Tag Archives: pwc

The Value of Purpose

I’m seeing a trend in the Human Capital Management space wherein vendors/consulting firms are creating mini white papers rather than big research reports. The continuation of “Snack Nation,” I guess. But I like it. For those among us who just don’t have the time to sit down and focus on a lengthy research report, these snackable bits of relevant research and content are helpful. And pwc does a better job than most of serving up helpful content based on current research and analysis.

Take Putting Purpose to Work:  A study of purpose in the workplace (published a year ago). It’s a 14 page, easy to read document that walks the reader through a discussion of the meaning of your organization’s purpose for your employees and what it can mean for your business. As we learn more and more about what drives the younger generations in our economy, there’s no denying that purpose is discussed a great deal in the C-Suite as the War for Talent wages around us.

Data in the report are based on a survey conducted by pwc that included 1,510 full- and part-time employees and 502 U.S. business leaders from 39 industries – from both public and private companies, as well as partnerships, government/state-owned agencies, and non-profits.

“The current era of disengaged, transient talent impacts every aspect of the business, and the need to activate purpose at work has never been more urgent.”

This is the thesis of the report. And it’s hard to argue against it.

The reports argues that the following commitments are critical as leaders create a purpose driven culture:

  • Make purpose accessible
  • Emphasize the human element of purpose
  • Include purpose at the center of your talent strategy

For leaders – including those in HR – the following graphic provides interesting food for thought.

This is a striking disconnect, and one that HR leaders could take the lead in eliminating. It shows that, while there is understanding in the C-Suite regarding the criticality of purpose in business success, there is a lack of will in operationalizing purpose in the business.

What’s the story in your organization? Does the C-Suite believe that your organization’s purpose is central to its success? And if it does, how is it manifested in your employees’ day-to-day lives on the job? Good questions for all leaders whether or not they’re in HR.

Of the five key insights itemized at the beginning of the report, the second really resonates and is a bit of a warning:

“Business leaders tend to focus on the value in defining and illuminating purpose for commercial success. For employees, purpose represents an avenue by which they find personal fulfillment. This disconnect is preventing companies from reaping the comprehensive potential benefit of defining what they stand for as an organization.”

Some food for thought…

 

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Filed under Business Success, China Gorman, Company Culture, Culture, Data Point Tuesday, Employee Engagement, Purpose at Work, pwc, Talent Management, Uncategorized

Does Your CEO Have a Higher Purpose?

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Each year I look forward to the pwc CEO survey findings. And they’re just out. You can see their top ten findings here.

If you’re in HR you need to know what your CEO is thinking about. What she’s worried about. What keeps him up at night. What she’s planning to tackle in the next several years. And if you don’t have access to your CEO, this survey can help you make sure you’re preparing for what may be coming down the pike. These survey results could help you be brilliant for your organization – and for your CEO.

The top ten issues for 2016 identified by U.S. CEOs in the survey are fascinating. They cover regulation, cyber security, tax reform, doing deals, paying attention to customers, investors, employees – and understanding the organization’s higher purpose. A virtual smorgasbord for HR!

Top issues CEOs are expecting to confront in 2016 include:

  1. U.S. market prospects will outshine the low-growth world

  2. Over-regulation will continue to pose a threat to business growth

  3. Regionalization in trade and divergence in economic models and regulatory frameworks, with threats to open Internet

  4. Customers and other stakeholders will expect business to demonstrate a higher purpose over the coming years

  5. Prospects will improve for laying the groundwork for U.S. tax reform

And, in 2016, U.S. CEOs will plan to:

  1. Strengthen the technology foundation to set their business apart

  2. Do more deals, especially domestically

  3. Hold fast in China, while recognizing the bumps along the way

  4. Anticipate the needs of future customers and other stakeholders

  5. Prepare the Millennials for leadership roles

I’m fascinated that 3 of the top ten land squarely in HR’s court: demonstrating a higher purpose (that’s culture), anticipating the needs of…stakeholders (that’s talent), and preparing Millennials for leadership roles (that’s talent development). If you ever wondered whether or not your CEO thinks about HR, the answer is a resounding YES in 2016.

I’m particularly intrigued with the higher purpose issue. It’s no secret that bringing humanity into the workplace is a topic on the minds of many business leaders. Having CEOs concerned that customers, investors, employees, strategic partners all want in on the higher purpose is pretty darned interesting. What are you doing to help the organization understand and communicate its higher purpose this year?

pwc CEO survey 2016 1

Anticipating the needs of customers and employees is another thought provoking issue. Addressing employee needs like wellness – physical and financial, parental leave, career development, and providing opportunities to contribute to society are clearly articulated needs of today’s U.S. employees. Are you helping your CEO provide options to meet these needs?

And preparing Millennials for leadership roles is front and center, isn’t it? Investing in their development brings a number of benefits to the organization in addition to deepening your leadership bench. Millennials frequently report that learning and skills development are as – or more – important than compensation growth. Many report that they leave their employers in search of learning and growth opportunities. Investment in their leadership development undoubtedly impacts retention in a positive way. Are you beefing up your succession plan and its supporting programs?

pwc CEO survey 2016 2

My guess is that most HR practitioners and leaders are currently thinking about these 3 priorities, among a long list of others. Isn’t it nice to know that your CEO may just be ready to help you tackle these issues?

The bigger question may be, are you ready for your CEO to start asking “what’s the plan?”

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Filed under CEOs pwc, China Gorman, Company Culture, Data Point Tuesday, HR, Leadership Development, Organization Values, pwc, Strategy, Talent Management, Uncategorized, Workplace Culture

What’s Financial Wellness Got To Do With It?

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pwc has been surveying full-time employed adults in the U.S. nationwide about their financial wellbeing for several years. The 2015 survey analysis and report was published in April and it’s a fascinating read. If you, like I, believe that dealing with employees as complete humans – not just 9:00-5:00 skill resources – is a foundational cultural value, then you’ll find real insight in Employee Financial Wellness Survey 2015 Results.

There are a number of interesting findings to which we should pay attention:

  • Fewer employees are having difficulty meeting household expenses.

pwc 2 Aug 4 2015

  • Fewer employees are carrying balances on credit cards but it’s still high at almost 50%.pwc 3 Aug 4 2015
  • Of those who carry balances, 26% still find it difficult to meet their minimum payments each month.pwc 4 Aug 4 2015

This looks like a whole lot of financial stress to me. And while progress has been reported between 2012 and 2015, it’s hard to imagine that we’re getting the best from our employees when burdened by these concerns for their families and their futures. And sure enough, one in five employees report that their work is impacted by their personal financial situations and 37% report that they spend 3 hours or more at work each week dealing with their personal finances.

pwc Finances at Work Aug 4 2015

Employers focused on creating more human cultures are starting to pay attention to this dynamic. Certainly it started to gain traction during and immediately following the recent Great Recession as the personal financial stress of most employees rose through the roof. Employers began providing more personal financial education and expanding services offered through their EAPs. These together with a slowly improving economy have resulted in some stress reduction as noted above, however, we ought to watch those Baby Boomer numbers closely in the coming years.

This report will give you some interesting and potentially actionable insights about the pressure your employees are feeling about their personal finances. It doesn’t take a Ph.D. data scientist to draw the conclusion that personal financial pressures impact the productivity of our employees.

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Filed under China Gorman, Data Point Tuesday, Employee Stress, Financial Wellness, pwc

CEOs Get It. Do HR Leaders?

data point tuesday_500Here’s another survey analysis and report that should be required reading for all HR professionals: pwc’s 18th Annual Global CEO Survey. The survey looks at how business leaders are finding new ways to compete in “an era of unprecedented digital change.” I know, it sounds like another consulting firm’s move to make the complicated even more complicated and gin up their sales. But I didn’t find this analysis to be that. Instead, I found it useful to put context around some of our biggest challenges and opportunities. 1,322 CEOs in 77 countries were interviewed: 125 in Central and Eastern Europe; 459 in Asia Pacific, 94 in the Middle East and Africa; 330 in Western Europe; 167 in Latin America and 147 in North America. This was truly a global survey.

The survey findings are grouped into 5 themes:

  • Growth
  • Competition
  • Technology
  • Partnering
  • Diversity

The first four themes are fairly predictable – and they all have some impact on talent strategies and HR functions – but the fifth, Diversity, might be a surprise to you. Think about it. More than 1,300 CEOs around the world were interviewed for this survey. Would you have predicted that Diversity was among the 5 most critical themes to emerge? You might have hoped for it, but would you have predicted it?

This survey analysis report is a roadmap for HR to anticipate what’s coming in terms of focus and strategy from the CEO. The report is not long. You could read it in an hour. And come away with some critical new business perspectives that will make your HR strategies and plans align with the real world – as your CEO sees it – and support your business’s growth plans.

I’ll share just two graphics that I found interesting. The first shows the range of risks that CEOs are beginning to be concerned about:

pwc CEO Survey June 30 2015CEOs were asked how concerned they were about a list of potential economic, policy, social and business threats to their organization’s growth prospects. You can see the list above. Do you see that the threat of not having access to necessary skills is a greater threat then cyber security? Than the speed of technological change? Than Geopolitical uncertainty? Do you see that of the list they could choose from, CEOs chose the threat of not having access to necessary skills as the second most concerning threat to their organization’s growth processes?

That seems big to me. So, are your talent acquisition, development and retention strategies and programs developing fast enough to address this concern?

The second chart I will share shows just how all-pervasive and consistent the lack of talent concern is for CEOs:

pwc CEO Survey 2 June 30 2015The question posed to these CEOs was “what one capability do you think will be most critical for tomorrow’s CEO’s to cultivate?” The choices were:

  • Innovation
  • Leadership
  • Strategic Thinking
  • Customer Focus
  • Collaboration
  • Digital Astuteness
  • Personal Qualities (e.g. honesty, integrity)
  • Adaptability
  • Knowledge and Skills
  • Talent Acquisition and Management

It wasn’t surprising to me that out of that list of 10 critical future CEO capabilities that Strategic Thinking would be first on the list of necessary capabilities. And it’s first by a mile. But look at what is in second place: Talent Acquisition and Management! I’ll bet you wouldn’t have predicted that.

This suggests to me that CEOs see lack of skills as such a big concern that they are going to involved personally with reducing that threat. Are you ready for your CEO to be actively involved in setting and executing your talent acquisition and development strategy? I’m not thinking that their involvement would be a bad thing. Quite the contrary. But I’m not sure the average HR department is ready to add their CEO to the team.

In my mind, these two graphs, and the subtext of the survey report, show that talent is becoming one of the most critical competitive advantages for business growth worldwide. And CEOs know it. The lack of talent/skills is clearly being evaluated by CEOs all over the world – in every sector and in every size of business – as their Achilles Heel. So CEOs get it. The big question is, does HR get it?

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Filed under CEOs pwc, China Gorman, Data Point Tuesday, Diversity, HR, Strategy, Talent Acquisition, Talent development