HOT HR STRATEGY

2018

TRENDS
Featuring Leading Thought Leaders

Amy Schabacker Dufrane

Dave Ulrich

Cy Wakeman
 With A Heartfelt Thanks
to These Contributing Thought Leaders

Amy Schabacker Dufrane, Ed.D, SPHR, CAE

Chief Executive Officer, Human Resource Certification Institute (HRCI)
Maximizing People Potential
www.hrci.org

Dave Ulrich
Speaker, Author, Professor
Leadership, HR, and Organization Thought Leader
https://rbl.net

Cy Wakeman
NY Times Best Selling Author
Award-Winning International Keynote Speaker
Drama Researcher
http://www.RealityBasedLeadership.com

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INTRODUCTION
“Change is only hard for the unready.” Cy Wakeman
“It sure would be nice to have my schedule text to me so I can
see it on my smartphone,” an employee once told me. The
first thought that came to mind was, are you kidding? I
remember the day they went from posting a schedule on a
bulletin boards to making it available on a personal computer.
Now there is innovation. Don’t even get me started on how
time clocks have changed over the years!
But then a thought of truth came racing through my mind. The
question the employee asked relates to workplace experience.
The employee may find it necessary to have access to her
schedule through her smartphone so she could make
arrangements to pick up children from school or some other
personal life need.
We all know that change happens whether we are ready for it
or not. Like Cy Wakeman says,”change is only hard for the
unready.” In my HR executive experience in the healthcare
industry, I’ve seen change not only be a constant, but the rate
of change continues to accelerate.
Rapidly increasing innovations, technology, competitors, and
market forces continue to intensify. In addition to those drivers,
daunting skills shortages, ever-changing workplace 2018 Hot Trends
generational dynamics, workforce demands, regulatory • Connecting People and
changes and constant uncertainty also compound our reality. Business Strategy - Page
Like many of my HR and leadership colleagues, I can choose 4
to let change overcome me. Or I can embrace and leverage
change to achieve a higher good. • HR Technology Revolution
- Page 8
One essential step to learning how to be ready for change is to
stay up-to-date on hot trends as they will affect us. Join me in • Organizational Design -
exploring this 2018 edition of Hot HR Trends and read what Page 11
thought leaders, Cy Wakeman, Dave Ulrich, and Amy
Schabacker Dufrane, have to say as they guide us into the • The Experience for the
new year. Candidate and Employee
- Page 13
Warmly, • Performance Coaching
Tresha Moreland, SSBBP, SPHR, FACHE and Development - Page
Founder of HR C-Suite and HR Executive 14

!3
Key Strategic Driver
“Getting the right people on board, keeping them motivated and
creating cultures of high performance are not only HR priorities, HRCI
LINK
they are top strategic priorities for today’s business executives,”
said Amy Schabacker Dufrane, Ed.D, SPHR, CAE, the CEO of
HR Certification Institute® (HRCI®). “To stay competitive,
companies must increasingly rely on competent HR teams and
company-wide initiatives that redefine HR as a strategic driver of
people, innovation and business performance.”

CONNECTING
“HR has an
enormous

PEOPLE AND
opportunity to
create competitive

BUSINESS
advantages for
organizations by

STRATEGY
overhauling their
philosophies and
strategies to focus “I’d like a report broken out by each department, that shows the
on cutting the cost number of FTEs compared to the benchmark data. Let’s use
of drama and the 50th percentile. Overlay it with current volumes for each
department and include the variance both in volume and FTEs
compared to this time last year. I need to have this report no
later than this Monday. Also be prepared to present findings

NOE
from the report and answer any questions that may come up at
the next senior leader meeting. Oh, and I hope you have a
pleasant weekend.”

GOLI
Think this request was for a CFO or COO to answer? No, the
CEO expected this report from a CHRO. Finance, operations,
and sales analytics have taken center stage for many years.
Traditionally, C-Suite saw HR workforce analytics as elusive and
not concrete by which we base business decisions. However,
recent trends indicate that HR workforce analytics and practices
connected to business strategy are becoming a hot demand
item from HR.

!4
This trend takes us a step further than just tracking HR
metrics as a stand-alone measure. For example, instead of
just measuring turnover and stating it only as how many
people left the organization, this hot trend demands more,
much more. The C-Suite not only wants to know how many
people have gone, but also how much it cost not just in
antidotal or assumed dollars, but in real and measurable
dollars.
Plus business leaders of today may also want to know how
to predict turnover so that we can understand what to
invest not just dollars but also in time to get ahead of the
turnover rate. Even better, let’s calculate what the business
impact of turnover is on productivity, customer retention,
and revenue, while we are at it.
Try these realities on for size:
A CEO wants to adopt a new service line in 3 to 5 years
to increase market share and gain a competitive
advantage. HR is and will be looked at to determine what
kind of skills are needed, identify the skills gap and
project the labor market pool to supply those skills.
A company’s leaders want to adopt a more customer-
oriented culture but are having challenges moving the
needle on customer satisfaction surveys. HR may impact
this business result through implementing smarter hiring
practices informed by HR analytics or find ways to
eliminate waste in behavioral barriers to excellent
customer service.
Labor expenses are through the roof, but leadership is
having a hard time tracking or understanding the real
cause of the problem. Leveraging HR analytics can
impact this issue by providing labor dashboards
indicating where there may be issues with overtime, pay
practice leakages, and contract labor usage.
Savvy business and C-Suite leaders know the workforce
has a large-scale impact on the company, good or bad. If
efficiency leveraged the workforce can impact business
growth/market share, customer retention, revenue
generation, competitive advantage, quality and ultimately
the bottom line performance.
Ditch the
Drama and
Turn Excuses
Into Results
My recent research reveals that rather
than driving performance and creating
efficiencies for the organization,
conventional HR strategies and
philosophies are actually fueling drama
in the workplace. The findings affirm
what we’ve observed in our 20+ years
of experience doing Reality-Based work
in hundreds of organizations: when
employees indulge in distracting drama,
learned helplessness, low accountability,
lack of self-awareness, and ego-driven
behavior it comes at a significant cost to
their organizations.   In fact, my newest
study indicated that under currently
prescribed HR philosophy and strategic
best practices, up to three months per
year of each employee’s time –
potentially billions of dollars annually in
the U. S. alone – is wasted in drama. 
It is time for a radically different
approach to core HR philosophies such
as engagement, change management,
and accountability. In fact, it is time for
HR professionals  to redefine HR and
leadership with science and research
and to teach leaders strategies and
tools that will actually work (and that
they will actually use) in their modern
workplace.”
~ Cy Wakeman
!5
 Key
Statistics
• 95% of executives say that
hiring and retention directly
affects the bottom line.
• 8 out of 10 executives
consider HR a strategic
partner, buy only 59% rank
their companies as “above
average” or “industry leaders”
for attracting and retaining
talent.
• 7 out of 10 executives say
their organizations would
benefit from having HR
departments with HR
certifications, such as those
offered by HRCI to
demonstrate professional
excellence and commitment
to continuous learning.
Credit to a new survey of 300
C-Suite executives, conducted
by HRCI and Dow Jones
Ulric
h
Book
Therefore, those same savvy C-Suite leaders are looking to their
HR leaders who can to compare HR data with business drivers
and demonstrate and articulate meaningful business results.
If you are a C-Suite member and haven’t thought about connecting
HR with business results, don’t look now, but you are behind. Your
competitors and investors are moving ahead of you. Consider this
new trend:
Investors are taking more interest in human capital
management and value.
This year alone the Workforce Disclosure Initiative, backed by
nearly 80 institutional investors requested information for 75 of the
most prominent UK-listed companies about their governance of
workforce issues, global workforce demographics and stability,
training and development of people and employee engagement.
Only weeks later, the Human Capital Management Coalition, a
group of 25 institutional investors, petitioned the US Securities and
Exchange Commission (SEC) to adopt rules requiring public
companies to disclose human capital metrics such as workforce
demographics, compensation, skills and advanced measures
relating to culture, health, and human rights. While this is not yet a
requirement for organizations, increase interest in human capital
value.
5 Action Steps for HR Leaders: Now that we may have just sent
other C-Suite members knocking on your door, email or text you,
here are some actions steps that are worth considering adopting
and quickly!
1. Change the “sets” (mindsets and skillsets): HR is
not just about the soft skills. The status quo is the status
isn’t. No longer will the status quo suffice. HR requires
solid analytic, critical thinking and business acumen to
influence business results effectively. The need for high
HR impact isn’t new. But the demand for it is growing in
intensity. Let us remove an excuse…do not allow the
lack of a functional HRIS system stop you. There are
other ways to align HR with business results. This action
list will help you.
!6
2. Understand business objectives. Become
intimately aware of how the company’s leaders
plan to accomplish its purpose and mission. Look
at the top goals the organization pursues. These
may be prominently reported “at the table” and
presented to board members.
3. Develop an alignment strategy. Sit down
and sketch out a grid. Down the left side list all of
the objectives you found the organization’s
leaders are pursuing. List out on the top all the
HR enablers that can influence that objective. For
example, if one of the goals is to increase
customer survey measures, write out all of the
things HR can do to impact that goal. Talent
Acquisition, HR can put into place techniques
that ensure those hired can delight customers.
From a Total Rewards perspective, figure out all
the awards and recognition that rewards
customer-centric behaviors. From a performance
management perspective, coaching can be put in
place to enforce customer centric standards.
4. Establish measures and articulate results.
After you’ve developed the alignment strategy,
determine how to measure business impact
success. Don’t hesitate to change your approach
if you find the techniques in place are not
impacting the overall objective.
5. Continuously learn. Experiment. Continually
learn how to influence business results. Will it be
changing the total rewards strategy? Or maybe it
is business partners who can use additional
resources? Perhaps it will be in how you hire
future talent. Whatever the case, don’t let the
grass grow under your feet. Keep moving on
discoveries and improvements. You and C-Suite
leadership will be thrilled to see progress towards
overall business objectives.
A New Leadership
Approach
“The main issue is that most leadership
philosophies are grounded in two completely
faulty assumptions: “change is hard” and
“engagement drives results.” When in reality,
change is only hard for the unready and
engagement without accountability will create
entitlement, not results.  Traditional beliefs have
inspired expensive attempts to keep change
from being disruptive to employees. What these
engagement programs actually do is create and
reinforce feelings of victim-hood and leave
employees unprepared to adapt to real changes
that are necessary for the health and profitability
of their enterprises. Rather than driving
performance and creating efficiencies, these HR
philosophies and programs fuel the emotional
waste, entitlement, and drama that drags down
organizations.
Drama is emotional waste and waste is best
eliminated by the implementation of better
processes.  Emotional waste, (i.e. drama) can be
eliminated through great mental processes.  I
propose a radically different approach to HR and
leadership. Changing the ways leaders think and
the strategies they use in their work is a serious
and critical economic issue.  A leader’s role
shouldn’t be — cannot be — to motivate
employees. That is a choice employees make.
Instead, a leader helps others develop the great
mental processes they need to eliminate self-
imposed suffering and choose to be accountable
for driving results.”
~ Cy Wakeman 
Follow Cy on Social Media
On Facebook, Twitter, Instagram, LinkedIn and
YouTube at @CyWakeman.
!7

Disrupting
HR
“For HR (and other disciplines
like IT, marketing, finance, law),
disruption denotes new ways to
think about and solve problems.
HR disruption is about delivery
of HR services, but also about
the logic behind that delivery.
Disruption is not a noun with an
end state, but a verb where the
process of evolving HR
continues. HR disruption is less
about a shift leaving behind one
idea for another (e.g., moving
from operational to strategic)
and more about a pivot of ideas
building on each other (e.g.,
being operational and also
strategic). The disruptive pivots
in HR have been going on for
decades and will inevitably
continue.“
~ Dave Ulrich
HR’s Opportunity
“There are many HR-related concerns that keep executives up
at night — including a lack of candidates with the right skills and
experiences, succession planning, anticipating future work skill
needs and managing a multigenerational workforce,” Dufrane
said. “The opportunity is for HR to provide expertise and
strategic guidance in each of these areas.” ~ Amy Schabacker
Dufrane
Follow Amy and HRCI On Social Media
On Facebook, Twitter, Instagram, Linkedin
HR
TECHNOLOGY
REVOLUTION
Artificial Intelligence, Chatbots, Virtual Reality, Digital Privacy,
Smart Workplaces/internet of things! Oh my, there is a lot to
talk about in this space for HR. While the HR technology
revolution continues to rage on, the HR industry and
professionals need to decide to become either the disrupted or
the disruptors.
The HR industry stands at golden doors of opportunity. Being
able to leverage new technology to minimize low-value activity
thus enabling HR to pivot to a strategic business impact
delivery model is a game changer.
Artificial Intelligence (AI)
If you think artificial intelligence is all hype, let me ask you
this…talk to Siri much? Siri is a voice-activated artificial
intelligence that I argue with occasionally through my iPhone. I
may lose the argument with Siri every time, but it is fun now to
say, “Hey Siri, what time is it?” If it’s early enough, she will
respond “It’s 5 a.m. You woke me up.”
!8

Continuous
Change
“In reality HR disruptions are a
continual process that HR
professionals need to recognize
and master. The exciting
disruptions HR faces today are
critical to the ongoing process of
HR delivering value. In my
teaching, I recognize the half-life
of knowledge, when 50% of my
teaching materials are out of date
because of the pace of HR change.
For me, half life of my teaching
materials is about every 2.5 to 3
years when I need to have 50%
new insights on HR (and
handouts, case studies, and tools).
Disruption is both a challenge to
stay fresh and an opportunity to
continually renew.”
~ Dave Ulrich
Now before you begin to take out your “Leave the human in
Human Resources” arguments, you’ll want to know that the
technology doesn’t necessarily remove “humans” but instead
support a higher level of productivity and effectiveness needed
from humans.
Artificial “assistants” can be used to help improve the
candidate experience and the overall recruitment process. For
example, Google began in 2015 using a recruitment tool called
qDroid, which provides interviewers with better reliable
interview questions. The intent is to reduce interviewer bias in
the recruitment process. Technology continues on its path of
change by also having AI host blind auditions which allow
recruiters to see past keywords on a resume to better assess
the candidate without being hindered by bias.
AI also holds high promise for automating various stages of the
recruitment process, from data gathering, assessment of skill
sets to determining candidate qualifications for the job.
In a world that is on fire of concerns of bias and perceived
bias, AI technology is destined to take off further in the
recruitment space. But AI will continue to influence other
components of HR, such as automating the mounds of email
questions, scheduling meetings, as well employee coaching.
Chatbots
I spoke to “Emma” during our health benefits open enrollment
this year. I found Emma was knowledgeable, friendly,
accommodating. Emma is a chatbot.
A chatbot is a form of artificial intelligence but works as a
computer simulation typically hosted over the internet,
designed to provide a helpful conversation with humans. This
technology can connect employees and job candidates to
answers quickly without having to wait for HR to open on
Monday morning.
Chatbots are not only just answering information but also
collecting real-time information. Chatbots can provide
meaningful information and analysis on the types of questions
being asked, the satisfaction level of employees, and provide
insights on how to efficiently
!9

HRCS
Store
HR Digital Checklist
Need a quick start to assessing
your digital readiness?
Go to the HR C-Suite store for a
checklist to jumpstart your effort!
Take me there!
While chatbots is a new entrance into HR, the technology promises
to become more sophisticated and have quite an impact on how
HR operates in years to come.
Virtual or Augmented Reality
In the raging quest to attract and retain talent organizations are
looking to Virtual or Augmented Reality technology to assist with
this driving business need.
You’ve heard the phrase, “A picture is worth a thousand words.”
Well, then virtual reality must be worth 10,000+ words. Today this
technology is being used to showcase a company in a way that
engages talent. Both through the recruitment and onboarding
process Virtual Reality technology promises to save employees from
having to go through mind-numbing paperwork and hours of
tedious PowerPoint presentations. Instead, it offers the ability to
give employees a guided tour of the company as well as
demonstrate what its like to work there.
There is also a significant opportunity for training to be impacted by
this technology. Virtual reality can simulate realistic scenarios that
employees can learn new skills or techniques without any real
consequence of failure. The potential is endless.
Smart Workplaces/Internet of Things
There is a new term in town, the “Internet of Things (IoT)” We are
surrounded by devices and machines when connected to the
internet are designed to enhance every aspect of our reality. You are
undoubtedly familiar with smartphones, smartwatches, wearable
technology, smart appliances, smart rooms by now.
But what about smart workplaces?
Smart office sensors can regulate office temperatures through
automation. These sensors can track workspace usage patterns
and adjust lighting and HVAC settings and send alerts to wearable
devices or desktop computers.
Internet of Things can impact safer workplaces by providing smart
locks, smart doorbells, and smart surveillance systems. Smart
inventory systems can notify and renew low supplies. The list of
possibilities is again…endless.
!10

The
Organization
Matters
“ Ta l e n t m a t t e r s , b u t
organization matters more. In
the academy awards, the
winner of the leading actor or
actress Oscar is in the movie
that wins best picture Oscar
about 20% of the time; in team
sports (basketball, hockey,
soccer), the leading scorer is on
the team that wins the
championship about 20% of
the time. Individuals may be
champions, but teams win
championships.”
~ Dave Ulrich
HRCS
Store
Organization Design Checklist
Need a quick start to evaluating
organizational design?
Go to the HR C-Suite store for a
checklist to jumpstart your effort!
Take me there!
Data Privacy
While we are excited about the endless opportunities advancing
through technology, we can’t end this chapter without a cautionary
note about the dark side. Data breaches appear to be at an all-time
high. Cyber hacking continues to be one of the top threats for
organizations worldwide. Top tips for protecting your workforce and
securing your data include:
1. Educate employees on safe computing and internet practices.
2. Provide training drills on phishing attempts to increase your
employees’ awareness.
3. Encrypt computer hardware, online communications in chat or
email.
4. Consider providing Identity Theft Protection benefit options for
employees.
5. Establish a communication plan ready to go in the event a
breach should occur. In this case, silence is not golden.
A final note, don’t let fear stop you from becoming the best you can
be. Leveraging technology and social media is a way to go. Just be
smart about it.
ORGANIZATIONAL
DESIGN
Organizational design persists as a top trend for HR. Organizational
design refers to the structure of work — networks, collaboration,
work arrangements, virtual teams, matrix and collaborative
approaches to organizational design. It may also involve spinning off
business units, mergers, and acquisitions, team design, as well as
deliberate culture shaping activities.
The driving need to be agile drives organizational design as a top
trend and priority for HR. Teams have taken on a new level of
energy in organizations today. Organizations have found benefits in
developing teams as opposed to singling out high performers and
relying heavily on them.
!11
 The War For Talent
“The war for talent has gone on too long for most companies. It
is time to win the war by shifting the focus from managing talent
to creating the right organization. Organization has four times
the impact of talent on business financial results and stakeholder
value. When leaders understand the importance of organization
and adapt the steps we suggest, organization becomes a form
of sustained competitiveness.” ~ Dave Ulrich

Follow Dave On Social Media

Facebook, Twitter, Instagram, Linkedin

But organizational design goes beyond just changing a few job titles
and moving a box or a line on an organizational chart. Pay equity,
work, and technology alignment, core capabilities alignment,
information flow, governance, and leadership alignment all matter in
effective organization transitions. And…we haven’t even really
explored the organizational culture.

Studies show that while organizational change may be driven from

the top, the C-Suite isn’t executing effectively. A recent Gartner-CEB
Organizational Structure Benchmarking Report indicates a 42%
success rate when the organizational redesign is driven strictly from
the top without input from others. These transitions translate into
($32.5 Million) in lost employee productivity per change (per $1
billion in revenue) for 3 out of 5 organizational changes in the past
three years on average per organization.

HR executives need to be on their toes about how the business best

functions and how to engage in organizational design that drives
business results. Not only knowing how to restructure an
organization but also how to motivate and inspire teams will
continue to surface as an important throughout 2018.

!12
 Disrupting
HR
“For HR (and other disciplines
like IT, marketing, finance, law),
disruption denotes new ways to
think about and solve problems.
HR disruption is about delivery
of HR services, but also about
the logic behind that delivery.
Disruption is not a noun with an
end state, but a verb where the
process of evolving HR
continues. HR disruption is less
about a shift leaving behind one
idea for another (e.g., moving
from operational to strategic)
and more about a pivot of ideas
building on each other (e.g.,
being operational and also
strategic). The disruptive pivots
in HR have been going on for
decades and will inevitably
continue.“
~ Dave Ulrich
HR Strategic Planning
Timesaver Kit
Need a plan and quick?
Go to the HR C-Suite store for a
checklist to jumpstart your effort!
Take me there!
EMPLOYEE AND
CANDIDATE
EXPERIENCE
The quest to engage, motivate, and reward employees is an
ongoing focus for employers and the reward is elusive.
Meanwhile, the war for talent rages on. Employers are in an all-
out push to engage employees and attract candidates. Survey
after survey continues to persist as the annual or quarterly
routine. Collecting and analyzing data, attempts at exit
interviews, and rounding on employees wind up being a high
energy and low-calorie outcome when it comes to recruitment
and retention.
Why? In the whirlwind of activity, many employers tend to
overlook one significant detail - The Experience.
The experience is known as the perceptions the job candidate or
employee form about the company during the hiring process and
the employee lifecycle. As I mentioned in the introduction of this
report, an employee once approached me about having her
schedule texted to her. That is an employee experience request.
Think of what makes or breaks an ideal experience for you.
• Convenience
• Rapid communication
• Efficient and effective process
• Respect
• All delivered with a smile and right attitude.
Long gone are the days of, “They should just be grateful to have a
job” or “They should be thrilled at the chance to apply for our open
job.” If that is still the prevailing thought in your workplace, don’t look
now but here come social media! Candidates and employees are
writing more and more about their experiences online. Sites like
glassdoor.com or indeed.com make sure that feature is available for
!13

HRCS
Store
HR Digital Checklist
Need a quick start to assessing
your digital readiness?
Go to the HR C-Suite store for a
checklist to jumpstart your effort!
Take me there!
If social media sharing doesn’t give HR enough of a heartburn the
continued challenges of sexual harassment, workplace violence and
other issues that threaten the very existence of having an excellent
employee experience platform in the workplace.
Here are actionable steps to improving the experience:
1. Leadership support: If leaders don’t care about candidate or
employee experience, then any initiative is dead on arrival. If
your leadership culture is ripe with an uncaring attitude, you may
want to first start with developing a strong business case as to
why they need to care.
2. Design thinking approach: Consider going through your job
application and hiring process with the eye of defining a great
experience.
3. Look up and out for help: Try partnering with cross-functional
subject matter experts such a marketing, IT and real estate for
new design considerations.
4. Culture change: Go ahead be brave. Take on that snarling,
smelly aspect of your culture that drives off people. Even if you
have to chip away over time at it. Of course, this would be more
effective if you have leadership support. See point number 1
above.
PERFORMANCE
COACHING AND
DEVELOPMENT
Skills shortages and digitalization intensifying, raising performance
takes center stage. Many companies are looking for their
employees to support new ventures that require different skill sets.
This might also be called “reskilling.”
The very definition of resilience is having the capacity to recover
quickly from difficulties. It also is having the ability to spring back
into shape or having elasticity. To overcome obstacles requires
learning new things, picking up new skills and having a positive
mindset.
!14
 Now I get this is not easy and especially encouraging an entire
workforce to have a resilient mindset. But the very survival of
organizations depends on its workforce’s ability to adapt to a
new era of business.

Market forces, increasing competition, rapidly changing

technology and shifting customer demands, require
employees to remain relevant and adaptable. As a result, there
is a great deal of pressure on an organization’s ability to coach
and develop performance. AT&T knows this all too well as they
have launched into a 100,000 employee retraining initiative to
prepare them for radically new jobs.

A McKinsey Global Institute report indicates that between 75

million and 375 million workers globally will have to learn new
skills by 2030 because of automation, artificial intelligence, and
robotics. Through technological advancements, jobs will be
lost and gained too. It is true that some tasks will be eliminated
however new functions will be created.

There will be some people who cannot advance to new skills.

Through proactive and aggressive reskilling and development
campaigns, the ultimate goal will be to ensure that number of
unskilled employees remain low.

Give our guest thought

leaders a shout out on social Follow
media. HR C-Suite
Give a special thanks to: facebook.com
• Cy Wakeman @CyWakeman
• Dave Ulrich @Dave_Ulrich linkedin.com
• Amy Schabacker Dufrane, Ed.D, SPHR, CAE @HRCI_CEO
twi1er.com
Let them know that HR C-Suite @hrcsuite sent you!
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