Over the last two years, the Human Resources (HR) function has faced several unique and contextual challenges. On the one hand, companies have had to lay off thousands of professionals as a cost-cutting measure.
On the other hand, phenomena like The Great Resignation have seen thousands of professionals quit their full-time jobs to pursue alternate paths. The shift to remote work has been a disruptive force, but it has also enabled businesses to sustain their operations in challenging times.
These factors have collectively nudged the HR function to evolve and face challenges head-on. Here’s a look at three key trends reshaping HR as we know it.
1) HR is Moving to the Cloud
Automation has touched every industry and function, and the reality is no different for HR. This revolution was already underway even before the pandemic.
However, the shift to remote work around the world accelerated the pace at which HR teams embraced the use of technology to streamline and scale their operations.
Today, an HR team can leverage a single, unified digital platform to automate several functions. New stakeholders within the ecosystem – from fresh recruits to clients – can be onboarded and inducted without geographical limitations.
For instance, HR onboarding solutions now enable new joiners to be inducted remotely. They can receive adequate handholding support and be ready for work from Week 1.
Besides HR onboarding solutions, new upskilling and training programs can be rolled out, and interactive webinars by in-house and external industry leaders can be hosted with ease.
Another phenomenal advantage of HRTech is its ability to capture and organize large amounts of raw, unfiltered data into high-value data points.
The analytics capabilities of HRtech platforms enable the creation of valuable insights, which serve as fodder to help HR teams get a realistic understanding of what is working.
Insights can highlight a whole new bunch of findings. By looking at the number, HR teams can gauge the effectiveness of training programs, the success of communication campaigns, and receptivity to new updates.
HRTech is bringing scalability, accountability, and transparency into the workplace ecosystem and has the potential to build a strong foundation for sustainable businesses.
2) Hybrid Workplaces are Here to Stay
The shift to remote work gave the world a glimpse of how workplaces can function in radically different ways.
The potential to increase cost savings by eliminating rental, utility, and housekeeping costs has pushed businesses to reimagine their team configurations.
Hybrid models, however, do not only comprise on-site and full-time remote work operations. Companies are also considering contractual hiring for support roles or specific projects or processes.
Contract workers do not receive the same benefits as full-time employees, yet, the needs of those who cannot undertake full-time employment are fulfilled. Thus, companies that can map contractual needs well can create a win-win situation for the company and its contractual staffers.
The same can be said for gig workers, who prefer performing roles across knowledge-based functions such as consulting, communication, and tech due to the flexibility it offers them.
The digital nomad opportunity was considered an outlier lifestyle before the pandemic. Today, it has gone mainstream, and companies are also becoming more comfortable working with high-quality gig workers who add value and have the potential to build high-trust collaborations with businesses.
The key to successful hybrid workplaces is to be able to design the right model for the business based on its real-time needs.
Getting the tech stack right, investing in nurturing trust and psychological safety, fostering connection as opposed to merely communication, and clearly defining expectations are some aspects businesses will need to pay close attention to.
Lower overheads, greater diversity and inclusion, and higher productivity are some of its by-products.
3) Retention is as Important as Hiring
Technology has accelerated the pace at which new products must go to market. Yet, attrition is one of the biggest challenges that get in the way of ongoing projects. The Indian IT industry is battling attrition rates as high as 25%, according to experts.
In any organization, seasoned employees become the gatekeepers of culture, knowledge, and productivity. They lend stability, especially during times of crisis, and can mentor fresh recruits with a unique perspective.
On the other hand, attrition is a disruptive force that stalls the continuity of projects and processes. Consistently having new faces at the table can negatively impact the morale of team members, not to mention delay the ability of teams to take products to market with stealth.
While HR teams can continue to identify and close new hires, the bigger challenge is to create an environment that encourages team members to stay on. Attrition reduction is becoming a top goal for businesses today, and HR teams are looking at it with a multi-pronged approach.
One reason for this shift is that the expectations of professionals have radically shifted in a pre-pandemic world. The raw experiences of COVID-19 have nudged more professionals to review aspects like mental well-being, psychological safety, health, family benefits, and access to flexibility, besides the monetary and growth benefits of their jobs.
Hence, businesses must take a closer look at the overall value proposition they are offering their employees and whether it is in line with new-age values.
Companies that do not pay close attention to these factors will continue to lose employees. This trend translates to a drain on company finances. It impairs a company’s ability to build a robust, sustainable, highly profitable business.
With more and more businesses opting to go the hybrid way, teams need to stay connected on a deeper level. This is where a combination of technology and a commitment to building inter-connectedness within companies by HR teams can transform the growth trajectory of businesses.
Kytes’ robust communication platform helps bring efficiency with seamlines HR onboarding solutions, training framework, compliance procedures, event packages, and job placement management systems.
Partner with Kytes to foster connection and higher value for team members, clients, and other stakeholders and elevate the influence of the HR function in business success.