The Rise of the Social Enterprise
“The 2018 Deloitte Global Capital Trends report (the “Report”) showcases a profound shift facing business leaders worldwide: The rapid rise of what we call the social enterprise. This shift reflects the growing importance of social capital in shaping an organization’s purpose, guiding its relationships with stakeholders, and influencing its ultimate success or failure.”
The Report was based upon a global survey of more than 11,000 business, HR and executive leaders. There is a distinct difference in the traditional business enterprise and that of a social enterprise. These organizations are assessed on the following:
According to the Report, social capitalhas a growing importance and is closing the gap to the importance of “financial and physical capital.” Social capital is extremely important in the new reality that businesses need to focus on social capital to ensure sustainability:
- Reputation
- Attracting, retaining, and engaging a talented and productive workforce
- Customer loyalty
According to an April 4, 2018 Bersin Insights blog from Deloitte, the social enterprise is focused on the following priorities:
Trend 1 – The Symphonic C Suite
The C Suite of a social enterprise must effectively have a much greater degree of cross functional collaboration, vision, connectivity. Basically, the C Suite must begin functioning as a team while also leading their own “functional teams.” This approach allows the C Suite to better manage the impact that external forces have on their organizations and internal stakeholders. “The symphonic C Suite is the next evolution of leadership models.
Trend 2 – The Workforce Ecosystem
The Workforce ecosystem extends much further than the role of the traditional employee. When the survey participants asked about their forecast of their workforce in 2020, the results are as follows:
The trend is that companies are aligning their human capital strategies and cultures to align with these external talent pools which are a growing segment of the workforce ecosystems.
Trend 3 – New Rewards: Personalized, Agile and Holistic
The Report indicates that the millennials who are a growing part of the workforce ecosystem are asking (and demanding) a more personalized and agile rewards system program. “Early experiments are exploring how to develop a holistic variety of rewards and match them to individual preferences, across diverse talent segments and on a continuous basis.” Our firm is in the process of evaluating these rewards and engagement programs with the intent of promoting them within the PEO industry.
Trend 4 – From Careers to Experiences: New Pathways
“In a 21stcentury career, the individual and his or her experience take center stage. Instead of a steady progression along a job-based pathway, leading organizations are shifting toward a model that empowers individuals to acquire valuable experiences, explore new roles, and continually reinvent themselves.”
In the Report, it was noted that only 59% of the participants surveyed rated their organizations as not effective.
Trend 5 – The Longevity Dividend: Work in an Era of 100 Year Lives
You will be heartened to know that many organizations are tapping into the older workforce. As the benefits of modern medicine and an awareness of fitness, many in the boomer generation are extending their careers based upon the inadequacy of retirement income and a desire to stay engaged and productive.
This longevity dividend enables companies to address an economy of nearly full- time employment and provides access to a reservoir of “proven, committed, and diverse set of workers.”
Trend 6 – Citizenship and Social Impact: Society Holds the Mirror
A company’s record of corporate citizenship and social impact directly effects its “core identity and strategy”.
In this area, there is a focus on the following issues:
- Diversity
- Gender pay equity
- Income inequality
- Immigration
- Climate change
Positively engaging in these topics can increase financial performance and brand value. Not engaging in these topics may have a negative impact on a Company over the long run.
Trend 7 – Well Being: A Strategy and Responsibility
Over 50% of the participants surveyed in the Report, state that a company’s offering of wellness programs is an important part of their benefits offering. However, most agree that the delta between what is offered and what is desired remains too far.
The desired programs should include some or all the following health programs:
- Physical
- Mental
- Financial
- Spiritual
Companies are using these programs for “societal responsibility and a talent strategy.”
Trend 8 – AI, Robotics, and Automation: Put People in the Loop
The Influx of AI, robotics, and automation into the workforce has dramatically accelerated, transforming in-demand roles and skills inside and outside organizations. Perhaps surprisingly, those roles and skills focus on the “uniquely human” rather than the purely.
The Report indicates the following results from the participants surveyed:
Trend 9 – The Hyper Connected Workforce: Will Productivity Reign?
New communication tools are migrating from individual’s personal lives to the workplace.
To successfully optimize these tools, companies need to apply their expertise and training in the areas of:
- Team management
- Goal setting
- Employee development
Without the effective integration of these skills, there may be little or no improvement in the area of individual or team performance.
Trend 10 – People Data: How Far is too Far?
The use of People Data is a two-edge sword. It can be a powerful or a risky use of data.
A Call to Action
According to the Report, “The 2018 Global Human Capital Trends report sounds a wake-up call for organizations. The rise of the social enterprise requires a determined focus on building social capital by engaging with diverse stakeholders, accounting for external trends, creating a sense of mission and purpose throughout the organization, and devising strategies that manage new societal expectations. At stake is nothing less than an organization’s reputation, relationships, and, ultimately, success or failure.”
My question to you is:
This is not solely an issue of our own workplace. How are we helping our small business clients? Are we developing a new set of products and services for the PEO to help the clients of our PEO evolve with a rapidly changing workplace talent ecosystem?
If you wish to discuss any aspect of this article, please do not hesitate to contact me at (321) 251-8222 or via email at dan@mchenryconsulting.net.
Resources for this article:
The primary source for these articles and direct quotes are from the resources along with a mix of human capital experience and interpretation that I have gleaned from my thirty years in the PEO space.
The Rise of the Social Enterprise: 2018 Deloitte Global Human Capital Trends
https://documents.deloitte.com/insights/HCTrends2018
Bersin Insights by Deloitte: The Rise of the Social Enterprise
http://blog.bersin.com/insights-from-impact-2018-the-rise-of-the-social-enterprise/
