Key HCM trends where technology will have the biggest impact on managing tomorrow’s workforce
This is the first time in history that the labor force has five generations working together, that is also increasingly multi-cultural. The challenges of managing such a diverse workforce working side by side cannot be overestimated. HR is managing this diversity transition and is also going through a digital transformation. HR itself, with its long history of being an administrative and service function, has to implement technology that creates administrative automation, improves employee engagement and scan produce the workforce analytics to simplify compliance and improve decision making.
HR leadership is now tasked with developing new strategies for adapting to this changing workforce and technology landscape. With the right strategy, HR can become an integral business partner to develop the infrastructure (systems and policies) and plan for optimum application of emerging technologies to position their organizations for success.
Three key trends where human capital management technology will play a critical role include:
– Recruiting, developing, and managing people
– Engaging and enabling employees
– Compliance
Recruiting, developing, and managing people
Talent is scarce and labor costs have been rising. With global expansion and Baby Boomers beginning to exit the workforce, HR leaders need new ways to attract top talent to their organizations, and facilitate knowledge transfer from one generation of leaders to another. HCM Technologies provide access to end-to-end recruitment management systems that automate everything, are integrated with other services (job boards, background checks, etc) and provide millennial applicants with a digital experience they expect from a modern employer.
HR can prepare by implementing enhanced hiring tools and sophisticated analytics that can help identify skills gaps and facilitate leadership development and incorporate knowledge transfer, mentoring and performance management as part of their recruiting and employee development strategy.
Engaging and enabling employees
By 2025, Millennials — those born between 1981 and 2000 — will account for 75 percent of the global workforce, up from about 34 percent today. Organizations must be ready to create a culture that resonates with this new generation of workers. This will require changes that include how to attract, compensate, develop, incentivize, and retain employees.
HCM technologies will play a critical role to centralize employee data and analytics to identify trends and provide insight that will help organizations as a whole adapt their engagement strategies to motivate and empower the next generation of workers.
Compliance
HR leaders must also become partners with their organization’s compliance, auditing, and legal functions to avoid serious liability. HR leaders must be fluent in compliance requirements both inside and outside of their departments. HCM solutions that unify all employee data will be integral to an effective compliance strategy.
Thoroughly documenting employee data in single database will help ensure all policies are being applied correctly and consistently, can provide alerts to lapses in a full range of compliance related areas (i.e. missed meal breaks, training and certification renewals, leave eligibility thresholds, etc). Technology will be the mechanism that allows HR to ensure policies are being applied correctly and consistently, and keep pace with changing regulations.