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DIVERSITY BEST PRACTICES | MEMBER CONFERENCEDELOITTE CONSULTING | OPEN TALENT ECONOMYLinda QuarantoDecember 2017

1Copyright © 2017 Deloitte Development LLC. All rights reserved.

Key disruptors are driving change

1 https://www.cnbc.com/2017/01/17/6-billion-smartphones-will-be-in-circulation-in-2020-ihs-report.html2 https://www-01.ibm.com/software/data/bigdata/what-is-big-data.html

3 Annual Global Millennial Study, https://www2.Deloitte.com/uk/en/pages/about-Deloitte-uk/articles/millennial-survey.html 4 https://www.newscientist.com/article/mg23130810-800-the-100year-life-how-should-we-fund-our-lengthening-lives/5 https://www2.deloitte.com/content/dam/Deloitte/il/Documents/human-capital/Thriving_in_times_of_digita_disruption.pdf

6 http://www.oxfordmartin.ox.ac.uk/downloads/reports/Citi_GPS_Technology_Work_2.pdf

7 Intuit 2020 Report: Twenty Trends that will Shape the next Decade https://http-download.intuit.com/http.intuit/CMO/intuit/futureofsmallbusiness/intuit_2020_report.pdf8 https://www2.deloitte.com/content/dam/Deloitte/global/Documents/HumanCapital/dttl-hc-english-opentalenteconomy.pdf

7Disruptors

Technology is everywhere

6.0 billion+smartphones in the world by 20201

AI, Cognitive Computing, Robotics

$500,000 in 2008$22,000 today5

Tsunami of data

9x more in last 2 years2

Major enabler of machine learning

Jobs vulnerable to automation

35% UK 47% US

77% China6

Diversity and generational change

Millennials 50%3

25% global pop in Africa by 2050 5

Longevity Dividend– 50 year careers4

Explosion in contingent work

US Contingent workers 40% by 20207

Change in nature of a career

2.5 – 5 years: Half-life of skills4.5 years: Average tenure in a job8


What appears to be happening

Mobile, sensors, AI, cognitive computing, data.

Access to technology by consumers globally.

Technology infiltrates home and political life.

Time

Technology change

Rate

of

ch

an

ge

Business productivity

Gap in business

performance

potential


What is really happening

1970s 1980s 2000s1990s Today2010s

Technology

Individuals

Businesses

Public policy

Rate

of

ch

an

ge


Work is changing

47% of today’s jobs will be gone in 10 years

40% of US workforce participates in crowd / gig economy

70% of employers believe they need a different mix of

talent for the future


What do we mean when we talk about the future of work?

WorkThe type of work people will

do in the Future.

WorkplaceThe structure and practices to enable people to create value

in the Future.

WorkforceThe portfolio of workforces, people and machines, on

balance sheet and contingent workers and crowdsSource: Deloitte, 2017


The augmented workforce of tomorrow will be different from today’s


Rethinking combinations of talent, technology, and workplace

The convergence of technology and talent models leads to new opportunities in workforce planning and the composition of work

Current work options

Future work options

Physical proximity

Talent categoryAutomation level

3

1 2


In the new era, there are new rules

People as workers People & intelligent machines co-working

Homogenous workforce Diverse workforce

Significant permanent workforce Significant contingent workforce

Hierarchical, siloed Networks of collaborative teams

Traditional office Frictionless, smart workspaces

Slow to adapt Nimble

Innovation department Innovation by everyone

Command and control leadership Inclusive leadership

Knowledge Emotional, creative and digital intelligence

Profit driven Purpose driven

Technology owns people Technology works for people

OLD RULES NEW RULESTHE CHANGING WORLD OF WORK


In the new era, leaders will need to adopt

High-performing leaders today need different skills and expertise than in generations past

Digital leadership requires shifts in how leaders must think, how leaders must act, and how leaders must react

5% feel they have strong digital leadership

The leadership gap has become larger; organizational capabilities to address leadership dropped by 2%

72%developing new leadership programs focused on digital management

Source: Bersin Human Capital Trends

78% of business and HR leaders surveyed believe disruption of leadership is an important trend


In the new era, HR has a role in driving the digital agenda

HR leaders are being pushed to help drive the organization to “be digital” not just “do digital”

HR is being asked to help lead the digital transformation in three areas: digital workforce, digital workplace, and digital HR

56%are redesigning their HR programs to leverage digital and mobile tools

33%are using some form of artificial intelligence technology to deliver HR solutions


73% of business and HR leaders surveyed believe digital HR is an important trend


In the new era, people analytics is becoming a business imperative

People analytics is becoming a business function focused on using data to understand business operation, and embedding analytics into real-time apps and the way we work

15%have broadly deployed HR and talent scorecards for line managers

8% report they have usable data

9%have a good understanding of which talent dimensions drive performance


71% of business and HR leaders surveyed believe people analytics is an important trend


In the new era there is a continuum of talent options

Organization-Led Employee-Led

Full / Part Time Employees

Joint Ventures Freelancers

Gig WorkersContractors

Crowds

New talent approaches are being embraced by organizations to meet the needs of the business and increased expectations from workers

TRADITIONAL OPEN


The augmented workforce is a reality for organizations

Organizations must implement cognitive tools, retrain people to use these tools, and rethink the role of people as more work becomes automated

41%have fully implemented or made significant progress in adopting cognitive and AI technologies

17%report not being ready to manage a workforce with people, robots, and AI working side by side

66%

believe their use of off-balance sheet talent will grow significantly in the next 3-5 years, but 49% are not able to manage contingent labor well


63% of business and HR leaders surveyed believe the augmented workforce is an important trend


The contingent workforce is exploding

41% of today’s US workforce is contingent…

…with this workforce growing at a rate of 1% each year


Some industries have already embraced the open talent economy

Uber and Lyft are app-based ridesharing platforms used for on-demand vehicle service.

Powered by a fleet of independent drivers, both companies are servicing passengers

globally. Drivers must have cars inspected, show proof of insurance and registration, and

complete a background check in order to gain employment. Once the onboarding is

complete, drivers are able to make their own schedules as they provide peer-to-peer

transportation services

Handy is an online two-sided marketplace for residential cleaning and other home

services. Utilizing a sharing economy approach and Uber-esque business model, the

company has engaged about 10,000 cleaners to work on its platform on a gig by gig basis

Instacart is a same-day grocery delivery service. Customers select groceries through a

web application from the desired retailer and a fleet of independent personal shoppers

make the purchases and complete deliveries


Key considerations for organizations

The emergence of the open talent economy poses significant challenges for organizations, as companies must begin to think about employing and engaging with a non-traditional workforce

Screening for Employment Will organizations require background checks before hiring

contingent workers? How can screens be accelerated in a fast paced gig economy?

Cyber Security & Confidentiality How will organizations ensure data is secured amongst

contingent workers? Will contingent workers use their own laptops? How will organizations ensure proprietary information

remains confidential when contingent workers work across an industry on different gigs for different companies?

Compensation & Benefits How will organizations pay contingent workers? Can Venmo or similar technologies be leveraged to

compensate workers for gigs? Should organizations offer contingent workers health

insurance? Can an agency provide a group plan?

Performance Management How will contingent workers be evaluated? How will an organization know if a contingent worker should

be brought back for another gig?


The new era leads to a breadth of opportunity

In 77% of companies automation results in “better jobs” and

retraining of workers, only 20% see job reductions

33% expect to retrain people to do more “essentially human”

tasks around robotics and AI

50% of companies expect to retrain workers to side by side

with robotics and AI


Let’s get to

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