This year welcomes us with three main paradigms that will be defining the new trends in Human Resources. Among these, there is a wave of technological transformation in companies, new ways of identifying talent and the automation of tasks. That is why talent professionals will have to gain more protagonism when working with business strategies. Now, which specific situations should we keep an eye out for? According to the European Commission, by 2020, 16 million more jobs are expected to require talent in information and communication technologies. It is a fact that digitization will also mark the new year and will pose great challenges for talent management. Human Resources professionals have to face new challenges in order to fulfill the main functions they perform, from attracting, retaining, managing and developing talent, to further deepening the business strategy and working together with management. Next, we have summarized what industry professionals see on the horizon:
The trends in a nutshell:
- More Inclusivity
- Environment Personalization
- Employee Engagement
- Financial Wellness Technology
- Employee Branding
- VR Sexual Harassment Training
- AI Assistants
- Even More Task Automation
Do employees trust your company? The new, up-and-coming tech tools facilitate communicating with total transparency different functions performed by Human Resources professionals. The assessment of performance will be practically in real time to enable decision making at a much faster and effective pace. The employee will be more aware of the opportunities and benefits that are available to them within the company, as well as have more control over them. As a highlight, the employee can also make an assessment of the company, the work environment and the environment in the organization. Thus, the company-worker relationship will have a transparent base and bidirectional commitment that will lead to general well-being and engagement.
Certainly, the drive for gender equality was a dominant theme in the general conversation of 2018. As that dialogue continues in 2019, it is likely that this will spread to many more industries, but it will take different forms. In 2018, the number of women CEOs in Fortune 500 decreased by 25%. Therefore, attacking this disparity may indicate the change that’s been happening little by little in the recruitment processes. For example, we recently addressed the famous blind hiring, a new way of developing a typical CV, in this case without including anything that gives information about the sex, age or ethnicity of a future worker. This eliminates any type of information that has nothing to do with a person’s work capabilities. This is a kind of effective management of the diversity and inclusion of workers at all levels and is something that will possibly be implemented much more during this year.
Historically, human resources have focused heavily on standardization or a one-size-fits-all type approach. This makes a shift to a space where the concerns, desires, or individual capabilities of an employee a bit complicated. Traditionally, many Human Resources practices take the needs of the organization as the starting point. An example is the typical paradigm of “We need someone to cover this position”, instead of “What could we improve in the position or organization with these candidates who are applying?”. This shift in perspective towards the employee’s needs has first become a hot topic within many Human Resource circles. In addition, office design is an area where the standard approach has failed. Most new office designs now take into account the different needs of users. If you work better around other people and if you regularly need the advice of your colleagues, you can work in open spaces. When you need to concentrate on a complicated report, you can sit alone in a quiet room. For a call with a customer, you can find one of the small telephone booths. In 2019, personalization will receive a lot of attention, and employees and organizations will benefit.
Employee engagement tools help organizations request and track feedback from their employees, recognize employee achievements and promote positive thinking. These are used to understand employee sentiment, promote recognition of employee success throughout the company, and promote positive activities that benefit the health or well-being of the organization or its employees. The commitment of the employee is the level of emotional connection, sympathy, and commitment of an employee with your organization. When employees feel valued, their dedication and enthusiasm for their work, their co-workers and their company grows. This, in turn, increases employee retention, performance, and productivity. It was found that 80% of the Human Resources employees surveyed think that the use of Human Resources technologies improved the attitude of employees towards the company. Meanwhile, 57% of Human Resources employees fully agree that employee engagement initiatives will help your company retain productive personnel. When employees are engaged, everyone wins.
Corporate wellness initiatives that focus on financial and mental health, in addition to physical wellness solutions, will expand in 2019. Companies will use financial and mental health solutions to work in part with wellness solutions in all areas. ‘Financial Wellness Technology’, or finwelltech, provides solutions for everything related to an employee’s financial health, including debt, savings, mortgages, profits, and investments. This technology provides a holistic solution for employees looking to manage their finances. From the benefits of paying student loans to assisting employees with short-term financial problems, employers are increasingly providing financial education, assistance, and solutions.
In addition to taking care of the image that the company projects towards its clients, we must not forget the image that candidates and employees perceive. Digital media serves as a communication channel to deliver the brand image as an employer, so potential candidates can obtain information on the online reputation of companies and opt for the best valued. It is not complicated to focus efforts on this, but it has been a detail that many companies have left aside for years. The more the job offer menu grows, the more companies have been forced to differentiate themselves from the rest. Likewise, to involve employees in that brand image, in short, to make them ambassadors of the organization through a good strategy of Employer Branding, enhances engagement and the attraction of new talent.
In most situations, sexual harassment training isn’t taken seriously because it’s considered a matter of compliance and legal obligation, rather than a matter of workplace safety. This is where VR comes into play. VR training is a completely immersive training experience. Taken from the perspective of a bystander (rather than a victim or perpetrator), the virtual training program asks users to choose how they want to approach various scenarios in the workplace and lets them experience how their decisions play out. While virtual reality offers many advantages to traditional sexual harassment training, the human interaction element remains a potential barrier. At the end of the day, it’s not a bad solution, but the question still stands when it comes to “will it actually work?”. We will see how it plays out this year.
Data analysis is a global trend applicable to any sector. The data that is collected, classified and analyzed using AI compatible technology should not be considered as the beginning of the end of human work. Rather, AI can and should serve as an assistant to humans. It is expected that the insights gained from the organization’s data will help Human Resource leaders address their tasks in new ways and address the persistent problems that are most appropriate for AI. In this way, the data will allow more and more managers to focus on priorities and assignments that require a more human touch. For example, the data can show which employees are at risk of leaving, allowing human resources to discuss possible outcomes with managers, who can speak proactively with employees to discern if they are satisfied at work. The data could also reveal when a manager is having trouble maintaining new hires. This could help determine which managers could benefit from additional training, or even a consider conversation supported by data. And the data can indicate when a department exceeds its budget of assigned extra hours, which allows Human Resources to help managers better guide their programs. Communicating with human employees is exactly what HR should be doing, and data analysis allows HR to act based on meaningful information. The realization of the “human” element in Human Resources can become more intuitive than ever thanks to the data.
If you are already part of Factorial, this will not come as a surprise. As new technologies emerge, the Human Resources department is adapting to internal digital transformation to respond to current needs with profiles more adapted to cultural and technological change. Cloud-based processes and systems are not new to the Human Resources industry, but many organizations have relied on hybrid solutions or legacy systems to help fulfill Human Resources roles. In the next year, a change towards fully cloud-based operations is anticipated for more businesses, particularly in the area of personnel management and analysis. Cloud systems offer several advantages to companies, including greater capacity, greater speed and greater security, which is driving this growing trend. In addition, this would be tied to a self-service within the company. While employee self-service is easy to understand, the technology driving this new trend is crucial to the continued success of companies around the world. Through self-service models driven by technology platforms like ours, organizations can give employees more control over their benefits, compensations and work-related tasks. This gives HR staff time to focus on other critical tasks, and employees have the power to manage their needs when and how they want.
All in all…
Human Resources solutions that benefit employees in all areas are increasing. The growing market includes solutions that promote employee commitment, diversify companies, rethink training, expand corporate welfare solutions and employ artificial intelligence to improve Human Resources operations. To create a prosperous, productive and committed work culture, companies need to recruit, hire and retain the best talent. And today, that talent is everyone and they are everywhere. After all, it is a market of candidates. For companies to attract and retain diverse and competitive talents, their investment in Human Resources solutions must increase, which will take the variety of Human Resources innovations to new limits in 2019 and beyond. If you feel like it, you can mention in the comments any other trends that you foresee in our sector!