HR Trends Priorities 2011
HR Trends & Priorities for 2011
McLean & Company
1
Executive Summary • Out of the top six HR areas surveyed, Employee Engagement was allocated the highest % of resources (people, time & budget) for 2011 at an average of 20%.
• Within Employee engagement, initiatives aimed at increasing employee engagement and employee retention strategies are the most popular.
• Manager development and coaching & mentoring top the priority list for Talent Management. • Under Talent Acquisition, onboarding practices are of highest priority. • Succession planning and workforce planning are critical initiatives in Organizational Planning. • Leadership development and change & conflict management top the list of HR Leadership, Governance & Strategy initiatives.
• Compensation & rewards was the area with both the lowest resource allocations and % of respondents indicating high priority initiatives.
• Diversity programs and social media for recruiting have the highest implementation rates of the top trends surveyed. Conversely, high potential employee programs have the lowest implementation rate of the organizations surveyed – however, it has the largest % of organizations planning an implementation.
McLean & Company
2
Research Methodology • In January and February of 2011, McLean & Company fielded a survey on the top trends and priorities in HR for this year.
• The survey asked HR professionals to indicate the percentage of resources they plan to allocate across six main HR areas, and then rate the priority of the initiatives within each of those areas.
Respondents by Job Title HR Consultant 16% C-Level with HR ownership 3%
VP of HR 13%
• Respondents were also asked their plans for some of the top trends in HR.
• The survey attracted a total of 116 responses.
HR Generalist/ Specialist 20%
HR Manager 25% HR Director 23%
Source: McLean & Company
N=116
• 64% of the responses came from HR professionals in a management role.
McLean & Company
3
HR Resource Allocations for 2011: Employee Engagement Tops the List • Respondents indicated
Resource Allocation Across Top 6 HR Areas
what % of resources (people, time & budget) their organization plans to allocate to the following HR areas for 2011.
engagement was at the top of the list, with an average of 20% of resources allocated to that area for 2011.
• Compensation & rewards was at the bottom of the list, with almost all respondents allocating less than 15% of their resources to it.
17.56%
Talent Acquisition
15.34%
Organizational Planning
13.67%
LeadershipGovernance Governance& & Leadership, StrategyStrategy
12.56%
Compensation & Rewards
Note: The line on the graph indicates the 95% confidence interval for the area. The square box indicates the average. McLean & Company
18.24%
Talent Management
HR Area
• Employee
20.15%
Employee Engagement
0%
5%
10%
15%
20%
25%
% Resources Allocated to Area Source: McLean & Company
N=116
4
Employee Engagement Results • Respondents were asked to indicate their organization’s 2011 Employee Engagement priorities for the list of initiatives in the graph to the right within Employee Engagement.
HR Priorities within Employee Engagement Employeeengagement engagementinitiatives initiatives Employee
49%
Employee retention strategies Employee retention strategies
• Almost half of respondents indicate that employee engagement initiatives are a high priority
• Employee retention strategies are a close second at 40%
• Related McLean & Company Research:
◦ ◦
Optimize Employee Engagement Surveys Identify & Select Employee Engagement Initiatives
40%
Highpotential potentialemployee employeeprogram program High
35%
Employeeengagement engagementsurveys surveys Employee
34%
Work/lifebalance balancestrategies strategies Work/life Culture&&diversity diversity Culture 0%
24% 21% 10% 20% 30% 40% 50% 60%
% indicating high priority area
Employee engagement is not over hyped. But it must have support from the business to “make it happen. If it is something that exists as HR's accountability only, it will fail. Top down support, then empowering employees to take accountability for their own engagement, as well as involving them in the decision making and implementation processes are key for making employee engagement initiatives work. -- HR Manager, Travel Services McLean & Company
5
Talent Management Results • Respondents were asked to indicate their
organization’s 2011 Talent Management priorities for the list of initiatives in the graph to the right within Employee Engagement.
• 65% of respondents indicated that manager development is a high priority area.
• Coaching and mentoring were a close second at 57%.
• Organizations are prioritizing the development of managers over individual employees.
• Related McLean & Company Research:
◦
◦ ◦
◦ ◦
Train Managers to Coach Their Employees to Better Performance Optimize the Performance of A, B, and C Players
HR Priorities within Talent Management Manager Managerdevelopment development
65%
Coaching & mentoring
57%
Employee development
52%
Individual Individualperformance performance management managementpractices practices
49%
Team performance management practices
36%
Career Careerplanning planning
35% 0%
10%
20%
30%
40%
50%
60%
70%
% indicating high priority area
Leverage Agile Goal Setting for Improved Employee Engagement & Performance Optimize the Current Performance Appraisal Program Create & Deliver Performance Appraisal Feedback to Drive Results
train them, you have the “ If you can’twrong managers. -- HR Representative, Manufacturing
McLean & Company
6
Talent Acquisition Results • Respondents were asked to indicate their
organization’s 2011 Talent Acquisition priorities for the list of initiatives in the graph to the right within Employee Engagement.
• 42% of respondents indicated that onboarding practices were a high priority initiative.
• Related McLean & Company Research:
◦
◦
Acquire the Right Hire with Effective Interviewing
Leverage & Optimize Social Media for Recruiting
HR Priorities within Talent Acquisition Onboarding Onboardingpractices practices
42%
Sourcing Sourcingstrategies strategies
38%
Selection Selection&&screening screeningpractices practices
30%
Interviewing practices Interviewing practices
27%
Employer branding Employer branding 0%
24% 10%
20%
30%
40%
50%
% indicating high priority area
Given how important hiring top people is to a company’s success, more attention and “more resources must be invested to make hiring a formal business process. The key to an interview’s effectiveness is the method with which it is prepared and delivered. – Smart Hiring, Robert W. Wendover McLean & Company
7
Organizational Planning Results • Respondents were asked to indicate their
organization’s 2011 Organizational Planning priorities for the list of initiatives in the graph to the right within Employee Engagement.
• Succession planning came up at the top of the list, with 53% of respondents indicating it is a high priority area.
• Crisis management was the lowest rated
HR Priorities within Organizational Planning Successionplanning planning Succession Workforceplanning planning Workforce
◦ ◦
43%
Organizational structures Organizational structures
36%
Workplace Workplace safety safety
35%
Employee Employeecollaboration collaborationinitiatives initiatives
20%
Job redesign
20%
area across all initiatives surveyed.
Crisis management Crisis management
• Related McLean & Company Research:
51%
Engage Employees with Career Development & Succession Planning Redesign Jobs for Improved Performance
9% 0% 10% 20% 30% 40% 50% 60%
% indicating high priority area
an extensive succession planning process with a goal of promoting from within, “We have but understand that with some roles hiring from the outside is optimal.
-- VP of HR, Retail McLean & Company
8
Leadership, Governance & Strategy Results • Respondents were asked to indicate their organization’s 2011 Leadership & Governance priorities for the list of initiatives in the graph to the right within Employee Engagement.
HR Priorities within Leadership & Development Leadership development Leadership development Change Change&& conflict conflict management management
leadership development initiatives are a high priority.
• On the flip side, corporate social responsibility initiatives were only a high priority area for 16% of respondents.
35%
HRstrategy strategydevelopment development HR
30%
HR metrics reporting HR metrics && reporting
24%
Information Systems (HRIS) HRHR Information Systems (HRIS)
23%
HR-business relationships HR-business relationships Corporatesocial socialresponsibility responsibility Corporate
• Related McLean & Company Research:
◦
43%
Legal & regulatory compliance Legal & regulatory compliance
• 63% of respondents indicated that
◦
63%
Get HR & the Business Engaged in a Strategic Partnership
18% 16%
0% 10% 20% 30% 40% 50% 60% 70%
% indicating high priority area
Select an HR Management System
Develop and train managers to be “Managers must become leaders. those leaders. -- VP of HR, Aviation Services McLean & Company
9
Compensation & Rewards Results • Respondents were asked to indicate their
organization’s 2011 Compensation & Reward priorities for the list of initiatives in the graph to the right within Employee Engagement.
• Both recognition initiatives and compensation structures had 38% of respondents indicating they are a high priority area.
• That said, this area was the only area surveyed that did not have an initiative with over a 40% high priority rating.
• Related McLean & Company Research:
◦
Retain Talent by Mastering the Compensation Discussion
HR Priorities within Compensation & Rewards Recognitioninitiatives initiatives Recognition
38%
Compensationstructures structures Compensation
38%
Employeewellness wellnessprograms programs Employee
29%
Benefits programs Benefits programs
29%
Bonus Bonusprograms programs
22%
Sales Salescompensation compensation
22%
Executive Executivecompensation compensation
16%
0% 5% 10% 15% 20% 25% 30% 35% 40%
% indicating high priority area
want to be validated in their own perceptions of “Why recognition? I think it is that people their performance.
– Director, Professional Services Firm McLean & Company
10
Summary of Top Priorities: Compare Your List Against Your Peers Initiatives with Over 40% High Priority Key Takeaways:
• Across all HR areas surveyed, manager development had the highest percentage of respondents indicating it is a high priority area.
• Leadership development came a close second, and coaching and mentoring followed in third place.
Employee Engagement
Talent Management
Talent Acquisition
Employee engagement initiatives – 49% Employee retention strategies – 40% Manager development– 65% Coaching and mentoring– 57% Employee development – 52% Individual performance management – 49%
Onboarding practices – 42%
Organizational Planning
Succession planning– 51% Workforce planning– 43%
Leadership Governance & Strategy
Leadership development– 63% Change and conflict management – 43%
• The survey results indicate that organizations are placing a big emphasis on developing the managers and leaders within their organization.
Compensation & Rewards McLean & Company
(None over 40%)
11
Looking Forward: Diversity Programs & Social Media for Recruiting Top Trends • Diversity programs have been implemented at 40% of the organizations surveyed with another 31% currently planning, evaluating or implementing.
• 31% of organizations surveyed have already implemented social media for recruiting. A further 48% are either currently planning, evaluating or implementing.
• Although telecommuting programs are implemented in 30% of the organizations surveyed, it had the highest percent of organizations with no plans.
• Conversely, high potential employee programs have the lowest implementation rate at16% of the organizations surveyed – however, it has the largest % of organizations planning an implementation.
Implementation Plans on Top HR Trends Diversity programs programs Diversity
40%
Social media
15%
5%
8%
29%
Social mediafor for recruiting recruiting
31%
27%
9% 5% 7%
Telecommuting programs
30%
7% 7% 4%
49%
Telecommuting programs
Social for Social media formedia employer brandingbranding employer Mentoringprograms programs Mentoring
Highemployee potential High potential programs employee programs 0%
28%
15%
24%
15%
16%
16%
29%
20%
17%
14%
40%
7% 9%
12%
14%
21%
24%
11%
22%
11%
60%
80%
16%
100%
Implemented Currently planning/implementing
Currently evaluating an implementation Planning to implement within the next 12 months Planning to implement in 1+ years No plans
McLean & Company
12
Start Your Free Trial: http://hr.mcleanco.com
McLean & Company
13
McLean & Company
1
Executive Summary • Out of the top six HR areas surveyed, Employee Engagement was allocated the highest % of resources (people, time & budget) for 2011 at an average of 20%.
• Within Employee engagement, initiatives aimed at increasing employee engagement and employee retention strategies are the most popular.
• Manager development and coaching & mentoring top the priority list for Talent Management. • Under Talent Acquisition, onboarding practices are of highest priority. • Succession planning and workforce planning are critical initiatives in Organizational Planning. • Leadership development and change & conflict management top the list of HR Leadership, Governance & Strategy initiatives.
• Compensation & rewards was the area with both the lowest resource allocations and % of respondents indicating high priority initiatives.
• Diversity programs and social media for recruiting have the highest implementation rates of the top trends surveyed. Conversely, high potential employee programs have the lowest implementation rate of the organizations surveyed – however, it has the largest % of organizations planning an implementation.
McLean & Company
2
Research Methodology • In January and February of 2011, McLean & Company fielded a survey on the top trends and priorities in HR for this year.
• The survey asked HR professionals to indicate the percentage of resources they plan to allocate across six main HR areas, and then rate the priority of the initiatives within each of those areas.
Respondents by Job Title HR Consultant 16% C-Level with HR ownership 3%
VP of HR 13%
• Respondents were also asked their plans for some of the top trends in HR.
• The survey attracted a total of 116 responses.
HR Generalist/ Specialist 20%
HR Manager 25% HR Director 23%
Source: McLean & Company
N=116
• 64% of the responses came from HR professionals in a management role.
McLean & Company
3
HR Resource Allocations for 2011: Employee Engagement Tops the List • Respondents indicated
Resource Allocation Across Top 6 HR Areas
what % of resources (people, time & budget) their organization plans to allocate to the following HR areas for 2011.
engagement was at the top of the list, with an average of 20% of resources allocated to that area for 2011.
• Compensation & rewards was at the bottom of the list, with almost all respondents allocating less than 15% of their resources to it.
17.56%
Talent Acquisition
15.34%
Organizational Planning
13.67%
LeadershipGovernance Governance& & Leadership, StrategyStrategy
12.56%
Compensation & Rewards
Note: The line on the graph indicates the 95% confidence interval for the area. The square box indicates the average. McLean & Company
18.24%
Talent Management
HR Area
• Employee
20.15%
Employee Engagement
0%
5%
10%
15%
20%
25%
% Resources Allocated to Area Source: McLean & Company
N=116
4
Employee Engagement Results • Respondents were asked to indicate their organization’s 2011 Employee Engagement priorities for the list of initiatives in the graph to the right within Employee Engagement.
HR Priorities within Employee Engagement Employeeengagement engagementinitiatives initiatives Employee
49%
Employee retention strategies Employee retention strategies
• Almost half of respondents indicate that employee engagement initiatives are a high priority
• Employee retention strategies are a close second at 40%
• Related McLean & Company Research:
◦ ◦
Optimize Employee Engagement Surveys Identify & Select Employee Engagement Initiatives
40%
Highpotential potentialemployee employeeprogram program High
35%
Employeeengagement engagementsurveys surveys Employee
34%
Work/lifebalance balancestrategies strategies Work/life Culture&&diversity diversity Culture 0%
24% 21% 10% 20% 30% 40% 50% 60%
% indicating high priority area
Employee engagement is not over hyped. But it must have support from the business to “make it happen. If it is something that exists as HR's accountability only, it will fail. Top down support, then empowering employees to take accountability for their own engagement, as well as involving them in the decision making and implementation processes are key for making employee engagement initiatives work. -- HR Manager, Travel Services McLean & Company
5
Talent Management Results • Respondents were asked to indicate their
organization’s 2011 Talent Management priorities for the list of initiatives in the graph to the right within Employee Engagement.
• 65% of respondents indicated that manager development is a high priority area.
• Coaching and mentoring were a close second at 57%.
• Organizations are prioritizing the development of managers over individual employees.
• Related McLean & Company Research:
◦
◦ ◦
◦ ◦
Train Managers to Coach Their Employees to Better Performance Optimize the Performance of A, B, and C Players
HR Priorities within Talent Management Manager Managerdevelopment development
65%
Coaching & mentoring
57%
Employee development
52%
Individual Individualperformance performance management managementpractices practices
49%
Team performance management practices
36%
Career Careerplanning planning
35% 0%
10%
20%
30%
40%
50%
60%
70%
% indicating high priority area
Leverage Agile Goal Setting for Improved Employee Engagement & Performance Optimize the Current Performance Appraisal Program Create & Deliver Performance Appraisal Feedback to Drive Results
train them, you have the “ If you can’twrong managers. -- HR Representative, Manufacturing
McLean & Company
6
Talent Acquisition Results • Respondents were asked to indicate their
organization’s 2011 Talent Acquisition priorities for the list of initiatives in the graph to the right within Employee Engagement.
• 42% of respondents indicated that onboarding practices were a high priority initiative.
• Related McLean & Company Research:
◦
◦
Acquire the Right Hire with Effective Interviewing
Leverage & Optimize Social Media for Recruiting
HR Priorities within Talent Acquisition Onboarding Onboardingpractices practices
42%
Sourcing Sourcingstrategies strategies
38%
Selection Selection&&screening screeningpractices practices
30%
Interviewing practices Interviewing practices
27%
Employer branding Employer branding 0%
24% 10%
20%
30%
40%
50%
% indicating high priority area
Given how important hiring top people is to a company’s success, more attention and “more resources must be invested to make hiring a formal business process. The key to an interview’s effectiveness is the method with which it is prepared and delivered. – Smart Hiring, Robert W. Wendover McLean & Company
7
Organizational Planning Results • Respondents were asked to indicate their
organization’s 2011 Organizational Planning priorities for the list of initiatives in the graph to the right within Employee Engagement.
• Succession planning came up at the top of the list, with 53% of respondents indicating it is a high priority area.
• Crisis management was the lowest rated
HR Priorities within Organizational Planning Successionplanning planning Succession Workforceplanning planning Workforce
◦ ◦
43%
Organizational structures Organizational structures
36%
Workplace Workplace safety safety
35%
Employee Employeecollaboration collaborationinitiatives initiatives
20%
Job redesign
20%
area across all initiatives surveyed.
Crisis management Crisis management
• Related McLean & Company Research:
51%
Engage Employees with Career Development & Succession Planning Redesign Jobs for Improved Performance
9% 0% 10% 20% 30% 40% 50% 60%
% indicating high priority area
an extensive succession planning process with a goal of promoting from within, “We have but understand that with some roles hiring from the outside is optimal.
-- VP of HR, Retail McLean & Company
8
Leadership, Governance & Strategy Results • Respondents were asked to indicate their organization’s 2011 Leadership & Governance priorities for the list of initiatives in the graph to the right within Employee Engagement.
HR Priorities within Leadership & Development Leadership development Leadership development Change Change&& conflict conflict management management
leadership development initiatives are a high priority.
• On the flip side, corporate social responsibility initiatives were only a high priority area for 16% of respondents.
35%
HRstrategy strategydevelopment development HR
30%
HR metrics reporting HR metrics && reporting
24%
Information Systems (HRIS) HRHR Information Systems (HRIS)
23%
HR-business relationships HR-business relationships Corporatesocial socialresponsibility responsibility Corporate
• Related McLean & Company Research:
◦
43%
Legal & regulatory compliance Legal & regulatory compliance
• 63% of respondents indicated that
◦
63%
Get HR & the Business Engaged in a Strategic Partnership
18% 16%
0% 10% 20% 30% 40% 50% 60% 70%
% indicating high priority area
Select an HR Management System
Develop and train managers to be “Managers must become leaders. those leaders. -- VP of HR, Aviation Services McLean & Company
9
Compensation & Rewards Results • Respondents were asked to indicate their
organization’s 2011 Compensation & Reward priorities for the list of initiatives in the graph to the right within Employee Engagement.
• Both recognition initiatives and compensation structures had 38% of respondents indicating they are a high priority area.
• That said, this area was the only area surveyed that did not have an initiative with over a 40% high priority rating.
• Related McLean & Company Research:
◦
Retain Talent by Mastering the Compensation Discussion
HR Priorities within Compensation & Rewards Recognitioninitiatives initiatives Recognition
38%
Compensationstructures structures Compensation
38%
Employeewellness wellnessprograms programs Employee
29%
Benefits programs Benefits programs
29%
Bonus Bonusprograms programs
22%
Sales Salescompensation compensation
22%
Executive Executivecompensation compensation
16%
0% 5% 10% 15% 20% 25% 30% 35% 40%
% indicating high priority area
want to be validated in their own perceptions of “Why recognition? I think it is that people their performance.
– Director, Professional Services Firm McLean & Company
10
Summary of Top Priorities: Compare Your List Against Your Peers Initiatives with Over 40% High Priority Key Takeaways:
• Across all HR areas surveyed, manager development had the highest percentage of respondents indicating it is a high priority area.
• Leadership development came a close second, and coaching and mentoring followed in third place.
Employee Engagement
Talent Management
Talent Acquisition
Employee engagement initiatives – 49% Employee retention strategies – 40% Manager development– 65% Coaching and mentoring– 57% Employee development – 52% Individual performance management – 49%
Onboarding practices – 42%
Organizational Planning
Succession planning– 51% Workforce planning– 43%
Leadership Governance & Strategy
Leadership development– 63% Change and conflict management – 43%
• The survey results indicate that organizations are placing a big emphasis on developing the managers and leaders within their organization.
Compensation & Rewards McLean & Company
(None over 40%)
11
Looking Forward: Diversity Programs & Social Media for Recruiting Top Trends • Diversity programs have been implemented at 40% of the organizations surveyed with another 31% currently planning, evaluating or implementing.
• 31% of organizations surveyed have already implemented social media for recruiting. A further 48% are either currently planning, evaluating or implementing.
• Although telecommuting programs are implemented in 30% of the organizations surveyed, it had the highest percent of organizations with no plans.
• Conversely, high potential employee programs have the lowest implementation rate at16% of the organizations surveyed – however, it has the largest % of organizations planning an implementation.
Implementation Plans on Top HR Trends Diversity programs programs Diversity
40%
Social media
15%
5%
8%
29%
Social mediafor for recruiting recruiting
31%
27%
9% 5% 7%
Telecommuting programs
30%
7% 7% 4%
49%
Telecommuting programs
Social for Social media formedia employer brandingbranding employer Mentoringprograms programs Mentoring
Highemployee potential High potential programs employee programs 0%
28%
15%
24%
15%
16%
16%
29%
20%
17%
14%
40%
7% 9%
12%
14%
21%
24%
11%
22%
11%
60%
80%
16%
100%
Implemented Currently planning/implementing
Currently evaluating an implementation Planning to implement within the next 12 months Planning to implement in 1+ years No plans
McLean & Company
12
Start Your Free Trial: http://hr.mcleanco.com
McLean & Company
13
