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Summary of "Leading the Social Enterprise: Reinvent with a Human Focus" - 2019 Deloitte Global Human Capital Trends

Core Content

The 2019 Deloitte Global Human Capital Trends report highlights the growing importance of the social enterprise—organizations that balance profit-making with social responsibility. The report emphasizes the need for businesses to reinvent themselves with a human focus in response to rapid technological changes, societal challenges, and evolving workforce dynamics.

Main Trends and Key Information

The Future of the Workforce

• The Alternative Workforce:

  • Alternative employment (contract, freelance, gig, crowd) is now mainstream.
  • It is becoming essential for organizations to manage and integrate these workers into their strategies due to skills shortages and demographic changes.
  • The alternative workforce includes a variety of roles such as outsourced teams, contractors, freelancers, gig workers, and crowdsourced networks.
  • In the U.S., self-employed workers are expected to triple by 2020.
  • Many full-time workers, especially millennials and Gen Z, are interested in side hustles.

• From Jobs to Superjobs:

  • Organizations are expected to increase the use of AI, cognitive technologies, and automation.
  • These technologies are changing the nature of work, requiring jobs to become more digital, multidisciplinary, and data-driven.
  • Superjobs are new roles that combine elements of different traditional jobs to leverage technology and enhance productivity.

• Leadership for the 21st Century:

  • Leadership must evolve to address new challenges such as change management, ambiguity, and digital transformation.
  • 80% of respondents believe 21st-century leaders face unique requirements.
  • Leaders must balance traditional business goals with the new social context and technological landscape.

The Future of the Organization

• From Employee Experience to Human Experience:

  • The concept of employee experience is expanding to human experience, which includes the meaning and purpose behind work.
  • 84% of respondents rated improving the employee experience as important, with 28% considering it urgent.
  • Organizations must align work with the values and aspirations of employees and society.

• Organizational Performance:

  • The shift from hierarchical structures to team-based models is accelerating.
  • 31% of respondents operate mostly or entirely in teams.
  • However, many organizations have not updated their leadership, job design, and reward systems to support this shift.

• Rewards:

  • Only 11% of respondents felt their reward systems were highly aligned with organizational goals.
  • There is a need to develop rewards that reflect the evolving expectations and needs of workers.
  • A focus on relationship-building and personalized rewards can help close the gap.

The Future of HR

• Accessing Talent:

  • Talent acquisition is becoming more complex with the rise of the open talent economy.
  • Organizations must access talent in various ways, including internal mobility, external recruitment, and leveraging technology.
  • Internal mobility is increasingly seen as a strategic priority.

• Learning in the Flow of Life:

  • Learning is becoming more integrated with work, more personal, and more lifelong.
  • 86% of respondents consider learning and growth as an important or very important issue.
  • A culture that supports continuous learning, incentives for learning, and a focus on skill development are critical.

• Talent Mobility:

  • Internal talent mobility is becoming a key strategy for organizations to retain and develop talent.
  • A new set of norms is needed to support mobility across all levels and functions.
  • Technology should enable a streamlined and efficient mobility process.

• HR Cloud:

  • Cloud computing is transforming HR systems to be more engaging, personalized, and data-driven.
  • While HR cloud is a foundation, organizations must explore innovative platforms, automation, and AI-based tools to support further transformation.

Key Insights

• Reinvention is necessary to address the challenges of the Fourth Industrial Revolution.
• Human potential is the driving force behind organizational success, even in a world of advanced technology.
• Societal impact is now a primary measure of success for many CEOs.
• Employee engagement is low, with 85% of global employees not engaged or actively disengaged.
• Technology is reshaping work, requiring organizations to rethink job design, leadership, and reward systems.

Summary of 2019 Human Capital Trends

Conclusion

The report underscores that the future of work is increasingly human-centric, driven by the need to balance profit with purpose. Organizations must adapt by reinventing their workforce strategies, organizational structures, and HR practices to meet the demands of a diverse, dynamic, and tech-driven world. The focus should be on meaningful work, employee engagement, continuous learning, and strategic talent management.