The HR Department in the Near Future: 4 Changes to Look Out For

With increased modern technology and rapid digitization, there is no doubt that HR department is already seeing changes in its modus operandi as compared to few decades ago. However, some more major changes are expected in the near future, according to experts. Various research studies and analysis have given some bold predictions on what will change in the Human Resource Department and why in the next few years.

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What changes in the HR department can you expect?

In-house HR team will downsize and outsourcing will increase

The trend is already seen in many companies. But very soon we will see that almost all organizations, big or small, will prefer to outsource the entire HR team. Managing human resources has become an important role in managing a business. But for most organizations, the various functions of the HR department in specialty areas like payroll, benefits, recruiting, compliance are too comprehensive as well as complex to maintain in-house, which often result in less than optimal results. In order to achieve the highest level of efficiency and workforce management, most organizations have started outsourcing HR. Benefits expected are cost savings, global talent, risk management, efficiency, employee development, reducing employment related expenses and so on.

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The growing Gig economy will impact the HR decisions

The gig economy is here, leading to a tremendous rise of a very diverse set of professionals. We have independent consultants, freelancers, temporary workers, part-time workers, contractual workers — you name it and you will find a human resource willing to take on a flexible work opportunity in every domain and sector. In the US, there has been a phenomenal growth in the gig economy with the rise of the Internet and mobile. The concept has dual-fold advantages: for employers (cost savings) and for employees (flexibility and freedom). Thus, the HR department of any organization must realize that the gig economy is here to stay, and this significant talent pool if hired can add significant value to the organization. But, yes, supporting the gig talent pool, will involve a huge change in HR, in terms of people, processes, technology, and most importantly, mindset. The key to success is that the HR department needs to find the right balance between the freelance workforce and the regular workforce. HR will increasingly have to tackle the challenge of managing a remote workforce.

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Relying heavily on technology, increasingly utilize analytics and big data

The HR department will play a critical role to augment its value to the enterprise. The future HR department will rely more and more on latest technology to expand its role. Tools like big data and analytics will be used more so as to make better strategic decisions and better understand employees. Internal data being easily available with latest software, HR can find trends and design the best possible strategy and employee environment, including talent recruiting and retention. There will be the use of more new metrics for new hires, tracking performances, make projections and analysis so as to drive positive changes in the company.

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Empowering, enabling, and creating experiences

No longer will HR be involved only in hiring and firing. Rather, its role has diversified over the years and will continue to do so more in the near future. HR will be responsible for a variety of employee activities, emphasizing and revolving around enabling, engaging, and empowering employees. HR representatives will act more as mentors and thought leaders, creating an employee experience, which complements with the organization’s culture and growth.

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