicate are critical to effective goal management (see Figure 1). Figure 1:  Three Principles and Seven Practices for Effective Goal Management Source:  "High-Impact Performance Management: Using Goals to Focus the 21st-Century," Stacia Sherman Garr / Bersin by Deloitte, December 2014. I hope that if you are taking some time off in the coming weeks, that you have an opportunity to unplug and reflect.  When you come back to set your goals - and help your organization set its goals - for 2015, I suggest analyzing your organization’s current goal setting approach and asking yourself: To what extent does your organization’s goal setting process enable you and your employees to have that "end-of-year" clarity on your goals and objectives? To what extent do your organization’s systems, processes, and culture support continued clarity? What can you and your organization do differently to enable greater goal clarity, both in January and throughout the year? If you are able to move the dial on any of these elements, you truly will have given yourself and your employees a gift - the gift of clarity.

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.

Last week LinkedIn announced the acquisition of Lynda.com, a pioneering online learning company known for high-quality, expert-led video instruction. Lynda's content focuses on creative skills, technology, and over time moving into business skills. Lynda.com was founded in 1995 and originally produced high quality video courses on topics like Photoshop, web design, photography, and other digital design skills to consumers. As the brand become well known to consumers, people brought Lynda into their businesses (this is now a typical strategy for most online learning companies). So Lynda built out more corporate learning features and more business topics.  According to the company, Lynda generated around $150M in revenue in 2014, growing at 20-30% per year. About 2/3 of that comes from individual consumers and about 1/3 from sales to businesses. The company stated they plan to keep Lynda.com as an independent business unit but will start experiments to test integration with LinkedIn's sales force and other products. For me, this is a "back to the future" type of deal. The online learning market all started back in 1998 by companies like Skillsoft, CBT Systems, NetG, DigitalThink (my alma mater), and Ninth House Networks. These companies built online courses 15 years ago and had dreams of growing into billion dollar businesses which transformed corporate and other forms of learning. While many of them survived (Skillsoft acquired many of them), they were a bit early to market because the internet was not fully built out, online video was too slow, and people had a wide variety of incompatible browsers. Macromedia (now Adobe) Flash was the standard technology, which has been almost obsoleted by HTML 5 when Apple Inc. decided not to support Flash in its products. So while the concepts then are the same as they are today, the technology was a bit rough and that made the market grow more slowly. Today things have changed. Organizations like Khan Academy, Coursera, EdX, Udacity, as well as companies like Pluralsight, General Assembly, Grovo, and marketplaces like Udemy (where my 21st Century Talent Management Course resides) are growing like weeds. People are now comfortable viewing YouTube videos online and internet access is ubiquitous, so people all over the world are searching out and paying for courses on many platforms.  By the way, the oldest vendor of all, Skillsoft, is still well entrenched and now sells end-to-end learning content, online books, compliance and leadership training, and offers enterprise learning management software. Lynda's claim to fame was their high quality experience, "Hollywood-style" videos, authored by experts. I've visited Lynda's facilities and the company has movie-studio quality production facilities which make their content very polished and enjoyable to experience. In the early days of e-learning "experience" was king, but today there are a wide variety of learning experiences and I question whether that level of expense is necessary going forward. While the market is big and growing fast (the opportunity is well over $20 billion around the world, about half of which is in corporate buying centers), LinkedIn brings a special new punch. With the company's huge brand and set of users (500 million+ professionals), LinkedIn has the opportunity to dramatically expand the usage and availability of online learning (particularly for professional technical skills). The company can also use Lynda to fill in its strategy of being a "professional development network," rather than just a "professional recruiting and job seeking network."  (see CEO Jeff Weiner's blog, which primarily focuses on this area.) As exciting as this seems, the online learning market is very competitive and barriers to entry are low. While Lynda.com is a very successful and well developed offering, its clear they felt the competition. The competitors mentioned above are all very successful companies with their own strategies to build content for particular audiences, so LinkedIn will have to stay focused and make sure Lynda builds content that is most relevant and differentiated for their audience. One of the things I've learned about online learning over the years is that brand, distribution, and topic often trump "instructional quality" in value. People who take courses online often want to learn "a few things" and get accredited for the course - not really complete an end-to-end program like they would in school. Online learning gives people the ability to learn specific things quickly, jump back later for a refresher, and become an expert over time - rather than forcing them to sit down and do it all in a college semester. So rather than focus on "time" as the forcing factor in learning, one can focus on "expertise."  So when new experts post fantastic content, people tend to find it. While Lynda's direct revenues are not large relative to LinkedIn, this deal does shift the market in many ways. First, LinkedIn's sales force will eventually be able to sell this to corporate buyers, expanding the corporate adoption of these types of platforms. Second, LinkedIn will see increased opportunity to integrate learning into the LinkedIn platform, possibly making LinkedIn more of a "learning and professional development solution," as Weiner discusses. And third, the new traffic coming to Lynda.com could be a valuable source of LinkedIn advertising revenue, because people educating themselves are often looking for jobs. In talking with LinkedIn directly, they explained their strategy in very eloquent terms: "Now we can help people in a city locate jobs and opportunities, identify their gaps in skills, cirectly learn those skills through Lynda.com, and compete for and get these new jobs."  Can't really argue with that value proposition! The real shift here is a broad acceptance that online learning is now a big, legitimate market that any corporation should leverage.  When Skillsoft acquired SumTotal Systems I wrote a long article about the potential for platform and content vendors to merge.  This is a perfect example of that trend.  One could imagine that most of Lynda.com's competitors are now getting phone calls from other corporate platform and social networking companies. Even though Lynda was growing well alone with 20%+ growth rates (and Skillsoft and others are as well), now that LinkedIn enters the market buyers will be even more encouraged to participate, and the market itself will expand. The online learning business has its own particular challenges, and now LinkedIn has to focus on content quality, content marketing, LMS integration, assessment, and lots of other training topic. But the company has plenty of engineering expertise, and all this is quite achievable. Even more interestingly, LinkedIn may use its large mass of data to provide new types of content recommendations and certifications based on your career trajectory, which would be quite transformational in our industry. For corporate training and HR leaders, this is an important move and makes it even more important than ever to evaluate your online learning strategy and make sure you're looking at all the vendors carefully. 

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        

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.

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.

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!  

Are you in the market for new performance management software?  See our newly published "What Works Brief: The Guide to Performance Management Software: 2015."[1] A free synopsis of the longer study, this brief covers the main trends in the changing world of performance management and the progress that software vendors are just starting to make to support that change. In addition to the software solutions covered, we included data from our recent Bersin by Deloitte study of the buying community - you folks who are seeking to replace outdated systems. 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.[2] [3] 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, 75 percent sought to replace a standalone performance management application with an integrated suite solution.[4] 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. Twelve percent of the population surveyed noted that they did not have a formal performance management process at all.[5] 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 7 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.   Coaching In, Ranking Out   Our research demonstrates that organizations with higher levels of support for coaching see stronger talent outcomes.[6] As it has become increasingly important in the management of performance overall, some applications include tips for how to enhance the effectiveness of the coaching process.  These programs provide a just-in-time approach to coaching assistance, dependent on the area on which the manager is coaching. Across the solutions studied, 21 percent provide automated coaching tools and 55 percent supported the assignment of a coach within the performance management system; 38 percent provide links to on-demand coaching information, related to the area of interest at hand. 52 percent provide workflows to track coaching and mentoring conversations and activities, an important feature in coaching management. The growth of coaching as a performance support mechanism has led to support by vendors to maintain records of managers’ one-on-one coaching sessions. These provide employees with a record of the discussions and employers with evidence these discussions occurred.  The goal of such tools enables managers to track their ongoing meetings with employees to review and track goals and development plans, and discuss a variety of other organizational or employee-specific topics. It also relates the frequency and impact the meetings are having on performance ratings, engagement scores and turnover.   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] The Guide to Performance Management Software: 2015 --A Roadmap to Performance Management and the Solutions that Support it."  Katherine Jones, Stacia Sherman Garr, and Sally-Ann Cooke. Bersin by Deloitte. 2015. [2] 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. [3] 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. [4] Op.Cit.  Investments in Human Capital Management Systems: 2014. [5] 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. [6] Ibid.

Numbers matter. And in HR numbers are beginning to matter more and more.  The ability for HR professionals to easily access financial data has become a more pronounced need, recently. True analytics (not just "reporting") requires access to cost data such as that traditionally found only in the financial applications. The ERPS of the ‘90s provided both "personnel" and financial data, but as new SaaS HR solutions and talent management applications hit the market, often the financial data was left behind. (One exception is Workday, which added financial applications to its HRIS to answer just such questions). Without integration to financials, it is difficult for HR and staffing organizations to answer questions such as: Will it be a better financial decision to hire a salaried employee to fill a current skill gap or a shorter term contingent worker? Will it cost us more in the long term to hire a data scientist than to upskill our current HR staff on analytics and statistics? At what point will our external spend on recruiting be better spend on in-house efforts?   It is access - easy access—to financial data that can help HR answer these questions.  In this light, last week Cloud HR and talent provider Ultimate Software announced a strategic alliance with Cloud ERP provider NetSuite. Primarily targeted at companies looking for integrated ERP and HR/talent solutions, the partnership will provide NetSuite’s financials, supply chain, customer relationship management (CRM) and Ultimate Software’s payroll, HR, benefits, time and labor management, performance, compensation, and succession management. While this clearly goes beyond the need for access to financial data that HR professionals need for decision making, it can solve that requirement and help manage the entire business cycle.   Areas such as integration of point of sale information from NetSuite into HR or performance management data may be anticipated. The two vendors report dozens of joint deployments of Ultimate Software’s UltiPro and NetSuite today, integrated with solutions from Informatica.  While Informatica will continue to be marketed for integration, the two companies plan on creating and providing out-of-the-box packaged integration.   Neither company is a newcomer to Cloud  delivery of its solutions: 25 year old Ultimate Software made the move from on-premise to software-as-a-service and now has 19 million people "systems of record"  in the cloud.  NetSuite, a Cloud company since its inception in 1998 (as NetLedger) has to approximately 24,000 companies and subsidiaries using its business solutions such as  finance, sales, marketing, services, supply chain, fulfillment, ecommerce, inventory and order management, and more. NetSuite acquired TribeHR, a solution it positions for SMB companies; the Ultimate Software solution is targeted at middle market and larger organizations. Alliances are only as strong as the ongoing commitment of both partners in making them work; this alliance, however, provides both companies with solid solutions that they do not have today.  Adding the ERP - especially the financial -- component to UltiPro’s HCM solution will potentially allow HR professionals to make sounder business decisions. After all, numbers do matter.   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.        

Infor hosted industry analysts last week at an Innovation Summit in its decidedly upscale digs in New York. Celebrating its most successful nine month period in the history of the company, President Duncan Angove reported a five percent year to date increase in license revenue growth, driven by sales of SaaS subscriptions and perpetual license growth that exceeded 30 percent. Its booming SaaS business grew nearly five times year to date, and Human Capital Management platform sales have nearly doubled, in part fueled by an uptake in health care companies of their HCM solution. Angove cited 3100 new customers in the last nine months—totally new to Infor, not upgrades from their legacy products.   It is their business proposition that is resonating in today’s ERP market: business solutions created for microverticals (See Figure 1), with the very explicit features needed in what might to other vendors be niche markets not worth dedicated development work. The horizontal solutions, such as HCM and customer relationship management (CRM), can run in concert with any of its ERPs, or sold separately. Interestingly in a day of increasing standardization in software, the company also provides solutions and services to vertical-specific customization, recognizing that one size indeed does not fit all. Figure 1. Infor’s Cloud Microverticals Source: Infor Inc., 2015. The bane of any newly fledged Cloud company is the extent of its installed base, on on-premise legacy systems. This is especially challenging for Infor, as it was originally a virtual hodge-podge of ERP, financial, and other software acquisitions (such as Baan, Lawson Software, Infinium, System 21, and many more).  Now, while dated, the legacy products are still supported by Infor, with migration paths available whenever the customer is ready.  One new program, called UpgradeX, is designed to ease - and perhaps hasten—that move in the customer base. With 2750 cloud customers globally, Infor serves 35 million users. The number of multi-tenant solutions they have will expand to 33 by the end of this year and the company reports that users in more than 90 countries are accessing Infor products in the Cloud.     Part of the value proposition for customers is the deep level of very specific vertical functionality - the kind that is often bolted on a more generic ERP. Examples are fund accounting for public sector, nurse scheduling and staffing for healthcare, catch weight for food industries, and kit generation by quantity size breakdown for the fashion industries. Let’s not forget innovation.  An innovative face on what might appear stodgy old manufacturing may seem a disconnect - but Infor has innovation labs  staffed with creative engineers in a culture where they can experiment; its Hook and Loop  designers also develop custom solutions for their customers.  The efforts of their creativity is apparent in their user interfaces, their mobile apps for NYPD, and other solutions. Last year the analysts told Infor execs that they may be the ERP market’s best kept secret—and they listened. Over the past year, the company has invested in marketing, print ads, airports posters, and begin making a name for themselves in sponsoring charitable events in the metropolitan area. While not the business equivalent of a household word yet, the company is likely a future force to be reckoned with.     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.    

To kick off the second day of Deloitte’s CHRO Academy event last week, Lisa Weber highlighted many of the challenges facing today's HR leaders. If you don’t know Lisa, she previously served as Chief Human Resources Officer, Chief Administrative Officer, and President of one of the largest operations at MetLife. We are lucky to have her as an advisor to Deloitte. A few of the key themes from Lisa’s presentation are as follows. The Bold, Business-savvy CHRO Lisa provided data showing that turnover among CHROs in F100 companies is high: 39% over the past two years, in fact. Many of these roles have been filled with leaders from outside of HR - executives from marketing, finance, operations, or lines of business.  The turnover isn't that surprising, given that only 5 percent of respondents in our global survey rated their organization’s HR performance as excellent (see Figure 1.)   Driven by the need to deliver greater business impact and drive innovation, the CHRO role is changing. The need for CHROs with strong business and financial acumen is more pressing than ever. CHROs need to understand where the business is going and how the business makes money. Most HR leaders have only a fleeting glimpse of what really drives the business. There is also tremendous pressure these days to be data-savvy. Data and analytics can help CHROs to see new directions and can bring better perspectives. But Lisa commented that the data alone is not enough. CHROs need to take those insights from the data and apply foresight - using their experience, wisdom, and judgment.   With this combination, great things can happen. So CHROs need to be business-savvy and data-savvy, but they also need to be bold. What does "bold’ look like? Bold is advocating a point of view on the company’s critical growth areas and how to get there. Bold is identifying where the company is weak and proposing solutions. If your company is thinking of opening a facility in a new location, for example, speak up on the talent implications: Can we find the right talent there? How long will it take us to recruit? What are the local labor laws and practices? Is this a wise move from a talent perspective? A bold CHRO is also proactive in identifying trouble spots and creating talent initiatives in response. During the keynote, an HR leader at a cosmetics company shared an initiative that originated from his CHRO. In response to flagging sales numbers, the organization built a sales capability COE within HR to help recruit and retain high performers. The CEO commented on how impressed he was that HR was proactively taking steps to increase sales - independently, without being asked or pressured. It reminded me of a conference I attended a few months ago where one business leader said in exasperation, "I don’t want my CHRO waiting for me to tell her what to do. I want her to tell me what we should be doing."   Know Your Strengths A recurring theme at the event was "play to your strengths." Each person on the leadership team has a role to play, and by capitalizing on everyone’s particular skill sets, the team can be more effective. So work closely with others with complementary skills, such as your CIO, CFO, and CMO.  Leverage their expertise and perspectives in combination with your talent management prowess. Too often we fixate on our (and our employees') weaknesses and spend countless hours trying to bolster these deficiencies. By focusing on what people do well, and understanding and leveraging the strengths of others, we have much greater potential to add value to the organization. Within my own workgroup we are using Gallup’s StrengthsFinder to discover our individual talents. As an example, one of my strengths is that of an "Activator," which Gallup describes as "someone who can make things happen by turning thoughts into action." Activators can bring energy and clarity to others’ ideas and bring concepts to market; these individuals should team up with people with complementary skills, such as "Futurists."  By learning our strengths and sharing them with each other, we hope to get greater productivity out of our team. Team members who understand each other’s abilities have greater trust and respect for each other. And they can selectively spend their time in certain areas, while leaving other areas to their teammates with other strengths. The team is therefore more efficient as well as effective.   Focus on What Matters CHROs have a never-ending to-do list. Many try to do too much and end up working on things that don’t bring much value to the organization. Lisa’s advice: Be decisive about how you spend your time. Look at your to-do list and prioritize the most important items, then leave the rest.  This advice reminded me of similar comments made by Marissa Mayer, Yahoo’s CEO, who said in an interview that if you are completing everything on your to-do list, you’ve probably spent time on some relatively unimportant tasks. One priority for your to-do list: building relationships with business and functional leaders. In fact, Lisa recommended that 20% of your time should be spent networking. Oftentimes we let our calendars get filled up with meetings. Lisa’s advice: Don’t let your schedule manage you - you need to manage your schedule. Decide what meetings are critical and politely decline the rest. And if you’re in a new HR leadership role, it’s important to get focused early. It can be a lot easier to make changes when you are fairly new in your role. Get to know the business and landscape first and then make some bold changes in the first year. If you wait too long, the opportunity for change may pass you by.   Be Mindful Lisa talked about the importance of being mindful, or being present and fully aware. How many of us have this level of presence at work, or in our personal lives, for that matter? As Lisa pointed out, "It’s hard to be mindful when your mind is full." Most of us are running at hyper-speed. So take some time to reflect, to bring focus to your thoughts, and to be fully present in the moment. You will likely see your judgment, decision-making, and relationships with others radically improve. Oftentimes CHROs feel they have to have the answer to everything. "I don’t know" or " I would like to think about that" are perfectly acceptable answers. We are much more effective when we respond, rather than react. Mindfulness helps us to respond.   Success is Deliberate    Finally, one of the things I loved about Lisa’s talk was her quote, "Success is deliberate." You need to decide to succeed and go after it. Pick just a few things and over-deliver on those. Then prioritize the next set of deliverables. Many CHROs feel the need to say ‘yes’ to everything and then get caught up doing busywork all day. It’s easy to lose perspective when you are doing too much. The job of the CHRO requires hyper-prioritizing. But prioritizing often isn’t popular, and you will likely get pushback from other executives and business leaders, who are irritated that you’re not focusing on their requests. Be clear but firm about what you are working on and why. And by all means - deliver!