HR 2021: 10 noteworthy trends in employee management
2020 was a wild roller coaster for HR teams. From reimagining workflows in a virtual world to quickly adapting to tech tools like cloud-based HRMS, remote onboarding, and completely-automated payroll systems, efficient HR management became crucial to business continuity across industries during the global pandemic.
In 2021, as the world adjusts to new work policies & structure, HR will continue to play a pivotal role in steering business growth. With this in mind, here are 10 trends to watch out for in the industry:
Integrated Digital Tools for Remote Working
While a vaccine bodes well for offices to open up, many companies are considering flexible working options. An EY report found that 79% of employers are looking to improve digital tools for better remote operations. Integrated digital tools that make virtual collaborations efficient, payroll and leave management low-touch will take center stage in 2021.
Hybrid Work Patterns
During the pandemic, most businesses were forced to operate remotely. When this happened, the primary concern was productivity. However, surveys showed mixed results. In the US, employee efficiency dipped 14%, while it increased by 113% in France and 100% in Italy. A Stanford study also found that 55% of employees want to continue with a mix of home and office working even after the pandemic eases. HR professionals may find themselves charting hybrid work routines for more roles this year.
Sophisticated Human Resource Management Software
Organizations with advanced HRMS and cloud-based SaaS solutions handled the digital transition with relative ease. Going forward, companies will look for more sophisticated HRMS software features, such as automation and analytics, that will accelerate digital adoption.
Predictive Analytics
Frost and Sullivan estimate that the global big data market will expand 4.5 times its 2019 level to $68.09 billion by 2025. In a post-COVID world, advanced predictive analytics will guide larger HR decisions, from understanding employee upskilling needs to monitoring pain points in the workflow.
A Growing Gig Workforce
Gig, freelance and contract workers may find higher acceptance within organizational workflows as companies grapple with skill gaps and dwindling financial resources. Skilled freelancers and contractors can jump on for short-term projects without bleeding a company’s bottom line. HR managers will have to accommodate a floating workforce efficiently into the organization.
Tech Education
Growing digitization means organizations will have to equip all employees to handle these tools well. EY research found that 75% of employers are looking to invest in some form of remote technology training for employees to accelerate digital adoption and productivity.
AI/ML Adoption
Following quick digital adoption, artificial intelligence and machine learning tools that improve functional competencies of HR roles will become prominent in 2021. From automating routine tasks and personalizing employee journeys to improving hiring processes, AI and ML will find higher integration into HR functions.
New Engagement Strategies
Another challenge for HR will be to innovate new engagement strategies for employees. Fostering team-building and organizational culture for a remote, hybrid workforce will become a priority in 2021.
Wellness Platforms
Along with productivity, a major challenge for HR professionals in 2020 has been to ensure the physical and mental wellbeing of all employees working remotely. A Deloitte study has found that the mental health impact of COVID-19 will last for years. Organizations are likely to invest in wellness platforms that support employee welfare.
Outsourcing to Professionals
As HR processes become more complex and integral to corporate strategy, more organizations will consider outsourcing it to professionals. The Global Human Resource Outsourcing market is expected to grow at a CAGR of 4.9% to reach $45.8 billion by 2027. Outsourcing vital HR functions like payroll, compliance and goal alignment to a third party will allow companies to leverage external expertise to drive business success.
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