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Human Capital Trends

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Human Capital Trends 2013
Leading indicators

Crucial Conversations
This year’s human capital trends should be viewed as leading indicators of emerging threats and strategic opportunities. Leaders who take the time to understand how these trends might affect their organizations can put themselves in a position to win. Those who make their decisions in isolation, without the benefit of engaged conversations with other leaders, may expose their organizations to out-sized risks.
Human Capital Trends for 2013 builds on those of previous years, revealing business expectations for talent and performance that have risen to dizzying levels. Not only are organizations having to do more with less, they’re doing so in the face of dramatic shifts in technology, globalization, demographics, and regulation.
Looking ahead, the pressure for performance will likely increase as business decisions become more complex and challenging. Even small decisions have the potential to cascade with unintended consequences throughout an organization. That’s why business executives should actively engage with one another around the trends captured in this report.
Many leading organizations are already having these crucial conversations. They recognize that now is the time to get ahead of the trends by making more informed decisions. The seven Human Capital Trends for 2013 provide a solid checklist for getting started.

Welcome to annual report examining significant trends in human capital.Human Capital Trends 2012 Leap ahead 3
Contents
Thinking like an economist 4
The open talent economy 8
Innovating the talent brand 11
Creating an elastic workplace 14
Finding the silver lining in the talent gap 17
Debunking the Superman myth 20
The performance management puzzle 23
4

1
Thinking like an economist

Increasingly, many HR leaders have to answer questions that have

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