People First: What are the key HR trends for 2018?

We’re nearly at the end of January and with the year still in its infancy optimism still abounds with regards to the likely growing impact of HR in 2018. Although as I am typing this in San Francisco in the run up to co-chairing People Analytics & Future of Work, my confidence may just be a case of jet lag combined with wishful thinking. 

So, with a cup brimming full of sanguinity here are some trends I expect to see more of in the HR space in 2018.

1. PEOPLE FIRST – FROM 'ONE SIZE FITS ALL' TO 'ONE SIZE FITS ONE'

Let’s start with what is for me the most welcome and indeed key trend. Soothsayers have long been urging HR to take a leaf out of marketing’s book and it seems that the message is finally getting through. Recognition that creating bespoke and personalised experiences for employees (and candidates) is not only good for workers but the business too is becoming common currency. This represents a radical shift from the typical ‘one-size fits all’ HR programs of the past. Companies like Cisco, IBM, Unilever and Salesforce are already doing this by combining people data with machine learning to provide personalised experiences for employees in areas such as talent acquisition, onboarding, learning and internal mobility. Many more companies are using Chatbots to enrich the employee/candidate experience (as well as to streamline HR operations). Employees expect consumer like experiences at work. Technology coupled with data enables organisations to provide these experiences. Critically the more astute companies and business leaders recognise that improving experience and better understanding employee sentiment leads to better results.

2. PRODUCTIVITY, TEAMS & ORGANISATIONAL NETWORK ANALYSIS (ONA)

In Bersin by Deloitte’s HR Technology Disruptions for 2018 report, Josh Bersin writes about the shift towards systems of productivity as well as the growing desire by business leaders to understand and improve team effectiveness. Deloitte’s 2017 Global Human Capital Trends report revealed that 48% of companies are experimenting with Organisational Network Analysis. This matches my own experience of speaking to people analytics leaders, where ONA is the innovation they are most interested in. As we seek to understand the power of social capital, networks and connectors within organisations, so the rise of ONA will continue.       

Figure 1: EXAMPLE OF ONA: Quantified evidence of leaderships behaviours (Source: Greg Newman)

3. ADOPTION OF PEOPLE ANALYTICS IS BEGINNING TO SPIKE (HOORAY!)

Up until now the rise in adoption of people analytics has been steady rather than spectacular. I expect this to change in 2018 as analytics is integral to creating personalised employee experiences (prediction #1), properly harnessing ONA (prediction #2) and is the centrepiece of digital HR transformation. Whilst HR continues to struggle with people analytics particularly in areas such as creating an analytical culture, I sense a breakthrough is near. I certainly expect to see evidence of this over the next two days at People Analytics & The Future of Work in San Francisco.

4. THE SCOPE OF PEOPLE ANALYTICS IS BROADENING

Not only is adoption likely start to spike in 2018, but the scope of work covered by the discipline is also broadening. Up until now the bulk of people analytics projects have largely focused on driving better business outcomes and traditional employees. This ecosystem is set to expand to incorporate contractors, freelancers and automation (hand in hand with strategic workforce planning and skills analysis). Moreover, expect to see more projects concentrated on improving employee experience (see #1) and wellbeing as well as team performance (in concert with ONA – trend #2). A good illustration of how the discipline of people analytics is evolving is provided below in Figure 2, which you can read more on in ‘People Analytics 3.0’ by Al Adamsen.

FIGURE 2: The evolution of people analytics (Source: Al Adamsen)

5. GDPR MOVES THE ETHICS & PRIVACY DISCUSSION IN THE RIGHT DIRECTION

The general consensus thus far about the impending EU General Data Protection Regulations (GDPR), which comes into effect in May 2018, is that it will place yet further restrictions on organisations when it comes to handling people data. But is this an overly negative mindset? I think so. A more positive way of looking at GDPR is that it will force companies to put employees first when it comes to collecting, storing and analysing data. If you can’t articulate the benefits to employees of collecting and analysing their data then don’t do the project could become the mantra. So, whilst there will undoubtedly be short-term pain for HR in complying with the GDPR, the mid-long term gain could be that it moves the ethics and privacy discussion in the right direction. Is that really such a bad thing?

6. EMPLOYEE WELLNESS IS NO LONGER TABOO

Perhaps it is the renewed focus on productivity and creating employee experiences. Maybe it is the increasing weight of evidence linking employee engagement and wellness to business results (see example here from Thomas Rasmussen). Whatever the answer it is refreshing to see that the subject of wellbeing and mental health is no longer taboo. In Josh Bersin’s blog highlighting the HR Technology Disruptions for 2018, he describes the market for wellbeing tools as “the next big thing”. With much of the commentary around the future of work centred on humans being displaced by machines, this is uplifting to see. Expect to see more companies providing their employees with the tools, data and “nudges” to support exercise, mental health, work/life balance and consequently motivation and happiness.   

7. BEHAVIOURAL ECONOMICS ENTERS THE WORKPLACE

Another example of the “people first” approach companies are increasingly adopting with regards to employees comes in the area of behavioural economics. Once again, HR is playing catch up with marketing here as companies have long sought to understand and influence consumer behaviour. Whilst examples in HR are still in short supply, I know a number of people analytics teams that are experimenting in this area. One of these is Google (watch Prasad Setty in the video below and read this article by Laszlo Bock) where much of the focus of the people analytics team is on research that helps educate Googlers on how they make decisions and to help them make better ones over time. Expect to hear more about companies researching the impact of behaviour on employees, teams and organisations.  

This is a revised and abridged version of my “10 Predictions for HR in 2018”, which was first published on UNLEASH News in December 2017

FURTHER READING

For more on the trends outlined above and similar, I recommend consuming the assets below.

• HR Technology Disruptions for 2018: Productivity, Deign & Intelligence Reign – Josh Bersin
• People Analytics 3.0 – Al Adamsen
• Nudges, Juice Cleanses, and the Shameful Psychology of Why (Most) Resolutions Have Failed by Now – Laszlo Bock
• Engagement Drives Performance: Evidence from People Analytics - Thomas Rasmussen
• Rewriting the rules for the Digital Age: 2017 Global Human Capital Trends Report – Deloitte
• Extending Expertise: How Cognitive Computing will transfer HR and the Employee Experience – IBM Institute of Business Value
• Why Informal networks are set to revolutionize HR and People Analytics – Greg Newman
• The WHAT and HOW of a Digital HR Strategy - Volker Jacobs
• Ethics & Privacy in Workforce Analytics - Jonathan Ferrar
• What the EU’s General Data Protection Regulation Means for You - Shane Gray
• Talent Strategy In The Data Age: 5 Trends To Watch In 2018 - Dave Weisbeck
• What's next? 2018 Disruptions in HR - Dave Ulrich
• 8 Major HR Trends for 2018 - Tom Haak
• To nudge or not to nudge? - Rob Gray
• The "employee-employer data-relationship": Who owns it? - Arun Sundar

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ABOUT THE AUTHOR

David is a globally recognised and respected influencer, speaker and writer on people analytics, data-driven HR and the future of work. He has spoken at and/or chaired conferences in 25+ cities around the globe over the last 18 months including Sydney, London, Paris, Singapore, New York, San Francisco, Moscow, Las Vegas, Helsinki, Amsterdam and Berlin (see example keynote speech in the image below). Additionally, David also works closely with people analytics and senior HR leaders throughout the world. In combination, this imbues David with a unique perspective and insight into what's working, what's not, and what's forthcoming in the field of people analytics.

David has received a number of industry accolades including winning Best Writer at the HR Tech Writers’ Awards, being included as one of 10 Power Profiles for HR by LinkedIn and is regularly included in influencer lists on people analytics, HR and the future of work.

David is chairing, speaking and/or attending the following conferences between now and the end of April 2018. If you are going to one of these conferences and would like to meet up with David or you would like to book him to speak at a conference, please contact David via LinkedIn or by email on green.dr@gmail.com:

• People Analytics & Future of Work, San Francisco (1-2 Feb)
• Employee Experience Bootcamp, Lisbon (8 Feb)
• UNLEASH (HR Tech World), London (20-21 Mar)
• Wharton People Analytics Conference, Philadelphia (22-23 Mar)
• People Analytics World, London (11-12 Apr)
• HR & People Analytics Forum, Budapest (17-18 Apr)

Connect with David on LinkedIn, follow him on Twitter and Slideshare as well as reading his blogs here on LinkedIn Pulse and also on UNLEASH and ERE.

Keywords: HR, Human Resources, HR Analytics, People Analytics, Talent, Recruiting, Hiring, Talent Acquisition, Talent Management, HR Metrics, Cost Per Hire, Workforce Analytics, Talent Analytics, Data Driven HR, Employee Engagement, Performance Management, Future of Work, Quality of Hire, Evidence based HR, HR Open Source, #HROS, Cognitive HR, Cognitive Computing, HR Technology, Flight Risk, Predictive Analytics, People Analytics Conferences 2018