The Future of Human Resource Management (HRM)

The world no longer sees Human Resource Management (HRM) as a dull and stagnant section of a business. Today, HRM has completely transformed. From just recruitment and firing to the most influential functions of any given organisation, irrespective of its size and industry. An efficient HR department is valuable; it can improve employee experience and a company's future. 

The main reason for the shift in HRM functions is the availability of advanced technology solutions. Market conditions change rapidly, and it is only fitting for organisations to demand talent that will adapt to these changes.

Therefore, HRM has to undergo drastic changes and ascend to new relevant roles to help companies keep up with the trends. 

The following are some of the future trends expected to shape, improve, and simplify the functions of HR departments in various industries:

1. Embracing the Gig Economy

The gig economy is not a new subject for many businesses. In fact, the term' gig economy' came into existence in 2009. It describes the emerging part-time job opportunities and free-floating projects in the digital marketplace.

Studies show that companies will receive the wide range of skills they need to run processes smoothly if they transition from traditional employment to freelancing. Therefore, as HRM embraces the gig economy, more full-time jobs will shift to freelancing. It will benefit companies as they will only have to pay for labour once the job is done.

It is different from a traditional work environment, where employers must pay employees regardless of whether they complete the task. But perhaps the best thing about the gig economy is that it allows companies to hire top talent without worrying about geographical boundaries. It is predicted that HRM will embrace the gig economy and develop better policies to retain freelancers and improve production. 

2. Modification of Employee Benefits 

The hard work of employees is necessary for company growth and success. Therefore, companies must compensate employees with fair salaries and benefits to keep the company functioning well. In an office setting, perks such as free lunches, a fridge full of snacks, commuter benefits, and on-site daycare are essential. 

However, with the ongoing pandemic, many companies now operate with remote workers, which renders these benefits irrelevant. It leaves a gap for employers as employees now require benefits and perks tailored to this arrangement. As a result, HRM and employers are expected to provide relevant benefits such as healthcare, home office equipment, stable internet connections, wellness programs, flexible work environments, and mental health support. 

The best way to pick the right employee benefits is to ask them. Employees should share their requests within reasonable confines. As the manager, always try to match employee benefits to prevent accusations of favouritism. Meeting employee requests for benefits will make them happy and keep your company's employee retention levels high. 

3. Prioritisation of Diversity, Inclusion, and Equity 

Diversity, inclusion, and equity initiatives have emerged to address workplace vices such as discrimination, biases, unequal pay, and harassment. These phrases are taking over social media discussions. Companies must implement these initiatives to enhance the company's image and employee retention. Therefore, it is expected that HRM will prioritise these initiatives to keep up with the changing work models. It is the correct move for the company and has multiple benefits. Implementing diversity, inclusion, and equity initiatives in your organisation will help with hiring, employee engagement, company reputation, and productivity, as noted in a report. Therefore, HRM is expected to prioritise these initiatives during the hiring process to help create a safe and inclusive workplace for all employees. 

4. Adapt to a Hybrid Work Model 

The pandemic has encouraged many companies to adopt remote work to keep things moving. What began as a temporary transition is now a permanent solution for many companies, especially with the growing popularity of remote work. Companies accepting this new work model are already enjoying the benefits. It is because most employees love the flexibility of working from home. Thus, it has played a key role in increasing employee satisfaction and productivity. 

Recent surveys show that most employees want to continue working from home after the pandemic. Therefore, it only makes sense for HRM to develop a hybrid work model that allows employees to work partly from the office and from home. This means that, in the future, HRM will have to consider the best tools, resources, and solutions to make remote teams more efficient and productive. 

5. Upskilling and Reskilling 

The skills gap is a significant challenge facing HRM. New technology has disrupted many job positions—it misaligns employees' skills. This has created the need for upskilling and reskilling. Upskilling refers to learning an additional skill, while reskilling is learning new skills. HRM is responsible for upskilling and reskilling initiatives in most companies. So, they should set up upskilling and reskilling programs for all affected employees. The goal should be to prepare them for advanced or altered job roles. HRM should also identify worthy subjects to invest in for the best results. 

The biggest advantage of upskilling and reskilling is that it boosts the company's production and economy without hiring new talent. Upskilling and reskilling will also increase employee satisfaction and give the company an edge against its competitors. 

6. Reduce HR teams and Outsource HR 

New technology has automated HR functions. This has decreased the need for manual labour in HR departments. Many companies now only have one human resource manager responsible for all HR activities. With minimal labour, companies turn to HR software. HR software is responsible for organizing employee information, automating manual tasks, preparing payroll, and creating data-driven reports. It has, in turn, eliminated the need for paper records. 

So, the future will see companies looking for customised and flexible outsourced HR solutions. These solutions often charge by the hour, so they will save the company capital down the line. Additionally, they function anywhere at any time, eliminating downtime. 

Summing Up

Revolutionary HRM trends are expected to emerge with each passing year. Therefore, managers and employers should keep up with new information to stay ahead. Also, they should always analyze these trends and only implement the ones that suit their companies.