Businesses and workforces in every industry continue to face major disruption. HR has sometimes struggled to keep up with the accelerating pace of change, yet 2016 could mark a turning point. Although there’s still a long way to go, Deloitte’s new Global Human Capital Trends report shows that HR is now making impressive strides in innovation, reskilling, and adapting to changing workforce and business demands.
So how can HR take the lead in this exciting digital business world? Where are the best opportunities to drive business growth? What capabilities and skills will be needed in the future? In the first of a series of blogs, we focus on one of the key trends driving HR transformation: the growing importance of design thinking in crafting the employee experience.
Focus on the person, not the process
Today’s employees are already inundated with a flood of e-mails, messages, and meetings – so the last thing they want are HR processes that add to the burden. And with the huge growth in mobile devices, they’re also accustomed to interacting with technology in a way that is simple, intuitive, and pleasurable. So it’s not surprising that 79% of executives in this year’s Global Human Capital Trends survey rated design thinking – which puts the employee experience at the center – an “important” or “very important” issue (see figure 1).
Figure 1: Design thinking: Percentage of respondents rating this trend “important” or “very important”
In simple terms, design thinking means focusing on the person and the experience, not the process. The key question that HR needs to ask is: “what does a great employee experience look like from end to end?” That means studying people at work and creating “personas” and “profiles” to understand their demographics, environment, and challenges. This implicitly drives a more thoughtful and human approach to business that makes the workplace more attractive to existing and future employees. “Design thinking really is about reevaluating the way HR is being done in the context of the employee experience,” explains Erica Volini, leader of Deloitte Consulting LLP’s HR Transformation Practice.
But does it work? The data from this year’s survey certainly points that way. Companies growing by 10% or more a year are more than twice as likely to report that they are ready to incorporate design thinking, compared to their counterparts who are reporting stagnant levels of growth. Design thinking can also make a huge difference in how companies are perceived, which is crucial in recruiting and retaining the right people. Done well, design thinking promotes a virtuous cycle: generating higher levels of employee satisfaction, greater engagement, and higher productivity for the company.
Deloitte’s Global Human Capital Trends 2016 is one of the largest global surveys of its kind, with 7,000 HR and non-HR respondents covering a wide range of industries across 130 countries. “Every single industry is being disrupted; that’s the theme that resonates through the report,” says Erica Volini. “There’s a real opportunity for HR to use this report to change the dialog and make it about what’s happening in the business and ideas to move forward.”
To find out more about HR transformation trends, priorities, and practices:
- Watch the research-based Deloitte ‘Transforming HR’ on demand webinar
- Download the Deloitte Global Trends 2016 ‘Transforming HR’ report (registration required)
- Listen to Deloitte’s Erica Volini talk about ‘Do CHROs need a new conversation?’ on SAP Radio