What Does Modern HR Look Like in 2023?
Human resources management constantly takes on new trends as innovative technology and challenges enter the business world. In this article, we present what modern HR looks like today and the latest HR news that all human resources professionals need to know about.
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Major Trends in HR
As HR leaders face a historic amount of disruption, time efficiency and productivity of well-thought HR strategy is at its essence. Modern HR is influenced by multiple factors, including the entrance of a new workforce and the consequences of an abrupt shift to remote work. As HR technology continues to develop, modern HR also has software at its core. HR personnel is battling to adopt more HR solutions while learning how to use the technology most efficiently.
Below, we will discuss 5 outstanding topics in modern HR:
- Clean Data
- Business Process Automation
- Remote Working
- Adaptation to Gen Z
- Enhancing Productivity
1. Clean Data
Data cleaning has become a key element in HR analytics as clean data is essential for HR professionals to make accurate, data-driven decisions. HR software is useless unless it provides accurate reports with relevant HR metrics.
What is Clean Data?
Clean data refers to a dataset that is valid, accurate, consistent, and complete. On the other hand, dirty data refers to a dataset that has incorrect, corrupted, duplicated, or incomplete data. As HR teams use different management software to record separate data, there has been an emphasis on using clean data within human resources management. This is especially true for multinational companies that collect data in different countries.
Data Cleaning Process
The data-cleaning process can be divided into two parts: data validity and data reliability. Questions to be asked within the HR department to ensure data validity and reliability include:
- Is the data evenly collected throughout the organization?
- Are there any biases in our data measuring or analysis?
- Does the data correspond to what we want to measure?
- Do we get the same outcome if we measure the same thing multiple times?
- Are we following the instructions for data collection each time?
2. Business Process Automation
More human resource solutions have been adapted to automate HR functions, including onboarding, talent acquisition, compensation and benefits, employee training, and more. Automation software has several benefits such as time efficiency, decreased operational costs, and increased productivity.
Artificial intelligence (AI) is becoming more prominent in the business world and the same applies to HR management. Many companies have already adopted AI for parts of their core human resource practices. For example, AI is already assisting recruiters in finding top talent during the hiring process by scanning candidates’ resumes and filtering them based on qualifications.
AI can also be used to improve your people analytics as transactional workforce data can predict employee potential and other critical factors in the employee experience. The data collected by AI can be used by HR executives to improve the employee experience and reduce turnover.
Chatbots and digital assistants take employee assistance to the next level. HR chatbots, or digital assistants, are virtual assistants that represents your company’s HR support. AI technology makes it possible to assist your employees with any HR request 24/7.
3. Remote Working
One of the most dramatic HR trends that developed already in 2020 is remote working. A few years back, remote working was typically unheard of. When the pandemic struck, companies were forced to adapt overnight to a new society and ways of doing business. Some people predicted that remote working was only temporary, however, the effect is still lingering as it is associated with improved employee experience and workplace flexibility. Today, many companies offer it as a part of their strategic HR to gain a competitive advantage during recruitment. Remote work now seems to be an organizational development and is here to stay.
Utilization of Systems
To adapt to the online work environment, companies started utilizing new cloud-based management systems. More HR systems are offered both as a web application on a computer and as a mobile application, to support the flexibility of people that are working on the go.
With work being performed mainly online, it has also affected the way organizations communicate, both internally and externally. More meetings are held online on communication platforms rather than in person. Employees have been forced to learn how to communicate efficiently online. We have seen a shift from less conversation via email and more casual and simplified communication online, such as in chatrooms or text messaging. With online communication, new HR issues arise such as how to get virtual employee engagement.
4. Adaptation to Gen Z
Generation Z, members that are born between 1997-2012, has entered the workforce which will affect human resource management. The post-millennial generation is known to value a work-life balance and transparent communication. Gen Z is also known for having a strong knowledge and curiosity for technology, being the first generation that has grown up with constant access to the internet.
Gen Z is known for being a generation that values a workplace that promotes flexibility and well-being. They are more likely to pick a job where the organizational goals align with their personal values. They also seek an employer that can provide them with opportunities for personal growth and employee development. To adapt, companies can offer a clear path of learning and development during the recruitment process, for example, by providing clear examples of a recurring performance evaluation and benchmarking at the workplace.
Fast and Open Communication
Generation Z also values workplace transparency and appreciates fast and open communication. They are used to communicate with images and multitask across multiple screens simultaneously. All HR managers and supervisors should communicate with honesty and integrity with transparency in focus. For example, more workplaces are adopting a culture of pay transparency.
Being the first generation to enter the workforce that has grown up with technology, HR technology is expected to have an even more prominent place in the workplace. The number of human resource systems is expected to continue to grow, including several systems for payroll, administrative tasks, workforce management, training and development, and more. More HR solutions to manage for each HR professional will lead to new human resource issues, including how to manage several solutions across different information systems.
5. Enhancing Productivity
Productivity has long been a goal of any HR team. With the increased use of automation software and a shift to a remote working model, the view on productivity has changed.
The 4 Day Work Week
With several countries and major companies adopting the 4-day work week, HR departments are forced to maximize their employee performance and productivity so their employees can produce the same outcomes in fewer working hours.
Software to Collect Data
Automation of HR systems helps reduce the workload and administrative tasks of employees and HR teams. HR software can be used to measure employee productivity, including a remote workforce. Managers have been forced to oversee their HR strategies and shift the focus to increase the productivity of a remote workforce.
For example, many companies are moving away from traditional practices of work life, such as physical paperwork. Cloud-based management systems streamline the collaboration of remote colleagues, such as online documents and signing.
The 5 most outstanding topics in modern HR are the importance of clean data, adopting business process automation, continuing remote working, adapting to Generation Z entering the workforce, and enhancing productivity. HR technology is a core in all the topics, as human resource solutions continue evolving. To reach business success, HR professionals need to learn how to use their management solutions most efficiently, including producing clean data and automating business processes.