11 HR Trends Every CHRO Should Know
The way an organization work, where it works, who they work with, why they work, and the technologies they use are all constantly changing as the years pass by. Changes in HR trends crept into the workplace before the pandemic, were accelerated by it, and are now permanent fixtures.
Nearly every industry in 2021 has been influenced by The Great Resignation, and the human resources management industry and its HR trends are no different. Many HR leaders today are at a turning point: how can we find, keep, and retain the talented people we need to thrive?
To keep employees engaged in the workplaces, HR departments intend to capitalize on emerging HR trends including the digital revolution, mental health and employee welfare, people analytics, and workplace flexibility and they’ll be managing that on probably a smaller human resource management budget.
Workplace Trends Every Organization Should Know
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What will CHROs focus on in the upcoming years?
Beginning of early 2021 in the wake of the COVID-19 pandemic, we saw one of the biggest and most differentiated HR trends in a long time. Employees voluntarily left their positions in large numbers, a phenomenon known as “The Great Resignation.” The most often reported reasons for leaving a job are income stagnation despite rising living expenses, little chances for career progression, hostile work environments, a lack of perks, rigid policies regarding remote work, and persistent job discontent.
It was observed that employees recognized well-being benefits as a critical element in determining whether to apply for a new job, despite the fact that increasing wages is one strategy for luring and keeping workers. Financial well-being and emotional well-being are the two employee well-being benefits that are in high demand. For workers across generations, financial training and education are becoming more important.
In order to overcome the losses that the great resignation has impact, CHROS should focus on certain key aspects to enable success in their business. They are as follows:
- Developing vital abilities and competencies
- Designing organizations and managing change
- The bench of current and upcoming leaders
- Future employment
- Diversity, equity, and inclusion (DEI)
The success of the firm as a whole depends on these priorities for the human resources department. Executing business transformation should be a crucial process and major focus is driven towards achieving operational excellency.
Post-pandemic, developing a truly hybrid workplace has been on the top list for every HR professional. In order to recruit top talent, businesses must provide more flexible work schedules to their staffing. This involves implementing a workforce model in which workers alternate between on-site and remote work and have more freedom over how, when, and where they do their tasks.
What are the key HR trends for CHROs post-pandemic?
To keep employees engaged, HR departments intend to capitalize on emerging HR trends including the digital revolution, mental health and employee welfare, people analytics, and workplace flexibility. Let’s look at some of the HR trends every CHRO should know about.
1. Employee well-being
The state of the employee’s health is no longer a benefit. Instead, the opportunity to support people in all facets of their personal and professional life is presented by well-being today. The emphasis on employee well-being has switched from maximizing corporate advantages to enriching the experiences of individuals in their personal and domestic lives.
Employee well-being is now categorized into 5 key aspects:
- Financial well-being: Emphasis is given to compensation, education, and retirement plans.
- Mental health: Mental health applications and private sessions with a mental health coach are incorporated
- Social well-being: Importance is given to employee work-life balance and company culture.
- Physical well-being: physical fitness, personal training provided in between work hours, and health insurance cover physical well-being.
- Workplace well-being: monthly feedback, private tutoring and mentoring, access to training and development.
2. Hybrid work
While some workers may enjoy working in an office, more people have found over the past two years that working from home in a digital workplace makes them happier and more productive. Lack of this kind of flexibility will have a significant negative effect on our capacity in recruiting, retaining, and engage talent. Companies returning to the office have been met with employee backlash in the media; it is obvious that our staff members believe they are more effective without a ride, forced engagement with colleagues, and cubicle walls.
3. Development of new skills
Degrees have shown to be a poor substitute for having in-demand skills, so being able to demonstrate one’s expertise in these new talents has become the foundation for talent mobility.
Skills-based hiring and qualifications needed for a job instead of only looking at a candidate’s credentials are being tested by more businesses. By offering internal employees training courses for industries and job activities, skills-based recruiting not only increases the potential talent pool but also gives them greater exposure to their career mobility.
Longer than it does now, the length of time a person spent in a given position counted. When someone frequently changed jobs, this was known as “job hopping,” and recruiting managers would be alarmed if they noticed this pattern in a résumé. Since it demonstrates sound decision-making abilities, job longevity looks good on a résumé. Long-term employees are more likely to have done their homework, given the situation significant consideration, and made an informed decision on the job and the company’s fit. The reliability and commitment are demonstrated with job longevity. It should be mentioned that millennials tend to have shorter longevity than generations before.
Optimizing learning and development at work is crucial since both employees and companies are experiencing constant change as a result of continuing digital transformation.
It is crucial to consider the benefits of upskilling:
- Employees with the most essential skill set, including both hard and soft talents, can influence organizational success as business models evolve and technology becomes more prominent.
- The most qualified applicants will invariably gravitate toward organizations that provide benefits for upskilling and reskilling. Therefore, providing learning opportunities can help employers stand out in the marketplace.
6. Change to a culture that puts people first
Businesses prioritizing their move toward a mentality that puts people first is one of the key trends we’ll observe. Every new generation that enters the workplace brings with it a new set of best practices that change how we see workplace culture, employee engagement, and other factors. One of the most important things we must do as a company as a whole continues to change is to design meaningful workplace experiences that offer genuine value in order to give our direct, face-to-face encounters significance.
7. Give social media and brand recognition top priority
Brand recognition and social media frequently go hand in hand. Never before has human resources been so closely entwined with corporate branding efforts and how they impact staff members, prospective hires, and the organization as a whole. Although sales and marketing have long worked hand in hand, HR is now also involved. The sensitivity surrounding social media must constantly be front and center for the entire organization since it is here to stay. The influence of social media and marketing on business is spreading like a new world order, reaching far and wide.
8. Provision of Child Care Benefits
The majority of individuals cannot find or afford childcare, despite the fact that it is essential for working parents and the economy. Decreased worker attendance and productivity, this has a direct impact on businesses. Childcare costs have increased more than twice as quickly as inflation, which has led some parents, particularly women, to leave their jobs. Unless businesses help working parents, this will only become worse. Offering childcare benefits is one of the largest HR trends because it has been shown to yield the greatest return on human capital. Parents benefit greatly from this, and businesses gain a competitive edge.
9. Introduce DEI into the workplace
Performative DEI work is one of the major HR trends the human resources industry is dealing with. Organizations are increasingly attentively listening to the voice of diversity, equity, inclusion, and belonging instead of reacting in a knee-jerk manner as they once did in the face of workplace prejudice. If firms are to expect a long turnover of current and potential employees, DEI must run through every aspect of their operations.
10. Retention of good employees
It requires dedication from organizations and executives on many levels to figure out how to keep your finest personnel. Organizations need to create procedures and structures to provide employees with more regular career advancement opportunities than in the past. Building cultures that are committed to skill development and steady career advancement is a crucial component of a winning approach. Instead of solely relying on annual merit-based reward systems to recognize hard performance, employers should think about implementing automatic career advancement and/or financial incentives for achieving output, quality, and tenure targets in younger employees.
HR departments may make the Great Resignation into the Great Opportunity by using adaptable workplace solutions. Digital platforms will be crucial for sharing a variety of tales, gathering insightful people analytics, and facilitating automation tools that will speed up, ease, and greatly increase the efficiency of internal operations. Additionally, these technological advancements will improve interactions between front-line staff members and their employers. The fundamental human need to feel connected and fulfilled will continue to be a top priority for all HR directors, regardless of how much HR technology is incorporated into our day-to-day work lives.
What are the main actions for HR to incorporate these HR trends?
In order to be personally effective and guide their HR teams to success, CHROs and the HR managers of an organization must prioritize their own time and attention on the HR trends.
In light of the top HR goals, CHROs will concentrate on:
- Utilizing human-centric design to provide adaptable experiences, facilitate purposeful collaboration, and promote empathy-based management will aid in the development of a hybrid work model.
- Apply a more flexible strategy to handle changing skill requirements.
- By reevaluating workforce assistance options to promote worker health rather than merely performance, you may promote long-term workforce resilience.
- Establishing leaders in your organizations with corresponding DEI accountability will hasten the achievement of DEI objectives.
- Increase the influence on the board by focusing on CHRO-driven key differences in board performance.
- Organize the HR department to meet its objectives of operational efficiency, customer centricity, and agility.
The future of work is constantly changing and trends come and go and influences the way we perceive work and our working conditions. This article concludes 11 HR trends every CHRO should know, whether it’s encouraging close integration in the new phase of work, enabling greater career experiences, creating intrinsic marketplaces to relieve the pressure caused by a talent shortage, owning restructuring, or delivering integrated and purpose-driven organizations to provide equal and fair benefits, HR will be a part of the solution and will remain at the forefront of all significant business challenges of the upcoming years.
Companies will stagnate without being actively engaged, forward-thinking HR department that stays on top of HR trends. In order to provide even more value to their company’s bottom lines in the future years, HR professionals must build on their achievements in the present and push the envelope of what is feasible.