In the employment landscape today, there are two parallel drivers for change. The first is a demographic shift in the workforce with millennials and part timers increasing day by day. A second parallel trend has to do with the rise of digital and adoption of analytics that is driving transformation in the nature of work. These trends are also driving a fundamental shift in the contract between the employee and employer with this relationship now becoming a social contract.
Speaking at the HR Summit @ Oracle CloudWorld, Dheeraj Sharma, Director at Deloitte Consulting presented select findings from the firm’s “Global Human Capital Trends Survey 2016”. According to the study, the top priority for organizations around the world has to do with organizational design. There is a shift from the traditional hierarchical structure – where the job levels and experience are correlated to form an organizational structure, to a “networked team based” structure – where there are clusters of teams that interact with each other based on their area of expertise. A total of 92 percent of the companies rated organizational design as an important or very important trend. The future, therefore, would depend on the number of innovations that are seen in terms of organizational design and in understanding the kind of design that is best suited for respective companies.
A second significant area where Human Capital trends report is seeing a big change is in ‘how companies are approaching culture and engagement’. Explaining the need for segregating “Culture” and “Engagement” as two separate trends in this year’s study, as opposed to having them as a single category in previous studies, While culture is primarily concerned with “how do things work in the organization”, engagement is about “how things are perceived to be working in the organization”. According to the study, 64 percent of organizations measure engagement only once a year.
A third area that is seeing increased attention by the HR community is in the area of people analytics. According to the study, a total of 32 percent of the companies surveyed are ready for people analytics, up by one-third compared to the previous year. 40 percent of the companies report that they will be replacing their core HR systems over the next two years. However, the scope for digital HR still remains to be exploited. Only 9 percent of the companies surveyed in the study said that they were “very ready” for digital HR. 20 percent of companies are deploying HR mobile apps today and 59 percent are deploying mobile apps for HR transformation. In a mobile first world, the scope for transformational use of mobile will continue to drive innovation in digital HR.
Find out more about Deloitte’s upcoming “Global Human Capital Trends Survey” and its fascinating insights here.
This article is a part of the People Matters- Oracle Let's Talk Talent series. Click here to visit the Let's talk talent page to read more such articles.