Over the past few years, businesses have been making drastic changes to stay afloat. 2020 is not going to be any different. But, it’s projected to be a year that focuses on the HR department. Renowned HR global industry analyst Josh Bersin presents the changes that the HR industry is facing and highlights the most important trends that are developing in 2020. Here are some of the top 10 HR trends in 2020 that you should be thinking about.
1. Quality of labor will be redefined
Quality of labor will now be defined by three things: employee engagement, skills, and getting the right people for the right job. Going forward, HR departments and functions will need to find employees that are the right fit for the job. Getting the right people in the right positions improves productivity, and reduces wastage of energy and resources.
This trend is backed by numbers considering that 41% of CEOs feel they need to reskill their workforce, while 83% of employees feel that they need to reskill in order to grow and adapt.
2. Reward systems should be built around the team
People should be rewarded for their skills and ability NOT positions. For too long, businesses have focused on rewarding employees based on position. As a result, employees that are productive and drivers of growth often go unnoticed.
With the changing business environment and with most businesses deciding to go Agile, there is a real opportunity for organizations to recognize and reward their most productive employees.
Being Agile means, the employees can move around more, work on different projects, and get more opportunities to exercise their strengths and work on their weaknesses.
3. Employee experience + Employee productivity are two sides of the same coin
Over the years, businesses have focused on the customer experience. But in 2020, employee experience is going to start receiving more attention. After all, a good employee experience translates to better productivity and hence better customer experience.
To improve employee experience, most businesses offer a variety of perks and benefits. Unknown to management is that most of these benefits and perks don’t boost morale or productivity. HR must go back to the basics and connect with the employees to determine what matters to them most. The engagement between HR and the workforce can help to design perks that the employees can appreciate and ones that can boost their morale and productivity.
4. What Matters More to Employees? Meaningful Work!
What is the #1 reason that inspires employees to be happy and work harder? It is not a long list of perks but rather meaningful work, the nature of their work is more important and valuable than the workplace culture or money.
This goes to show how much more work HR departments will have to do to place employees in positions where they feel that they are impacting and making a change. Not only do employees want jobs they love, but they also want jobs that make a difference. HR now has to find out what employees love doing, and find jobs and placements that line up with their goals and aspirations.
5. Trust is the new business currency
About 48% of the people trust the government, while 46% believe the system is failing. A whopping 75% have their trust in their employers. This makes businesses the most trusted entity.
With an uncertain future looming, trust is going to be a significant currency in business. A business that builds trust with its employees is more likely to keep its employees during rough times and even convince them to take pay cuts to keep the company afloat. This trust also comes with great responsibility – HR has to be the conscience of the organization creating an environment that lives up to the need for trust.
6. HR is being re-invented: You cannot run HR without data or technology
It’s not only the production lines that are benefiting from the technology boom. HR is also going through the same radical changes, and data and technology are becoming a crucial part of an excellent HR department.
The changing work environment requires cross-training, which is becoming an asset to helping achieve multi-faceted HR employees. The Agile approach that most companies are taking up requires HR teams that can leave their silos and come together to find solutions that work for the companies.
Going into 2020 and beyond, inter-connectivity and uptake of technology in the HR department is going to be vital.
7. Companies need to develop unique solutions tailored to their needs
It goes without mentioning that one-size-fits-all solutions only create bigger problems and clog the system.
The Agile approach provides the perfect opportunity for HR departments to co-design solutions, build prototypes, roll them out, understand how the prototypes work, then go back and improve them.
Finding bespoke solutions requires out of the box thinking and collaboration. The different arms of HR will have to come together for the greater good of the company.
8. Learning Market – From learning skills to building capabilities
The learning market has grown up a lot in the past years. A lot of learning has been focused on skills. Skills refer to “knowledge on a topic”, while capabilities address the “ability to perform in a job”.
Skills alone, such as technical skills, are not enough. Technical skills plus context skills, perspective, and pattern matching are more important as they provide that insight of knowing how to make the best use of these skills at the right time.
Learning has to move towards the creation of Academies which move beyond expertise: academies are where you go to advance capabilities.
9. Improving job applicant experience
Recruiting new hires in your organization should be a short and effective process. Otherwise, you could miss out on incredible talent if the process is long and tedious.
Streamlining the application process for both the HR team and the applicants will help land the best people for the job.
10. Flexible workspaces
Flexible workspaces are picking up steam in organizations. Allowing your workers to come up with a work environment they are comfortable in can improve productivity. In 2020, it’s likely the modern office will evolve even more and become a function that can be carried out from just about anywhere.
2020 is going to be an exciting year for the HR department. The rules of engagement and operations are going to be re-written, with the HR department acting as a bridge between the workers and the management.
You can find the full presentation video here.