The advancement of technology has been a major driving force behind many changes in the business world over the past few decades, and this is especially true when it comes to human capital management (HCM). Increasingly, businesses are turning to digital solutions to better manage their people strategies, from recruitment and onboarding to performance assessment and succession planning. In 2021, organizations will continue to focus on key trends that will allow them to maximize the potential of their human capital.
Key Trends in Human Capital Management:
a. Technology, Automation, and AI:
Organizations are increasingly investing in technologies such as automation, artificial intelligence (AI), robotic process automation (RPA), and machine learning (ML) to help them manage their people strategies. These technologies can be used to streamline HR processes, automate recruitment and onboarding processes, provide real-time feedback through employee surveys and analytics tools, and even provide personalized coaching for employees.
b. The Growing Importance of Data Analytics:
As technology advances, data has become a critical resource for organizations looking to optimize their HCM strategies. Employers can use data analytics to gain insights into employee performance, engagement, and development needs. This information can be used to create more effective HR strategies and ensure that employees are getting the support they need to succeed.
c. Reimagining the Role of HR:
With the increasing availability of technology, many businesses have started to rethink what HR should look like in their organizations. For example, instead of relying on traditional methods such as job postings and resumes, companies are now turning to automated recruitment tools to identify and hire top talent. Similarly, HR teams are increasingly exploring how technologies such as AI can help them customize training programs for employees and provide personalized coaching experiences.
d. Embracing Flexible Working Arrangements:
The global pandemic has made it clear that flexible working arrangements can be beneficial for both employers and employees. Many businesses are leveraging technology to enable remote work, allowing their employees to work from anywhere at any time. This is not only beneficial for employee morale, but it can also lead to increased productivity and cost savings for employers.
e. Employee Engagement Strategies:
With the growing availability of data analytics, companies are now able to better understand their employees’ needs and preferences in order to design more effective engagement strategies. Employers can use this information to create personalized reward systems, offer targeted job opportunities, or implement well-being programs that are tailored to individual needs.
The future of HCM looks increasingly digital as organizations invest in technologies such as automation, AI, and data analytics to help them better manage their people strategies. Companies are also exploring ways to reimagine the role of HR and embrace flexible working arrangements to improve employee engagement and productivity. All of these trends will be crucial in helping organizations maximize the potential of their human capital.
A recent Global Human Capital Trends survey conducted by Deloitte polled 10,000 business and HR leaders in 105 countries, representing every industry. The survey data was further complemented by interviews with executives from some of today’s top organizations.
The survey revealed key insights into the changing nature of work, such as the emergence of boundaryless organizations, the importance of prioritizing human outcomes, and the need for leaders to reframe their strategies to stay competitive in a rapidly evolving marketplace.
The survey also explored how companies are adapting their models and practices to create more sustainable work environments and elevate the quality of work for both employers and employees. The survey has been used to inform the development of a new set of fundamentals to help organizations be more successful in a boundaryless world.
The Deloitte Global Human Capital Trends survey provides valuable insight into the changing nature of work and its impact on organizations, employees, and their wider ecosystems. Organizations must prioritize human outcomes, reframe strategies to stay competitive in a rapidly evolving marketplace and adapt models and practices to create more sustainable work environments. The development of a new set of fundamentals for success in the boundaryless world will help organizations achieve success in this ever-changing landscape.
A comprehensive understanding of the changing nature of work and its implications for employers, employees, and their wider ecosystems is essential for organizations to remain competitive in today’s boundaryless world. The data provided by the Deloitte Global Human Capital Trends survey can serve as a valuable resource for businesses seeking to enhance their ability to thrive in this rapidly evolving landscape.
Ultimately, organizations must strive to create a culture of inclusion and respect where people are seen as the greatest asset. Embracing flexible working arrangements, rethinking their human capital strategies, and investing in data analytics can help employers ensure that they have the right talent mix for success in a boundaryless world. With the right approach, today’s businesses can maximize the potential of their human capital and stay ahead of the competition.