There are trends that show shifts within the HR landscape. For example, Generative AI in HR simplifies talent acquisition, employee engagement, and workforce management. It enables the customization of job descriptions and the use of virtual assistants to address common HR inquiries. As a result, HR professionals are actively integrating generative AI into their practices. Likewise, in the next seven to twelve months, HR departments should foresee the top HR trends that are currently picking-up throughout the industry.
1. Improved support for remote and hybrid work
Demand for remote and hybrid work arrangements will increase throughout 2024 as they meet the diverse needs of employees. These arrangements offer cost benefits to businesses by reducing utility, office and other overhead costs. They also allow employees to achieve a better work-life balance, reduce commuting and increase job satisfaction, which can be beneficial in recruiting and retaining qualified workers. Major companies such as Ford, Microsoft and Amazon have adopted hybrid work models that have reduced overhead and office space.
81% of work will be hybrid by 2024, according to AT&T research. A permanent hybrid-work model is being actively implemented by most organizations, or they are thinking about adopting it, to secure their position in the future of human resources.
Well-known expert Mark Mortensen emphasizes that ‘the crucial element for successful teamwork lies in understanding employees' diverse needs and fostering a harmonious work atmosphere. Approximately half of US companies permitted remote work during the pandemic, and despite some offices reopening, 83% of businesses believe that HR departments need to digitize tasks such as processing, scheduling, inviting and conducting interviews to accommodate remote and hybrid workforces.’
Moreover, the hiring of workers for remote positions has encouraged more businesses to use the freelance sector to meet short-term demands.
2. People Analytics
71% of HR executives who use people analytics feel it's critical to their organization's HR strategy, according to SHRM research.
People analytics, according to a Forbes article, are, A gathering of information about employee’s performance and human resources inside a company. However, this process also transforms data into relevant and actionable insights that HR and PA professionals can utilize to improve employee satisfaction and business performance’.
The study impacting business value, leading companies in people analytics highlights the primary areas where people analytics provide value.
Diversity and Inclusion: To obtain a practical grasp of employee emotions and evaluate improvements in employee welfare, psychological security, inclusiveness, and fairness.
Employee Experience: Using data to improve understanding of the organization and enhance employee well-being.
Retention: For data on competitive trends, the labour market, risk variables with predictive models, and more.
Workforce Planning: Managing current expenses while projecting and preparing for skills and labour costs.
3. Increased Focus on Employee Well-Being
In recent years, there has been a notable increase in the focus on the welfare of employees – a justified trend. A recent article in Forbes revealed that 40% of American workers feel that their job hurts their mental well-being, and 76% have encountered burnout in the workplace.
Burnout is more than a minor inconvenience. It can negatively impact productivity by raising worker absences and turnover rates, which can cost firms 15% to 20% of payroll. Voluntary turnover is the main cause of these increases. Therefore, a high level of burnout is the first indication that structural changes need to be made across the business instead of just with specific employees. The theory of "The Healthy Organization" has developed in response to these issues. This comprehensive approach lays a strong emphasis on creating a healthy work environment, mental and physical health, social wellness, and financial security.
A healthy organization's framework includes the following elements: -
Workplace security,
Social and mental well-being,
Equitable finances,
Community service, and
A health-conscious culture
It's safe to argue that making your business healthier will improve employee satisfaction, productivity, and retention rates. Systemic changes are needed to avoid emotional burnout, and the transition to a healthy organization is expected to increase productivity and retention rates.
4. Diversity, Equity and Inclusion (DEI):
Diversity, Equity and Inclusion continues to be important in talent acquisition and internal mobility strategies. The improvement of employee engagement and retention is crucial. Creating inclusive workplaces where everyone feels important is an obligation of HR professionals. DE&I funding is increasing, with 79% of companies planning to increase their DEI budget by 2022. The investment in funding and cultivating leaders is equally significant in achieving meaningful cultural change within DE&I. According to the report, only 13% of senior managers actively support DEI initiatives, indicating that more DEI leaders are needed to train and implement changes in work culture and behavior.
According to a recent Forbes article, companies can use the following metrics to improve DEI:
Contract with Analytics
Selection Guidelines
Participation Criteria
Daily Performance Metrics
Progression and Compensation Metrics and Retention
Employee Resource Groups, or ERGs, support a diverse workforce, providing essential support to multiple groups. As per research, these networks offer a platform for individuals of colour, working parents, women, veterans, LGBT staff, persons with disabilities, and others to establish connections and guarantee that their productivity is acknowledged and encouraged in the workplace. Supervising AI systems is a tiny element of guaranteeing diversity and inclusion in the modern workplace.
Ask yourself, what steps can you take as a professional to minimize biases and foster diversity?
5. Using AI to improve HR:
HR professionals are increasingly using generative AI to improve workforce management, employee engagement and talent recruitment. This advanced tool helps create custom job descriptions, create virtual assistants and address common HR questions, resulting in more customized job descriptions and delegating routine HR tasks to virtual assistants. "According to McKinsey's latest report, this artificial intelligence can help companies process the large number of job applications they receive and provide more personalized information about candidates and potential options." Furthermore, firms are using generative AI in HR to create virtual assistants or interactive chatbots that can provide answers to common HR questions quickly and allow HR professionals to focus on more strategic work. With all the excitement, it is not unexpected that the value of generative AI in HR is predicted to reach approximately $1,669.3 million by 2032.
In Conclusion:
Due to the changing HR landscape, companies must be flexible and adaptable. To stay ahead, they must regularly monitor the mental well-being of employees, provide training and career opportunities, promote daily virtual interactions for remote workers, and effectively engage employees. The integration of artificial intelligence into talent management, recruitment and predictive analytics promises new and exciting developments in HR. Through these trends and proactive planning, organizations can ensure their continued success in the ever-changing HR landscape.
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