Human Resource Industry is Flourishing. What Lies Ahead?

Like any other industry, the Human Resource industry has transformed itself in the past few years. Owing to drastic changes in the mindset of both employees and employers, this industry expects to deliver more which has given rise to HR Tech involving Metaverse, Artificial Intelligence and Machine Learning. Additionally, advancements in the HR industry are making hiring, onboarding and employee experience more efficient and people-centric.

Integration of technology in the HR space has automated manual HR processes, leading to increased productivity and retention. This industry is changing its structure almost every day following technological advancements and employee well-being. 

What’s lies ahead for the HR industry? What’s worth looking forward to in the future? What are the trends that will dominate it? Let’s find the answers. 

• The hybrid Work Model Will Stay

Everyone is happy with the newly introduced and employee-centric ‘Hybrid Work’ approach. Many giants like Ford, Infosys, Siemens, Amazon, Hubspot, and Microsoft, to name a few hopping on this trend. While some organisations are encouraging their employees to start coming to offices again (as they think face-to-face interactions are better for collaboration), many are still preferring the hybrid culture.

As per the reports, 40% of the workforce would prefer to leave the organisation if the hybrid work model is put to a halt. Hybrid workers in India believe that working remotely boosts their productivity. Employers who are accepting remote working options can hire more candidates than those preferring in-office talent. 

To help firms adapt to the hybrid work environment and assist them simplify their operations, HR technology can be put to use. Additionally, hybrid work culture allows expanding the business in foreign markets. It opens the door for new opportunities, hence increased revenue and growth. 

• Acceptance of HR Technology

Global HR technology is projected to be valued at $35.68 billion by 2028. HR leaders are quickly integrating technology into their daily tasks to stay ahead. With the implementation of AI-powered analytics solutions, HR will not only be able to do data-driven hiring and identify employee departure trends but also help them make strategic decisions. 

Recruiters are using chatbots to interact with candidates and apps for employee management, thus leading to increased transparency, better engagement and output and improved brand recognition. Virtual assistants are being used for scheduling interviews and other apps to perform redundant tasks. Automation is paving the way for a transparent and unbiased recruitment process.

• Increased Focus on Diversity, Equity, and Inclusion

Diversity, equity, and inclusion are terms that describe how companies should view their policies, values, programs, strategies and practices as it relates to employees’ and customers’ experiences. As per a survey by SurveyMonkey, nearly all job seekers wish to work in a company that keeps DEI as a priority. Firms that promote inclusive cultures are eight times more likely to deliver superior commercial outcomes and twice as likely to record or surpass set targets.

Moreover, another aspect that should be included in DE & I is ‘Belonging’ as employees show better productivity when they feel that they are working for their firm. It also encourages accountability. 

There are many ways via which organisations can build a DEI strategy.

1. Consistently train and engage employees on Diversity, Equity, Inclusion and Belonging (DEIB)
2. Develop effective  Employee Resource Groups (ERGs) 
3. Introduce a policy that honours multiple religious and cultural practices
4. Use the Inclusive Workplace Model to promote inclusive cultures
5. Create a robust mentorship program

• Employee Analytics and Management

Without employee management, it becomes difficult to track their performance and contribution to the company. Here, analytics are playing a key role in offering information to monitor performance and make informed decisions. 

Analytics is gaining a front seat as companies are now tracking employees’ progress, ensuring the completion of Objectives and Key Results (OKRs) and also honouring & appreciating them based on their performance. 

• Focus on The Healthy Organization Framework

A report by McKinsey Health Institute found that one in every four employees globally experiences burnout symptoms. Employers are now dedicatedly focusing on encouraging a healthier workforce as it leads to increased employee turnover and reduced absenteeism.

Rather than only applying a health-centric lens, other factors like job and work design, psychological safety, management, and rewards practices should be taken into consideration. If employers focus on promoting ‘The Healthy Organization Framework’, everyone feels supported. 

This framework has seven major elements:

• Physical Health
• Mental Wellbeing
• Financial Fitness
• Social Health and Community Service
• Safe Workplace
• Healthy Culture
• Technology and HR Capabilities

The Bottom Line

It’s obvious to say that the pandemic has changed how the workplace works but it has opened up new opportunities for the HR industry to grow multifariously. The new trends in the industry will further help it transform for the better. To stay ahead of the HR game, organisations will keep adapting to changes and state-of-the-art trends.

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