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Deloitte identifies 8 human capital trends to transform HR and business in 2012

Deloitte: HR boosting capabilities in 3 growth areas in 2012: emerging markets, mergers and acquisitions and innovation


28 March 2012 — Converging transformative technologies, such as cloud services, social media, mobile and analytics, are driving many companies to advance their human resource (HR) capabilities and enhance performance in 2012, according to a Deloitte report.

Leap Ahead,’Deloitte’s second annual Human Capital Trends report, which identifies the top trends most likely to have an impact on businesses in the coming year and beyond, finds that strategically integrating social media and mobile devices into a company is now a necessity.  

"There is now a sense of urgency for HR organizations to act immediately to help improve performance and drive growth,” said Ghassan Turqieh, Human Capital consulting partner, Deloitte Middle East. “The confluence of transformative technologies requires HR organizations to step up and help build the capabilities needed to effectively harness their power. This report outlines the opportunity for HR to make bold moves, while considering enterprise risk.”

The Deloitte report also finds that while different economies around the world are growing and recovering at different speeds, with mature markets facing flat or uneven demand; the Middle East region and other emerging markets are widely recognized as the primary engines for future growth.

In addition, the report indicates that there is a growing global trend for companies to adopt new operating models, driven by the rapid rise of emerging and developing economies and by continuing pressure to reduce costs.  The move towards a globally integrated operating model is likely to be the most significant transformation a company will face – and HR has the most important role to play in this transformation.

The Deloitte Human Capital report ‘Leap Ahead’ also examines the broad impact of the eight human capital trends that will reshape both HR in the business – and the business of HR – over the next 18 to 24 months. The findings in the report include:

  1. Social media and mobile technology at work: Social media and mobile devices are raising the bar on HR service delivery. For most HR organizations, developing and implementing a strategy for mobile devices and social media is no longer a luxury. It is a necessity.
  2. Clouds in the forecast: Cloud services are changing the way businesses operate and HR has a key role in helping organizations adapt. By taking a lead role on cloud, HR is easing the transition and helping organizations acquire and develop the cloud-savvy talent needed to capitalize on the full potential of cloud services.
  3. Seeing around corners: Many leading companies are using workforce reporting and analytics to make better-informed decisions about their human capital. By capitalizing on the latest analytical tools and techniques, they are improving acquisition, retention and rewards; reducing labor costs; improving productivity and employee effectiveness; and managing risk more effectively.
  4. In 2012 growth is job No. 1: Growth is the top priority for CEOs in 2012. Respectively, HR is boosting its capabilities in three key areas: emerging markets, mergers and acquisitions and innovation.
  5. Operation globalization: Many companies are shifting to globally integrated operating models with the home country serving as just one of many markets.
  6. Fast-track to the top: HR organizations are challenged to develop the next generation of leaders to drive future growth. As they get clarity about what “high potential” and “high performance” really means – based on science not anecdotes – they are beginning to invest in an integrated set of data-driven activities to accelerate the development of their most promising leadership talent.
  7. People risk is risky business: In a world of black swans or low-probability events that have far-reaching impacts and growing uncertainty, such as the recent Arab Spring in the Middle East, HR’s role in managing enterprise risk is expanding. To help navigate this increasingly uncertain environment, many leading organizations are expanding the role that HR leaders play in managing risk across the enterprise.
  8. Stay in front with an effective sales force: A multi-channel environment is creating the need for a different kind of sales force. Achieving the winning sales force of the future will require HR leaders who understand front-line sales issues, the customer experience and the particular DNA of tomorrow’s sales force.

“In 2012, HR organizations and businesses will require a combination of human capital investments to drive breakthrough performance,” said Rana Ghandour Salhab, Regional Talent & Communications Partner, Deloitte Middle East. “By focusing on the trends that matter most to their enterprise, HR organizations will be doing exactly what their business leaders expect – creating more value,” she added.

‘Leap Ahead’ is Deloitte’s second annual Human Capital Trends report, which assesses the top developments that will impact businesses in the coming year. To access the full report, visit ‘Leap Ahead’.



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