Tips for CHROs to Thrive in the Age of Disruption
While today’s world cannot be imaginable without advanced technologies, we are constantly battling increasingly new challenges.
Organizations are in a perpetual motion cycle; each day brings news that may cause doubt and worry.
The landscape of the business world is ever-changing, making it hard to keep up to date.
Industry convergence, emerging competitors and changing nature of work is what we must face in this disruptive era. Moreover, digital expertise has become of top interest, leaving other skills play second fiddle.
New competition is too often invisible until it’s too late
But let’s travel back in time (not even that long ago!) when CxOs biggest worry was competitors emerging in the same sector. It was the time when you were able to see the competition coming.
In case of a failure you knew how to find a way out and it was relatively easy – just create a better or cheaper product/service or simply find more efficient ways to reach the market.
However, now it is more complex because CxO main concern is outsiders that invade the industry with completely different business model quickly becoming a success (for example, Uber).
Today the competition is often invisible until it is too late.
The boundaries of competition are becoming ambiguous
Now the walls that used to separate industries are collapsing. Industries are constantly being reshaped.
Nevertheless, the trend has its upsides and downsides. The upside is the opportunity to apply expertise of one sector to another.
Take, for example, the electric car giant Tesla that just recently entered the power sector with its new line of zero-carbon batteries for homes, businesses and utilities.
Another upside is enabling cross-sector customer experiences. Yet with such industry disruption caused by startups, customer satisfaction has become the main focus.
Prepare for digital invaders. Create a panoramic perspective. Be first, be best, or be nowhere.
It is undeniable that technologies bring ease to our lives. With such advancement we are able to provide better goods and services, efficient manufacturing techniques, sustainable energy sources and a lot more.
Yet such pace makes it hard for leaders to cope with the speedy development posing a risk to negatively affect businesses.
CHROs see a future in which the talent landscape is completely redefined
Within the next paragraphs we are going to view this topic through the CHRO (chief human resources officer) perspective, providing useful tips on how to thrive in this so called “age of disruption”.
With the help of Global C-suite Study Redefining Talent: The CHRO Point of View (601 CHROs worldwide interviewed) we were able to gather the most relevant information, revealing CHROs opinions on what the future of HR holds, as well as providing insights into how to be successful in these inconsistent times.
Industry convergence: Top tips for CHROs to cope with future changes
1. How to tackle the challenge?
CHROs note that industry convergence is currently the biggest trend reshaping the business world. Borders between industries are dissolving and while it provides opportunities for growth, it is also a threat causing more competition. Competition, however, is driven by technology advancement and market pressures.
- Identify the skills that your organization lacks
- Recruit members that can bring value
- Partner with third-party providers and other organizations for expertise
- Advance with technologies
2. How to attract and retain talent?
With technology development CHROs will have to look for new ways how to seek and manage their talents. Significant changes must be made in current recruitment practices. Outdated job advertisements, disturbing online applications and overwhelming selection process are all part of the history. Moreover, due to convergence organizations will have to learn how to broaden their appeal to attract and retain talents from other sectors.
- Sell the job instead of providing a long list of requirements
- Design employee experiences to appeal to individuals with diverse backgrounds
- Create pleasant workplace
“We’re now better placed to attract ‘rock stars.’ But it’s harder to keep such people because other companies want them, too.” –Hy Pomerance, CHRO, QBE North America, United States
3. How to use technology to enhance the employee experience?
Certain preparation is needed to enhance the employee experience and manage the changes within an organization more effectively. CHROs believe in three specific technologies – cloud computing, mobile solutions and the Internet of Things (IoT).
Above mentioned technologies will completely change the way business is going to be done in the near future.
- Share resources and collaborate effectively
- Access information “on the go”
- Beware of “device burnout” – do not bring work home
- Use “human cloud” – find an independent worker with the skills you’ve been looking for
- Manage the increasing volume of data
- Eliminate some forms of work
These technologies will also have notable impact on HR function and service delivery. Cloud computing will enable CHROs to provide better employee experiences offering many self-service options. Improved quality of the data and help with routine activities will allow CHROs to focus on more vital activities.
4. What should you do?
One thing is for sure – in-house sources alone will not be enough to provide the rapidly changing mix of skills organizations require. According to the study three main elements will thus be crucial: a flexible approach to talent acquisition, predictive analytics to make more accurate workforce decisions and social tools to capture employee output.
Use of third-party providers for contingent labor seems to be very common solution among CHROs. Flexible work plans, telecommuting and similar alternatives are also a popular choice. Noteworthy that increasing percentage of CHROS plan to address future skills gaps by retraining existing employees and bringing new staff on short term contracts.
Currently a small yet increasing number of CHROs relies on predictive analytics to manage their workforce.
- Create an effective analytics team – involve data architects, statistical modelers, story tellers
- Integrate HR function into the rest of the business
- Develop robust analytical models
- Use social tools to hear your employees
* * *
Industry boundaries are blurring, shifting the focus from individual products to cross-industry experiences.
Technological advances reshape the industries, bringing new competitors into play. Moreover, the nature of work is changing thus requiring a broader vision, technology improvements and cooperation with individuals from diverse backgrounds.
While it is a fundamental growth opportunity for organizations, CHROs across industries and regions must learn how to cope with these changes and have the confidence to breed success.
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