7 Trends That Will Shape the Future of HR
The future of HR is rapidly changing with rapid digital transformation and a shift in workforce demographics. What are the top trends in 2020 that will impact the future of HR? We share insights from leading analysts and commentators in this space.
2020 is set to be an exciting year for HR. The oldest Gen-Zer turns 23, ready to join the global workforce. Digital transformation has gained fresh momentum, with small businesses and large enterprises alike looking to gain from digital HR tools.
So, what are the top trends in 2020 that will impact HR? Let’s consider the views of industry leaders and their predictions for the road ahead.
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7 Key Trends That Will Determine the Future of HR
In 2020, HR will reimagine strategies and deliver superior experiences to both candidates and existing employees. And technology will play a more prominent role in achieving this – let’s delve deeper with insights from seasoned HR leaders and industry analysts.
1. A shift in workforce demographics calls for a new future of HR, says Deloitte
“The future of the workforce will see the length of careers increasing to as much as 50 years. At the same time, the half-life of skills has diminished to between 2 and 5.5 years,” note Deloitte’s Arthur H. Mazor, principal, human capital and Michael Stephan, U.S. human capital national managing partner.
They add that “There was the rapid rise of the open talent economy with more than 40 percent of the workforce estimated to be contingent by 2020.”
HR must become incredibly flexible to adapt to this dynamic landscape. Personalized learning delivered through mobile devices can help employees keep up with changing skill requirements. Further, tools to govern the remote workforce – without hampering engagement or productivity will be critical to the future of HR. And as we learn that the gig workforce is here to stay, HR will have to develop skills to manage this diverse workforce, learning additionally how to choose the best technology to handle such a workforce.
2. The 2020 election and political debates will introduce new HR issues, says Gartner
“Throughout 2020, the average employee will spend more than 110 hours, or more than 30 minutes per day, talking about and being distracted by what is happening with the election,” mentions Brian Kropp, distinguished vice president, HR research at Gartner.
What is concerning is that “The cumulative effect of these distractions will be a total amount of wasted time equal to $30 million for a company of 5,000 employees in 2020,” adds Kropp.
HR will need to create specific policies to talk about politics at work. Encourage conversations will be vital, as will be listening to the voice of the employee, without room for conflict or distraction. Productivity will need to be managed by using collaboration tools that offer an engaging, interactive platform for work – reducing distractions while also inspiring creativity.
3. HR leaders will confront a strategic “overconfidence,” says McKinsey
“A recent survey of 500 managers in the U.K., part of a research project we conducted in collaboration with the Confederation of British Industry (CBI), suggests that CEOs and HR leaders may be taking a rose-tinted view [of their talent- and people-development strategies,” writes McKinsey’s Tera Allas, director of research and economics, Louis Chambers, consultant, and Tom Welchman, associate partner.
“When respondents admitted difficulty in implementing some of the practices, they tended to identify management as the biggest impediment,” they add.
So, how can HR ensure that best practices and on-ground execution are in sync? The answer lies in a) clear communication, and b) advanced analytics. Active collaboration between HR and the C-suite will be essential to the future of HR. Also, HR analytics dashboards will help to assign key performance indicators (KPIs) to every best practice and monitor the performance of each KPI in real-time.
4. HR will need to double down on compliance, says myHR Partner’s Tina Hamilton
“Regulations have changed more in the past 10 years than in the previous 50. It’s critical to understand that regulations are changing at all levels of government–federal, state and local,” says Tina Hamilton, founder, and CEO of myHR Partner.
Fair labor standards, medical marijuana, sexual harassment, and pay equity will be the four regulations critical to the future of HR. Add to that concerns about data privacy and governments’ efforts to regularize the gig economy.
To keep pace with a highly complex regulatory environment, HR needs cutting-edge compliance software, as well as specialized tools for employee data privacy and security. Compliance will be a key theme in every HR function, from recruitment to diversity and workforce planning. For instance, tools for reporting harassment in the workplace will be a must-have for positive employee experiences in 2020.
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5. HR and IT will collaborate to revolutionize employee experiences, says ServiceNow’s Sunita Khatri
“HR executives know firsthand that it’s impossible to deliver amazing employee experiences in a vacuum: it demands collaborative effort across the company. As Helen Keller once said, ‘Alone we can do so little; together we can do so much,’ writes Sunita Khatri, product marketing leader for ServiceNow’s HR and employee experience solutions.
Khatri asserts that HR will not be able to deliver a digital employee experience with IT’s support and cooperation.
The first step towards closer collaboration is a co-owned decision-making process for technology investments. One can also predict digital platforms that integrate IT and HR self-service. To digitally empower the HR of the future, CHROs and CIOs must collaborate to maximize the value of their people assets.
6. Tech giants from outside HR will join the marketplace, says Josh Bersin
“Microsoft (LinkedIn and Glint), Google (Google Jobs), IBM (Watson branded products), Salesforce (Trailhead), Facebook (Workplace) and ServiceNow (service automation and employee experience) have all jumped into this [human resources] market,” notes HR guru and expert, Josh Bersin.
He adds that “These are multi-billion dollar vendors, all positioning themselves to compete with the incumbents Oracle, Workday, SuccessFactors, ADP, and everyone else,”
In Q3 of 2019 alone, global investments in HR technology stood at a massive $964 million, with four deals crossing $100 million each. Evidently, the future of HR will be characterized by these robust technology vendors as they scale new frontiers in tech disruption. Some of the key technologies poised to go mainstream in 2020 include blockchain and extended reality, among others.
7. Employee experience will be correlated to business outcomes, says Kronos’ Joyce Maroney
“Strong economies, lower birth rates, skills gaps, and Boomer retirements make it challenging for organizations to meet their talent acquisition and retention goals, Joyce Maroney, executive director for the Workforce Institute at Kronos, tells us in an exclusive interview.
“As a result, there are more investments in making employees experience a competitive advantage,” she continues. “It isn’t just about ping-pong tables and higher wages. It’s about creating the culture that supports your business moving forward, investing in those elements that are most important to employees.”
To keep up with this demand, traditional employee engagement tools will be reimagined to fulfill the requirements of an “employee experience platform.” Josh Bersin named this as a new HR tech category last year – 2020 could be when the large-scale implementation of employee experience platforms transforms business outcomes.
Learn More: 5 Ways Technology is Transforming the Employee Experience
8. Cognitive diversity will dominate the future workplace, says Nabil Sabet, Group Director at M Moser Associates
Speaking exclusively to HR Technologist, Sabet says, “In an age where innovation is prized above all else, embracing diversity, specifically neurodiversity, is paramount. Simply put, people who learn and think differently bring different skills and different solutions to the table. However, neurodivergent individuals are often impeded from contributing fully to the modern workforce by the very design of contemporary workspaces.”
Workspace design will take centerstage to accommodate a variety of individuals in the workforce, primarily individuals with disabilities. A neurodiverse workforce can be accommodated with changes in the workspace, as recommended by Sabet. He recommends creating micro-environments, “some designed for quiet focus, some designed for socialization.” Additionally, he suggests limiting digital distractions through Slack and email and promoting “social acceptance and understanding of the spectrum of neurodiversity by holding educational seminars.”
Takeaways on the Future of HR: Tips on the Way Forward
Expectedly, HR must relook at their current approaches and existing skill sets to succeed in 2020.
From adapting to new workforce demographics to balancing political debates, soft skills will be essential for the new-age HR professional. At the same time, hard skills such as data literacy, compliance software management, and intelligent technology selection in a crowded vendor landscape will be critical.
Maroney shares four tips for HR professionals to prepare for the future of HR:
1. “Start by examining the current state and asking ‘Do we have the people competencies we need to deliver on our corporate strategies?’”
With the widening skills gap and the shortage of people to fill them, HR must begin focusing on upskilling and reskilling the workforce to ensure they have the talent to perform their corporate strategies.
2. “Benchmark yourselves to success stories in your industry to help identify your gaps. Incorporate employee feedback into your planning efforts.”
This may involve everything from employees’ dissatisfaction with benefits to their own opinions on employee activism or the technology they are given to do their jobs.
3. “Draft a plan and be patient. It may take several years to deploy your improvement efforts.”
There is a massive gap between a vision and implementing it, as we saw earlier how getting buy-in from company leaders for HR technologies and programs is challenging.
4. “Be prepared for continuous refinement that will be needed as the world outside continues to change.”
Continuous improvement is essential in a time of rapid technological changes. If the half-life of any skill has reduced significantly, it is safe to assume that we’ll have to be prepared for upcoming changes faster than we can implement the new skills we learn.
Keeping these four tips in mind, people managers today can prepare for a dynamic and exciting future of HR. These seven trends are just the beginning – as the year unfolds, it is sure to bring more insights, predictions, and commentaries from recognized leaders in this space. Stay tuned as we look ahead and help you to stay ahead!
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