During 2017, we expect to see HR departments turn to technology to automate more of their work and to become more data-driven in their decision-making. ANJA VAN BEEK, of Sage outlines six trends.
Some of the key trends for this year are as follows:
1. The mobile device will the HR department’s most imperative touchpoint
From recruiting talent to interacting with employees, the mobile phone is becoming the most important HR touchpoint for job candidates, employees, managers and other stakeholders. Today’s employees and jobseekers want it to be as convenient and easy to deal with an employer as it is to bank online or via a mobile app. Employers who want to attract young talent should make sure that their online job advertising and application processes are seamless, convenient and optimised for mobile devices.
Many companies already allow employees to use mobile apps to file expense reports and leave applications, change personal details, and access their payslips. In future, employees will increasingly access career and training information, performance feedback, and other important data from mobile apps. Such apps must be attractive, easy to use, and functional so that users will love coming back to them.
Managers will also want to be able to access information such as performance reviews from their smartphones.
2. Data will drive decision-making
HR is about to change dramatically with data analytics becoming a way of life for HR directors and HR managers.
As HR professionals have more data (gathered through digital interfaces like employee self-service) about employees and the business at their fingertips than ever before; they will begin to use analytics to make better decisions and to shape superior employee experiences.
Data will help HR and the business to answer questions such as:
· Where did we find the best hires for our business, i.e. top performers who have we retained for a good while?
· How many people will we need in our service department to support our forecasted revenue growth of 10% for the next financial year?
· What are the possible reasons for high employee turnover in the call centre?
· What skills gaps do we have in our organisation?
3. Integrated HR systems will stretch from recruitment to performance management
We are seeing the worlds of payroll, HR and business management solutions move closer together as organisations adopt integrated solutions to gain better control over their workforce costs and create stronger engagement with employees. One benefit lies in the fact that data and transactions don’t need to be captured multiple times across different business applications.
In addition, such systems give HR teams a complete view of their relationships with employees, from on-boarding to engagement, talent development and performance management. This empowers HR to react to the needs of the workforce and the business in a more agile manner.
4. Performance management is changing
We have seen a lot of discussion in the past year or two about the value of annual performance reviews, and many large organisations around the world have streamlined performance management or even done away with annual reviews. Though I don’t foresee most companies scrapping annual reviews, I expect that performance management will change to cater for a changing work world.
We’ll see companies give employees feedback more frequently, perhaps each month or even each week, rather than once a year. This will help managers and employers to constantly monitor performance, identify challenges and opportunities and recalibrate employees’ alignment with its strategic objective. Annual reviews are useful in this regard, but they’re not frequent enough in a business world where the pace of change is so fast.
5. Online recruitment will continue to take over
Recent research by the Society of Human Resource Management shows that in the past five years, recruitment using social media has increased by 54%, with one out of five candidates applying for a job through social channels.
There are many tools that can streamline the recruitment process, from managing job applicants and filtering CVs, to interviewing and screening candidates, and right up to the on-boarding process. Though the human touch will always be important in HR, companies will extend their tools such as online applicant tracking, talent communities, social media and internal career portals.
Online platforms such as Sage SkillsMap give organisations direct access to people in Africa and abroad who are looking for jobs, as well as the tools they need to publish their jobs to the Web and track the applications they receive. These tools help automate a lot of the paperwork for them, while providing access to high-quality candidates.
6. Employer branding will be a focus
According to a recent EY Sub-Saharan Talent Trends and Practices Survey, the strength of the employer brand is the most important factor in attracting talent. Companies must focus on creating a positive culture; a quality workplace and a good employee experience since employees value this as much as they do money. Given that top professionals in most fields can choose where they work, employers need to sell their workplace experience and the benefits they offer to employees with as much enthusiasm as marketing departments sell the company’s products and services.
* Anja van Beek, Vice President for People (HR), Sage International (Africa, Middle East, Asia & Australia)
VoD cuts the cord in SA
Some 20% of South Africans who sign up for a subscription video on demand (SVOD) service such as Netflix or Showmax do so with the intention of cancelling their pay television subscription.
That’s according to GfK’s international ViewScape survey*, which this year covers Africa (South Africa, Kenya and Nigeria) for the first time.
The study—which surveyed 1,250 people representative of urban South African adults with Internet access—shows that 90% of the country’s online adults today use at least one online video service and that just over half are paying to view digital online content. The average user spends around 7 hours and two minutes a day consuming video content, with broadcast television accounting for just 42% of the time South Africans spend in front of a screen.
Consumers in South Africa spend nearly as much of their daily viewing time – 39% of the total – watching free digital video sources such as YouTube and Facebook as they do on linear television. People aged 18 to 24 years spend more than eight hours a day watching video content as they tend to spend more time with free digital video than people above their age.
Says Benjamin Ballensiefen, managing director for Sub Sahara Africa at GfK: “The media industry is experiencing a revolution as digital platforms transform viewers’ video consumption behaviour. The GfK ViewScape study is one of the first to not only examine broadcast television consumption in Kenya, Nigeria and South Africa, but also to quantify how linear and online forms of content distribution fit together in the dynamic world of video consumption.”
The study finds that just over a third of South African adults are using streaming video on demand (SVOD) services, with only 16% of SVOD users subscribing to multiple services. Around 23% use per-pay-view platforms such as DSTV Box Office, while about 10% download pirated content from the Internet. Around 82% still sometimes watch content on disc-based media.
“Linear and non-linear television both play significant roles in South Africa’s video landscape, though disruption from digital players poses a growing threat to the incumbents,” says Molemo Moahloli, general manager for media research & regional business development at GfK Sub Sahara Africa. “Among most demographics, usage of paid online content is incremental to consumption of linear television, but there are signs that younger consumers are beginning to substitute SVOD for pay-television subscriptions.”
New data rules raise business trust challenges
When the General Data Protection Regulation comes into effect on May 25th, financial services firms will face a new potential threat to their on-going challenges with building strong customer relationships, writes DARREL ORSMOND, Financial Services Industry Head at SAP Africa.
The regulation – dubbed GDPR for short – is aimed at giving European citizens control back over their personal data. Any firm that creates, stores, manages or transfers personal information of an EU citizen can be held liable under the new regulation. Non-compliance is not an option: the fines are steep, with a maximum penalty of €20-million – or nearly R300-million – for transgressors.
GDPR marks a step toward improved individual rights over large corporates and states that prevents the latter from using and abusing personal information at their discretion. Considering the prevailing trust deficit – one global EY survey found that 60% of global consumers worry about hacking of bank accounts or bank cards, and 58% worry about the amount of personal and private data organisations have about them – the new regulation comes at an opportune time. But it is almost certain to cause disruption to normal business practices when implemented, and therein lies both a threat and an opportunity.
The fundamentals of trust
GDPR is set to tamper with two fundamental factors that can have a detrimental effect on the implicit trust between financial services providers and their customers: firstly, customers will suddenly be challenged to validate that what they thought companies were already doing – storing and managing their personal data in a manner that is respectful of their privacy – is actually happening. Secondly, the outbreak of stories relating to companies mistreating customer data or exposing customers due to security breaches will increase the chances that customers now seek tangible reassurance from their providers that their data is stored correctly.
The recent news of Facebook’s indiscriminate sharing of 50 million of its members’ personal data to an outside firm has not only led to public outcry but could cost the company $2-trillion in fines should the Federal Trade Commission choose to pursue the matter to its fullest extent. The matter of trust also extends beyond personal data: in EY’s 2016 Global Consumer Banking Survey, less than a third of respondents had complete trust that their banks were being transparent about fees and charges.
This is forcing companies to reconsider their role in building and maintaining trust with its customers. In any customer relationship, much is done based on implicit trust. A personal banking customer will enjoy a measure of familiarity that often provides them with some latitude – for example when applying for access to a new service or an overdraft facility – that can save them a lot of time and energy. Under GDPR and South Africa’s POPI act, this process is drastically complicated: banks may now be obliged to obtain permission to share customer data between different business units (for example because they are part of different legal entities and have not expressly received permission). A customer may now allow banks to use their personal data in risk scoring models, but prevent them from determining whether they qualify for private banking services.
What used to happen naturally within standard banking processes may be suddenly constrained by regulation, directly affecting the bank’s relationship with its customers, as well as its ability to upsell to existing customers.
The risk of compliance
Are we moving to an overly bureaucratic world where even the simplest action is subject to a string of onerous processes? Compliance officers are already embedded within every function in a typical financial services institution, as well as at management level. Often the reporting of risk processes sits outside formal line functions and end up going straight to the board. This can have a stifling effect on innovation, with potentially negative consequences for customer service.
A typical banking environment is already creaking under the weight of close to 100 acts, which makes it difficult to take the calculated risks needed to develop and launch innovative new banking products. Entire new industries could now emerge, focusing purely on the matter of compliance and associated litigation. GDPR already requires the services of Data Protection Officers, but the growing complexity of regulatory compliance could add a swathe of new job functions and disciplines. None of this points to the type of innovation that the modern titans of business are renowned for.
A three-step plan of action
So how must banks and other financial services firms respond? I would argue there are three main elements to successfully navigating the immediate impact of the new regulations:
Firstly, ensuring that the technologies you use to secure, manage and store personal data is sufficiently robust. Modern financial services providers have a wealth of customer data at their disposal, including unstructured data from non-traditional sources such as social media. The tools they use to process and safeguard this data needs to be able to withstand the threats posed by potential data breaches and malicious attacks.
Secondly, rethinking the core organisational processes governing their interactions with customers. This includes the internal measures for setting terms and conditions, how customers are informed of their intention to use their data, and how risk is assessed. A customer applying for medical insurance will disclose deeply personal information about themselves to the insurance provider: it is imperative the insurer provides reassurance that the customer’s data will be treated respectfully and with discretion and with their express permission.
Thirdly, financial services firms need to define a core set of principles for how they treat customers and what constitutes fair treatment. This should be an extension of a broader organisational focus on treating customers fairly, and can go some way to repairing the trust deficit between the financial services industry and the customers they serve.