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Originally posted on www.lukemarson.com, but a relevant topic for SCN readers.

2014 is around the corner and I’ve begun to think about how HR organizations can move forward and enhance their relevance in the coming 12 months. So without further ado…

1. HR organizations will adopt HR and Talent analytics

There has been a lot of talk about Big Data and analytics, but for all the talk HR is still behind other areas of the business when it comes to analytics. While HR is big on reporting, it’s time for HR to take a step forward and look at how they can leverage analytics for the better insight into their organization that will help them make better-informed decisions and increase operational efficiency. Being able to measure and predict if your Talent Management programs are working will be critical to their long-term success. For example, being to identify if learning and development initiatives are paying off with increased performance, whether you are promoting enough internally, and whether the quality of your external hires are sufficient will pay dividends as you look to grow your organization. And with predictive analytics capabilities more widely available with a variety of vendors, now is the perfect time to take the leap into analytics.

2. Core HR and Talent Management processes will become one big set of holistic HCM processes

Talent Management practices are – in HCM terms – rather new, and as a result new Talent Management processes have been “bolted” onto existing core HR processes. The same can be said about Talent Management software. But with a new generation of SaaS HCM suites, these processes are becoming less separated and can be supported in a more holistic approach. Shouldn’t your hiring for a newly created position be tied into your succession planning, or its requirements be based on how you are training and compensating your workforce? Now is a great time to re-invent the HR wheel and incorporate the Talent Management spokes to cover all areas along the HCM road. Out with the old and in with the new is a cliché, but a relevant one.

3. HR will innovate its practices and processes to increase employee engagement and retention

I recently read this superb article entitled How Netflix Reinvented HR on Harvard Business Review, in which Patty McCord, the former Chief Talent Officer at Netflix, explains the HR practices that they introduced at Netflix to improve employee engagement and retention. This got me thinking about how HR can innovate its practices and move away from the traditional compliance and governance related methods of doing things to more innovative, 21st century practices such as unlimited vacation policies, listening to innovation and ideas, rewarding outstanding performance and behavior, pay severance pay to fire under-performers or employees with outdated skills, and management by achievements and not by sight. Many organizations like to reward tenure and effort, or suppress ideas by employees because they are not senior management or because they challenge an organization to be better – but these aren’t going to keep your best employees in the long-term. Take action now or be prepared for your best employees to move to your competitors. Star performers cannot be easily replaced and you’ll miss them when they’re gone.

4. Social collaboration will become enterprise-wide

Companies always want their employees to collaborate, but how does this work when employee are across different teams, departments, companies, or geographical locations? How does employee A know that employee B needs something if they don’t work together on a daily basis? Well social collaboration is the answer. And companies need to look at how they can leverage social collaboration to provide a platform for knowledge sharing and efficiency within their organization – particularly large organizations with teams spread out across regions, countries, and continents. I use social collaboration software regularly and when implemented correctly (not just deployed, but managing change within an organization) it provides tangible benefits.

5. HR will move its core HRIS operations to the Cloud to become 21st century HR organizations

Is it really possible to be a modern, efficient, 21st century HR organization if you are using software designed and built 25 years ago? How can you be global when your HRIS was built to accommodate a pre-globalized world? Amazingly, there are tens of thousands of organizations that are using exactly those type of systems right now. So now it’s time for HR to get with the program and dispose of their outdated HRIS and move to a modern designed system that can not only support how they do HCM now, but also build for how they will do HCM in the future. As I referenced in point 2, older systems bolted Talent Management functionality onto their existing systems. Modern SaaS-based HRIS systems have built Talent Management capabilities in as part of their foundational system design. This is what will help give your organization a competitive advantage. Your old and “unique” business processes are what will not.

Summary

As we head into the new year I wish you all a very healthy and successful 2014. There are a lot of reasons to look at changing the way you did things in 2013 and before, so use this time to help move your business into the 21st century.

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2 Comments

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  1. Jimson Michael

    Hi Luke,

    A very big thank u for providing very informative blogs on all HCM topics!!!!!!

    Also as part of wish whether we can expect payroll also to be part of Cloud without On premise system because i have read like its has become more clear that Hybrid solutions can be a bottle neck because of integration issues with SAP PI licensing etc…..

    Also wishing u a very Informative New Year 2014!!!!!!!!!!!!!!!!

    Thanks & Regards

    JIm

    (0) 

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