Global Human Capital Trends 2016

The new organization: Different by design

November 2016

Human Capital Trends 2016 Survey One of the largest-ever HR and Talent studies

21% Individual Contributor

53% Mid-Level

26% C-Suite

68% HR

32% Non-HR

Large Org

24% Medium Org

29% Small Org48% 45%

19%35%

AmericasEMEA

APAC

over7,000 responses

answer from 130 countries

54 countries with more than

30 responses

Global Human Capital Trends 2016

Organizational design: The rise of teams

Culture: Shape culture, drive strategy

Design thinking: Crafting the employee experience

Digital HR: Revolution, not evolution

HR: Growing momentum toward a new mandate

People analytics: Gaining speed

Learning: Employees take charge

Engagement: Always on

Leadership awakened: Generations, teams, science

The gig economy: Distraction or disruption?

Percent rating trend important

Importance of Human Capital trends to business

Series1

Organizational design

Leadership

Culture

Engagement

92%

89%

86%

85%

Learning

Design thinking

Skills of HR organization

People analytics

Digital HR

Workforce management

77%

74%

71%

84%

79%

78%

% very important

2016

56%

57%

54%

48%

44%

39%

36%

36%

32%

28%

% very impor tant

2015

…

50%

50%

39%

…

39%

29%

…

…

Organizational designThe rise of teams

say the trendis “very important”or “important” 92%

of large companiesare organizedfunctionally today

25%OnlyShift from top-

down hierarchy to a network of

teams to deliver results faster

are reorganizing or plan to this year

feel expert at building cross-functional teams

believe their companies are very ready to effectively redesign their organizations

understand the way their people work together in networks

21%

14%

12%

83%

What does this mean for HR?

The workforce composition will need to consistently be evaluated as the organization models evolve; HR needs to have a good handle on what the workforce looks like and the options to modify over time (i.e., more contingents, leverage the crowd, robotics, etc.)

HR technology solutions need to be able to care for team-based processes & data (this not how many core systems are set up today)

HR programs, learning, career paths and rewards structures need to be modified to reflect a team-based structure

HR needs to consider how to align to the new structure to effectively support the organization

Organizational design

A network of teams

A

C D E

B

How things were

B

A

DCF

GHow things “are” E

Shared values and culture

Transparent goals and projects

Free flow of information and feedback

People rewarded for their skills and abilities, not

position

How things work

Key takeawaysA fundamental shift is ahead of us

More than ever, HR has the opportunity to influence the future of the organization…whether it’s the employee experience, organization structure or workforce composition, HR issues have become business issues

Collaboration is a key new skill set that is required for success in the future organization…building this competency should be a top priority for HR

Data is power…HR needs to ensure that data is an input and an output to every process and interaction with the workforce

Technology and innovation shouldn’t be reserved for the ‘core’ HR solution…an innovation mindset should be embedded into every process and functional area

Change will not be driven at the organization level alone…to effect real change, HR must consider driving adoption at the team and individual levels

Continuous improvement is foundational to capitalize on these trends…an agile HR environment that is connected to the external environment is paramount

A time of change and disruption

2016 and beyond will be a disruptive time, as new models of management, open feedback, new HR platforms, and organization design take center stage for the human capital agenda

The digital world of work has disrupted the way we operate, enabling an "always-on" organization, focused on culture, engagement, open communication, and feedback

HR leaders are responding rapidly, focused on analytics, design thinking, employee-driven learning, and digital HR

A new breed of leaders is emerging: Younger, more connected, more agile, always learning, developed through science

A new organization a has emerged, a "network of teams," forcing companies to reorganize, redesign roles and rewards, redefine careers, and change the role of management

Enabling this organization, talent focus is focusing on the employee experience, influenced by design thinking, the app economy, and transparency

2016 Global Human Capital TrendsThe new organization: Different by design

www.deloitte.com/hctrends @DeloitteTalent