The Future of HR: Predictions and Trends for the Next Decade

 

The Future of HR: Predictions and Trends for the Next Decade

 

Introduction

Human Resources (HR) has come a long way since the early days of employee record keeping and payroll management. In the current times, it is increasingly evolving into a strategic function that plays a vital role in driving organizational success. As we move towards the future, HR is poised to undergo significant changes as new technologies emerge, workforce demographics shift, and businesses adapt to changing market conditions.


 










AI and Automation


Artificial Intelligence (AI) and automation are already impacting the HR industry, and the trend is set to continue. AI can help HR professionals to automate repetitive and time-consuming tasks, such as resume screening and scheduling interviews. Automation can also help to reduce the risk of bias in recruitment, ensuring that hiring decisions are based on objective criteria.

















According to a report by Deloitte, 33% of organizations are already using AI and automation in their HR processes, and this number is expected to grow in the future. Another report by PwC predicts that by 2022, AI will be used in nearly all areas of HR, including talent acquisition, performance management, and employee engagement.

 

Data Analytics

As HR becomes more data-driven, the use of data analytics is set to increase. By analyzing data on employee performance, engagement, and satisfaction, HR professionals can identify areas for improvement and develop strategies to increase productivity and retention.

According to a report by IBM, 67% of organizations are already using analytics to measure employee engagement, and this number is expected to grow. Another report by Bersin by Deloitte predicts that the use of data analytics in HR will increase by 14% annually.

 

Remote Work

The COVID-19 pandemic has accelerated the trend towards remote work, and this trend is likely to continue in the future. Remote work has numerous benefits, including increased flexibility, reduced costs, and access to a wider pool of talent.

According to a report by McKinsey, 20-25% of the workforce could work remotely between 3-5 days a week without a decline in productivity. Another report by Gartner predicts that by 2025, 55% of the workforce will work remotely at least part of the time.













 


Employee Experience

Employee experience (EX) has become a key focus for HR professionals in recent years. EX encompasses all aspects of an employee's experience, including their interactions with their colleagues, their work environment, and their access to training and development opportunities.

According to a report by Deloitte, organizations that prioritize EX are four times more profitable than those that don't. Another report by Gartner predicts that by 2023, 40% of organizations will use EX as a key metric for measuring HR performance.

 

Diversity, Equity, and Inclusion

Diversity, equity, and inclusion (DEI) have become increasingly important in the workplace. DEI initiatives can help to create a more inclusive and equitable work environment, improving employee engagement, retention, and productivity.

According to a report by McKinsey, organizations in the top quartile for gender diversity are 25% more likely to have above-average profitability than organizations in the bottom quartile. Another report by Glassdoor found that 76% of employees and job seekers consider a company's DEI initiatives when deciding where to work.

 

Conclusion

HR is set to undergo significant changes in the next decade as new technologies emerge, workforce demographics shift, and businesses adapt to changing market conditions. AI and automation will help to automate repetitive and time-consuming tasks, while data analytics will allow HR professionals to identify areas for improvement and develop strategies to increase productivity and retention. Remote work will become increasingly common, and employee experience and diversity, equity, and inclusion will become key focuses for HR professionals.

As the role of HR continues to evolve, it will become increasingly strategic, and HR professionals will need to develop new skills and competencies to keep up with the changing landscape. They will need to be able to analyze data, work with new technologies, and develop strategies that align with the organization's goals and objectives.

In conclusion, the future of HR looks bright, and HR professionals who are willing to adapt to change and embrace new technologies and trends will be well-positioned to drive organizational success in the next decade and beyond. By focusing on AI and automation, data analytics, remote work, employee experience, and diversity, equity, and inclusion, HR can help to create a more productive, engaged, and diverse workforce that is better equipped to navigate the challenges of the future.

 

References

  1. Deloitte. (2020). 2020 Global Human Capital Trends. Retrieved from https://www2.deloitte.com/global/en/pages/human-capital/articles/human-capital-trends.html
  2. PwC. (2018). HR Technology Disruptions for 2019. Retrieved from https://www.pwc.com/us/en/services/consulting/library/hr-technology-disruptions-2019.html
  3. IBM. (2019). The Employee Experience Index. Retrieved from https://www.ibm.com/downloads/cas/YXQXQKMN
  4. Bersin by Deloitte. (2017). HR Technology Disruptions for 2018. Retrieved from https://www2.deloitte.com/us/en/pages/human-capital/articles/hr-technology-disruptions.html
  5. McKinsey & Company. (2020). The future of work after COVID-19. Retrieved from https://www.mckinsey.com/featured-insights/future-of-work/the-future-of-work-after-covid-19
  6. Gartner. (2020). Gartner HR Survey Reveals 88% of Organizations Have Encouraged or Required Employees to Work From Home Due to Coronavirus. Retrieved from https://www.gartner.com/en/newsroom/press-releases/2020-04-14-gartner-hr-survey-reveals-88--of-organizations-have
  7. Deloitte. (2019). From employee experience to human experience: Putting meaning back into work. Retrieved from https://www2.deloitte.com/us/en/insights/focus/human-capital-trends/2019/employee-experience-human-experience.html
  8. Gartner. (2019). 3 Key Predictions for the Future of HR. Retrieved from https://www.gartner.com/smarterwithgartner/3-key-predictions-for-the-future-of-hr/
  9. McKinsey & Company. (2019). Delivering Through Diversity. Retrieved from https://www.mckinsey.com/business-functions/organization/our-insights/delivering-through-diversity
  10. Glassdoor. (2021). Diversity and Inclusion Study. Retrieved from https://www.glassdoor.com/research/diversity-inclusion-study/

 

Comments

  1. Tharanga Wanigasundara19 April 2023 at 21:32

    The field of HR is constantly evolving, and there are several trends and predictions that are expected to shape the future of HR over the next decade. The future of HR is likely to be characterized by increased use of technology, a greater focus on employee experience and well-being, and a shift towards more inclusive and collaborative leadership styles. HR will need to adopt these trends in order to attract and retain top talent and ensure the success of their organizations in the coming decade.

    ReplyDelete
  2. Naveeka22 April 2023 at 01:17

    Agree. To stay relevant in the constantly shifting business environment, HR professionals must continually improve their skills and keep up with the most recent market trends. By doing this, they can effectively use data and technology to inform decisions that promote organizational success and growth.

    ReplyDelete
  3. Uthpala Ranasinghe22 April 2023 at 07:36

    Developing technologies, shifting work arrangements, and a greater emphasis on employee well-being, diversity, and inclusion are likely to affect the future of HR.

    ReplyDelete
  4. Asanka Devagiri22 April 2023 at 07:47

    With a rise in remote working, the new HR will need to adapt to a more diversified work environment. Training and development processes will become considerably more tailored and accessible via remote devices. Slack and Microsoft teams will be utilized to boost productivity and engagement. Nice article and well explained Arjuna !

    ReplyDelete
  5. Dhanushka Jayanath 22 April 2023 at 11:24

    Ideal Topic for future ,you have gathered the required information well,
    finally superb work.
    well done.

    ReplyDelete

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