HR has always been a tricky area for businesses to get right, and the speed at which the world is changing has only increased that challenge. To be successful, companies need to consider several factors, such as upgrading their processes and thinking about their social responsibilities.
With more employees now seeking hybrid or fully-remote working agreements, HR teams also increasingly have to deal with meeting people’s needs outside the office.
We’ll show you how the world of HR is changing, and identify five ways that you can future-proof your HR management.
HR has changed dramatically over the past five years and will continue to do so. One of the biggest trends is the growing emphasis on diversity and inclusion, and many employees want the companies they work for to focus on this. For example, research by Glassdoor revealed that: 71% of Black employees, 72% of Hispanic employees, and 58% of white employees said that their company should do more to increase diversity in their workforce.
Hiring diverse teams has several benefits, including improved engagement, better leadership, and solving problems more creatively.
HR teams face several changes to the hiring process. COVID-19 forced many employees to work remotely. While several companies have returned to the office, many workers still want some kind of hybrid agreement. Research by Gallup backs this up:
With more employees working from outside the office or even outside the country, HR departments need to change how they think about choosing the best-fitting candidates for job openings.
Technology plays a big role. Artificial intelligence (AI) has made an impact in recent years, and many businesses have used it to screen candidates and make faster and less biased decisions. Other forms of technology, such as performance management, have also evolved and are giving HR teams better insights into employee performance.
The consequences of not keeping up with changes in the HR space are significant. First, is the impact on your employees’ well-being.
Slack has performed multiple studies about workplace engagement throughout the COVID-19 era. In one of its most recent surveys, the communications platform asked employees about the impacts of location and schedule flexibility, or lack thereof.
In its research, Slack found that employees without flexible working hours were 1.4x more likely to burn out and 2.2x more likely to suffer from work-related stress and anxiety.
Talented employees who do not feel valued by their HR teams—and by extension, their companies—are less productive and more likely to look for roles elsewhere, where these needs are met.
Out-of-date hiring strategies bring challenges in onboarding the right talent for open positions. Manual processes are less efficient and effective. They also make a poor impression on prospective hires. Furthermore, when the onboarding process is also outdated, hires are likely to cut their losses and head elsewhere—resulting in wasted time and money.
HR management will never be easy. However, with the amount of technology available these days, teams have several opportunities to streamline their workflow and gain more information that will help them make better decisions.
With technology, HR teams can automate much of the hiring process—allowing them to focus on tasks that require deep work. Departments can monitor existing employees’ performance and make payroll easier, along with providing more of an interactive onboarding process.
Over the past couple of years, more companies have realized the importance of the human aspect in their businesses. Many executives and HR teams want to focus on and take action in this respect; research by McKinsey & Co. revealed that 90% of Chief HR Officers in Europe want to engage more directly and deeply with the people who work for them.
Focusing on people has several benefits. Employees will feel more valued, which in turn boosts happiness, supports productivity, and makes the company more attractive to top applicants.
Any company that wants long-term success must be agile in adopting new solutions. If your HR team fails to upgrade its processes, you’ll struggle to remain competitive and attract talented workers in the long run.
Several factors have an impact, including how you keep candidates updated during the interviewing process and your onboarding strategy. Moreover, you’ll have to consider your company culture and make tweaks as necessary.
Diversity and inclusion are crucial factors in building an effective team. A more diverse workforce has several benefits, including better problem-solving and decision-making, and improved innovation.
Your company culture should encourage an inclusive atmosphere, and you should consider people from all backgrounds when hiring for a role. Assess your parameters and be open to making changes, such as offering opportunities to talented employees who might not have a college degree.
Regulatory compliance is becoming increasingly important, and more governments are taking a stronger stance in areas like data protection. If you don’t comply, you risk taking a huge financial hit—regardless of whether you knew you were breaking the rules or not.
Compliance requirements should inform all decisions. Choose software that protects users’ data and adheres to data laws across the globe, and make sure you dispose of all information appropriately.
HR management is a tricky area to get right in your business, but it’s also crucial. The scene is changing at a significant pace, and your business needs to stay up to date to continue attracting and retaining talented employees.
When future-proofing your HR management, you’ll need the right expertise and technology to find and retain the best talent, and this includes implementing a focus on diversity, equity, and inclusion.
Underdog.io helps businesses find the best talent in the tech industry. Contact us to learn more.
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Dean Mathews is the founder and CEO of OnTheClock, an employee time tracking app that helps over 15,000 companies all around the world track time.
Dean has over 20 years of experience designing and developing business apps. He views software development as a form of art. If the artist creates a masterpiece, many people’s lives are touched and changed for the better.
When he is not perfecting time tracking, Dean enjoys expanding his faith, spending time with family and friends, and finding ways to make the world just a little better.
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