Driven by the ongoing digital revolution and demographic, political, and social forces, nearly 90 percent of HR and business leaders rate building the organization of the future as their highest priority. In its 2017 Global Human Capital Trends report, Rewriting the Rules for the Digital Age, Deloitte issues a call-to-action for companies to completely reconsider their organizational structure, talent and HR strategies to keep pace with digital disruption.
“Technology is advancing at an unprecedented rate and these innovations have completely transformed the way we live, work and communicate,” says Josh Bersin, Principal and founder, Bersin by Deloitte, Deloitte Consulting. ”Ultimately, the digital world of work has changed the rules of business. Organizations should shift their entire mind-set and behaviors to ensure they can lead, organize, motivate, manage and engage the 21st century workforce, or risk being left behind.”
More than 10,000 HR and business leaders in 140 countries participated in the report. The study—in its fifth year—reveals that leaders are turning to new organization models, which highlight the networked nature of today’s world of work. However, as business productivity often fails to keep pace with technological progress, Deloitte finds that HR is struggling to keep up, with only 35 percent of HR professionals rating their capabilities as “good” or “excellent.”
“As technology, artificial intelligence, and robotics transform business models and work, companies should start to rethink their management practices and organizational models,” says Brett Walsh, Global Human Capital Leader, Deloitte Global. “The future of work is driving the development of a set of ‘new rules’ that organizations should follow if they want to remain competitive.”
As the workforce evolves, organizations are focusing on networks of teams, and recruiting and developing the right people is more consequential than ever. Survey respondents point to talent acquisition as one of the biggest issues organizations face, with 81 percent of companies citing it as “very important” or “important.”
However, while Deloitte finds that cognitive technologies have helped leaders bring talent acquisition into the digital world, only 22 percent of survey respondents describe their companies as “excellent” at building a differentiated employee experience once talent is acquired. In fact, the gap between talent acquisition’s importance and the ability to meet the need increased by 14 percentage points over the last year.