HR practices in the last decade have seen a sharp rise in technological advancements and changes. As more and more companies become technology-oriented, human resource management has evolved to keep up with the industry.
HR Trends to Watch Out For in the New Decade
Technology will continue to shape the future of the human resource management industry. In the coming years, AI will continue to gain traction in human resource management. According to the artificial intelligence survey by Gartner, “17% of organizations use AI-based solutions in their HR function and another 30% will do so by 2022.” Moreover, they also predicted that “two-thirds of early AI adopters have one to three active AI projects, with plans to double the number of projects by the end of 2022.”
Recent AI-based HR trends include automation of most HR tasks, such as organizing employee records, and various data analysis tools to help company management with decision making.
Improvement in Data Management
Gone are the days when HR relied on reams of papers to track present and past employees and potential hires. Today’s HR relies on databases and analytics. As technology improves and as more companies develop software, analytics based on HR data management will become more common. Advantages of data management includes fair pay based on previous experience, easily accessible employee data, and a streamlined database to manage recruitment processes.
Gig economy is a term that has been coined to describe the practice of companies outsourcing work tasks, unlike traditional employment, which requires full-time employees. This trend in human resource management has been evolving since the beginning of industrialization, and it is expected to get more popular in 2021.
In the future, more and more companies are going to adopt the “gig economy”, where employees are hired as independent freelancers. This change will undoubtedly have a lasting impact on the global economy. It is predicted that the shift in hiring and working practices will disrupt traditional business models, but it is an inevitable trend that we cannot afford to ignore. Not only will these changes affect the company’s bottom line, but they will also change how employees view their work and careers.
The gig economy has already started impacting HR decisions and practices in many ways – permissiveness of work-from-home arrangements, flexible schedules, and job titles with less responsibility.
Increased Focus on Upskilling and Reskilling
“The 2021 workforce is on track to become more diverse than ever.” However, with the rapid advancements in technology, it is becoming more and more difficult to keep pace with the changes. To manage this, companies are turning to reskilling and upskilling their employees as a priority.
In 2020, upskilling and reskilling were considered important trends in human resource management because of the shift to a remote and virtual work setup. As a result of reskilling, employers are now focusing on employee skill sets rather than job titles. This trend has been growing over time and will continue to grow this year. In addition, with increasing pressure on cost, many companies are finding ways to cut costs which led to this ever-growing trend of reskilling employees so that they can improve their productivity levels.
Reskilling and upskilling are not only important for employee development but also for the company’s growth. By increasing employee skill sets, companies will gain greater productivity and maximize the return on investments made.
Understanding the Younger Generation
With the youth unemployment rate at its highest point during the pandemic, companies should take a step back and look into how they can attract younger workers and retain them. The younger generation is known for their extensive use of technology. Because of that, they are driving major changes in workforce trends in terms of how organizations are managed.
In 2021, the trend of understanding younger workers has begun to shift from just a marketing strategy to a dedicated practice. As a result, many companies made changes in their approach by increasing wages or providing more flexible schedules to young workers.
The millennials and gen Z are becoming larger segments of the workforce. That’s why it is critical to understand how they view the workplace because it will impact the future of human resource management strategies.
Overall, it is expected that HR will continue to grow and evolve with new technologies and key changes in the workplace. The future of HR is going to look very different. These include utilizing AI and robotics in the workplace with digital experiences for employees and customers, predictive analytics for employee development plans, and more. Human resource management will need to be more than just a job description for many employees. It will also need to focus on how these advancements can help individuals find meaning in their work lives.