Outlook of HR in 2020 Decade

HR strategy is transitioning to a people - centric approach in 2020 decade ahead. - John Ingham

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Creating a people-centric HR strategy:

Strategic HR is not new but is still not understood well or would rather say is not executed well. Many people still consider HR being a support system in terms of functioning an organization. Even when HR plans strategy it is considered as lists of activities not more than that. And so, HR needs to be more effective in terms of strategic planning where people working for organizations need to put not just into commercial activities of business but at the centre of HR strategic plans. This would be a new lens of creating strategic value. Though being people-centric strategic is not a new either. However, the zeitgeist around this has strengthened considerably over the past 5 to 10 years. Let us delve deeper into the 10 signs of a shift towards people-centric HR strategy. 
  1. Design thinking
  2. Employee experience
  3. The digital workplace
  4. Workplace design 
  5. Community management
  6. Agility
  7. Self-organization
  8. Purpose and meaning
  9. Commitment to multiple stakeholders
  10. Humanocracy
HR needs to focus on to develop environments that are fit for people to do their work in. 

"Hire Character. Train Skill" - Peter Schutz


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Trends that changed HR in the last decades:

The five most significant transformations that impacted how employees work and HR designs workplace experiences.

1. Telecommuting: It is taken on a new larger dimension. This concept has been around for many       decades, but it was formalized in 2010. That was the year when President Barack Obama signed H.R. 1722, the Telework Enhancement Act, it was all with the purpose to encourage the government to strengthen its policies and infrastructure to support remote working. 
 
But it was still found that less than half of U.S. employers support remote working arrangements.           Fast forward to 2020, and remote working is the 'New Normal'. 
         
 From advanced collaboration tools to new solutions, HR now relies heavily on digital technology  
 to connect a distributed workforce. 

2. From Performance Appraisals to Continuous Performance Management: This trend is most critical one witnessed by HR last decade. Traditionally, Performance Management was linked to annual appraisals, and feedback was mainly gathered from the direct manager, to be audited by HR. 

But over the next 10 years, Performance Management became deeply linked to short-term business outcomes and real-time feedback. 

3. Falling unemployment rates led to greater candidate-centricity: In 2010, world was facing terrible recession and unemployment rate at its peak. Gradually, the technology boom added new jobs. A definite hunt for a top-tier talent also places an additional importance on employer branding and recruitment marketing. In this model, HR looks at candidates as consumers. Additionally, strategy like using AI to identify flight risk employees are also imperative that helps companies to hold on to their star performers. 

4. Acknowledgement of the diversity and inclusion in the workplace: This is essential in HR since 1990s, but in the last decade several key milestones are crossed. Today, conversations around diversity include gender minorities, ethnic groups, persons with disabilities, different sexual orientations, previously incarcerated individuals, and a variety of other demographics. Acknowledging these nuances was among the significant trends HR saw between 2010 and 2020. 

It was also during this time that male allies were given importance and other forms of ally movements – like Straight for Equality – gained momentum. Workplace policies such as the use of gender pronouns and gendered language in job posts are now more conscious and D&I-friendly.

5. Data driven HR came of age: 2010 was a landmark year for data-driven HR. In the following year, SAP received success factors to form one of the leading solution suites available for HR today. 

In 2019, the Harvard Business Review found that HR is among the top-most analytics-driven functions ahead of finance and general operations management. As we welcome another decade of innovation and new ideas, HR is poised to be a strategic partner to business transformation.

This, perhaps, is the biggest change observed in 2020 vs. 2010.

HR is no longer considered to be an administrative function only, tasked with payroll, employee records, and regulatory compliance. HR professionals play a vital role in a company’s market reputation as well as business growth. Distributed workforces, agile performance management, candidate-centricity, a nuanced diversity footprint, and data-driven decisions are the essential elements to maximize HR’s new potential.

The main responsibilities of HR:

  • Setting the foundation: Strategic planning and business alignment.
  • Meeting requirements: Legal, compliance, and administration. 
  • Growing the business: Workforce planning recruitment, and selection. 
  • Continuously improving: Employee onboarding, growth, and development. 
  • Maintaining a balance: Employee experience, relations, and performance.
  • Preparing for the future: DEIB, HR digital & new work models. 

HR Challenges in 2020 decade:

HR and people department face complex challenges, from HR transformation and integrating new people-centric technologies to changing workforce demographics and 
quitting to the increasing need for better work-life balance as employees seek organizations that commit to sustainability, diversity, and transparency. 

As these changes pave the way for the future of HR, HR teams face some inevitable challenges that can impact effective resource management and ultimately connect to business outcomes. In this article, we’ll explore the common and mission-critical HR challenges facing HR teams over the coming years and look at the best ways to overcome them.

Let us explore some challenges in closer look:
  • Attracting top talent.
  • Reskilling and upskilling
  • Building digital dexterity
  • Managing diversity, equity and inclusion (DEI)
  • Employee engagement
  • Employee retention
  • Leadership development
  • Employee health and well-being
  • Employee onboarding
  • New-hire training
  • Balancing remote, hybrid, and in-office work
  • Employee experience
  • Data-driven and decision making
  • Compensation benefits
  • Leveraging AI for greater efficiency and productivity.
  • Fostering employee- manager productivity.
  • Compliance with laws and regulations.
  • Redefining environmental, social, and governmental (ESG) programs.
  • Negative PR from people- related policies.  
To sum-up, effectively addressing HR challenges requires strategic planning, proactive measures, and innovative solutions to ensure the organization can attract, develop, engage, and retain talent while aligning with its broader goals and objectives.


Sources:

AIHR Academy to Innovate HR. URL: The 15 Essential HR Responsibilities in 2024 - AIHR. Accessed on: 18th September 2024.

HR Zone. URL: HR strategy in the 2020s: transitioning to a people-centric approach in the decade ahead - HRZone. Accessed on. 18th September 2024.

Image, URL: https://www.aihr.com/wp-content/uploads/hr-responsibilities-cover.png. Accessed on 18th September 2024.

Image, URL: https://hrzone.com/app/uploads/2019/11/erhui1979_5-1024x701.jpg. Accessed on 18th September 2024.

Spiceworks. URL: 2010 vs. 2020: 5 Trends That Changed HR in the Last Decade - Spiceworks. Accessed on 20th September 2024.

Whatfix blog for HR challenges. URL: Top 21 HR Challenges in 2024 (+Solutions) (whatfix.com) Accessed on 20th September 2024.


Blog by: Poonam Sharma



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