Transformational HR:

The People
Strategy
H R F u n c t i o n Report 2019
 Summary
It’s a challenging and transformative time for
CHROs in all industries as organizations play
catch-up with much-delayed people-focused
strategies. From being seen as expendable
assets, talents have become one of the most
important ‘raw materials’ in their organizations,
and chief HR officers (CHROs) are joining other
C-suites in taking on a more strategic role in
business growth.
Our latest trend report, Transformational
HR: The People Strategy, will provide you
with insights from leading HR leaders on top
technological implementations and challenges
of their function, as well as upcoming HR
trends for the year 2020.

Tasked with engaging, retaining and managing

employees, the modern CHROs are responsible
for developing a workplace that encourages
diversity and inclusion, and also for the
integration of technologies to drive greater
workforce efficiency to achieve organizational
goals.

HR Function Report 2019 01

 Survey
Demographic 15%
Others
15%
Construction

5%
Services

5%
15%
Industrial
Healthcare and
Products and
Equipment
Industries Life Sciences
Executive Surveyed Surveyed

35%
CHROs / Top Executives 10%
Retail and
in Business Unit Consumer

65%
Senior Business and
15%
Technology Executives 10% Telecom
Public Sector

10%
Financial
Services

HR Function Report 2019 02

Evolution of HR
Deep analytical
skills

Strong Board
communication governance
The advent of disruptive technologies has
skills understanding
lent a long-awaited hand in moving the
traditional and siloed role of HR manager to
the well-rounded business leader of today.

With a growing importance and significance

in business strategy, the modern CHRO Strategic Traits of the Leadership
mindset capabilities
now actively contributes to executive table Modern CHRO
discussions with other C-levels to formulate
organizational plans and goals.

Technologically- Transformation
abled management
Diversity,
inclusion and
culture driven

HR Function Report 2019 03

Big Data Analytics
Data-Driven HR
Big data analytics tops the list of Why?
technological priorities among our As mentioned by the Global Vice President
surveyed CHROs, of which 75% are in the of SAP SuccessFactors, “The role of HR
midst of implementing advanced analytical is to generate revenue, minimize expenses,
tools in their function. This aligns with mitigate risks, and execute strategic plans.”
findings by database giant, Oracle, which HR analytics enables the function to
found that 94% of HR leaders are using evaluate and enhance recruitment,
data to predict employee turnover patterns training, productivity, and overall business
and career development goals. performance, all of which interrelate with Cultivate Data Analytical Skills
the end goals of both the function and the
company. Is your hiring criteria related to actual
productivity?
How?
CHROs are leaning on predictive and Is a spike in turnovers related to a
prescriptive analytics to discover specific event or time?
meaningful patterns, and determine what
will and what should happen. They are Are there consistent areas in
also leveraging on intelligent technologies, employee complaints?
including machine learning and Internet of
Things (IoT).

HR Function Report 2019 04

Machine Learning and IoT
The Makings of Intelligent HR
67% CHROs are preparing for
machine learning
Machine learning is able to detect patterns and
make predictions based on HR data, freeing up
the function from repetitive manual tasks and
allowing more time on strategic projects.
Machine learning helps CHROs in:
Analyzing profiles and resumes for recruiting
Automating HR workflow and processes
Attracting top talents through intelligent
algorithms
Creating personalized and custom talent
training
Measuring employee engagement and
productivity
Predicting talent success and development
HR Function Report 2019
42% CHROs have implemented
Internet of Things (IoT)
Internet of Things (IoT) enables the function and
talents to stay connected through wearables and
smart devices, with speech and signals predicted
to be the fore communication methods.
IoT enhances the talent function
through:
Assigning tasks remotely to employees
Monitoring live work performance
Providing real-time training
Optimizing communication and efficiency
Measuring employees’ wellbeing
Enabling a flexible work environment
05
Augmented and Virtual Realities
Immersive Connectivity
As with other emerging technologies, grow to USD 209 billion by 2022. Although
augmented reality (AR) and virtual reality training seems to be the most used
(VR) are increasingly used to enhance application for the extended realities, there
23% 7%
the productivity and processes of the are other revolutionary ways to utilize AR
No Activity Scaling
talent function. In fact, Greenlight Insights and VR in HR.
predicts global spending on AR and VR to

RECRUITMENT:
AR/VR technology allows job
candidates to demonstrate their
practical skills for HR to assess and
pinpoint the most skilled talent.
ENGAGEMENT:
VR engages the global workforce AR and VR
to participate in team-building
Implementation
activities and conferences, which
help to improve employee retention.

ONBOARDING: ASSESSMENT:
39% 31%
VR improves onboarding AR/VR helps to assess talents’ In Production
On The Radar
experiences by creating virtual capability in difficult situations, or Scaling
tours and integrating new hires into and also cultivate their aptitude for
the company culture and values. managing stressful complexities.

HR Function Report 2019 06

The Cost of Quality
Talent Lack of specific talent and skills 58%

Q: What are the biggest challenges for the adoption

of emerging technologies in your function?
Culture does not embrace
experimentation and risk-taking 50%
It was reported by Deloitte and Society for Forward-thinking CHROs are taking the
Human Resource Management (SHRM) that initiative to cut acquisition and other HR Inflexible legacy infrastructure 42%
cost-per-hire in the United States averages costs by leveraging on digital tools. However,
USD 4,000, while the cost of losing a good they are faced with multiple challenges in the
talent is almost 8 times that amount. adoption of these technologies. Siloed organization structure 33%

Regulatory challenges 33%

Lack of KPIs for digital

transformation progress 33%

HR Function Report 2019 07

Uptraining and Rightskilling
Dealing with Skill
Shortages
When dealing with skill shortages, more often
than not, the first action that comes to mind
is to hire new talents with the appropriate
expertise. However, at the rate technology
is evolving, most likely those skills will be
obsolete very quickly, thus continuing the
endless hiring cycle.
That is why many CHROs are looking
internally to find in-house talents, both new
and existing, who can be retrained and reskilled
through customized and easily consumable
training programs.
HR Function Report 2019
The biggest barrier to the change in finance is leadership
mindset - alongside getting to grips with technology.
Leaders need to keep up to speed on technology trends.
– Head of Talent Acquisition at Thomson Reuters
While existing employees might not have the The transition will be challenging as talent
exact skills or knowledge, they are already leaders will have to upgrade their own skills
familiar with the company culture, clients, while retraining the workforce, but the key
and business methods. Retraining them will is to get started and begin with one function
not only close the skill gap, but also reinforce problem at a time.
their work engagement and commitment to
the workforce.
08
Future Trends
Approach to Future
Tech Adoption
CHROs will be embracing the reskilling trend Adoption approach of emerging Current Future
in the near future as 92% of our surveyed HR technologies
leaders affirmed that employee training will
be their future strategy in managing the lack Building capabilities ourselves by training
69% 92%
of digital skills. Hiring new talents came in employees
next, but with a wide gap of 25%. This finding
Building capabilities by hiring new
reasserts the increasing importance of talent 85% 67%
employees with the required skills
retention and development, and the adaption of
the traditional function to the rapidly changing
job landscape. Partnering with vendors and consultancies 77% 58%

Partnering with organizations from other

industries to create ecosystems 31% 50%

HR Function Report 2019 09

Future Trends
Contemplating
Future Tech
Q: What would be your top considerations in
choosing a technological investment?
Availability of talent and skills 73%
Accelerate the pace of innovation/
Availability of digital skills and knowledge is Surprisingly, budget is not a concern for the speed of development 64%
the topmost priority for CHROs considering talent executives seeking to implement a
a technology for their function, which technology, which stands at only 9%.
Defend security, privacy and risk
aligns with our findings on current talent
governance 46%
management trends.

Find solutions for societal, social and

environmental challenges 46%

Identity and reflect customer

expectations and wants 36%

HR Function Report 2019 10

 One to Watch
Voice Technology
in HR
Voice-activated technologies have one of the 
Voice-assisted recruiter to interview
biggest jumps in future implementation among candidates, schedule interviews, and
the surveyed HR leaders. 70% of talent leaders answer questions
are looking to shift to post-text communications 
Decision tree modules to update and
in the next few years, bringing a near end to the assist managers with problems and
traditional written methods of old. recommended solutions

Trends show increased usages for In light of all the potentials, CHROs need to
conversational technology in the HR function, realize that voice technology should be tailored
such as: to the individual staff and business unit, and

Voice-activated next-gen chatbots to should be effective and high-impact to fit the
answer frequently asked HR questions time block of the listener.

Virtual assistant in sharing information,
arranging schedules, applying leaves, and
more

Feedback tool to gauge employee morale,
sentiment and feelings

Digital coach or trainer for advices, training,
instructions and work direction

HR Function Report 2019 11

Success Story
KFC’s Voice Training
With 22,621 outlets in 136 countries as of It’s mainly a video and voice experience that’s all voice- So far, the voice training has been built to
December 2018, KFC is one of the leading fast
enabled. So the employee can say, “KFC training” and it answer the top 100 questions from employees,
food chains in the world, and is also one of the and feedback has been highly positive. After
brands that is leveraging heavily on modern will launch for them, and they can ask any question of the testing the new training method, the chain
technologies for their employee trainings. device. (For example, if an employee asks) “How do I box discovered that employees learnt easier and
this three-piece meal?”, it will visually show on the screen faster, gaining job confidence and efficiency in
In August of 2018, KFC tested out voice- just one week, compared to the usual four to
activated training technologies in their U.S.
how to box it up as well as the audio input saying how to
five weeks.
stores, and succeeded in cutting back-of- do it in real time.
house training time by 75%. The brand’s – KFC Global Chief Digital Officer
new voice training is aimed to drive real-time
learning and engagement, where backend
employees receive audio and visual solutions
on an Amazon Echo Show unit.

HR Function Report 2019 12

Gearing Up for 2020
The HR function is already in the midst of a revolution, and will be facing an even more
transformative times in the coming year with these upcoming trends.

Broader Skill Sets New Workforce Gig Economy

Change of Title
The new CPO will need more than As the millenial and Gen Z workforce It is estimated that by 2020, 40%
With the rising emphasis on people
the typical HR skills. They will have increases, the HR function needs to of U.S. employees will be free
analytics and strategy, the CHRO
to possess business strategy and reshape itself in providing flexible agents. The HR function needs to
title is set to change to the more
data acumen, and skills in finance, work arrangements, smoother prepare itself to manage a remote
appropriate name of Chief People
psychology, communication and communication, and better workforce and the technologies
Officer (CPO).
technology. leadership concepts. associated with it.

Tech Meets HR Outsourced HR Gamification

HR Analytics
From chatbots and RPA to AI As automation rises, the function HR gamification is expected to rise
Data will be increasingly important
and VR, the function will be will see a growth in outsourced in 2020, as a tool for recruitment,
in discovering new and useful
implementing more HR tech to HR solutions, freeing the internal onboarding, training, company
insights, and in providing the CPO
improve recruitment, payroll, team to focus on more strategic culture cultivation, productivity,
with actionable solutions and
communication, and employee areas and meaningful employee long-term engagement, and internal
evidence to back up their decisions.
wellness and development. connections. collaboration.

HR Function Report 2019 13

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