HR T R E ND S A ND IS S U ES

INTRODUCTION

IN THE PAST, MANY PEOPLE WENT TO WORK FOR A CORPORATION WHEN THEY GRADUATED FROM HIGH SCHOOL OR COLLEGE—AND
RETIRED FROM THE SAME CORPORATION FORTY YEARS LATER WITH A PENSION. THEY WENT TO WORK IN THE MORNING AND DIDN’T
COMMUNICATE WITH THEIR FRIENDS OR FAMILY UNTIL THEY RETURNED HOME IN THE EVENING. MANY WERE UNION MEMBERS AND
RELIED ON UNION REPRESENTATIVES TO MANAGE THEIR CONTRACTS, WAGES, AND BENEFITS.

TODAY, THINGS HAVE CHANGED. PEOPLE CHANGE JOBS OFTEN, AND MANY PEOPLE WORK PART TIME. SOCIAL MEDIA HAS CHANGED THE
WAY WE COMMUNICATE DURING THE DAY, AND IT CAN EVEN CHANGE THE WAY WE SPEND OUR WORKING HOURS. LABOR UNIONS ARE ON
THE DECLINE, WHICH MEANS THAT INDIVIDUAL WORKERS ARE NOW WORKING OUT CONTRACTS WITH THEIR EMPLOYERS—SOMETIMES
WITH NEGATIVE CONSEQUENCES.
AS THE WORKPLACE CHANGES, MANAGERS MUST CHANGE TOO. SOMETIMES MANAGERS ARE CAUGHT IN THE MIDDLE, SEEING CHANGES
THAT NEGATIVELY AFFECT THEIR TEAM MEMBERS BUT HAVING NO ABILITY TO STOP THE CHANGES FROM HAPPENING.

CURRENT TRENDS IN HRM

1. GLOBALIZATION
2. TECHNOLOGY
3. MANAGING CHANGE
4. HUMAN CAPITAL
5. RESPONSIVENESS
6. COST CONTAINMENT
 GLOBALIZATION

--THE TREND TOWARD OPENING UP FOREIGN MARKETS TO INTERNATIONAL TRADE AND INVESTMENT.

• IMPACT OF GLOBALIZATION
•  PARTNERSHIPS WITH FOREIGN FIRMS
•  “ANYTHING, ANYWHERE, ANYTIME” MARKETS
•  IMPACT ON HRM

• DIFFERENT GEOGRAPHIES, CULTURES, LAWS, AND BUSINESS PRACTICES

•  ISSUES:
• IDENTIFYING CAPABLE EXPATRIATE MANAGERS.
• DEVELOPING FOREIGN CULTURE AND WORK PRACTICE TRAINING PROGRAMS.
• ADJUSTING COMPENSATION PLANS FOR OVERSEAS WORK.
 EMBRACING NEW TECHNOLOGY
--- USE OF TECHNOLOGY TO COMMUNICATE WITH EMPLOYEES
• COMPANY INTRANETS
• E-NEWSLETTERS
• COMPANY EMAILS
• A MOVE TOWARD SINGLE SOFTWARE PLATFORMS
• INTEGRATED HUMAN RESOURCE INFORMATION SYSTEM (HRIS)
-- IT IS A SYSTEM THAT LETS YOU KEEP TRACK OF ALL YOUR EMPLOYEES AND INFORMATION ABOUT THEM. IT
IS USUALLY DONE IN A DATABASE OR, MORE OFTEN, IN A SERIES OF INTER-RELATED DATABASES.

• BENEFITS:
•  STORE AND RETRIEVE OF LARGE QUANTITIES OF DATA.
•  COMBINE AND RECONFIGURE DATA TO CREATE NEW INFORMATION.
•  INSTITUTIONALIZATION OF ORGANIZATIONAL KNOWLEDGE.
•  EASIER COMMUNICATIONS.
•  LOWER ADMINISTRATIVE COSTS, INCREASE PRODUCTIVITY AND RESPONSE TIMES.
SPECIALIZED APPLICATIONS

•  SUCCESSION PLANNING
•  APPLICANT TRACKING
•  JOB EVALUATION
•  EMPLOYEE PERFORMANCE EVALUATION
•  GRIEVANCE HANDLING

• EVOLUTION OF NEW TECHNOLOGIES

• EMPLOYEE SELF-SERVICE AND DATA EXCHANGE

•  CAPABILITY TO MAINTAIN PERSONAL DATA
•  VIEW CONTEXT-SPECIFIC INFORMATION
•  INITIATE BENEFITS TRANSACTIONS
INTERNET-BASED TOOLS ARE QUICKLY BECOMING THE PREFERRED METHOD FOR EMPLOYEES TO EXECUTE BENEFITS TRANSACTIONS
• 1. INCREASED DIVERSITY IN THE WORKFORCE
•  CREATING WORKPLACE THAT RESPECTS AND INCLUDES DIFFERENCES. RECOGNIZING UNIQUE CONTRIBUTIONS
INDIVIDUALS WITH DIFFERENCES CAN MAKE. CREATING WORK ENVIRONMENT THAT MAXIMIZES POTENTIAL OF ALL
EMPLOYEES.

• 2. WORK-LIFE BALANCE
•  EMPLOYEES EXPERIENCING BURNOUT DUE TO OVERWORK AND INCREASED STRESS – IN NEARLY ALL OCCUPATIONS.
RISE IN WORKPLACE VIOLENCE, INCREASE IN LEVELS OF ABSENTEEISM AS WELL AS RISING WORKERS’ COMPENSATION
CLAIMS CAUSES RANGE FROM PERSONAL AMBITION AND THE PRESSURE OF FAMILY OBLIGATIONS TO THE
ACCELERATING PACE OF TECHNOLOGY ON WORK-LIFE BALANCE.

•  ACCORDING TO STUDY BY CENTER FOR WORK-LIFE POLICY, 1.7 MILLION PEOPLE CONSIDER THEIR JOBS AND WORK
HOURS EXCESSIVE 50% OF TOP CORPORATE EXECUTIVES LEAVING CURRENT POSITIONS 64% OF WORKERS FEEL
WORK PRESSURES ARE “SELF-INFLICTED”, AND TAKING A TOLL. IN THE US, 70%, AND GLOBALLY, 81%, SAY JOBS ARE
AFFECTING THEIR HEALTH BETWEEN 46% AND 59% OF WORKERS FEEL STRESS IS AFFECTING THEIR INTERPERSONAL
AND SEXUAL RELATIONSHIPS. MALES FEEL THERE IS STIGMA ASSOCIATED WITH SAYING “I CAN’T DO THIS”.
3. STRUCTURAL SHIFT FROM THE MANUFACTURING TO THE SERVICE SECTOR

•  GROWTH IN PART-TIME EMPLOYMENT

•  RISING PROMINENCE OF WOMEN IN THE WORKFORCE
•  GRADUAL AGING OF LABOR FORCE WITH FEWER YOUNG PEOPLE ENTERING
WORKFORCE AND PARTICIPATION RATES AMONG OLDER WORKERS INCREASING

•  GROWING IMPORTANCE OF TEMPORARY EMPLOYMENT AND SELF-EMPLOYMENT

•  ADOPTION OF FLEXIBLE WORKING PRACTICES, SUCH AS JOB SHARING AND THE
INCREASING OPPORTUNITY TO WORK FROM HOME.
 DEVELOPING HUMAN CAPITAL

HUMAN CAPITAL
• THE KNOWLEDGE, SKILLS, AND CAPABILITIES OF INDIVIDUALS THAT HAVE ECONOMIC VALUE TO AN ORGANIZATION.
•  VALUABLE BECAUSE CAPITAL:
• IS BASED ON COMPANY-SPECIFIC SKILLS.
• IS GAINED THROUGH LONG-TERM EXPERIENCE.
• CAN BE EXPANDED THROUGH DEVELOPMENT.

• 1. MANAGING TALENT – RECRUITMENT, DEVELOPMENT, AND RETENTION OF THE BEST WORKERS

•  EMPLOYERS NEED TO FIND INNOVATIVE WAYS TO “BRAND” THEMSELVES, SETTING THEM APART FROM COMPETITORS AND BECOMING
AN “EMPLOYER OF CHOICE” AS TALENT BECOMES SCARCE, DEVELOPMENT OF CURRENT EMPLOYEES FOR PROMOTIONAL OPPORTUNITIES.
2. LABOR SHORTAGE – FINDING THE RIGHT TALENT

• STATISTIC: BY 2020, GAP BETWEEN AVAILABLE AND REQUIRED SKILLED

WORKERS IS PROJECTED TO BE 14 MILLION

• USE OF E-RECRUITING AND NON-TRADITIONAL LABOR POOLS

• ESTABLISHING SELECTION SYSTEM GEARED TO RETENTION: BETTER SKILLS
ASSESSMENT, KNOWLEDGE, AND FIT FOR JOBS

3. HIGHER ETHICAL STANDARDS

• GREATER FOCUS ON TRUST AND INTEGRITY AT ALL LEVELS

Responding to the Market
 Total Quality Management

METHODS AND PROCESSES ARE DESIGNED TO MEET THE NEEDS OF INTERNAL AND EXTERNAL CUSTOMERS.

• EVERY EMPLOYEE IN THE ORGANIZATION RECEIVES TRAINING IN QUALITY.

• QUALITY IS DESIGNED INTO A PRODUCT OR SERVICE SO THAT ERRORS ARE PREVENTED
FROM OCCURRING.

• THE ORGANIZATION PROMOTES COOPERATION WITH STUDENTS, CLIENTS AND

CUSTOMERS TO IMPROVE QUALITY AND HOLD DOWN COSTS.

• MANAGERS MEASURE PROGRESS WITH FEEDBACK BASED ON DATA.

 COST CONTAINMENT

DOWNSIZING -- THE PLANNED ELIMINATION OF JOBS (“HEAD COUNT”).

• DOWNSIZING IS REDUCING THE NUMBER OF EMPLOYEES ON THE OPERATING PAYROLL. SOME USERS DISTINGUISH
DOWNSIZING FROM A LAYOFF, WITH DOWNSIZING INTENDED TO BE A PERMANENT DOWNSCALING AND A LAYOFF
INTENDED TO BE A TEMPORARY DOWNSCALING IN WHICH EMPLOYEES MAY LATER BE REHIRED. ORGANIZATIONS USE
SEVERAL TECHNIQUES IN DOWNSIZING, INCLUDING PROVIDING INCENTIVES TO TAKE EARLY RETIREMENT AND TRANSFER
TO SUBSIDIARY COMPANIES, BUT THE MOST COMMON TECHNIQUE IS TO SIMPLY TERMINATE THE EMPLOYMENT OF A
CERTAIN NUMBER OF PEOPLE.

OUTSOURCING -- CONTRACTING OUTSIDE THE ORGANIZATION TO HAVE WORK DONE THAT FORMERLY WAS DONE BY
INTERNAL EMPLOYEES.
• THE PRACTICE OF HAVING ANOTHER COMPANY (A VENDOR, THIRD-PARTY PROVIDER, OR CONSULTANT) PROVIDE
SERVICES.
 OUTSOURCING GIVES THE COMPANY ACCESS TO IN DEPTH EXPERTISE AND IS OFTEN MORE ECONOMICAL AS WELL.

EMPLOYEE LEASING -- THE PROCESS OF DISMISSING EMPLOYEES WHO ARE THEN HIRED BY A LEASING COMPANY (WHICH HANDLES
ALL HR-RELATED ACTIVITIES) AND CONTRACTING WITH THAT COMPANY TO LEASE BACK THE EMPLOYEE S
 ISSUES IN HRM

AN AGING WORKFORCE

• HR PROFESSIONALS WILL SPEND MUCH OF THEIR TIME ON CONCERNS RELATED TO RETIREMENT PLANNING,
RETRAINING OLDER WORKERS, AND MOTIVATING WORKERS WHOSE CAREERS HAVE REACHED A PLATEAU.
ORGANIZATIONS WILL STRUGGLE WITH WAYS TO CONTROL THE RISING COSTS OF HEALTH CARE AND OTHER
BENEFITS. MANY OF TOMORROW’S MANAGERS WILL SUPERVISE EMPLOYEES MUCH OLDER THAN THEMSELVES.
ORGANIZATIONS WILL HAVE TO FIND WAYS TO ATTRACT, RETAIN, AND PREPARE THE YOUTH LABOR
A DIVERSE WORKFORCE

• WORKPLACE DIVERSITY REFERS TO THE VARIETY OF DIFFERENCES BETWEEN PEOPLE IN AN ORGANIZATION.

THAT SOUNDS SIMPLE, BUT DIVERSITY ENCOMPASSES RACE, GENDER, ETHNIC GROUP, AGE, PERSONALITY,
COGNITIVE STYLE, TENURE, ORGANIZATIONAL FUNCTION, EDUCATION, BACKGROUND AND MORE. DIVERSITY
NOT ONLY INVOLVES HOW PEOPLE PERCEIVE THEMSELVES, BUT HOW THEY PERCEIVE OTHERS. THOSE
PERCEPTIONS AFFECT THEIR INTERACTIONS.
 BENEFITS OF WORKPLACE DIVERSITY:
AN ORGANIZATION'S SUCCESS AND COMPETITIVENESS DEPENDS UPON ITS ABILITY TO EMBRACE DIVERSITY AND REALIZE THE FOLLOWING
BENEFITS:

• INCREASED ADAPTABILITY  AND CUSTOMER DEMANDS. ORGANIZATIONS EMPLOYING A DIVERSE

WORKFORCE CAN SUPPLY A GREATER VARIETY OF SOLUTIONS TO PROBLEMS IN SERVICE, SOURCING, AND
ALLOCATION OF RESOURCES. EMPLOYEES FROM DIVERSE BACKGROUNDS BRING INDIVIDUAL TALENTS AND
EXPERIENCES IN SUGGESTING IDEAS THAT ARE FLEXIBLE IN ADAPTING TO FLUCTUATING MARKETS

• BROADER SERVICE RANGE  A DIVERSE COLLECTION OF SKILLS AND EXPERIENCES (E.G. LANGUAGES,
CULTURAL UNDERSTANDING) ALLOWS A COMPANY TO PROVIDE SERVICE TO CUSTOMERS ON A GLOBAL BASIS.

• VARIETY OF VIEWPOINTS  A DIVERSE WORKFORCE THAT FEELS COMFORTABLE COMMUNICATING

VARYING POINTS OF VIEW PROVIDES A LARGER POOL OF IDEAS AND EXPERIENCES. COMPANIES THAT
ENCOURAGE DIVERSITY IN THE WORKPLACE INSPIRE ALL OF THEIR EMPLOYEES TO PERFORM TO THEIR
HIGHEST ABILITY.

• MORE EFFECTIVE EXECUTION  COMPANIES THAT ENCOURAGE DIVERSITY IN THE WORKPLACE

INSPIRE ALL OF THEIR EMPLOYEES TO PERFORM TO THEIR HIGHEST ABILITY.
• COMMUNICATION  PERCEPTUAL, CULTURAL AND LANGUAGE BARRIERS NEED TO BE
OVERCOME FOR DIVERSITY PROGRAMS TO SUCCEED. INEFFECTIVE COMMUNICATION
OF KEY OBJECTIVES RESULTS IN CONFUSION, LACK OF TEAMWORK, AND LOW MORALE.

• RESISTANCE TO CHANGE . THERE ARE ALWAYS EMPLOYEES WHO WILL REFUSE TO ACCEPT
THE FACT THAT THE SOCIAL AND CULTURAL MAKEUP OF THEIR WORKPLACE IS
CHANGING. THE "WE'VE ALWAYS DONE IT THIS WAY" MENTALITY SILENCES NEW IDEAS
AND INHIBITS PROGRESS

• IMPLEMENTATION OF DIVERSITY IN THE WORKPLACE POLICIES  THIS CAN BE THE OVERRIDING

CHALLENGE TO ALL DIVERSITY ADVOCATES. ARMED WITH THE RESULTS OF EMPLOYEE
ASSESSMENTS AND RESEARCH DATA, THEY MUST BUILD AND IMPLEMENT A
CUSTOMIZED STRATEGY TO MAXIMIZE THE EFFECTS OF DIVERSITY IN THE WORKPLACE
FOR THEIR PARTICULAR ORGANIZATION.
SKILL DEFICIENCIES OF THE WORKFORCE

TODAY, EMPLOYERS ARE LOOKING FOR:

• MATHEMATICAL SKILLS
• VERBAL SKILLS
• INTERPERSONAL SKILLS
• COMPUTER SKILLS
 THE GAP BETWEEN SKILLS NEEDED AND SKILLS AVAILABLE HAS DECREASED COMPANIES’ ABILITY TO
COMPETE.
 THEY SOMETIMES LACK THE CAPACITY TO UPGRADE TECHNOLOGY, REORGANIZE WORK, AND EMPOWER
EMPLOYEES.
 SOCIAL ISSUES AND HRM

• CHANGING DEMOGRAPHICS
• DEMOGRAPHIC CHANGE DESCRIBES A POPULATION'S AGE STRUCTURE ADJUSTING TO CHANGES IN LIVING CONDITIONS.
CONSEQUENTLY, CHANGES IN THE COMPOSITION OF A SOCIETY'S AGE STRUCTURE ARE THE RESULT OF SOCIAL SHIFTS

SHRINKING POOL OF ENTRY-LEVEL WORKERS

PRODUCTIVITY
INDIVIDUAL DIFFERENCES
RETIREMENT BENEFITS
SOCIAL SECURITY CONTRIBUTIONS
SKILLS DEVELOPMENT
USE OF TEMPORARY EMPLOYEES
EMPLOYER/EMPLOYEE CONCERNS
• JOB AS AN ENTITLEMENT
• RIGHT TO WORK
• WHISTLE-BLOWING
• EMPLOYMENT AT WILL
• AIDS
• COMPARABLE WORTH
• CONCERN FOR PRIVACY
• MANDATED BENEFITS
 ATTITUDES TOWARDS WORK AND FAMILY
• DAY CARE
• FLEXI-TIME
• JOB SHARING
• ALTERNATIVE WORK SCHEDULES
• ELDER CARE
• JOB ROTATION
• PARENTAL LEAVE
• TELECOMMUTING
HR TRENDS IN 2021: FUTURE OF HUMAN RESOURCE
MANAGEMENT

THE LAST DECADE BROUGHT AN AVALANCHE OF CHANGE TO THE HR INDUSTRY. THE RISE OF ARTIFICIAL
INTELLIGENCE. THE GROWTH OF THE GIG ECONOMY. THE INCREASED PUSH TOWARDS GREATER DIVERSITY.
AND, MOST RECENTLY, A GLOBAL PANDEMIC THAT HAS ALTERED THE REALITY OF MILLIONS AND REDEFINED
WHERE AND HOW WORK GETS DONE. THAT BEGS THE QUESTION, WHAT’S IN STORE FOR THE FUTURE OF THE
INDUSTRY? WE WILL LOOK AHEAD FOR A GLIMPSE OF WHICH HR TRENDS WILL CONTINUE TO DRIVE
TRANSFORMATION AND WHICH NEW TRENDS ARE EMERGING TO SHAPE THE FUTURE OF WORK.
KEY TAKEAWAYS
• NEARLY 60% OF EMPLOYEES WANT TO WORK REMOTE FULL-TIME AFTER THE PANDEMIC, ACCORDING TO
ONE SURVEY.

• TECHNOLOGY ADOPTION AND DEPLOYMENT IS A PRIORITY AS COMPANIES SEEK TO UNIFY DISPERSED,

DIGITAL-FIRST WORKFORCES.

• TWO-THIRDS OF EMPLOYEES VALUE WHEN THEIR FEEDBACK IS HEARD AND ACTED ON.
• IN THE FACE OF MENTAL HEALTH ADVERSITY, COMPANIES RESPOND BY PROVIDING RESOURCES, CUTTING
COSTS AND TAKING OTHER MEASURES TO SUPPORT WELL-BEING.

• DATA WILL BE THE NEW CURRENCY AND A CORE PART OF HOW HR OPERATES IN THE COMING YEARS.
• ENSURING EMPLOYEES HAVE THE SKILLS THEY NEED IS A TOP PRIORITY AMONG BUSINESS LEADERS.
TRENDS WE’LL LOOK AT:
• VIRTUAL WORK IS HERE TO STAY
• COMPANIES DOUBLE DOWN ON DIGITAL
• TEAMS PLAY AN ESSENTIAL ROLE
• HR DESIGN IS A STRATEGIC FOCUS
• EMPLOYEE EXPERIENCE IS REDEFINED
• HR DELIVERS VALUE THROUGH AN OUTSIDE/IN APPROACH
• MENTAL HEALTH GETS THE ATTENTION IT DESERVES
• DATA BECOMES THE NEW CURRENCY
• WORKERS ARE EQUIPPED WITH THE SKILLS AND TOOLS THEY NEED TO NAVIGATE UNCERTAINTY
• HR OFFERS GUIDANCE TO DRIVE SUCCESS
• COMPANIES SHOW THEIR TRUE COLORS