The unemployment rate in some of the leading economies, such as the United Kingdom, Japan, and Germany is at an all-time low. However, apart from the low unemployment rates and the employee initiated job turnover, there are other global Human Resources Trends that are worth highlighting.
Talent Acquisition & AI
The recruitment journey continues to evolve and become more digitized, with Artificial Intelligence (AI) and other technical solutions used in this area more and more. Most organisations still have standardised recruitment practices that are consistent with the old worldview that the management set up systems and structures while the HR looks for staff that fit in. It is time to evolve recruitment and bring in technical (automated) solutions for screening resumes and further enhance the Talent Acquisition process.
A gig economy is a free market system in which temporary positions are common and organizations contract with independent workers (freelancers, temporary employment contract) for short-term engagements. This segment of the workforce is quickly growing. For a long time, this arrangement has been supplemented to full-time jobs, but that is no longer the case. The segment is becoming more mainstream and is also influencing remote work.
Flexible Ways of Working / Remote work
The globalization and the new generation’s work characteristics will lead to an increasingly diverse workforce. Read more about the New generation’s work characteristics: the importance of your leadership style. The new generation workers would like to have freedom and flexibility in working hours and location. This means adopting a new way of working to where it is not always required to work in the office. HR should take the lead and make the business aware of how to manage and motivate remote teams. There are more than 800 transnational companies that operate in the EU. The remote working model (flexible way of working) is a great way to reduce costs, drive employee engagement and remain competitive.
HR Data: metrics, analytics and data
HR professionals need to be prepared to use more data and analytics to show their value to the management. Metrics as of turnover rates or hiring results will still be valid however more data is required e.g. tracking of productivity, programs/ initiatives that will have an impact and tracking filters/ mechanism to get the best candidate out of the big pool. HR professionals will have to deal with more analysis and data tracking and need to have the skills to analyse, predict and work with data and tools.
Entry-level HR jobs in-house, will all disappear as transactional tasks will be outsourced services. Due to the innovation in technology nowadays, more and more administrative transactional activities can be outsourced to external HR agencies and/or shared service centers. The HR department has to innovate also in more self-service tools for employees, as this will free up time for HR to act as an entrepreneur / strategic partner.
Reskilling of HR
HR professionals have to identify their specialty and expertise as the HR environment will change in the upcoming years. To become an HR specialist it is key to build a network and learn more about entrepreneurship, business, data, analytics and strategic leadership. This approach will lead to the best way of engaging with the business and employees as HR professionals are investing in their own development to serve in the best way for all Human Resources in the company.
As the transactional work will be outsourced and the in-house HR department will be working LEAN, the HR professional needs to reposition itself as a strategic partner. This role cannot be outsourced, but the HR professional has to have the skills to draft strategic plans and understand business and operational implications. As a consequence, this means that the HR Generalist will disappear.
Employee engagement was one of the most important trend and will continue. Engaged employees will work harder, are less eager to leave the company and understand the impact they make on others. The new generation of employees wants to be fulfilled by making a meaningful impact. Key items to focus on for a great employee experience are: Personal Development plans, Health & Wellbeing programs, Diversity & Inclusion and Recognition & Awards.