2016 HR Trends

2016 HR Trends
Helping You Meet the Challenges of the New Year
March 2016
SAP Point of View

Trends Shaping the HR Function
and Financial Services Industry
• Digital economy is transforming how people live and
work
– AirBnB, Uber, GM investing $500M in Lyft
• Simplifying “HR Complexity” is critical to address the
pace of change– flexibility and scalability are table
stakes
– Collaboration is driving all areas within HR
• Career and Performance Management is
undergoing significant transformation
• Social and mobile technology are changing
employee engagement and organizational productivity
• Evolving workforce demographics driving need for
better planning and analytics
2 | SAP proprietary and confidential

What is the Digital Economy
Five Technology Trends have Converged into the
“Digital Economy”:
• Hyper-Connectivity
• Super Computing
• Cloud Computing
• A smarter world based on outcomes
• Cyber Security
Impact on HR?
Employees EXPECT a new type of experience – one
that is frictionless, where information is accessible
and seamless and where technology is invisible! One
that makes their lives and careers better.
SAP proprietary and confidential | 3

And Requires a Reimagining of HR Strategies with a
Digital Approach
The digital economy is significantly reshaping how HR supports the organizational
strategies.
Intelligent
Flexible
Cloud
Useful
McKinsey defines the digital experience as something that should be seen less as a thing and more a way of doing
things with three attributes:
• Creating value in the business
• Creating value in the processes to support the vision
• Building the foundational capabilities for the organization
Teamwork
Learning
CollaboratingManagement
Working Remote Performance Management
“Being digital requires being open to
reexamining your entire way of doing
business and understanding where
the new frontiers of value are”.
McKinsey Digital, July 2015
What Does Digital Mean to HR

The Evolution of Management Thinking
Operational Efficiency
Profit, Growth,
Financial Engineering
Customer Service,
Employees are
Leaders
Mission, Purpose,
Sustainability
Industrial Age People
as Workers
The Corporation is
King
Andrew Carnegie
Henry Ford
Jack Welch Peter
Drucker
The Executives are
King
Management by
Objectives
The People are
King(s)
Howard Schulz Steve
Jobs
Servant Leadership
Work Together
The Teams and Team
Leaders are Kings
Netflix, Google,
Facebook, Amazon
Empower the Team
The Industrial
Corporation
Hierarchical
Leadership
Collaborative
Management
Network of
Teams
Purpose,Meaning,andEmpowerment
<1950s 2020Today1990s1960s-80s
Bersin by Deloitte, July 2015
According to Deloitte’s new research, High Impact Talent Management (2015), the data shows that “building an
inclusive culture is now the #1 predictive strategy for global financial performance”. The new digital world changes
how we live and work. Through better inclusion and social collaboration the next phase of management thinking
has evolved – The Network of Teams. To respond to this trend, HR needs to significantly rethink how they are
meeting the needs of the new workforce.

By 2020 there will be 200 billion
connected devices on the Internet of Things.
Source: Intel, A Guide to the Internet of Things Infographic
“Enterprise software used to be about making existing
work more efficient. Now, the opportunity for
software is to transform the work itself.”
Source: Aaron Levie, @levie
74% of companies believe business complexity
hurts their ability to meet goals, but only 17%
believe current simplification efforts are very effective.
Source: Knowledge@Wharton, Business Simplification 2015: The Unmet
Strategic Imperative

Useful – We Need to Simplify HR
• Integrated HCM Suite
• Embedded Content
• Mobile
• Total Workforce Management
The Impact of the Network of Team on Customer Satisfaction
Simplified Processes
Realize HR efficiency and
ensure compliance
To support the Network of Teams and enable the “connection of brains”, organizations must have Integrated
Talent Management systems and social collaboration tools to deliver on the business strategy in an intuitive,
accessible and simple way.

Intelligent Services
Useful – Unmatched Solution Breadth and Depth
Supporting your total workforce, partners and third-party
administrators
Core HR
Payroll
Time & Attendance
Global Benefits
Shared Services
Employee Recordkeeping
Organizational Management
Talent Management
Recruiting
Onboarding
Learning
Performance & Goals
Compensation
Succession & Development
Our Partners
Time & Attendance
Payroll
Benefits
Recruiting & Onboarding
Our Partners
Everything in HR is connected. To support your total workforce, and support the network of teams, organizations
need to simplify their infrastructure and focus on delivering the HR programs and services to drive collaboration
and support the digital economy.

Useful – Built-in Decision Support
We’ve learned from the best, and
made it a practice
• Pre-delivered Talent Questions
• Industry-specific Job Descriptions
• Job Families
• Skills Catalog
• Competencies Catalog
• Learning Reports and Dashboards
• Recruiting Best-practice Templates
• International and Country-specific Reports
• Compensation Metrics and Reports
• Workforce Analytics Metrics
• Core HR Workflows
• Assessment Coaching Assistant
• Assessment Writing Assistant
• Goals Catalog
• Comprehensive Benchmarking
• Live Compensation Dashboards
19,500+
Unique HR content elements

Customer-experience
Omni channel
Assets and the
internet of
things
Supplier collaboration
business networks
Digital Core
Workforce
Engagement
Flexible – Total Workforce Management Integrates the
Customer/Employee Experience
How do you make the employee experience flexible without significant customization? Through advanced
technology you can now have a fully configurable system with pre-built connections to all your employee
experience system and have the ability to build new applications which are unique to your organization.
SAP HANA Cloud
Platform
Core Business and
Industry Solutions

Flexibility – The “Appification” of Everything –
Organizations must be Flexible and Scalable
The Financial Services sector is undergoing significant transformation. In order to meet the evolving needs of your
organization you must be able to respond quickly. With the SAP SuccessFactors suite of products you don’t need
to disrupt your existing core processes to design a unique solution or pilot a new program – we can help you to
build the apps that meet your unique business needs.
Enterprisejungle.com

Candidates today are not looking for a career…
they are looking for an experience.
Intelligence
Careers have changed and so have people

The Evolution of the Talent Acquisition Process
Redefine Talent Acquisition
As the labor market continues to shrink and the shortage of skilled labor shifts their focus to other industries, the Financial
Services sector must significantly refine how they attract the necessary skills for the future. It is no longer a post and pray
environment. New intelligence is required to meet the evolving business needs. To compete in the future organization need to
move from the traditional six-phased approach to a Social Collaboration approach.
Job Requisition Job Posting Applications
Interviews Job Offer On Boarding
Smart Job/
Publishing Needs
SEO
Social Souring
Referral
Marketing
Multiple Branded
Job Sites
Talent/ Campaign
Landing Pages
Social Matcher
Job Feeds
Career Site
Mobile
Career Site
Job
Posting
Job
Application
Competency
Based
Interviewing
Job Offer
Job Requisition
Candidate
Talent Profile
On-boarding
Measure
Engage
TalentCommunity
Attract Select
Traditional Six-phased Approach
Social Collaboration Approach to Talent Acquisition

Intelligence
This heartbeat proves…
Engaged People = Extraordinary Results
71% of respondents rank employee engagement as
imperative to achieving business success.
Harvard Business Review71%

Intelligence - The New Workforce
The digital economy has changed how we work
The Network of Teams and digital transformation are clearly evidenced in the top drivers of sustainable
employee engagement. The need for goal alignment, flexibility, mobility and collaboration are the key
drivers.
Top Drivers of Sustainable Employee Engagement
Leadership
• Effective at
growing the
business
• Sincere interest in
employees well
being
• Behavior
consistent with
the organization’s
core values
• Trust and
confidence in job
being done
Goal and
Objectives
• Good
understanding of
organization
business goals
and steps needed
to reach the goals
• Understanding of
how job
contributes to the
organization
achieving its
business goals
Workload Work/
Life Balance
• Healthy balance
between work
and personal life
• Work
arrangements are
flexible
• Enough
employees in
work group to get
job done right
• Amount of work
required is
reasonable
Image
• Organization
highly regarded
by general public
• Organization
conducts its
business with
honesty and
integrity
Empowerment
• Management
involve
employees in
decisions that
affect them
• Organization
seeks
opinions/suggesti
ons of employees
• Organization acts
on employees
suggestions
Source: What are the top drivers of employee attraction, retention and sustainable engagement. Towers Watson, December 2014

Intelligence - Engaged Workforce
Learning and Development
To achieve the ultimate goal of attracting, retaining and engaging your employees, one of the most
important aspects is having the ability for them to grow and learn so they can enhance their personal and
professional career goals. Yet, learning has changed significantly and will continue to change over the next
several year. In the Network of Teams we see collaboration taking unprecedented focus in how people
learn, both through communities, MOOCs and concept oriented on the job training.
Social Learning
• Mentoring/development
• QuickGuides
• Concept oriented OJT
• Near real-time knowledge objects from SMEs
• Collaborative groups and communities
Mobile Learning
Role Based Access
Learning Management System
• Instructor Led Training (ILT)
• eLearning
• Task oriented OJT
• MOOCs
• Exams/assessments
• Reporting & Dashboards

Intelligence Trends in Performance Management
Yet, all we are hearing is how everyone is “getting ride of performance management”. So how can goal
alignment, which is a key driver of employee engagement be managed in the future?
NOT Eliminating Performance Management

Trends in Performance Management
Simplify Goal
Mgmt Process
• Move from annual
goals to either
project based or
quarterly goals
• Limit the number
of goals to no
more than 3-4
with short and
realistic time
frames
Eliminate Forced
Ranking
• Eliminate the
forced,
distribution
ranking process
• No Bell Curve
Accurate
Employee Rating
• Rate employees
according to their
performance
against the job
with no limit to a
specific rating
(i.e., no more
“you were
exceptional but I
can only give one
person that
rating”)
Multiple Inputs
Consider multiple
ratings based on
quarterly goals,
development
activities, etc.
• Reduces an
annual one-time
impact and
empowers
employees with a
multi-dimensional
view of their
contribution to the
organization
Frequent
Feedback
Moving from an
annual review to
frequent feedback
sessions with a
focus on:
• Performance
against goals
• Development for
the future
• Focus is on
regularly
supporting and
positioning
employees to
perform better for
the future (versus
just how they did
in the past)
2
1
3
No other area of HR is undergoing greater transformation than in the area of Performance Management.
The following details the key evolving trends.

78% of employees say it is very important to work for
a digitally enabled company or a digital leader.
Source: MIT Sloan Management Review, Is Your Business Ready
for a Digital Future?
78%

How Does it all Come Together - Analytics
Changing workforce demographics demands
planning and analytics
Actionable Insight: Predict, plan, take action, and measure
• Being digital is about using data to make better and faster decision and putting the information in the
hands of the decision maker.
• Strategically forecast and grow the required talent
• Scale for new, emerging competencies in the future
• Make decisions based on intelligence that are personalized and relevant to the employee
• Evaluate the effectiveness of the HR programs and adjust as necessary

The Analytics Journey
Predictive
Analytics
Hypothesis
Testing:
structural
equation
modelling
Analytics
Statistical
analysis:
• correlations
• test of
significance
• analysis of
variance
• factor
analysis
Bench-
marking
External &
internal
comparisons
Advanced
Metrics
Aggregation
& weighting
to generate
index
measures
Metrics
Aggregation
as ratios &
percentages
Reporting
Analysis
Dimensions:
• segmentation
• trends
Data
Definitions:
• inclusions
• exclusions

Summary and Next Steps
Key Trends:
• Digital Economy is rapidly changing the way we work
• We must simplify how employees work and enable
access to what employees need to be productive
• The talent shortage and the impact of the digital world is
driving new ways of attracting, retaining and engaging
our talent
• The focus on social, mobile technology is reinventing
how we work and learn
• We must have the tools to plan and analyze our
workforce and HR programs to maintain competitiveness
How Can We Help:
• Engage with our team of HR Transformation Advisors to
assess your current HR Strategy and infrastructure to
identify areas for opportunity
• Contact your Account Executive to see first hand how
SAP SuccessFactors can help you meet the challenges of
tomorrow.

Notes

www.sap.com/contactsap
SAP Statement of Confidentiality and Exceptions
The information in this presentation is confidential and proprietary to SAP and may not
be disclosed without the permission of SAP. This presentation is not subject to your
license agreement or any other service or subscription agreement with SAP. SAP has
no obligation to pursue any course of business outlined in this document or any related
presentation, or to develop or release any functionality mentioned therein. This
document, or any related presentation and SAP's strategy and possible future
developments, products and or platforms directions and functionality are all subject to
change and may be changed by SAP at any time for any reason without notice. The
information in this document is not a commitment, promise or legal obligation to deliver
any material, code or functionality. This document is provided without a warranty of any
kind, either express or implied, including but not limited to, the implied warranties of
merchantability, fitness for a particular purpose, or non-infringement. This document is
for informational purposes and may not be incorporated into a contract. SAP provides
this information as guidance only to illustrate estimated costs and benefits of the
predicted delivery project. These materials may be based upon information provided by
you, information provided by other companies and assumptions that are subject to
change. These materials present illustrations of potential performance and cost
savings, and do not guaranty future results, performance or cost savings. SAP
assumes no responsibility for errors or omissions in this document, except if such
damages were caused by SAP´s willful misconduct or gross negligence.
All forward-looking statements are subject to various risks and uncertainties that could
cause actual results to differ materially from expectations. Readers are cautioned not to
place undue reliance on these forward-looking statements, which speak only as of their
dates, and they should not be relied upon in making purchasing decisions.
© 2016 SAP SE or an SAP affiliate company. All rights reserved (02/16).
No part of this publication may be reproduced or transmitted in any form or for any purpose without the
express permission of SAP SE or an SAP affiliate company.
SAP and other SAP products and services mentioned herein as well as their respective logos are
trademarks or registered trademarks of SAP SE (or an SAP affiliate company) in Germany and other
countries. Please see http://www.sap.com/corporate-en/legal/copyright/index.epx#trademark for
additional trademark information and notices. Some software products marketed by SAP SE and its
distributors contain proprietary software components of other software vendors.
National product specifications may vary.
These materials are provided by SAP SE or an SAP affiliate company for informational purposes only,
without representation or warranty of any kind, and SAP SE or its affiliated companies shall not be liable
for errors or omissions with respect to the materials. The only warranties for SAP SE or SAP affiliate
company products and services are those that are set forth in the express warranty statements
accompanying such products and services, if any. Nothing herein should be construed as constituting an
additional warranty.
In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business
outlined in this document or any related presentation, or to develop or release any functionality
mentioned therein. This document, or any related presentation, and SAP SE’s or its affiliated companies’
strategy and possible future developments, products, and/or platform directions and functionality are all
subject to change and may be changed by SAP SE or its affiliated companies at any time for any reason
without notice. The information in this document is not a commitment, promise, or legal obligation to
deliver any material, code, or functionality. All forward-looking statements are subject to various risks and
uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned
not to place undue reliance on these forward-looking statements, which speak only as of their dates, and
they should not be relied upon in making purchasing decisions.

2016 HR Trends

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Viewers also liked

Viewers also liked (17)

Similar to 2016 HR Trends

Similar to 2016 HR Trends (20)

Recently uploaded

Recently uploaded (20)

2016 HR Trends

Editor's Notes