The Future Of HR Accenture
INTEGRATED APPROACHANALYTICS EXTEND HRHR’S FUTURE NEED TO CHANGERECRUITING TOOLS CLOUDHR FORWARDRESOURCESAPPENDIXCONTACTTHE FUTURE OF HRFive Technology Imperatives
INTEGRATED APPROACHANALYTICS EXTEND HRHR’S FUTURE NEED TO CHANGERECRUITING TOOLS CLOUDHR FORWARDRESOURCESAPPENDIXCONTACTTHE FUTURE OF HRFive Technology ImperativesContentsUnderstanding HR’s Future. 3How HR Needs To Change. 6The Five Technology Imperatives1. Take an Integrated Approach to Talent Management. 82. Use Analytics to Power HR Decision Making. 113. Extend HR and Talent Management to the Workforce. 154. Take Advantage of Advanced Recruiting Tools. 185. Leverage the Cloud for Efficiency and Agility. 21Taking HR Forward. 24Resources. 25Appendix: Oracle and Accenture HR Offerings. 26t2
INTEGRATED APPROACHANALYTICS EXTEND HRHR’S FUTURE NEED TO CHANGERECRUITING TOOLS CLOUDHR FORWARDRESOURCESAPPENDIXCONTACT1THE FUTURE OF HRFive Technology ImperativesUnderstanding HR’s FutureConstant change has long been a given in business,but today, companies face an evolving landscape that isincreasingly complicated and unpredictable. There’s beena shift to renewed growth. But the path to growth is notalways straightforward. Markets are often volatile, andcompetitors from around the globe move quickly to exploitopportunities. Innovations appear at an accelerating pace.And customer expectations are constantly rising andshifting. Companies today are operating in an increasinglyvolatile, uncertain, complex and ambiguous world, alsoknown as a “VUCA” environment.The challenges facing each business vary, but to a greatextent, the ability to meet those challenges comesdown to one key factor—talent. In a recent Accenturesurvey of more than 1,000 senior executives, attracting,retaining and developing skilled talent was a keyconcern. “With talent at the top of the agenda for manymembers of the C-suite, including the CEO, HR has atremendous opportunity to have a significant impact onthe business,” says David Gartside, managing directorresponsible for the Future of HR research program in theAccenture Talent & HR Services practice.The human resources (HR) organization is typicallycharged with winning the war for talent—but like thebusiness, it too faces a dynamic, complex environment. Forexample, the nature of work is changing, with increasinglyglobal operations; a growingneed for specialized skillsand knowledge workers;and mobile, social and othertechnologies are now enablinggreater collaboration and newprocesses. All of this makes itmore critical and more difficultto find and retain the right people.As the world of businessand work evolves, the HRorganization will need torethink and adapt its missionand its operations.At the same time, the nature of the workforce itself isin flux, driven largely by demographic trends. Youngerworkers bring their own distinct expectations fordevelopment, rewards and leading-edge technology tothe workplace. Older workers are retiring, taking theirskills, experience and organizational knowledge withthem—but it is not clear how quickly that shift will unfold.“Many workers have delayed their retirement, waitingfor their investments to come back after the recession,”says Cara Capretta, vice president of the HCM BusinessTransformation Practice at Oracle. “No one knows exactlywhen people are going to retire, or how it’s going to impactjob replacement planning and skill replacements. But in thenext four to seven years, some companies could see upto 40 percent of their people shifting out of the workforce.So HR leaders are wondering how the market for talent isgoing to change.” In the meantime, the delayed retirementsof many older employees means that HR needs to meetthe needs of different generations in the workplace.3
INTEGRATED APPROACHANALYTICS EXTEND HRHR’S FUTURE NEED TO CHANGERECRUITING TOOLS CLOUDHR FORWARDRESOURCESAPPENDIXCONTACTIn all of this uncertainty, one thing is clear. As the world ofbusiness and work evolves, HR is facing new demands—andthe HR organization will need to rethink and adapt its missionand its operations.Looking for AnswersTo understand the challenges facing HR executives and theirorganizations, Accenture has been conducting a multi-yearresearch initiative called “The Future of HR.” This ongoing efforthas identified 10 key trends that HR executives need to track andunderstand. (See sidebar, “Trends Reshaping the Future of HR”).Together, these trends depict an environment that will requirefundamentally new approaches for HR organizations. In a world ofglobal competition, organizations will have to deal with a scarcityof key talent, constantly shifting skill requirements, and the needto support new business models. They will need to managean extended workforce that includes traditional employees,contractors, outsourcing providers and partner companies. And,they will need to source talent from around the world, as theworkforce transcends traditional geographic boundaries.At the same time, Accenture research shows that HR will needto be highly agile to support new business strategies andmodels and enable companies to meet fast-moving competitivethreats and opportunities. Tomorrow’s workforce will needto be ramped up and scaled back on demand—often, in newlocations, as the execution of work moves from place to place.Finally, HR will have to enable the changing workforce tosucceed in a dynamic business environment—and meetTHE FUTURE OF HRFive Technology Imperativesemployees’ evolving expectations. That will mean adopting amore individualized, “workforce of one” approach to employees,delivering the right experience to different employee segments,and leveraging social technology for increased collaboration—often outside of traditional hierarchies and channels.Accenture research also indicates that HR will play an increasinglyimportant role in the success of companies, and underscores theneed for HR to work closely with the business. However, doingso often remains a challenge. In one Accenture study, only 20percent of employees surveyed reported that their HR departmentsignificantly supports and improves their performance at work.Overall, HR needs to do more than adjust to these emergingrealities—it needs to transform itself. “Today’s HR department,although it has evolved over time, is still largely a product of theindustrial age,” notes an Accenture report on the research. “MostHR departments, for example, continue to treat employees muchas they did generations ago—as if everyone were interchangeableand everyone were the same. HR practices ranging from linearcareer paths to yearly performance reviews to selection of newhires through review of resumes and interviews were created inan age when business was more stable, predictable, and orientedlargely toward manual labor.”In the end, Accenture reports that the trends it has identified“will demand a very different set of HR and talent managementpractices better suited to a highly volatile, global, andknowledge- and information-oriented age.”4
INTEGRATED APPROACHANALYTICS EXTEND HRHR’S FUTURE NEED TO CHANGERECRUITING TOOLS CLOUDHR FORWARDRESOURCESAPPENDIXCONTACTTHE FUTURE OF HRTrends Reshaping the Future of HRAccenture’s ongoing research, “The Future of HR,”has identified 10 key trends that are reshaping the HRfunction:wwwwwTapping Skills Anywhere, AnytimeWith widening skill gaps, HR will need to quicklyaccess critical skills on demand, when and wherethey’re needed.Managing Your People as a Workforce of OneHR will need to treat each employee individually,with customized HR and talent-managementsolutions.The Rise of the Extended WorkforceHR’s mission and mandate will evolve to enableit to maximize the extended workforce’s strategicvalue.Digital Radically Disrupts HRA range of technologies are transforming howpeople carry out their work, and how HR supportsemployees.Reconfiguring the Global Talent LandscapeHR will transform to adapt to a more global world,match talent with tasks in various locations, andsupport mobile workforces across geographicbarriers.wSocial Media Drives the Democratizationof WorkKnowledge workers will harness social mediato collaborate, radically disrupting organizationalstructures, hierarchies and job titles.wTalent Management Meets the Science ofHuman BehaviorScientific insights and analytics will provide HR withnew tools to drive workforce performance.wHR Drives the Agile OrganizationHR will play a critical role in enabling companies toadapt to changing business conditions.wHR Must Navigate Risk and Privacy in aMore Complex WorldHR will need to adopt risk-management strategiescovering everything from confidential data to theturnover of talent.wHR Expands Its Reach to Deliver SeamlessEmployee ExperiencesHR will evolve from a stand-alone function to onethat spans disciplines and boundaries to delivercross-functional, holistic employee experiences.Five Technology Imperatives
INTEGRATED APPROACHANALYTICS EXTEND HRHR’S FUTURE NEED TO CHANGERECRUITING TOOLS CLOUDHR FORWARDRESOURCESAPPENDIXCONTACT2THE FUTURE OF HRFive Technology ImperativesHow HR Needs To ChangeOver the last decade, the typical HR organization hasworked hard to meet the needs of a constantly changingbusiness environment. To a great extent, that has meantbecoming increasingly efficient, keeping costs low whilemoving quickly to meet company and employee needs,focusing on streamlining transactions, and helpingemployees comply with policies. However, as the trendsdiscussed in the Accenture research illustrate, HR needsto think about effectiveness and helping the companymake better decisions about talent, rather than justincreasing efficiency.This reality often prompts calls for HR to be morestrategic—and that is indeed important. But in today’senvironment, being strategic can mean not only high-levelplanning, but also being able to translate strategy into dayto-day actions—that is, delivering increased effectivenessat the tactical level and finding practical solutions tospecific talent problems. For example, if a company hasa workforce-performance issue, it may need to identifythe concrete actions it can take to address that issue.“Should we spend X amount on soft skills or X amounton hard-skills training?” says Accenture’s David Gartside.“Or should we give that money as a bonus to certainemployees? Or should we recruit new people? Those aretactical business decisions that have a big impact on thecompany—and HR is frequently not well positioned toanswer those questions.”The best HR departmentsare not focused on a warfor talent—but rather onspecific battles for talent.Overall, HR needs to transformitself so that it can think about“business as a competitivesport,” Gartside says. “The bestHR departments are not focusedon a war for talent—but ratheron specific battles for talent. Andthey are focused on the performance of their workforceversus the performance of their competitors’ workforce.”It’s no longer enough to consider issues such as being themost attractive employer or providing clear developmentpaths. Instead, he says, HR needs to constantly ask itself,“How can we help beat the competition?”Enabling Tomorrow’s HR OrganizationReshaping HR for the future will require change onmany fronts. But a key factor across the board will betechnology, which is both disrupting the status quo andopening up new possibilities for HR and the business.HR will need to provide the business with insights thatare data-driven and actionable and enable decisionsthat drive business results—and that makes technologycritical. Technology is dramatically increasing the flow ofdata and information that is available around talent. Thatincludes internal information about employees and theirskills and competencies, and external information aboutcompetitor’s employees and the talent marketplace. As6
INTEGRATED APPROACHANALYTICS EXTEND HRHR’S FUTURE NEED TO CHANGERECRUITING TOOLS CLOUDHR FORWARDRESOURCESAPPENDIXCONTACTa result, HR can now access a wealth of information to drivebetter decision-making and truly think competitively.At the same time, technology is creating new possibilities forsupporting the workforce. Employees today are accustomedto using web self service and mobile and social technologiesin much of their lives, and HR can take advantage of thatfamiliarity to reach them in a more comprehensive, “anytimeanywhere” fashion. People are increasingly connectedand interacting in new ways as they shop and bank andcommunicate with each other, says Oracle’s Cara Capretta,“and they expect to have the same type of access toinformation in the workplace.”The Technology ImperativesTechnology, then, is driving change and at the same timeenabling HR to keep up with that change—and ultimatelybring order to a dynamic, fast-changing environment. But thetechnology itself is multifaceted, and it can be hard to knowhow to proceed. In developing strategies for using technology,HR executives need to think about five “technologyimperatives” as they chart a course for their organizations.THE FUTURE OF HRFive Technology ImperativesKey questionsIn thinking about how theirorganizations need to change,HR executives should ask:w How well do we supportday-to-day talentdecisions that enablebusiness strategy?w Are we able to provide thebusiness with actionableinsights that drivecompetitiveness?w Are we taking full advantageof newer technologiesto connect with talent,internally and externally?w How well are we usingtechnology to succeed inthe age of “digital HR”?w Are we incorporatingevolving technologiesinto our HR organization’splans for the future?These technology imperatives are explored in more detail inthe following chapters.w Take an integrated approach to talent managementw Use analytics to power HR decision makingw Extend HR and talent management out to the workforcew Take advantage of advanced recruiting toolsw Leverage the cloud for efficiency and agility7
INTEGRATED APPROACHANALYTICS EXTEND HRHR’S FUTURE NEED TO CHANGERECRUITING TOOLS CLOUDHR FORWARDRESOURCESAPPENDIXCONTACT3THE FUTURE OF HRFive Technology ImperativesUNDERSTANDING NEEDS APPROACH ANALYTICS WORKFORCEADVANTAGE LEVERAGE FORWARDTake an Integrated Approach to Talent ManagementHR executives have long recognized that an integratedapproach to talent management is critical. But puttingthat concept into practice has not been easy. In recentyears, as the various disciplines within HR have becomeincreasingly specialized and sophisticated, HR hasactually become more and more siloed. Learning,recruiting, and performance management each have anagenda and a set of things they need to do, and they arenot always coordinated.To transcend those silos, HR needs to have acomprehensive view of the workforce—and evenindividual employees—that can be used to drivedecisions and actions across all of HR. Developing thatcomprehensive view depends on the integration oftechnology to bring together information from acrossHR processes. A recent Oracle study of HR technologynoted, “Technology investments are often made tostreamline processes and improve data accuracy. Butthe full power of technology cannot be realized whencompanies have multiple systems of record withdisconnected data streams and conflicting processes.”Too often, however, HR has relied on a variety ofindividual best-of-breed systems that target specificfunctions. To gain an integrated perspective, HR has hadto stitch these systems together, which can be difficult.As the HR.com/Oracle study noted, “HR has a longEvolving technology nowmakes it easier for HR tohave truly integrated systemsand a more comprehensiveview of the workforce.way to go when it comesto integration. The majorityof organizations surveyedreport poor-to-moderateintegration of their talentmanagement applications.”The report adds that “standalone technology (instead ofintegrated technology) is surprisingly prevalent ”The Integrated PlatformHowever, HR technology is evolving quickly, andrecent developments—including consolidation in themarketplace—now make it easier for HR to have trulyintegrated systems and a more comprehensive viewof the workforce. “This approach basically puts theindividual best-of-breed players into a fully integratedsolution, and it has changed the HR technology marketsignificantly in a short time,” says Oracle’s Capretta.The end result: Companies can easily take advantageof a single platform that supports a full range of HRprocesses, including talent strategy and planning;sourcing and recruiting; performance management,learning and development; talent review and successionplanning; and compensation.With an integrated platform, HR processes are allworking with the same consistent information, andthe same single view of the employee. “The idea is to8
INTEGRATED APPROACHANALYTICS EXTEND HRHR’S FUTURE NEED TO CHANGERECRUITING TOOLS CLOUDHR FORWARDRESOURCESAPPENDIXCONTACTconnect information across the employee lifecycle, fromthe minute that someone is a candidate through the wayin which you recruit, select, onboard, develop, coach,evaluate and promote them,” says Capretta. “The technologyconnects all those pieces and parts so you can see how theyrelate to and affect each other.”Enabling Better HR DecisionsSuch connections make it possible for companies to dothings that can’t be done with siloed systems. For example,with integrated talent management tools:w HR professionals can not only review performance for agiven job board or other recruiting channel, they can alsomonitor how well employees hired through that channelperform once they are on the job, and track the attritionrates associated with that channel.w Onboarding activities can draw on information from otherHR processes to help determine what training is needed bynew hires, track their progress in training, and ultimatelyhelp them ramp up quickly for their new roles.THE FUTURE OF HRFive Technology ImperativesKey questionsIn thinking about integratedtalent management, HRexecutives should ask:w Does our technology workacross functions, or does itenforce traditional silos?w Can we easily inventoryskills across the globalorganization and matchthat against future businessneeds?w How does development,compensation andperformance managementwork together to engageand retain our highperformers?w Do our systems support anindividualized, “workforceof one” approach?w Are we able to clearly alignlearning, development,employee goals,compensation andperformance managementwith overall corporategoals and strategy?w Do we spend too muchtime and moneymaintaining standaloneHR systems?goals, and gain clear visibility into how each employeecontributes to the success of the organization.training, companies can shape and recommend targetedlearning plans based on individual employee reviews andperformance—and come up with tailored developmentplans to engage and retain top performing employees.The integrated, holistic perspective also makes it possibleto move toward an individualized, “workforce of one”approach. For example, rather than provide across-theboard raises, companies can easily tie compensation toindividual performance. Or, instead of offering generalAll of this “helps employees succeed, because they cansee that the set of criteria they were interviewed against isthe same set of criteria that they will be held accountableto when they are on the job. And it gives managers acrossHR a common language around skills and behaviors,” saysw Companies can align individual goals with corporate9
INTEGRATED APPROACHANALYTICS EXTEND HRHR’S FUTURE NEED TO CHANGERECRUITING TOOLS CLOUDHR FORWARDRESOURCESAPPENDIXCONTACTCapretta. Ultimately this approach enables HR to trulyunderstand the workforce, the skills that it has in place andthe skills needed to meet the company’s business objectives.It makes it possible to arm business managers with HRrelated decision support tools that can help them in theday-to-day management of employees. And it provides the“talent intelligence” needed to take an end-to-end approachto managing talent that is focused on helping the companycompete.THE FUTURE OF HRFive Technology ImperativesIntegrated talent management can bringgreater efficiency to both HR and IT, andprovide the “talent intelligence” needed tohelp the company compete.Finally, integrated talent management brings greaterefficiency to both HR and IT. With information shared acrosssystems, redundant data entry is essentially eliminated,which means fewer errors and less wasted time. And forIT, operating a single, integrated platform requires lesstime and fewer specialized skills, compared to numerousstandalone systems. Such efficiencies and cost savings are,if anything, more critical than ever. “No part of any businessthese days is being given a free ride in terms of operationalexcellence and how well you run the function,” saysAnthony Abbatiello, managing director, HR consulting grouplead at Accenture. “Everyone has to get better at beingoperationally excellent—and HR is no exception.”10
INTEGRATED APPROACHANALYTICS EXTEND HRHR’S FUTURE NEED TO CHANGERECRUITING TOOLS CLOUDHR FORWARDRESOURCESAPPENDIXCONTACT4THE FUTURE OF HRFive Technology ImperativesUse Analytics to Power HR Decision MakingThe HR organization holds a key business asset—awealth of data about the workforce. That data is usedto produce a range of reports about the fundamentalsof HR, from recruiting to training and retention. Butthe traditional approach to workforce data is no longersufficient. HR needs to find better ways to leverage itsdata, and use it to build an agile, responsive and focusedworkforce.In today’s environment, HR is under pressure tounderstand the workforce in greater depth in orderto recruit, develop and retain talent more and moreeffectively. At the same time, senior management isincreasingly interested in having concise, up-to-dateinformation about employees and related externalfactors that can be used to make business decisions andmobilize talent as strategies change. In short, HR needsto deliver more actionable information more quicklyin order to keep talent in step with business goals andstrategies.A solution, many observers say, is analytics technology,which can help HR quickly examine huge amountsof data to identify trends and patterns in workforcebehavior and performance. In recent years, analyticshas revolutionized decision making in areas such asmarketing and supply chain, and it has the potentialto do the same for HR. With today’s technologies—from basic workforce analytics to predictive analytics,modeling and big data—HR can do much more thantrack basic performance indicators. It can understand theworkforce in greater depth, find out what is happeningand why it is happening, and determine the best way tomove forward.Today’s analytics can helpHR strengthen organizationalperformance and planproactively rather thanoperate reactively.Deeper Insightsinto the WorkforceToday’s analytics toolscan be applied to a widerange of HR activities. Forexample, analytics canprovide the insight neededto keep employee learningin step with changing skill requirements; understandwhich recruiting channels are producing the bestcandidates; identify high-potential employees; andsupport succession planning that extends deep into theorganization—among other things.Analytics can also give HR professionals a betterunderstanding of how effective their actions are. Forexample, analysts can look for patterns in HR datathat can help companies improve hiring or reduceattrition, or pinpoint areas where labor-related savingscan be achieved. Having better insights that help driveperformance and retention can have a significantimpact, considering that the cost of replacing a worker11
INTEGRATED APPROACHANALYTICS EXTEND HRHR’S FUTURE NEED TO CHANGERECRUITING TOOLS CLOUDHR FORWARDRESOURCESAPPENDIXCONTACTwho leaves can be as high as 300 percent of the employee’sannual compensation. At the leadership level, the cost ofcorrecting a bad hiring decision and replacing an executivecan run into the millions of dollars.Analytics can also be used to support training, developmentand other activities that are more closely tailored toindividual employee needs—thereby helping HR delivermore customized options for employees. As the Accentureresearch notes, HR can use analytics to segment employeesin much the same way that marketers segment customers:“Companies can group employees based on specificcriteria, such as value to the company, role or generation.They can then tailor people practices for each segment.And with advances in business intelligence and analytics,organizations can now create new and more meaningfulsegmentation schemes. For instance, companies can groupemployees by a wider range of criteria that include learningstyles, values, personality, wellness profiles, mobility,behavioral patterns, and networking and communicationstyles.” Using that approach, HR can customize programs forsmaller and smaller segments, helping to increase employeeperformance, engagement and retention.By providing deeper insight into workforce performance,analytics can also help HR clearly demonstrate the businessvalue it creates—an important point for HR and businessexecutives alike. In a recent Economist Intelligence Unitsurvey of CEOs and CFOs, about one third of respondentssaid that the unavailability of data presented an obstacle tobeing able to measure the value of HR activities.THE FUTURE OF HRFive Technology ImperativesKey questionsIn thinking about usinganalytics to power HRdecision making, HRexecutives should ask:w Are we using workforcew Are we using analyticsw How can analytics help useffectively to monitor HRperformance and driveimprovements?w Can we use employeesegmentation todeliver increasinglytailored HR services togroups and individuals inthe workforce?w Are we able to “lookahead” to identifyemployees who are atrisk of leaving, or topredict team and individualperformance?data to provide a clearpicture of HR performanceto senior management?be more proactive inplanning programs andidentifying potentialimprovements in HR?w Do we have an opportunityto expand the universeof data being used inanalytics to answer keyworkforce questions withincreased speed andaccuracy?w Can we use real-timetransactional data tocreate consistent globalreports?Forward-Looking, and Easier to UseThose approaches are valuable because they help decisionmakers understand what is happening with the workforce.But now, many companies are exploring “predictive”analytics technology that makes it easier to understand whatis going to happen—and plan ahead to head off problems.“Predictive analytics is one of the best and biggest thingshappening in HR,” says Oracle’s Cara Capretta. “Thetechnology is able to help us do some really importantthings: It’s able to help us think through the consequences of12
INTEGRATED APPROACHANALYTICS EXTEND HRHR’S FUTURE NEED TO CHANGERECRUITING TOOLS CLOUDHR FORWARDRESOURCESAPPENDIXCONTACTthe things we do with folks, and it’s able to nudge us to dosome very positive things [with the workforce].“Analytics can help us predict retention, turnover,satisfaction—things that are important for us to know aboutemployees,” Capretta continues. For example, systems canassess a wide range of factors that correlate with employeedissatisfaction and defection—such as not taking vacationtime or being in one job too long—and then flag highperformers that are at higher risk of leaving. That givesmanagers a chance to take preemptive action—a newassignment or a bonus, perhaps—to keep that employeeengaged and satisfied.Some analytics systems also let HR model “what if”scenarios to assess potential future actions. This makes itpossible to ask, “if we give this high-performing salespersona promotion, how will it affect the performance andmorale of other salespeople in that group?” Or, “howwill a restructuring of this department affect retentionand performance?” Managers can run several scenarios,adjusting variables as they go, to come up with the actionslikely to produce the best results.A hallmark of today’s HR analytics systems is their easeof use. Analytics tools can be built into HR tools so thatthey draw seamlessly on various data sources and provideinformation to decision makers through a user-friendlyinterface. For example, with the Oracle HCM solution,analytics are embedded in various HR applications andresults of analyses are presented in visual, interactiveTHE FUTURE OF HRFive Technology Imperativesreports or on easy-to-read dashboards, using everydaybusiness terminology rather than technical language. Thisapproach lets managers use analytics as they work and baseoperational decisions on real-time data. Thus, analytics canbe a frontline tool used by HR and business managers, withno need to involve IT in developing analyses and reports.More Data, Big DataAt heart, analytics provides insight by analyzing largeamounts of data—and generally speaking, the bigger thedata pool, the better the information gleaned throughanalytics. Having analytics tools built into an integratedtalent management system can make it easier to pull datafrom across HR processes and factor in things like employeeengagement, cost of employment, retention, and so on. Butinformation from other internal sources, such as financeand operations, can also be useful. So too can external
The challenges facing each business vary, but to a great extent, the ability to meet those challenges comes down to one key factor—talent. In a recent Accenture survey of more than 1,000 senior executives, attracting, retaining and developing skilled talent was a ke
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