Is reinvention a channel that makes a meaningful impact? Most organizations consider this as a positive approach and redesign their market adoption strategy. With technologies transforming at a rapid pace, transformation across the enterprise is rampant.
While a few global organizations are striving to reshape their workplace, workforce and their strategies, the scenario is much similar in the HR industry as well. In any organization, HR leaders spend significant time in devising strategies for mapping and managing their global workforce. Meanwhile, organizations also invest equivalent time and effort in refurbishing their technology to thrive amidst disruption. While trying to establish an equilibrium between both, organizations encounter several trends in global human capital management.
In the HR arena, in addition to workforce management and strategy formulation, prevalent issues include expense management, adherence to governance and regulatory compliance, and usage of cognitive technologies. In order to resolve these issues, organizations are in a fix to redesign their solutions to leverage the benefits of these advancements.
Here is a rundown of the major trends in HCM that are making organizations HR-efficient.
1. The HR cloud:
While cloud computing’s growth spurt continues, the key growth driver across industries remains to be the need for digital transformation. A Future of Jobs survey by the World Economic Forum states that by 2022, 72% of companies globally would adopt cloud computing. With the world revolving around emerging technologies like AI, machine learning and RPA, most organizations have begun upgrading their technology ecosystem.
Today, organizations rather than staying complacent, are looking to implement new HR technology suites that are more engaging, data-driven and have a better user interface. What they essentially look for is a cloud-based footing which is well complemented by innovative AI-based tools. This continues to be an emerging technology and keeps changing time and again.
2. Managing Workforce:
This is certainly a recurring challenge in the HR arena. Managing workforce, especially for large organizations with a wide-spread employee base has been a hurdle to successful employee management; irrespective of the employee category being full-time, part-time, contract-based, freelancer or long-tail. One of the major struggles for organizations is to choose and implement a robust workforce management system that can be configured to suit their org-specific needs.
3. Compliance and Regulations:
Policies and laws pertaining to HR are dynamic in every country. Keeping up with the ever-changing regulatory requirements and ensuring global compliance prove to be another significant challenge which might result in huge penalties to organizations when left unaddressed. This does not stop with a mere penalty but may also risk their reputation, integrity and customer loyalty. Though there are various successful implementations of the HR and payroll system, some organizations still struggle to cater to the compliance need in countries that have stringent regulatory standards. As a result, they rely on ICP’s for supporting their compliance needs. Companies are probing for a comprehensive solution that complies with both local and global regulations.
4. Data and analytics:
Evidence-based HR decision-making practices can help enterprises evaluate any decision or process against data. Organizations look for the use of tools that provide a data-driven metric as output. Such a tool that can analyze data in detail, measure the performance of the organization and further evaluate the return on investment is the need of the hour. Understanding the impact on investment and gaining cognizance of organizational design, development, and performance will contribute to the overall growth of the organization. Have organizations come across such a system? The search for a completely data-driven system that is unfailing is still iffy.
5. Reaching the long-tail:
This era has seen organizations opening business units across the globe to cater to the need of the market that they operate in. While the bulk of an organization’s employee base remains in the home country and a few secondary countries, the rest of its workforce is sparsely distributed across its Managing HR operations for a handful of employees distributed across these long-tail regions is not as easy as it sounds; processing payroll, mapping their HR mandates and abiding by country-specific statutory regulations, remains to be a significant challenge.
While these are some of the prevalent trends in global HCM, there are many other trends that can be unearthed. Organizations are holistically working towards the betterment of their HR systems. With HR being the heart of any organization, they would want their HR system to act as a linchpin managing the entire spectrum of the hire-to-retire cycle of an employee. Howbeit, while few trends keep changing from time to time, some others remain persistent.
An expert opinion shall always open doors to newer perspectives. Interestingly, there is an on-demand webinar titled “Disruptive trends in global HCM” featuring Ben Eubanks, who talks about the prevalent HCM trends in the global arena and the challenges faced by global HR functions during global expansion. The webinar also throws light on how a high performing global HR function must be created.
Intriguing, right? Click here to take a look at the on-demand webinar!