HR is a progressive and dynamic space. The professionals in the field are continually trying to evolve with an ever-changing internal and external environment. They keep going back to the board to deliver higher efficiency to their organisations and better quality of services to their employees. To this effect; research, surveys and data are the anchors that guide most of their decisions.
HR Exchange Network is one such institution that regularly conducts surveys and publishes reports. In a recent study of about 800,000 HR professionals, they found some crucial insights about the market and the HR function at large.
The study focused on two things – the current state of HR and the future of HR. Here is what they discovered.
The State of HR
HR has come a long way, from being a transactional function to the one that is crucial to achieving organisational success. Consequently, the challenges of the department are quite distinct from what they used to be. With a strategic focus in tow, here are the main focus areas of the HR function.
Company culture (17%) – A majority of the respondents said that company culture is a principal concern for 2020. More and more job seekers are looking for a healthy, ethical and empowering work environment. They want to be challenged at work, offered new opportunities and want to be upskilled.
A survey by Jobvite had found that 46% of candidates considered the culture to be important for making job-related decisions. About 15% of them had declined job offers in the past due to cultural reasons. With company review websites, it is easy for candidates to get such information before accepting job offers.
Labour shortage and employees skill gap (12% and 11% respectively) – These are the concerns that are giving the C-suite executives sleepless nights. Populations are ageing at a global level as the baby boomers are nearing the retirement age. Moreover, the technologies are changing so swiftly that it is becoming challenging to find the right skills in the market.
A survey by Manpower Group found that 45% of employers are grappling with finding the right talent globally. Organisations will have to think of new strategic initiatives to fulfil their workforce demands. They will have to adopt a new approach of building, buying, bridging and borrowing to fill this gap.
Retaining top talent (11%) – When an employee leaves, the after effects are manifold. Depending upon the profile, it may impact the continuity of a crucial project. Moreover, it is an expensive affair to fill a new position. As per SHRM, the average cost of hiring an employee is $4,425 and may take more than a month. Besides, as employees leave, the culture also gets impacted.
HR efficacy (9%) – As CHROs occupy a place in the boardroom discussions, it has become all the more crucial for the function to deliver as per the expectations. The C-suite executives are looking up to the department for supporting their strategies for achieving organizational success. The function will gear up to launch new initiatives backed with data for higher productivity and efficiency.
Future of HR
The survey By HR Exchange Network also investigated the new competencies, that the HR function believes, are emerging.
Innovative thinking (19%) – There is no better competitive advantage than an innovative and creative product. As organisations continue to work on offering new products and achieving higher efficiency, they will need a workforce inclined to support their cause.
Technology knowledge (16%) – Artificial intelligence and machine learning are changing the game like never before. With the help of HR tools powered by them, organisations are automating manual tasks and achieving more comprehensive insights. However, they will need employees who have a technological bent of mind and can quickly come on board with these new solutions.
Multigenerational organisational skills (15%) – With generation Z as the new entrants to the workforce, organisations are seeing a complex mix of multiple generations. Leaders will have to tread the path cautiously to maintain harmony at the workplace and encourage their teams to perform better.
Analytical Skills (13%) – In this data-driven world, analytical skills will become crucial for almost all the roles. As organisations try to cultivate a data-first culture, they will hire employees who can easily work with data to deduce crucial information and insights.