Enterprise Social Trends
Enterprises Want Social
After the success of consumer oriented social networks such as Twitter and Facebook, many enterprises have decided to adopt social networking within the enterprise. As more younger workers who have had prolonged exposure to social networks enter the workforce, more employees are demanding internal social networks.
Enterprises want their employees to work together, even if they are in different departments or in different locations, and enterprise social networks allow them to accomplish this.
With the proliferation of smartphones, employees can log into enterprise social networks from any location and collaborate, even when they aren't in the office.
Human Capital Management Trends
The biggest trend in the human capital management segment during the past several years has been consolidation, as vendors have added new product lines or customer bases by making acquisitions. In early 2012, SAP acquired SuccessFactors and Oracle acquired Taleo. IBM followed with its announcement that it would acquire Kenexa.
The above chart shows the major acquisitions that have occured within the HCM space since mid 2008.
According to the Gartner IT Market Clock for Human Capital Management Software from September 2011, several of Peoplefluent's products are in the early stage of adoption:
Demographic and Other Changes: Talent Squeeze
- Despite high unemployment rates, a 2011 survey by Manpower found that 52% of US employers reported difficulty in filling positions because of a lack of talent, compared to 34% of employers worldwide.
While many baby boomers have delayed retirement due to 401(k) balances and economic uncertainty, they are still getting older and will eventually retire, placing severe pressure for talent in certain fields as there aren’t enough younger people with those skill sets to replace them.
- Certain industries, such as utilities, and certain positions, such as machinists, will face more significant difficulties than other industries or jobs.
- Companies may want to offer “gradual retirement”, in which boomers can reduce hours or work remotely as opposed to simply allowing them to retire abruptly.
- In certain sectors, a changing economic or regulatory environment can create significant demand for talent that simply isn’t there.
- For instance, in 2009 the federal government created strong incentives for hospitals to implement Electronic Health Records. Certain deadlines are rapidly approaching. This has created a severe squeeze for talented healthcare IT employees.
- Long term, the healthcare sector faces a severe talent shortage, as doctors and other healthcare employees retire and as the population ages, requiring additional employees. HHS estimates that by 2020, there will be a shortage of nearly 1 million nurses in the United States. About 55% of nurses say they plan to retire in the next 10 years (according to the Bernard Hodes Group). According to the Workforce Studies of the Association of American Medical Colleges, 40% of doctors are 55 years old or older.
- Other IT staff are also fought over. For instance, about 12% of Facebook employees were recruited from Google.
- Google has implemented certain measures to retain workers, such as a 10% blanket raise on 1/1/11, as well as a raise equivalent to 1x the employee’s target bonus, and a $1,000 holiday bonus for each employee.
- As a new generation emerges that is connected socially and technologically like never before, organizations must adapt their talent management strategies in order to engage with these workers on their terms and leverage their next-generation skills and know-how.
- Although there may be some talent management challenges for this new group, hiring them is integral to the success of any organization. To prepare for the impending mass retirement of baby boomers, Generation C will have to be brought on to fill the ensuing talent gaps and eventually take over key management positions.
- As the world becomes increasingly global and mobile, employers can benefit from workers who are in tune with the latest technology and are adept at communicating through the latest devices and collaborating with people all over the world. The connectedness of this generation can empower and align the workforce to levels never achieved before, creating real-time collaboration through digitalized technology and enhanced mobility. In order to leverage the power of Generation C, though, employers must learn how to connect with them in their totally plugged-in lifestyles.