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za-2018-HCtrends - South Africa - 090518
za-2018-HCtrends - South Africa - 090518
za-2018-HCtrends - South Africa - 090518
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CONTENTS
HUMAN CAPITAL TRENDS IN 2018: TOP FINDINGS FOR SOUTH AFRICA | 06
1
The rise of the social enterprise
Introduction
The rise of the social enterprise
We are pleased to share with you the 2018 Deloitte Human Capital Trends Report for
South Africa. This country report is a companion to the Deloitte Global Human Capital
Trends 2018 report, which is one of the largest of its kind in the world. Over 11 000
executives from 124 countries participated in the global survey, including 354 South
African business and HR leaders. These professionals offered insights into the future of
work and human capital’s valuable role in shaping it. Our theme for this year, “The rise
of the social enterprise”, reflects the shift in the growing importance of social capital
in shaping an organisation’s purpose, guiding its relationships with stakeholders and
influencing its ultimate success or failure.
I
n 2018, we are witnessing seismic changes in the In the last Deloitte Global Human Capital Trends
workforce, the workplace, and the technologies report, we noted the movement of many organisations
used in the world of work. Organisations are no towards a “network of teams” operating model that
longer assessed based only on traditional metrics aims to enable greater collaboration and internal
such as financial performance, or even the quality agility. This movement has been joined by the
of their products or services. Rather, organisations growing shift from an internal, enterprise focus to an
today are increasingly being judged on the basis external, ecosystem one, as shown in Figure 1. The
of their relationships with their workers, their evolution of the social enterprise. Organisations on
customers, and their communities, as well as the leading edge of both of these changes embody
their impact on society at large – what we see is a our concept of the social enterprise: an organisation
transformational shift from business enterprises that is alert enough to sense, and responsive
into social enterprises. (2018 Deloitte Global Human enough to accommodate, the range and scope of
Capital Trends report). stakeholder expectations and demands. (2018
Deloitte Global Human Capital Trends report)
2
2018 Deloitte Human Capital Trends Report For South Africa
Ecosystem
External focus
Increased
engagement Social
with external enterprise
LEVEL OF EXTERNAL FOCUS
actors
Increased
Traditional collaboration
organisation and internal
integration
Enterprise
Internal focus
Functional Symphonic
Siloed operating LEVEL OF COLLABORATION “Network of teams”
model AND INTERNAL AGILITY operating model
Source: Deloitte Global Human Capital Trends survey, 2018. Deloitte Insights | deloitte.com/insights
3
The rise of the social enterprise
PAM MAHARAJ
Director: Human Capital Leader Africa
pammaharaj@deloitte.co.za
+27 (0)82 458 2518
TREVOR PAGE
Director: Human Capital Trends 2018
trepage@deloitte.co.za
+27 (0)82 080 6702
4
2018 Deloitte Human Capital Trends Report For South Africa
People data:
How far
is too far?
2
3 Well-being: A strategy
and a responsibility
4
The symphonic c-suite:
teams leading teams
New rewards:
Personalised, agile
and holistic
6
From careers to
7 experiences: new
pathways
AI, robotics, and
automation: put
humans in the loop
8
The longevity dividend:
Work in an era of 100 –
9 year lives
The workforce
ecosystem:
managing beyond 10
the enterprise
5
The rise of the social enterprise
The 2018 Deloitte Global Human Capital Trends survey measures the importance of
critical trends and issues, as well as an organisation’s perceived readiness to address
the challenges. The difference between importance and readiness for specific trends
is termed the “capability gap”, which measures how prepared organisations are to
respond to the most urgent human capital issues.
Figure 2. 2018’s top 10 global human capital trends: Importance and respondent readiness
85%
The symphonic C-suite
46%
85%
People data
42%
84%
From careers to experiences
37%
84%
Well-being
49%
82%
Hyper-connected workplace
45%
77%
New rewards
37%
77%
Citizenship and social impact
51%
72%
AI, robotics and automation
31%
69%
The longevity dividend
34%
65%
The workforce ecosystem
30%
Figure 2. 2018’s Top 10 Global human capital trends: Importance and respondent readiness shows, four trends
that exceed 80 percent importance in 2018. In addition, two trends – “AI, robotics, and automation” and “New
rewards” – showed more than a 40 percent gap between importance and readiness.
6
2018 Deloitte Human Capital Trends Report For South Africa
Figure 3. 2018 South African scores ranked by importance depicts the top trends for South Africa rated
according to importance. The results this year indicate that the Hyper-connected workplace, People data, and
Well-being are seen as most important. The top three trends in 2017, ranked by importance, were Organisation
of the Future, Employee Experience, and Talent Acquisition.
Figure 4. 2018 South African scores ranked by readiness shows how respondents rate their organisation’s
readiness to face the human capital issues and trends identified in 2018.
7
The rise of the social enterprise
Figure 5. 2018’s top 10 human capital trends for South Africa: Importance and respondent readiness
90%
Hyper Connected Workplace
59%
90%
People data
65%
89%
Well-being
53%
89%
The symphonic C-suite
58%
88%
Citizenship and social impact
47%
85%
New rewards
69%
84%
From careers to experiences
67%
74%
AI, robotics and automation
76%
72%
The longevity dividend
73%
70%
The workforce ecosystem
77%
Importance Readiness
The top five trends for South Africa Other notable trends to
in 2018, based on importance, are: consider include:
1. HYPER-CONNECTED WORKPLACE 6. NEW REWARDS
2. PEOPLE DATA 7. FROM CAREERS TO EXPERIENCES
3. WELL-BEING 8. AI, ROBOTICS, AND AUTOMATION
4. THE SYMPHONIC C-SUITE 9. THE LONGEVITY DIVIDEND
5. CITIZENSHIP AND SOCIAL IMPACT 10. THE WORKFORCE ECOSYSTEM
8
2018 Deloitte Human Capital Trends Report For South Africa
The hyper-connected
workplace
9
The rise of the social enterprise
As these tools migrate from personal life to the The symphonic C-suite 89% 58%
82.81%
81.25%
79.30%
75.00%
66.02%
62.89%
62.50%
60.55%
56.25%
46.48%
24.22%
23.44%
19.92%
20.31%
4.30%
2.73%
0.78%
0.78%
Email Text Phone/Voice Work-based Personal Instant Social Online Other None of
mail social social messaging messaging collaboration the above
media media apps platforms
Personal Professional (i.e. Slack)
10
2018 Deloitte Human Capital Trends Report For South Africa
The majority of respondents (76 %) state that different globally and the global findings show that
connected work tools have a positive impact face-to-face meetings and phone meetings are on
on personal productivity, with only 3 % giving the decline, while work collaboration platforms are
a negative response in this regard. Even though there on the upswing. South African respondents’ overall
are many new technologies available, only a small preference remains face-to-face and telephonic
percentage of South African respondents consider communication as shown in Figure 7. The status
using social messaging and online collaboration of preference in South African communication
tools in the next three to five years. The results are channels in the next 3–5 years.
Figure 7. The status of preference in South African communication channels in the next 3–5 years
16.02%
34.38% 24.61%
39.45%
30.86%
60.94% 69.14% 67.19%
46.88%
73.83%
78.91%
41.02%
38.67%
53.13%
32.42%
28.83% 29.30%
27.34%
28.52%
24.61%
21.88%
18.36%
Face to face E-Mail Text Phone/ Work-based Personal Instant Social Online
meetings Voice mail social social Messaging Messaging Collaboration
media media Apps Platforms
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The rise of the social enterprise
Figure 8. Primary drivers of adoption of new communication channels and connected work tools,
communication channels and connected work however only 14 % of organisations allow employees
tools illustrates that many local organisations to use emerging channels. This could be because of
only consider implementing new technologies or IT security protocols in place, budgetary constraints,
software tools once these have been approved by or lack of awareness of the new tools and platforms
their Information Technology (IT) department. It is available.
clear that IT and HR are the primary drivers of new
Figure 8. Primary drivers of adoption of new communication channels and hyper connected work tools
35.16%
34.38%
12.89%
10.16%
7.42%
12
2018 Deloitte Human Capital Trends Report For South Africa
Figure 9. Describe your organisation’s use of emerging communication channels and hyper connected workplace tools
39.39%
36.70%
14.48%
9.43%
We only permit the use We allow access to We allow employees We identify emerging
of well-established emerging tools and to use emerging channels and
communication/ channels after communication promote/encourage
collaboration careful review and channels and tools their use among
tools approval by IT freely employees
13
The rise of the social enterprise
People data
14
2018 Deloitte Human Capital Trends Report For South Africa
People data
How far is too far?
more than half of our global survey respondents are Well-being 89% 53%
actively managing the risk of employee perceptions
of personal data use, and a similar proportion are The symphonic C-suite 89% 58%
Figure 10. Responsibility role for ensuring privacy and security of HR data
81.33%
12.05%
3.01% 3.61%
15
The rise of the social enterprise
Just over one-quarter of respondents noted that data analytics, as can be seen in Figure 12. Capabilities in
and people analytics are not considered to be drivers measuring and analysing talent data.
of value and that there are no strong data governance
structures in their organisation, see Figure 11. “We predict explosive growth in the coming
Description of organisation’s use of people data. year for smart products that leverage employee
data. The spectrum of risks associated with the
However, 46 percent report that data and metrics collection, storage and use of this data can and
are playing an increasingly important role in should be effectively managed. Strategies such
organisational decisions and that moderate to as anonymisation and encryption can allow
strong governance policies enhance data security, organisations to make effective use of people data
privacy, and accuracy in their organisation’s use of while managing the risks associated with storing and
people analytics. Most organisations use data for processing various kinds of personal information.”
operational purposes and not for more advanced (2018 Deloitte Global Human Capital Trends
report)
46.18%
26.58%
18.60%
8.64%
Data/people analytics Data and metrics play an People analytics are a part People analytics is an
are not considered a increasing role in of most talent and some integral part of business
value driver and there organisational decisions business decisions and and talent decisions and
are no strong data and moderate to strong strong data governance HR is an active paricipant
governance structure governance policies policies exist in a strong data
enhance data security, governance structure
privacy, and accuracy
65.06%
22.89%
7.83%
4.22%
16
2018 Deloitte Human Capital Trends Report For South Africa
17
The rise of the social enterprise
Well-being
2018 Deloitte Human Capital Trends Report For South Africa
Well-being
A strategy and a responsibility
Figure 13. Employee wellness/work-life balance programmes currently in place in the organisation
Reimbursement 6.67%
Telecommunication 10.59%
19
The rise of the social enterprise
68.52%
59.26%
49.38%
45.68%
41.98%
38.27%
13.58%
4.94%
20
2018 Deloitte Human Capital Trends Report For South Africa
Figure 15. Description of organisation’s current In order to be beneficial and sustainable over the
position towards employee well-being shows that long term, a more holistic strategy and approach
16 % of respondents’ organisations are not working is required based on research of successful
on any well-being programme, while only 4 % offer programmes locally and worldwide. Well designed
extensive well-being programmes and actively and executed well-being programmes have the
analyse the impact on productivity and efficiency. potential of significant improvements in employee
engagement and productivity.
The results indicate that most well-being programmes
are isolated in nature and not continuous.
47.12%
31.86%
16.27%
4.75%
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The rise of the social enterprise
The South African context There is also a poor evidence base with which to
measure the return on investment of well-being
South Africans are becoming increasingly aware strategies, which results in inertia when it comes to
of the importance of illness prevention in the implementation.
maintenance of good health. This gives organisations
an opportunity to help people make informed It is interesting to note that our 2018 Deloitte
decisions about their well-being. In general, more Health and Wellness report shows that consumer
companies are engaging with their employees and demands are moving towards health and wellness,
their employees’ communities to meet health and transparency, safety, social impact and experience.
wellness needs; however, the results shown in Figure All of these factors are driving consumer preferences
15. Description of organisation’s current position for goods and services. See Figure 16. What’s good
towards employee well-being, show that well-being for consumers is good for business; changing
programmes tend to be isolated interventions. Just consumer demands are driving preferences for
47 % of South African organisations offer very basic products and services. (Deloitte 2018 Health and
services in this regard, such as safety, employee Wellness report).
assistance, and medical aid schemes.
Despite increased corporate attention and
A lack of insight into tracking health and wellness investment in well-being, our research indicates
issues could be a hindrance to enhancing employee that South African companies must do a better job
well-being and benefitting from its impact on connecting well-being programmes with employee
productivity. The lack of infrastructure to monitor expectations. Globally and in the South African
and measure these programmes also makes it market, substantial gaps remain in many areas
difficult to identify individuals who are at high risk between what employees value and what companies
and who might need long-term health and wellness offer to their employees.
interventions.
Figure 16. What is good for consumers is good for business; changing consumer
demands are driving preferences for products and services
Transparency
Health &
Price
Wellness
Convenience Social
Impact
Experience
Transparency
22
2018 Deloitte Human Capital Trends Report For South Africa
23
The rise of the social enterprise
To do this, they must collaborate in what we call the The symphonic C-suite 89% 58%
25
The rise of the social enterprise
39.20%
28.24%
16.61%
15.95%
CXOs manage their CXOs manage their CXOs occasionally CXOs regularly
functions independently functions independently partner on an ad hoc collaborate on long term
with little cross-function but collaborate to share initiatives or projects interdependent work
al collaboration ideas or troubleshoot
problems
26
2018 Deloitte Human Capital Trends Report For South Africa
Forty one percent of respondents feel that C-suite Where can C-Suites start?
leaders are becoming increasingly interdependent.
Although the results indicate that there exists A first step is for the CEO to review priorities for each
frequent collaboration between C-suite leaders, C-suite leader and determine how each can have an
there is still room for improvement. See Figure impact more broadly across the organisation.
18. Description of how your C-suite leaders work
together. Next, cross-disciplinary projects should be prioritsed
so that the CxOs can form specific alliances and align
The competencies needed to work collaboratively their efforts to drive success.
include:
–– Emotional intelligence, but more specifically Last, executive teams need to put those cross
understanding how cultures and individual disciplinary projects on the agenda, not only for
people differ in terms of what motivates them themselves but for the organisation as a whole to
on a deeper level, or their “psychological increase the visibility of their collaboration for the
capital”. rest of the workforce as a model to follow. (2018
–– Knowing how to adjust communication style Deloitte Human Capital Trends report)
to suit different audiences and influence them.
–– Understanding different techniques to build
strong relationships and synergies throughout
the organisation.
–– Dealing with complexity.
–– Being comfortable with ambiguity.
41.86%
35.22%
22.92%
27
The rise of the social enterprise
28
2018 Deloitte Human Capital Trends Report For South Africa
29
The rise of the social enterprise
Citizenship and
social impact
30
2018 Deloitte Human Capital Trends Report For South Africa
32.05%
28.21%
21.79%
17.95%
We do not focus heavily Social responsibility Social responsibility is high Social responsibility is
on social responsibility programmes exist on our list of priorities as a one of our top priorities
but are not well-developed driver of employee and and is reflected in our
/invested in customer branding corporate strategy
31
The rise of the social enterprise
Forty-five percent rate the CEO as the primary driver of social impact efforts in their organisation.
Figure 20. Primary driver of the social impact efforts in your organisation
45.76%
22.88%
19.56%
9.23%
2.58%
The primary purpose of social impact programmes services to charitable organisations, team-based
in 46 % of respondents’ organisations is to improve volunteer days, and paid time off for qualified
the communities in which they operate. Most social volunteer opportunities. See Figure 21. Primary
impact programmes include matching donations to purpose of social impact in your organisation.
qualified charities, in-kind donations or pro-bono
46.06%
16.97%
14.55%
9.70%
7.88%
4.85%
32
2018 Deloitte Human Capital Trends Report For South Africa
33
The rise of the social enterprise
34
2018 Deloitte Human Capital Trends Report For South Africa
Analysis of trend
A mere 12 % of South African respondents
state that their organisation gives employees
exposure to high-performing peers, offers
internal coaching, or provides mentoring and
the facilitation of external coaches/mentors
in career development programmes.
35
The rise of the social enterprise
36
2018 Deloitte Human Capital Trends Report For South Africa
37
The rise of the social enterprise
38
2018 Deloitte Human Capital Trends Report For South Africa
Summary of Global
industry results
The survey also canvassed responses by industry groupings and the global picture in
terms of the relative importance of these trends, as shown in the chart below. Clear
similarities and differences between these groups can be seen, highlighting the
industries where a lot of disruption is occurring versus those that are more stable.
The symphonic
C-suite
85.0% 86.4% 83.6% 85.6% 85.6% 84.9% 86.3% 77.1% 82.6% 87.4%
People data 84.8% 85.8% 83.9% 89.2% 85.0% 81.2% 84.0% 78.6% 79.1% 89.8%
From careers
to experiences
84.1% 83.9% 83.3% 86.1% 82.8% 81.2% 84.5% 78.6% 86.1% 88.9%
Well-being 84.0% 83.4% 85.3% 84.4% 85.3% 82.6% 83.5% 79.7% 88.1% 86.5%
The hyper-
connected 82.1% 79.1% 79.9% 85.0% 80.4% 74.4% 86.2% 77.0% 81.1% 90.0%
workplace
New rewards 77.4% 79.7% 75.3% 79.2% 74.4% 77.7% 79.3% 65.8% 81.6% 80.2%
Citizenship and
social impact
76.7% 76.6% 80.5% 78.9% 80.7% 73.1% 74.8% 77.7% 70.1% 75.9%
AI, robotics,
and 72.4% 69.2% 75.7% 80.7% 73.1% 75.7% 71.0% 55.9% 65.2% 77.0%
automation
The longevity
dividend
69.1% 67.7% 73.9% 67.8% 70.0% 71.0% 67.0% 69.7% 76.1% 65.7%
The workforce
ecosystem
65.4% 65.0% 66.7% 63.4% 58.5% 60.9% 73.0% 58.9% 66.2% 69.3%
n = 11,070
Note: Figures represent the percentage of respondents rating each trend “important” or “very important.”
Source: Deloitte Global Human Capital Trends survey, 2018.
39
The rise of the social enterprise
Appendix:
Survey demographics
Survey demographics
South African respondents: Respondent demographic:
Total: 354 Total: 11 070
India - 724 7%
43%
Job function 47% Region
Belgium - 649 6%
57%
Germany - 429 4%
HR APAC (2 428)
EMEA (5 243)
Canada - 322 3%
Norway - 302 3%
France - 261 2%
31%
Japan - 236 2%
43%
n 47% Region
Spain - 232 2%
Australia - 229 2%
22%
Ireland - 212 2%
Americas (3 399)
APAC (2 428) Poland - 198 2%
EMEA (5 243)
Americas includes:
United States, Mexico, Brazil, Canada, Colombia, Ecuador, Costa Rica, Uruguay, Dominican Republic, Peru, Argentina, Guatemala, El Salvador, Chile, Panama,
Venezuela, Trinidad and Tobago, The Bahamas, Barbados, Belize, Bermuda, Jamaica, British Virgin Islands, Cayman Islands, Nicaragua
APAC includes:
China, India, Japan, Australia, New Zealand, Hong Kong, Singapore, Korea, Malaysia, Indonesia, Thailand, Philippines, Vietnam, Bangladesh, Pakistan, Taiwan,
Kazakhstan, Sri Lanka, Afghanistan, Macao, Nepal, Mongolia
EMEA includes:
Belgium, Germany, South Africa, Norway, France, Spain, Ireland, United Kingdom, Poland, Turkey, Ukraine, Russian Federation, Finland, Netherlands, Greece,
United Arab Emirates, Italy, Nigeria, Switzerland, Romania, Austria, Czechia, Portugal, Serbia, Senegal, Tunisia, Cyprus, Estonia, Lebanon, Luxembourg, Saudi Arabia,
Denmark, Namibia, Angola, Kenya, Sweden, Botswana, Israel, Ivory Coast, Oman, Togo, Qatar, Slovakia, Belarus, Zimbabwe, Ghana, Benin, Uganda, Algeria, Latvia,
Bahrain, Egypt, Ethiopia, Morocco, Albania, Bulgaria, Hungary, Croatia, Kuwait, Slovenia, Tanzania, Andorra, Armenia, Azerbaijan, Cameroon, Iraq, Jordan, Mauritius,
Mozambique, Sudan, DRC, Guinea, Malawi, São Tomé and Principe, Swaziland, Zambia.
40
2018 Deloitte Human Capital Trends Report For South Africa
41
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