Shrm future-hr-2022-final
- 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 2012 2 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 2012 3 Key Findings (continued)
- 4. Challenges Facing HR Over the Next 10 Years ©SHRM 2012 4 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 2012 5 59% 52% 36% 34% 33% 20% 15% 13% 11% 6% 51% 29% 44% 21% 41% 17% 33% 12% 24% 1% Retaining and rewarding the best employees Developing the next generation of corporate leaders Creating a corporate culture that attracts the best employees to our organization Remaining competitive in the talent marketplace Finding employees with the increasingly specialized skills we need Creating smooth and efficient HR processes that ensure a good employee experience Finding the right employees in the right markets where we do business around the world Creating an employee-centric, service-oriented HR organization Breaking down cultural barriers that make it difficult to create a truly global company Other 2012 (n = 483) 2010 (n = 465) 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 2012 7 43% 22% 19% 14% 3% 47% 29% 11% 12% 2% Obtaining human capital and optimizing human capital investments Obtaining financial capital and optimizing financial capital investments Obtaining technology and optimizing technological capital investments Obtaining intellectual capital and optimizing intellectual capital investments Obtaining physical capital and optimizing physical capital investments 2012 (n = 484) 2010 (n = 449) Note: Percentages do not total 100% due to rounding.
- 8. Challenges Facing HR Over the Next 10 Years ©SHRM 2012 8 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 2012 9 40% 37% 26% 26% 24% 24% 17% 17% 15% 14% 13% 11% 11% 7% 58% 47% 23% 29% 40% 21% 11% 15% 13% 14% 11% 4% Providing flexible work arrangements Promoting a culture of trust, open communication and fairness Providing employees with opportunities for career advancement* Offering a higher total rewards package than competitors Demonstrating a commitment to employee development Providing meaningful work with clear purpose in meeting organization's objectives Creating a stimulating and attractive organizational culture Having latest tools/technology to maximize work efficiency and effectiveness Encouraging employees to make decisions and to take risks Providing employees with recognition based on job performance* Developing human capital managers at all levels of the organization Providing employees with better opportunities to use skills and abilities Creating a highly inclusive culture that uses diverse perspectives Being committed to corporate social responsibility and sustainability 2012 (n = 486) 2010 (n = 449) 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. Challenges Facing HR Over the Next 10 Years ©SHRM 2012 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 2012 12 69% 16% 15% 48% 37% 15% Larger workforce Smaller workforce No change 2012 (n = 442) 2010 (n = 470) 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? 13Note: 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 2012 14 54% 29% 17% 22% 65% 13% No change Growing proportion of contract/temporary employees Growing proportion of full-time employees 2012 (n = 424) 2010 (n = 448) 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 2012 16 47% 27% 26% 19% 30% 50% Growing proportion of full-time employees No change Growing proportion of part-time employees 2012 (n = 434) 2010 (n = 447) 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 2012 18 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 2012 19 42% 40% 37% 35% 30% 26% 25% 21% 17% Business Acumen Organizational Leadership and Navigation Relationship Management Communication Critical Evaluation HR Technical Expertise and Practice Consultation Ethical Practice Global and Cultural Effectiveness 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? 21Note: 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 2012 22 45% 41% 41% 28% 25% 18% 17% 17% 16% 14% 11% 6% 1% HR and Organizational Metrics/Analytics/Business Indicators Knowledge of Business Operations/Logistics Strategic Agility Business Knowledge Knowledge of Government and Regulatory Guidelines Knowledge of Finance and Accounting Economic Awareness Knowledge of Labor Markets Knowledge of Technology Systems Thinking Effective Administration Knowledge of Sales and Marketing Other 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 2012 24 Note: 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 6.9
- 25. Challenges Facing HR Over the Next 10 Years ©SHRM 2012 25 Organization Demographics
- 26. Demographics: Organization Industry Challenges Facing HR Over the Next 10 Years ©SHRM 2012 26 Note: 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%
- 27. Demographics: Organization Industry (continued) Challenges Facing HR Over the Next 10 Years ©SHRM 2012 27 Note: 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%
- 28. Demographics: Organization Sector Challenges Facing HR Over the Next 10 Years ©SHRM 2012 28 47% 25% 18% 7% 3% Privately owned for-profit Nonprofit Publicly owned for-profit Government Other n = 462
- 29. Demographics: Organization Staff Size Challenges Facing HR Over the Next 10 Years ©SHRM 2012 29 21% 30% 19% 20% 10% 1 to 99 employees 100 to 499 employees 500 to 2,499 employees 2,500 to 24,999 employees 25,000 or more employees n = 454
- 30. Other Demographics Challenges Facing HR Over the Next 10 Years ©SHRM 2012 30 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 (companywide) 71% Business unit/division 17% Facility/location 12% 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, 2012 • 2010 survey fielded August 10 to August 23, 2010 Challenges Facing HR Over the Next 10 Years ©SHRM 2012 31 Challenges Facing HR Over the Next 10 Years Survey Methodology
- 32. • For more survey/poll findings, visit www.shrm.org/surveys • For more information about SHRM’s Customized Research Services, visit www.shrm.org/customizedresearch • Follow us on Twitter @SHRM_Research Challenges Facing HR Over the Next 10 Years ©SHRM 2012 32 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