Challenges Facing HR Over the Next 10 Years - PowerPoint Presentation

Slide1

Challenges Facing HR Over the Next 10 Years

November 1, 2012Slide2

What will be the three biggest challenges facing HR executives over the next 10 years?

Retaining and rewarding the best employees (59%), developing the next generation of corporate leaders (52%), and creating a corporate culture that attracts the best employees to organizations (36%).

What will be the biggest investment challenge for organizations over the next 10 years? About two-fifths (43%) of HR professionals indicated that obtaining human capital and optimizing human capital investments will be the biggest investment challenge.Which tactics will be the most effective in attracting, retaining and rewarding the best employees over the next 10 years? The top four responses were providing flexible work arrangements (40%); creating an organizational culture where trust, open communication and fairness are emphasized and demonstrated by leaders (37%); providing employees with opportunities for career advancement (26%); and offering a higher total rewards package than organizations that compete for the same talent (26%).How do HR Professionals expect the future workforce to evolve over the next 10 years? In terms of workforce size, the majority (69%) of HR professionals expect their organization to have a larger workforce in 10 years. Just over one-half (54%) indicate that their use of contract/temporary employees will not change, and 29% expect a growing proportion of contract/temporary employees. Nearly one-half (47%) indicate that over the next 10 years there will be a greater proportion of full-time employees, whereas the other half believe the workforce will stay the same (27%) or have more part-time employees (26%).

Challenges Facing HR Over the Next 10 Years ©SHRM 2012

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Key FindingsSlide3

Which HR competencies will be most critical 10 years from now?

Over one-third of HR professionals think that the four most critical competencies in 10

years will be business acumen (42%), organizational leadership and navigation (40%), relationship management (37%), and communication (35%).What components (subcompetencies) of business acumen will be most critical in 10 years? HR professionals expect the top three components to be HR and organizational metrics/analytics/business indicators (45%), knowledge of business operations and logistics (41%), and strategic agility (41%).What bodies of knowledge do HR professionals rate as being the most important in 10 years? The four bodies of knowledge that were rated as most important were strategic business management, talent management, change management, and workforce planning and employment.Challenges Facing HR Over the Next 10 Years ©SHRM 2012

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Key Findings (continued)Slide4

Challenges Facing HR Over the Next 10 Years ©SHRM 2012

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Challenges in HRSlide5

Over the next 10 years, what do you think will be the three biggest challenges facing HR executives at your organization?

Challenges Facing HR Over the Next 10 Years ©SHRM 2012

5Note: Percentages do not total 100% due to multiple response options. Respondents who answered “don’t know” were excluded from this analysis.Slide6

Over the next 10 years, what do you think will be the three biggest challenges facing HR executives at your organization?

6

Note: Only statistically significant differences are shown. Comparisons by organization sector Publicly owned for-profit

and privately owned for-profit

organizations are more likely than nonprofit organizations to indicate

that finding the

right employees in the right markets where we do business around the world is one

of the biggest challenges facing HR executives.

Comparisons by organization sector

Publicly owned for-profit (24%)

Privately owned for-profit (19%)

>

Nonprofit (8%)

Challenges Facing HR Over the Next 10 Years ©SHRM 2012Slide7

Over the next 10 years, what do you think will be the biggest investment challenge facing organizations?

Challenges Facing HR Over the Next 10 Years ©SHRM 2012

7Note: Percentages do not total 100% due to rounding.Slide8

Challenges Facing HR Over the Next 10 Years ©SHRM 2012

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Talent Management TacticsSlide9

Over the next 10 years, which of the following tactics do you believe will be most effective in attracting, retaining and rewarding the best employees in your organization?

Challenges Facing HR Over the Next 10 Years ©SHRM 2012

9Note: Percentages do not total 100% due to multiple response options. An asterisk (*) indicates option was not included on 2010 survey.Slide10

Over the next 10 years, which of the following tactics do you believe will be most effective in attracting,

retaining

and rewarding the best employees in your organization?10Note: Only statistically significant differences are shown. Comparisons by organization sector Nonprofit organizations are more likely than privately owned for-profit

organizations to indicate that creating

an organizational culture where trust, open communication and fairness are emphasized and demonstrated by leaders is one

of the most effective tactics in attracting, retaining and rewarding the best employees.

Comparisons by organization sector

Nonprofit (51%)

>

Privately owned for-profit (33%)

Challenges Facing HR Over the Next 10 Years ©SHRM 2012Slide11

Challenges Facing HR Over the Next 10 Years ©SHRM 2012

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Future WorkforceSlide12

Over the next 10 years, how do you expect the size of your organization’s workforce to evolve?

Challenges Facing HR Over the Next 10 Years ©SHRM 2012

12Note: Respondents who answered “don’t know” were excluded from this analysis.Slide13

Over the next 10 years, how do you expect the size of your organization’s workforce to evolve?

13

Note: Only statistically significant differences are shown. Comparisons by organization sector Privately owned for-profit

organizations are more likely than nonprofit and government

organizations to expect the size of their organization’s workforce to grow larger over the next 10 years.

Comparisons by organization sector

Privately owned for-profit (80%)

>

Nonprofit (62%)

Government (36%)

Challenges Facing HR Over the Next 10 Years ©SHRM 2012

G

overnment

organizations are more likely than

privately owned for-profit

organizations to expect the size of their organization’s workforce to get smaller over the next 10 years.

Comparisons by organization sector

Government (39%)

>

Privately owned for-profit (11%)

Nonprofit organizations are more likely than

privately owned for-profit

organizations to expect the size of their organization’s workforce to have no change over the next 10 years.

Comparisons by organization sector

Nonprofit (23%)

>

Privately owned for-profit (10%)Slide14

Over the next 10 years, how do you expect your organization’s use of contract or temporary employees to evolve?

Challenges Facing HR Over the Next 10 Years ©SHRM 2012

14Note: Respondents who answered “don’t know” were excluded from this analysis.Slide15

Over the next 10 years, how do you expect your organization’s use of contract or temporary

employees to evolve?

15Comparisons by organization staff size

25,000 or more employees (57%)

>

1

to 99 employees (25%)

100 to 499 employees (21%)

500 to 2,499 employees (29%)

Note: Only statistically significant differences are shown.

Comparisons by organization staff size

Organizations with 25,000 or more employees are more likely than organizations with 1 to 2,499 employees to

expect a growing proportion of contract or temporary employees over the next 10 years

.

Challenges Facing HR Over the Next 10 Years ©SHRM 2012Slide16

Over the next 10 years, how do you expect your organization’s employment status to evolve?

Challenges Facing HR Over the Next 10 Years ©SHRM 2012

16Note: Respondents who answered “don’t know” were excluded from this analysis. Percentages may not total 100% due to rounding.Slide17

Over the next 10 years, how do you expect your organization’s employment status to evolve?

17

Comparisons by organization staff size

25,000 or more employees (44%)

>

1

to 99 employees (16%)

Note: Only statistically significant differences are shown.

Comparisons by organization staff size

Organizations with 25,000 or more employees are more likely than organizations with 1 to 99 employees to

expect a growing proportion of regular part-time employees over the next 10 years

.

Comparisons by organization sector

P

rivately

owned for-profit

organizations are more likely than

n

onprofit and government

organizations to

expect a growing proportion of regular

full-time

employees over the next 10 years.

Comparisons by organization sector

Privately owned for-profit (58%)

>

Nonprofit (38%)

Government(21%)

Challenges Facing HR Over the Next 10 Years ©SHRM 2012

G

overnment

organizations are more likely than p

rivately

owned for-profit

organizations to

expect a growing proportion of regular

part-time

employees over the next 10 years.

Comparisons by organization sector

Government (50%)

>

Privately owned for-profit (21%)Slide18

Challenges Facing HR Over the Next 10 Years ©SHRM 2012

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HR CompetenciesSlide19

Ten years from now, which of the following competencies do you see being most critical for the HR professional?

Challenges Facing HR Over the Next 10 Years ©SHRM 2012

19Note: n = 472. Percentages do not total 100% due to multiple response options.Slide20

Ten years from now, which of the following competencies do you see being most critical for the HR professional?

20

Comparisons by organization staff size

2,500 to 24,999 employees (56%)

25,000 or more employees (59%)

>

1

to 99 employees (24%)

Note: Only statistically significant differences are shown.

Comparisons by organization staff size

Organizations with 2,500 or more employees are more likely than organizations with 1 to 99 employees to

see business acumen as being most critical for the HR professional 10 years from now

.

Challenges Facing HR Over the Next 10 Years ©SHRM 2012

Comparisons by organization staff size

100 to 499 employees (35%)

>

2,500

to 24,999 employees (14%)

Organizations with 100 to 499 employees are more likely than organizations with 2,500 to 24,999 employees to

see HR technical expertise and practice as being most critical for the HR professional 10 years from now

.

Comparisons by organization staff size

2,500

to 24,999 employees (27%)

>

100 to 499 employees (10%)

Organizations with 2,500 to 24,999 employees are more likely than organizations with 100 to 499 employees to

see global and cultural effectiveness as being most critical for the HR professional 10 years from now

.Slide21

Ten years from now, which of the following competencies do you see being most critical for the HR professional?

21

Note: Only statistically significant differences are shown. Comparisons by organization sector Publicly owned

for-profit organizations are more likely than n

onprofit organizations to

see business acumen as being most critical for the HR professional

10

years from now.

Comparisons by organization sector

Publicly owned for-profit (57%)

>

Nonprofit (34%)

Challenges Facing HR Over the Next 10 Years ©SHRM 2012Slide22

Ten years from now, when considering Business Acumen for HR professionals, which of the following components (i.e., subcompetencies) will be most critical?

Challenges Facing HR Over the Next 10 Years ©SHRM 2012

22Note: n = 469. Percentages do not total 100% due to multiple response options.Slide23

Ten years from now, when considering Business Acumen for HR professionals, which of the following components (i.e.,

subcompetencies

) will be most critical?23Comparisons by organization staff size

2,500 to 24,999 employees (57%)

>

1

to 99 employees (34%)

Note: Only statistically significant differences are shown.

Comparisons by organization staff size

Organizations with 2,500 to 24,999 employees are more likely than organizations with 1 to 99 employees to

consider HR and organizational metrics/analytics/business indicators as being most critical for the HR professional 10 years from now

.

Challenges Facing HR Over the Next 10 Years ©SHRM 2012Slide24

Rate the importance of these bodies of knowledge for HR professionals 10 years from now.

Challenges Facing HR Over the Next 10 Years ©SHRM 2012

24Note: n = 446. Respondents rated each body of knowledge on a scale from 0 (not important) to 10 (very important).Body of Knowledge

Average Rating (0 to 10)

Strategic Business Management

8.8

Talent Management

8.6

Change Management

8.5

Workforce Planning and Employment

8.5

Compensation and Benefits

8.3

Human Resource Development

8.2

Employee and Labor Relations

8.1

HR Technology

8.0

Risk Management

7.7

Global and International Human Resources

6.9Slide25

Challenges Facing HR Over the Next 10 Years ©SHRM 2012

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Organization DemographicsSlide26

Demographics: Organization Industry

Challenges Facing HR Over the Next 10 Years ©SHRM 2012

26Note: n = 461. Percentages do not total 100% due to multiple response options.Percentage

Professional,

scientific

and

technical

Services

20%

Health

care

and

social assistance

17%

Manufacturing

16%

Educational

services

13%

Finance and

insurance

12%

Accommodation and

food services

7%

Transportation and

warehousing

6%

Arts,

entertainment

and

recreation

5%

Government

agencies

5%

Administrative and

support

and

waste management

and

remediation services

4%

Religious,

grant-making

,

civic

,

professional

and

similar organizations

4%Slide27

Demographics: Organization Industry(

c

ontinued)Challenges Facing HR Over the Next 10 Years ©SHRM 201227Note: n = 461. Percentages do not total 100% due to multiple response options.

Percentage

Retail trade

4%

Construction

3%

Information

3%

Real estate and rental and leasing

3%

Repair and maintenance

3%

Wholesale

trade

3%

Agriculture,

forestry

,

fishing

and

hunting

2%

Mining

1%

Personal and laundry services

1%

Utilities

1%

Other

9%Slide28

Demographics: Organization Sector

Challenges Facing HR Over the Next 10 Years ©SHRM 2012

28n = 462Slide29

Demographics: Organization Staff Size

Challenges Facing HR Over the Next 10 Years ©SHRM 2012

29n = 454Slide30

Other Demographics

Challenges Facing HR Over the Next 10 Years ©SHRM 2012

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U.S.-based operations only

71%

Multinational

operations

29%

Single-unit organization: An

organization in which the location and the organization are one and the same.

28%

Multi-unit organization: An organization that has more than one location.

72%

Multi-unit

headquarters determines HR policies and practices

51%

Each work location determines HR policies

and practices

3%

A combination of both the

work location and the multi-unit headquarters determines HR policies and practices

46%

Is your organization a single-unit organization or a multi-unit organization?

For multi-unit organizations, are HR policies and practices determined by the multi-unit headquarters, by each work location or

by both

?

Does your organization have U.S.-based operations (business units) only, or does it operate

multinationally

?

n = 470

n = 473

n = 347

Corporate (compan

ywide)

71%

Business unit/division

17%

Facility/location

12%

n = 348

What is the HR

department/function for which you responded for

throughout this survey?Slide31

2012 response rate = 17%

2010 response rate = 17%

Sample composed of 487 (2012) and 449 (2010) randomly selected HR professionals from SHRM’s membershipMargin of error +/-5%2012 survey fielded September 14 to September 28, 20122010 survey fielded August 10 to August 23, 2010Challenges Facing HR Over the Next 10 Years ©SHRM 2012

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Challenges Facing HR Over the Next 10 Years

Survey MethodologySlide32

For more survey/poll findings, visit

www.shrm.org/surveys

For more information about SHRM’s Customized Research Services, visit www.shrm.org/customizedresearchFollow us on Twitter @SHRM_Research

Challenges Facing HR Over the Next 10 Years ©SHRM 2012

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Challenges Facing HR Over the Next 10 Years

About SHRM Research

Project

leader:

Tanya Mulvey,

survey research analyst, SHRM Research

Project contributors:

Mark Schmit, Ph.D.,

SPHR

, vice president, SHRM Research

Evren Esen, manager, Survey Research Center, SHRM

Research

Alexander Alonso, Ph.D.,

SPHR

, director, HR Thought Leadership

Copy editor: Katya Scanlan, SHRM Knowledge Center