The rise of the individual in the future of work Josh Bersin Principal and Founder, Bersin Deloitte Consulting LLP

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2 Agenda Today s economy and the new world of work The crisis in productivity, engagement, and trust Strategies: Management Learning Career Wellbeing Culture The vital role of HR leadership Copyright 2018 Deloitte Development LLC. All rights reserved. Presentation title 2 [To edit, click View > Slide Master > Slide master1]

3 The Robots Are Here 77% of CEOs expect the role of AI, Robotics, and Automation to increase significantly over the next 2 years. Source: Robots: The new low-cost worker, Dhara Ranasinghe, CNBC, April 10, Source: China Can t Buy Enough Industrial Robots, Jethro Mullen, CNNTech, June 23, Copyright 2018 Deloitte Development LLC. All rights reserved. Bersin by Deloitte / The indispensable digital HR destination 3

4 Jobs Are Rapidly Shifting to Services not Labor Shift to a service and IP-based economy Estimates that 65% of children entering primary school today will hold jobs that do not yet exist. Source: McLeod, Scott and Karl Fisch, Shift Happens Source: U.S. Bureau of Labor Statistics and LinkedIn 2017 Jobs Report Copyright 2018 Deloitte Development LLC. All rights reserved. Bersin by Deloitte / The Rise of the Individual In The New World of Work 4

US Unemployment Rate Nearing Record Lows Hiring is now harder than it was in 2001 and time to hire is growing 10 9 8 7 6 Korean War 1950-1953 Vietnam War 1955-1975 Black Monday 1987 Dot Com

3% Inflation 1970-1976 4.1% Inflation 2007 Expected to drop to 3.9% Source: http://dhihiringindicators.com/wp-content/uploads/2018/01/2018-01-dhi-hiring-indicators-report-final-2.

5 US Unemployment Rate Nearing Record Lows Hiring is now harder than it was in 2001 and time to hire is growing Korean War Vietnam War Black Monday 1987 Dot Com Dot Bomb 2000 Financial Crisis % 3.5% 3.9% 4.1% Today End of Korean War % jumping to 12.3% Inflation % Inflation 2007 Expected to drop to 3.9% Source: Source: Copyright 2018 Deloitte Development LLC. All rights reserved. Bersin by Deloitte / The Rise of the Individual In The New World of Work 5

6 Productivity is suffering is technology helping? US productivity last ten years Index points US nonfarm labor productivity Source: U.S. Bureau of Labor Statistics iphone launched 100 million Twitter users 1 billion smartphones Copyright 2018 Deloitte Development LLC. All rights reserved. Bersin by Deloitte / The Rise of the Individual In The New World of Work 6

Employees are just overwhelmed The average US worker now spends 25% of their day reading or answering emails The average mobile phone user checks their device 150 times a day More than 80% of all

7 Employees are just overwhelmed The average US worker now spends 25% of their day reading or answering s The average mobile phone user checks their device 150 times a day More than 80% of all companies rate their business highly complex or complex for employees 40% of the US population believes it is impossible to succeed at work and have a balanced family life Fewer than 16% of companies have a program to simplify work or help employees deal with stress The average US worker works 47 hours and 49% work 50 hours or more per week, with 20% at 60+ hours per week Sources: Deloitte Human Capital Trends 2014 and 2015 Copyright 2018 Deloitte Development LLC. All rights reserved. Bersin by Deloitte / The indispensable digital HR destination 7

8 Engagement remains a challenge Average What are these companies doing? Overall Rating Source: Summer, 2016 Glassdoor Bersin by Deloitte Research Copyright 2018 Deloitte Development LLC. All rights reserved. Bersin by Deloitte / The Rise of the Individual In The New World of Work 8

We are working more hours: a vacation and health crisis Since 2000, US workers lost an entire week of vacation, dropping average vacation days from 20.3 to 16.

9 We are working more hours: a vacation and health crisis Since 2000, US workers lost an entire week of vacation, dropping average vacation days from 20.3 to 16.8 In the UK and US, 60% of workers say they have poor work-life balance and only 1/3 leave work on time. 39% want to be seen as a work martyr to their boss, yet these over-workers are less likely to receive a promotion or raise than their peers. One in six Americans now take psychiatric drugs for depression, sleep, or anxiety The Workplace is the Biggest Source of Stress in America. - Jeffrey Pfeffer, Dying for a Paycheck Source: The State of American Vacation 2018, Project: Time Off Dying for a Paycheck, Jeffrey Pfeffer Copyright 2018 Deloitte Development LLC. All rights reserved. Bersin by Deloitte / The Rise of the Individual In The New World of Work 9

10 Crisis of Trust in Institutions Edelman Trust Data Majority of respondents believe the system is failing: 53% Only 37% Only 29% believe the system is failing Trust CEOs Trust Government Source: Copyright 2018 Deloitte Development LLC. All rights reserved. Bersin by Deloitte / The Rise of the Individual In The New World of Work 10

Citizenship on the rise Millennials and CEOs focused on mission and purpose 64% 64% expect economic and political conditions to get worse in the coming two years 64% In mature markets, 64% of

11 Citizenship on the rise Millennials and CEOs focused on mission and purpose 64% 64% expect economic and political conditions to get worse in the coming two years 64% In mature markets, 64% of millennials believe they will be less well off financially than their parents and 69% say they will be less happy 77% 77% of Millennials actively take part in volunteerism and charity work to help improve their community 88% 88% of Millennials believe business can be a major force for positive social change Source: Deloitte Millennial Survey, 2018, n=70,000 Oxfam Reward Work not Wealth, en, n=72,000 Copyright 2018 Deloitte Development LLC. All rights reserved. Bersin by Deloitte / The Rise of the Individual In The New World of Work 11

The Rise of The Individual In the New World of Work Copyright 2018 Deloitte Development

passenger video, company shelves lottery for bonus, after employee backlash Copyright 2018 Deloitte

13 Patient Zero: Steven Slater of JetBlue Airlines World Discovers a new hero: Air steward who lost his cool, grabbed a beer, slid down emergency chute and launched himself into stardom United Airlines: after passenger video, company shelves lottery for bonus, after employee backlash Copyright 2018 Deloitte Development LLC. All rights reserved. Bersin by Deloitte / The Rise of the Individual In The New World of Work 13

Employees Fight Back Salesforce and investors now use Glassdoor to inform billion-dollar acquisition decisions A 20-year-old sues Dick s and Walmart because they

14 Employees Fight Back Salesforce and investors now use Glassdoor to inform billion-dollar acquisition decisions A 20-year-old sues Dick s and Walmart because they wouldn t sell him a rifle Copyright 2018 Deloitte Development LLC. All rights reserved. Bersin by Deloitte / The Rise of the Individual In The New World of Work 14

The Unhappy Customer: Activism on the rise Copyright 2018 Deloitte Development LLC.

16 Why the concern and activism around the world? It s simple. People are worried. Copyright 2018 Deloitte Development LLC. All rights reserved. Bersin by Deloitte / The indispensable digital HR destination 16

17 Income Inequality Continues To Rise GINI Index Eight men now own the same amount of wealth as the poorest half of the world Over the last 30 years in the US, growth in the incomes of the bottom 50% has been zero, whereas incomes in the top 1% have grown 300% Source: Thomas Picketty Research Copyright 2018 Deloitte Development LLC. All rights reserved. Bersin by Deloitte / The Rise of the Individual In The New World of Work 17

18 New Jobs Are Being Created Faster Than Ever Most In-Demand Jobs for 2018 Machine Learning Engineer Data Scientist Sales Representative Customer Success Manager Full Stack Engineer Big Data Developer Brand Partner Peronsal Loan Consultant Head of Partnerships Licensed Realtor Guest Experience Manager Marketing Content Manager Reliability Engineer Head of Customer Experience Soft Skills Tech Source: Copyright 2018 Deloitte Development LLC. All rights reserved. Bersin by Deloitte / The Rise of the Individual In The New World of Work 18

19 New Skills Needed: Hybrid and Service-Oriented Most In-Demand Skills 1. Management 2. Sales 3. Communication 4. Marketing 5. Start-ups 6. Python 7. Software Development 8. Analytics 9. Cloud Computing 10. Retail Capabilities 1. Adaptability 2. Culture Fit 3. Collaboration 4. Leadership 5. Growth Potential 6. Prioritization Source: Copyright 2018 Deloitte Development LLC. All rights reserved. Bersin by Deloitte / The Rise of the Individual In The New World of Work 19

Where the Robots Live Robots per one thousand workers Copyright 2018 Deloitte Development LLC.

21 Forcing Career Models into Disruption 61% 83% 32% of companies of companies 60% of companies expect careers to last 10 years or less are redesigning or planning to redesign their career model expect to have an open or flexible career model within 3-5 years 31% of companies Organizational readiness to manage careers dropped by 32% from 2017 to 2018 expect careers to last 5 years or less Deloitte HC Trends 2018 Copyright 2018 Deloitte Development LLC. LLC. All All rights reserved. Bersin by Deloitte / The indispensable digital HR destination 21 Deloitte HC Trends 2017

22 We Need A New Model for Our Businesses Organization Structure: Teams and Projects: Today Hierarchical Business Functions Teams formed slowly over time Future Projects, Squads, Teams, Services Teams assemble and disband quickly Jobs and Roles: Job descriptions, job levels, job titles Assignments, tasks, expert roles Managers: Managers own teams and people s careers Managers manage projects and sponsor people Careers: Flexibility and Space: Rewards: Culture: Jobs are owned by the manager and not shared People assigned jobs by management People rewarded by level, tenure, experience Inclusion, Sustainability, Diversity Jobs open in transparent marketplace People sought out based on skills, work on multiple projects People rewarded by outcomes, reputation, sponsorship Citizenship, Collective Thinking, Shared Values Copyright 2018 Deloitte Development LLC. All rights reserved. Bersin by Deloitte / The Rise of the Individual In The New World of Work 22

The Simply Irresistible Organization Meaningful Work Hands-On Management Humane Environment Growth Opportunity Trust in Leadership Autonomy Clear goal setting Flexible, humane work

Leadership development Open flexible work spaces Self and formal development Transparency and communication Time for slack Modern performance management Inclusive, diverse culture High

23 The Simply Irresistible Organization Meaningful Work Hands-On Management Humane Environment Growth Opportunity Trust in Leadership Autonomy Clear goal setting Flexible, humane work environment Facilitated talent mobility Mission and purpose Selection to fit Coaching and feedback Recognition rich culture Career growth Investment in people, trust Small teams Leadership development Open flexible work spaces Self and formal development Transparency and communication Time for slack Modern performance management Inclusive, diverse culture High impact learning culture Inspiration Source: Bersin's Simply Irresistible Organization model Copyright 2018 Deloitte Development LLC. All rights reserved. Future of Work, The People Imperative 23

24 1. Meaningful Work Meaningful Work For The New Organization A network of teams A A B Shared values and culture Transparent goals B C D E F E C G D Free flow of information and feedback People rewarded for their skills and abilities, not position How things were How things are How things work Source: Rewriting the rules for the digital age Deloitte Global Human Capital Trends Copyright 2018 Deloitte Development LLC. All rights reserved. Bersin by Deloitte / The Rise of the Individual In The New World of Work 24

25 Is Management Listening? Feedback: The Killer App 2. Sound Management Problems known to top managers 4% Problems known to middle managers 9% Problems known to supervisors 74% Problems known to front line workers 100% 1979 study of workers in 8 Japanese factories, Sidney Yoshida Copyright 2018 Deloitte Development LLC. All rights reserved. Future of Work, The People Imperative 25

26 2. Sound Management Have You Fixed Performance Management? Shifting to a Growth Mindset The Old Performance Management Process 1. Annual cascading goals 2. Top-down execution thru metrics 3. Evaluate high performers through ratings 4. Force out low performers 5. Annual pay increase based on rating 6. Annual development plans 7. Categorize HIPOs, leadership candidates Continuous Performance Management 1. Continuous bottoms up goals (OKR) 2. Quarterly or more check-ins 3. Regular feedback in all directions 4. Use of data to measure performance 5. Train and support leaders 6. Review compensation frequently 7. Offer career and progression to all A competitive assessment process A coaching and development process Copyright 2018 Deloitte Development LLC. All rights reserved. Bersin by Deloitte / The Rise of the Individual In The New World of Work 26

Organizational Listening Architecture Understanding the

Sound Management Pulse surveys Annual survey Anonymous

Integrated reporting & analytics Sentiment analysis Network

27 Organizational Listening Architecture Understanding the Employee Experience 2. Sound Management Pulse surveys Annual survey Anonymous feedback tools Customer satisfaction Social media monitoring Integrated reporting & analytics Sentiment analysis Network analysis Exit interviews Performance check-ins Employment brand Job boards & ads Performance appraisals Copyright 2018 Deloitte Development LLC. All rights reserved. Bersin by Deloitte / The Rise of the Individual In The New World of Work 27

com/farmers-insurance/do-these-3-things-to-foster-a-flexible-remote-work.

28 3. Holistic Environment Flexible, productive, collaborative workspaces 91% of people who work at home feel more productive than they do at the office. -Farmers Insurance Copyright 2018 Deloitte Development LLC. All rights reserved. Bersin by Deloitte / The Future indispensable of Work, The digital People HR destination Imperative 28

29 Environment Designed for The Job 3. Holistic Environment Work style and workplace mismatch can be addressed by analyzing work style types segmenting employees by workstyles. High INDEPENDENT FOUR MAJOR WORK STYLES TRAVELER Flexibility to work from anywhere Often at out-of-office meetings Degree of mobility Employee Profile: A Data Analyst frequently works from home and reserves space when in the office RESIDENT Need access to resources in office daily Employee Profile: A Sales Manager spends his time at client offices; occasionally reserves space TEAMER / COLLABORATOR Spend the day in collaborative work Employee Profile: A Research Associate works in the office; requires a full-time, dedicated workspace Employee Profile: An IT Manager utilizes a blend of desks and meeting spaces suited to collaborative work Low Low Degree of collaboration High Copyright 2018 Deloitte Development LLC. All rights reserved. Future of Work, The People Imperative 29

30 3. Holistic Environment Do you have an inclusive talent system? The New Bersin Talent Management Maturity Model Level 4 Inclusive talent system Talent strategies integrated with inclusion, diversity, and culture 10% Level 3 Managed talent relationships Workforce planning, development planning, leadership development integrated into talent strategy 19% Level 2 Critical talent growth Critical talent segments, focus on hiring, training, performance 59% Bersin by Deloitte Level 1 Essential talent activities Standalone disconnected staffing, training, and performance practices 12% Source: Bersin by Deloitte, Deloitte Consulting LLP, Copyright 2018 Deloitte Development LLC. All rights reserved. Bersin by Deloitte / The Rise of the Individual In The New World of Work 30

31 Wellbeing: A Model for Health, Productivity, Performance 3. Holistic Environment Employee Vitality Exercise Health Monitoring Family Sleep Self Discovery Stress Fitness Nutrition Career Recognition Purpose Drive Skills and Training Wellbeing Mindfulness Abundance Mentality Positive Thinking Work Environment Sustainable Performance Rewards Leadership Management Clear Goals Medical Benefits Employee Assistance Challenges Culture Fit Growth Opportunities Cost Reduction Labor Productivity Retention Productivity Collaboration Team Performance Leadership Business Performance Bersin by Deloitte Copyright 2018 Deloitte Development LLC. All rights reserved. Bersin by Deloitte / The indispensable digital HR destination 31

Sourcing Health Coaching Health Risk Assessment Concierge Services Education And Guides Employee Assistance Program Episode-Support Life-Event Resources Management Model Mindfulness Benefit

32 Wellbeing Requires A Comprehensive View Deloitte Wellbeing Matrix 3. Holistic Environment Deloitte Wellbeing Offering Matrix Body Mind Wealth Purpose Activity & Nutrition Education/Guides Connection To Community Programs Dependent Care Support Fitness Subsidy Food Sourcing Health Coaching Health Risk Assessment Concierge Services Education And Guides Employee Assistance Program Episode-Support Life-Event Resources Management Model Mindfulness Benefit Maximization Concierge Services Discount Purchase Programs Identity Theft Protection Investment Advice Legal Counseling Career/Vocational Guidance Rewards And Recognition Programs Training & Tuition Support Volunteer Opportunities Maternity Management Preventive Care Exam/Screenings Tracking Device Integration/Promotion Paid Time Off Pet Support Sleep Loan/Debt Management Retirement Planning Need for Data- Driven Rewards Optimization Workplace Activity Programs Social Connections Workplace Education/Training Stress Management Copyright 2018 Deloitte Development LLC. All rights reserved. Bersin by Deloitte / The indispensable digital HR destination 32

33 Can People Learn? Learning and Coaching In The Flow of Work 4. Learning & Growth Performance or Productivity Coaching, management support, feeling of value and success.. meaningful organizational and peer recognition. Onboarding Training New Assignment Discretionary Effort from High Engagement Plateau Time Copyright 2018 Deloitte Development LLC. All rights reserved. Bersin by Deloitte / The Rise of the Individual In The New World of Work 33

34 4. Learning & Growth The New Model for Learning: In The Flow of Work Micro-Learning I need help now. Macro-Learning I want to learn something new. 2 minutes or less Topic or problem based Search by asking a question Video or text Indexed and searchable Content rated for quality and utility Several hours or days Definitions, concepts, principles, and practice Exercises graded by others People to talk with, learn from Coaching and support needed Is the content useful and accurate? Is the author authoritative and educational? Videos, articles, code samples, tools Courses, classes, MOOCs, programs Copyright 2018 Deloitte Development LLC. All rights reserved. Future of Work, The People Imperative 34

4. Learning & Growth Are Tenured Employees Respected?

has been an increase in life expectancy of three months for every year.

35 4. Learning & Growth Are Tenured Employees Respected? The Longevity Dividend The 100 Year Life (And 70 Year Career) Since 1840 there has been an increase in life expectancy of three months for every year. Today s Millennials have a 50% chance of living to 100+ Gratton, Lynda; Scott, Andrew. The 100-Year Life Increase in Life Expectancy Over Time Copyright 2018 Deloitte Development LLC. All rights reserved. Future of Work, The People Imperative 35

redesigning their career models, but only 8% feel ready to

Flexible and Open: 83% of companies expect to have an open or

Deloitte HC Trends 2017 Dynamic and Agile: 31% of companies

10 years or less Deloitte HC Trends 2017 Copyright 2018

36 New Career Models Are Badly Needed 4. Learning & Growth Future Focused: 58% of companies are redesigning their career models, but only 8% feel ready to create the skills for the future Deloitte HC Trends 2018 Flexible and Open: 83% of companies expect to have an open or highly flexible career model within the next 3-5 years Deloitte HC Trends 2017 Dynamic and Agile: 31% of companies expect careers to be 3-5 years long, and 60% expect them to be 10 years or less Deloitte HC Trends 2017 Copyright 2018 Deloitte Development LLC. All rights reserved. Bersin by Deloitte / The Rise of the Individual In The New World of Work 36

37 Culture, Leadership, and Career Matter Far More Than Money What matters to employees 5. Trust in Leadership Correlation of employment factors to Glassdoor recommendations as place to work Culture and values Senior leadership Career opportunities 0.22 Work life balance 0.13 Compensation & benefits Year founded (age) Culture and leadership are 3X more important than salary in your employment brand. Source: Bersin Research and Glassdoor data Career 0.20 development 0.25 and 0.30 learning are 0.35 almost 2X more important than comp, benefits, and work environment. Copyright 2018 Deloitte Development LLC. All rights reserved. Bersin by Deloitte / The indispensable digital HR destination 37

These companies performed 4x higher than Good to Great companies.

38 5. Trust in Leadership Culture as business strategy 89% of companies rate culture as an urgent issue yet only 14% really know what good culture looks like Companies with a strong mission and purpose outperformed the S&P 500 by 8-fold over a 20 year period. These companies performed 4x higher than Good to Great companies. Companies with soul had a 1026% return from 1996 through 2006, 8x higher than S&P 400 firms Source: Firms of Endearment, by R. Sisodia, D. Wolf, and J. Sheth (2007) Copyright 2018 Deloitte Development LLC. All rights reserved. Future of Work, The People Imperative 38

39 5. Trust in Leadership We Need A New Management Paradigm Management Thinking Evolves: The Industrial Corporation Hierarchical Leadership Collaborative Management Networks of Teams The Social Enterprise Operational Efficiency Profit, Growth, Financial Engineering Customer Service, Employees as Leaders Mission, Purpose, Sustainability Citizenship, Teamwork, Growth, Learning Industrial Age People as Workers Management by Objective Servant Leadership Work Together Empower the Team Productivity, Wellness, Responsibility Andrew Carnegie Henry Ford Jack Welch Peter Drucker Howard Schulz Steve Jobs Netflix, Google, Facebook, Amazon Unilever, Merck, Patagonia, Whole Foods The Corporation is King The Executives are King The People are King(s) The Teams and Team Leaders are Kings The Individual, Community, and Team <1950s 1960s-80s 1990s Today 2020 Copyright 2018 Deloitte Development LLC. All rights reserved. Future of Work, The People Imperative 39

But A Warning: CEOs Have Work to Do While 61% of companies are redesigning work for AI and technology, 67% of CEOs believe that this technology will create more value

Despite the desire to be digital and drive engagement and new skills, 73% of C-Suite executives do not partner closely on crosscompany initiatives Only 18% of C-Suite

40 But A Warning: CEOs Have Work to Do While 61% of companies are redesigning work for AI and technology, 67% of CEOs believe that this technology will create more value than human capital. Despite the desire to be digital and drive engagement and new skills, 73% of C-Suite executives do not partner closely on crosscompany initiatives Only 18% of C-Suite executives have a strategy to drive citizenship and community purpose into their organizations 54% of companies have no explicit program to build the skills needed in the future Copyright 2018 Deloitte Development LLC. All rights reserved. Bersin by Deloitte / The Rise of the Individual In The New World of Work 40

41 It s up to us. Are you ready for the rise of the individual in your organization? Copyright 2018 Deloitte Development LLC. All rights reserved. Bersin by Deloitte / The Rise of the Individual In The New World of Work 41

42 What You Should Do Reimagine your organization as an institution with citizenship and purpose Listen to your employees and stakeholders at all levels Reinvent management to focus on listening, growth, coaching Focus on productivity and help people perform in a healthy environment Create purpose by helping leadership focus on mission, purpose, and citizenship Copyright 2018 Deloitte Development LLC. All rights reserved. Bersin by Deloitte / The Rise of the Individual In The New World of Work 42

43 About Deloitte As used in this document, Deloitte means Deloitte Consulting LLP, a subsidiary of Deloitte LLP. Please see for a detailed description of our legal structure. Certain services may not be available to attest clients under the rules and regulations of public accounting. This publication contains general information only and Deloitte is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. Deloitte shall not be responsible for any loss sustained by any person who relies on this publication. Copyright 2018 Deloitte Development LLC. All rights reserved.

Bersin by Deloitte 2017 Predictions Everything is Digital

Bersin by Deloitte 2017 Predictions Everything is Digital Josh Bersin Founder, Bersin by Deloitte Principal, Deloitte Consulting LLP January, 2017 Forces Disrupting Organizations Today Demographic and