A set of practices related to recruiting, managing, developing, and optimizing the HR department of your organization is known as human capital management. Implementing a comprehensive HCM strategy is the best way for your organization to keep employees happy and make the business more successful. The best way to ensure that your HCM strategy is up-to-date and aligns with the needs of your organization is to stay current with human capital management trends.
Since the best HCM programs are strategy-driven and align with the goals of your organization, and a strategic HCM program gives the decision-makers of your company the flexibility they require to properly respond to business changes, staying up-to-date with current human capital management trends is critical. Let’s look at some current global human capital management trends you should follow to ensure that your HCM program is comprehensive and meets the needs of your organization.
Changing Demographics
Since 2015, Millennials have made up the largest share of the workforce and they seek different things from companies than Gen X did. Millennials seek a company that offers leading-edge tools and resources that are also compatible with mobile devices. Millennials are also driving the increased use of social tools. To keep up with this trend, it’s essential to offer employees mobile tools, social integrations, and clear communications of social media policies.
Increasing Globalization
Our workforce is becoming increasingly global. So much so that, according to ADP research, 40% of all employees work outside their organization’s home country. In order for your organization to properly keep up with this trend, it’s important to implement standardized global HCM processes to handle compensation planning, performance reviews, provide learning tools, and everywhere HR process in-between.
Targeted Recruitment
Thanks to social media and cognitive assessment, organizations today can use digital tools to target the most qualified candidates for employment. Many large companies are already using applicant screening systems that offer an AI feature to reduce the man hours they spend on recruitment processes. When your organization implements AI to help HR managers perform redundant, repetitive tasks, you free up their time to focus on higher value tasks that are more beneficial to the organization.
Improved Organizational Performance
People analytics, combined with predictive analytics, enables HR managers to identify, recruit, develop, and retain the best talent, faster and more effectively. Another human capital management trend we will see more of is leveraging analytics to gain insights, identify pain points, prioritize investments, and improve the performance of the organization. Analytics not only help organizations recruit better employees, fix organizational issues, and invest in the best solutions to help the company be more successful but can also be used to identify employees that are at risk of leaving the company, allowing you to convince them to stay, decreasing your turnover rate.
Increased Compliance
One of the biggest global human capital management trends you need to be aware of is the increased amount of compliance requirements around the world. As the business regulatory environment continues to expand, employment laws, labor practices, taxation, data privacy, and equal opportunity regulations are constantly changing and updating, and they all vary between countries and regions. It’s essential to stay up to date with compliance requirements to avoid costly, time-consuming fines and penalties.
Human Capital Planning
Perhaps the biggest human capital management trend we will see more companies adopt in the near future is an emphasis on the importance of human capital management. More companies are being to adopt a global view of what can impact their bottom line and are realizing that the lack of a proper human capital strategy in place can cause a major drain on costs due to process inefficiencies, high turnover rates, and ineffective recruitment efforts.
Human capital management trends are shifting all the time but they’re essential to keep up with to ensure that your human capital strategy is effective and helps your organization reach its goals. As the New Year steadily heads towards us, now is the best time to ensure that your human capital strategy is up-to-date, effective, and includes some of these important global human capital management trends.
