Businesses are increasingly churning out innovative HR solutions for better managing resources. Over the last few years, there has been tremendous advancement in the HR industry, where new technologies like predictive analytics and artificial intelligence have brought in much desired developments. HR professionals are now empowered to perform HR activities in reduced time span and are focusing more on hiring, engaging and retaining the right candidates for the organization by aligning organizational strategies with organizational and individual goals. The global human resource management is exhibiting remarkable growth and is expected to reach $30 billion in terms of market size value by the year 2025. It is the era where people want to work for organizations which not only provide a fair salary but also other benefits and perks that improve their overall work-life balance. However, the evolution of the HR industry isn’t devoid of challenges and HR professionals very much need to dive deeper into the industry dynamics to stay afloat in the market waters.
Have a look at the major HR trends that are expected to dominate the HR industry in 2019:
- Upskilling Employees
Over the last decade companies have put much focus on cost reductions in order satisfy the shareholders and economy and a major part of this practice involved workforce reduction due to skill obsolescence. However, now with fewer tech-savvy candidates in the market, the organizations are rethinking their resource management strategy and are focusing on upskilling their employees. Companies can adopt multiple ways to fill the skill gap like partnering with various educational institutions for fulfilling the learning needs and reducing the credential requirements. However, all these strategies will require investment in training and development. Besides being immensely useful for the organization, upskilling initiatives also have a positive impact on brand reputation, which in turn helps attract better talents.
- Eliminating the Gender Pay Gap
Industries are making prominent progress with time but, unfortunately, the issue of gender pay gap is still existent. Women still do not get their fair share of pay and in some cases opportunities too. A study showed that, despite the efforts made in this regard, gender pay gap in 2017 widened as compared to that in 2016. In 2016 women earned 81 cents for every dollar earned by men which dropped to 78 cents for every dollar in 2017. This trend also received heightened attention owing to the #meetoo movement and the HR industry is now facing an urgency to reduce or close the gender pay gap.
- More Emphasis on Digitalization
Organizations are widely embracing digital technologies, thereby changing the way in which the work is done. In this era of digitalization, making the employees tech-savvy through upskilling is of course important but more important is changing the mindset. Digitalization is not only about automating the procedures, but also requires rethinking strategies. However, often the organizations adopt technologies which are not inclusive i.e. they are not implemented considering their impact on different employees. Now is the time for the HR industry to implement digital technologies that truly contribute to creating better procedures and work environment, and lead to better engagement and retention.
- Focus on Ethical and Social Issues
Individuals are, more and more, looking for organizations which not only work towards satisfying stakeholders but also focus on bigger issues like equality, sustainability, sexual harassment prevention, ethics and transparency. There are many organizations that are contributing towards underprivileged communities, environment and many other social issues. Such initiatives create business goodwill, in addition to creating new opportunities and distribution channel for business. Through such focus, the HR can take the employee-employer relationship to a whole new level. Modern workplaces suffer from a number of distractions and disruptions like volatile financial markets, global trade wars, cyber threats, inequality etc and it’s the responsibility of the HR to create a motivating work environment.
- Rehashing the Work Culture
For hiring the right talent, the HR needs to be more flexible in terms of work culture. Companies often find it difficult to hire candidates that match with their job descriptions exactly. For this, companies need to welcome part-time workers, remote employees, disabled individuals and contractors, and provide them with good workplace experiences. Along with customer experience, organizations need to think about how they can refine the employee experience and create a hassle free environment.
Years back, the focus of HR was on one-size-fits-all solutions. However, over the recent years, this has shifted to personalization which includes taking care of individual needs and wishes of the employees. Most of the organizations have a definite structure, hierarchy and onboarding procedure. Learning programs are often directed towards groups instead of individuals and such standard approaches have often backfired. Organizations are now gradually changing their approach to take the different needs of individual employees in account. Even office designs now have an impact of personalization.
- Developing Trust
Lack of trust has been a prominent issue for the HR industry over the years, and research has shown that the level of trust employees put on their employers is lower than expected. For organizations to work smoothly, it’s important that the employees have trust in their work and technology. A recent global survey revealed that less than half of the surveyed employees have “a great deal of trust” in their employers. HR industry is now taking the agenda of strengthening trust seriously and is designing innovative solutions to aid the same.
All these trends converge to form a productive, engaged and thriving work culture where candidates can put in their best efforts to reach goals. Through the year 2019, these trends are expected to become more dominant in the HR industry, with the latter developing innovative solutions to streamline its approaches.