Is DEI Going to Die in 2024?Josh Bersin 的文章讨论了 2024 年多元化、公平与包容（DEI）项目所面临的重大挑战和批评，特别强调了 "反觉醒 "评论家的攻击和克劳迪娜-盖伊（Claudine Gay）从哈佛辞职的事件。报告探讨了多元包容计划在当前的文化战争中扮演的角色、人们对它的看法以及法律挑战对多元包容计划招聘和投资的影响。尽管存在这些挑战，贝尔辛还是强调了发展型企业的实际商业利益，展示了成功的战略以及将发展型企业融入业务而不仅仅是人力资源的重要性。他认为，应将重点转向在所有业务部门嵌入包容、公平薪酬和开放讨论的原则，并指出，未来的企业发展指数至关重要，但需要适应和领导层的承诺才能茁壮成长。
Is DEI Going to Die in 2024? By Josh Bersin
For anyone working in Diversity, Equity, and Inclusion (DEI), it is safe to say that it has been a tough start to 2024. For a while now, there has been a concerted attack on DEI programs, with ‘anti-woke’ commentators and public figures querying their value, worth, and even existence.
Those attacks increased enormously in 2024 with the resignation of Claudine Gay from Harvard. While the call to resign was supposedly related to plagiarism, one can’t help but feel that her position as a leading DEI advocate also fuelled the demand.
It means that DEI has come under increased and sustained fire, and despite the many benefits provided by a good DEO program – to both employer and employee – there is a feeling that 2024 could be the year that DEI fades away. How likely is this to happen, and what would the impact be if it did?
DEI and the culture wars
Anyone living and working in the US (or most other countries worldwide) over the past few years will have likely heard of the culture wars. Brought on by declining trust in institutions, growing inequalities, and the proliferation of technology, the culture wars involve opposing social groups seeking to impose their ideologies.
All manner of things has been caught up in this, from what’s on the curriculum at schools to taking a knee at sporting events and from definitions of what constitutes a woman to allegations of tokenism in the workplace. DEI has played an unwitting but central part in the culture wars.
There’s a perception that DEI programs are ‘woke’ and prioritize ethnicity and gender over achievement and ability. In August of 2023, an attorney filed (and won) a lawsuit against a VC firm that gives grants to black entrepreneurs. Similar suits have been filed against firms with diversity hiring programs, scholarships, and internships.
The resignation of Claudine Gay has reinvigorated the commentary around DEI programs. Josh Hammer, a conservative talk show host and writer, wrote on the social media platform X that taking down Dr. Gay was a “huge scalp” in the “fight for civilizational sanity. ” It was described as “a crushing loss to DEI, wokeism, antisemitism & university elitism,” by conservative commentator Liz Wheeler, and the “beginning of the end for DEI in America’s institutions,” by the conservative activist Christopher Rufo, who had helped publicize the plagiarism allegations against Claudine Gay.
When something is as consistently criticized and devalued as DEI programs have been, a toll is inevitably taken. That is certainly indicated by the latest hiring data for DEI professionals. According to data from labor market analytics company Lightcast, hiring for DEI positions in the US is down by 48% year over year, in the middle of an economic boom. Clearly, DEI investments are under attack.
And when you look at companies doing layoffs, DEI jobs are frequently high on the list of jobs to cut. I even heard a recent podcast with four well-known venture capitalists – three agreed that “doing away with DEI programs” was top on their list.
The value of DEI
Given this criticism of DEI programs, one could be forgiven for thinking such programs carry no value to HR and the wider business. Yet many companies invest in DEI programs, and the value is high in almost every case I come across.
Our Elevating Equity research in 2022 and 2023 found companies focus on diversity and inclusion for very pragmatic reasons, including:
An inclusive hiring strategy broadens and deepens the recruiting pool.
An inclusive leadership strategy drives a deeper leadership pipeline.
An inclusive management approach helps attract diverse customers and markets.
An inclusive board drives growth and market leadership. (proven statistically)
An inclusive supply chain program improves sustainability of the supply chain.
An inclusive culture creates growth, retention, and engagement in the employee base.
Organizations are not prioritizing DEI programs because they are woken or as a box-ticking exercise. They do so because DEI provides real and tangible business benefits. Workday, one of the most admired HR technology companies in the market, has pioneered DEI internally and through its products, and the company has outgrown and outperformed its competitors for years. Their product VIBE, an analytics system designed for this purpose, shows intersectionality, and helps companies set targets and find inequities in leadership, hiring, pay, and career development.
But some law firms have posited that these types of programs are illegal – is there a case to answer?
DEI legality
In response, it’s important to consider the massive and complex pay equity problem. Until the last few years, most companies had no problem paying people in very idiosyncratic ways. The Josh Bersin Company looked at leadership, succession, and pay programs worldwide last year and found that there are massive variations in pay with no clear statistical correlation in most larger companies.
This problem is called “pay equity,” and when you look at pay vs. gender, age, race, nationality, and other non-performance factors, most companies find problems. Is this a “DEI” program?
When we looked at pay equity in detail last year, we found that only 5% of companies have embarked on a strategic equity analysis. While most companies do their best to keep pay consistent with performance, these studies always find problems. Would it be considered illegal to analyze pay by race or nationality and then fix the disparities?
The future of DEI
DEI is undoubtedly a complex issue, and many organizations will be uncertain about the best course of action. Despite the current wave of criticism, there has been vast investment in DEI strategy over recent years, and business leaders are highly unlikely to let that fade away.
Despite the anti-woke movement, political debates, and the inability of Harvard, Penn, and other universities to speak clearly on these topics, businesses will not stop. Affirmative Action was not created to discriminate; it was designed to reduce discrimination. At the University of California, where Affirmative Action was halted in 1995, studies found that earnings among African American STEM graduates decreased significantly. So, one could argue that they were making a real difference.
DEI will not die – it is far too important for that to happen. However, it’s time to do away with the “DEI police” in HR and focus on embedding the principles of inclusion, fair pay, and open-minded discussions across all business units. Senior leaders must take ownership of this issue.
In the early 2000s, companies hired Chief Digital Officers to drive digital technology implementation, ideas, and strategies. As digital tools became commonplace, the role went away. We may be entering a period where the Chief Diversity Officer has a new role: putting the company on a track to embrace inclusion and diversity in every business area and spending less time pushing the agenda from a central group.
In every interview we conduct on this topic, we see overwhelming positive stories from various DEI strategies. Each successful company frames DEI as a business rather than an HR strategy. While HR-centric DEI investments are shrinking, it’s more like them migrating into the business where they belong.
中文翻译如下，仅供参考：
2024年，多样性、公平与包容（DEI）将走向消亡吗？作者：Josh Bersin
对于那些致力于多样性、公平与包容（DEI）领域的人士来说，2024年的开端无疑充满挑战。近期，DEI项目遭到了前所未有的集中攻击，包括一些“反觉醒”评论员和公众人物对其价值、意义乃至存在的质疑。
特别是随着Claudine Gay从哈佛大学的辞职，这种攻击愈发激烈。尽管她的辞职表面上与剽窃事件有关，但不难察觉，她作为DEI领域的领军人物，这一身份似乎也是辞职呼声高涨的一个重要因素。
这意味着，DEI正面临着前所未有的挑战。尽管高效的DEI项目能够为雇主和雇员带来众多益处，但人们仍担忧2024年可能成为DEI逐渐淡出视野的一年。这种情况发生的可能性有多大？如果真的发生，又会产生何种影响？
DEI与文化战争
近年来，无论是在美国还是全球其他大多数国家，你可能都会听说过“文化战争”。这场战争源于对机构的信任下降、不平等现象的加剧以及技术的广泛传播，涉及到试图强加自己意识形态的社会对立群体。
从学校课程内容、体育赛事中的下跪行为，到对“女性”定义的争议、以及工作场所中的代表性指控等，无一不被卷入这场文化战争。而DEI，在这场战争中虽不愿意却占据了核心位置。
人们普遍认为DEI项目倾向于“觉醒”，过分强调种族和性别因素，而忽视了成就和能力。2023年8月，一位律师成功对一家支持黑人创业者的风险投资公司提起诉讼。类似的诉讼也针对那些实施多样性招聘、奖学金和实习计划的公司提起。
Claudine Gay的辞职再次引发了对DEI项目的广泛讨论。保守派脱口秀主持人和作家Josh Hammer在社交媒体平台X上表示，击败Gay博士是“为文明理智而战的一大胜利”。保守派评论员Liz Wheeler称之为“对DEI、觉醒主义、反犹太主义及大学精英主义的沉重打击”，而保守派活动家Christopher Rufo则称这是“DEI在美国机构中走向终结的开始”。
如此一致的批评和贬低无疑对DEI项目造成了重创。根据劳动力市场分析公司Lightcast的数据显示，尽管经济蓬勃发展，但美国DEI相关职位的招聘量同比下降了48%。显然，DEI正面临严峻挑战。
当提到公司裁员时，DEI相关职位往往是裁减名单上的重点。我最近听到一个播客，四位知名风险投资家中有三位认为“取消DEI项目”是他们的首要任务。
DEI的价值
面对如此批评，人们或许会误以为DEI项目对人力资源和更广泛的商业活动没有任何价值。然而，实际上，许多公司对DEI项目的投资极具价值，几乎每个案例都能证明这一点。
我们在2022年和2023年的《提升公平研究》中发现，公司出于实际原因关注多样性和包容性，这包括：
包容性招聘策略扩大了招聘范围。
包容性领导力策略深化了领导力储备。
包容性管理方式吸引了多元化的客户和市场。
包容性董事会推动了市场增长和领导地位（这一点已通过统计数据得到证明）。
包容性供应链项目提升了供应链的可持续性。
包容性文化促进了员工的增长、留存和参与。
组织之所以优先考虑DEI项目，并非仅仅因为“觉醒”，或者作为勾选式行动。他们这样做是因为DEI确实带来了实际和有形的商业利益。例如，Workday这样的HR技术公司在市场上备受尊敬，它不仅在内部推广DEI，在其产品中也体现了这一点，多年来一直超越竞争对手的增长和表现。它们的产品VIBE，一个专门设计的分析系统，展示了交叉性，帮助公司设定目标，找出领导力、招聘、薪酬和职业发展中的不平等。
然而，一些律所提出这类计划可能违法——这是否成立呢？
DEI的合法性
面对这一问题，我们不得不考虑到复杂且广泛的薪酬公平问题。直到最近几年，大多数公司在个性化支付薪酬方面并未遇到太大问题。Josh Bersin Company去年对全球的领导力、继承计划和薪酬计划进行了研究，发现在许多大公司中，薪酬存在巨大差异，且大多没有明显的统计相关性。
这个问题被称作“薪酬公平”。当涉及到性别、年龄、种族、国籍等非绩效因素时，大多数公司都存在问题。那么，分析基于种族或国籍的薪酬差异并加以解决，这会被认为是非法的吗？
DEI的未来
DEI无疑是一个复杂的议题，许多组织对于采取何种措施感到不确定。尽管面临当前的批评浪潮，但近年来对DEI策略的巨大投资表明，商业领袖们不太可能让这一切付诸东流。
尽管存在反觉醒运动、政治辩论，以及哈佛、宾夕法尼亚大学等教育机构在这些议题上的模糊立场，但商界不会因此而停滞不前。平权行动的初衷不是为了歧视，而是为了减少歧视。例如，在加州大学，自从1995年停止实施平权行动以来，研究发现非洲裔美国人STEM专业毕业生的收入显著下降。因此，可以说这些措施确实产生了积极的影响。
DEI不会消亡——它对此太重要了。然而，现在是时候取消人力资源部门中的“DEI警察”，转而专注于在所有业务单元中嵌入包容性、公平薪酬和开放性讨论的原则。高级领导层必须对这一议题负起责任来。
回顾21世纪初，许多公司聘请首席数字官来推动数字技术的实施、创意和战略。随着数字工具成为常态，这一角色逐渐消失。我们可能正处于一个新的时期，首席多样性官的角色也在发生变化：不再是从中心团队推动议程，而是引导公司在每一个业务领域都拥抱包容性和多样性。
通过我们在这个话题上的每次采访，我们都能看到各种DEI策略的积极故事。每个成功的公司都将DEI视为一项业务策略，而非仅仅是人力资源策略。虽然以HR为中心的DEI投资正在减少，但这更像是它们向业务领域的转移，这正是它们应有的归属。
HR Technology
2024年02月23日
HR Technology
2024年的HRTech：GenAI、分析和技能技术In 2024, the field of Human Resources is experiencing a transformative shift with the integration of cutting-edge technologies such as Generative AI (GenAI), advanced analytics, and skills technology. This article by Dave Zielinski, featured on SHRM Online, delves into the evolving landscape of HR, highlighting the significant impact of these technologies on enhancing the employee experience, improving regulatory compliance, and revolutionizing talent management. Industry analysts and thought leaders share insights on the growing importance of GenAI in HR processes, the challenges of maintaining employee experience in cost-cutting scenarios, and the potential of predictive analytics in optimizing workforce planning.
接受SHRM Online采访的人力资源行业分析师、从业者和思想领袖表示，今年，人力资源职能部门将采用生成式人工智能 (GenAI)，投资于提升员工体验的技术，并采用强大的预测分析和技能技术。
人力资源领导者将转向技术，这些技术不仅可以提高法规遵从性，还可以帮助其组织做出更好、更快的人才决策并重新定义工作方式。
有远见的公司将继续投资 EX
一些分析师预测，随着高管将注意力转向降低成本和提高效率，远离包容性、公平和多样性等问题，员工体验 (EX) 将在 2024 年出现“衰退”；灵活的工作安排；和员工心理健康。员工的工作选择将减少，雇主将收回一些影响力。
不过，尽管许多组织可能会在 2024 年减少或冻结 EX 支出，但专家对此类举措的后果提出警告。
JP Gownder 是 Forrester 的副总裁兼首席分析师。他在博文中写道，根据 Forrester 研究，66% 的技术决策者表示，他们将在 2024 年增加对 EX 或人力资源技术的投资，其中许多投资将旨在提高效率，而不是 EX 结果。
但逆流而上的领导者将在 2024 年获得实实在在的好处。
“通过开发成熟的 EX 计划，您的组织可以提高生产力、降低人员流失率并提高创造力，”Gownder 写道。
其他专家认为，足智多谋的人力资源领导者会在预算紧张的情况下找到投资 EX 的方法。
管理咨询公司光辉国际 (Korn Ferry) 首席人力资源官 (CHRO) 业务的高级客户合伙人丹·卡普兰 (Dan Kaplan) 表示：“人力资源部门将被迫在低迷的市场中保持参与度，甚至在成本削减和削减的整个过程中也不例外。” “这将是一场艰难的舞蹈，但最好的人力资源领导者会找到办法做到这一点。”
光辉国际 (Korn Ferry) 专门负责人力资源问题的高级客户合伙人胡安·巴勃罗·冈萨雷斯 (Juan Pablo Gonzalez) 表示，组织对 EX 的承诺在 2024 年不会减弱，但 EX 看起来会非常不同。
“EX 的本质可能会变得更加个性化，同时也会变得不那么个性化，”冈萨雷斯说。“例如，通过使用 Microsoft Office Copilot、Workday 和 Salesforce 等大型软件平台中已有的人工智能功能，雇主和员工已经改变了他们的 EX。正在发生的情况是，员工与技术的互动越来越多地取代了与人的互动，但与技术的互动已经变得更加适合员工的特定需求和情况。”
亚特兰大人力资源咨询公司 IA 的创始人兼管理负责人 Mark Stelzner 表示，虽然由于组织面临控制盈利的挑战，预算将在 2024 年重新分配，但良好的 EX 相关技术投资将继续为公司带来红利。
“我认为投资 EX 实际上会提高效率并降低成本，”Stelzner 说。“到 2024 年，我们可能会看到组织不断转向‘流程主导、技术支持’的理念。端到端流程的优化通常会导致诸如消除现有技术债务以及统一工具和技术等决策，以减少员工的困惑并优化个性化，从而减少集成良好的接触点。”
Gartner 专门研究人力资源技术的副总裁分析师 John Kostoulas 表示，做出更具战略性的采购决策和改善现有技术生态系统的治理是改善 EX 的两个关键。Gartner 最近的研究发现，60% 的人力资源领导者认为他们当前的技术阻碍而不是改善了员工体验。
Nucleus Research 专门负责员工体验的研究经理 Evelyn McMullen 表示，仅仅为了提高效率而不是 EX 结果而设计的技术投资可能被证明是短视的。她指出，改进的 EX 通常会带来更好的绩效并降低与营业额相关的成本。
麦克马伦说：“考虑到劳动力市场和求职者优势的不断波动，减少 EX 预算的风险尤其大。” “当控制权不可避免地回到求职者手中时，保留 EX 投资的组织将能够更好地捕获和留住最优秀的人才。”
GenAI 从实验转向加速采用
到 2024 年，通过更多地采用该技术，人力资源职能将从涉足 GenAI 转向更深的领域。
随着领导者制定更严格的 GenAI 治理计划以及使用该技术的风险开始降低，人力资源和招聘部门将越来越多地使用其 HRIS 平台中已有的 GenAI 工具来编写职位描述和面试指南、创建敬业度调查、开发培训课程、分析数据，并制定政策。
世界大型企业联合会 2023 年底对首席人力资源官的调查发现，61% 的首席人力资源官计划在 2024 年投资人工智能以简化人力资源流程。
分析师 Eser Rizaoglu 表示：“许多人力资源领导者的 GenAI 之旅仍处于起步阶段，但要么通过现有的人力资源技术提供商获得 GenAI 功能，要么到 2024 年中期购买新的 GenAI 工具。” Gartner 的人力资源研究和咨询实践。
Rizaoglu 表示，许多人力资源技术供应商仍在努力弄清楚如何充分利用 GenAI 的功能，同时平衡保护数据、确保有效治理和考虑道德因素的需求。他表示：“在实现这种精细的平衡之前，GenAI 能力在人力资源领域的大规模扩散将面临挑战。”
Stelzner 表示，虽然去年 GenAI 带来了兴奋并刺激了人力资源领域的实验，但“冷酷的现实”是许多组织仍然没有准备好全力投入。
“到 2024 年，GenAI 采用率的任何增长都可能是渐进式的，包括更好地利用聊天机器人、增强员工沟通的个性化、更加关注人才招聘领域的可能性以及系统升级和实施测试的自动化。”他说。
埃森哲进行的研究发现，GenAI 有潜力改变组织 40% 的工作时间。“这并不意味着 40% 的工作岗位将会消失，而是反映了工作方式的转变，”负责该公司人力资源转型和交付实践的埃森哲董事总经理迈克尔·本亚明 (Michael Benyamin) 表示。“技术将取代一些任务，让员工在工作中变得更有生产力、更具创造力和效率。人工智能是人类能力的倍增器。”
随着 GenAI 开始增强或转变更多的工作角色，人力资源和学习领导者将需要创建敏捷的学习计划，以重新培训员工使用快速发展的 GenAI 工具的技能。许多工人几乎没有接受过如何使用该技术的培训。
Salesforce 于 2023 年进行的一项调查发现，62% 的员工表示他们缺乏有效、安全使用 GenAI 的技能。波士顿咨询集团的另一项研究发现，尽管该技术有望从根本上重塑他们的工作方式，但只有 14% 的一线员工接受过与人工智能相关的技能提升。
Benyamin 表示，随着 GenAI 在工作场所变得越来越普遍，人力资源部门必须帮助制定负责任和道德的人工智能使用政策，并制定培训计划来解决偏见、歧视、数据保护和适当数据使用等问题。
更加关注变革管理，提高新人力资源软件的采用率
专家认为，许多人力资源领导者将寻求通过采用变革管理策略来提高 2024 年技术投资的回报，例如确保员工使用新采用的技术解决方案。
人力资源面临的一项持续挑战是管理云技术供应商源源不断的更新和新功能，导致许多人力资源软件即服务 (SaaS) 许可证闲置。位于加利福尼亚州帕洛阿尔托的 SaaS 智能平台 Productiv 于 2023 年进行的一项研究发现，组织中 53% 的 SaaS 许可证总体未使用。
位于阿拉巴马州亨茨维尔的人力资源咨询和研究公司 Lighthouse Research 的首席研究官本·尤班克斯 (Ben Eubanks) 表示，许多组织低估了如何确保员工在新的人力资源平台和应用程序推出后定期使用它们。
“人力资源和人才技术不是‘按下开关就可以开始’类型的解决方案，”尤班克斯说。“但许多雇主仍然这么认为，并低估了采用该技术所需的行为改变。”
重新思考员工敬业度调查
更多的人力资源和执行团队将重新考虑如何创建敬业度调查以及分发调查的频率，以减少“调查疲劳”。
ServiceNow 高级副总裁兼员工工作流程产品总经理 Gretchen Alarcon 表示，随着组织继续努力寻找“秘方”，让员工在 2024 年更频繁地重返办公室，人力资源领导者将需要使用更有意义的方法测量工具。
她说：“组织将利用员工的声音调查和反馈来分析在办公室花费的时间与员工情绪和生产力的关系。” “这将使领导者能够根据数据而不是假设做出决策，这样他们就可以根据员工的需求、行为和提高生产力的因素来调整重返办公室 [RTO] 策略。”
从改进的技能技术中获益
转向基于技能的招聘和晋升策略的人力资源和招聘领导者将受益于技术的发展，例如使用人工智能和机器学习自动创建、组织和更新员工技能数据库的技能本体，从而显着减少体力工作量人力资源部要求。
下一代本体论和其他新兴技能技术可以使人力资源领导者更轻松地识别组织中的技能差距，然后相应地调整招聘或学习和发展计划。虽然市场上没有真正的端到端技能技术解决方案，但许多人力资源领导者正在将人工智能驱动的点解决方案结合在一起，以创建有效的技能数据库和评估工具。
“到 2024 年，随着组织采用技能智能技术，他们将开始认识到，这不是拥有最大的技能数据库，而是一个不断更新的丰富且互联的技能数据库，”Alarcon 说。她补充说，此类数据库使公司能够了解人才缺口是否是由于缺乏合适的人才或缺乏技能造成的，以及他们是否需要为未来培养、购买或借用人才。
预测分析工具变得更加强大
人力资源从业者和分析师认为，人力资源部门将受益于日益强大的预测分析工具，这些工具将改善劳动力规划和数据驱动的决策。
光辉国际 (Korn Ferry) 的冈萨雷斯 (Gonzalez) 表示：“凭借更大的数据集和改进的算法，人力资源部门应该能够采取一些措施，例如缓和过去几年的招聘盛衰周期。” 例如，冈萨雷斯表示，雇主不会雇佣数千名员工，然后在六个月后解雇其中一半，而是能够更好地预测在合理的时间内他们需要的员工数量和类型。他说：“然后他们可以雇用和培养一支更稳定的员工队伍，以造福所有组织利益相关者。”
Stelzner 认为，许多人力资源部门由于没有充分发挥数据分析的潜力而错失了机会。他说，如果未能投资分析人力资源数据所需的工具和技能，可能会导致洞察力缺失，并阻碍人力资源战略与更广泛的业务目标保持一致的能力。
“从历史上看，人力资源部门也一直在努力解决数据的准确性问题，”斯特尔兹纳说。“这会影响该职能部门依靠报告和数据分析来通知和支持其决策的能力。更糟糕的是，企业的其他部门已经接受过培训，预计人力资源系统会提供有问题的数据，因此在数据清理、报告和分析方面还有很多工作要做，以重新获得整个企业的可信度。”
Dave Zielinski 是 Skiwood Communications 的负责人，这是一家位于明尼阿波利斯的商业写作和编辑公司。
作者：Dave Zielinski
HR Technology
2024年01月09日
HR Technology
2023 Recap: A Turbulent Year with Significant M&A Changes in the HR Technology Market
Our annual reporting on M&A in the HR technology space is one of our most popular pieces of content year after year (see our 2022 version here). We look at some of the many announcements that happen over the course of the year, flag some key ones, and identify any big trends that seem to appear across the landscape.
2023 was no different than recent years. It’s a perennial “trend” from the “experts” in the space that “we will see more consolidation.” That statement is about as safe as saying that summer in Texas will be hot this year. Shocker.
What’s most exciting for us at Lighthouse is that many of these companies that are succeeding and shaking up the industry are also winners in the HR Tech Awards program (now accepting 2024 submissions), a clear indication that the judges in our program see significant value in what these firms are bringing to the market for their clients.
If you’re an employer looking for the right technology so support your organization, don’t hesitate to reach out for our insights.
Overall HR Tech M&A Trends and Insights
A considerable amount of consolidation in the services space, which is a bit tangential to this analysis of HR technology but significant for the larger market.
For instance, Arthur Gallagher & Co. acquired Buck in the benefits consulting and administration services space. We’re starting to see some of these benefits companies using their data in creative ways to identify health trends, provide analytics back to employers on their workforce, etc.
WilsonHCG picked up Personify in the recruitment process outsourcing industry. Our 2023 RPO research is some of the most compelling in the world when it comes to RPO buyer insights and behaviors.
Engage PEO acquired Zamp. Relatively small in the bigger scheme of things, but we’re planning some PEO research in 2024 to explore how PEO is evolving so we’re watching the space closely.
Also seeing some interesting crossover as services companies buy technology firms to scale and differentiate their services as well as technology companies buying service providers to reach more clients and bring more data into their solutions. AI-based solutions require a lot of data to train the models, and if it’s structured properly, services companies are sitting on a ton of data that can be a competitive advantage.
In the past month we’ve met with two different companies that started as services firms and built a technology that could take their intellectual property and scale it to more customers via a platform. The challenge with that is that services companies make money when they touch customer accounts and support them, but product/technology companies make money when they don’t have to touch customer accounts. It’s a difficult transition to make.
Let’s take a look at some of the announcements over the last year.
Key 2023 HR Technology Mergers and Acquisitions
Talent Acquisition and Hiring
Radancy, a global leader in recruiting with its Radancy Talent Cloud, acquired Brazen, a hiring event and communication platform and Ascendify, an enterprise-focused recruiting CRM.
Lightcast, a labor market insights company created by the merger of Emsi and Burning Glass, acquired Gazelle, a provider of B2B intelligence.
LiveHire, an HR Tech Award-winning hiring platform, acquired Arrived Workforce Connections to support growth in candidate reach and direct sourcing.
Clovers acquired Talvista to bring two inclusive hiring solutions under one roof.
Fama, an innovator in social media background screening and HR Tech Award-winning company, acquired Social Intelligence.
Spark Hire, a video interviewing solution, acquired Chally, an assessment solution. Video-only screening providers are trailing off in favor of video + assessment solutions that can provide a more full (and unbiased) picture of what candidates are about. Spark Hire also merged with/acquired Comeet, an ATS solution.
Veritone (Pandologic AI-driven programmatic recruiting solution) acquired Broadbean, a legacy recruiting technology provider. Intrigued by the depth and breadth of data this might offer to train the Veritone AI solutions under the hood.
Appcast, a leader in programmatic recruiting technology, acquired Bayard Advertising.
Hirevue acquired Modern Hire, an HR Tech Award-winning provider of video interview and hiring assessment solutions for enterprise employers.
Fountain, a high-volume hiring and onboarding solution, acquired Clevy.
Talent Management and Employee Experience
Engagedly, an HR Tech Award-winning company, acquired theEMPLOYEEapp for enabling client communications with frontline workers.
Neobrain, a global skills insights and intelligence provider, acquired Flashbrand to establish a US presence and bring its popular technology to North America.
Mitratech, an HR Tech Award-winning company and leader in employer compliance solutions, acquired Trakstar (talent acquisition and development) and Circa (DEI and OFCCP compliance).
Simpplr, an internal communication and work hub, acquired Socrates.ai, one of the industry’s most compelling intelligent chatbot solutions for employee experience and navigation, to increase the ease of which employees find, access, and act on information.
Edenred acquired Reward Gateway, a rewards and recognition provider.
Perceptyx acquired Humu, the “intelligent nudges” company made famous by its founder, former Google HR leader Lazlo Bock. Intrigued to see this functionality in the Perceptyx ecosystem.
Peoplelogic, an HR Tech Award-winning firm, picked up Plai to enhance its features across performance management and the overall employee experience.
Core HR/HCM/Compensation
Salary.com, an HR Tech Award-winning company, acquired CompXL to scale its enterprise compensation management functionality across merit increases, bonus allocations, and other rewards.
Paycor, an HR Tech Award-winning SMB HR, payroll, and talent solution, acquired Verb for microlearning support.
ADP, a leader in payroll and HR solutions, acquired Sora, a low-code workflow automation tool.
Deltek, the global leader in payroll and finance solutions for government contractors, acquired Replicon, a workforce management system.
When I Work, an HR Tech Award-winning company for its workforce management solution, acquired Lean Financial to incorporate earned wage access into the solution.
UKG acquired Immedis, a global payroll solution, to enable more seamless payroll in countries around the world.
Learning and Talent Development
This year we’re unveiling our new Learning Tech Awards program to focus more deeply on the sophisticated and robust technologies supporting talent development, employee growth, and skills intelligence across the industry. If you operate in this space, you won’t want to miss it.
Docebo, a leader in the global LMS market, acquired Edugo.ai to increase its AI capabilities.
Go1, a leader in global learning content, acquired Blinkist and Anders Pink.
LMS365 acquired performance management solution Weekly10.
The Bottom Line
In spite of the continuing challenges from an economic perspective, 2024 is poised to have some interesting activity. Election years are always a bit unpredictable, and many new providers are emerging to tackle today’s most pressing talent and workforce challenges. Stay on top of the latest by following our ongoing research and insights across the HR technology market.
Curious what we do at Lighthouse?
We work with employers by providing research and advisory services around 1) the complicated HR technology landscape, 2) the talent trends and practices that matter most to the modern workforce, and 3) executive presentations to internal teams on how the market is changing in their industry or demographic.
We work with solution providers and vendors that want to sell more product and serve more customers. We use a combination of advisory, industry insights, market intelligence, and custom research to support our partners.
HR Tech Awards opens for submissions on January 3rd: learn about benefits of participation
Ben Eubanks
Ben Eubanks is the Chief Research Officer at Lighthouse Research & Advisory. He is an author, speaker, and researcher with a passion for telling stories and making complex topics easy to understand.
His latest book Talent Scarcity answers the question every business leader has asked in recent years: “Where are all the people, and how do we get them back to work?” It shares practical and strategic recruiting and retention ideas and case studies for every employer.
His first book, Artificial Intelligence for HR, is the world’s most-cited resource on AI applications for hiring, development, and employee experience.
Ben has more than 10 years of experience both as an HR/recruiting executive as well as a researcher on workplace topics. His work is practical, relevant, and valued by practitioners from F100 firms to SMB organizations across the globe.
He has spoken to tens of thousands of HR professionals across the globe and enjoys sharing about technology, talent practices, and more. His speaking credits include the SHRM Annual Conference, Seminarium International, PeopleMatters Dubai and India, and over 100 other notable events.
Contact Ben
HR Technology
2024年01月05日
HR Technology
The best HR & People Analytics articles of December 2023
The December edition of my monthly compendium is an opportunity to reflect on the year that has nearly passed and look forward to what lies ahead. 2023 has proved to be another challenging year full of geopolitical tension, economic uncertainty, and climate inaction. For HR and people analytics professionals, it has been a year dominated by generative AI, skills, and the continuing journey of HR from support function to strategic partner.
HR’s elevation to being a strategic partner is the underlying theme of my recently published 12 Opportunities for HR in 2024 article (see FIG 1). If you’d like to contribute suggestions for opportunities 11 and 12, please click here and add your suggestion in the comments.
FIG 1: 12 Opportunities for HR in 2024 (Source: David Green)
Despite managing to catch Covid on the flight home, I thoroughly enjoyed my recent trip to India, at the end of November, where I spoke at the Indeed FutureWorks event in Bangalore. A huge thank you to Aarti Deoskar, Jessie Paul, Rittik Mondal, Rohan Sylvester, and the Indeed team for inviting me.
Looking for a new role in people analytics or HR tech?
Before we get to this month’s collection of resources, I’d like to once again highlight the wonderful resource created by Richard Rosenow and the One Model team of open roles in people analytics and HR technology, which now numbers nearly 500 roles.
Happy Holidays!
I wish all readers who are taking a break over the festive season Happy Holidays, and a prosperous and healthy 2024. Thank you to everyone who has supported Insight222, myHRfuture and the Digital HR Leaders Podcast in 2023. It’s much appreciated.
Share the love!
Enjoy reading the collection of resources for December and, if you do, please share some data driven HR love with your colleagues and networks. Thanks to the many of you who liked, shared and/or commented on November’s compendium (including those in the Comments below).
If you enjoy a weekly dose of curated learning (and the Digital HR Leaders podcast), the Insight222 newsletter: Digital HR Leaders newsletter is published every Tuesday – subscribe here.
2023 HR RETROSPECTIVES AND 2024 PREDICTIONS
DAVE ULRICH - The State of HR: Looking Back and Envisioning Forward | McKINSEY - What matters most? Eight CEO priorities for 2024 | CULTURE AMP - 7 trends that will define HR in 2024 | KEN OEHLER - RADICL People Predictions for 2024 | VISIER – The New Rules of HR: 10 Workforce Trends for 2024 | i4CP – 2024 Priorities and Predictions
Putting my own 12 Opportunities for HR in 2024 to one side, there are a plethora of other trends and predictions being published. Six resources that I recommend digging deeper into come from Dave Ulrich, McKinsey, Culture Amp, RADICL, Visier Inc. and Institute for Corporate Productivity (i4cp). (1) Dave Ulrich looks back on the main themes in HR in 2023, declares “Now is the time for HR,” and outlines four areas where his firm, The RBL Group, will be conducting think tanks in 2024. (2) Homayoun Hatami and Liz Hilton Segel of McKinsey present eight CEO priorities for 2024 including Learn to love your middle managers. (3) Didier Elzinga and Damon Klotz co-opt contributions from Stacia Sherman Garr, Justin Angsuwat, Dr Kirstin Ferguson AM, and Hung Lee for their thoughtful seven trends that will define HR in 2024 including greater pay transparency, staying human as intelligent tech evolves, and regaining trust. (4) RADICL’s Ken Oehler presents five people predictions for 2024, with my favourite being #4 Attention Shifts to Solving Distributed Team Effectiveness (see FIG 2 for RADICL’s model of distributed team effectiveness: Coordination, Connection and Competence). (5) Visier collect trends from a number of industry luminaries and practitioners including Wendy Evesque, Michael Salva, Melissa Arronte, and Eric Bokelberg, with the lead trend being: The CHRO Leads From the Outside-In. (6) Last but not least, in his Foreword to i4CP’s annual look at priorities and predictions, Kevin Oakes highlights the dominance of AI and provides an illuminating insight on the direct correlation between the adoption of AI and business performance: “AI Innovators are more likely to have higher market performance, increased levels of innovation and productivity, and healthier cultures than those that have been slower to adopt AI.”
Now is the time for HR
FIG 2: The Collaboration Opportunity for distributed team effectiveness (Source: RADICL)
PEOPLE ANALYTICS
ROB BRINER - Evidence-based HR and people analytics are the same, right? Afraid not
Rob Briner examines the relationship between people analytics and evidence-based HR, explaining each of them, outlining the differences (see FIG 3) and concluding that: “While people analytics is a welcome and necessary development within the HR profession and certainly goes some way to helping HR become more effective, it is not, on its own, enough.” Rob also highlights the three key principles of evidence-based HR: (1) Incorporate multiple sources and types of evidence and information. (2) Adopt a structured and explicit process of gathering and using evidence. (3) Focus on the most trustworthy and relevant evidence.
FIG 3: Differences between people analytics and evidence-based HR (Source: Rob Briner)
PATRICK COOLEN - Establishing people analytics as a common practice (part II)
This article by Patrick Coolen, which follows up Part 1 where he presented his People Analytics FIT model, dovetails nicely with Rob Briner’s article as it focuses on the evidence-based HR services provided by people analytics functions. In the article, Patrick recommends that to establish people analytics as a common practice companies should not only focus on becoming more mature in the evidence-based HR services but in integrating these services too. Patrick provides a roadmap to achieving this (see FIG 4) as well as outlining three reasons for integration: (1) Integration leads to faster and higher-quality delivery. (2) Integration attracts experienced people analytics leaders. (3) Integration supports being a strategic advisor.
High impact people analytics practices integrate various evidence-based HR services
FIG 4: Road map strategies for people analytics practices (Source: Patrick Coolen)
JAAP VELDKAMP AND HELEEN GOET - How to determine your success KPIs in HR
This is a great article by Patrick Coolen’s erstwhile colleague and successor as Head of People Analytics at ABN Amro, Jaap Veldkamp. In the article, Jaap – together with Heleen Goet – outline the process followed at ABN Amro for establishing a clear link between each HR service and its impact on business outcomes. It outlines a ‘define your success’ workshop conducted between the people analytics team and HR at the bank to link each service to output and outcomes (see example in FIG 5). The article also outlines two benefits of this approach: (1) It leads to better collaboration between various teams in HR. (2) It magnifies the broader advisory role of people analytics.
FIG 5: Source: Jaap Veldkamp and Heleen Goet
NAOMI VERGHESE AND DAVID GREEN - The Importance of Ethics in People Analytics for Leading Companies
Naomi Verghese and I explore the critical topic of ethics, which is one of the eight characteristics of Leading Companies in People Analytics identified in the recently published Insight222 People Analytics Trends study. In the article, Naomi and I outline three key practices on ethics adopted by Leading Companies in their people analytics work. (1) Strong Ethical Principles - including the development of an Ethics Charter, with an example from Jaap Veldkamp of ABN AMRO. (2) Open Communication – including the ‘Fair Exchange of Value’, with a contribution from Dawn Klinghoffer on the importance of communicating value to employees. (3) Ethics Oversight – including the institution of an ethics and privacy council (see FIG 6).
The “Fair Exchange of Value” is a key mantra for people analytics teams. If employees understand how their data will be used and see the benefit, it is far more likely that they will contribute data.
FIG 6: Ethics and Privacy council for people analytics (Source: Excellence in People Analytics by Jonathan Ferrar and David Green)
TOM REDMAN AND TOM DAVENPORT - The Rise of Connector Roles in Data Science
In our research at Insight222, one of the characteristics of Leading Companies is that they invest in three key skills in their people analytics team: consultants, data scientists and behavioural scientists. In their article, Tom Redman and Tom Davenport outline the role of connectors, who bridge the organisational gaps that often thwart success with data science projects, and whose key responsibilities mirror many of those attributed to the people analytics consultant in the Insight222 Operating Model. These include: (1) Framing the problem to be solved. (2) Translating between business and technical people. (3) Communicating requirements, progress, and issues within the team. (4) Keeping track of progress toward the overall goal of deployment and organisational change when nobody else sees the big picture. The article outlines how connectors close the gap, provides guidance on how to manage connectors, and provides examples of what companies are trying in this area.
Connectors help senior business leaders understand both the potential and challenges of data science, help data science leaders understand the top problems facing the business, and establish a portfolio of data science projects that aligns with business needs.
BEN TEUSCH - An incomplete starter's guide to attrition metrics | SARA TIEW - Thriving Together: A Year on UOB's Culture Transformation Journey | JACKSON ROATCH – Lessons from Sports Analytics | LYDIA WU - HR in 2024: A Practitioner’s View | MATTHEW HAMILTON - How data quality is like a DIY haircut
November has seen a number of articles written by current and recent people analytics leaders, which typically act as a spur and inspiration for the field. Five are highlighted here: (1) Ben Teusch, part of Meta’s people analytics team, provides a helpful to attrition metrics (see FIG 7). (2) Sara Tiew provides insights from UOB’s culture transformation journey over the last 12 months. (3) Jackson Roatch draws four lessons from sports analytics that we could look to apply in the “less perfect world” of people analytics. (4) Lydia Wu continues her prolific ‘Oops, did I think that out loud’ series by looking into her crystal ball to see what is in store for HR and people analytics in 2024. (5) The nearly as prolific Matthew Hamilton explains why the maxim of people assuming that the better the data quality, the better the analysis is often not correct.
FIG 7: Source: Ben Teusch
GENERATIVE AI AND THE FUTURE OF WORK
PLACID JOVER - The Future of Work is Flexible
In this article, Placid Jover, Chief Talent and Reward Officer, presents three innovations Unilever is making to embrace a move from owning to accessing talent. (1) The Skills Passport (“As companies jostle to build a complete picture of what they need and how to get there, we’re fast learning that the real currency is skills”). (2) The Internal Talent Marketplace (“We have already seen a 40% increase in productivity and a significant reduction in attrition directly linked to Flex Experiences”). (3) The Pixelated Workforce (“Breaking down work into its core elements or “pixels”, then dividing those up between permanent staff and contractors, with the AI recommending teams or individuals for missions based on how they work with others as well as how they perform”). For more from Placid, I recommend listening to this episode of the Digital HR Leaders podcast: How Unilever is Creating New Ways of Working for Its Employees.
As companies jostle to build a complete picture of what they need and how to get there, we’re fast learning that the real currency is skills
RICHARD FLORIDA, VLADISLAV BOUTENKO, ANTOINE VERTRANO, AND SARA SALOO – Rethinking Corporate Location Strategy: The Rise of the Meta City
In their Harvard Business Review article, Richard Florida, Vladislav Boutenko, Antoine Vetrano, and Sara Nasir Saloo outline the structure and logic in where and how businesses locate their offices and compete for talent. Their research identifies the rise of a new type of city, the ‘Meta City,’ which combines elements of physical clustering with digital connectivity (see FIG 8). They argue that this makes location strategy even more important including corporate headquarters, innovation centres, and satellite offices — and more significantly, talent attraction and retention. A must-read for those involved in talent intelligence, hybrid work strategy and strategic workforce planning.
FIG 8: Ranking the world’s Meta Cities (Source: Florida et al)
PETER JOHN LAMBERT, NICHOLAS BLOOM, STEVEN DAVIS, STEPHEN HANSEN, YABRA MUVDI, RAFFAELLA SADUN, AND BLEDI TASKA - Research: The Growing Inequality of Who Gets to Work from Home
Data is increasingly showing that there is a large and growing divide in terms of who gets to work from home. In their Harvard Business Review article, Peter John Lambert, Nick Bloom, Steven J. Davis, Stephen Hansen, Yabra Muvdi, Raffaella Sadun, and Bledi Taska, Ph.D. present research on job postings, which finds that remote work is far more common for higher paid roles, for roles that require more experience, for full-time work, and for roles that require more education. Managers should be aware of this divide, as it has the potential to create toxic dynamics within teams and to sap morale. For more from Nick Bloom, tune in to his conversation with me on the Digital HR Leaders podcast: Unmasking Common Myths Around Remote Work.
FIG 9: Work-from-home opportunities are more common for highly-paid jobs (Source: Lambert, Bloom et al)
RYAN ROSLANSKY - Talent Management in the Age of AI | GIANNI GIACOMELLI - Learning and Talent Management in the Age of AI | TOMAS CHAMORRO-PREMUZIC - 4 science-backed reasons AI is better at predicting your potential in a job | DAVID L. SHRIER, JULIAN EMANUEL, AND, MARC HARRIS – Is Your Job AI Resilient? | NADA R. SANDERS AND JOHN D. WOOD - The Skills Your Employees Need to Work Effectively with AI
A key opportunity for HR in 2024 will be to prepare the organisation and HR for the age of AI. Here are five articles that support this imperative. (1) LinkedIn CEO Ryan Roslansky highlights three big shifts to support success a) redefine jobs as a collection of a skills and tasks, not titles, b) bring skills and workforce learning to the centre of talent management, and c) embrace AI to focus teams on human-to-human collaboration, and shares examples from IBM, Genpact, Unilever as well as LinkedIn. (2) Gianni Giacomelli provides more detail on the Genpact example cited by Ryan in his article explaining how they have connected internal mobility, learning, engagement and collaboration (see FIG 10). (3) The brilliant Dr Tomas Chamorro-Premuzic digs into the science to present four ways that AI is better at predicting potential including how AI can increase fairness and diversity. (4) David Shrier, Julian Emanuel, and Marc Harris outline their research on which jobs will be most affected by AI, including which stand to benefit the most from augmentation by AI (see FIG 11). (5) Nada Sanders and John Wood present findings from their research, which highlights two key areas of investment in skills related to AI: a) effective interpersonal skills, and 2) domain knowledge that can help workers get the most — and make the best decisions — when working with AI tools.
FIG 10: Source – Gianni Giacomelli, Genpact
FIG 11: AI Proficiency relative to human by cognitive task (Source: Shrier et al)
THE EVOLUTION OF HR AND DATA DRIVEN CULTURE
MARIE NEICU, JOAN BEETS, FRANK VAN DEN BRINK, BEAU HOES, AND EDIS PAJIC – Humanized Growth and Multistakeholder Value Creation: Perspectives from Chief Human Resources Officers| McKINSEY - How is the CHRO role changing?
Two resources exploring perspectives from chief human resource officers and how the role is changing. Firstly, the KennedyFitch team of Maria Neicu, Joan Beets, Frank van den Brink, Beau Hoes, and Edis Pajic share the findings from structured interviews with 30 CHROs including Janine Vos, Katarina Berg, Paulo Pisano (also see episode of the Digital HR Leaders podcast with Paulo below), Mala S., and Loren I. Shuster. The report is framed around the concept of humanised growth, which is defined as: “Humanized Growth addresses the needs of all shareholders, consumers, colleagues, community and the capital Markets.” It explores the role of the people function as a strategic partner, how to harness technology for impact, how to advance diversity, equity and inclusion, and why humanised growth starts with the employee experience. The second article from McKinsey examines the evolution of the HR operating model, how CHROs are putting the ‘human’ back into human resources, how GenAI will affect the HR function, and how CHROs can build the leadership capabilities required for an agile transformation.
WORKFORCE PLANNING, ORG DESIGN, AND SKILLS-BASED ORGANISATIONS
RICHARD ROSENOW - The SOAPI Framework - A New Lens for Modern Workforce Planning
Richard Rosenow is one of the best thinkers in our field and demonstrates it with his paper for One Model introducing his SOAPI framework for workforce planning. As he explains, it is a methodology that offers a structured method to break workforce planning into component parts. Each component represents a pillar, collectively forming the discipline of workforce planning. These are: (1) Strategy, (2) Operations (3) Analytics, (4) Planning, and (5) Intelligence. The paper breaks each of these down, and details what happens if one of these pillars is missing (see FIG 12).
FIG 12: Source: Richard Rosenow, One Model
SCOTT REIDA - Zero-based workforce planning with ChatGPT in Tableau
A brilliant, practical, and open-source guide on zero-based workforce planning with inputs from ChatGPT and outputs in Tableau, which has been created by Scott Reida, a workforce strategist at AWS. Scott defines zero-based workforce planning as “A methodology that can shape how businesses align their human capital with organizational goals and enable a more cost-effective solution that gets closer to having the right people at the right time.” His article provides a step by step guide to creating a dashboard (available here) that utilises outputs from ChatGPT for demand and aligns them with the supply of FTEs, facilitating the understanding of capability gaps.
FIG 13: Source: Scott Reida
JEFF WILLIAMSON AND DONNCHA CARROLL - How to Start Smart With a Talent Marketplace
Despite some of the hype, launching an internal talent marketplace can be a significant challenge for organisations. In this article, Jeffrey Williamson and Donncha Carroll share the journey to implementing a talent marketplace at Booz Allen and the key lessons learned with regards to user adoption and change management. The article outlines four lessons: (1) Bring on the gamification (gamifying learning and offering recognition and rewards to employees who invested in their own development). (2) Data goals must be relevant to individual career goals. (3) Even change management needs to change (see FIG 14). (4) Momentum, motivation, and measurement matter a great deal.
FIG 14: Four Culture Challenges to Conquer with a Talent Marketplace (Source: Jeff Williamson and Donncha Carroll)
BRIAN FISHER, MELBA GANT, VASILIS HATZOPOULOS, KATIE JENKINS, HEATHER RYAN, AND PETER STEVENSON - 2023/2024 skills snapshot survey report: Skills-powered practices, future pay and effectiveness
Mercer’s fourth annual Skills Snapshot Survey has a wealth of insights and guidance that highlight the progress many companies are making to embrace platforms and data to action skills-based strategies. In the paper, the authors (Brian Fisher, Melba Gant, Vasilis Hatzopoulos, Katie Jenkins, ?Heather Ryan , and Peter Stevenson) outline the benefits of skills-based practices (see FIG 15), how to build a skills foundation, how to determine the frequency of skill assessment, how to tackle skills-based rewards programs, and provide five steps to building a skills-based talent strategy: (1) Build the business case. (2) Align the key performance indicators. (3) Design with the end in mind. (4) Prioritise change management. (5) Drive and sustain. Also features contributions from Amy Baxendale and Anshul Sheopuri.
FIG 15: The benefits of skills-based practices (Source: Mercer)
EMPLOYEE LISTENING, EMPLOYEE EXPERIENCE, AND EMPLOYEE WELLBEING
NICK LYNN - Can you have high employee engagement and high turnover?
Nick Lynn reveals that nearly 20% of companies have both high employee engagement and high turnover; and then provides a wealth of guidance on what you can do about it if that’s the case for your company. He breaks down employee engagement and although it can be related to retention, why it is different. Nick shares insightful research from the CIPD on the and WTW on the drivers of employee engagement and experience, with the latter providing analysis and guidance on the links between engagement, performance, and retention. The article highlights WTW research by angela paul and Stephen Young, where they segmented 350 companies according to both the level of employee engagement and the level of retention, comparing each to their respective industry average (see FIG 16), and how companies in the top right quadrant (‘Value Drive’) also have a performance advantage, delivering the best profits and growth (also see FIG 16). Finally, Nick outlines a three-step approach for companies in the Value Risk category: Understand — Prioritise — Spark Change. I also recommend subscribing to Nick’s equally insightful EX Leadership Newsletter.
FIG 16: Source – WTW
INDRANEEL BANERJEE, AVINASH CHANDRA DAS, JATIN PANT, AND SHIKHA SHARMA - Employee experience still matters: Talent retention at GCCs
While focused on ways to improve employee retention at Global Capability Centres, the five actions to improve employee experience outlined by Indraneel 'Indy' Banerjee, Avinash Chandra Das, Jatin Pant, and Shikha Sharma in their article for McKinsey could be implemented in other business areas. The five actions are (1) Use personas and journeys to customise EX. (2) Reimagine the role of manager to emphasise coaching and mentorship (see FIG 17). (3) Find new ways to embed culture and values for a hybrid work environment. (4) Redesign the office for collaboration and connection. (5) Rethink the traditional workday.
Executives should treat EX as seriously as CX by being more scientific and more tailored in their approach.
FIG 17: The roles of manager need to be redesigned to focus more on coaching and mentoring (Source: McKinsey)
LEADERSHIP AND CULTURE
RAINER STRACK, SUSANNE DYRCHS, AND ALLISON BAILEY - Use Strategic Thinking to Create the Life You Want
How can we apply the learnings from corporate strategy projects to our own lives? That’s the unlikely – but ultimately captivating – exam question tackled by BCG’s Rainer Strack, Dr. Susanne Dyrchs, and Allison Bailey in their absorbing Harvard Business Review article. The authors present the seven steps they typically use to conduct a corporate strategy project and show how these can be adapted to an individual (see FIG 18). They then describe each of the seven steps with insights and powerful visualisations, as well as demonstrating how to develop a personal life strategy and summarise it on a single page. File under must-read.
FIG 18: From corporate strategy to life strategy (Source: Strack et al)
MCKINSEY HEALTH INSTITUTE - Reframing employee health: Moving beyond burnout to holistic health
Jacqui Brassey, PhD, MA, MAfN (née Schouten), Brad Herbig, Barbara Jeffery, and Drew Ungerman present the key findings from a recent McKinsey Health Institute study that offers insights into how leaders can help create a workplace that prioritises physical, mental, social, and spiritual health. Three standout findings are (1) Employees who had positive work experiences reported better holistic health, are more innovative at work, and have improved job performance. (2) For employees, good holistic health is most strongly predicted by workplace enablers, while burnout is strongly predicted by workplace demands (see FIG 19). (3) Organisational, team, job, and individual interventions that address demands and enablers can boost employee holistic health.
FIG 19: Source: McKinsey Health Institute
DIVERSITY, EQUITY, INCLUSION, AND BELONGING
McKINSEY - Diversity matters even more: The case for holistic impact
The fourth report in a McKinsey series stretching back to 2015, investigating the business case for diversity. The main takeaway is that the 2023 study finds that the business case is the strongest it has been yet with leadership diversity being convincingly associated with business performance, societal impact and employee experience (see FIG 20). The full 52 page report details case studies from the likes of IHG Hotels & Resorts, DHL Group, and Air New Zealand, as well as presenting five levers for change for moving from commitment to action. Kudos to the authors: Dame Vivian Hunt, Sundiatu Dixon-Fyle, Celia Huber, Maria del Mar Martinez, Sara Prince, and Ashley Thomas.
FIG 20: The business case for diversity on executive teams and financial outperformance (Source: McKinsey)
HR TECH VOICES
Much of the innovation in the field continues to be driven by the vendor community, and I’ve picked out a few resources from December that I recommend readers delve into:
ERNEST NG - What Matters Now: Embracing the New Era of Disclosures for All HR Technology Stakeholders – Ernest Ng, PhD of HiredScore explains why disclosure is a critical tool to maintain trust and legitimacy across four areas (1) Employer Disclosure with Candidates/Employees. (2) Solution Provider Disclosures to the Buyer. (3) Organisational Disclosures to the Government. (4) Industry Analysts with Consumers – the latter is one, I’d personally like to see more of us talking about as we head into 2024.
JAMAL MAZYCK - How Employee Resource Groups help build a culture of belonging - Jamal Evan Mazyck, Ed.D provides insights from Atlassian’s journey in building Employee Resource Groups, and how they engender a sense of belonging: “It’s not enough to recruit talent from underrepresented groups and give them equal access to opportunities; once they’re in the door, these employees need to feel that they belong.”
STEVE HUNT - The Skills Management Revolution: one-year, two-year, and three-year predictions – SAP’s Steve Hunt breaks down skills management in his article, which covers what it is, why it’s important, the three ontologies companies are building with skills management solutions (labour market, organisational and employee/candidate/contractor), and a one, two, and three year outlook on how these solutions will reshape the nature of work and organisations.
FIG 21: Source – Steve Hunt
FRANCISCO MARIN - Reducing Employee Attrition with ONA: A Case Study from a European IT Company - Francisco Marin from Cognitive Talent Solutions presents a case study of a European IT company to showcase how ONA can be used to help predict and mitigate attrition, ultimately leading to a more stable and productive workforce.
PHIL ARKCOLL - Developer Experience: The Developer Centric Approach to Productivity - Another great read from Philip Arkcoll of Worklytics. This time Phil outlines how by using active and passive listening with the objective of working to improve the developer experience, organisations can get developer buy in, boost productivity and attract top technical talent.
FIG 22: Source – Phil Arkcoll, Worklytics
PODCASTS OF THE MONTH
In another month of high-quality podcasts, I’ve selected four gems for your aural pleasure: (you can also check out the latest episodes of the Digital HR Leaders Podcast – see ‘From My Desk’ below):
JASON AVERBOOK - Generative AI: Revolutionizing the Employee Experience - In this episode of the Mercer | Leapgen AI-volution: Redefining HR podcast, Jason Averbook explores the transformative power of generative AI in shaping the future of employee experience.
AARON DE SMET, ANGELIKA REICH, ROBERTA FUSARO, AND LUCIA RAHILLY - Who is productive, and who isn’t? Here’s how to tell - In an episode of The McKinsey Podcast, Aaron De Smet and Angelika Reich talk to hosts Roberta Fusaro and Lucia Rahilly about their latest research on employee productivity.
KAYE SLAY, VANDANA BHAGTANI, STACIA GARR, AND DANI JOHNSON - Narrowing Scope & Purpose to Ease the Transition to a Skills-Based Organization – Another great episode of RedThread Research’s Workplace Stories podcast where Vandana Bhagtani and Kaye Slay-Pruitt, UXC share with Stacia Sherman Garr and Dani Johnson how they’ve worked together to develop a strategy for transitioning Hewlett Packard Enterprise to a skills-based organisation.
DOUG SHAGAM, COLE NAPPER, AND SCOTT HINES - People Analytics at J&J & Playing Drums – Doug Shagam joins Cole Napper and Scott Hines, PhD on the Directionally Correct podcast to discuss some of the great work the J&J team is doing in people analytics.
VIDEO OF THE MONTH
AMY EDMONDSON, ADAM GRANT, AND DES DEARLOVE - Decoding failure, debunking feedback, & harnessing learning for success
A fascinating conversation with Amy Edmondson and Adam Grant, who have just been recognised as #1 and #2 respectively on the prestigious Thinkers50 list of management thinkers. In the discussion with Des Dearlove, Amy and Adam discuss how to manage (and maximise learning from) failure and how to unlock hidden potential (it’s not about where you start; it's how far you can go).
BOOK OF THE MONTH
KATE BRAVERY, ILYA BONIC, AND KAI ANDERSON - Work Different: 10 Truths for Winning in the People Age
I'm currently reading the recently published book by Kate Bravery, Ilya Bonic, and Kai Anderson, which is based around 10 'truths' that are shaping the world of work. Three of the truths are: (1) Purpose rules and empathy wins. (2) Intelligence is getting amplified. (3) Skills are the real currency of work. Packed with insights, guidance, and examples, the book should be an indispensable resource for executives, managers, board members, human resources professionals, and other business leaders.
FROM MY DESK
December saw the final four episodes of Series 35 of the Digital HR Leaders podcast, sponsored by our friends at HiBob . Thank you to Louis Gordon .
MADELINE LAURANO - How to Buy HR Tech and Use It Effectively – Top industry analyst Madeline Laurano joins me to discuss the key themes on HR Tech in 2023, and what lies ahead in 2024 (see video below).
SARAH REYNOLDS - A CMO's Approach to Mastering Pay Transparency – HiBob’s Sarah Reynolds joins me to discuss the intersection of HR and marketing, the business benefits of pay transparency and its importance for DEIB.
PAULO PISANO - Booking.com’s 360-Degree View of Employee Experience – In our conversation, Paulo Pisano, Chief People Officer, outlines how Booking leverages data to enhance employee experience, streamline talent management across its international operations, and ensure that its workforce strategies are both effective and adaptable in a constantly changing business environment.
HEBBA YOUSSEF - Navigating HR Tech Triumphs & Avoiding Failures – Hebba Youssef, Chief People Officer at Workweek joins me to discuss the common pitfalls of implementing HR technology and strategies for success.
THANK YOU
Finally, this month I’d like to thank:
Abhilash Bodanapu for hosting me for lunch during my trip to Bangalore (see here) – it was wonderful to learn more about the people analytics journey bat Capgemini
Raja Sengupta (see here) for such a wonderful discussion on people analytics in Bangalore. It was wonderful to finally meet in person!
Geraldine Woloch-Addamine for including me in her list of Four Inspiring Voices on LinkedIn – it is humbling to be included in the same list as Amy, Adam, and Dave
Teamflect for including me in their list of 18 HR Influencers to Follow
Lanteria HR for including in their list of 10 favourite HR leaders of 2023
Dariush Franczak for including the November edition of the Data Driven HR Monthly in his list of HR resources
Thinkers360 for including the Digital HR Leaders podcast in their comprehensive list of 125 Podcasts from Thinkers360 Thought Leaders
CollectiveHR for including the Digital HR Leaders podcast with Nick Dalton in one of their Content of the Week collections
The prolific Esther Abraas for including the Digital HR Leaders podcast episode with Laura Wright Shubert in her collection of resources on strategic workforce planning
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ABOUT THE AUTHOR
David Green ?? is a globally respected author, speaker, conference chair, and executive consultant on people analytics, data-driven HR and the future of work. As Managing Partner and Executive Director at Insight222, he has overall responsibility for the delivery of the Insight222 People Analytics Program, which supports the advancement of people analytics in over 90 global organisations. Prior to co-founding Insight222, David accumulated over 20 years experience in the human resources and people analytics fields, including as Global Director of People Analytics Solutions at IBM. As such, David has extensive experience in helping organisations increase value, impact and focus from the wise and ethical use of people analytics. David also hosts the Digital HR Leaders Podcast and is an instructor for Insight222's myHRfuture Academy. His book, co-authored with Jonathan Ferrar, Excellence in People Analytics: How to use Workforce Data to Create Business Value was published in the summer of 2021.
How to Strategically Plan a Budget for HR in 2024The article discusses strategies for planning an HR budget for 2024, emphasizing the need for advanced HR technology and digital tools to enhance employee experience. It highlights the importance of focusing on talent retention due to high attrition rates in Asia and adapting to changes in the workforce market. The article stresses compliance with labor law changes and the need for a data-driven approach to budgeting. It outlines key budget components, including recruitment, training, salaries, HR technology, and employee well-being, to ensure a comprehensive plan for organizational growth and success.
As companies brace themselves for 2024, many HR teams are busy preparing comprehensive budgets for the coming year. Fortunately, with a host of cutting-edge HR technology and digital tools available, companies can plan a budget with more resources at their fingertips to better plan for the year ahead, significantly enhancing the overall employee experience.
In terms of a direction for 2024, companies are encouraged to channel more efforts towards talent retention, given the high attrition rates across Asia. In an effort to further empower their workforce and improve organisational culture, having the right HR tech is also a crucial consideration.
On that note, let’s look at how to create your 2024 HR budget and what to include in it.
What’s Most Important in Your 2024 Budget Plan
Keeping up with recent advancements for your workforce:
Understand how the talent market in 2023 will differ from 2024’s and plan for your manpower accordingly.
Consider if there has been a new shift towards or an increased use of AI tools to enhance both employee experience and candidate experience. According to analytics and advisory company Gallup, higher employee engagement translates to increased profitability – 23% more, according to their research.
Compare the workforce flexibility levels in your company with that of the overall job market – bearing in mind that there is a greater inclination towards a more flexible workforce, in terms of temporary and contract vs. permanent staffing.
Consider any increase in costs due to inflation, as salary (and potentially benefit) increments will have to be made accordingly.
A greater focus on talent retention:
To be able to maintain a robust and healthy workforce means to prioritise talent retention. With high employee attrition rates and talent retention being a top HR challenge in 2023, a key focus for businesses should be on how to retain their workforce better in 2024.
After conducting a thorough review internally, consider looking into programmes, practices and systems that can improve employee satisfaction, provide stronger employee assistance programmes and support, as well as streamline the overall HR experience for your employees.
Remaining compliant with labour law changes:
Given that 2023 has been a year with many labour law developments across various countries in APAC – such as Malaysia’s massive overhaul of its Employment Act and Singapore’s introduction of the COMPASS framework for Employment Pass applications – it is highly crucial for companies to remain compliant with upcoming labour law changes in all locations, particularly those with a presence in multiple countries.
Compliance can come in the form of adhering to minimum wage hikes, new tax brackets, increased number of leave, and so on – all of which can incur additional costs and would need to be accounted for in the HR budget. Additionally, remaining compliant with labour laws ensures there are minimal legal and financial repercussions, leading to a more prudent budget.
How Do You Prepare an HR Budget?
When you plan a budget for HR, some crucial pointers to have in mind when listing down what to include are:
Building a Strategy for Smart Expansion: Consider your company’s expansion plans for 2024 – if any. Coming up with a solid plan if you want to expand in 2024 is crucial, and you can consider a low-cost and minimal-risk option such as an employer of record. According to an article by Yahoo! Finance, in 2023, the worldwide EOR market reached a value of USD 1890.29 million and is projected to grow at a compound annual growth rate (CAGR) of 12.07% over the forecast period, ultimately reaching USD 3745.43 million by 2030.
For companies with multiple locations, when revising the budget, HR will look at which locations are now more mature and stable compared to last year to allocate the budget more evenly.
Investing in The Right Software and HR Tech: Get acquainted with the latest AI trends in hiring and find out how the right tools can enhance your journey of finding the right people to join your workforce.
Integration Options for Different Business Sizes: Speaking of knowing what works for your company size, if you’re a regional company, you’d likely work with a payroll outsourcing provider to streamline your regional payroll. Revisit your current service to see if its integration capabilities are still suited to your business – depending on if your headcount has been expanded or downsized recently.
A Data-Driven 2024 budget: A budget that is tailored heavily based on data allows for better foresight, less errors and allows you to make better informed decisions for your businesses. A report by McKinsey Global Institute shows that data-driven organisations are likely to be 19 times more profitable, and 6 times more likely to retain those customers. You can use data from previous budgets to get insights on what to do differently this time.
What are the must-haves in your HR budget?
If you’re wondering what a complete 2024 budget should entail, the following list can serve as a general checklist of what to cover:
Recruitment and hiring
Hiring Agency / Job advertisements
Employee assistance programmes
Interviews, screening candidates and background checks
HCM software management
Onboarding procedures
Employee relocations
Recruitment marketing
Talent retention
Outplacement Services (if required)
Visas and work permits
Training and development
Employee Certifications
Trainer/expert/consultant fees
Addressing skills gaps
Learning systems
Salaries and other benefits
Employee salaries
Overtime pay
Payroll system management and maintenance
Insurance & healthcare
Other statutory contributions
Retirement plans
Paid time off
Employee bonuses
HR Technology
HR Information Systems
Payroll Outsourcing Systems and Integration costs
HR Vendor
HR Team Upskilling
HR Certifications
Workshop and Training budgets for HR team
Diversity and Inclusion
Increase in diversity hiring
Implementation of inclusive hiring practices
Employee safety and well-being
Employee health
Security at work
Physical and mental employee well-being
Others
Employee/employer appraisals and surveys
Upkeep of recreational areas in the office
Company trips
Fitness facilities
Safety trainings
Some resources to use when you plan a budget for HR:
Having a wealth of handy information can help you plan a budget more efficiently. If you’re looking for resources on the latest HR developments across idea, here are a few you might want to look at.
Resources
Guide to Hiring in Asia – A compilation of in-depth guides for various countries across Asia on how to compliantly hire employees in each country.
APAC Labour Law Insider – Quarterly updates on HR legislations across 17 locations in Asia.
China Labour Law Updates – Monthly updates on China’s labour laws.
Labour Law and Compliance Workshop Webinars – Complimentary webinars on labour law updates across various locations in Asia.
Templates and Checklists
HR Onboarding Checklist Template
Payroll Request For Payroll Template (RFP) Template
Handover List Template
Layoff Planning Checklist
China Personal Information Protection Law HR Compliance Checklist
Out of Office Message Template
In conclusion, having an HR budget is essential for companies as it provides a structured financial plan to effectively manage and optimise their most valuable asset – their workforce. It ensures that resources are allocated for hiring, training, and retaining employees, ultimately contributing to organisational success and growth.
Looking for a HR provider that can offer you HR outsourcing, advisory and HR tech services? At Links, we look forward to providing you with complete HR solutions to drive your organisation. Contact us today for more information!
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