IHRM Trends and Future Challenges
Some insights to look upon for the HR Management Trends year 2017 are:
1. Alteration in the rules of Overtime:
The rule is proposed to raise the minimum level of salary for the white collar exemptions. Which could result in currently working 4.6 million exempt employees losing their exemption instantly. Rest of the 500,000 to one million exempt employees working currently could lose their status of exempt in the next ten years. This is due to the automatic increase in the threshold level of the salary.
2. Increment in the utilization of data and analytic tools:
In the present the crucial factor of managing and recognizing the competitive situations related to business lifecycle is able with the collection, processing and analyzing of big data. To gain the increasing competitive edge the companies must use analytics to gain data-driven insights into the workforce trends and engage to achieve refine recruitment, performance incentives, and compensation to arrange the evolving interests and goals of the employees. At this instant data can be pulled from a firm’s HR tech systems. Predictive algorithms are used and applied to make decisions to hire and manage the workforce. With this, the productivity could be increased and turnover could be decreased which is seen as a big win.
The greater focus on a significant tech trend is at the master data hr management trends. The analytics have seen a tremendous growth in the last few years but the master data management was not present. With being aware of analytics power the companies have also understood the need for standardization of data. Data cannot be rolled up and analytics cannot be performed if everyone does things differently.
3. Requirement of integrated workforce management system:
For establishments with or more than 50 full time or equivalent employees an Act has transformed which was once an annual enrollment event into the process of reporting and tracking the extensive data on a monthly basis. To meet the terms of the law various workers in Finance, Tax, Legal, IT and HR who didn’t share data may now need to incorporate to help avoid expensive penalties. It will be a challenge to gather the required data from the multiple systems. Owing to this it will become more significant that a business considers an integrated management solution for human capital. Changing the tech support models in the HR organization would be a great help.
The HR could take it to greater level with the support of IT and Tech support. Employers still use separate payroll, benefits administration and HR systems for management and applicant tracking which might be appropriate for some organization but there is some disadvantages and integration seems difficult. The employers are choosing single system for several work. Moving to single vendor who could provide all areas of HR technology solution in a single integration.
4. Priority- Engagement of the employee:
Gradually most of the firms are focusing on driving better performance by improving the engagement of the employee. According to the research by Gallup the establishment’s success financially such as profitability, productivity and customer engagement is strongly connected to employee engagement which leads to essential outcome from business. The midsized companies require revenue, growth and innovation to thrive which could be derived from the engaged employees. According to a study, the larger midsized companies with 150 to 999 employees quoted three talent related reasons to find out the decline in the growth. Out of which 23 percent were the disengaged employees, 18 percent were employees unable to attract qualified talent and 17 percent were the employee unable to retain key talent.
Organizations big concern in the last few years is to find and keep the great talent. Employees with the ability to perform with technology would help in development of the workforce. Organizations look for methods to engage different employee demographics due to shifting workforces. Engaged employee with knowledge of Technology could be a great help. Integrated systems to stand-alone systems there are various solutions available to match the requirements of the talent in a company.
5. More Millennial:
While much of the workforce in the organization consists of the retiring generation Z on the other end the growth of millennial workforce is indicated. According to a research approximately, half of the global workforce would be Millennia’s by 20202. While in some companies, the majority is already millennial. The organization that wants to hold and attract fresh talent would have to recruit the unit of digital natives. As this generation is a tech trend it is also important to ensure that their journey right from the hiring phase to on-boarding is supported on social and mobile platforms.
6. Merging of Business:
As for the HR trend of the year the Merging of the business would continue and the situation will continue to stay challenging for most of the industries. More and more challenges will be raising for the organization with Generation y on one hand and affectivity and effectiveness of the HR paired with analytics on the other hand. Becoming the most attractive employer for the future workforce would not be easy.
7. Remaking performance reviews:
The hr management trends performance review is to better understanding of changes that needs to be done to improve the ability to perform. The most trending topic is remaking performance reviews which include dropping rate of performance several companies have already implemented this tactic. Some are directing it in their firm. While few are abolishing individual bonus. Many of the companies in some time have done interesting things to improve their performance.
8. Development in the human side of the business:
In the present vibrant business setting most organization have the ability to flourish but are instead struggling since they don’t tap into their complete potential or empower people. The success was driven by structure, process and encouraging employees to function like a machine. These approach needs to be changed the success in the future would need the industry to work more on the human side of the business. People have evolved to deal with uncertainty by the means of cooperation, collaboration and utilizing the conflicts in a productive manner. It is essential that business encourages their employee to grow mindsets equipped towards conversation, connection and experimentation. Curiosity is a must, we need to question constantly whether we are performing things simply as that is how it has been done always and acquire new perspective to recognize potential better solutions.
The clarity of role and accountability is maintained with the help of various departments and reporting lines. Apart from it, they also create artificial obstacles that block progress. Consolidating people into silos with similar skills and function supports the pattern that is needed to solve simple as well as complex problems. However, it discourages them from working with people from other department or separate from business. It does not inspire to have any kind of conversation that would help to solve the major issues that are faced currently. The perspective of viewing fear and failure needs to be redefined by the businesses. Most of us allow fear to control us. One could eliminate it by taking back the control and looking behind the curtains created by our fear that is enacted by ourselves. With more integration, fewer silos and risks success becomes quite easy.
9. Cloud remains in the projection:
Human Resource Management moving to the cloud is hardly new concept. However, it is still in its early stage of adaptation. Almost every major HR software dealer is offering or planning to offer its solution in the cloud form. Cloud computing provides faster updates, increased flexibility, innovation and decrease in the cost. The HR managers could be in relief who deal with the expense of upgrading the system each year and downtime. As it will now be done by the vendor automatically. Oracle, ADP, Workday, SAP, Ultimate Software and Info are included in the Core HR solutions on the cloud along with other solutions.
10. Going Mobile:
The using of the mobile app within Human Resource Management is still in its initial stage. However with the appearance of more cloud-based apps and SaaS approach, things are changing. The Millennial employees have great expectancy in this area. The growing use of mobile apps will ease the administrative burden on HR and will considerably develop the usage of self-service. People involved with digital means apply for jobs through the help of mobile devices. To attract the talents from Generation X the employer needs to offer hiring and valuable information for mobile devices. Vendors are stepping up with attractive interfaces and mobile games and improving the ease of use. More vendors will be witnessed taking out their system from the mobile version of their system to mobile apps because apps tend easy navigation, provide more functionality and are visually attractive. The Mobile apps are advantageous despite it apps pose major data privacy issues for eg: local laws can put serious restrictions on using mobile apps for employee data.
Understanding the working environment and contributing to the success of the organization is the main role of the HR Management Trends professional. Following the latest trends of the Human Resource management will help the organization to thrive amongst other competitive industries. Apart from following the trend, it is vital that significant changes in the method of Human resource management are modified from time to time. The modern up to date techniques will not only be beneficial but also will be less stressful. It aids in selecting the talented workforce for the business. Simply by following the significant HR Management Trends would help the organization to maintain their hold in the industry.
Operating human resources across geographic and cultural boundaries can often prove difficult for small-business owners and managers. Nonetheless, with the widespread use of technology, the ability to communicate with anyone around the world and access to new and varied markets, international HR issues are important to grasp.
Compliance and International HRM Issues
As businesses begin to expand into the global marketplace or as they hire employees from diverse geographic and cultural backgrounds, they may have to adapt to new labor laws and tax liabilities. Doing business in Europe, for example, will require the business to pay value added tax. Hiring employees who are non-naturalized US citizens might require HR to apply for work visas and report economic data to the federal government. Compliance with international law can be an issue for the under-educated business owner or HR manager, because these laws tend to be complex and sometimes difficult to implement. Keeping well-informed of the legal requirements for the business’s operations can help alleviate some of this complexity and lessen the chances of landing in legal trouble.
Scope of Human Resource Management
With an increasing number of busineses operating on an international scale, the impact of globalization on hr can be tricky to navigate. Globalization means various laws, cultures and norms have to be taken into consideration when onboarding and crafting HR regulations. Some countries are more forward thinking where gender is concerned than others, and this distinction can lead to misunderstandings or worse, the loss of key personnel. It really would not be that hard to have a male manager handle the day-to-day operations in an area where female managers are frowned upon, just in case. Understanding the mechanism that makes each culture tick and implementing as little or as much needed so create balance is something to strive for.
Cultural Diversity and Global HR Issues
A salient issue in international HR is understanding and maintaining cultural diversity. Working with people from different locations or from different cultural backgrounds mean adapting the business’s work style to new ideas, new ways of communicating and unfamiliar social practices. If you hire an employee from England, for example, the employee might have different ideas about how to manage employees or on how to run technology processes based on her experiences back home. Being open to new work styles and cultural differences is the hallmark of cultural diversity in HR.
Benefits and Compensation
Benefits and compensation are the backbone of any HR strategy, but in international HR, benefits and compensation are even more important in focusing on the work-life balance of employees. The idea behind work-life balance is to provide employees with programs and initiatives that improve both their personal and professional lives. This is considered part of international HR, because many multinational companies have already implemented programs such as flexible working time, paternity leave, extended holidays and on-site childcare. In fact, many nations around the world, including much of Europe, mandate these programs by law. Implementing them on the local scale is one of the challenges and, ultimately, rewards of international HR.
Training and Development
Related to the idea of benefits and compensation in international HR are training and professional development programs. Training programs typically encompass in-house seminars and meetings designed to give employees on-the-job knowledge of skills that are important to doing business globally. HR might offer language classes, for example. Professional development encompasses the “extra” training that HR provides to its employees, such as allowing them to attend networking events and conferences, global training seminars and other specific competency-based programs. Professional development helps employees to hone their skills in global marketing, international business development and finance trends.