Modern markets change incredibly rapidly, and companies must adapt to stay relevant. The challenges that human resources (HR) departments face are constantly evolving, which makes it imperative that modern professionals stay abreast of industry trends. As we move forward into 2016, a number of new trends will demand the attention of HR professionals across the United States. Below are six of the most important trends for HR departments to be aware of in the coming year.
Increased use of data and analytics tools.
“Big data” has become a major buzzword in recent years, and it has now entered the HR sphere. Through the use of big data, HR departments can more effectively identify and manage the challenges they face by finding data-driven solutions. To gain a competitive edge, companies will be required to embrace powerful analytics software that provides insights on workforce trends.
This information can help refine recruitment and offer solutions to potential issues before they become real problems. Analytics can also provide key information about compensation and performance initiatives so that companies can more effectively keep pace with the changing goals and interests of employees.
More emphasis on employee engagement.
More companies are beginning to realize how much employee engagement drives performance. Recent Gallup research has affirmed a strong connection between employee engagement and business outcomes, as well as financial success. Ultimately, worker commitment has a bearing on corporate productivity and can drive both customer engagement and innovation.
An engaged employee has more incentive and motivation to go above and beyond normal duties and push the envelope. Also, the engaged employee feels more connected to the company’s success and will put forth the effort necessary to ensure that success. According to a recent study conducted by ADP, midsized businesses reported that the largest talent-related reason for declines in their growth were disengaged employees.
Shifts in policies toward the expectations of millennials.
As the Baby Boomer generation matures into retirement age, more millennials are entering the workforce. According to some estimates, millennials will comprise nearly half of the global workforce within four years. To account for this shift, HR departments will need to shift their policies to align with the concerns of younger workers, which differ from those of earlier generations.
At some companies, millennials already constitute a majority of the workforce because of an emphasis placed on employee ownership, corporate philanthropy, and products that meet the needs of a changing world, among other factors that help recruit millennials. As the workforce becomes increasingly millennial-based, HR departments will need to evolve their recruiting strategies to appeal to this group.
Novel approaches to employee training.
The modern work environment is changing faster than ever, and the pace of evolution does not show any signs of slowing. For that reason, employees may struggle to keep up with technological advances, so employee training will become more important in 2016 than ever before. With a diverse age range in work populations still the norm, HR departments may be able to take advantage of internal skills to provide training instead of relying on outside training firms.
For example, younger employees may have a strong command of social media, and they can therefore teach the older generations still in the workplace. In return, the older generations can pass down lessons usually learned after decades of professional experience. In this way, the traditional hierarchy of skill sharing may break down in favor of a system of collaboration and sharing. By harnessing peer knowledge, HR departments can ensure that information is delivered in an efficient and meaningful way that is mindful of company culture.
A turn toward the human side of business.
Historically, success in the business world has resulted from processes and structures that treated workers like machines, but this model no longer works. The future of success lies in embracing the human side of business and encouraging collaboration and cooperation, which fuels innovation. HR departments are increasingly embracing conversation, connection, and experimentation as key ingredients for success.
As a result, instead of becoming non-thinking cogs, employees are encouraged to question why things are done a certain way and push for change when they think it will be beneficial. Upheaval of existing processes is what makes companies stand out from the fold and become recognized as industry leaders. A human approach to business does not view departments as independent silos, but rather as connected groups that can support each other. The type of upheaval necessary comes only from radical collaboration between people of different backgrounds.
New takes on performance reviews.
Many major companies across the United States — like Deloitte, Accenture, and GE — are reimagining the ways in which they conduct performance reviews for their employees. These businesses are dropping the traditional performance ratings in favor of a more holistic approach. This is because a rating puts a specific value on an employee that may or may not accurately reflect the individual’s contribution to the organization.
After all, many old-style performance reviews are based on very narrow ideas of success, and they do not take into account the different processes that people have. Not everyone takes the same path to the same product, and new performance review strategies need to look at individuals through a more holistic lens in order to offer constructive feedback.