CHRO Strategic Research: Human Capital Challenges

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CHRO Strategic Research Human Capital Challenges

• Frederick P. Morgeson, Ph.D.
• SHRM Foundation Board Member
• morgeson_at_msu.edu
• www.morgeson.com

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Overview for Today

• Background and introduction
• Summary of SHRM Foundation research on human
  capital challenges
• QA
• What the SHRM Foundation is doing about these
  challenges

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A Little About Me

• Professional background
• Ph.D. in Industrial and Organizational Psychology
  from Purdue University
• Professor of Management and Valade Research
  Scholar at Michigan State University
• SHRM-specific
• SHRM Foundation Board Member
• CHRO research project task force member
• Research applications committee chair (EPGs)
• Random information
• Car guy

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Background and Introduction

• Long-standing scientist-practitioner tension
• But
• I am persuaded that if the scientist proceeds
  correctly, a closer link with practice can be a
  blessing for the development of theory. (Lewin,
  1945)
• How to bridge?
• Focus research on issues/problems relevant to
  organizations
• How to do this?

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Background and Introduction

• SHRM Foundation
• 501(c)3 nonprofit affiliate of the Society for
  Human Resource Management (SHRM).
• www.shrm.org/foundation
• Mission
• The SHRM Foundation maximizes the impact of the
  HR profession on organizational decision-making
  and performance by promoting innovation,
  education, research and the use of research-based
  knowledge.
• Board composition
• Mix of practitioners and academics

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Foundation Priorities

• Education
• Variety of scholarships
• Research
• Fund state-of-the-art academic research(must
  have practical impact)
• Use of research-based knowledge
• EPGs, DVDs, Thought Leaders
• Clarifying Foundation direction
• How do we know what type of research to fund in
  the future?

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Background and Introduction

• Funded large-scale research study
• Conduct research to identify the most pressing
  human capital challenges facing CHROs and other
  C-suite executives
• In partnership with Hay Group
• Research objectives
• Identify senior executives views on critical
  organizational issues related to human capital
• Identify the tools and resources related to those
  issues that CHROs need to perform their jobs
  effectively

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Research Steps

• Key phases
• Literature review
• Interviews with C-suite executives
• Online survey of C-suite executives
• Interactive discussion sessions
• Today
• Summary and discussion of survey findings and
  implications

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Response Rate Survey Sample

• A total of 526 C-suite executives participated in
  the survey
• 72 of the survey sample were C-suite executives
  in the HR function and 28 were non-HR C-suite
  executives
• There was an equal proportion of global and
  US-based companies in the survey sample

Company Size
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Ratings of Human Capital Challenges by C-Suite
Executives
Rate how much of a challenge you believe each
human capital issue will be for your company in
the future
Succession planning Providing leaders with
skills to be successful Recruiting and
selecting talented employees Engaging and
retaining talented employees Rising healthcare
costs Managing the people side of
change Creating and maintaining a
performance-based culture
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Ratings of Human Capital Challenges by C-Suite
Executives
Rate how much of a challenge you believe each
human capital issue will be for your company in
the future
Building and sustaining a diverse
workforce Measuring the impact of human capital
initiatives Managing a global workforce Integrat
ing people and systems during M
As On-boarding and integrating new
employees Setting up and implementing HR systems
across countries
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Human Capital Issues Ranked as 1 Challenge for
the Future
Succession planning Recruiting and selecting
talented employees Providing leaders with skills
to be successful Engaging and retaining talented
employees Rising healthcare costs Creating and
maintaining a performance-based
culture Managing the people side of
change Managing a global workforce Integrating
people and systems during M As Building and
sustaining a diverse workforce Setting up and
implementing HR systems across
countries Measuring the impact of human capital
initiatives On-boarding and integrating new
employees
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Human Capital Issues Ranked as 1 Challenge for
the Future by Company Size
Succession planning Recruiting and selecting
talented employees Providing leaders with the
skills to be successful Engaging and retaining
talented employees Rising healthcare
costs Creating and maintaining a
performance-based culture
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Summary of Biggest Human Capital Challenges for
the Future

• The human capital issues were viewed as
  significant future challenges, regardless of
  company size or the C-suite executives title
• Global companies saw these top challenges as even
  more significant than US-based companies, with
  the exception of rising healthcare costs.
• Rising healthcare costs is viewed as a more
  significant challenge for small companies and
  US-based companies.

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Confidence Company has a Plan/Solution to Address
Biggest Human Capital Challenges
Recruiting and selecting talented employees
Succession planning Creating and maintaining a
performance-based culture Engaging and retaining
talented employees Providing leaders with the
skills to be successful Rising healthcare costs
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Questions and Discussion

• In what ways were you surprised by these results?
  Which results were not surprising?
• What is your organization doing with respect to
  these challenges?
• How well prepared do you think your organization
  is for these challenges?

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Strategic Research Project Phase II
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Phase II Overarching Theme

• Maximizing Leadership Talent
• This theme provides a broad framework for
  designing tools and resources to help
  organizations address many of the identified
  challenges
• Four major areas

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Assess/Acquire Leadership Talent

• A need to identify and retain those who will take
  on future leadership roles.
• Competition to get talented employees with the
  right skill sets.
• Small or lesser known companies have particular
  challenges attracting talent.

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Leadership Development

• Providing developmental opportunities is a
  challenge and a key step in engaging and
  retaining talent.
• Better programs are needed to define essential
  leadership skills, develop training content, and
  identify participants.
• Many leaders were promoted for their technical,
  not leadership, skills.
• Leadership development training requires follow
  up to ensure managers are practicing what they
  have learned.

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Leadership Retention

• Competition means choices for employees and more
  opportunities to leave.
• Companies must remain competitive with pay and
  benefits.
• Employees have greater choice around the nature
  of their role, work environment, and
  organizational culture making retaining top
  talent even more challenging.

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Leadership Succession

• Firms must find individuals with technical
  skills, leadership skills, strategic vision and
  who fit the corporate culture, to become senior
  leaders.
• Companies need a clear succession plan. There is
  often a lack of strategic planning.
• Small companies have no natural pipeline within
  the organization.

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The SHRM FoundationsPlan of Action
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Products and Tools

• Make use of existing Foundation deliverables
  already in development
• DVD, discussion guide and power point
  presentation
• Effective Practice Guideline (EPG) Reports
• Thought Leaders
• Foundation webinars targeted to SHRM members.

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Products and Tools

• Additional deliverables
• Package relevant 2008 SHRM Annual Conference
  sessions and market the package to academics,
  SHRM member and Foundation stakeholders as part
  of Foundations larger theme
• Sponsor a targeted conference in 2009 or 2010
• Sponsor a special issue of a journal
• Partner with the SHRM research department to
  produce descriptive studies in the above areas

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Grant Funded Research

• Issue a special call for research proposals that
  address Maximizing Leadership Talent.
• Set aside money to fund grant projects that
  address the theme.
• Allow the Foundations research committee to give
  priority to research addressing the theme and
  four subcategories without precluding the ability
  to fund worthwhile projects in other areas.

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Contract Research

• Literature reviews to inform deliverables and
  guide grants and contract research.
• Study of 10-15 companies that have successfully
  addressed leadership talent management issues.
• Longitudinal study examining the key drivers,
  barriers and contingencies for effectively
  maximizing leadership talent.

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QA

• What else could/should the Foundation be doing?
• Remaining questions?
• Full report and other information about the SHRM
  Foundation at
• www.shrm.org/foundation
• Contact the SHRM Foundation at
• ksilberman_at_shrm.org