Bersin by Deloitte Predicts Global Talent Challenges in the Face of Business Expansion Will Drive HR, Talent and Learning Needs

OAKLAND, California, Jan. 8, 2013 – Bersin by Deloitte, a leading provider of research-based membership programs in human resources (HR), talent and learning, today announced new research that predicts that as businesses around the world expand in 2013, they will face a growing shortage of talent and leadership. This will drive an accelerated need for business agility, career development and talent mobility programs, leadership development and re-engagement of the workforce.

Bersin by Deloitte delivers its outlook in Predictions for 2013: Corporate Talent, Leadership and HR—Nexus of Global Forces Drives New Models for Talent. Available now to Bersin WhatWorks® members and on a complimentary basis to non-members, this new report provides an annual review of the key business, training and talent management trends for business and HR leaders to consider in strategic planning and budgeting for the coming year.

The report points out that while compliance and core HR programs continue to be business-critical, they often do not add enough value in today’s global business environment. Chief HR officers (CHROs) and their teams who have found a way to automate, streamline and outsource such “non-strategic” parts of their operations and focus on more strategic initiatives will likely outperform their peers.

“Our research shows nearly every major business is challenged with shifting talent and business towards emerging markets, while grappling with talent shortages globally – all while improving the engagement, retention and development of their workforces,” said Josh Bersin, principal and founder, Bersin by Deloitte. “In this environment, high-performing CHROs will provide a laser-like focus on high-value areas that empower and foster teamwork. For example, programs that support business agility and innovation, continuous learning, new models of leadership and management and workforce planning and intelligence.”

Adding to this shift, the HR technology industry continues to undergo significant changes. Cloud-based HR systems, now available from many of the largest vendors in the market, integrate payroll, human resource management systems (HRMS), talent management and analytics processing into a single service. Global spending on these complex systems is anticipated to grow 22 percent to nearly $4 billion in 2012-2013 – almost double the growth rate of 12 percent in 2011-2012. In 2013, technology innovation is anticipated to accelerate as mobile tools and social recruiting systems make obsolete many of the HR systems in place. New tools will empower employees to find experts, share information, manage their careers and become more interlinked than ever.

The 2013 report includes 15 predictions that highlight many of the sweeping changes underway in the economy and the workplace as they relate to three broad areas: business leadership and talent; HR technology, tools and markets; and HR organizations, strategy and leadership. Among the predictions:

• Business agility, globalization and flatter organizations will likely force changes of many traditional HR practices. As companies grow more agile and team-driven, organizations should have performance management, recognition, employee development and leadership strategies that focus on empowering teams, not just standardizing processes. Our research shows that companies that revisit employee performance goals quarterly drive more than 30 percent more productivity than those that set goals annually. The old-fashioned HR concepts of an annual review, an annual talent cycles and top-down-driven leadership and training should be replaced. They take place in a more systemic way in which managers at all levels are involved and they take place more often. Continuous HR practices define the more agile model for HR.
• “Continuous Learning” and “Capability Development” will likely replace the buzz around “Informal Learning.” Our new High-Impact Learning Organization Framework® shows organizations have moved from “talent-driven learning” to a focus on “continuous capability development.” Driven by these changes, the L&D market grew 12 percent last year, the highest growth rate in more than eight years. The buzzword of “informal learning” is giving way to a whole architecture of L&D programs that are social, mobile, continuous and highly integrated with talent management strategies. We also see the emergence of “audience analysis” as an important part of creating L&D programs that precisely target learner’s needs, similar to the “pinpoint marketing” ideas developed a decade ago.
• Talent mobility and career development become important to the achievement of goals. Companies seeking specialized skills in today’s tight labor market may find the answer is to create a vibrant career development and talent mobility program that builds talent internally. For example, an effective technology company now has a dynamic career model that lets employees change jobs after only a year in their current position. It believes that this practice tremendously improves its employee retention and creates a highly integrated culture. In fact, our research shows that companies with leading development planning and career models generate twice the revenue per employee than their competitors.
• Global leadership and bench strength now a top priority. High unemployment in many developed countries coupled with a shortage of new and critical business skills is creating a tremendous demand for training, talent mobility and leadership development. Our research shows that today’s organizations need leaders who practice hands-on leadership, are specialized in their skills, are able to change and adapt quickly and are highly sensitive to diversity. In 2013, as the economy grows, it will likely be very important for many organizations to build an age and diversity focus within its talent management strategy and to put in place career development programs that attract young people.
• Analytics, Big Data and workforce planning will likely become a major focus for many large HR teams. We have entered an economy in which talent is considered a critical and scarce commodity. Companies should get smarter about every talent decision. To do so, they will likely increasingly make decisions about people based on data. Many large companies now have scientific models that predict the engagement of their employees.

These data-driven systems help line managers decide who to hire, how to manage for optimal performance and what recognition programs may incent high performance. Our research shows that only six percent of HR teams feel “expert” in talent analytics today and we can expect this number to rise dramatically in 2013.

To download a complimentary copy of the report, visit Predictions for 2013: Corporate Talent, Leadership and HR—Nexus of Global Forces Drives New Models for Talent

To register to join Josh Bersin as he shares his strategic HR, talent and learning outlook for 2013 through a webinar at 1:00 p.m. ET/18:00 GMT on February 26, please click here: “2013 Predictions for Corporate Talent, Leadership and HR: A New HR Emerges from the Global Recession”

Those interested in learning more about Bersin by Deloitte or its WhatWorks® membership may email info@bersin.com or call (510) 251-4400.

About Bersin by Deloitte
Bersin by Deloitte delivers research-based people strategies designed to help leaders and their organizations in their efforts to deliver exceptional business performance. Our WhatWorks® membership gives Fortune 1000 and Global 2000 HR professionals the information and tools they need to design and implement leading practice solutions, benchmark against others, develop their staff and select and implement systems. A piece of Bersin by Deloitte research is downloaded on average approximately every minute during the business day. More than 5,000 organizations worldwide use our research and consulting to guide their HR, talent and learning strategies. For more information, please visit www.deloitte.com/bersin or http://www.bersin.com.

As used in this document, "Deloitte" means Deloitte Consulting LLP, a subsidiary of Deloitte LLP. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.