A lot has changed in the workplace arena since the pandemic. From reinforcing digital transformation, and revolutionizing employee benefits, to catering to flexibility, the workforce sphere is no longer the same. Automation and digital transformation are at the forefront of every business brought about by technological advancements, innovations, and customer demands.
On the other hand, more and more businesses are going digital as the COVID-19 pandemic displayed the essence, especially for businesses that were operating solely physically. In addition, many organizations are going global cultivating a need for HR policies that cater to diversity, equity, and inclusion for their smooth functioning.
In this article, we’ll look at some of the top emerging HR practices that are and will reshape organizations globally.
The Top Emerging HR Practices That are Revolutionizing Organizations
Human resource (HR) is a core function of every organization. HR policies, practices, or systems refer to a framework that an organization follows to hire and manage people within. Although organizations and businesses differ greatly when it comes to operations and the type of employees they hire, there is a lot of commonness in HR policies followed by all organizations.
However, due to the evolution of the workforce industry, there is a remarkable shift in the way HR policies and procedures are crafted. Traditional HR policies were known to be rigid and a huge stirrer for employee exploitation, however, contemporary HR policies are employee-centric.
Additionally, the aftermath of the 2020 pandemic has led to a significant insurgence of workplace rules and regulations in a way that prioritizes employee welfare and productivity. Beyond that, HR policies and systems globally have evolved as a way of establishing reliable structures to help organizations better manage and retain people.
If you’re an HR professional or a business leader, here are some of the major emerging trends in the HR field that you would want to take note of;
1. Hybrid Work Culture
The advent of the COVID-19 pandemic brought a dramatic shift in the way we work. As businesses closed to work remotely, the emergency displayed new possibilities and benefits that a large-scale remote work culture can offer. Two years down the road, the remote work model is still being leveraged in numerous organizations worldwide.
Generally, hybrid work culture is a work style that entails in-office and remote work. Since the beginning of the COVID-19 pandemic, several tech giants like Google and organizations have displayed their interest in introducing the work model to their employees.
Some of the major drivers of a hybrid work model are technology accessibility and the need for flexibility. Offering flexibility to employees is seen as an excellent approach to boosting employee morale and reducing employee turnover.
A report by Microsoft in 2021 asserted that 66% of business leaders said that their companies were considering redesigning their workplace to cater to hybrid work. To substantiate, 73% of employees crave for flexible remote work options to stay at their companies. With all that, flexible work is here to stay and will continue influencing HR policies globally.
2. Need for Soft Skills
Qualifications and technical skills can help employees get hired, but they can’t guarantee their stay! And this impacts both employees and the companies they serve. Precisely, it can be easy for employees to learn technical skills, but difficult for an organization to teach them quality personality traits!
It’s people who get things done in organizations and therefore, many HRs are becoming keener on the type of people they hire. Good employees can help an organization grow and thrive whereas bad employees can tarnish a company’s image.
Recently, key global entrepreneurs like Elon Musk stressed the importance of being selective when hiring employees. Soft skills like emotional intelligence, a sense of humor, and honesty are vital. These skills can help take an organization forward and improve the quality of a workplace environment.
Moreso, it’s employees with the ideal personality traits like a willingness to learn, collaboration skills, or who know the value of relationships that can help businesses attain a competitive edge in the marketplace.
With the known impact of the quality of employees, more organizations are putting emphasis on hiring people with additional soft skills like communication, a positive attitude, critical thinking, and perseverance among others.
3. Reskilling & Upskilling
This is the digital age and there is little companies can do about it, but rather to matchup. A 2020 McKinsey & Company survey indicated that several companies in the tech, telecom, and financial service sector are bound to experience the heaviest disruption from skill gaps. With the current speed of digital transformation and mechanization, organizations need to adopt the latest technologies to attain efficiency.
Reskilling and upskilling are seen as the immediate approaches to closing digital skill gaps among employees. As much as HRs may prefer to hire employees with the necessary technical skills, there might be a need to train employees how to use specific software and tools at their new jobs.
Reskilling and upskilling employees can help an organization have a smooth change management process and help address talent needs. On the other hand, many organizations are also using technologies such as recruitment tools to manage their recruitment exercises. All in all, digital transformation and innovations are expected to continue impacting HR policies and organizations at large.
4. Employee Growth Possibilities
HR systems are vital to every organization since they not only help scoop the best talent in the marketplace but also help in creating a positive work environment. However, many employees join organizations with the hope to grow and advance career-wise.
A 2018 study revealed that 40% of employees were leaving their employers due to a lack of future career development and dissatisfaction. To substantiate, Brian Kropp, Gartner HR practice group vice president asserts that many employees become determined to leave organizations if their employers are showing no interest in investing in their future.
Recently, a report by McKinsey & Company indicated that 41% of employees are citing to leave their jobs due to lack of development and advancement with inadequate compensation and a lack of workplace flexibility as additional reasons.
This is forcing employers globally to prioritize employee growth opportunities through career development programs and deploying employees into new roles to enhance job satisfaction.
5. Employee Welfare
The pandemic spurred the 2021 great resignation, highlighting the need to prioritize employee engagement tactics. Besides the top employee demands i.e growth opportunities, attractive pay, and a positive work environment, modern employees, especially millennials are bent on employee well-being and flexibility.
Companies that wish to hire millennials and Gen Z must ensure to provide reliable employee well-being programs to enhance employee engagement and keep employees happy at work. A lack of support for health and well-being is a key driver for employee attrition today.
Many employees are looking for organizations where they can feel safe and attain the flexibility they desire in a job. With that, prioritizing employee welfare and well-being through programs like stress management can offer a competitive edge for a company to attract the best talent. They can also help to keep employees happy and this can build a company’s image.
There are several factors that are redefining HR practices and the human resource management industry globally. From the impact of the pandemic, soaring costs of living, and technological advancement to the need for flexibility among work schedules, there is certainly a lot that is reshaping organizations’ HR systems. In this article, we have looked at some of the major emerging HR policies that will continue impacting organizations. Recognizing and considering the shifts can help organizations cultivate a positive workplace environment and direct their growth.