the impact of employment trends on employers...
TRANSCRIPT
The Impact of Employment Trends on Employers 2020 18/4/17
© 2016 Brightman Almagor Zohar & Co. 2
Trends are naturally continuous, with varying power and
characteristicsThe work refers to significant trends within the given time frame- until 2020
2015 2020 2025 2030
A trend that has begun and is expected to strengthen during the analysis
A new trend to be developed during analysis
A stable trend but significant during the analysis
An Existing trend that is expected to change characteristics
Analysis Frame
3
Methodology: examination of global trends and unique characteristics of the Israeli employment market to formulate number of core trends, while examining the relevance to unique populations
Identifying leading world trends
Addition of unique characteristics of the Israeli employment market
Formulating the core trends that influence the Israeli employment market in 2020, while examining
the relevance to unique populations
Global Trends
Local Characteristics
Core Trends
Validation by employers
Interviews with Israeli organizations to
examine how they cope with these core
trends
4
Trends DescriptionRelevance to
specific populations
Continuous Skill Improvement and
Innovation
• Requirement for technological skills and information usage • Global organizations that require international cooperation
• Rapid change of professions and tasks- the need for continuous learning
• Enriching employees as a source of innovation
Diverse Employment Market
• Maximization of potential inherent in diversity employees for innovation and creativity in business
• Meeting the unique needs of unique populations
• Coping with gender gaps- quality jobs for • Second/Third careers –
o Increase in life expectancy led to adult employment
o Adult employments is sometimes a response to gaps in the workforce
Employee Engagementas a Key to a Thriving
Organization
• Balancing work and family life • Feedback to employees and manager-worker relations
• A strong sense of purpose, organizational culture that encourages excellence
• Customizing conditions and tasks according to the needs and abilities of workers
The Need for Development
Opportunities and Professional Adaptation
• Development tracks for attracting employees
• Identification of potential managers and outstanding employees on an early stage and their development
• Learning (training)
Change of the Traditional Work
Structure
• Teamwork and project work, employee mobility • Decentralization of the workplace and work-hour flexibility • Technology that changes the nature of work e.g. remote access • Design of the physical work environment (e.g. open space)
Classification of various changes in the employment market into categories and analysis of their relevance to the integration and advancement of unique populations (1 of 2)
5
Trends DescriptionRelevance to
specific populations
Change in Recruitment Processes
• Proactivity in employee recruitment, competition for employees
• Proper management of temporary employees to increase productivity
• Smart use of information to understand employees needs and to shape their experiences
• Frequent recruitment cycles and coping with gaps in manpower
Information Based Work Processes
• Information based decision making (Big Data)• Advanced information systems
Coping with Economic Changes that Affect
Employment
• Reducing man-power due to economic crisis and technological developments
• Reforms to increase competition- short-term harm to workers• The emergence of new industries
Classification of various changes in the employment market into categories and analysis of their relevance to the integration and advancement of unique populations (2 of 2)
6
Core trends that were formulated by composing global trends and unique characteristics of the Israeli employment market, while examining the relevance for unique populations
Continuous skill improvement and innovation
Diverse employment market
Change in traditional work structures
Need for opportunities for employee development and professional matching
Employees engagement as key to a thriving organization
Changes in the recruitment processes
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The modern work environment, which includes technology, globalization and innovative work structures, requires constant updating of skills of all employees
Sources :Skills for a Digital World, OECD, 2016Deloitte Global Human Capital Trends 2016
Appropriate skills are needed to integrate digitization into work, even in jobs that do not
require high skills (blue collar). However, ICT skills are insufficient and employees need
additional skills, such as the ability to work collaboratively and flexibility
Continuous updating of employee skills, strengthening basic
education, providing incentives for further learning and improving
training programs for the unemployed
Improving the organizations
performance and increasing
competitiveness while reducing
inequality among employees
Encouraging innovation through dialogue between employees and
managers, obtaining opinions from all levels of the organization,
supportive management that recognizes innovative employees and
space for initiative and employee innovation
Signs to shift from a worker focus to an innovation worker focus: a worker who is creative, agile and
committed to continuous learning
• In most OECD countries, about 95% of employees in large companies and 65% of small business employees are
required to use the Internet
• About 25% of the average workers in the OECD are engaged in jobs in which a large part of the tasks will become
automatic and they will be required to perform more complex tasks using modern technologies
• In Israel, 57% of the population have no ICT skills or only basic skills (compared to an average of 50% in the OECD)
• In Israel, only about 10% of those aged 55-64 have advanced ICT capabilities. Employees with advanced ICT
capabilities are expected to earn 27% more
Technology becomes an integral part of the modern working environment
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Providing appropriate conditions and responding to the needs of unique populations in order to integrate them into the employment market in a way that will enable increased productivity and efficiency
Sources: Fostering Diversity in Public Service, OECDBecoming Irresistible, Deloitte (2015)
Perception of diversity as an asset rather than a problem
DiversityResponding to
employees needs
Efficiency and
increased output
organizations that provide social benefits (like transportation),
accommodations between the work environment and cultural needs and
means of bridging gaps
Employees in the organization differ according to: age, religion, gender, education, language
Improving efficiency and
effectiveness along with
understanding the population
needs and responding to the
employees professional
expectation
• Management of diverse employees is essential for implementing effective management in an organization
• In order to accommodate diverse employees, managers should be prepared to make changes
• Employee diversity requires more than the creation of equal employment opportunities. It requires
creating dialogue between employees (e.g. staff meetings), providing mentoring and escorting
employees , adapting the work environment and its conditions to the needs of employees, fighting
discrimination and exclusion
Responding to
recruiting
difficulties
Increasing
engagement
Improved
customer
service
Involvement in the
community as a
potential for locating
new employees,
donors and investors
Leveraging
innovation and
problem solving
skills
Promoting
organization
values
Advantages of employee diversity for employers
Organizations with diverse employees culture are expected to perform 80%
better than their colleagues
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perceiving the employee as a customer to increase employee engagement
Sources: Employees as Customers, Deloitte 2016Becoming irresistible A new model for employee engagement, Deloitte, 2015
perceiving the employee as a customer by responding to its needs as a key to improving professional / business
results and employee experience
A new career model to attract and engage employees, with an emphasis on employee making • Employee segmentation
• Journey mapping and
participative platforms
• Personalization – analysis of
personal data for better
decision making
• Ethnographic research and
participative platforms
Tools for example:
The main factors for employee engagement
Significant workFlexible work
environment
evaluation of
employees(feedback, worker-
manager relations)
A diverse organization
were people feel
comfortable being
'themselves'
Development
opportunities and
mentoring
employees
Deloitte's study shows that:
• While 81% of the companies measure and analyze the customer experience, only 31% measure the employee
experience
• While 90% of organization managers understand the importance of employee engagement, only 50% know how to
develop it
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Learning opportunities, professional development and career advancement are key drivers of employee satisfaction
Source: Becoming Irresistible, Deloitte (2015)
• Providing new and varied tasks for the development of employees
• Using data analysis and online tools to identify outstanding employees
• Intra-organizational mobility of employees
Studies and surveys conducted by organizations around the world show:
Employee development
• Enables the organization to differentiate itself from its competitors
• Responding to the need of the current generation of employees for personal development
• The contents of the study are available both internally and externally to the organization and digitally
• Continuous process
• Interactive training (includes video and simulations, for example)
A learning environment
Organizations with strong learning culture are 92% more likely to
develop new products and processes and are 52% more productive
The degree of employee commitment and the ability to keep them in the
organization that has a strong learning culture is 30%-50% higher
The main factor that will lead to the departure of workers is the lack of
career development
Organizations with a strong learning culture are more profitable in 17% of
their competitors
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Changing the traditional work structure and emphasizing employee mobility, while enabling remote work and flexibility in working hours
Source: Deloitte Global Human Capital Trends 2016
• Enables employee mobility (selecting the right employee for each task) according to the needs and abilities of the employees and the integration of freelancers into specific tasks that are usually not in the core of the organization
• A network of small and powerful teams is made possible by empowering employees and providing responsibility, strong communication between employees, and rapid information flow
• Other possible organizational structures: Boundaryless structure, virtual collaboration, matrix of functionality and mission, ...
• Examples of applications include: shared and dynamic work spaces and project work
Work anywhere and anytimeOrganizational flexibility
More attractive jobs that allow flexibility between family and work and increase the engagement to the organization
Difficulty managing employees in different places and under different contracts
A traditional functional hierarchical structure
A network of task-focused teams
Decentralization workplace benefit and the employees - conditions for success:
• Work that can be done independently
• Technology is available to perform remote work
• Productivity measurement capability
• Using the Internet as a platform for social interaction that will lead to innovation and creativity
• Quality management skillsA global survey conducted by Deloitte shows that only 24% of large companies remain in
a traditional organizational structure
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Changes in recruitment as a result of an increase in temporary employees, data-based decision-making capabilities and the changing needs of employees
Sources: HR Technology Disruptions for 2017: Nine Trends Reinventing the HR Software Market, Deloitte, 2016Deloitte Global Human Capital Trends 2016
• Coping with an increase of temporary workers
(freelancers, part time employees) by formulating an
appropriate employment model and using systems and
technologies
• Employing temporary workers as an opportunity for
increased efficiency and productivity by outsourcing of
non-core activities and focus on core activity by full
time job employees
• Designing the employee and candidate experience to
increase the employees engagement to the organization,
using data to understand the employees needs
• Coping with more frequent recruitment cycles by
identifying employees who are expected to be more
loyal
• Using data analytics to make smarter hiring decisions
while understanding the employees needs
• Data analysis will enable understand when and why the
employees will leave the organization, the reasons for
joining the organization, etc
• Data analysis is based also on external data (e.g from
social networks) to generate forecasts of trends in the
labor market and to identify potential employees
The role of human resources extends to the role of innovation consultants who are responsible for
designing, improving and simplifying the experience of the candidate and the employee in the
organization
• Adapting the recruitment process to the characteristics
of the Y and Z generations, which aspire to a quick,
transparent and digital recruitment process
• Competition for employees, even in jobs that do not
require high skills, which requires a shift to proactive
recruitment, including the use of social networks
Temporary employeesDesigning candidate experience
Fast and proactive recruitmentData analysis
13
Case Study Analysis: how do selected companies in the industry deal with the identified core trends?
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a leading organization in the food industry - main activities in relation to core trends
Continuous skill improvement and
innovation
Diverse employment
market
Change in traditional work
structures
opportunities for employee
development and professional matching
Employees engagement as key to a thriving
organization
Changes in the recruitment processes
Ongoing training in response to the upgrading of the technological environment
Diversity of employees to fill
positions in which there is a
shortage of manpower
Preventing exclusion
mechanisms, listening, and
creating a critical mass of
optimal diversification
Creating motivation to work
in the organization through
a "experiential economy"
Emphasis on dialogue-based
work methods and
implementation of team work
Connection between
diversity and recruitment
mechanisms
15
a leading medical organization - main activities in relation to core trends
ongoing training as an
organizational,
technological and
professional need
Creating the conditions that
will enable diversity as a
social (and possibly
economic) value
Customer Journey - in
recruitment process and
during employment
Continuous skill improvement and
innovation
Diverse employment
market
Change in traditional work
structures
opportunities for employee
development and professional matching
Employees engagement as key to a thriving
organization
Changes in the recruitment processes
16
a leading organization in the high-tech industry - main activities in relation to core trends
focusing on maintaining employees in the organization rather than creating motivation
Expansion of the company through branding and proactive recruitment
The employee is responsible for learning and development
Continuous skill improvement and
innovation
Diverse employment
market
Change in traditional work
structures
opportunities for employee
development and professional matching
Employees engagement as key to a thriving
organization
Changes in the recruitment processes
17
Bottom lines
There is a wide range of possible
actions to deal with the core
trends
It seems that not all employers
recognize the business value of
diversity and that the efforts
made in recruiting unique
populations have not yet produced
significant results
Advanced technology does not
necessarily lead to layoffs if the
organization takes responsibility
for updating skills and training
employees (technology can be
leveraged to increase productivity
rather than reducing labor costs)
Rapid technological changes in
traditional industries place the
employer in a more significant role
in the aspect of training and
updating employees skills
Changes in the traditional work
structure enable employee
mobility through new options
of development (professional and
managerial); for example, working
in teams enables exposure to
other professions and roles
Measuring the employee
experience in the organization
is not on the spotlight in most
of the organizations, despite the
increasing relevance of the subject
to the ability to to retain
employees and create motivation
for work
Continuous skill
improvement and innovation
Diverse employment
market
Change in traditional work
structures
Opportunities for employee
development and professional matching
Employees engagement as key to a thriving
organization
Changes in the recruitment processes
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Brightman Almagor Zohar & Co. (Deloitte Israel) is the member firm of Deloitte Touche Tohmatsu Limited in Israel. Deloitte Israel is one of Israel’s leading professional services firms, providing a wide range of world-class audit, tax, consulting, financial advisory and trust services. Through 83 partners and directors and approximately 1000 employees the firm serves domestic and international clients, public institutions and promising fast-growth companies whose shares are traded on the Israeli, US and European capital markets.
©2016 Brightman Almagor Zohar & Co. Member of Deloitte Touche Tohmatsu Limited.