Top HR Trends 2021 – Future Human Resource Management.
The top trends for the year 2021.
Today’s economy, innovation of technology and the new generation of employees are forcing HR departments to develop new ways of working with other skills and specialism. In our article Evolution of the HR Operating Model, we shared more around the visibility of the HR department in showing insights on customer satisfaction and continuous improvement initiatives leading to more business results, reducing costs and getting profit.
One of the biggest challenge HR professionals are set to encounter in regard to HR skills in the future is acclimatising to a hybrid working environment – and knowing the difference between a distributed, remote and flexible workforce.
The challenge is now ensuring employees stay connected to each other. HR has the important task of focusing on what's really important. It should be all about People & Culture.
The top trends for the year 2021 are:
- Strong development of the labour market
- Impact of working remote
- Digitalisation of HR processes
1: Strong development of the labour market
In September 2020, 413,000 people in the Netherlands were unemployed, which is 4.4% of the labor force (sources Central Bureau Statistics Netherlands). From June through August, the number of unemployed still rose by an average of 32,000 per month. In the same period, the unemployment rate rose to 4.6%. Unemployment will rise higher than 6% in 2021.
Unemployment will be amongst young professionals, the freelancers, people with disabilities and migrants. In the short term, a mismatch in the labour market will emerge. The demand for workers is dropping in some industries, while demand is increasing in others. As a result, the skills of job seekers might not match up. The mismatch is also be reinforced as there will be an acceleration in the growth of automation, robotisation and digitalisation. The future of HR in general is focusing on the reshape the People & Culture aspect.
2: The impact of working remote
For employees working from home or remote, daily life has changed considerably. Working from home requires discipline, independence and creativity.
Psychological strain and (risk of) burnout are serious problems. According to research conducted by the National Centre for the Prevention of Stress and Burn-Out (NCPSB), there are 4 (four) million 'hidden burnouts' in The Netherlands. Employees who are at risk of dropping out within six months if no action is taken. Due to the COVID-19 situation, this number has increased rapidly. Specific attention is also essential for creating connection and interaction with teams. How do we keep employees engaged and how can we preserve the business culture?
3: Digitisation of HR processes
In recent years, digitisation has already taken a prominent place in the HR field. Remote working with digital meetings or online presentations are part of the new reality.
Many organisations have had to drastically intervene in their HR processes after the plandemic. In addition to working from home, job interviews and assessments are mainly conducted online. Onboarding and training programs require extra attention to ensure colleagues can settle in properly. In addition, digitalisation allows organisations to deploy employees more versatile and better develop and train them.
Digitisation has a long-term value
Digital tools support HR and the use of technology focuses in particular on achieving two objectives. First, to increase employee satisfaction. Second, to reduce the workload and ensure organisational agility. Data-driven decision making will receive a boost and can bring employers and employees closer together. All in all, the trend of digitisation of HR processes directly affects the HR agenda.
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