Written by Kronos intern Amanda Martineau. Amanda is an intern working with the SMB product marketing team on outreach, content marketing, and content development. She will be returning to the University of Massachusetts Lowell this fall where she is majoring in marketing & management.
Last month, Deloitte released its annual Global Human Capital Trends report titled “Leading the social enterprise: Reinvent with a human focus”. Much like last year’s report, this year’s report also focused on what’s called the “social enterprise”. But while last year’s report focused mainly on the what and the why behind the rise of the social enterprise, this year’s report takes this concept a step further to focus on the how – how can HR professionals actually lead this new enterprise?
It argues that in order to create value as a social enterprise, leaders must not only educate themselves on this organizational shift, but also act by fundamentally reinventing their businesses with a human focus.
Sounds a little easier said than done though right? That’s why I’m going to summarize the findings of this year’s report and also highlight three key takeaways on how you can transform your organization into this reinvented enterprise.
What is a social enterprise anyway?
Within the report, Deloitte defines a social enterprise as an organization whose mission combines revenue growth and profit with the need to respect and support its environment and stakeholder network. It’s the idea that while businesses do need to generate profits, they must do so by simultaneously improving the lives of their employees, customers, and communities.
This means taking steps beyond mission statements and social impact programs, although important, and actually transforming your organization into one that responds to and invests in the human capital trends that are shaping the world around it. The report breaks these trends into three parts:
1. The future of the workforce
The beginning of the report addresses the changes that are happening in job and work design and how leadership is evolving to incorporate these changes.
One of the biggest changes the report found was in what’s referred to as the “alternative workforce” – which includes freelancers, contractors, gig workers, and crowd workers. While traditionally the alternative workforce was considered a minor subsection of the workforce, it has now become mainstream. More than ever, people are working how they want, when they want. This means they’re expecting unprecedented levels of ease, independence and flexibility, but according to the study, only 8% of organizations have established processes for managing the expectations of this type of workforce.
The good news is that organizations can change this narrative by taking advantage of workforce management tools that provide features which support the needs of alternative workers, like visibility into timekeeping, flexible scheduling options, and employee self-service capabilities. By utilizing workforce management solutions with these features, you can effectively manage your entire workforce - whether they’re full time, part time, hourly, contingent, or gig workers.
2. The future of the organization
The next major challenge the report identifies is the need to improve the employee experience. It argues that the current concept of the employee experience falls short, because it fails to capture the increasing need for meaning in work that employees are craving.
In fact, while 84% of respondents rated improving the employee experience as crucial, only 11% said they thought their current reward systems were aligned with organizational and personal employee goals. What’s worse, 23% admitted that they didn’t actually know what their workers valued.
In other words, businesses are falling short. But why? According to the report, it’s because they’re failing to turn their employee experience into a human experience. It’s no longer enough just to offer competitive pay or fancy perks, workers are looking to fulfill human needs like purpose, belonging, and growth. They want to see the impact their work has on their personal goals, their teams, and the wider organization.
One way organizations can support this shift is by leveraging an HCM solution that enables employees to receive more frequent feedback on their work and track progress towards their goals. By doing so, you’ll be giving workers a sense of growth and purpose to a larger team, which in turn will boost employee engagement and organizational culture. It’s a win – win for everyone.
3. The future of HR
With a widening skills gap on the horizon and record low unemployment rates, recruiting qualified, top talent is becoming a harder challenge than ever for HR. That’s why, the report points out, internal talent mobility has become critical to future organizational success. In addition, workers are seeking organizations that can provide them with clear career paths and development opportunities. And, according to a study by Future Workplace, organizations that embrace internal mobility see a 49% increase in employee engagement and a 39% increase in employee productivity.
While most organizations have already recognized the ability of technology to help them improve external recruiting effectiveness, what’s still being overlooked is the usefulness of technology in developing internal candidates.
To fuel future growth, organizations must tap into their current workforce to identify and develop people with the required skills, knowledge, and potential to fill job openings. To do this, organizations can leverage an HCM solution that supports both internal mobility programs and succession planning in a single solution to help them develop internal talent for future roles.
In 2019, organizational transformation is no longer optional, it’s a requirement for your organization’s future sustainability. Learn how HCM technology can help you lead the social enterprise of the future here.