Report from survey among 102 HR professionals in Finnish companies

1. GL CONSULTING/ETHOS TECHNOLOGIES (THE LATER ACQUIRED BY SYMBIO OY)
The Use of social networking and
collaborative platforms
in HR departments in
Finnish companies
Report from survey conducted in May 2011
Author: Magdalena Pawlowicz
2011
GL CONSULTING/ETHOS TECHNOLOGIES, HENRY RY AND LINNAPUOMI CONSULTING

2. About the Survey
GL Consulting/Ethos Technologies (the later acquired by Symbio Oy), in consultation with HENRY ry and
Linnapuomi Consulting, is proud to present the results of the survey conducted among HR professionals in
Finnish organizations and businesses on their use of social networking and collaborative platforms.
The survey was made independent of any vendor or company and was conducted among members of HENRY
ry using a web-based tool. One hundred and two HR professionals from Finnish organizations and businesses
participated in it during last week of May 2011.
Survey demographics can be found in Appendix A.
About the Author:
GL Consulting is a small Helsinki based consultancy specialized in helping organizations in their implementation
of social and collaborative technologies. Ethos Technologies (acquired by Symbio Oy in May 2011) is a leader in
social software, collaboration platforms and cloud computing.
Summary:
The outcome of the survey indicates that most HR departments in Finnish organizations are not well prepared
for the future; hence, they are not fully familiar with social networking and on how collaborative tools can
enable building high performers within the new context of networked organizations. The key competencies in
HR that drive business results today are familiarity with integrated talent management, understanding of
workforce planning, and comfort with social networking and collaborative HR technology1.
In addition to these competencies, HR departments also have to relate to new organizational models such as
increased number of employees working remotely or from home. They interact with peers and customers
through several channels: phone, social networking sites, instant messaging etc, and the result of this is a
highly networked organization in which HR must create alignment between business and people management,
enable collaboration and at the same time increase efficiency of each euro spent on training, learning and
employee development. When we combine the networked nature of today’s organizations with the need to
more rapidly develop such “high-performing” professionals, the survey indicates that today’s HR departments
are caught in a squeeze.
The solution might lie in redefining talent management. The traditional approach of creating employee
performance plans, goals, succession plans, assessments will naturally remain, but it must build into the more
agile and networked nature of organizations and provide e.g.:
• possibilities for managers to evaluate, rank and develop a team of people who interact with each other
in a networked organization, and
• processes and tools so that managers are able to quickly understand the new competencies needed in
a networked organization and able to co-create development plans with employees to foster success.
In a report created by EVA in 2011, it is stated that Generation Y’ers in Finland have entangled their
professional lives with their private lives and will use external social networks such as Facebook to conduct all
their social interactions. Therefore, they are expecting their employers to provide similar easy to use and social
connector tools in their work environment. With the current level of use of collaboration tools and social
networking, it might be a challenge for Finnish organizations to attract the best and the brightest talent.
1
Bersin & Associates, McKinsey Quarterly: Question for your HR chief: Are we using our ‘people data’ to create value?
2

3. Key Findings and Recommendations:
Key Findings:
 22% of the respondents have implemented social networking and collaboration technology in their
performance management,
 16% has HR software which allows for employees to join communities, collaborate, share information,
discuss topics in business context, follow peers and subscribe to relevant information in their subject
area
 12% have integrated their social and collaboration platform with their legacy systems
 55% do not use social networks in which employees and managers work together to locate logical
successors
 54% of the respondents in the survey answered that they are unable to indentify pools of employees
with similar levels of expertise
 22% of responding companies are using social networking to connect experts with new employees to
speed up the employee development process
 53% are not using social networking to enable new employees to share their internal competencies,
profile, or areas of interest.
Recommendations:
When it comes to finding ways to create better linkages between employees in different departments or
locations, the HR organization is at the link. Even though the study indicates that majority of people in HR roles
seems to be in shortage of profound expertise around social networking and collaboration technologies, they
still need to be in the forefront of discovering and understanding the changing nature psychology of employees
as they interact in this ’new mode’. One of the first steps for HR could be to re-connect with people in their
organizations who use social networking and collaborative tools to understand the issues and the opportunities
for HR that are emerging out of the rise in the use of social and collaborative tools by employees.
Or initiate reverse monitoring, like in General Electric, when the CEO realized that he and his management
team needed to learn about internet and technology applications. He required that he and his top executives
would find younger mentors inside the company who were knowledgeable about the internet. Most of the
mentors were in their 20′s and 30′s. Younger employees are likely to be more comfortable in using these new
social and collaborative technologies, and can pass on their knowledge to the ‘more experienced’ staff. This, of
course, is also an opportunity for the experienced staff to mentor the new and younger employees.
1. The role of social networking in Companies’ Human Resources Practices
3

4. Seven questions in the survey were dedicated the role of social networking in the Human Resources practices.
The questions were bundled around the use of social networking for the following HR processes: on-boarding,
workforce planning and tool support for analyses of groups at risk, employee self-on-boarding and informal
learning through participation in Communities of Practices, and open networks for enterprise wide
communication enabled by social and collaborative technology.
1.1 On-boarding:
60% of the respondents answered that they are connecting new employees with peers or coaches to assimilate
into the organization. However, 53% of the respondents answered that they are not using social networking to
enable new employees to share their internal competencies, profile, or areas of interest, which is indicating
that connecting with peers is done via traditional tools and processes. A study made on IMD in Lausanne shows
that overall workforce performance and time-to-productivity is improved by getting new hires on-boarded and
connected faster, significantly reducing costs associated with learning on the job.
Fig 1. Are you using social networking tools to making new
employees feel connected through sharing:
60
50
40
in %
30
20
10
0
Internal Own profile Areas of None of the Other
competencies interest above
22% of responding companies are using social networking to connect experts with new employees to speed up
the development process, whereas 71% does not and of which 20% are planning to do so in the future.
Fig 2. Are you using social and collaborative networking
to connect new employees to experts during training to
support their development process in the first few
months on the job?
7%
Yes
22%
20% No
Not yet, but we are planning
to
Do not know
51%
1.2. Workforce planning:
4

5. A recent benchmark survey2 done amongst 720 global organizations indicate that conducting workforce
planning, including enterprise forecasting and skills-gap scenario planning, is one of the greatest drivers of
business results. For example, companies which excel in workforce planning drive four times the value of those
who focus on the consolidation of HR technology systems. 54% of the respondents in our Finnish survey
answered that they are unable to indentify pools of employees with similar levels of expertise, competencies or
experience in their workforce planning though with 21% being able to do so based on competencies.
Fig 3. In your workforce planning, do you have
collaborative tools that enable you to identify pools
of employees with similar levels of:
60%
50%
i 40%
n
30%
20%
%
10%
0%
80% of the respondents in the survey answered that they are unable to prepare real-time analyses of groups at
risk e.g. retirement skills gap due to the lack of technology enablers, with 29% of the respondents planning to
implement such enablers.
.
Fig 4. Do you have tools to support rapid analyses of
groups at risk (e.g. retirement, skills gaps) based on
demographics and skills information that are updated in
real time by employees and managers themselves?
Do not know
Not yet, but it is in our plans
No
Yes
0% 10% 20% 30% 40% 50% 60%
1.3. Communities of Practices and Open Networks:
The two last questions in the paragraph concentrated on creation of communities of practice and open
networks to support various HR processes. International studies indicate that network creation (e.g.,
introductions) and communities-of-interest or practice can accelerate new hire on-boarding3 and that access to
experts, communities of practice by others in similar roles support 80% or more of learning on the job. In the
survey, 30% has created Communities of Practices, with 5% not knowing if such CoPs have been created inside
2
Bersin & Associates
3
U.S. and U.K. employees cost businesses an estimated $37 billion every year because they do not fully understand their
jobs, according to IDC.
5

6. their own organization, and with 38% not having created and with 27% planning too. This might be an
indication of that HR departments are not fully familiar with social networking and its possibilities to improve
employee engagement, and increase the company’s productivity.
Fig 5. Has your organization created communities of practices
that are easy to find and join, based on employee's role,
organization and skills?
5% Yes
30%
27%
No
Not yet, but we are planning
38% to
Do not know
In the Finnish survey, 34% were unaware of having created open networks to support various forms of
enterprise-wide communication and employee engagement. This might be an indication that it is difficult for
HR practitioners in Finland to stay current with new HR practices. Having said that, 46% of the respondents
have created open networks, which are supported by social tools for employee communication.
Fig 6. Has you organization created open networks
enabled by collaborative tools for:
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Employee Executive-level Creation of open Improving Do not know Other
communication discussions enterprise-wide employee
lines of engagement
communications
2. The role of social networking and collaboration in learning:
Connecting employees with the knowledge they need to have to carry out their work can increase productivity
and drive innovation. Using social collaboration to reinforce traditional classroom learning in an informal
setting allows business to turn learning into an ongoing process and not only a one-time event. 38% answered
that the company encourages employees to create learning content themselves and push it to one another,
with 54% answering no, of which 15% have this in their plans. 8% said they did not know.
6

7. Fig 7. Which of the following technologies are available to support peer-to-
peer learning and knowledge sharing?
LinkedIn type of profiling directory (look up
45% another peer who has knowledge or
experience)
40% Wall (for posting questions and getting
collaborative responses from many)
35%
Communities of practice
30%
Company blog
25%
20% Company wiki
15%
Online internal knowledge market place
10% where employees can search for information
and solution to problems
5% We do not yet have any social and
collaborative technologies in place to support
peer-to-peer learning or knowledge sharing
0%
Other
Most respondents, 43%, mentioned the company blog as being in use in their company for peer-to-peer
learning and knowledge sharing, followed by 27% having online internal knowledge market places as an
enabler. 29% answered that they do not have any collaborative technologies in place to support peer-to-peer
learning.
3. The role of Collaboration in Career and Succession Planning processes:
Social networking can play an important role in succession planning e.g. in identifying networks of people who
work together to locate logical successors in critical roles, or connecting people in networks which enables
them to look at their current job and other positions to understand how they can move up in the enterprise
and what it takes to get there. In the survey, 55% respondents answered no to use of networks to locate logical
successors, with an additional 11% who have not yet implemented but are planning to. 27% answered yes to
this question.
Fig 8. For succession planning, are there identified 'groups'
and 'networks' of people who work together to locate logical
successors in critical roles?
7% Yes
11% 27%
No
Not yet, but we are planning
55% to
Do not know
On the question if employees have the possibility to view the actual career paths that others have taken who
have similar skills, preferences, 90% said no (of which 16% is planning to). Only 8% said yes.
7

8. 4. The role of social and collaborative technology in Human Resources:
According to a recent global survey, a strategic approach and ownership of knowledge-sharing, collaboration
and social networking in HR drives greater business impact than traditional HR strategies. Companies that focus
on social networking, knowledge sharing and collaboration tools for empowerment are delivering twice the
business improvement of those that focus on traditional HR strategies such as pay-for-performance or new HR
information management systems4.
In the Finnish survey, 72% answered that their HR software does not include social networking feature such as
rich employee profile features. When asked if their HR software allows for employees to join communities,
collaborate, share information, discuss topics in business context, follow peers and subscribe to relevant
information in their subject area, 80% respondents answered no, 16% yes with an additional 2% using other
type of software for that purpose.
Fig 9. Does your HR software include rich employee profile
features which enable HR and the employees themselves
to extend the following information to others:
Training path
Succession planning
Expert directory
Career progression
Employee interest
None of the above
Other
0% 20% 40% 60% 80%
Collaboration and social networking technology has emerged in the area of performance evaluation focusing
on communication and shared interests, encourage employee involvement and provide a means for employees
to connect and provide feedback to one another, all of which work to improve individual employee results and
productivity. According to a report published by Aberdeen Group in 2009, one third of organizations achieving
Aberdeen ‘best in class’ status, were using or were in the process of implementing web 2.0 tools and social
networking in performance management. In our survey, 22% have already implemented, 46% had not
implemented, and 25% are planning to.
Fig 10. Does your HR system enable managers and employees to
collaborate, share information and keep track of employee
performance through collaboration - and store this information in
the performance management system?
Do not know Other
5% 2%
Yes
Not yet, but we 22%
are planning to
25%
No
46%
4
Bersin & Associates 2011
8

9. When asked if employee data are captured and mined from various channels and sources in the companies,
70% said no, 11% that they are planning to and 7% answered yes. When asking why, 49% mentioned lack of
technology as the key barrier, 35% that there is no process in place for that, and 30% that it is not in focus of
HR. Among other which constituted 8%, legal constraints in some countries were mentioned as a key barrier.
Fig 11. Do you allow employee data to be captured and
mined on everything from demographics and behaviors to
communication or email patterns, to determine
customized training offerings and career plans?
11% 1% 7% Yes
11%
No
Not yet, but we are
planning to
Do not know
Other
70%
In the survey, companies were asked to check off technologies that are in use for collaboration and knowledge
sharing as connecting employees with the knowledge they need when they need it has proven to increase
productivity and innovation5. In a white paper conducted by Cisco in 2009, amongst 97 companies located in
20 countries, many interviewees attested to the need for web 2.0 tools and platforms to integrate seamlessly
with an organization’s existing business applications and infrastructure. Our survey shows that Finnish
companies are using a variety of technologies but only 12% have integrated those with their legacy systems.
This would indicate that Finnish companies are in the initial stages of experimenting with social and
collaborative technologies.
5
Several company references including Shell, Chevron, Cisco, IBM and more.
9

10. Fig 12. Which of the following processes or tools are in place in our organization to
enable knowledge sharing and collaboration?
35% Stand alone Social and collaboration
platform
Social and collaboration platform
30%
integrated with legacy systems
Communities of Practice for general
knowledge sharing
25%
Communities of Practice are formalized
in a specific business context, e.g. sales
20% process, idea generation
Collaboration and knowledge sharing is
acknowledged through reward and
recognition processes
15% Social and collaborative CRM solution
integrated with expertise search
solution/Talent Management solution
Collaboration tools integrated with
10% expertise search and self service
systems
None of the above
5%
Other
0%
5. The role of social and collaborative technology and HR in the Extended Enterprise:
Organizations can leverage existing investments in collaborative learning, social networking and training
technologies by extending these technologies to partners and customers. Such technologies can drive revenue,
productivity and loyalty by:
Offering training to customers so they can learn how to use the products better and find answers to questions
which increases engagement and loyalty and brings down support costs.
For partners, social networking and collaborative training mean supply chain optimization, and setting thereby
a company apart from its competition.
In our survey, 17% of the responding Finnish companies said they are leveraging their investments in social and
collaborative technologies to their partners (customers and vendors). 63% answered no, and only 3% are
planning to. On the question of linking people and talent management with CRM/customer intimacies, 20%
answered yes, 59% answered no, 10% are planning to and 11% not knowing.
Fig 13. Does your company leverage existing investments in
social and collaborative training and learning technologies to
these enterprise partners?
Do not Yes
Not yet, but it is in know 17%
our plans 17%
3%
No
63%
10

11. APPENDIX – Survey demographics.
Size of Company
10
0-10 employees
29
12 11-100 employees
101-500 employees
501-1000 employees
16
1001-5000 employees
21 over 5001 employees
14
Industry Classification
Government/Public services
Professional and legal services
Service Company
Pharmaceutical & Chemicals
Manufacturing, Engineering and Construction
Healthcare
3% 0%
Distribution and Retail
5% 7%
Transportation 14% 18%
3%
Education 5%
13%
Utilities, Telecoms, Oil & Gas
9% 15%
Banking, Finance and Insurance 5%
1%
IT
1%
Media and Publishing
Marketing
3%
Other
Respondents Age
11% 13% 18-30
31-43
28%
44-56
48% 57-70
11

12. Glossary/Definitions:
1. The term "talent management" means different things to different organizations. To some it is about
the management of high-performing individuals or "the talented" whilst to others it is about how
talent is managed generally. In this report, we refer to talent management as all people have talent
which just should be identified and liberated
2. A “high-potential employee” is an employee who has been identified as having the potential, ability
and aspiration for successive leadership positions within the company.
3. “Integrated Talent management” is a set of integrated organizational processes supported by
technologies which are integrated with company legacy systems and which are designed to attract,
manage, develop, motivate and retain people.
4. A “community of practice” (or “CoP”) is often defined as a group of people who share an interest or
concern about a common topic, and who deepen their knowledge in this area through ongoing
interaction and relationship-building within their group. While communities often come into being
spontaneously, they nonetheless require nurturing if they are to become valuable to the members and
businesses and to remain viable over the course of their evolution. In many organizations,
Communities of Practice have become an integral part of the organization structure. These
communities take on knowledge stewarding tasks that were formerly covered by more formal
organizational structures.
5. A collaboration platform is a category of business software that adds broad social networking
capabilities to work processes. The goal of a collaboration platform is to foster innovation by
incorporating knowledge management into business processes so employees can share information
and solve business problems more efficiently.
6. Social networking is a phenomenon that has recently taken over the web, allowing more connectivity
and interaction between web users. Social networking-new means of communicating and sharing
information and knowledge between two or more individuals on an online community whether
internally in an enterprise or externally.
12