Human Capital Trends
Changes in organisational design
Now in its fourth year, Deloitte’s Global Human Capital Trends is one of the largest longitudinal studies of talent, leadership, and HR challenges and readiness around the world. Over 7,000 responses from 130 countries were gathered and analysed, from which the key theme of the report emerged – “The new organisation: Different by design”.
Leadership, employee engagement and retaining top talent continue to be prominent issues facing organisations, with executives now turning to organisational re-design as a solution to these problems. The days of the top-down hierarchy are slowly coming to an end as a new mode of organisational design has emanated: a “network of teams”, which focuses on open communication, rapid information flow, and a high degree of empowerment. Coined “the new organisation”, focus is being placed on creating and nurturing empowered teams, supported by a new model of management, and headed by younger, more innovative and mobile leaders. This generation of workers expect to move quickly up the career ladder, work for multiple employers and demand an enriching employee experience. Organisations must adapt to create a flexible and compelling workplace in order to support, manage and, ultimately, engage with this new workforce.
HR’s role in an organisation now spans far beyond the traditional focus on talent management, process, and transactions as it faces increasing pressure from business leaders to drive innovative talent solutions, improve alignment with business imperatives, and turn data into actionable insights. In order to effectively implement a re-design, HR teams must evolve to include design thinking, people analytics and behavioural economics into their core function. Alongside this, digital technologies must be embraced and utilised to simplify and improve the work experience, as the rate of change of technology innovation accelerates at an increasingly rapid pace.
HR leaders who move aggressively to address these trends will likely gain an advantage over their competitors and find themselves on the winning side in the global competition for talent.