2010 vs. 2020: 5 Trends That Changed HR in the Last Decade
As we embark on a new decade, it’s the perfect time to look back at some of the key movements and trends of the 2010s. In this article, we share our round-up of the five ways in which HR has changed in 2020 vs. 2010.
This has been an exciting ten years for HR professionals around the world. As we entered 2010, we were in the middle of a global recession, and the labor store was generally discontent. Since then, the picture has changed dramatically, and we now see a largely candidate-centric hiring market.
It was also the decade when HR technology went mainstream, outside the ambit of large organizations that could afford homegrown solutions. Software-as-a-Service (SaaS) became the technology deployment norm in the last decade, making the benefits of data analytics and process automation widely accessible.
Today, we look at some of the key trends that transformed HR operations between 2010 and 2020. We recognize that this is a vast landscape, so we have tried to focus on the most impactful and memorable trends out there.
Learn More: 6 Trends Transforming Human Resource Management
5 Radical Shifts in HR and Working Models
The HR landscape in 2010 vs. 2020 looks vastly different – and improved. Here are the five most significant transformations that impacted how employees work and HR designs workplace experiences.
1. Telecommuting took on a new, larger dimension
Telecommuting as a concept has been around for several decades, but it was formalized in 2010. That was the year when President Barack Obama signed H.R. 1722, the Telework Enhancement Act, encouraging the government to strengthen its policies and infrastructure to support remote working.
But it was still a nascent trend – a Microsoft report from 2010 found that less than half of U.S. employers support remote working arrangements. Fast forward to 2020, and remote working is the “new normal.” 42% of U.S. workers spend at least 60% of their time working remotely, notes Microsoft. And this has significant implications for HR.
From advanced collaboration tools to new engagement solutions, HR now relies heavily on digital technology to connect a distributed workforce.
2. We went from performance appraisals to continuous performance management
This is among the most critical trends HR witnessed in the last decade. Traditionally, performance management was linked to annual appraisals, and feedback was mainly gathered from the direct reporting manager, to be audited by HR.
Audit of performance readings by HR was the No. 1 method to differentiate and measure performance, according to the 2010 Study on the State of Performance Management by WorldatWork. But over the next ten years, performance management became intrinsically linked to short-term business outcomes and real-time feedback.
Again, this was aided by advancements in HR technology that allowed regular data capturing, analysis in line with business key performance indicators (KPIs), and feedback collection from multiple stakeholders. Today, agile performance management is almost the industry standard (just like McKinsey predicted in 2016).
3. Falling unemployment rates led to greater candidate-centricity
In 2010, the world was reeling from the global recession and unemployment rates were extremely high. The International Labor Organization (ILO) noted how global unemployment reached its highest level on record in 2009.
Gradually, over the next few years, the economy recovered and trends like the technology boom added new jobs. For instance, unemployment in the U.S. went from 9.6% in 2010 to 3.9% in 2018. So, what does this mean for HR?
First, there is a definite war for top-tier talent, and companies who provide a superior candidate experience will gain an edge. This also places additional importance on employer branding and recruitment marketing, a model where HR looks at candidates like consumers. Finally, fresh retention strategies, such as using AI to identify flight-risk employees, are also imperative so companies can hold onto their star performers.
4. The nuances of diversity and inclusion (D&I) in the workplace were acknowledged
D&I has been an essential theme in HR since the 1990s, but in the last decade, we have crossed several key milestones. The #MeToo movement brought to light discriminatory conditions in the workplace and the need to have formalized harassment reporting tools in place. This is a significant leap from 2010 when NPR.org reported that diversity efforts were uneven across U.S. companies.
Today, conversations around diversity include gender minorities, ethnic groups, persons with disabilities, different sexual orientations, previously incarcerated individuals, and a variety of other demographics. Acknowledging these nuances was among the significant trends HR saw between 2010 and 2020.
It was also during this time that male allies were given importance and other forms of ally movements – like Straight for Equality – gained momentum. Workplace policies such as the use of gender pronouns and gendered language in job posts are now more conscious and D&I-friendly.
5. Data-driven HR came of age
2010 was a landmark year for data-driven HR, with SuccessFactors acquiring analytics company InfoHRM. In the following year, SAP acquired SuccessFactors to form one of the leading solution suites available for HR today.
Analytics now has a pervasive influence across HR functions, from recruitment to workforce planning, from benefits administration to diversity and inclusion. Technologies like self-service analytics have democratized access to data insights like never before.
At the same time, analytics models have become more sophisticated, going beyond the historical analytics models of the 2000s. HR can leverage predictive analytics for accurate forecasting, prescriptive analytics for automated recommendations, and real-time analytics for in-the-moment decision-making.
In 2019, the Harvard Business Review found that HR is among the top-most analytics-driven functions ahead of finance and general operations management.
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What’s Next in the 2020s?
This is, by no means, an exhaustive list. These five trends offer a glimpse into the ever-evolving world of HR, which has adapted as working models changed globally. As we welcome another decade of innovation and new ideas, HR is poised to be a strategic partner to business transformation.
This, perhaps, is the biggest change observed in 2020 vs. 2010.
HR is no longer considered to be an administrative function only, tasked with payroll, employee records, and regulatory compliance. HR professionals play a vital role in a company’s market reputation as well as business growth. Distributed workforces, agile performance management, candidate-centricity, a nuanced diversity footprint, and data-driven decisions are the essential elements to maximize HR’s new potential.
What is the most significant change you have seen in HR in 2020 vs. 2010? Tell us on Facebook, LinkedIn, or Twitter. We’d love to hear your insights!