Presentation is loading. Please wait.

Presentation is loading. Please wait.

Challenges Facing HR Over the Next 10 Years November 1, 2012.

Similar presentations


Presentation on theme: "Challenges Facing HR Over the Next 10 Years November 1, 2012."— Presentation transcript:

1 Challenges Facing HR Over the Next 10 Years November 1, 2012

2 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 Key Findings

3 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 Key Findings (continued)

4 Challenges Facing HR Over the Next 10 Years ©SHRM Challenges in HR

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

6 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 2012

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

8 Challenges Facing HR Over the Next 10 Years ©SHRM Talent Management Tactics

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

10 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? 10 Note: 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 2012

11 11 Future Workforce

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

13 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 Government 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%)

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

15 Over the next 10 years, how do you expect your organization’s use of contract or temporary employees to evolve? 15 Comparisons 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 2012

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

17 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 Privately owned for-profit organizations are more likely than nonprofit 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 Government organizations are more likely than privately 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%)

18 Challenges Facing HR Over the Next 10 Years ©SHRM HR Competencies

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

20 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.

21 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 nonprofit 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 2012

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

23 Ten years from now, when considering Business Acumen for HR professionals, which of the following components (i.e., subcompetencies) will be most critical? 23 Comparisons 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 2012

24 Rate the importance of these bodies of knowledge for HR professionals 10 years from now. Challenges Facing HR Over the Next 10 Years ©SHRM Note: n = 446. Respondents rated each body of knowledge on a scale from 0 (not important) to 10 (very important). Body of KnowledgeAverage Rating (0 to 10) Strategic Business Management8.8 Talent Management8.6 Change Management8.5 Workforce Planning and Employment8.5 Compensation and Benefits8.3 Human Resource Development8.2 Employee and Labor Relations8.1 HR Technology8.0 Risk Management7.7 Global and International Human Resources6.9

25 Challenges Facing HR Over the Next 10 Years ©SHRM Organization Demographics

26 Demographics: Organization Industry Challenges Facing HR Over the Next 10 Years ©SHRM Note: n = 461. Percentages do not total 100% due to multiple response options. Percentage Professional, scientific and technical Services20% Health care and social assistance17% Manufacturing16% Educational services13% Finance and insurance12% Accommodation and food services7% Transportation and warehousing6% Arts, entertainment and recreation5% Government agencies5% Administrative and support and waste management and remediation services 4% Religious, grant-making, civic, professional and similar organizations4%

27 Demographics: Organization Industry (continued) Challenges Facing HR Over the Next 10 Years ©SHRM Note: n = 461. Percentages do not total 100% due to multiple response options. Percentage Retail trade4% Construction3% Information3% Real estate and rental and leasing3% Repair and maintenance3% Wholesale trade3% Agriculture, forestry, fishing and hunting2% Mining1% Personal and laundry services1% Utilities1% Other9%

28 Demographics: Organization Sector Challenges Facing HR Over the Next 10 Years ©SHRM n = 462

29 Demographics: Organization Staff Size Challenges Facing HR Over the Next 10 Years ©SHRM n = 454

30 Other Demographics Challenges Facing HR Over the Next 10 Years ©SHRM U.S.-based operations only71% Multinational operations29% 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 (companywide)71% Business unit/division17% Facility/location12% n = 348 What is the HR department/function for which you responded for throughout this survey?

31 2012 response rate = 17% 2010 response rate = 17% Sample composed of 487 (2012) and 449 (2010) randomly selected HR professionals from SHRM’s membership Margin of error +/-5% 2012 survey fielded September 14 to September 28, survey fielded August 10 to August 23, 2010 Challenges Facing HR Over the Next 10 Years ©SHRM Challenges Facing HR Over the Next 10 Years Survey Methodology

32 For more survey/poll findings, visit For more information about SHRM’s Customized Research Services, visit Follow us on Twitter Challenges Facing HR Over the Next 10 Years ©SHRM 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


Download ppt "Challenges Facing HR Over the Next 10 Years November 1, 2012."

Similar presentations


Ads by Google