Today’s economy, innovation of technology and the new generation of employees are forcing HR departments to develop new ways of working with other skills and specialism. Complaints about HR Managers focusing too much on the administrative part and lack strategic vision are not new. However, HR is in the loop when companies are facing labor related issues, like reorganisation, recruitment or problems with employees. At times when the organisation is up and running, management and/ or employees could or might tend to think: Where is HR and what are they doing for us?
The visibility of the HR department is key in this economy. The HR partner has to show to the management team insights on customer satisfaction, continuous improvement initiatives leading to more business results, reducing costs and getting profit.
Preparation for the new generation
By 2020, 50% of the workforce will be Generation Y! The new generation entering the workforce have characteristics that require innovative and vibrant leadership. Attracting, motivating and retaining talent has always been difficult, but doing so with the Millennials, their work characteristics poses new challenges: salary and title are not as important to them as they are to previous generations.
The new generation wants to be fulfilled by making a meaningful impact. They want to work in an organisation that invests in development and the current 9 to 5 approach of is not that much inspiring for the Millennials as the generation prefers to work as freelancer. HR should take the lead and make the business aware that they have to change their environment to attract the new generation.
To deal with the current market, business needs and the future of the economy; HR should be prepared of trends of what’s coming their way.
The Future of HR
The HR generalist will disappear
The new HR partner has to have the ability to think and act like an entrepreneur; having skills to be a full strategic partner. Besides being an entrepreneur HR should have a new way of engaging with employees, as this can only be done to eliminate the “ administrative part’ of the job and to train HR in entrepreneurial skills. HR Professionals have to understand HR implications but also business operations models and strategy. Strategic planning, draft business cases and projections, are essential tools to prove the value of HR to the business and employees. The HR generalist will disappear, as companies will be in need of HR specialists.
HR utilizing metrics, analytics and data
HR professionals need to be prepared to use more data and analytics to show their value to the management. Metrics as of turnover rates or hiring results will still be valid however more data is required e.g. tracking of productivity, programs/ initiatives that will have impact and tracking filters/ mechanism to get the best candidate out of the big pool. HR professionals will have to deal with more analysis and data tracking and need to have the skills to analyse, predict and work with data and tools.
HR Outsourcing of common administrative tasks
Due to the innovation in technology nowadays, more and more administrative transactional activities could be outsourced to HR agencies and experts. The HR department has to innovate also in more self-service tools for employees, as this will free up time for HR to act as entrepreneur and strategic partner.
HR as Employee & Business partner in a remote environment
The new generation employee is looking for inspiration, innovation and leadership in companies. That means that working from home (remote work) will be the new standard. Companies have to prepare activities to make their environment attractive in order to persuasive the new generation of working for them as they are now more into working as freelancer. HR has to tackle this challenge as HR matters need to be clear in a productive company environment where employees working in and outside the office. HR and the business have be trained in “how to manage and motivate remote teams”.
HR professionals have to identify their speciality and expertise as the HR environment will change in the upcoming years. To become a HR specialist it is key to build a network and learn more about entrepreneurship, business, data, analytics and strategic leadership. This approach will lead to the best way of engaging with the business and employees as HR professionals are investing in their own development to serve in the best way for all Human Resources in the company.
In case you would like to know more about tools how to prepare your HR department, please contact me.