1. The Top Workplace Trends For 2017
September 19, 2016
Dan Schawbel
Partner & Research Director, Future Workplace

2. Annual Workplace Trends Report

3. Capturing Trends Primary Research
We conduct eight studies annually on various HR topics, from training to recruiting.
Secondary Research
We review studies from over 160 sources, including consulting firms, associations and Universities.
HR Conversations
We hold conversations with FWP Fortune 100 member companies to learn about what’s on their mind.

4. 2016 Primary Research Published studies Upcoming studies
Research sponsors
Published studies
April - The Active Job Seeker Dilemma
May - The Gig Economy
May – The Skills Gap
June – Candidate Experience
September - Gen Z & Millennials Collide
Upcoming studies
October – The Office of the Future
November – Future Workplace Experience
December – Work Innovations

5. Secondary Research Sources
Consulting firms
Associations
Non-Profits
Media Entities
Companies
Labor Entities
Staffing Firms
Universities

6. Overall Economic Trends
More competition for talent as the unemployment rate declines
4.9% (June 2016) vs 5.3% (June 2015) vs 9.5% (June 2009) – BLS
70% of employers to increase wages – CareerBuilder
95% of recruiters anticipate the job market to be more competitive - Jobvite
Political and global uncertainty
Trump vs Clinton?
Emerging and decling markets
Terrorism
Overtime and minimum wage laws
An additional 4.2 million salaried workers eligible for overtime pay and raises overtime pay from $23,660 to $47,476 – U.S. Dept of Labor
In 29 states, the minimum wage has increased to $7.25/hour and some have adopted $15/hour

7. Henry Jackson President of SHRM
SHRM’s 5 Trends
Decline of long-tenured careers
Rise of freelance workers
Calls for equal and higher wages
Anxiety around humans versus the machine
Immigration and migration
Henry Jackson President of SHRM
Source: SHRM 2016 Annual Conference, keynote session by Henry Jackson

8. Trend Focus 2017 Recruiting Employee Engagement
Millennials Meet Gen Z in the Workplace
The War For Talent
Candidate/Employee Experience
Creative Employee Benefits & Perk Offering
The Blended Workforce
Augmented/Virtual Reality
Team Over Individual Performance
Workplace Well-Being
The Annual Performance Review Evolves
Office Attire Becomes Casual

9. 1. Candidate & Employee Experience
Employers underestimate the amount of time it takes candidates to submit one job application.
Source: “The Candidate Experience” by Future Workplace & Career Arc, June 2016

10. 1. Candidate & Employee Experience
99% of employers plan to invest more in their candidate experience and they should focus on better communication.
Source: “The Candidate Experience” by Future Workplace & Career Arc, June 2016

11. 1. Candidate & Employee Experience
Job seekers don’t believe their resumes are being reviewed
Source: “The Candidate Experience” by Future Workplace & Career Arc, June 2016

12. 1. Candidate & Employee Experience
Improve your candidate experience
Become more aware of online reviews
Let candidates know about their application status
Keep your job requirements updated
Promote your company culture to close the experience gap
Humanize your interview process and ask for feedback

13. 1. Candidate & Employee Experience
83% of HR said that “employee experience” is important and only 1% said it’s not important.
The top ways that HR said that they will enhance their employee experience in include:
Investing more in T&D (56%)
Improve their work space (51%)
Give more rewards and recognition (47%)
Source: “The Active Job Seeker Dilemma” by Future Workplace & Beyond.com, April 2016

14. 1. Candidate & Employee Experience
Improve your employee experience
Be transparent to create trust
85% believe transparency is important to their organization’s future success.
Adopt strategies from your marketing department to better serve employees.
Ensure that everyone knows the vision, mission and values.
Source: “The Future Workplace Forecast” by Future Workplace & Cisco, November 2016

15. 1. Candidate & Employee Experience
People Analytics
Problem
They were suffering from a high attrition rate and wanted to prevent more departures.
Solution
They used analytics to predict retention risk and gave managers the intel so they should better support employees.
Results
Saved IBM over $130 million dollars, measured by avoiding the costs of hiring and training replacements.

16. 2. The Blended Workforce
A blended workforce combines a variety of employees on different contracts, including permanent full-time staff, part-time, temporary workers, contractors and freelancers.

17. The workforce is changing because of these 6 trends:
2. The Blended Workforce
The workforce is changing because of these 6 trends:
Need for outsourcing
Value of individual expertise
On-demand global talent pool
New technologies
Economic recession
Demand from Millennials and Gen Z

18. Compared to 2015, do you project hiring more freelancers?
2. The Blended Workforce
Companies are hiring more freelancers this year and in the future BUT also increasing full-time employees.
Compared to 2015, do you project hiring more freelancers?
By 2020, do you project hiring more freelancers or full-time workers (FTE)?
Source: “The Gig Economy Study” by Future Workplace & Field Nation, April 2016

19. The skills that businesses say make freelancers effective
2. The Blended Workforce
Employees and freelancers are working side-by-side in the new blended workforce
Do HR Pros expert to see an increase in freelancer and employee training?
The skills that businesses say make freelancers effective
Source: “The Gig Economy Study” by Future Workplace & Field Nation, April 2016

20. Improve your candidate experience
2. The Blended Workforce
Flexible “teaming” is critical to meeting market demands, lowering costs and spreading the workload.
Improve your candidate experience
Onboard freelancers so they feel comfortable
Encourage teamwork between all types of employees
Use new recruiting tools to find on-demand talent
Leverage technology for collaboration
Create a feedback loop

21. 3. Continuous Performance Reviews
Companies continue to drop their annual performance reviews.
Source: “Global Workforce Leadership” by Future Workplace & Saba, March 2015

22. 3. Continuous Performance Reviews
One-fourth of employees feel that annual reviews don’t improve their performance.
66%
Source: “Gen & Millennials Collide” by Future Workplace & Randstad, September 2016

23. 3. Continuous Performance Reviews
Regular Feedback
Problem
Their teams were frustrated by their tediuous annual performance review process.
Solution
Replaced their annual performance review with “Check-in’s”, where expectations are set annually but feedback is given regularly.
Results
They’ve had a 2% decrease in voluntary turnover globally.

24. 3. Continuous Performance Reviews
Regular Feedback
Problem
They realized that their standard annual performance review was ineffective, unproductivity and created dissatisfaction.
Solution
They dropped the review for “Touchpoints”, where managers set or update priorities based on customer needs.
Results
They saw a 5X increase in productivity in the past year.

25. 4. Millennials Meet Gen Z @ Work
Gen Z in now in the workplace and Millennials are becoming managers.
Bureau of Labor Statistics, Business and Professional Women’s Foundation

26. 4. Millennials Meet Gen Z @ Work
Millennials rise up to management roles
>1%
>1%
Source: “The Multi-Generational Leadership Study” by Future Workplace & Beyond.com, November 2015

27. 4. Millennials Meet Gen Z @ Work
The Basics
Gen Z
Millennials
Additional names
Generation M, net generation, internet generation
Millennials, echo boomers, generation next
Born
Size
23 million
80 million

28. 4. Millennials Meet Gen Z @ Work
The Similarities
Gen Z & Millennials
Top leadership quality
Communication
Top employee benefit
Work flexibility
Top reward / incentive
Cash rewards
Top social network
Facebook
Most desirable industry
Technology
Source: “Gen & Millennials Collide” by Future Workplace & Randstad, September 2016

29. 4. Millennials Meet Gen Z @ Work
The Differences
Gen Z
Millennials
Leadership aspiration
Slightly higher aspirations
High aspirations
Measuring success
Promotions
Respect from colleagues
Loyalty
More loyal
Less loyal
Manager feedback
Regularly
Weekly
Training vehicle
Project-based work
Corporate sponsored class
Source: “Gen & Millennials Collide” by Future Workplace & Randstad, September 2016

30. 4. Millennials Meet Gen Z @ Work
Workplace behavior comparison
Gen Z
Millennials
2014
2016
Work preference
Office (28%)
Office (41%)
Office (45%)
Office (42%)
Career influences
Parents (47%)
Parents (30%)
Parents (27%)
Parents (23%)
Source: “Gen & Millennials Collide” by Future Workplace & Randstad, September 2016

31. 5. Augmented & Virtual Reality
45% of job seekers use their mobile device to search for jobs at least once a day.
Pokemon GO
Personal application
Nokia JobLens
HR application
Source: Glassdoor

32. 5. Augmented & Virtual Reality
Source: “Gen & Millennials Collide” by Future Workplace & Randstad, September 2016

33. 5. Augmented & Virtual Reality
66% of the global population would be willing to use AR/VR products in their professional lives.
VR workplace applications
Training
More engaging and efficient
Lower cost
Recruiting
Candidates can visit your office remotely
Online job fairs more interactive
Immersive problem-solving games

34. 5. Augmented & Virtual Reality
General Mills Virtual Office Tours
Lincoln Electric Career Fairs
GE Career Fairs
The British Army Recruiting

35. 6. The War For Talent More competition for talent expected
90% of recruiters agree
The continous job search
Employees expect to work for 6+ employers
60% of employees think job hopping is important
76% of workers are looking or open to a new job
Younger generations most likely to leave
33% say they are in a “committed partnership” with their employer
Source: Mercer, Execu-Search, Economic Times, CareerBuilder

36. Yesterday and today The future
6. The War For Talent
Company culture is your competitive advantage!
Yesterday and today The future
Recruit
Retain
Boomerang

37. 7. Team Over Individual Performance
Companies are shifting their structures from traditional hierarchies to flexible teams.
Source: Deloitte

38. 7. Team Over Individual Performance
About 3 out of every 4 Gen Z and Millennial workers say they are prepared to work in a team.
Ability and flexibility
Customer focus
Demand from younger generations
Scale to solve bigger problems
Diversity of global teams
Pressure to innovate
Source: Deloitte

39. 7. Team Over Individual Performance
Teaming
Problem
Employees pointed out that their old performance management system was ineffective.
Solution
“Team Space”, a tool designed to service teams and team leaders by providing them information on their strengths.
Results
8,000 employees are using it scaling to all 70,000 by the end of the year.

40. 8. Workplace Wellness & Well-Being
1 out of 3 employees wants to work at a company that has a wellness program
Source: “Gen & Millennials Collide” by Future Workplace & Randstad, September 2016

41. 8. Workplace Wellness & Well-Being
Health-related employee benefits have increased by 58% and wellness by 45% over last year.
Lowering health care costs
Reducing absenteeism
Higher employee productivity
Reducing workers' health costs
Reducing injuries
Improving employee loyalty
Source: SHRM

42. 8. Workplace Wellness & Well-Being
Example: The Institute for Integrative Nutrition
Professional chef prepares healthy organic lunch for staff daily
Fresh flowers are on everyone’s desks
Bi-weekly chair massages
In-house yoga classes and retreats

43. 9. Employee Benefits & Perks
Why do they matter?
Job seekers are spending more time researching companies
Telecommuting on the rise
Competition for top talent
What do you offer?
Compensation is KING STILL!
Customize your packages for your employees by surveying them
33% of companies will increase their employee benefit offerings

44. 9. Employee Benefits & Perks
Source: “Gen & Millennials Collide” by Future Workplace & Randstad, September 2016

45. 9. Employee Benefits & Perks
New perks shaping the corporate world
College Achievement Plan
Provides concert and movie tickets, car rentals and gym memberships
AnyPerk
Provides concert and movie tickets, car rentals and gym memberships
“Step Ahead”
An annual $2,000 contribution to help payback student loans

46. 10. Office Attire Becomes Casual
Why is this trend occuring?
Remote working
~1/3rd of American employees work from home
1/3rd of companies allow for casual dress daily
Gen Z/Millennials
Don’t want to wear suits
Don’t want to buy from someone in a suit

47. 10. Office Attire Becomes Casual
50%
Source: OfficeTeam

48. Presentation Summary forbes.com/sites/danschawbel
The Future of Work
Hours won’t be confined to 9-5
Companies will be decentralized
We will all be freelancers
Career paths will be defined earlier
Everything will be measured
Presentation Summary forbes.com/sites/danschawbel

49. Thank You!