Gartner Reimagine HR 2018, Orlando.
In the past two years, issues related to diversity and inclusion in the workplace have appeared with increasing frequency in headlines, legislation, and shareholder earnings calls, underscoring the growing importance of D&I as a strategic priority for businesses. While it’s encouraging that CEOs and investors are paying more attention to D&I, this trend also puts more pressure on D&I leaders to create effective, sustainable strategies with direct impact on the organization’s priority concerns.
In a panel discussion at Gartner’s ReimagineHR event in Orlando last week, Gartner’s Vice President of Inclusion and Engagement, Rajiv Desai, moderated a discussion with a panel of D&I leaders at major companies on the practical lessons they have learned in adapting their D&I strategies to business needs. Our panelists included Lori McAdoo, Global Lead–Inclusion and Diversity at Alcoa Corporation, and Vanessa Abrahams-John, Executive Director, Global Diversity, Inclusion and Talent Acquisition at Praxair, Inc. While Alcoa and Praxair have taken different approaches to evolving their D&I strategy, both our panelists emphasized the need for D&I leaders to build networked teams in order to create sustainable strategies, and shared two specific ways they are integrating teamwork into their D&I strategies.
Embedding D&I Strategy into Business Processes
A key theme in both panelists’ success stories was that D&I strategy is not only about programming, but also about embedding D&I into the heart of business processes. This requires intentionally engaging senior leaders to increase their buy-in and help them take action on D&I efforts.
Alcoa’s effort to integrate D&I principles into the business started in a familiar place: building the business case for why diversity matters to everyone, not just the D&I team or diverse employees. McAdoo explained that to gain buy-in, Alcoa led with respect because, “In a practical sense, it is hard to disagree with the general principle of respecting others.” By evolving the company culture into one where all individuals matter, their D&I principles organically shifted to a D&I functional strategy that supported key business goals. However, integrating D&I into the business sometimes does come with changes to policies and procedures to support its integration. For example, Alcoa changed an operating policy to support this new inclusive culture, adjusting shift lengths from twelve hours to eight hours to better support parents and caregivers. By having policies and procedures that align with cultural values of inclusion, Alcoa was able to treat D&I as a business necessity, not just a “nice-to-have.”
Gartner Reimagine HR 2018, Orlando.
The digital transformation of learning and development offers HR leaders new opportunities to embed learning within their talent strategies and make the business case for L&D investments crystal clear. Part of the promise of digital learning comes with the application of data and analytics, enabling organizations to measure and communicate the impact of these programs more precisely than ever before. Unfortunately, as with all new technologies, the rapid emergence of new options can be overwhelming, not every solution is right for every business, and adopting a technology without a clear understanding of how it will generate value can be a very expensive mistake.
To survey this new landscape of learning analytics, Justin Taylor, Director, Talent Solutions at Gartner, moderated a panel discussion at our ReimagineHR conference in Orlando on Monday, bringing together Patti Phillips, Ph.D, President and CEO of the ROI Institute; Dave Vance, Ph.D, Executive Director of the Center for Talent Reporting; and Kimo Kippen, a former Chief Learning Officer at Hilton. The conversation covered the range of new technologies emerging in this space, the opportunities they provide, and the challenge of figuring out how to take advantage of those opportunities.
When considering an investment in learning analytics, the L&D function should keep a few strategic considerations in mind. Based on Monday’s discussion, here are a few of the key questions leaders should ask themselves:
What is your objective?
There are a number of technologies currently on the market that apply analytics to L&D in different ways and to different ends. There’s adaptive testing, in which training modules and skill assessments automatically adapt to each individual’s level of ability. Learning record stores and xAPI record and track learning experience data, allowing organizations to track the progress of learning employee more closely and draw more insights from that data. Learning experience platforms offer new ways of delivering learning to employees on an individualized, self-directed basis. Natural language processing, machine learning, and augmented and virtual reality are also finding applications in learning.
With all these options out there, the panelists agreed, it’s important for an organization to identify just what they hope to get out of learning analytics before buying a new piece of enterprise technology. Don’t chase a shiny toy, Kippen advised, but ask what the business objective is and whether the investment is worth it. You might find that the extra dollar is better spent on fundamentals, Vance added, as new technology won’t fix more fundamental problems in your L&D program. “Without algebra,” he analogized, “you’re not ready for the calculus.”
As shown in a growing body of research, including our work at Gartner, companies that invest in diversity see bottom-line benefits including greater innovation and ability to penetrate new markets. Organizations that create inclusive work environments, furthermore, accrue more of these benefits than those that focus on diversity alone. But if inclusion is the key to unleashing the value of diversity, it can also be a heavier lift: Our research shows that most employees—especially frontline employees—don’t think their managers successfully foster an inclusive work environment.
Creating an inclusive environment means, in part, mitigating the impact of conscious and unconscious bias on talent processes like hiring, promotion, and performance management. Most organizations attack this challenge through anti-bias training, which can bolster employees’ confidence in diversity and inclusion efforts but often falls short of bridging the gap between increasing managers’ awareness of bias and actually changing their behavior. Training targets attitudes as opposed to actions, its effects diminish over time, and it requires significant effort and expense to implement at scale.
An essential lesson from our research is that best-practice D&I initiatives don’t just train managers in how to avoid bias, but actually embed bias mitigation into those talent processes. Accordingly, there is now a growing movement within the D&I community to complement anti-bias training with “inclusion nudges”: soft, non-intrusive mental pushes that help us make more objective decisions and affects predictable behaviors to make them more inclusive.
At Gartner’s ReimagineHR conference in Orlando, Florida on Sunday, Gartner’s Jeanine Prime led a panel discussion with Lorelei Whitney, Assistant Vice President Human Resources at Cargill; and Eric Dziedzic, Director, Diversity and Inclusion at Amgen, about their experiences implementing inclusion nudges at their organizations.
What does an inclusion nudge look like?
Digitalization means much more for organizations than the adoption of digital technologies. It is a holistic change event that affects many fundamental pillars of how our businesses operate, including our people processes. One of these implications touches on how we select, develop, and deploy leaders, which has inspired a lot of concerned chatter about new “digital leadership” competencies that will make the most effective leaders of today and tomorrow dramatically different from those of the pre-digital era.
At Gartner’s ReimagineHR conference in Orlando on Monday, George Penn, VP and Team Manager at Gartner, facilitated a panel discussion with three experts in talent acquisition and development, drawing out their insights on how leadership really is changing in this new age, and which of these supposed changes are overhyped. Our panelists included Julie Loubaton, VP, Talent Acquisition at Keurig-Dr. Pepper; Christopher Lubrano, VP, Leadership and Organization Development at International Flavors and Fragrances; and Hari Abburi, VP, Global Talent at Dawn Food Products. Here are some key takeaways from Monday’s conversation:
Leadership fundamentals aren’t going anywhere
Foundational leadership qualities are still essential, Loubaton said. Businesses are, as always, looking for great strategic thinkers. Creativity, communication skills, and vision are as important as ever, the panelists noted, but these are not new. Lubrano also stressed the importance of fundamentals: Leaders today need a strong ethical foundation and an ability to connect with people and establish a sense of community among their team members. Again, these competencies have always been valuable elements of a managerial skill set. Strategic vision, creative thinking, and interpersonal skills remain table stakes for business leaders and most likely, always will.
So what is new?
Agility, adaptability, and the ability to lead fast-paced change are the key skills that are becoming more important for leaders in digital enterprise, the panelists said. Loubaton said her organization was looking for industry disruptors, who understand how to leverage new technology to upend traditional ways of doing business in their field and are not afraid to take that leap. Agile thinkers who are comfortable operating in a fast-paced, high-tech environment are becoming more valuable. Lubrano emphasized the importance of change management skills: creating urgency, maintaining focus, and clearing the path to new ways of working. The accelerating pace of change, Abburi added, means that while strategic planning skills are still fundamental, leaders now have to be able to formulate and execute strategies on a shorter cycle.
In his keynote address at the opening of Gartner’s ReimagineHR conference in Orlando, Florida on Sunday, Gartner Group Vice President Brian Kropp shared a very salient figure with the hundreds of HR executives gathered in the room: 67 percent of CEOs tell us that if their organization does not make significant upgrades to its digital capabilities by 2020, it will no longer be competitive. “And if you work for one of the 33 percent,” Kropp told the attendees, “start polishing your résumés,” because those two-thirds of CEOs are probably right.
Digitalization is one of the most pressing challenges facing businesses today, and it’s not hard to see why. When CEOs talk about digitalization—in meetings, in employee communications, and increasingly on calls with investors—they frame it as a means of driving increased efficiency, productivity, and growth, the better to compete in a fast-paced and constantly changing business environment. However, Gartner research has shown that over the past five years, employees are exhibiting dwindling rates of discretionary effort: Just at the moment when organizations need to get the best out of their people, fewer of them are going above and beyond the call of duty. Meanwhile, labor markets in the US, Europe, and around the world are historically tight, so organizations have to work harder to find the right people and hold on to the valuable talent they already have.
As a result of these trends, HR leaders today find themselves in a situation where the CEO is demanding improved performance from employees, while employees are demanding an easier and more seamless experience at work that matches the app-driven, on-demand experience they are increasingly used to in their personal lives. Digital solutions are needed to meet these demands, but those solutions involve much more than merely adopting new technology; fundamental aspects of the way the organization works need to be rethought and redesigned for a digital world. HR has an enormously valuable role to play in ensuring a successful transition into the digital enterprise, but it’s not always obvious how to achieve that goal, and many organizations have been going about it the wrong way.
“What does digitalization mean to you?” Prompted with this question in a poll, Sunday’s audience responded with words like “efficiency,” “easy,” “seamless,” “simplicity,” and “experience.” These answers reflect HR’s unique mission today of driving business outcomes while (or better yet, by) improving the employee experience. Here are five of the key challenges posed by this new environment, and what—in brief—HR can do to tackle them:
When we think of the “gig economy,” we usually think of platforms like Uber, Deliveroo, Fiverr, or Freelancer.com, which offer users flexible, contingent work on a piece or project basis. Taking a broader view, however, the advent of the gig economy has also had an impact on the way traditional employers think about meeting their talent needs. In our research at Gartner, over the past several years we have seen a number of organizations experiment with new models of hiring, engaging, and assigning workers, inspired by the gig economy. At our ReimagineHR event in London last week, Gartner Practice Leader Thomas Handcock walked HR leaders through several of these models and discussed how they might leverage them in their organizations as well.
Internal Career Marketplaces
Compelling career paths and opportunities to learn and grow within the organization are increasingly important aspects of the employee value proposition, particularly—though by no means exclusively—for Millennial employees. The stereotype of the Millennial job-hopper reflects the notable desire among employees of this generation for a greater variety of experiences in their careers. If your organization can’t offer employees this range of experiences and opportunities to acquire new skills, they are likely to seek them elsewhere: Lack of development opportunities is among the leading drivers of attrition for employees worldwide, Gartner’s Global Talent Monitor data show.
To address this demand for development and variety, innovative employers are making it easier for their workers to find their next job within the company rather than outside it, through internal career marketplaces. These marketplaces, which at companies like HCL Technologies operate through digital platforms, can help employees plot their career paths and understand what internal moves they need to make to reach the position they desire. This allows them to develop their careers more rapidly or grow in new directions more easily without changing employers. For the employer, these internal labor markets offer an effective way to retain and develop high-potential employees. Internal hires for new roles also require less onboarding and come with the benefit of pre-existing institutional knowledge and alignment with the organization’s culture. (Gartner Corporate Leadership Council members can learn more about HCL’s Career Connect portal in our case study.)
Dr. Eddie Obeng delivering a keynote at ReimagineHR in London (Gartner)
At the start of his keynote session at Gartner’s ReimagineHR summit in London last week, British organizational theorist, educator, and author Dr. Eddie Obeng offered a glimpse of the fast-arriving virtual workplace. A wearable mouse attached to his wrist, Obeng gave the audience a tour of a 3-D classroom projected on the screen, walking to different chalkboards and interacting with his colleagues present in the virtual room while actually participating from a remote office. In this way, Obeng illustrated the potential of flashy new technologies in shaping the future of work.
In our HR research practice at Gartner, however, we know from hundreds of calls with HR leaders and professionals that when many of them see this flashy technology, they say: “We’re not Google, we’re not Amazon; we simply can’t afford this level of digital enhancement.” They want to know what the future of work means for them: What can they actually do with the resources they have? When Obeng asked the audience to share some of their fears about the digitally-enabled presentation he was showing them, they said it would be “impractical,” “too techy,” and “too expensive” for them to implement.
But Obeng very quickly challenged the audience by telling them to forget about technology, that we’re using it all wrong. New technology, he asserted, is of limited value if we don’t rethink the processes by which people work. Technology may be changing around us, but our habits and behaviors have not. Our habits and practices are deeply ingrained, and as a result it is difficult to imagine what the future should look like; instead, as he put it, we “imagine the present, but shinier.”
Relating his topic back to HR, Obeng noted that everything about our organizational structure and talent processes, from compensation and benefits to learning and development to the hierarchical org chart, is designed for the world as it used to be, when organizations were able to see what was coming. Today, that’s impossible: Change happens faster than we and our processes can adapt. A senior leadership team making all decisions for an organization, Obeng said, can process about the same amount of data in an hour as our mobile phones can in a minute. Rather than trying to simply move faster, we need to reimagine the way we move.