Lecture Notes: Human Capital Trends Report – Session 2

Introduction

• Host welcomes participants, thanks for joining.
• This is part two of an ongoing series with Eightfold, Deloitte, and HCI.
• Speaker: Sue Cantrell.

Overview of the Human Capital Trends Report

• Title: Thriving Beyond Boundaries: Human Performance in a Boundaryless World.
• Work is redefined:
  • No longer limited to formal employees (contractors, contingent workers).
  • The rapid evolution influenced by Gen AI.

Research Highlights

• Longitudinal study starting in 2011.
• Surveyed 14,000 respondents across 95 countries.
• Focus on human outcomes, key findings include:
  • 74% believe trends are critically important.
  • Only 10% believe organizations are effectively addressing these issues.
• Identified the "knowing vs doing gap"
  • Organizations struggle to take actionable steps towards improving human performance.

Understanding Human Performance

• Formula:
  • Human Outcomes × Business Outcomes = Human Performance
  • Shift from a plus to a multiplication sign.
  • Example: Hitachi focused on happiness and AI for productivity gains.

Focus on Human Sustainability

• Definition: Creating value for all individuals connected to an organization.
• Broader implications including:
  • Future workforce, contingent workers, societal impact, and mental health.
  • Connection to wider societal health and equity considerations.
• Research indicates a disconnect in the perception of human sustainability between leaders and employees:
  • 89% of executives believe in advancement of human sustainability, but only 41% of workers agree.

Key Trends Discussed

1. Beyond Productivity: Measuring outcomes, including human and business metrics.
2. The Transparency Paradox: Complexity in trust vs transparency.
3. Imagination Deficit: Rise of AI emphasizing human traits like creativity.
4. Digital Playgrounds: Safe spaces for experimentation and co-creation.
5. Workforce Micro Cultures: Acknowledging diverse cultures within organizations.
6. Boundaryless HR: Evolving HR functions to be integrated with overall organizational strategy.

Gaps in Human Sustainability Practices

• Survey results indicate most organizations are not doing well in human sustainability integration.
• Challenges include:
  • Lack of reliable metrics.
  • Poor understanding of how to measure social aspects of ESG.
• 19% of leaders believe they have reliable metrics for social components of ESG.

Suggestions for Improvement

• Importance of metrics and data to measure human outcomes effectively.
• Recommendations include:
  • Utilizing AI to understand skills and their development.
  • Tying metrics to leader rewards.
  • Involving workers in co-creating solutions to human sustainability.

Examples of Successful Practices

• Chobani: Increased tenure due to benefits for workers from diverse backgrounds.
• Vodafone: Improved understanding of existing skills leading to internal mobility.

Business Case for Human Sustainability

• Example: PayPal initiative to enhance financial well-being.
  • Estimated cost savings through reduced attrition.
  • Improved engagement and productivity as a result of human outcomes.

Closing Remarks

• Importance of embedding human sustainability in governance structures, including C-suite involvement.
• Empowering managers is critical for enhancing workers' mental health and sustainability practices.
• Addressing feedback mechanisms to ensure transparency and accountability.

Q&A Session Insights

• Discussion about how ERGs impact talent ecosystems, but the visibility of their contributions can be lacking.
• Thoughts on what human sustainability means to today’s workforce, highlighting the need for relevant skills and well-being in an always-on work context.

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