Transcript of a BriefingsDirect podcast on how the job-seeking and recruitment process is evolving into a more online and social-media engagement.

1. The Workforce of the Future – and Why Preparing Means
Rethinking Human Resources
Transcript of a BriefingsDirect podcast on how the job-seeking and recruitment process is
evolving into a more online and social-media engagement.
Listen to the podcast. Find it on iTunes. Sponsor: Ariba, an SAP company
Dana Gardner: Hello, and welcome to a special BriefingsDirect podcast series coming to you
from the 2014 Ariba LIVE Conference in Las Vegas. We’re here the week of March 17 to
explore the latest in collaborative commerce and to learn how innovative companies are tapping
into the networked economy.
I’m Dana Gardner, Principal Analyst at Interarbor Solutions, your host throughout this series of
Ariba-sponsored BriefingsDirect discussions.
Our next thought-leader interview focuses on the fascinating subject of preparing
for the workforce of the future. It's now clear that we are entering into a very
diverse and even unprecedented work environment, something the world
perhaps has never known. How do enterprises prepare and how do they create
the means to analyze and manage the transition to very different work
environments?
To learn more about hiring and acquiring talent and managing a diverse and socially engaged,
and even knowledge-driven workforce, please join me now in welcoming our guest. We’re here
with Shawn Price, President for Global Cloud and Line of Business at SAP, and he is the former
President of SuccessFactors, now part of SAP. Welcome, Shawn.
Shawn Price: Dana, thanks for having me.
Gardner: Thanks for joining. Now, this is a really fascinating subject for me, this new diversity
and this talent-oriented workforce, but companies must be thinking, how do I
reduce risk? How do I think about making this an opportunity rather than a
challenge?
Just from the very beginning, top of mind, how can companies think and
characterize this new workforce in a way that they can view it as really
something to look forward to, rather than something that might set them
back?
Price: Dana, if you think about it, what you have just described is the company that has already
started to take steps to make sure that they don't get caught unprepared for the future.
Gardner

2. A lot of companies are having to respond to dramatic changes in their operating models, where
they’re driving revenues against the backdrop of a global economy. And companies are required
to deploy flexible workforces that can be engaged and can change with this fast
business environment that we’re in.
We have a scenario here in the US market, in particular, where every day, 10,000
people turn 65 and that will continue for the next 19 years. So you have an
experienced staff that's leaving the workforce. Then, on the front-end, you have a
talent shortage. There just are not enough millennials to replace that exodus that’s
occurring.
The astute companies of the future have mapped this out, have laid a plan, have started to build
warm pools of talent, and understand this in everything that they do. They’ve tied their strategy
to their people strategy and acquisition, and they’re really managing it for the cultural nuances
that the regions that they operate in require, and they’re pretty flexible and nimble.
More diversity
Gardner: One of the characteristics, as I understand it, is that there is more of a diversity in
the ways in which employees or talent are engaged with a company, many more varieties than
the full-time, 40 hours a week, 9-to-5 employee type. This seems to have some upside, but it's
different. You don't manage folks in the same way when they’re working through these different
models.
How do we now incentivize? How do we think differently about keeping these people motivated,
when we don't have that hard connection or control factor that we used to?
Price: There’s a real movement and emphasis on personal brand. To a degree, you’re starting to
see free agents in the market. When you look at it on the retention side, planning strategy to the
right people, to the right place, and at the right time, with a lot of millennials that are entering the
workforce there is a clear six month delineation. That is the greatest risk for your company to
lose that talent.
They’ve come in, they’ve looked around, and they’ve decided whether they’re actually
advancing their personal brand, their knowledge base. It's less about hierarchy and the old
models of the past. They’re making a call on whether they’re actually advancing and learning or
it's more tenure based. The way we measure is different as well.
One measurement that's completely different than anything that we’ve done in the past is your
engagement index: How much do you contribute? How much is your content consumed? How
engaged are you in the day-to-day?
Gardner: I suppose there’s another complicating factor. I’ve read that by 2020, there will be five
different generations working together, and each with a very different set of skills, experiences,
Price

3. expectations, and behaviors. It means that companies can’t have a one-size-fits-all approach to
this. In fact, they might have to be able to have multiple ways of engaging.
How does that factor into what you’re talking about, the workplace of the future. I guess we
should talk about the enterprise of the future, and that they need to have a diversified approach,
not just a single way to engage?
Price: You’re absolutely right. If you look at talent acquisition today, it has shifted. The focus
used to be in the past on how do I put as many people as possible through my applicant tracking
system, but today it's far more strategic. It's where do I need them and how much do they cost.
We need start to create a relationship at a much earlier point in order to create these warm pools
of talent.
Second, it's really asking who are my best performers, where are they from, and how do I get
more of them? If you have a particularly productive intern program, for example, which college
are you drawing talent from that's performing the best in the specific function? So the workforce
of the future looks vastly different.
The power of how talent is acquired has shifted subtly as well. It used to be solidly in the hands
of the employers, but today it's a two-sided equation. If I’m hiring somebody, I often do
interviews over SMS or text, because it's a stream of consciousness. It's not a prefabricated
dialogue.
But I also look at their LinkedIn profile, which is how they want the world to see them. I look at
their social media profile. And then the most valuable thing to me is the peer references that exist
in my network that can validate that that individual is who they’re representing themselves to be.
The flip side
But the flip side of that is we have websites that allow the applicant to look into the leadership
style. They can connect to their network of people that may have worked for that leader in the
past. They can see if the culture that they’re espousing is working.
So you have the fundamental shift in how you’re attracting, retaining, and working with talent
that is completely different from things in the past and the way that we have done it.
What the future will hold is that we’ll go to a point where you will carry your composite profile
of who you are and that will be made up of both social media external to the company, the
LinkedIn profiles, and in some cases, even your performance reviews, where it's appropriate to
externalize it. All of that will go in your employee record that will follow you throughout your
career. Systems will automatically update that, and so it will be much more consumable.

4. Smart companies that are innovating are redefining the processes by which they engage. In retail,
for example, you have seasonal workforce, and that seasonal workforce typically has to go
through the entire recruiting process again if they come back the following year.
Maybe I had a good experience year one. If I reapply, now I’m going through the website, now
I’m doing verifications. Why can't we re-imagine the on-boarding to be, “Dana, you worked with
us last year. You did a terrific job. We’d like to have you back. Is everything the same?” In fact,
you can put an application on your smartphone with which you can make sure that the
information is accurate, and then turn you on as an employee in the system automatically.
Instead, we’re encumbered in many ways to systems and thinking of the past around some of
these talent acquisition processes that are so core to delivering on the strategy.
Gardner: Shawn, thinking about the past, I suppose we used to measure things pretty directly --
productivity measurements, top line, bottom line. Is there a new way to measure whether we’re
doing this correctly, whether we’re getting the best workforce and best talent, ramping up to give
ourselves the resources we need as organizations to meet our own goals? Should we not think
about this in productivity terms? What's the right set of metrics?
Price: It's funny. We will always be top-line and bottom-line driven to some degree, but the
measurement isn’t necessarily productivity. Maybe it’s rethinking processes that can have a
material impact. One is this learning management notion, where I was describing engagement.
Imagine you are on-boarding to a new company. The most important thing for me as that hiring
manager is to get you up to speed and, in your words, productive as quickly as possible.
How did we do that in the past? We put you in a training course or maybe state-of-the-art, an
online web-based training course that would run days, if not weeks, on end to try and have you
assimilate everything that we needed you to learn.
Moving ahead
The new world, which is not based on that, is trying to move that on-boarding and productivity
ahead. The way that we’re doing it is we are saying, “We already own all of the subject matter
expertise required to on-board somebody. Wouldn't it be cool if, before you even join the
company, you could connect by a social network, not one of these isolated ghost towns that stand
on their own, but a social network connected to HR or connected to Ariba?”
We could have you engage with somebody doing your same job, so you could ask that person
anything you want before you got there -- what should I read, what should I learn, who should I
talk to, what's my first week like? That engagement was already occurring.
Then, when you arrive in the company, it would be your compliance learning, and the normal
HR functional learning, but you would also take advantage of subject matter expertise.

5. Today, the way that we learn is not in large chunks of data. Think about YouTube. It's web
downloadable, consumable in five minutes on my mobile device. That content that I need in
order to be enabled and to thus be productive is available from my coworkers in the form of a
five-minute video. Or there's this advent of massive online communities that are producing
content. Or I may choose to bring in an expert from outside the company to create content.
The visualization that I have is Khan Academy, where the most complex topics are searchable
and digestible via mobile in 15 minutes. That's where we’re seeing the shift from just pure top
line and bottom line to rethinking what on-boarding and engagement look like, and what does
that ultimately do to the acceleration of someone’s comprehension? There are many, many
examples.
Gardner: It seems like so much of what's going on now is vetted through a community of some
sort, and that a great deal of emphasis and trust is developed in this group setting. On one hand,
you’re looking to the social networks to learn more about hiring prospects. The hiring prospects,
of course, want to look back into that social environment to learn about you and your company.
Are you saying that companies need to start to become more open and social and create content
and the media and mechanism, so that they can be in a sense part of this community? And how
far along are companies in actually doing that?
Price: Many times social networks are established as standalone entities and they become ghost
towns after a while. You kind of lose interest because they lack content and context.
When you attach it to an actual application, you can publish dynamically to that community, and
you can search and see, for example, what was the number one search content today, this week,
this month.
Increasingly, I’m starting to see things on people’s resumes like their engagement index, which
says, “I was the number one producer of content for my company that was consumed by the
social network.” You’re seeing stack rankings of that nature and form.
Cloud strategy
Social will become, and has become, an enormous component of our cloud strategy. In fact,
today, we sit with more than 12 million subscribers on our social platform.
We have a large hotel chain that is actually using it to manage contract labor and part-time labor,
because they want the engagement. They want the connection, but they want to be able to
connect differently to them than the employee who is a full-time employee. And this hotel chain
has over 170,000 contractors in their communities, and they’re grabbing information and all the
expectations.

6. The other part of social, of course, is the mobile side of it. Our networks and our access to vast
amounts of skills that would have in the past been hidden are now available to peruse, almost
like a skills catalog within your own organization. You’ll find things that you didn’t even realize
you had in pockets of the globe. People’s skills that you wouldn't necessarily have on file even
are now apparent through that dialogue.
Gardner: Shawn, what about organizations that have moved beyond the nice-to-have phase of
understanding this and are becoming more serious, but maybe don't know how, perhaps it isn't in
their DNA, it's not something they have done traditionally. How do they begin the journey to be
more social, to predict the workforce of the future and their requirements, and how to stay out in
front of it so that it does remain an opportunity and not so much a challenge?
Price: Most companies are going through this transformation in HR because of the macro trends
we’ve been describing. What they’re ultimately trying to figure out is how do I create a strategy?
How do I build a set of applications that allows me to execute against that strategy and measure
whether I’m performing? And how do I drive cost out of it?
For many companies, they visualize this at the top line and the strategic level, but they also
visualize it as a process, and they think of that process as recruit to retire. We believe that you
can start anywhere, but you’re going to end up with this process that's interconnected.
Maybe your starting point is recruiting, because you have a lack of talent or you’re opening or
you’re expanding. Maybe you have a learning management on compliance, or maybe you have
performance and goals where you’re actually measuring the progress. You can start with any
application and interconnect it over time.
We have actually completed the entire portfolio of applications end to end in the market. Think
about Ariba’s connection with HR, which seems like a funny thing to say. On the Ariba Network
today, we have 1.5 million connected companies. We’re adding one every three seconds. Imagine
in that supply chain, in that labor pool, what would be available to you if you were to publish a
job requisition, for example.
So we look at it as recruit to retire. Where the world is going though is our cloud applications.
Today, we manage in excess of 35 million subscribers, the byproduct of people working with us
like that is two-fold. One, they tell us very quickly what they like and don't like, which allows us
to innovate very quickly. But the other side that you raised is the predictive side.
Predictive analysis
HR is really wide open right now for predictive analytics, and the only way you get there is by
having scale of people using your system. Today, for example, we have built 2,000 key
performance indicators (KPIs) and benchmarks to be able to tell us things like, what is my
management bench strength, today, 30 day, 6 months, and a year from now? Who is ready and
who is going to be ready, because of course that’s dependency to your strategy?

7. Or what's the voluntary turnover rate? We talked about five generations in the workforce. For
experienced workers, what's my voluntary turnover rate versus the millennial workforce?
Where we’re getting to is really being able to correlate multiple indexes to give us a predictive
view of what's going to happen. And that’s pretty exciting. That’s a pretty big breakthrough that
we’ve seen.
Gardner: If I understand you correctly, Shawn, we’re talking about being able to analyze what's
going on inside your company across many aspects of the business to better know what your
requirements are going to be vis-à-vis talent and in human resources. But you’re also analyzing
externally something like the Ariba Network and/or social environments so that you can then, if
you can't hire, you can procure, or perhaps the boundaries between them are shifting as we get
into more services procurement and we automate.
But the key here, I think, is the analytics. We need to analyze better what we’re doing and how
we are doing it, but we also need to analyze what's going on externally. Sometimes, that’s
difficult without a third party, a partner, or a platform. How do you advise companies to be able
to do this sort of comprehensive analytics capability?
Price: It's a great point. We have analytics on a particular application. So if you want to
instrument learning, that exists. There is analytics that cross the recruit-to-retire spectrum.
But then you hit on a really good point. How am I in category, in mining for retention for this
cost of worker, or how am I for recruitment and retention ratio relative to a 100 other minds?
You’re absolutely right. You can do it within an app, across an app, and using the power of the 35
million subscribers look at patterns that exist within an industry or a best practice.
The community component of this is really fascinating -- contributing best practices in new ways
to look at things and new indexes that companies build and publish to the cloud so our
communities can consume those new ways of looking at a particular process is an exciting time.
The byproducts are 2,000 KPIs that you subscribe to, to not only give you what is best in
category in your industry.
Gardner: I don’t want to go too far afield, but it seems to me that IT has a role here. We’re
talking about levels of analytics across organizational boundaries, joining information and data
types that may not have been joined before, or couldn’t be brought together in any way.
So is there an IT or a technology aspect to this? Is the old way of doing technology no longer
appropriate? What should we be thinking about in terms of our requirements for the technology
to accomplish what we want in order to have that best workforce in the future?

8. Ultimate measurement
Price: If you look at where we are, the ultimate measurement of a customer achieving value
with your application is that they use it. With HR, there is one side which is the logical. Do you
have the feature and functions? There is another part, though, which is the connections and the
emotion to use the software.
We’ve really taken much of the older model of IT’s involvement in the creation of data mart and
a report that takes forever, to putting that power into the hands of the employees and managers
for self-service, and that’s an exciting trend.
So we’ve tried to remove the friction of deployment. We’ve tried to create modularity, and we
have tried to abstract all complexity possible, so that we get to a point where there is minimal IT
involvement required.
Gardner: We’re beginning to run out of time, Shawn, so I want to close out a bit. Are there
some examples of being able to create campaigns that start to pull this together? It seems to have
an impact across many parts of the business. We need to think about change. We need to put in
the technology. We need to think more social, engage people in different ways, and think about
sourcing of talent in different ways.
Is there any precedent that you can point to of a campaign of some sort that has begun to make
the shift? Perhaps there’s a methodology that we can look at.
Price: We’re at a state in the market and the technology today where it's really a matter of
imagination more than anything else.
If you take retail, they have always had a historic problem of getting the right amount of talent,
in the right place, at the right time, as seasonal as they are. They may have two weeks of hyper
growth and they may have a great season or a bad season, but if they’re slow, they can't hire
enough talent.
So retail has re-imagined hiring. Of course it doesn’t fit all, but in some large global
multinational chains, they found that the actual people that shop in their locations is the same
demographic of people that work in their locations.
So they said if we can build a smartphone app that would allow you to apply while you are in the
store, and the manager in the store at that time can see your resume or your LinkedIn profile, we
can put you together and collapse this formal hiring process of weeks into potentially hours. This
is just a complete re-imagination of recruiting. They collapsed all of their hiring from weeks to
days.
We’re seeing this across all areas of the business, the ability to transform and visualize data.
Where did I get that last recruit from that was so exceptional, and what is the profile of that

9. individual? Talent doesn’t necessarily look like we think it looks from the past. Talent comes in
every gender, every diversity, and from every corner of the globe. So what patterns do we have in
our workforce that we want to replicate? The impact isn't just productivity, as we described. It's
the engagement and contribution.
Creating a connection
Then, if you think about some of the other areas, you just follow this example. If I’m joining a
company as a new sales rep, that application should be smart enough to look within my company
for people who have worked with me before, create a connection over social and say, do you
want to go for coffee, congratulations.
Maybe it goes out and sources over the Ariba Network for all of my laptop, my mobile,
everything that I need. And if it's really smart, it takes all of my contacts and pushes it into my
customer cloud, because I will have been selling to the same people over and over. That’s an
example of a process that will run across four legs of the application stack. We’ve never been at a
more exciting time -- ever.
Gardner: When you were speaking, you reminded me of the mantra several years ago in
customer relationship management (CRM) of know your customer well, know them end-to-end.
It now sounds as if we need to apply that to the employee.
Price: Absolutely. If you don't, and you don't really have the engagement level, you’ll probably
have a talent shortage, because you’re not measured hierarchically any more. You’re not
measured on the old traditional way. It’s about what you get in your personal brand. The
informed companies of the future will know their workforces better than anyone and know how
to replicate and scale them up or down at will and on-board them instantaneously.
Gardner: Perhaps the corporation of the future isn't a single brand, but an amalgamation of
many thousands of brands for all the people contributing to their common goals.
Price: Absolutely.
Gardner: I’m afraid we’ll have to leave it there. We’ve been talking about the fascinating
subject of preparing for the workforce of the future. We have seen how some new approaches
and technologies are coming to bear to prepare for this diverse and potentially productive
workforce, unprecedented in its scope, but uncharacteristic when you compare it to the past.
So a big thanks to our guest. We’ve been talking to Shawn Price, the President for Global Cloud
and Line of Business at SAP. Thank you, Shawn.
Price: Thanks so much for having me, Dana. It was a pleasure.

10. Gardner: And a big thank you too to our audience for joining this special podcast, coming to
you from the 2014 Ariba LIVE Conference in Las Vegas.
I’m Dana Gardner, Principal Analyst at Interarbor Solutions, your host throughout this series of
Ariba-sponsored BriefingsDirect discussions. Thanks again for listening, and come back next
time.
Listen to the podcast. Find it on iTunes. Sponsor: Ariba, an SAP company
Transcript of a BriefingsDirect podcast on how the job-seeking and recruitment process is
evolving into a more online and social-media engagement. Copyright Interarbor Solutions, LLC,
2005-2014. All rights reserved.
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