technology/it software industry breakout - ernst & young · · 2015-07-29technology/it...

Technology/IT software industry breakoutThe workplace of the future

26–29 October 2014

Disclaimer

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► Views expressed in this presentation are those of the speakers and do not necessarily represent the views of Ernst & Young LLP.

► This presentation is provided solely for the purpose of enhancing knowledge on tax matters. It does not provide tax advice to any taxpayer because it does not take into account any specific taxpayer’s facts and circumstances.

► These slides are for educational purposes only and are not intended, and should not be relied upon, as accounting advice.

Session objectives

► This session will be a facilitated discussion focusing on the technology industry and the challenges and opportunities associated with the need to shift employees from being deskbound to being mobile.

► We will discuss the ability to transform the industry by including features that are unique to mobility: location, presence and routing. Strategies to cost-effectively manage pools of technology professionals in one location while retaining the ability to quickly deploy them as needed both at client sites as well as at other company locations overseas can not only increase efficiency and eliminate additional friction in business processes but can also facilitate the launch of new products, new services and even new business models.

► The discussion will include interactive polling and a robust conversation about managing a mobile workforce in the technology space.

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Our goal is to have a robust discussion. Share ideas and learn from each other

Background

► The accelerating pace of change has affected all industries and is changing the nature and definition of the workplace. The technology space has been dealing with the issue as the frontline for the business community.

► Shifting demographic patterns, the rapid pace of technological advancements, the shift to knowledge-based economies and increasing pressures for innovation, productivity and cost-containment have set the pace.

► Globalization and is impacting every business at every level.

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Our discussion today

► Over the next 5 years these factors will shape the future of our workplace and will impact key aspects of the workplace including workforce size, composition, compensation, work design and management practices.

► Discussion topics:► The challenges being faced by organizations in preparing for the

workforce of the future► Several challenges unique to our industry ► The implications of these challenges for human resources► The implications for efforts to manage the workforce of the future

and operate an effective and efficient enterprise serving a wide range of stakeholders

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Discussion

► What changes in management practices are required to manage and lead a 21st century workforce?

► How has the availability of cheap, skilled labor in India changed the demographics of your organization► What challenges has this presented for your organization

► Tax► Immigration► Other

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Challenges for the workforce of the future

► Discussion: shifting demographics ► The large population cluster of baby boomers has begun entering

its retirement cycle. ► These changes have had a significant impact on the availability of

critical skills and experience in the workplace. ► In addition, when the infusion of a replacement workforce is

accomplished, it is expected that multi-generational issues will create new internal challenges.

► Has this impacted your organization?► Export control with inbound to US?► How has the replacement workforce changed our ability to

effectively work in teams?

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► Multi-generational challenges and expectations ► Challenging work and growth opportunities ► Creating and maintaining effective

performance-based systems ► Ability to have impact ► Expectations of empowerment ► Timely feedback on performance ► Maintaining and communicating culture and

values of the organization ► Access to information ► Access to technology ► Mobile computing and telecommuting are

needed

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Thoughts for our discussion► Rapid promotions and career opportunity ► Desire for job satisfaction and competitive

pay systems ► Work-life balance ► Diverse workplace and hiring ► Maintaining technical competencies and

skills ► Attraction and retention of quality staff ► Ability to multitask and maintain

connectivity ► Visa issues


► Technology changes ► Just as the traditional car mechanic has been replaced by

electronically-savvy car technicians, technological advances are expected to continue to increase demand for: ► A differently skilled workforce► Higher productivity ► Business organization changes ► More rapid transfer of knowledge and technologies► Mobile populations

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Practical discussion: ► How is the technology industry addressing the

challenges of business travel with regard compliance


► The rapid pace of technology changes will tax slower organizational processes for re-skilling the workforce, rapid procurement of needed resources and flexibilities in moving staff to short-term assignments in and out of the organization to leverage new technologies and collaborations.► New skill-set needs (e.g., science, technology, green) ► Moving from task-oriented work assignments to providing services

and solutions ► Moving from slow, centralized decision-making to rapid,

empowered decision-making► Moving from intuitive decision making to fact-based analysis and

decision making

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► Cost containment and productivity pressures ► As globalization and other financial pressures have

increased during the past decade, many organizations have been very successful in leveraging technology to boost productivity and performance.

► This has left management of human capital as the other key opportunity for cost-containment and productivity gains. ► The workforce of the future will be working in

organizations with strong performance-based systems which incentivize both high performance and alignment to company strategies, values and work practices.

► Hiring will focus on attracting top talent that fits the organization culture. Cost-containment pressures may increase the focus on hiring talent with the right skill sets rather than internally training staff.

► Responsible financial decision making will be expected at all levels and from all employees.

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Focus on LeanReturn on Investment


► Labor costs ► Hiring for culture fit, motivation and technical skills ► Decentralized organizational strategies vs. centralized processes ► Aggressive testing for technical competence ► Ongoing organizational restructuring and work redesign for productivity and

efficiency ► Improved problem-solving skill sets ► Financial responsibility as a core value ► Traditional facility requirements and location needs may change ► Increased telecommuting and flexible job arrangements increasing

productivity and the need to deal more swiftly with performance issues ► Return on investment

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Thoughts for our discussion

Discussion point

► How will the Human Resources function will address these future workforce challenges?

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Management practices

► The workforce for the future will expect management practices that empower, enable and encourage innovation, follow-through and results.

► Practical approaches to problem solving. What has worked? What has not?► Employee surveys► Score cards

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Managing the workforce of the future

► Strong performance management systems ► Strong leadership ► Management alignment (everyone on same page) ► Creating urgency and passion ► Efficient decision-making process and organization structure ► Effective change management and sponsorship ► An increase in risk taking and entrepreneurial mindset ► Virtual environment ► Strong project management ► Strong employee engagement ► Fiscal astuteness and accountability at all levels ► Harmony between labor and management ► Effective balance between represented and unrepresented workers

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Historical issues that have hampered HR

► Historical issues that have hampered HR► Lack of comprehensive HR vision ► Transactional focus ► High turnover of HR managers► Reputation as inaccessible, inconsistent and non-responsive ► Decisions not tied to business ► Dated, traditional view of HR role ► Old problems with limited progress; many solutions launched, few targets hit ► Risk averse ► Broken process mechanics ► Adversarial labor relations ► Lack of procedural discipline ► Insufficient competencies and skills in key areas

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► Industry trends in Human Resources ► The role of the modern Human Resources organization is

changing in many leading organizations. There is abundant evidence that organizations that effectively manage their human capital benefit with improved (and often outstanding) business performance. Effective HR leaders have a seat at the table with line management in determining the people practices.

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Integrated talent management

► The workforce for the future will require a significant investment in people.

► Many components of a talent management system must work together to ensure that Metropolitan has the right people for the right jobs with the right skills at the right time.

► These components require a coordinated and consistent approach that accomplishes the intended results without increasing exposure to litigation or violation of regulations.

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► Retention► Engaging, informing and motivating throughout the employee lifecycle

► High Performance Standards ► Defining the behaviors and results that are important and measuring them

► Learning and Development ► Reducing cost impact and time away from job for training

► Leadership Development ► Creating a pipeline of future managers

► Succession ► Assessing critical positions and capabilities

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HR excellence

► The role of the Human Resources organization is also changing as companies shift to knowledge-based environments.

► Providing credible and responsive HR customer service requires the HR team to possess critical competencies that encompass traditional HR roles but also add key elements that enable HR to have a key role at the executive table.

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technology/it software industry breakout - ernst & young · · 2015-07-29technology/it...

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