Human resources are the most dynamic assets for a company. The way human resources were managed before is completely different, in fact the opposite of how it is today.
For example, the 6-day working week was very common and considered productive in early 2000s, but things soon changed, when Indian IT companies like TCS and Infosys introduced 5-day work week. In turn, they became the most preferred company by IT professionals during that time.
HR policies of a company must address these new trends in HRM quickly and stay ahead of the curve. HR teams can ensure that the company is always using the best practices for hiring, retention, and productivity.
In this blog post, we’ll discuss some of the most recent trends in HRM that every small business owner, entrepreneur, and HR manager should be aware of. We will also provide some tips on how you can implement these trends in your own workplace. From the impact of AI to the rise of remote work, these trends will shape the future of the HR field.
Here are some of the latest trends and emerging issues of HRM that companies must consider while updating and drafting their work policy. These are extremely important for small businesses, startups, tech companies, and emerging industries.
With the outbreak of COVID-19 pandemic, many organizations were forced to close their physical offices and ask employees to work from home. While some companies have decided to allow their employees to continue working from home even after the pandemic subsides, others are transitioning to a hybrid model where employees work from both home and office.
Quick Fact: As per the research conducted by CBRE South Asia Pvt Ltd, 73% of the companies have started the hybrid working model for better work-life balance of employees and lower attrition rate.
With the advent of technology, employees are no longer wanting to be tied to their desks from 10 to 7. Many companies are now offering flexible working hours, which allow employees to choose when they want to start and end their workday.
Example: Philips and Bacardi offer flexible working hours to their employees. In fact, Philips has a “results-only work environment” where employees are only evaluated based on their work results and not the time they spend in the office. Similarly, Bacardi allows its employees to design their own work schedule depending on their role, team, and project deadlines.
While many companies are trying to figure out how to best support their employees, some are also rethinking their policies for working parents with young children. It has always been difficult for working parents to find affordable, high-quality, and trusted childcare before children start going to school.
This leads to many new mothers having to quit their jobs or take unpaid leave to take care of their children. To support working parents, some companies are now offering on-site or near-site day care centers. While these programs are still relatively rare, they are becoming more common as companies realize the importance of supporting working parents, especially in a nuclear setup.
Suggested Read: List of Best Human Resource Management Software In India
Employee experience is becoming increasingly important to companies. This is because happy and engaged employees are more productive and have lower rates of absenteeism and turnover.
Additionally, happy employees tend to be better brand ambassadors and help to attract new talent. To improve employee experience, companies are focusing on creating a work environment that is enjoyable and stimulating.
Example: Many of the startups in India have employee happy hours and engagement games like snooker implemented in their workplace.
In the current climate of rapid change and technological advancement, it is becoming increasingly important for employees to adapt and learn new skills. To stay ahead of the curve, companies are investing in employee upskilling and continuous learning.
One way that companies are doing so is by offering training and development programs. Although this is not a very recent trend in human resource management, the ways of upskilling employees have surely changed. Now, it’s more flexible and cost effective than ever as cloud learning and training is being adopted.
Pro tip: Offer your employees access to online courses and learning resources like LinkedIn Learning, SkillShare, and Coursera.
Predictive analytics can be used to identify high-potential employees and to assess which employees are at risk of leaving the organization. Additionally, it can be used to identify training and development needs and to create succession plans.
Pro Tip: By understanding the trends, data and drivers of employee behavior, you can use predictive analytics to make more informed decisions that will help to improve the effectiveness of the workforce.
The workplace of the future will be more diverse, equitable, and inclusive than ever before. As the workforce becomes increasingly globalized and companies expand their operations to different parts of the world, it is important to promote diversity, equity, and inclusion in the workplace. One way to promote diversity is to develop policies and practices that are fair and inclusive of all employees.
Additionally, HR can provide training on unconscious bias and cross-cultural communication. By promoting diversity, equity and inclusion, HR can create a more inclusive workplace where everyone feels valued and respected.
Study: As per research conducted by Great Place to Work, Employees working in a company that shows equality, inclusion and diversity, are 5.4 Times more likely to stay longer with the company.
Suggested Read: Ways Cloud HR Software Can Improve the Workplace
Employee wellness is one of the most widespread trends of human resource management. Many organizations are now offering wellness programs and perks such as gym memberships, meditation and yoga classes, and mental health support to their employees. Google has offered virtual cooking classes and even guitar lessons for its employee’s well-being during work from home.
Study: A case study by Emerald found that there is a direct correlation between Employee wellbeing and productivity. It shows the company which has better wellness programs for their employees, opted for significantly lower number of sick leave and PTO’s than in organizations that didn’t have any wellness programs.
The use of artificial intelligence (AI) in HRM is increasing for functions like recruitment, performance management, and employee onboarding are becoming more common. This is because AI can help to improve the efficiency of HR processes and make them less time-consuming. Additionally, AI can also help to improve decision-making by providing accurate data and insights.
HRM can automate the process of data collection and analysis to free up time to focus on more strategic tasks. In addition, AI software can be used to improve the accuracy of performance reviews and other forms of assessment.
With the advent of social media and online job boards, the process of recruiting has become more efficient and cost-effective. Social Media recruiting, WhatsApp communication, and virtual interviews are the recent trends in recruitment in HRM by most businesses. Additionally, new technologies like applicant tracking systems and candidate management systems have made it easier to manage the recruitment process.
Suggested Read: Key Roles and Responsibilities of HR Managers in Post Pandemic World
In recent years, there has been a shift in focus to employee retention. With the war for talent acquisition becoming fiercer, companies are adopting new ways to retain their employees.
Offering competitive compensation and benefits, providing development opportunities, and creating a positive work environment are some of the effective strategies for employee retention as one of the trends in HRM.
Internal communication is crucial for any organization as it ensures that employees are aware of the company’s vision, mission, and values. Additionally, internal communication helps build a sense of community and promotes a positive work culture.
Pro Tip: Some of the ways to improve internal communications, such as using dedicated social platforms, WhatsApp Groups, and virtual skip-level meetings.
Fact: The users of Microsoft Teams increased from 20 million in November 2019 to 75 million in April 2020.
Performance management is an important part of the employee experience, as it helps employees identify the scope for improvement. 360-degree performance management is a type of performance appraisal where employees are evaluated by their peers, subordinates, and supervisors.
This type of appraisal is beneficial as it provides a more holistic view of an employee’s performance. Additionally, it also leads to more accurate and actionable feedback.
As the workforce becomes increasingly globalized and companies expand their operations to different parts of the world, it is important to promote environmental ergonomics in the workplace.
By understanding the impact of the work environment on employee productivity, HR can make decisions that will help to improve the effectiveness of the workforce. Additionally, HR should provide training on how to optimize the work environment to improve employee productivity.
Suggested Read: Best Practices for HR Process Automation Across Industries
Wrapping Up
These are some of the recent trends in HRM that must be implemented cautiously in any organization.
To be successful, HR must continuously adapt to the ever-changing needs of the workforce. By understanding the latest practices and trends in HRM, HRs can develop strategies that will help to improve the efficiency of the workforce and to promote a positive work environment.
FAQs
There are multiple new trends in HRM followed by different organizations based on their needs and requirements. Some of the current trends in HRM in 2024 include the focus on employee retention, environmental ergonomics, and powerful internal communications.
The globalization of the workforce has led to several changes in HRM. Some of the contemporary trends in HRM due to globalization include multi-channel recruitment, hybrid working, and bringing diversity to the workplace.
The five major HR trends are a focus on employee retention, environmental ergonomics, powerful internal communications, 360-degree performance management, and omni-channel recruitment policies.
HR trends are important because understanding the latest trends in HRM can help organizations make better decisions about their workforce.
Some of the major trends in HRM over the next five years include a focus on employee retention, environmental ergonomics, and hybrid working. Additionally, HR management should play a vital role in the globalization of the workforce.
Related Categories: HR Software | Payroll Management Software | Attendance Management Software | Leave Management Software | Recruitment Management Software
Business competition in the business environment demands that businesses be streamlined, both in operations and… Read More
It might be difficult to monitor an employee's path from hiring to dismissal closely. Every… Read More
When selecting the best ERP software for your business, it only makes sense to survey… Read More
There is no doubt that remote access technology has proven to be very helpful in… Read More
Introducing Xoriant Corporation, leading player in the era of product development, engineering, and consulting… Read More
The dark web is a part of the internet that isn't indexed by standard search… Read More
