Megatrends for HR Peter Cheese CEO, CIPD

Key drivers shaping our future Technology and digital Economic changes and nature of work Workforce and demographics

UK workforce trends since the GFC 15% of total employment now self- employed 90% of the increase in the workforce is the 50+ segment, or 1.12m people High skill jobs (managerial, professional etc) account for 71% of employment rise 10% decline in average earnings in real terms since 2008 Sources: ONS, CIPD Research, E&Y High job creation, low productivity and wages growth Over the period 1998 to 2010 the share of private sector employment in the largest businesses (250+) fell from 50% to 40%. For the smallest (1 to 4 employees) it increased from 11% to 22%. Source: BIS

The Challenge… 4

An inflection point – time of opportunity for HR

‘Rethinking’ the workforce relationship Voice Empowerment Recognition Support Playing to strengths Meaning Purpose Well-being Energy! The extra mile Passion Alignment Collaboration Shared values Commitment Happiness ….. and Trust

HR a key enabler, but developing managers is critical

Source Attract Select Orient Build skills Develop Reward Progress Welcome to our Company Orientation begins here So are our People Management practices good enough? Where are your biggest challenges today? Where will they be tomorrow?

Are we focused enough on organisation and culture? Job design Roles Org structures Operating models Managing change Culture Leadership Capabilities

Most business leaders believe that analytics is vital to identifying current and future skill gaps But only 15% believe HR is providing insightful analytics (KPMG survey 2013) Too much data, not enough information But not everything that can be counted counts…

Getting back to our roots… Understanding human and organisational behaviour Neuroscience Positive Psychology Behavioural Economics Systems thinking Values and ethics ….

Trust, Ethics and Morals Empowerment Trust Ethics of Reason Ethics of Care Ethics of Obedience Roger Steare: “Ethicability”

From control to enablement Integrity has no need of rules – Albert Camus

Need for a strategic response ‘Content is king, but context is kingdom’ Business Strategy Human Capital Strategy HR Strategy DrivesEnables Drives Business priorities Business needs Talent and skills Leadership Organisation and operating model Culture HR capabilities HR structure and operating model Practices, policies & processes

Framework for Future of HR and People Development Insight on Changing Context Science of human and organisational behaviour HR & Learning Processes, Practices, Policies Business, Commercial Insight, and Analytics Better work and working lives

Evolving the Profession Principles Policy and Regulation Profession for the Future Human Capital Standards Internationalisation Professionalisation Knowledge Base – Future of HR Framework Better Business Better Work and Working Lives r r